Current pink sheet Beta Music Group (OTCPK:BEMG) has come out over the last week saying it is going to clean up its fundamentals and become more transparent.
The Sunrise, Florida-based company underwent a material change in March with the acquisition of Get Credit Healthy, which now is Beta's operating subsidiary. Get Credit Healthy utilizes proprietary software to integrate with lenders to make it easier to recapture leads. Thanks to the new subsidiary, Beta generated record revenue in the quarter ended June 30, 2018, as disclosed Wednesday morning.
Last Tuesday, management proclaimed that it is exploring ways to reduce its exorbitant number of outstanding shares by at least 75%.
CEO Elizabeth Karwowski assured investors that the reduction would not happen via a reverse split. After shelling out 850 million shares to buy Get Credit Healthy, the company has 1.06 billion shares outstanding.
Karwowski wants to see that total down to under 300 million.
Today, the company said that it intends to hire an independent CPA to audit its financial statements to meet GAAP (generally accepted accounting principles) of the Securities and Exchange Commission.
Further, the plan is to file a Form S-1 with the SEC during the upcoming fourth quarter to become a fully reporting company, as well as graduate to the OTCQB marketplace of OTC Markets. These moves are expected to provide additional transparency and lend credibility to Beta Music Group to catch the eyes of a larger pool of investors.
Unaudited financials from the latest quarter filed today showed revenue of $320,771. That was up from $100 a year earlier, when the company essentially had no operations. It was also up from $298,316 during Q1, a 7.5% improvement quarter-over-quarter.
Net loss for the quarter was $58,385, reversing from a net profit of $19,847 during the first quarter, meaning that 1H net loss came in at $38,538. Documents filed with OTC Markets show that Get Credit Healthy posted net income of $46,831.54 during the first half of 2018.
The difference resulting in the corporate net loss was due to public company expense and overhead not attributed to the operations of Get Credit Healthy.
The company ended the quarter with $214,383 in cash.
Traders have initially responded to the news, sending shares up 14.7% to 4.77 cents minutes after Wednesday's opening bell.
