On Tuesday, Shares of Net Element, Inc. (NASDAQ:NETE), lost -40.41% to $0.29.
Net Element presented historical financial results for PayOnline for periods preceding to our ownership.
PayOnline acquisition creates a unique platform for further consolidation and positions the Company to lead in the fragmented and growing emerging market payments industry.
Acquisition of PayOnline
As formerly stated, on May 20, 2015, Net Element reached a definitive agreement with PayOnline following which Net Element is to acquire PayOnline for up to $8.4 million in total consideration. The closing payment is $3.6 million cash, which has been paid into escrow and $3.6 million in Net Element stock. There is the potential for additional consideration of up to $1.282 million in cash and stock from earn-out incentives based on performance.
Net Element assumed operational and financial control of PayOnline and its auxiliaries as of May 20, 2015, and will consolidate PayOnline results in the second quarter from May 20, 2015 to June 30, 2015.
PayOnline processes online payments for over 10 million active consumers and thousands of merchants in the Russian Federation, Europe and Asia.
Net Element plans to integrate PayOnline’s payments platform into its existing global payments-as-a-service network to expand its transaction processing offerings.
Upon integration, Net Element global merchants will have access to a broad array of value-added services counting card2card transfer, payment split and the highest level of data security (Validated Level 1 PCI DSS Compliance).
Net Element, Inc., a global payments-as-a-service, operates as a technology provider with an integrated mobile and transactional services platform serving emerging market clients.
Finally, Hercules Offshore, Inc. (NASDAQ:HERO), ended its last trade with -12.82% loss, and closed at $0.07, hitting its lowest level.
On July 23, stated a net loss of $88.3 million, or $0.55 per diluted share, on revenue of $79.2 million for the second quarter 2015, contrast to net income of $6.6 million, or $0.04 per diluted share, on revenue of $243.0 million for the second quarter 2014. As outlined in the Reconciliation of GAAP to Non-GAAP Financial Measures, second quarter 2015 results comprise a pre-tax adjustment of $13.4 million related to retroactive dayrate concessions on the Hercules 261, 262 and 266, $10.6 million of costs related to financing and restructuring activities, a $3.6 million net loss related to asset sales, counting the sale of six cold stacked jackups and a $1.9 million charge related to the termination of our Credit Facility. These items resulted in a second quarter after-tax adjustment of $28.8 million, or $0.18 per diluted share. Second quarter 2014 results comprised of an after-tax gain of $17.9 million related to the sale of three cold stacked jackups in addition to a $4.8 million charge related to the early retirement of debt and issuance costs for a total net adjustment of $13.1 million, or $0.08 per diluted share.
Domestic Offshore
Revenue generated from Domestic Offshore for the second quarter 2015 reduced 71% to $40.6 million from $140.4 million in the second quarter 2014, driven by lower utilization and dayrates on a reduced marketed rig fleet. Operating days during the second quarter 2015 declined to 439 days with utilization of 53.6% on a marketed fleet of 9 rigs, contrast to 1,297 days on 18 marketed rigs at 79.2% utilization during the second quarter 2014. Average revenue per rig per day reduced to $92,538 in the second quarter 2015 from $108,237 in the comparable 2014 period. Operating expenses of $26.4 million in the second quarter 2015 comprise a net loss of $3.4 million related to asset sales, counting the Hercules 85, 153, 203, 206, 207 and 211, contrast to expenses of $63.5 million in the second quarter 2014, which comprises a gain of $7.4 million from the sale of the Hercules 250 and 2002. The noteworthy reduction in operating expenses in the current quarter, after adjusting for asset sales, was largely attributable to the reduced number of fully crewed rigs in operation. Domestic Offshore stated operating income of $1.4 million in the second quarter 2015, contrast to $57.3 million in the second quarter 2014, counting the aforementioned asset sale gains and losses.
Hercules Offshore, Inc., together with its auxiliaries, provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry worldwide. The company operates through Domestic Offshore, International Offshore, and International Liftboats segments.
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