New Scaratings

CARLSBAD, Calif., Nov. 13, 2020 /PRNewswire/ -- NTN Buzztime, Inc. (NYSE American: NTN), reported financial results for the third quarter ended September 30, 2020.

"Buzztime is working diligently toward closing two transformative transactions," said Allen Wolff, CEO of NTN Buzztime. "Under the terms of the previously announced asset purchase agreement with eGames.com Holdings, LLC, we plan to sell all our assets related to our game network to eGames.com. Our goal is to preserve our compelling in-venue experience that engages patrons for Buzztime customer venues and safeguard our large and loyal player and customer base while monetizing our assets. The asset sale will strengthening our balance sheet and improve our financial position for the previously announced proposed merger with Brooklyn Immunotherapeutics LLC, which is advancing clinical development of cytokine-based therapy to enable the immune system to attack certain types of cancer cells. We believe that the proposed merger will benefit both investors of Brooklyn and stockholders of NTN Buzztime. We expect both transactions to close simultaneously in early 2021, subject to Buzztime's stockholders approving both proposed transactions, the beneficial holders of Brooklyn's Class A membership units approving the proposed merger, and the satisfaction of other customary closing conditions."

Financial Results
For the third quarter 2020, total revenues were $1.5 million, up $0.7 million (or 96%) sequentially as compared to the second quarter of 2020, but down from $4.6 million in the third quarter of 2019. The decrease reflects reduced site count, primarily as a result of the termination of our relationships with Buffalo Wild Wings corporate-owned restaurants and its franchisees in November 2019, and the impact of the COVID-19 pandemic on the company's business, as a substantial number of the bars and restaurants that subscribe to the network suspended their subscriptions for at least a portion of the current year period. Third quarter 2020 operating expense decreased to $2.9 million, from $4.9 million in the third quarter of 2019, reflecting corporate restructuring and cost reductions. Third quarter 2020 net loss attributable to common shareholders was $1.5 million, or $0.50 per share, compared to $351,000, or $0.12 per share, in the prior year quarter.

Liquidity
Cash, cash equivalents and unrestricted cash was $1.7 million at September 30, 2020, compared to $3.2 million at December 31, 2019. In April 2020, the company received $1.6 million under the Paycheck Protection Program of the CARES Act. In November 2020, the Small Business Administration approved the company's application to forgive $1.1 million of such loan, leaving a note balance of $0.5 million. Also, in September 2020, the company received a bridge loan of $1.0 million from an affiliate of eGames.com in connection with entering into the asset purchase agreement with eGames.com. Outstanding amounts under the bridge loan, if the asset sale closes, will be applied to the purchase price of the asset sale upon closing. At September 30, 2020, the principal balance of the term loan with Avidbank was $725,000, and the company had negative working capital of $137,000. For additional information regarding the company's liquidity and capital resources, please see the quarterly report on Form 10-Q expected to be filed with the SEC later today.

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So the 2 mergers to save Buzztime are on schedule, that's good. The 3Q revenue of only $1.5 million is down more than I thought, that's bad. I was hoping for more of a bounce back from the bar shutdowns of March/April. Let's hope the coming winter bar shutdowns are not as painful. Just need to get through to the early 2021 mergers without any major hiccups.

Not mentioned above was the fact there has been new sales force added with about 50 or so new locations added all over the country in the last 2 months. Many appear to be the Buzztime streaming installs for $50 a week. No Buzztime tablets, "bring your own BT phone/Ipad app". The full elite package with 10 tablets is still listed at $129 per week.

I still believe eGames.com will keep things mostly as is in the bars. While improving location sales and add sales. Hopefully adding games to the mix and getting SD/SL in the app. Other app improvements are in the works as well.

Buzztime stock (NTN) is at $1.92 up 32% over the last 6 months. After the merger with Brooklyn Immuno I expect the new stock to go to almost $40 so $1.92 is cheap I'd say. (depending on merger valuations)

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BUD - Stained Glass Pub Silver Spring MD
OC BUD - Grotto Pizza DE near Ocean City MD

LET'S GO ....Caps and Os!!!!

Thanks for that. I never knew how much it cost to operate Buzztime. I hope many smaller venues who got rid of it might be willing to spring for the "bring your own device" version.

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Malort. It's not just for breakfast anymore.

Keep in mind those prices are for new installs.

Long time customers especially bars still on the blue boxes are paying lower amounts on contracts rolled over and over from years ago. I’d say around $100 a week.

I like to ask at bars I visit what they pay. I get all kinds of different numbers, it all depends on what the bars have negotiated and number of tablets/boxes. I’m sure a place like Teasers is paying a number from decades ago. The blue box bars are paying the least after the streaming bring your phn/iPad/tablet new bars. Tablets are expensive and pay the most. The quick way to get a price reduction is to say you’re going to cancel.

For new installs I see the $50 a week package being the only choice bars will make in these financially tough times.

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BUD - Stained Glass Pub Silver Spring MD
OC BUD - Grotto Pizza DE near Ocean City MD

LET'S GO ....Caps and Os!!!!

Hell, $50 a week, I'd consider footing the bill for my local establishment! I could find a corner or two to cut from my expenses.

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Malort. It's not just for breakfast anymore.

It's got to be tough for locations subject to lockdowns to justify paying anything to anyone when they are laying off employees and limited in how many customers they can serve.

Fortunately Florida has no restrictions. Angry Pepper where I play is essentially an outdoor bar with a roof over it. Some of the regulars are in self-imposed isolation, but that is their choice.