A Springfield financial start-up reported a net loss of $2.17 million for the first six months of this year as the firm continues to try to gain a foothold in a competitive industry.
Financial documents filed with the OTC Markets Group showed EF Hutton also reported $177,930 in revenue.
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The company is a financial services firm based in downtown Springfield. On its website, the company says it provides investment management services through a web-based application to clients and offers investment management services by providing clients continuous and ongoing supervision over managed accounts.
Documents filed with the OTC show the company had about $238,000 cash on hand at the end of the quarter ending June 30.
Company leaders declined to comment to the Springfield News-Sun. Documents filed with the OTC show the company also plans to offer other products and services through various subsidiaries. The documents list EF Hutton Mobile Inc., a subsidiary that’s developing mobile services, as well as EF Hutton Media Group Inc., which develops media-related products and services.
EF Hutton officials have previously discussed plans to offer a mobile phone service that includes talk, text and data on mobile devices, and allow customers to make trades with the company through the phone.
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The company has bought two downtown buildings and previously said it plans to invest $22 million and add up to 400 new jobs in downtown Springfield over five years.
It has faced challenges in its first year, including losing two months of business last year after it claimed EF Hutton America was the victim of an internet marketing scam. The firm also faces a federal lawsuit filed by a man who claims he’s owed back pay for his work as an executive, allegations CEO Chris Daniels has denied.
Financial documents show as of June 30, it had about 56.1 million ordinary shares outstanding. In May Daniels said he purchased 2 million shares for 50 cents per share, a move that would provide the company with $1 million in financing.
Documents filed with the OTC also show the business filed a Form D in May with the Securities and Exchange Commission to raise about $25 million through a share of sales in a private offering.
It also borrowed $3 million earlier this year using the company’s downtown office tower as collateral, according to documents filed with the Clark County Recorder’s Office. The Springfield News-Sun is a tenant in the building.
SpringForward, a Springfield nonprofit dedicated to revitalizing downtown Springfield, also previously wrote a seven-year, long-term private note to the company. Financial documents filed with the OTC list the principal of that loan at $7.5 million.
Financial documents also list a $600,000 loan that matures in July next year.
Most recently, the OTC documents show in August, the firm issued a promissory note for $2.2 million for a term of six months. That loan can be extended for up to two additional six-month terms for a maximum maturity date of Feb. 7, 2019.
By the numbers:
$177,930 — Revenue through June 30
$2.17M — Estimated loss from operations
56.1M — Ordinary shares outstanding as of June 30
Source: EF Hutton America Inc.
Staying with the story
The Springfield News-Sun has provided extensive coverage of EF Hutton America, including stories about its move to Springfield, the firm’s financial statements and its past history.