A downtown Springfield financial firm posted a roughly $1.28 million net loss for the first quarter this year as the firm continues to work to raise capital for its operations.
Financial documents filed with the OTC Markets Group shows EF Hutton recorded a net loss of $1.28 million in the first quarter this year, against about $67,000 in revenue. The company is a financial services firm based in downtown Springfield. Documents filed with the OTC show the company had about $1.1 million on hand at the end of the first quarter in March.
The company describes itself as a digital financial services business “providing across a range of financial products and services, including, but not limited to insurance, tax, real estate and financial planning,” according to documents filed with the OTC. In February this year, the company also announced plans to offer a mobile platform that includes talk, text and data on any mobile device.
Separate documents filed with the Securities and Exchange Commission show the company is seeking to raise $25 million through a sale of shares, according to a Form D filed on May 31. Form D is a brief notice that includes basic information about the company and the offering, such as the names and addresses of the company’s executive officers, the size of the offering and the date of first sale.
Chris Daniels, CEO of EF Hutton America, declined to comment on the documents filed with the SEC.
“We continue to grow our business and develop new products and services,” Daniels said of the first quarter results. That includes the company’s mobile platform. Daniels initially unveiled plans to introduce the mobile platform in February this year.
“We are on the cusp of commercializing that and we already have received substantial interest in that product,” he said. “We’re very pleased with the progress that we’re making in a very short time to accomplish very significant things.”
Along with the latest effort to raise capital, EF Hutton America 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.
And in May, Daniels said he purchased 2 million shares of the company for 50 cents per share, a move that would provide the company with another $1 million in financing.
The OTC Markets Group had previously downgraded EF Hutton’s reporting status after the firm became more than six months behind in its financial filings. At the time, Daniels said the disclosures were voluntary, and the company was instead focusing its resources on promoting its products and services. The firm’s status on the OTC site has since been restored.