A Springfield financial firm reported a net loss of about $3.6 million for the first nine months this year, as company officials said their focus has been on developing new products.
HUTN, INC. whose subsidiaries include EF Hutton Inc. and Megga Inc., also reported approximately $269,000 in revenue for a nine-month period that ended on Sept. 30 this year, according to documents filed with the OTC Markets Group. Company officials said the losses reflected the firm’s investments in its first year as it has begun to ramp up its operations. The firm is a financial services company that opened in downtown Springfield last fall in the former Credit Life Building.
The firm’s latest financial statements filed with the OTC show the company had about $900,000 cash on hand at the end of the quarter ending Sept. 30.
“The money that we have spent year-to-date reflects our investments in talent, technology and the infrastructure necessary to deliver the products and services of EF Hutton Inc. and Megga, Inc., the subsidiaries of HUTN,” said Jeff Kursman, a spokesman for the company. “Rather than being perceived as a loss, which is a financial term, that money that we’ve spent has truly been an investment in our business, an investment in our future consumers and an investment in the community of Springfield.”
The firm’s total assets are listed at about $21.3 million. The company took over 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. Company officials said in the fall they plan to hire close to 40 new workers as part of a plan to roughly double the workforce by early next year.
The company recently announced the launch of Megga, Inc. a new social media platform company officials said will also allow users to save money for retirement. Megga Inc. will generate advertising revenue and deposit a portion into a trust overseen by independent third-party trustees, based on the number of points users accrue. Meggalife users will be able to redeem those points at the age of 68 to provide additional funds for their retirement, according to a news release.
“It’s a very strategic investment in building a product that we are proud to put the 110-year-legacy of EF Hutton’s name on,” Kursman said.
The company’s most recent financial statements also describe several subsidiaries under HUTN, Inc.
Those include HUTN Group, Inc. an operating holding company that owns several subsidiaries and provides administrative services to those subsidiaries. They also list EF Hutton Investments, LLC, which is described as an investment advisor offering traditional investment accounts as well as specialized accounts including 529 plans, individual retirement accounts and 401-k accounts.
Along with Megga, Inc., the documents also list Vyral Media, which “is to provide digital media products and services commencing in the fourth quarter of 2017.”
An additional subsidiary is listed as Vibrant Mobile, Inc., which will “provide mobile communications services commencing in the fourth quarter of 2017. Vibrant has developed a set of proprietary mobile plan features for subscribers that it bundles together with communication services of its telecommunications business partners.”