Executive Summary

Bright Mountain Media did not release Q2 2021 financial results or hold an earnings call; the company transitioned to OTC Pink due to a delayed FY2020 audit and focused on cost reductions to accelerate breakeven .
Management guided that FY2020 revenue was approximately $16 million and reiterated a plan to relist to OTCQB after becoming current with filings, targeting late August 2021 .
Preliminary Q4 2020 revenue was at least $6.6 million (+112% YoY), reflecting Wild Sky Media integration; no Q1 or Q2 2021 results were furnished, limiting estimate comparisons and trend analysis .
Governance and financing actions during Q2 included auditor changes and credit facility amendments adding short-term term loans and equity issuance to the lender, highlighting a focus on liquidity and capital structure .

What Went Well and What Went Wrong

What Went Well

“We are currently undertaking an aggressive cost reduction initiative to right-size our corporate infrastructure and further expedite our path to cash flow breakeven,” signaling disciplined OpEx control and a breakeven focus .
Management aimed to maintain the revenue base (~$16 million in FY2020) while reducing operating expenses, suggesting a path to improved operating leverage once filings normalize .
Preliminary Q4 2020 revenue of at least $6.6 million (+112% YoY) demonstrated successful integration of Wild Sky Media and platform growth in digital media and advertising services .

What Went Wrong

Inability to file FY2020 10-K timely led to transition from OTCQB to OTC Pink on July 1, 2021, impacting market visibility and investor access .
NT 10-Q for Q1 2021 indicated delays in preparing financial information and internal controls work; no Q1 2021 or Q2 2021 results were furnished .
Auditor dismissal and engagement of a new auditor, with prior identified material weaknesses in internal controls and non-reliance disclosures for earlier periods, underscored governance and reporting challenges .

Financial Results

Note: The company did not furnish Q1 2021 or Q2 2021 financials; trend and estimate comparisons are constrained. Preliminary Q4 2020 revenue was disclosed in an 8-K Exhibit 99.1 press release.

Metric	Q4 2020	Q1 2021	Q2 2021
Revenue ($USD Millions)	$6.6	N/A – no filing	N/A – no filing
Diluted EPS ($USD)	N/A – not disclosed	N/A – no filing	N/A – no filing
Gross Profit ($USD)	N/A – not disclosed	N/A – no filing	N/A – no filing
EBITDA ($USD)	N/A – not disclosed	N/A – no filing	N/A – no filing
Gross Margin (%)	N/A – not disclosed	N/A – no filing	N/A – no filing
EBITDA Margin (%)	N/A – not disclosed	N/A – no filing	N/A – no filing

Segment breakdown and KPIs were not provided for Q2 2021; Q4 2020 disclosure focused on total revenue without segment detail .

Guidance Changes

No formal guidance was issued for Q2 2021. Corporate communications focused on audit timing, relisting plans, and cost actions.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2021/Q2 2021	None disclosed	None disclosed	Maintained – no formal guidance
Margins	FY2021/Q2 2021	None disclosed	None disclosed	Maintained – no formal guidance
OpEx	FY2021	Targeted reductions (qualitative)	Aggressive cost reduction initiative	Emphasized reductions
Tax Rate	FY2021	None disclosed	None disclosed	Maintained – no formal guidance
Dividends	FY2021	None	None	Maintained – none

Earnings Call Themes & Trends

No Q2 2021 earnings call or transcript was furnished.

Topic	Previous Mentions (Q-2: Q4 2020)	Previous Mentions (Q-1: Q1 2021)	Current Period (Q2 2021)	Trend
Audit/Filings Status	Not addressed in revenue-only press release	NT 10-Q filed (late Q1 2021 filing)	OTC Pink transition due to 10-K delay; plan to relist OTCQB after becoming current	Improving once filings current
Cost Reduction	Not discussed	Not discussed	“Aggressive cost reduction initiative” to reach breakeven	Increasing focus
M&A/Integration	Wild Sky Media integration cited as revenue driver	Not discussed	No new Q2 disclosure; continued platform narrative	Stable narrative
Liquidity/Financing	Not discussed	Not discussed	Credit amendments add term loans; equity issued to lender	Active balance sheet management
Internal Controls	Not discussed	Internal controls work referenced in NT 10-Q	Prior material weaknesses noted in auditor change 8-K	Remediation needed

Management Commentary

“We are currently undertaking an aggressive cost reduction initiative to right-size our corporate infrastructure and further expedite our path to cash flow breakeven.”
“We believe that we can significantly reduce operating expenses while maintaining our revenue base – which stood at approximately $16 million in FY2020 – and emerge in a better financial position to enable our planned future transition to profitability.”
“The expected revenue growth in the fourth quarter of 2020 demonstrates the successful integration of Wild Sky Media and the success of our leading end-to-end digital media and advertising services platform.”

Q&A Highlights

No Q2 2021 earnings call or Q&A was furnished; therefore, no analyst questions or clarifications were available .

Estimates Context

The company did not furnish Q2 2021 results and did not reference analyst consensus in its disclosures; as such, comparisons to Wall Street consensus are not available for the period .
S&P Global consensus estimates were not observed in company materials for Q2 2021, and no company-provided estimate comparisons were disclosed .

Key Takeaways for Investors

Absence of Q2 2021 reported results and call limits near-term financial visibility; focus shifts to filing normalization and relisting to OTCQB to restore investor access and coverage .
Management executed cost actions and targeted breakeven, a prudent move given filing delays; monitor subsequent quarters for operating leverage once disclosures resume .
Liquidity and capital structure actions (term loan amendments and equity issuance to lender) suggest near-term cash needs and lender support; track covenant terms and amortization schedules through year-end 2021 .
Internal control remediation and auditor transition are key gating factors to consistent reporting; watch for resolution of material weaknesses and timely filings in subsequent periods .
Preliminary Q4 2020 revenue strength (+112% YoY to at least $6.6 million) supports underlying demand and integration benefits; however, lack of Q1/Q2 2021 data caps trend analysis until filings catch up .
Trading liquidity and valuation may be impacted by OTC Pink status; relisting and current reporting could be catalysts for improved sentiment and potential re-rating .
Near-term strategy appears defensive (cost control, filing catch-up, liquidity management) with medium-term aim to refocus on growth in digital publishing and adtech once compliance normalizes .

Citations:

Bright Mountain Media, Inc. (BMTM)·Q2 2021 Earnings Summary