SpiralFrog: Q3 Losses of $3.4 Million; Looking to Raise Up to $25 Million
Ad-supported music startup SpiralFrog isn’t a public company, but it files financial data with the SEC per an agreement with investors. Its latest 10-QSB filing shows the company lost $3.4 million in Q3 on a revenue trickle of $20,400. The balance sheet reveals that the company has just $2.3 million in cash right now, and a total stockholder’s deficit of $6.2 million. Among its liabilities are $10.8 million in senior notes and $2.4 million in accrued minimum royalty payments. Obviously the company is in need of more cash, and the filing does say it plans to raise up to $25 million at some point in the next 12 months.
As for how the company plans to get some momentum: “Execute marketing campaign in the United States aimed at 13-34 year olds, through one or more of the following approaches: hire gorilla (sic) marketing firms for unconventional promotions; consumer targeted press releases; advertising on some of the youth community sites; or hiring ‘bloggers’ to attract attention to us on the internet.” You be the judge of this.
Related StoriesPosted In: Entertainment, Music, Money, Earnings, spiralfrog
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Comments (8)
Nov 20, 2007 12:36 PM
“Gorilla marketing”—hilarious. The term is “guerrilla marketing.” Sounds like somebody was trying to use a buzzword.
Nov 20, 2007 12:37 PM
I suppose “gorilla marketing firms” target primates?
Nov 20, 2007 5:34 PM
The filing claims they are going to reach 3 million unique users a month in the next 12 months. Currently according to Comscore they have less than 96,000.
Clearly the gorilla’s are running the show
Nov 20, 2007 11:08 PM
I love the gorilla. as in MacGilla…
sorry, I couldn’t help it.
Nov 20, 2007 11:13 PM
it’s been 5 minutes and i am STILL laughing…
Nov 23, 2007 6:33 PM
I read somewhere the chairman gets paid $30K a month. That is more than they bring in, in advertising. What a strange world we live in!!!!!
Dec 13, 2007 12:27 PM
I have to respectfully challenge this guy Monty. CommScore does not report companies until they reach over a million uniques. As I understand things, what Monty has written is a contradiction. How could he possibly be quoting CommScore for this web site, when it is too early stage for CommScore to report, at least this month.
Is Monty making this up? Sound like he is.
Dec 14, 2007 3:43 PM
Monty isn’t making it up. You can also check compete.com the numbers are not too different. Monty is very wise and should not be underestimated.