NEW YORK AND SECOND LIFE — November 7, 2014 — STUDIO 777™ (CAPEX: FUN), the #1 Skill Gaming Nightclub, Mall and Resort in the Second Life® virtual world since 2009, today announced results for October 2014 with monthly revenue of L$17,950,627 and Shareholder dividends of L$301,862, now bringing total Dividends to over L$2 Million since inception. FUN had strong and steady revenue even as changes resulting from Linden Lab’s new Skill Gaming Policy had an effect on the overall sector.
Linden Lab®, a division of Linden Research, Inc., approved STUDIO 777 as an official Second Life Skill Gaming Program Operator (“SLSGO”) and Sol Hermosa as an official Skill Gaming Region (“SGR”) on October 29, 2014, one of less than 50 approved. http://wiki.secondlife.com/wiki/Linden_Lab_Official:Second_Life_Skill_Gaming_Approved_Participants
FUN worked in cooperation with Skill Game Creators Raziel Foggarty and Aargle Zymurgy to submit Reasoned Legal Opinions (“RLOs”) for their most popular Skill Games. Mr. Foggarty’s hugely popular game, 4PLAY, was approved in record time and with no revisions or changes thanks to the excellent work by Mr. Foggarty and everyone on the team.
“Another epic month! October was filled with great progress and we’re pumped with the results,” said Luke Slingshot, CEO of FUN. “We’re proud that we’ve paid our Shareholders over L$2 Million in Dividends in just a few months, been approved to be a Skill Gaming Operator, saw increased play, traffic and other metrics, and hired staff and builders.
“Soon you’ll see our new custom designed and built Dome with a new Landing Point, our new Homestead featuring JOBSTAR, ADS-O-MATIC and an all-new Mall and our second Skill Gaming Region. We’re grateful to Linden Lab for continuing help and support, our attorney Stevan Lieberman, and our Players, Team, Shareholders, Partners and Friends. We’re planning big FUN for the holidays!”
On October 27, 2014, FUN announced its alliance with Pi Games to become one of only ten approved Skill Game Operators authorized to host the new Pi Games Tournament System featuring REEL WILD, ENCHANTED, DEVIL HUNT and more of Second Life’s most popular Skill Games.
Pi Games CEO FoxyFurman Kumaki commented, “STUDIO 777 has been a great partner since nearly the inception of Pi Games in Second Life, and as we were developing the Pi Games Tournament System, Luke and his team were enthusiastic and professional about supporting and joining the project. We’re delighted to have STUDIO 777 join us as we develop new games and continue offering some of the most successful games on the grid.”
In anticipation of these new games, and looking ahead to continuing approvals by Linden Lab, FUN commissioned the construction of a new, much larger dome on its primary Skill Gaming Sim, Sol Hermosa. Additionally, FUN obtained a new Homestead Sim and began the relocation of its Designer Mall, JOBSTAR Employment Agency and ADS-O-MATIC Marketing Service. FUN’s arrangement with Pi Games calls for a dedicated Sim which is in progress.
Strong revenues despite large expenses to meet the requirements for growth and Skill Gaming requirements resulted in Shareholder dividends of L$301,862. STUDIO 777 supports CapEx and continues to be confident CapEx will successfully become a licensed Skill Game Creator and Operator. Dividends will be held in reserve in accordance with CapEx policy.
L$2,120,000 of IPO funds were released from Restricted Assets for costs related to FUN’s application to become a Licensed Skill Game Operator and the costs related to new builds and Homestead expansion. Growth and Skill Gaming investments bring new areas of profitability. L$1,590,600 remains in Restricted Assets, part of the L$42,605,048 total Shareholder Equity.
KariAnne Starsmith, FUN President, explained, “Revenue in October was extremely strong. And November began on a great note! Circumstances beyond our control — Approvals from Linden Lab, Skill Gaming Region requirements, necessary expansion, Skill Game updates and the like increased costs, but many of these investments are non recurring, and solidified STUDIO 777’s leadership role in the sector.”
STUDIO 777 (FUN) October 2014 Financial Statement
Builds and Functional Objects L$550,000
Unique, Custom Made and Proprietary Objects L$250,000
Games, Contest Boards and Equipment L$30,000,000
Scripted objects L$250,000
Intellectual Property L$3,000,000
Transferable Objects L$100,000
Ads-O-Matic 50% Ownership L$500,000
SHAREHOLDERS EQUITY L$42,605,048
STARTING L$ BALANCE L$2,735,079
FROM RESTRICTED L$2,120,000
TOTAL REVENUE L$17,950,627
Skill Gaming Legal Fees L$1,800,000
Events and Comps L$654,412
Dome and Homestead Expansion 320,000
Games, contests, incentives L$13,323,674
Percentage to Dividend: 70%
Dividends to Shareholders L$301,862
Retained Earnings L$129,369
ENDING BALANCE L$2,864,448
STARTING RESTRICTED BALANCE L$3,710,600 IPO Proceeds (1)
MOVED TO OPERATIONS L$2,120,000
ENDING RESTRICTED BALANCE L$1,590,600
(1) STUDIO 777’s IPO took place in June, 2014. Funds raised are to be used as discussed in our IPO Application (seehttp://slcapex.com/forums/topic/FUN/9405). For more information about Restricted Assets, please see http://wiki.fool.com/Restricted_vs._Unrestricted_Net_Assets
Number of Shares Outstanding 20,000,000
Net Value Per Share L$2.13
Earnings Per Share L$0.02
Dividends Per Share L$0.0151
Dividends Paid To Date L$2,017,047
ABOUT STUDIO 777: Since 2009, STUDIO 777™, an Official Skill Gaming Operator, has welcomed over 1 million Guest visits with over 50 million minutes spent at 777 in the Second Life virtual world. With 30,000 Group Members, 1,400 Live Events with international DJs & L$ prizes, 50 Mall Stores, and L$250 Million Linden won by Players and Guests, STUDIO 777 has gained a reputation for trust, integrity and fun. 777 has been ranked third highest in traffic in Second Life and honored to be named Second Life’s #1 Skill Gaming Nightclub & Resort. Visit STUDIO 777 in Second Life at http://slurl.com/secondlife/Sol%20Hermosa/114/93/35 Twitter @Studio777Club and on the web at http://www.Studio777s.com.
ABOUT CAPITAL EXCHANGE: Capital Exchange (www.slcapex.com) is Second Life’s largest stock market simulation game. In the last 12 months over L$120,000,000 of virtual stock within the game has been traded. Skip Oceanlane has been the Capital Exchange CEO since January, 2011.
ABOUT LINDEN LAB: Founded in 1999 and headquartered in San Francisco, Linden Lab makes shared creative spaces that inspire and empower users to explore and share their creativity with others. For more about Linden Lab, its products, and career opportunities please visit LindenLab.com.
Safe Harbor Statement:
This press release contains statements which may constitute forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of STUDIO 777, members of management, and assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Capital Exchange is a fictional stock market simulation game operating for entertainment and educational purposes only. All activity regarding Capital Exchange is governed by CapEx’s disclosure statement at http://www.slcapex.com/content/disclosure and full rules for CapEx participation are at http://slcapex.com/content/info.
Copyright © STUDIO 777 Partners. All worldwide rights reserved. Second Life and Linden Lab are registered trademarks of Linden Research, Inc. All trademarks, product data, logos and copyrights are the property of their respective Companies and no endorsement is implied. STUDIO 777 is proud to be equal opportunity and welcomes all applicants.
For STUDIO 777: Luke Slingshot, KariAnne Starsmith
In world: Luke Slingshot, KariAnne Starsmith
Email: Mr. Slingshot: firstname.lastname@example.org, Ms. Starsmith: email@example.com
Luke Slingshot, CEO
STUDIO 777™ (FUN)
STUDIO 777. Discover TREASURE.
Teleport to 777: http://maps.secondlife.com/secondlife/Sol%20Hermosa/128/187/22
CapEx Stock Market information about FUN: http://www.slcapex.com/forums/browse/FUN