PeerStream, Inc. Renews Strategic Focus on Core Video Apps and Reports Full Year and Fourth Quarter 2019 Results

Adopts Streamlined Plan of Operation, Right Sizes Spending and Reduces Total ExpensesNEW YORK, NY, March 24, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — PeerStream, Inc. (“PeerStream,” the “Company,” “we,” “our” or “us”) (OTCQB: PEER), a leading communications software innovator that powers multimedia social applications and developer of secure communications software, today announced financial and operational results for the fourth quarter and full year ended December 31, 2019.Jason Katz, Chairman and CEO of PeerStream, commented, “During the fourth quarter of 2019, the Company adopted a streamlined plan of operations, whereby we reduced operating expenses to better align with our revenue. Even after accounting for one-time severance costs incurred in the fourth quarter, we decreased total costs and expenses by over 13%, or $2.7 million, compared to the prior year, with most of the decrease occurring in the fourth quarter. We intend to continue making further sustainable cost reductions to right-size operations and reduce cash consumption. Our secure communications business has been costly to operate and had a long sales cycle with no revenue generated in the past twelve months. Accordingly, the Board of Directors decided to pursue the monetization of the secure communications business, either through residual ownership or sale. Based on the Board’s decision, in February 2020, we entered into an asset purchase agreement, pursuant to which we agreed to sell substantially all of the assets related to our secure communications business, subject to the terms and conditions of the agreement. We believe that the decision to try to monetize our secure communications business, coupled with a streamlined plan of operation, positions us well for 2020.Although we cannot predict the impact that the recent outbreak of coronavirus will have on our business or results of operations in 2020, to date, our core multimedia social applications have been able to support the increased demand we have experienced. PeerStream continues to serve as a form of safe and entertaining communication during this global pandemic and in order to help those affected in hardest hit countries will continue to offer some of our group video conferencing services free of charge.PeerStream began 2020 focused intently on the opportunities for growth of our core video applications, Paltalk and Camfrog. At the end of 2019, we launched our consumer application platform strategy, under which we plan to co-brand our video chat applications and promote them in partnership with large third-party communities. During the fourth quarter of 2019, we reached our first agreement with a well-known launch partner that has over 30 million active worldwide users who has agreed to a trial of our consumer application platform. We’re also excited to be the first company to integrate SEC Reg A+ qualified Props tokens into our applications via a partnership with YouNow, Inc. We began distributing Props tokens through Camfrog in February 2020 and we expect to launch Props distributions through Paltalk in the second quarter of 2020.Looking ahead, we plan to continue to advance our product offerings by implementing enhancements to our live video chat applications, as well as other features that focus on new user acquisition, retention and monetization. With solid cash flow from our core video chat applications, a good cash position and a clean balance sheet, we believe that PeerStream has a sturdy foundation to grow our core business in a cost efficient manner as we continue to pursue profitability and organic growth,” concluded Mr. Katz.2019 Business Highlights: