The Deerfield Beach, Fla.-based company said that because it ceased providing processing services its revenue is based solely on commissions from contracts to resell third-party processing services.
The company made a deal in March with Arizona-based Etelegate to handle its payment processing services.
In the filing released this week, iBill’s parent said it is working on other agreements for the third quarter to regain some of the revenue lost during the second quarter.
During the quarter ending June, revenue decreased to $100,000 from $1.6 million during the second-quarter 2005 and approximately $1.2 million during the first-quarter 2006.
The top Interactive Brand officials, President Gary Spaniak and CEO Steve Markham, did not return phone calls placed by XBIZ at post time.
However, in a filing with the SEC, the company said that “the contracts [to resell third-party processing services] have not created the anticipated amount of revenue.”
In related news, iBill’s parent said it could not complete its quarterly filing in time because it needed more time to collect and review its finances.
The past several years have been problematic for the public company.
Interactive Brand has been scrambling to quell legal action by unpaid webmasters in the past year and is disputing a default on a loan from investment bankers IIG Trade Opportunities Fund.
In a March filing with the Securities and Exchange Commission, the company reported slightly more than $50 million in total assets set against more than $52 million in liabilities.
Earlier this year, Interactive Brand struck a deal with LitFunding Corp. to provide marketing to its large customer base, directing potential customers to payday loan company Easy Money Express, which LitFunding recently acquired.
In previous deals, the company broadened its stakehold. Interactive Brand owns a 35 percent stake in Penthouse and an 18 percent share in ITVN, which markets XTV, an adult Internet-protocol network.
