ZAIS Group Holdings Inc. recently revealed its Q1 results. The company recorded GAAP net loss for the three months ended March 31, 2017 of $(5.4) million compared with a GAAP net loss of $(6.4) million for the three months ended March 31, 2016. The decrease of $1 million in GAAP net loss was primarily driven by a decrease in expenses of $1.1 million offset by a decrease in other income of $0.3 million.
The total expense decrease was primarily due to a $2.4-million decrease in salaries, bonuses, severance and associated payroll taxes and other employee benefits due to a reduction in force that occurred in 2016, offset by a $0.8 million increase in equity compensation expense relating to a reduction in the forfeiture rate on ZGP’s Class B-0 units due to lower employee turnover.
General, administrative and other expenses increased by $0.5 million primarily due to an increase of $0.7 million in the cost of research and data services borne by ZAIS Group and paid directly by ZAIS Group to vendors relating to the management of the ZAIS Managed Entities, offset by $0.2 million of expense reductions with regard to professional fees, occupancy and utilities, information systems, and travel and entertainment.
Michael F. Szymanski, Chief Executive Officer, previously said “We believe that we are making progress with our fundraising activities as a result of our investment in business development staffing and our strong investment performance. Our return to sustained profitability remains challenging and will depend on our success in attracting and retaining assets under management.”
As of March 31, 2017, the company had cash and cash equivalents, on an unconsolidated basis, of $25.5 million and no debt obligations.