ePals Corporation announced that Katya Andresen will succeed Miles Gilburne as the Company's Chief Executive Officer, effective January 1, 2014 and will report directly to Miles Gilburne, who will transition from his role as CEO over the next six months while continuing to serve as Chairman. During the transition, Ms. Andresen will serve as President and Chief Operating Officer. Current President, Ed Fish and current Chief Operating Officer, J. Michael Kelly will continue reporting to Miles Gilburne in the office of the Chairman, focused on major strategic partnerships, international joint ventures and corporate finance. Ms. Andresen brings to ePals over 20 years of experience in online community development, the software services business, social media marketing, management operations and journalism. She has a proven track record of driving significant revenue growth around online communities and software platforms and has built scalable businesses with high social impact. Most recently, Ms. Andresen served as Chief Operating Officer and Chief Strategy Officer of Network for Good.

ePals Corporation reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported revenue of $4,609 compared with $2,009 for the same period last year. Loss from operations was $13,712 compared with $4,802 for the same period last year. Net loss was $14,114 or $0.09 basic and diluted per share compared with $4,821 or $0.04 basic and diluted per share for the same period last year. The difference in net loss for the quarter between 2012 and 2011 was primarily due to the $6.7 million impairment of goodwill and intangible assets. For the full year, the company reported revenue of $15,201,910 compared with $3,600,790 for the same period last year. Loss from operations was $26,344,768 compared with $17,553,013 for the same period last year. Net loss was $26,820,682 or $0.20 basic and diluted per share compared with $17,792,863 or $0.35 basic and diluted per share for the same period last year. Net cash used in operating activities was $19,418,539 compared with $12,926,639 for the same period last year. Purchase of equipment was $305,047 compared with $413,254 for the same period last year. Increase in other intangible assets was $545,076 compared with $167,043 for the same period last year. The company’s platform revenue decreased by 44% year-over-year as it de-emphasized platform subscriptions in second half of 2012 and worked to configure and enhance enterprise product and sales channels in response to competitive conditions and evolving strategies of channel partners. The difference in net loss between 2012 and 2011 was primarily due to the $6.7 million impairment of goodwill and intangible assets. The company recorded impairment of goodwill and intangible assets of $6,671 for the quarter ended December 31, 2012.

ePals Corporation announced that it has completed a second tranche of its previously announced non-brokered private placement of senior secured convertible debentures, bringing the total principal amount of Debentures issued to date to $5,000,000. Additional closings of the private placement of Debentures are anticipated. The Company intends to use the net proceeds of the offering for general corporate purposes and working capital. The definitive terms and conditions of the Debentures are set forth in the trust indenture dated March 20, 2013 between the Company and Olympia Transfer Services Inc. The description of the Debentures in this press release is qualified in its entirety by the terms and conditions of the Debentures as set out in the Indenture. As described in prior press releases relating to the private placement, minimum total gross proceeds of the private placement are anticipated to be $7,500,000.