MONTREAL, Nov. 25, 2014 /CNW Telbec/ - EXO U Inc. ("EXO U" or the "Company"), a software provider that develops cross platform operating system agnostic software that enables development of highly customizable touch-based user interfaces and experiences, today announced its financial results for the Quarter ended September 30, 2014. All amounts are stated in Canadian dollars, unless otherwise noted.
| FINANCIAL HIGHLIGHTS FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2014 |
|||||
| Three months |
Three months |
Six months |
Six months |
||
| Revenue |
$312,734 |
$ — |
$815,923 |
$73,307 |
|
| Adjusted negative EBITDA 1 |
$(1,890,961) |
$(1,044,336) |
$(3,026,708) |
$(1,606,509) |
|
| Net loss |
$(2,754,921) |
$(1,610,652) |
$(4,239,987) |
$(4,697,025) |
|
| Basic and diluted net loss per share |
$(0.07) |
$(0.05) |
$(0.10) |
$(0.17) |
|
| 1. |
Adjusted negative EBITDA is a non-IFRS measure. Please refer to the annex for the Company's definition of such measure and for a reconciliation of net loss as determined in accordance with IFRS to Adjusted negative EBITDA. |
Q2 Fiscal 2015 and Subsequent Highlights
-the Company had a $7,979,878 cash balance at the end of the quarter.
-in the quarter, the Company recorded $312,734 of revenue ($815,923 for the six-month period).
-since the beginning of the Fiscal Year and after the quarter-end, the Company has generated $3,544,309 from the exercise of warrants and stock options.
"I am very pleased with our progress in our key target markets" said Shan Ahdoot, President and Chief Executive Officer of EXO U. "Today, we are at various stages of discussions with a number of countries around the world and have received positive feedback. Based on these discussions, we anticipate deployments to begin over the next 12 months. We have also made significant investments in growing our research and development team to accelerate the development of new features for our solution and ultimately facilitate the acquisition and implementation of new customers."
Financial Results
EXO U had $312,734 of revenue in the second quarter ended September 30, 2014 versus no revenue reported in the same period last year. The revenue represented the last portion of the digital classrooms contracts with the Government of Panama. The Company recorded revenues of $815,923 for the six-month period then ended and all relates to the digital classrooms delivered.
Gross margin in the quarter was $264,543 and $685,730 on a year-to-date basis representing 85% and 84% of revenue respectively.
Research and development ("R&D") expense was $966,640 and $1,471,343 respectively for the second quarter and the six-month period, an increase of $528,844 and $809,835 respectively from the same periods last year. The Company has increased its R&D team and activity as they drive its product development.
Selling, general, and administrative expenses for the second quarter were $1,241,885, up $587,854 from that incurred in the same period last year. On a year-to-date basis, these expenses increased from $1,111,048 in Fiscal 2014 to $2,343,301 for this fiscal. The increase is due to the hiring of new staff, business development and the establishment of the Palo Alto, California facility.
Stock based compensation in the second quarter increased year over year from $525,324 to $791,241 and from $575,676 to $1,090,616 for the six-month period, reflecting the issuance of stock options to the growing employee base and to some third-parties.
Adjusted negative EBITDA was $1,890,961 in the quarter, compared to negative $1,044,336 in the same period last year. On a year-to-date basis, adjusted negative EBITDA reached $3,026,708 compared to $1,606,509 twelve months ago. These increases in the adjusted negative EBITDA are explained by higher spending in the development of the Company's solution as well as increased staffing to bring the Company to the next level.
As of September 30, 2014, the Company had a cash balance of $7,979,878 which is an increase of $993,423 from the position it had as at March 31, 2014. The cash generated from the exercising of warrants and stock options was partly offset by the cash used in operating and investing activities.
The unaudited interim condensed consolidated financial statements and related notes and Management's Discussion and Analysis for the three- and six-month periods ended September 30, 2014 and 2013, are available under the Company's profile on SEDAR at www.sedar.com.
About EXO U
EXO U's shares trade on the TSX Venture Exchange under the ticker symbol EXO.V. EXO U develops an innovative software platform which enables businesses and educational institutions to securely mobilize and manage their mobile workforce and students by delivering engaging experiences spanning desktop and mobile applications. At the core of EXO U's platform is the smart and agnostic EXOengine that unifies multiple software platforms, allowing devices to interact and communicate seamlessly together. It enables true mobility for businesses and educational organizations by solving important mobility issues such as security, privacy, collaboration, and management of application and content. EXO U's technology agnostic framework delivers to end users a safe, reliable, and intuitive Smart Workspace designed for connecting with people, accessing services, and sharing information and digital content, while requiring minimal infrastructure and optional Internet connectivity. It simplifies management of the entire application lifecycle, freeing the organizations to focus on building engaging apps that work across different operating systems and form factors, thus increasing productivity for developers and reducing total cost of ownership for organizations. By offering an engaging and exceptional user experience on all computing devices, without compromising security or protected information, the EXO U enterprise and education solutions allow organizations to embrace consumerization and enjoy all the benefits of mobile. For more information, visit http://www.exou.com and follow us on Twitter @exo_u.
Disclaimer in Regards to Forward Looking Statements
Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions. The results or events predicted in these forward-looking statements may differ materially from actual results or events and there is no assurance that discussions with any government authorities will result in a definitive agreement. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. For additional information with respect to certain of these and other assumptions and risk factors, please refer to EXO U's management's discussion and analysis for the three- and six-month periods ended September 30, 2014 available under the Company's profile on SEDAR at www.sedar.com. The forward-looking information contained in this press release represents EXO U's current expectations. EXO U disclaims any intention and assumes no obligation to update or revise any forward-looking information, except by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts any responsibility for the adequacy of this release.
ANNEX
Adjusted negative EBITDA for the three- and six-month periods ended September 30, 2014 and 2013
| (in Canadian dollars) |
Three months |
Three months |
Six months |
Six months |
| Net Loss |
(2,754,921) |
(1,610,652) |
(4,239,987) |
(4,697,025) |
| Financials expenses (income), net |
(5,331) |
(2,189) |
(9,518) |
14,976 |
| Depreciation of property & equipment |
15,954 |
10,967 |
28,074 |
19,692 |
| Amortization of intangible assets |
37,067 |
36,524 |
74,132 |
73,048 |
| Negative EBITDA |
(2,707,231) |
(1,565,350) |
(4,147,299) |
(4,589,309) |
| Stock-based compensation |
791,241 |
525,324 |
1,090,616 |
575,676 |
| Listing costs |
— |
6,401 |
— |
2,380,331 |
| Net loss (gain) on foreign exchange |
25,029 |
(10,711) |
29,975 |
26,793 |
| Adjusted Negative EBITDA |
(1,890,961) |
(1,044,336) |
(3,026,708) |
(1,606,509) |
Management uses net loss as presented in the unaudited interim consolidated statement of loss and comprehensive loss as well as loss before financing expenses (income), income taxes, depreciation of property and equipment and amortization of intangible assets (including impairment charge) ("Negative EBITDA") and Adjusted Negative EBITDA as measures to assess the performance of the Company. Negative EBITDA and Adjusted Negative EBITDA are other financial measures.
Negative EBITDA represents an indication of the Company's capacity to generate income from operations before taking into account management's financing decisions, cost of depreciation of property and equipment, amortization of intangible assets as well as income taxes.
Adjusted Negative EBITDA represents an indication of the Company's capacity to generate income from operations before taking into account certain non-cash transactions. Adjusted Negative EBITDA is a measure used by the Company to make strategic decisions, forecast future results and evaluate performance. Adjusted Negative EBITDA is Negative EBITDA excluding stock-based compensation expenses, foreign exchange gains (losses) and other one-time and unusual items.
Neither Negative EBITDA nor Adjusted Negative EBITDA represent the actual cash provided by operating activities, nor are they recognized measures of financial performance under International Financial Reporting Standards ("IFRS"). EXO U's definition of Negative EBITDA and Adjusted Negative EBITDA may differ from that used by other companies. Investors are cautioned that Negative EBITDA and Adjusted Negative EBITDA should not be considered as an alternative to net loss determined in accordance with IFRS or indicators of the Company's performance.
SOURCE: EXO U Inc
For investor or media inquiries, please contact: Sean Peasgood, [email protected], 416.565.2805
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