EXO U Inc. Announces its Fiscal 2014 First Quarter Financial Results
MONTREAL, Aug. 29, 2013 /CNW Telbec/ - EXO U Inc. ("EXO U" or the "Corporation") (TSXV: EXO), a software provider that helps organizations embrace BYOD and the consumerization of IT, today announced its financial results for the three months ended June 30, 2013. All amounts are stated in Canadian dollars, unless otherwise noted.
FINANCIALS HIGHLIGHTS
FOR THE THREE MONTHS ENDED JUNE 30, 2013 AND 2012
| Q1 Fiscal 2014 | Q1 Fiscal 2013 | |||||
| Revenues | $ | 73,307 | $ | 85,668 | ||
| Adjusted EBITDA 1 | $ | (562,173) | $ | (366,702) | ||
| Net earnings (loss) | $ | (3,086,373) | $ | (523,732) | ||
| Basic earnings (loss) per share | $ | (0.133) | $ | (0.025) | ||
| 1. | Adjusted EBITDA as defined by the Corporation means earnings before interest and financial cost (net of interest income), income tax, depreciation and amortization, stock-based compensation, restructuring and other non-recurring costs. Adjusted EBITDA is a non-IFRS measure. |
Q1 2013 and Subsequent Highlights
- On June 13, 2013, the Corporation became a public company as a result of its successful Qualifying Transaction and Private Placement.
- As a result of going public, the Corporation has significantly strengthened its balance sheet and cash reserves.
- On June 25, 2013, the Corporation announced its first major contract to provide its technology to 100,000 students in Panama. This first-of-its kind program enables children of all economic backgrounds to benefit from having access to some of the world's most innovative digital technologies.
- EXO U also expanded its world-class team with key hires in product management, marketing and R&D.
"We are extremely pleased with the progress we have made in the first quarter," said Shan Ahdoot, President and Chief Executive Officer of EXO U. Now that the private placement is behind us and we have made some key staff additions, our ability to execute in the marketplace is greatly enhanced. We have met with many potential customers and partners over the quarter and we are more than ever convinced that our solution fills a unique, and important, need in the market. We look forward to being able to announce additional business milestones in the near future."
Financial Results
EXO U reported revenues for the three month period ended June 30, 2013 of $73,307 compared to the $85,668 recorded in the same period last year. The Company has focused this year on software and services whose longer lead times will cause periodic spikes, both positive and negative.
Gross margin in the first quarter was $73,307 or 100% of revenue. In the same period last year gross margin was $82,217 or 96% of revenue.
Research and Development expenses increased from $103,877 for the three months ended June 30, 2012 to $211,712 for the three months ended June 30, 2013. This increase was largely due the amortization of development costs ($27,000) that was capitalized in previous years as well as an increase in the staffing of the development team.
Selling, general and administrative expenses for the three months ended June 30, 2013 were $469,088, an increase of $110,930 from the three month period ended June 30, 2012. The increase is mainly attributable to the establishment of the marketing team and the increase in the administrative staffing, in anticipation of the company becoming public.
Listing costs expensed in the quarter were $2,373,930. Of this, $2,121,936 were non cash expenditures.
Stock-based compensation for the period was $50,352, in comparison to no expense for the three-month period ended June 30, 2012.
Net financial expenses for the current quarter were $54,598, which represented a reduction of $89,316 in comparison to the quarter ended June 30, 2012. Last year's results included an interest accretion of $166,454 resulting from the redeemable shares which no longer exist.
Adjusted EBITDA was a loss of $562,244 in the quarter ended June 30, 2013 compared to a loss of $367,262 in the corresponding period last year. The increase is mostly due to increased staffing.
As of June 30, 2013 the Company held cash and short term investments of $4,167,844, an increase of $4,044,485 from the position held as at March 31, 2013. The Private Placement which was completed on June 13, 2013 in connection with the Qualifying Transaction is the main reason for such an increase and has provided the Company with sufficient liquidity to support the ongoing business for the foreseeable future.
| Adjusted EBITDA Reconciliation | Q1 Fiscal 2014 | Q1 Fiscal 2013 | ||||
| Net loss | $ | (3,086,373) | $ | (523,732) | ||
| Financial expenses | $ | 54,598 | $ | 143,914 | ||
| Depreciation of property & equipment | $ | 8,725 | $ | 11,014 | ||
| Amortization of intangible assets | $ | 9,508 | $ | 1,542 | ||
| Amortization of development cost | $ | 27,016 | $ | - | ||
| EBITDA | $ | (2,986,526) | $ | (367,262) | ||
| Stock-based Compensation | $ | 50,352 | $ | - | ||
| Listing costs expensed | $ | 2,373,9301 | $ | - | ||
| Adjusted EBITDA | $ | (562,244) | $ | (367,262) | ||
| 1. | Of this total $2,212,963 was in the form of financials instruments, and not cash. |
2013 First Quarter Financial Statements and Management's Discussion and Analysis
The quarterly financial statements, notes to the financial statements and Management's Discussion and Analysis for the three months ended June 30, 2013, are available under the Corporation's profile on SEDAR at www.sedar.com.
About EXO U
EXO U enables organizations to embrace the consumerization of IT and simplify "Bring Your Own Device" (BYOD) programs by seamlessly delivering applications across all devices and computing platforms. The company's universal application framework delivers a consistent, secure and compelling user experience for existing and future applications. By working seamlessly across all devices and platforms, EXO U's technology-agnostic framework helps enterprises implement BYOD programs, allows schools to incorporate digital technologies into the classroom and facilitates increased productivity and knowledge sharing among both professionals and students. For more information, please visit http://www.exou.com and follow us on Twitter.
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. 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 dated August 29, 2013 available under the Corporation'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 if required 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 responsibility for the adequacy of this release"
Consolidated Interim Statement of Financial Position
As at June 30, 2013 and March 31, 2013
CAD $
| June 30, 2013 (unaudited) $ |
March 31, 2013 (Audited) $ |
|||
| Assets | ||||
| Current | ||||
| Cash | 4,167,844 | 123,359 | ||
| Accounts receivable (note 6) | 177,747 | 87,331 | ||
| Investment tax credits receivable (note 7) | 422,768 | 451,963 | ||
| Prepaid expenses | 47,380 | 112,317 | ||
| 4,815,739 | 774,970 | |||
| Investment tax credits receivable (note 7) | 262,572 | 212,993 | ||
| Property and equipment (note 8) | 108,493 | 116,478 | ||
| Intangible assets (note 9) | 612,970 | 641,357 | ||
| 984,035 | 970,828 | |||
| 5,799,774 | 1,745,798 | |||
| Liabilities | ||||
| Current | ||||
| Accounts payable and accrued liabilities (note 10) | 2,126,890 | 1,991,586 | ||
| Redeemable shares | - | 2,500,000 | ||
| Finders' fee payable (note 5) | 977,021 | - | ||
| 3,103,911 | 4,491,586 | |||
| Commitments and contingencies (note 11) | ||||
| Shareholders' equity (deficiency) | ||||
| Share capital (note 12) | 8,792,752 | 1,301,000 | ||
| Contributed surplus | 1,836,272 | 800,000 | ||
| Accumulated other comprehensive income | 59,575 | 59,575 | ||
| Deficit | (7,992,736) | (4,906,363) | ||
| 2,695,863 | (2,745,788) | |||
| 5,799,774 | 1,745,798 | |||
Consolidated Interim Statement of Net Loss and Comprehensive Loss
For the three months ended June 30, 2013 and 2012
(Unaudited) - CAD $
| Three months ended June 30, 2013 $ |
Three months ended June 30, 2012 $ |
|||
| Revenues | ||||
| Services | 73,307 | - | ||
| Licence fees | - | 85,668 | ||
| 73,307 | 85,668 | |||
| Cost of sales (note 13) | - | 3,451 | ||
| Gross margin | 73,307 | 82,217 | ||
| Expenses | ||||
| Research and development (note 13) | 211,712 | 103,877 | ||
| Selling, general and administrative (note 13) | 469,088 | 358,158 | ||
| Listing costs expensed (note 5 and 13) | 2,373,930 | - | ||
| Stock-based compensation (note 13) | 50,352 | - | ||
| Net financial (note 15) | 54,598 | 143,914 | ||
| 3,159,680 | 605,949 | |||
| Net loss for the period | (3,086,373) | (523,732) | ||
| Other comprehensive income | ||||
| Item that may be reclassified subsequently to profit or loss | ||||
| Cumulative translation adjustment | - | 560 | ||
| Net comprehensive loss for the period | (3,086,373) | (523,172) | ||
| Basic and diluted loss per share | (0.133) | (0.025) | ||
| Weighted average number of common shares outstanding for the year (basic and diluted) | 23,151,567 | 21,300,000 | ||
Consolidated Interim Statement of Cash Flows
For the Three Months Ended June 30, 2013 and 2012
(Unaudited) - CAD $
| Three months ended June 30, 2013 $ |
Three months ended June 30, 2012 $ |
|||
| Cash provided by (used in): | ||||
| Operating activities | ||||
| Net loss | (3,086,373) | (523,732) | ||
| Depreciation of property and equipment | 8,725 | 11,014 | ||
| Amortization of intangible assets | 36,524 | 1,542 | ||
| Stock-based compensation | 50,352 | - | ||
| Non-cash listing expense | 2,121,936 | - | ||
| Accretion on financial liability | - | 166,460 | ||
| Foreign exchange gain on financial liability | - | (15,000) | ||
| (868,836) | (359,716) | |||
| Changes in non-cash operating elements of working capital (note 20) | 76,315 | 1,107,183 | ||
| Net cash from (used) in operating activities | (792,521) | 747,467 | ||
| Investing activities | ||||
| Net cash acquired from reverse acquisition | 50,397 | |||
| Purchase of property and equipment | (812) | (11,109) | ||
| Purchase of intangible assets | (8,137) | (28,751) | ||
| Net cash from (used) in investing activities | 41,448 | (39,860) | ||
| Financing activity | ||||
| Net proceeds from issuance of shares | 4,795,558 | - | ||
| Net cash provided by financing activity | 4,795,558 | - | ||
| Net increase in cash | 4,044,485 | 707,607 | ||
| Cash - beginning of period | 123,359 | 703,314 | ||
| Cash - end of period | 4,167,844 | 1,410,921 | ||
SOURCE: EXO U Inc
For investor or media inquiries, please contact:
Doug McCollam
Chief Financial Officer
(514) 207-1190 or [email protected]
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