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3TL Technologies Corp
Symbol TTM
Shares Issued 71,271,960
Close 2015-03-27 C$ 0.20
Market Cap C$ 14,254,392
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3TL Technologies loses $5.18-million in fiscal 2014

2015-03-31 19:27 ET - News Release

Mr. Robert Craig reports

3TL TECHNOLOGIES CORP. ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2014

3TL Technologies Corp. has released its financial results for the fiscal year ended Dec. 31, 2014.

When the company was founded in 2008, it started business by providing custom digital marketing solutions to major brands and shopping mall operators, including Abercrombie & Fitch, Anthony Robbins, Best Buy, Hollister, Ivanhoe Cambridge, MGM Resorts International, Monster Beverage Corp., Oakley, Pennsylvania Real Estate Investment Trust, Ralph Lauren, Red Bull, St. Louis Rams and Universal Music. In 2012, 3TL commenced development of Platform 3 with the goal of providing a scalable, software-as-a-service (SaaS), digital marketing platform that offers a compelling value proposition to major consumer brands and retailers. In 2013, the company committed to focusing all its resources on building and launching Platform 3 and ceased selling custom development services not related to implementation of the platform.

Platform 3 is a consumer-to-consumer content marketing, data-mining, loyalty and rewards platform used by consumer brands and retailers to engage consumers and facilitate the distribution of relevant brand content through consumer-to-consumer sharing via social media such as Facebook, Twitter and Instagram. Platform 3 collects and analyzes data, including demographics and level of social media brand engagement, to determine which consumers are most valuable to a brand. Consumer brands and retailers can use that data to offer rewards through Platform 3 to motivate and incentivize consumers to accelerate their sharing and purchasing. Platform 3 is easy to use and implement, allowing major brands and retailers access to the major social media channels and to manage consumer data on a common user interface and consumer database.

The company achieved key milestones during the year ended Dec. 31, 2014:

  • Launched Platform 3, the company's SaaS consumer-to-consumer content marketing and data-mining platform;
  • Secured contracts to provide Platform 3 to key brands, including Proximo Spirits' Maestro Dobel tequila, Pennsylvania Real Estate Investment Trust, Ivanhoe Cambridge's Guildford Town Centre, Morguard REIT's New Sudbury Centre, Ernie Ball Inc., Juanita's Foods, Zapne LLC and U.S. Performing Arts Camps;
  • Launched Snap 3, the company's optical character recognition technology and activated the product for Guildford Town Centre (GTC) during its 2014 winter holiday promotion. Snap 3 was used by GTC to enable customers to scan receipts at the point of sale for rewards, significantly increasing users for GTC's rewards program;
  • Completed a qualifying transaction to list on the TSX Venture Exchange on Oct. 30, 2014, raising equity of over $2.9-million.

Subsequent to the year ended Dec. 31, 2014, the company has continued to make progress:

  • Signed more than $374,000 in contracts for Platform 3 and Snap 3 during the first quarter of 2015, which exceeded revenues for the entire year ending Dec. 31, 2014;
  • Secured Wet Seal, a major national U.S. fast-fashion retailer, in January, 2015, as a customer. The company will launch its style board and outfit-sharing technologies on Platform 3 for Wet Seal. The style board and outfit-sharing technologies enable consumers to create their own virtual outfits using the retailer's merchandise and to share this content with their friends and followers through Facebook, Twitter and Instagram. Wet Seal is using Platform 3 as part of its strategy to increase the frequency and length of visits to its website with the goal of driving incremental e-commerce transactions (see press release dated Feb. 20, 2015);
  • Established sales teams in Canada and the United States that are building a sales pipeline of major consumer brands, retailers and shopping mall operators;
  • Signed a letter of intent to acquire RewardStream Inc. (RS), a provider of referral marketing and loyalty solutions (see press release dated Jan. 29, 2015). The letter of intent has now expired with no definitive agreement between 3TL and RS. 3TL remains interested in developing business opportunities with RewardStream based on its complementary technology and customer base.

In the year ended Dec. 31, 2014, 3TL generated $310,250 in revenues after launching Platform 3 in early 2014 with limited sales and marketing resources, compared with $630,808 in sales in the previous year. The decrease in revenues was largely due to the transition from providing custom development services to launching Platform 3. Revenues are anticipated to increase in 2015 due to the successful implementation of Platform 3 in a number of reference accounts and the allocation of increased resources to sales and marketing.

The company had a loss of $5,189,700 in 2014 compared with a loss of $613,385 in the previous year, included in the loss were $3,340,504 in items not effecting cash of which $2,577,077 were non-recurring and related to the conversion of convertible debt and valuation of the shares issued to obtain listing on the TSX-V. The company had $1,923,151 in cash as at Dec. 31, 2014.

"In 2014, we achieved our goals of launching Platform 3 with some key customers and going public to raise capital to expand sales and fund ongoing improvements to our technology and products," said Rob Craig, chief executive officer of 3TL Technologies. "Platform 3 is delivering great value to our initial customers, accelerating and enhancing the brand-friendly content that consumers share with their friends and followers on social media, leading to increased traffic and revenues for our customers' e-commerce websites and retail locations. In 2015, we are working hard to expand our customer base of major consumer brands and retail operators by validating Platform 3 through pilots and annual subscriptions."

We seek Safe Harbor.

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