(via TheNewswire)
VANCOUVER BC / TheNewswire / April 28, 2017 -- Eight Solutions Inc. (TSXV:ES) ("Eight Solutions" or the "Company") announces the release of its audited consolidated financial results for the year ended December 31, 2016. All figures are in Canadian dollars.
2016 Financial Highlights
-Revenue for the year ended December 31, 2016 was $3,456,435, all of which was attributable to Cumul8 licensing and royalty revenue compared to the year ended December 31, 2015 when only $1,930,874 of the Company's $8,064,955 total revenue was attributable to licensing and royalty revenue, an increase in 2016 over 2015 of 80% in licensing and royalty revenue.
-2016 was the complete development transition from 3D conversion to a Cumul8 cloud based big data platform. The development effort, to build the platform, took longer than expected by the Company given the deep development efforts required in building big data analytic platforms
-The Company's net loss attributable to shareholders was $2,869,868 for the year ended December 31, 2016 compared to a net income attributable to shareholders of $255,764 for the year ended December 31, 2015. Excluding all one-time gains and losses, net loss attributable to shareholders of the Company improved by 9% in 2016 over 2015.
-Due to the sale of the 3D studio conversion business and the resulting change in the Company's business model, net cash used in operating activities was 40% less for the year ended December 31, 2016 when compared to the year ended December 31, 2015.
-The Company was successful in its action against Tianjin Fu Feng Da Movie & Television Technology Investment and Development Co., Ltd. ("FFD") in the B.C. Supreme Court and extinguished a $3,294,635 liability, recording an equivalent gain.
2017 Outlook
-The Company plans to continue entrenching its Cumul8 platform within the forestry sector and expand to other sectors. Today, the Company has a platform for driving raw sensor data into the cloud to then provide visual analytics to the user. The Company has mills running this software today and 2017 will be all about selling the product.
-The Company also anticipates further growth in the entertainment sector, fueled by the Eight Solutions' commercial launch of its Cumul8 Jetstream product, a file transfer system designed to be better, faster and easier to use than its competitors and is currently downloadable on http://jetstream.cumul8.com/
-Upon the approval of the shareholders of the Company, the Company will sell its 3D technology to Prime Focus Ltd for $5,000,000 to inject working capital into the Company as well as to pay off the Company's short-term debt. With the shift of the Company's business to a big data analytic platform, the transaction allows the Company to capitalize on its 3D technology in the current 3D market rather than risk the future of 3D, as well as minimize shareholder dilution all the while injecting some working capital into the Company. Full details of the transaction will be provided in the Company's upcoming Information Circular.
-The Company plans to restructure its operations to minimize and reduce operating costs, further enhanced by the recent resignation of Ken Scott as President and the appointment of Rory Armes as both President and Chief Executive Officer.
Financial Summary for the fiscal year ended December 31, 2016
| Year ended December 31 |
| 2016 | 2015 |
| | |
Revenue | $ 3,456,435 | $ 8,064,955 |
| | |
Net income (loss) and comprehensive income (loss) attributable to the shareholders of the Company | $ (2,869,868) | $ 255,764 |
| | |
Basic earnings (loss) per share | $ (0.05) | $0.01 |
| | |
About Eight Solutions
Eight Solutions is a technology company led by a team of video game industry veterans. Eight Solutions' flagship product is Cumul8, a data analytics and visualization solution. Cumul8 works with any type of data source to help people and companies understand, collaborate, and make better decisions with data. Eight Solutions' portfolio includes an award-winning 3D software technology licensed to the film industry; and Reelhouse, a unique video-on-demand platform that allows filmmakers to distribute their content directly to users. For more information, visit www.eightsolutions.com .
On Behalf of the Board of Directors
"Rory Armes"
Rory Armes
Chief Executive Officer, President and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Except for statements of historical fact, this news release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" "can" and other similar words, or statements that certain events or conditions "may" occur. Although Eight Solutions believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
For more Information, please contact:
Investor Relations
investor.relations@eightsolutions.com
Suite 100, 138 East 7 th Avenue
Vancouver, British Columbia, V5T 1M6
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