MONTREAL, July 29, 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 fiscal year ended March 31,
2014. All amounts are stated in Canadian dollars, unless otherwise
noted.
FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS AND FULL YEAR ENDED MARCH 31,
2014
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Q4 Fiscal 2014
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|
Q4 Fiscal 2013
|
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Full Year 2014
|
|
Full Year 2013
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Revenue
|
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$65,667
|
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$77,380
|
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$138,974
|
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$272,750
|
Adjusted negative EBITDA 1 |
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$(1,342,693)
|
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$(497,509)
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$(3,928,926)
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$(1,781,994)
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Net loss
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$(1,640,416)
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$(768,122)
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$(7,670,579)
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$(2,634,612)
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Basic and diluted loss per share
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$(0.05)
|
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$(0.04)
|
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$(0.24)
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$(0.12)
|
-
Adjusted EBITDA as defined by the Company means earnings before interest
and financial costs (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. Please
refer to the annex for reconciliation of net loss to adjusted negative
EBITDA.
Fiscal Year 2014 and Subsequent
-
On June 13, 2013 the Company became a public company as a result of its
successful Qualifying transaction and concurrent private placement.
During the process the Company received gross proceeds of $5,200,600.
-
on February 10, 2014, the Company announced that it had signed a
partnership agreement for the education sector in Quebec with CGI. The
agreement proclaims that the two companies will be working together to
promote the implementation of educational software solutions.
-
on March 6, 2014, the Company announced the closing of its bought deal
placement offering of 4,517,000 units of EXO U at $1.55 per unit for
gross proceeds of $7,001,350.
-
on June 19, 2014 the Company announced that it had delivered the 100,000
licence keys for students and teachers as well as the installation of
three additional digital classrooms in Panama.
-
on June 27, 2014 the Company announced the appointment of four highly
qualified individuals to its newly formed Board of Advisors. They were
Andy Brown, currently CEO of Sand Hill East Ventures and Street Scale
IT Group; Pierre Marc Johnson, former Premier of Quebec and current
advisor to Western governments around the world; Thierry Karsenti,
Special Advisor to the Canadian Government on the integration of
technology into the classroom; and Becky Wanta, former CIO of MGM
International, Best Buy and former CTO of Pepsico and Wells Fargo.
-
on June 27, 2014 the Company announced the appointment of Sophic Capital
as its investor relations firm.
"We are very pleased with the progression of our company in the last
year" said Shan Ahdoot, President and Chief Executive Officer of EXO U.
"The financings completed in June 2013, and March 2014 coupled with the
recent warrant exercises, has given us good financial flexibility to
invest in and expand the business. We are attracting excellent talent
for the Company, as well as for our newly formed Advisory Board. In
addition, we made our first significant digital classroom delivery in
Panama. Finally, we are confident that new orders will be soon
forthcoming from the numerous opportunities that we are well advanced
on"
Financial Results
EXO U had $65,667 of revenue in the fourth quarter fiscal 2014 which was
marginally down from the $77,380 reported in the same period last year.
The Company also had deferred revenue of $386,925 in the quarter with
the delivery of the first element of the Panama contract.
Full year revenue was $138,974, down from the $272,750 recorded last
year. Due to the mix of revenue, gross margin in the current fiscal
year was $127,599, which was down $9,652 from a year ago.
Research and development (R&D) expense in the Quarter of $747,845
represented an increase of $572,751 from that incurred in the same
period last year. Causals of the increase included a step up in R&D
staffing, no longer capitalizing development costs, and expensing in
the current period previously capitalized development costs.
Full year research and development expenses, for the same reasons as
noted above, increased from $391,694 incurred in fiscal 2013 to the
$1,539,159 recorded in fiscal 2014.
Selling, general and administrative (SG&A) expenses for the fourth
quarter were $754,596 versus the $428,133 incurred in the same period
last year. The overall increase in staffing, public company costs, a
new facility in Palo Alto, as well as a write-off of some intangible
assets all contributed to the increase.
Likewise, full year SG&A expenses for the full fiscal year increased
from $1,595,382 to $2,762,405. This run rate will continue to increase
as the Company drives to get into new markets and expands its staff.
Listing expenses of $2,380,331 were incurred during the year, of which
$2,128,336 was in equity and hence did not impact cash.
Stock based compensation for the quarter and full year were $194,101 and
$1,050,968 respectively.
In the quarter ended March 31, 2014, net financial costs were $344,
versus the $222,407 recorded in the same period last year. On a year to
date basis, costs were $14,656 versus the $775,147 recorded last year.
Last year expense was mainly driven by the $768,135 non-cash charge for
interest accretion on the redeemable shares.
Adjusted EBITDA was a loss of $1,342,693 in the fourth quarter ended
March 31, 2014, compared to a loss of $497,509 in the corresponding
period last year. For the full year the Adjusted EBITDA loss was
$3,928,926 compared to a loss of $1,781,994 in fiscal 2013. An increase
in staffing, public company costs, and the expensing of R&D as incurred
versus capitalization were major causals of the increase.
As of March 31, 2014, the Company held cash of $6,986,455, a significant
increase from the $123,359 position it held at the beginning of the
fiscal year. Proceeds from the Qualifying transaction as well as the
private placement were the major contributors to this increase.
The quarterly and year to date consolidated financial statements and
related notes and Management's Discussion and Analysis for the three
month and full year ended March 31, 2014 and 2013, are available under
the Company's profile on SEDAR at www.sedar.com.
Re-pricing of Options to Sophic Capital
Further to the news release dated June 27, 2014, EXO has been granted
conditional approval from the TSX Venture Exchange ("TSXV") with
respect to the granting of options to Sophic Capital Inc. ("Sophic") to
purchase up to 100,000 common shares of EXO (the "Options"), subject to
the re-pricing of such options to a new exercise price of $1.80, up
from the original $1.55. EXO and Sophic have agreed to the re-pricing
and Sophic will be granted the re-priced Options in consideration for
the services to be provided by Sophic to EXO pursuant to an investor
relations services agreement. All other terms of the re-priced Options
will remain the same in accordance with EXO's option plan.
The appointment of Sophic and granting of Options remain subject to
final TSXV approval.
About EXO U
EXO U (TSXV:EXO) enables true mobility for businesses and educational
organizations by solving important mobility issues such as security,
privacy, collaboration, and application and content management. 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 you
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 your computing devices,
without compromising security or protected information, the EXO U
Solution allows 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 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 September 26, 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
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Q4 Fiscal 2014
|
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Q4 Fiscal 2013
|
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Full Year Fiscal 2014
|
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Full Year Fiscal 2013
|
|
|
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|
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Net loss
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($1,640,416)
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($768,122)
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($7,670,579)
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($2,634,612)
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Financials expenses
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$344
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$222,407
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$14,656
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$755,147
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Depreciation of property & equipment
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$11,531
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$11,909
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$41,542
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$46,663
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Amortization Intangible assets
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$19,425
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$1,542
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$128,997
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$6,168
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|
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Negative EBITDA
|
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($1,609,116)
|
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($532,264)
|
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($7,485,384)
|
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($1,806,634)
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|
|
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|
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Stock-based Compensation
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$194,101
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$ -
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$1,050,968
|
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$ -
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Listing expenses
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($173)
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$ -
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$2,380,3311 |
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$ -
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Foreign exchange
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($2,005)
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$34,755
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$50,659
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$24,640
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Impairment of assets
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$74,500
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$ -
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$74,500
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$ -
|
|
|
|
|
|
|
|
|
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Negative Adjusted EBITDA
|
|
($1,342,693)
|
|
($497,509)
|
|
($3,928,926)
|
|
($1,781,994)
|
Adjusted EBITDA
- $2,128,336 of this was a non-cash expense.
SOURCE EXO U Inc
<p> </p> <p> For investor or media inquiries, please contact: </p> <p> Sean Peasgood<br/> <a href="mailto:Sean@SophicCapital.com">Sean@SophicCapital.com</a><br/> 416.565.2805 </p>