RE:Imperus clears final short form prospectusThey added new disclosure to the final prospectus after I pointed out to them that the preliminary prospectus was lacking a discussion/explanation of Diwip's latest 9 month results.
During the nine months ended September 30, 2014, there was an increased rate in which Diwip’s customers shifted from Desktop Canvas to Mobile devices when using gaming apps. Diwip needed to make adjustments to its business to address this shift. Diwip increased its expenses by adding to its mobile development and, in addition, increased the advertising of its games on Mobile platforms. Mobile games advertising has resulted in higher spends and lower generation of revenues to date as Diwip ramps up its presence in this sector. Diwip recognized a trend amongst its customers who were shifting to mobile apps instead of using their desktop computers in order to play games. This trend caused a decline of approximately 13.5% in daily users on the desktop games Diwip provided in 2013 vs 2014, reducing its revenues by 18.2% year over year. In order to address this issue, and to re-capture growth again, Diwip set out to develop its games on Mobile platforms. This initiative required the establishment of new Mobile development teams who specialize in the various mobile platforms such as Google, Android and Apple iOS. These teams increased the monthly development expenses of Diwip due to the increased number of developers and the extended development time that Mobile apps require to develop when comparing to Desktop games. As a result, during the nine months ended September 30, 2014, Diwip spent USD$1,885,200 on development versus USD$1,231,136 for the nine-month period ended September 30, 2013. Additionally, costs associated with advertising to new customers nearly tripled in 2014 compared to 2013. For example, in 2013, Facebook charged Diwip, on average $0.20 per thousand impressions for ad display on its network. In 2014, this amount increased to over $0.60 per thousand. Today, Diwip has completed many of its mobile developments and 2015 will mark the first year Diwip will focus much of its growth in the Mobile sector as it now has its products available on the various Mobile platforms.