RE:RE:News releaseNews is out and so am I . Not sure how you read these financials as good. The way I read them there is more pain ahead. Good Luck boys...
VidWRX loses $1.6-million in Q3 2015
2015-10-26 07:11 MT - News Release
Mr. George Fleming reports
VIDWRX REPORTS Q3 SALES BOOKINGS UP 40% OVER THE PREVIOUS QUARTER
VidWRX Inc. has filed financial results for the three-month period ended Sept. 30, 2015.
The results for the three months ending September 30, 2015 reflect record quarterly sales of $572,843 an increase of 40% over the previous quarter and 72% over the year ago quarter. Reseller Partner sales bookings grew 29% over the prior quarter, and 28% over the year-ago quarter. Sales backlog increased to a record $1.89M, growth of 27% over the prior quarter. Revenue grew 13% over the prior quarter, and 101% over the same quarter in the prior year. Complete financial results for the third quarter of 2015 are available at www.sedar.com.
Highlights:
- Record sales posted in Q3 2015 with an increase of 40% over the prior quarter and 72% over the previous year, totaling $572,843
- Sales backlog continues to grow, now $1.89 million, up $27% over the previous quarter and 124% over the same quarter in the previous year.
- Revenue up 13% over Q2 2015 and 101% over the year-ago quarter to $156,752
- Reseller growth continued to strengthen, producing sales of $350,793 - a gain of 29% over the prior quarter and 28% over the year-ago quarter
- New Reseller Partner sales grew 12% over the prior quarter, and 42% over the year-ago quarter
- Developed and launched SoMedia Ads and an integrated Facebook advertising program plus completed integrations with more than 10 major SaaS marketing platforms including Marketo (NASDAQ:MKTO), Oracle-Eloqua (NASDAQ:ORCL)
- Deployed significant improvements to outbound sales processes through the development of a sophisticated Revenue Performance Management System (RPM)
Q3 2015 KEY PERFORMANCE INDICATORS (in Canadian dollars) Quarter ended Quarter ended Quarter ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2013 Value of backlog $ 1,887,884 $ 842,107 $ 359,943 Value of sales $ 572,843 $ 332,739 $ 147,809 Average order value -- repeat sale $ 5,039 $ 3,934 $ 1,916 Average order value -- new sale $ 7,221 $ 3,574 $ 728
Definitions
Sales:The dollar value of videos sold during the period. A video is considered sold when a client makes an order and provides a deposit. Revenue is not recognized until the video is completed and approved by the client.
Average Order Value - Repeat Sales:The total of all orders received from repeat clients in the quarter, divided by the number of unique orders made by these clients.
Average Order Value - New Sales:The total orders received from new clients in the quarter, divided by the number of unique orders made by these clients.
Backlog - the value of videos sold to date but still to be completed.
SELECTED FINANCIAL INFORMATION (in Canadian dollars) Quarter ended Quarter ended Quarter ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2013 Total revenues $ 156,752 $ 78,013 $ 49,567 Employment expenses $ 961,350 $ 744,069 $ 926,079 Other operating expenses $ 708,357 $ 302,785 $ 545,915 Non-operating expenses $ 92,676 $ 97,655 $ 68,182 Comprehensive (loss) for the period $(1,605,631) $(1,066,496) $(1,490,608) (Loss) per share (basic and diluted) $ (0.03) $ (0.03) $ (0.16)
Note: the foregoing is a summary of certain financial information relating to the Company and should be read in conjunction with the Company's audited annual Financial Statements for the financial years ended December 31, 2014 and 2013 including the notes thereto.
The Company also announces that it has granted 200,000 incentive stock options, exercisable at a price of $0.12 per share, for a period of five years, to certain insiders of the Company. All options granted are subject to vesting restrictions as set out in the Company's stock option plan and the policies of the Exchange.
The Company also announces that it intends to seek approval from the Exchange for amendments to existing convertible notes (the "Notes"). The Notes were originally issued to subscribers on November 10, 2014 and convertible into Units consisting of one common share and one-half of one share purchase warrant at a price equal to the average closing price of the common shares during any 10 day period prior to providing the notice of the intent to convert with a minimum price of $0.20 per Unit until November 10, 2015. Each whole warrant is exercisable at a price that is at a 50% premium to the conversion price of the Notes until the date that is 36 months after the date of conversion.
Upon acceptance by the Exchange the maturity date of the Notes will be extended to November 10, 2016, and the conversion price of the Units will be $0.10 per Unit with each whole warrant under the Unit exercisable at a price of $0.15 per share for a period of three years from the date of the conversion and issuance of the warrants.
The Company also announces that it has reached agreement with an arm's length creditor to restructure certain outstanding indebtedness in consideration for a one-time issuance of 350,000 common shares and certain cash payments to be made over a term concluding on April 30, 2016. The share issuance is subject to the approval of the TSX Venture Exchange, and upon issuance the shares will be subject to a four month statutory hold period.
We seek Safe Harbor.
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