MONTREAL, Nov. 29, 2013 /CNW Telbec/ - EXO U Inc. ("EXO U" or the
"Corporation") (TSXV: EXO), a software provider that develops cross
platform, OS agnostic software which, when layered atop any OS, enables
development of highly customizable touch-based user-interfaces and
applications, today announced its financial results for the three and
six months ended September 30, 2013. All amounts are stated in Canadian
dollars, unless otherwise noted.
FINANCIAL HIGHLIGHTS FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30,
2013 AND 2012.
|
Q2 Fiscal 2014
|
Q2 Fiscal 2013
|
YTD Fiscal 2014
|
YTD Fiscal 2013
|
|
|
|
|
|
Revenue
|
-
|
1,461
|
73,307
|
87,130
|
|
|
|
|
|
Adjusted EBITDA1
|
(1,044,336)
|
(464,543)
|
(1,606,509)
|
(831,245)
|
|
|
|
|
|
Net Earnings (loss)
|
(1,610,652)
|
(667,757)
|
(4,697,025)
|
(1,191,489)
|
|
|
|
|
|
Basic earnings (loss) per share
|
(0.049)
|
(0.031)
|
(0.166)
|
(0.056)
|
1 Adjusted EBITDA as defined by the Corporation means earnings before
interest and financial cost (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
|
.
"We are very pleased with the continued progress we have made in the
second quarter in gaining market acceptance to our solution, and the
continued evolution of our product offering" said Shan Ahdoot,
President and Chief Executive Officer of EXO U. "We continue to meet
many potential customers and partners and are beginning to achieve some
solid market traction. A case in point was our announcement, during the
quarter, of a strategic Reseller Partnership with groupVision, a
consulting firm that creates and implements collaborative learning
environments in Spain, the UK, Portugal, and Switzerland. We continue
to hear from the market that our technology solution is unique and
fills a much needed requirement in both the education and enterprise
space. We expect to announce some important milestones in the near
future"
Financial Results
EXO U reported no revenues in the second quarter fiscal 2014, which was
essentially the same as in the equivalent period last year.
Year to date revenue was $73,307, down slightly from the $87,130
recorded in the six months ended September 30, 2012.
Research and Development expenses in the Quarter of $272,673 were higher
than the $53,176 recorded in the second quarter last year due primarily
to the change resulting from expensing R&D versus capitalizing it. In
addition the technical team has been increased to meet the market
needs.
_____________________
Research and Development expenses for the six month period increased
from the $169,053 recorded last year to the $484,385 expensed this
year, for the same reasons as noted above.
Selling , general and administrative expenses for the three months ended
September 30, 2013 were $819,155, an increase of $393,358 from that
spent last year in the same period. The increased sales and marketing
team as well as administration, coupled with the costs of being a
public company, accounted for the increase.
Likewise, SG&A expenses on a six month year to date basis increased from
$771,956 to $1,288,243.
Year to date listing costs are $2,380,504, of which $2,121,935 are
non-cash expenses mainly consisting of equity.
Stock based compensation for the quarter and year to date were $525,324
and $575,676 respectively.
In the quarter ended September 30, 2013, net financial costs were a
credit of $13,074, versus the $189,228 of expense recorded in the same
period last year. On a year to date basis the Company had $41,524 of
expenses in this area versus the $333,142 incurred last year. The major
factor in the difference was last year's accretion of interest expense
on redeemable shares which have now been eliminated.
Adjusted EBITDA was a loss of $1,044,336 in the quarter ended September
30, 2013, compared to a loss of $464,543 in the corresponding period
last year. On a six month year to date basis the EBITDA loss was
$1,606,509 compared to a loss of $831,245 in the same period last year.
An increase in the team, public company costs, and the decision by the
Company to expense versus its previous practice to capitalize R&D were
the major causals of the increase.
As of September 30, 2013 the Company held cash and short term
investments of $2,419,613, an increase of $2,296,254 from the position
held at year end March 31, 2013. The Private Placement which was
completed on June 13, 2013 in connection with the Qualifying
Transaction is the main reason for such an increase and has provided
the Company with liquidity.
Adjusted EBITDA Reconciliation
|
|
Q2 Fiscal 2014
|
Q2 Fiscal 2013
|
YTD Fiscal 2014
|
YTD Fiscal 2014
|
|
|
|
|
|
|
Net loss
|
$
|
(1,610,652)
|
(667,757)
|
(4,697,025)
|
(1,191,489)
|
|
|
|
|
|
|
Financial expenses
|
|
(13,074)
|
189,228
|
41,524
|
333,142
|
|
|
|
|
|
|
Depreciation of
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment
|
|
10,967
|
12,443
|
19,692
|
23,457
|
|
|
|
|
|
|
Amortization intangible assets
|
|
9,508
|
1,543
|
19,016
|
3,085
|
|
|
|
|
|
|
Amortization of deferred
|
|
|
|
|
|
|
|
|
|
|
|
Development costs
|
|
27,016
|
-
|
54,032
|
-
|
|
|
|
|
|
|
EBITDA
|
|
(1,576,234)
|
(464,543)
|
(4,562,689)
|
(831,245)
|
|
|
|
|
|
|
Stock-based compensation
|
|
525,324
|
---
|
575,676
|
---
|
|
|
|
|
|
|
Listing expenses
|
|
6,574
|
---
|
2,380,5042
|
---
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
(1,044,336)
|
(464,543)
|
(1,606,509)
|
(831,245)
|
2 $2,121,935 of this was a non-cash expense.
|
2013 Second Quarter and Year to Date Financial Statements and
Management's Discussion and Analysis
The quarterly and year to date financial statements , notes to the
financial statements and Management's Discussion and Analysis for the
three and six months ended September 30, 2013, are available under the
Corporation's profile on SEDAR at www.sedar.com.
About EXO U
EXO U enables organizations to embrace the consumerization of IT and
simplify "Bring your Own Device" (BYOD) programs by seamlessly
delivering applications across all devices and computing platforms. The
Company's universal application framework delivers a consistent, secure
and compelling user experience for existing and future applications. By
working seamlessly across all devices and platforms, EXO U's
technology-agnostic framework helps enterprises implement BYOD
programs, allows schools to incorporate digital technologies into the
classroom and facilitates increased productivity and knowledge sharing
among both professionals and students. For more information, please
visit http://www.exou.com and follow us on Twitter.
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 29, 2013 available under the Corporation'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."
SOURCE EXO U Inc