MONTREAL, Feb. 28, 2014 /CNW Telbec/ - EXO U Inc. ("EXO U" or the
"Corporation") a software provider that develops cross platform
operating system, 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 nine months ended December 31, 2013. All amounts are stated in
Canadian dollars, unless otherwise noted.
FINANCIAL HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31,
2013 AND 2012.
|
Q3 Fiscal 2014
|
|
Q3 Fiscal 2013
|
|
YTD Fiscal 2014
|
|
YTD Fiscal 2013
|
Revenue
|
$
|
-
|
|
$
|
108,241
|
|
$
|
73,307
|
|
$
|
195,371
|
Adjusted negative EBITDA 1
|
$
|
(979,724)
|
|
$
|
(452,680)
|
|
$
|
(2,586,233)
|
|
$
|
(1,283,925)
|
Net loss
|
$
|
(1,333,138)
|
|
$
|
(675,001)
|
|
$
|
(6,030,163)
|
|
$
|
(1,865,930)
|
Basic loss per share
|
$
|
(0.040)
|
|
$
|
(0.032)
|
|
$
|
(0.201)
|
|
$
|
(0.088)
|
1.
|
Adjusted EBITDA as defined by the Corporation 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.
|
Q3 2013 and Subsequent
-On February 12, 2014, the corporation announced that it had entered
into an agreement with Mackie Research Capital Corporation pursuant to
which a syndicate of underwriters will purchase, on a bought-deal
private placement basis, a financing with gross proceeds exceeding $5
million.
-On February 10, 2014, the Corporation 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 December 12, 2013, the Corporation entered into a 3 year lease for
its new office in Palo Alto, California. This establishes a base for
the Company in Silicon Valley, an area rich in technical resources and
business activity.
"We continue to make good progress in the evolution of our Company and
product offering" said Shan Ahdoot, President and Chief Executive
Officer of EXO U. "External validation of our product offering is
evidenced by the relationship we have established with CGI, which is
the fifth largest independent information technology and business
process services firm in the world. We are also very pleased with the
private bought -deal financing that has been announced. These funds
will allow us to accelerate our business and provide the necessary
capital to achieve our growth objectives. Finally, the establishment of
our new office in Palo Alto will let us tap into the resources in that
area, and establish a base for our growing business activity in the
United States"
Financial Results
EXO U had no revenue in the third quarter fiscal 2014 versus the
$108,241 reported in the same period last year. Last year the company
recorded revenue for a digital classroom in Panama.
Year to date revenue is $73,307, is down from the $195,371 recorded in
the nine months ended December 31, 2012.
Research and Development expense in the Quarter of $306,929 were higher
than the $47,548 recorded in the third quarter last year primarily due
to the change of expensing R&D as incurred, versus capitalizing it, as
well as the increase in the team driving the R&D effort.
R&D expense for the nine month period increased from the $216,600 to
$791,314 for the same reasons as noted above.
Selling, general, and administrative expenses for the three months ended
December 31,2013 were $719,566, an increase of $324,272 from that
spent last year in the same period. Increases in sales, marketing and
business development expense coupled with the administrative and
external costs of being a public company account for the increase.
Likewise, SG&A expenses for the nine month period increased from
$1,167,249 to $2,007,809.
Year to date listing expenses 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 $281,191
and $856,867 respectively.
In the quarter ended December 31, 2013, net financial costs were
$25,452, versus the $$209,483 recorded in the same period last year.
Year to date expenses were $$69,976 versus the $542,625 incurred last
year. The major factor in the difference was last year's accretion of
interest expense on redeemable shares which have now been redeemed..
Adjusted EBITDA was a loss of $979,724 in the quarter ended December 31,
2013, compared to a loss of $452,680 in the corresponding period last
year. For the nine month period the Adjusted EBITDA loss was $2,586,233
compared to a loss of $1,283,925 in the same period last year. An
increase in staffing, public company costs, and the decision of the
Company to expense versus capitalizing R&D were the major causals of
the increase.
As of December 31, 2013, the Company held cash of $1,275,810, an
increase from the $123,359 position at year end March 31, 2013. The
proceeds from a private placement which was completed on June 13, 2013
less cash usage since then is the main reason for the increase. It is
expected that further liquidity will be provided by the upcoming
bought-deal private placement expected to close in March 2014 as well
as the impact of warrant exercises.
The quarterly and year to date financial statements and related notes
and Management's Discussion and Analysis for the three and nine months
ended December 31, 2013 and 2012, are available under the Corporation's
profile on SEDAR at www.sedar.com.
About EXO U
EXO U (TSX-V:EXO) enables businesses and educational organizations to
securely manage information and empower people to communicate their
best ideas through application interoperability across desktop and
mobile computing environments. The software simplifies the management
of the entire application lifecycle, helping clients manage enterprise
mobility and BYOD initiatives, ensure the security and privacy of
information, increase productivity, and reduce the total cost of
ownership for existing and future IT investments. The technology
agnostic framework offers end users a unified collaborative workspace
with a unique, safe and attractive experience for current and future
digital content and applications. 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 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.
ANNEX
Adjusted EBITDA
|
Q3 Fiscal 2014
|
|
Q3 Fiscal 2013
|
|
YTD Fiscal 2014
|
|
YTD Fiscal 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(1,333,138)
|
|
$
|
(675,001)
|
|
$
|
(6,030,163)
|
|
$
|
(1,865,930)
|
|
|
|
|
|
|
|
|
Financials expenses
|
$
|
25,452
|
|
$
|
209,483
|
|
$
|
66,976
|
|
$
|
542,625
|
Depreciation of property & equipment
|
$
|
10,247
|
|
$
|
11,297
|
|
$
|
30,011
|
|
$
|
34,754
|
Amortization Intangible assets
|
$
|
9,507
|
|
$
|
1,541
|
|
$
|
28,523
|
|
$
|
4,626
|
Amortization of deferred development cost
|
$
|
27,017
|
|
$
|
-
|
|
$
|
81,049
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
(1,260,915)
|
|
$
|
(452,680)
|
|
$
|
(5,823,604)
|
|
$
|
(1,283,925)
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based Compensation
|
$
|
281,191
|
|
$
|
-
|
|
$
|
856,867
|
|
$
|
-
|
Listing expenses
|
$
|
-
|
|
$
|
-
|
|
$
|
2,380,5042
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
(979,724)
|
|
$
|
(452,680)
|
|
$
|
(2,586,233)
|
|
$
|
(1,283,925)
|
1.
|
$2,121,935 of this was a non-cash expense.
|
SOURCE EXO U Inc