EQ Inc. Reports First Quarter Results
Toronto, Ontario (FSCwire) - EQ Inc. (TSXV: EQ) (“EQ Works”), a leader in audience targeting
for mobile, social, video, and display advertising today announced its financial results for the first quarter ended March 31,
2016.
Total revenue from operations for the quarter, which ended on March 31, 2016, was approximately $1 million, an increase of 12%
from the fourth quarter of 2015 and an improvement of 4% compared with the $0.9 million recorded in the same period of 2015.
The adjusted EBITDA loss for the quarter was approximately $0.3 million, an improvement of 36% from the fourth quarter of 2015
and an improvement of 52% over the same period of 2015.
Non-IFRS Financial Measures
We measure the success of our strategies and performance based on Adjusted EBITDA, which is outlined and reconciled with net
income (loss) in the section entitled “Reconciliation of Net Loss for the period to Adjusted EBITDA” in the MD&A. The Company
defines Adjusted EBITDA as net income (loss) from operations before; (a) depreciation of property and equipment and amortization
of domain properties and other intangible assets; (b) share-based payments, (c) restructuring, (d) impairment of goodwill and
domain properties and other intangible assets, (e) Income tax expense and recovery, and (f) finance income and costs, net.
Management uses Adjusted EBITDA as a measure of the Company's operating performance because it provides information related to
the Company's ability to provide operating cash flows for working capital requirements, capital expenditures, and potential
acquisitions. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the
overall operating performance of companies in its industry.
The non-IFRS financial measure is used in addition to and in conjunction with results presented in the Company’s
consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS
financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their
entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be
possible to compare these financial measures with other companies' non-IFRS financial measures having the same or similar names.
In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion
of these items from the Company's non-IFRS measures should not be construed as an inference that these costs are unusual,
infrequent or non-recurring.
The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:
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Adjusted EBITDA for the three months ended March 31, 2016 and 2015
|
|
|
(In thousands of Canadian dollars)
|
2016
|
2015
|
|
|
|
|
Net loss
|
(142)
|
(795)
|
|
Add:
|
|
|
|
Finance (income) costs, net
|
(6)
|
36
|
|
Depreciation of property and equipment
|
4
|
42
|
|
Amortization of domain properties and other intangible assets
|
30
|
28
|
|
Share-based payments
|
-
|
5
|
|
Gain on derivative liability - warrants
|
(215)
|
-
|
|
|
|
|
Adjusted EBITDA
|
(329)
|
(684)
|
About EQ Works
EQ Works (www.eqworks.com) provides a smarter way to target customers. The Company uses
its real-time technology and advanced analytics to detect the actionable data that boosts performance for all web, mobile, social
and video initiatives. EQ Works balances the many components that comprise the complex advertising ecosystem and establishes
equilibrium for reaching the right audience at the right time through any web or mobile device.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain forward-looking statements that are based on management’s current expectations and are subject
to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or
implied by such forward-looking statements. EQ Inc. is under no obligation to update any forward-looking statements
contained herein should material facts change due to new information, future events or otherwise.
EQ Inc.
1255 Bay Street, Suite 400| Toronto, Ontario |M5R 2A9
p: 416.597.8889 f: 416.597.2345
press@eqworks.com
www.eqworks.com
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EQ Inc.
|
|
|
|
|
Unaudited Condensed Consolidated Interim Statements of Financial Position
|
|
(In thousands of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
December 31, 2015
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash
|
|
$
104
|
$
115
|
|
Accounts receivable
|
|
632
|
677
|
|
Other current assets
|
|
241
|
202
|
|
|
|
|
|
|
977
|
994
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
Investment
|
|
-
|
251
|
|
Property and equipment
|
|
11
|
16
|
|
Domain properties and other intangible assets
|
|
198
|
242
|
|
|
|
|
|
|
209
|
509
|
|
|
|
|
|
Total assets
|
|
$
1,186
|
$
1,503
|
|
|
|
|
|
|
|
|
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Liabilities and Shareholders' Deficiency
|
|
|
|
|
|
|
|
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Current liabilities:
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
2,095
|
$
2,050
|
|
Deferred lease inducement
|
|
20
|
20
|
|
Loans and borrowings
|
|
1,366
|
1,323
|
|
Derivative liability - warrants
|
|
44
|
259
|
|
Deferred revenue
|
|
13
|
22
|
|
|
3,538
|
3,674
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
Deferred lease inducement
|
|
57
|
63
|
|
|
|
|
|
|
57
|
63
|
|
|
|
|
|
|
|
|
|
Shareholders' deficiency
|
|
(2,409)
|
(2,234)
|
|
|
|
|
|
Total liabilities and Shareholders' deficiency
|
|
$
1,186
|
$
1,503
|
|
EQ Inc.
|
|
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|
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Unaudited Condensed Consolidated Interim Statements of Loss and Comprehensive
Loss
|
|
(In thousands of Canadian dollars, except per share amounts)
|
|
|
|
|
Three months ended March 31, 2016 and 2015
|
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|
|
|
|
|
|
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2016
|
2015
|
|
|
|
|
|
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Revenue
|
|
$
954
|
$
921
|
|
|
|
|
|
|
Expenses:
|
|
|
|
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Publishing cost
|
|
481
|
518
|
|
Employee compensation and benefits
|
|
403
|
581
|
|
Other operating expenses
|
|
399
|
511
|
|
Depreciation of property and equipment
|
|
4
|
42
|
|
Amortization of domain properties and other intangible assets
|
|
30
|
28
|
|
|
|
1,317
|
1,680
|
|
|
|
|
|
|
Loss from operations
|
|
(363)
|
(759)
|
|
|
|
|
|
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Finance income
|
|
201
|
4
|
|
Gain on derivative liability - warrants
|
|
215
|
-
|
|
Finance costs
|
|
(195)
|
(40)
|
|
|
|
|
|
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Loss for the period
|
|
(142)
|
(795)
|
|
|
|
|
|
|
|
|
|
|
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Other comprehensive income (loss), net of tax:
|
|
|
|
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Items that maybe reclassified to net income (loss)
|
|
|
|
|
Amount reclassified to income
|
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(201)
|
-
|
|
Foreign currency translation
|
|
|
|
|
adjustments to equity
|
|
168
|
(18)
|
|
|
|
|
|
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Other comprehensive loss, net of tax
|
|
(33)
|
(18)
|
|
|
|
|
|
|
|
|
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Comprehensive loss
|
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(175)
|
(813)
|
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Loss per share:
|
|
|
|
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Basic and diluted
|
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(0.01)
|
(0.05)
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EQ Inc.
|
|
|
|
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Unaudited Condensed Consolidated Interim Statements of Cash Flows
|
|
|
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(In thousands of Canadian dollars)
|
|
|
|
Three months ended March 31, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
2015
|
|
|
|
|
|
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Cash flows from operating activities:
|
|
|
|
Net loss
|
(142)
|
(795)
|
|
Adjustments to reconcile net loss to net cash flows
|
|
|
|
from operating activities:
|
|
|
|
|
Depreciation of property and equipment
|
4
|
42
|
|
|
Amortization of domain properties and other intangible assets
|
30
|
28
|
|
|
Amortization of deferred lease inducement
|
(5)
|
(5)
|
|
|
Gain on derivative liability - warrants
|
(215)
|
-
|
|
|
Share-based payments
|
-
|
5
|
|
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Unrealized foreign exchange (gain) loss
|
(5)
|
29
|
|
|
Finance (income) costs, net
|
(21)
|
7
|
|
|
Gain on sale of available-for-sale investment
|
(201)
|
-
|
|
Change in non-cash operating working capital
|
333
|
79
|
|
Net cash used in operating activities
|
(222)
|
(610)
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
Repayment of finance lease
|
-
|
(24)
|
|
Repayment of term loan
|
(44)
|
-
|
|
Promissory notes
|
-
|
700
|
|
Interest paid
|
(1)
|
(12)
|
|
Net cash from (used) in financing activities
|
(45)
|
664
|
|
|
|
|
|
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Cash flows from investing activities:
|
|
|
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Interest income received
|
-
|
4
|
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Net proceeds from disposal of available-for-sale investment
|
251
|
-
|
|
Net cash from investing activities
|
251
|
4
|
|
|
|
|
|
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Increase (decrease) in cash
|
(16)
|
58
|
|
|
|
|
|
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Foreign exchange gain (loss) on cash held in foreign currency
|
5
|
(29)
|
|
|
|
|
|
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Cash, beginning of period
|
115
|
311
|
|
|
|
|
|
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Cash, end of the period
|
$
104
|
$
340
|
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To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/EQInc05272016.pdf
Source: EQ Inc. (TSX Venture:EQ)
http://www.eqworks.com/
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