Toronto, Ontario--(Newsfile Corp. - May 30, 2023) - Kuuhubb Inc. (TSXV: KUU) ("Kuuhubb" or the "Company"), a mobile game development and publishing company focused on providing the female audience with creative interactive gaming experiences, has announced that it has released its unaudited financial results for the financial Q3 2023. The results have been filed with the Canadian Securities Administrators and are now available on SEDAR.
Unaudited Financial Results for Financial Q3 2023 (ended March 31, 2023)
- The Company generated a total of US$654,717 and $2,026,968 revenues for the three and nine months ended March 31, 2023.
- The Company incurred cost of sales of US$234,644 and $661,074 for the three and nine months ended March 31, 2023. The cost of sales is predominantly related to the application marketplace (such as Apple App Store and Google Play) fees and other third-party direct costs.
- The Company incurred consulting and professional fees of US$42,999 and $583,613 for the three and nine months ended March 31, 2023. These fees were related to Kuuhubb's audit fees, general legal counsel and other professional services.
- The Company recorded a net loss of $541,501 and $2,132,909 for the three and nine months ended March 31, 2023.
- The Company's three months ended March 31, 2023 EBITDA is negative US$169,432 by adjusting the net loss before income taxes of $541,501 with the following items:
Add back of:
- non-cash depreciation and amortization of US$4,326;
- non-cash share-based compensation of US$18,950;
- net interest and accretion expenses of US$165,525;
- Foreign exchange loss of US$183,268
- The Company's nine months ended March 31, 2023 EBITDA is negative US$1,001,539 by adjusting the net loss before income taxes of $2,132,809 with the following items:
Add back of:
- non-cash depreciation and amortization of US$11,633;
- non-cash share-based compensation of US$153,257;
- net interest and accretion expenses of US$372,026;
- Foreign exchange loss of US$424,922
- As at March 1, 2023, the Company had 64,458,043 issued and outstanding common shares (2,200,000 from warrant exercise was not yet issued) and 8,125,000 stock options.
Conditional Amendment to the 2018 Convertible Debenture
On March 24, 2023, an agreement was reached between the Company and the creditor of the €2,000,000 private placement financing closed in November 2018, resulting in a conditional amendment to the loan agreement. As per the terms of this amendment, the loan will now mature on September 1, 2025, with an adjusted interest rate of 9% per annum, payable on a monthly basis. The conversion price has also been revised to C$0.50 per share. The Company has the option to convert the loan, subject to the condition that the volume weighted average price of the shares exceeds C$0.50 per share for a continuous period of 30 days.
The effectiveness of the aforementioned amendment is contingent upon the payment of certain outstanding amounts. Specifically, a payment of €165,000 is required to cover unpaid arrear interest, along with an additional payment of €12,233 representing interest accrued between November 8, 2021, and March 15, 2023, at an annual rate of 5.5%. Furthermore, an interest rate of 9% will apply to the €165,000 unpaid arrear interest from March 16, 2023, until the conditional payments are made.
As of the current reporting date, these conditional payments remain outstanding, and any necessary regulatory approvals have not yet been obtained. Consequently, the loan is still considered to be in default and will only be adjusted in accordance with the aforementioned amendment once the conditions have been fulfilled and approval has been obtained from the relevant regulatory bodies.
Additional Financial Details & Announcements (Subsequent to March 31, 2023):
Subsequent to the period ended March 31, 2023, the Company received the following additional financing and made the following announcements.
Private Placement
The Company closed private placements subsequent to the period end with existing shareholders of the Company. The Company issued €130,000 debentures with 2-year maturity at annual 12% interest. The loan is unsecured and has a mandatory conversion feature where upon conversion the debt holder would become a significant shareholder of Kuuhubb AG upon maturity. The conversion is subject to certain conditions, events, and regulatory approvals.
EBITDA - Non-IFRS Measure
EBITDA is intended to provide additional information to investors and analysts. The Company calculated EBITDA as set out on page 1 of this press release. EBITDA does not have any standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate EBITDA differently.
About Kuuhubb
Kuuhubb is a publicly listed mobile game development and publishing company, targeting the female audience with bespoke mobile experiences. Our Mission is to become a top player in the female mobile game space. We believe in empowering women by creating games and apps that will have our female audience relax, express and entertain themselves every day. Through our games and partnerships with select developers, we explore new lifestyle trends that can be converted into games and apps which will bring value to our users, employees, and shareholders. Headquartered in Helsinki, Finland, Kuuhubb is targeting global audience with a strong focus on U.S. and Asian markets.
For further information, please contact:
Bill Mitoulas
Investor Relations
bill@kuuhubb.com
Office: +1 (416) 479-9547
Cautionary Note Concerning Forward-Looking Information
This press release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to future revenue and development, growth of the Company's business) are forward looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other thing:, risks related to the growth strategy of the Company; the possibility that results from the Company's growth plans will not be consistent with the Company's expectations; the early stage of the Company's development; competition from companies in a number of industries; the ability of the Company to manage expansion and integrate acquisitions into its business, future business development of the Company, including the ability to complete the sale of Recolor OY and the Codecacao Acquisition on terms which are economic or at all; the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on its business segments, capital market conditions, restrictions on labour and international travel and supply chains; and the other risks disclosed under the heading "Risk Factors" in the Company's management discussion and analysis for the twelve months ended June 30, 2020 filed on SEDAR at www.sedar.com. Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/168049
