TORONTO, Nov. 29, 2023 (GLOBE NEWSWIRE) -- ARHT Media Inc. ("ARHT" or "the Company") (TSXV:ART), (OTCQB:ARHTF) the global leader in the development, production, and distribution of high-quality, low latency hologram and digital content, today announced its financial results for the third quarter ended September 30, 2023.
Q3 2023 Financial Update
- Revenue for Q3 2023 was $1.4M compared to $2.0M for Q3 2022. The decrease reflects our strategic shift to product sales from event rentals, which has a longer sales cycle but drives higher customer lifetime value and overall revenue. In addition, several customer sales agreements were pushed from Q3 into Q4 of 2023.
- Gross Margin increased to 57% in Q3 2023 vs. 51% in Q3 2022.
- Q3 2023 Adjusted EBITDA loss of - $1.8M vs -$1.4M in Q3 2022.
- Cash as of Sep 30, 2023 was $0.5M as compared to $0.5M on June 30, 2023.
“During the third quarter, ARHT Media achieved a number of important milestones that have positioned the Company as the state-of-the-art holographic organization serving large scale global enterprise clients,” stated ARHT Media CEO, Larry O’Reilly. “We are already seeing multi-unit orders from these global enterprise clients and channel partners. I am particularly proud of the development and launch of the ARHT 2.0 operating system, as well as the ARHT SAAS-based holographic network and supporting NOC technical support – the only one of its kind in the industry. The ARHT team is very excited about the growth we are seeing in this very dynamic industry as it continues to mature.”
“While third quarter financial results were below our expectations, I am optimistic about the performance of the company going forward and we expect revenues to end 2024 on a strong note.” Mr. O’Reilly commented.
Q3 2023 Business Updates
- In July 2023, ARHT began to roll out the ARHT 2.0 ISO software platform, the world’s most advanced holographic software platform. This system was designed to increase ease of use, improve reliability, and provide scalability to service large scale global clients. Featuring AE Quick Connect, AE Live Advance Mode, AE CMS, AE RMS, AE Analytics and AE Kiosk – backed by the Azure Cloud and the only 24/7 holographic NOC – this new platform is designed for enterprise clients and has unlimited scale.
- In July 2023, the Company (i) signed its first CAPSULE Subscription agreement with Paradise Lagardère, one of the world’s largest travel retailers, (ii) had CAPSULE event activations with a leading luxury brand in New York, Tokyo, and Shanghai, and (iii) was featured at the 3M Open in Minneapolis.
- In August 2023, the Company successfully closed a private placement of secured subordinated debentures of approximately $2.0 million. The majority of which was subscribed by management, directors, and insiders.
- In August 2023, ARHT’s technology was featured on the main stage in Panama City for the 400,000 member IEEE Global Conference and had its first long-term installation at a major convention center. ARHT also expanded its channel sales network with L’Antenne in Paris, Newtonlab Space in Barcelona, and Africa Union Technologies in Johannesburg.
- In September 2023, the Company announced the appointment of Jack Bensimon, a recognized leader in the world of advertising, to its board of directors.
- In September 2023, the Company received CE, CB, UL, CSA and additional country specific certifications for its CAPSULE hologram display allowing it to be sold in an extensive list of locations worldwide.
Q3 2023 Subsequent Events
- The Company installed its CAPSULE holographic display in an experience center at the headquarters of one of the largest companies in India, and at airports in Charlotte, NC, and Toronto, ON, and was featured at several events including a global oil and gas company in India, one of the largest banks in Europe and with Amazon at TwitchCon in Las Vegas.
About ARHT
ARHT is a pioneer and the global leader in live and pre-recorded hologram technology. Thanks to its patented end-to-end technology, executives, medical experts, educators, entertainers, and thought leaders can travel at the speed of light to any destination and brands and retailers can engage their clients with cutting edge 3D interactive content.
ARHT was founded in 2014 and is publicly traded on the TSX Venture Exchange. ARHT has offices in North America, Europe and Asia and operates from its own studios in locations from Toronto to Singapore, as well as a large network of partner studios in every region.
Connect with ARHT:
LinkedIn: https://www.linkedin.com/company/arht-tech
Instagram: https://www.instagram.com/arht.tech
Facebook: https://www.facebook.com/arht.tech
Twitter: https://twitter.com/arht_tech
Youtube: https://www.youtube.com/@arht-tech
For more information, please visit www.arht.tech/about/investors or www.arht.tech.
Alternatively, email us directly at info@arht.tech.
ARHT trades under the symbol “ART” on the TSX Venture Exchange.
Press Inquiries:
Kristen Spence
kspence@arht.tech
ARHT
Hanna Ayyad
Chief Financial Officer
+1 (416)-782-8042 (head office)
This press release may contain “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the intention to exercise convertible securities of the Company; disclosure related to the Company’s sales funnel; the Company’s technology; the potential uses for the Company’s technology; the future planned events using the Company’s technology; the future success of the Company; the ability of the Company to monetize the ARHT Media Inc. technology; the development of the Company's technology; and interest from parties in ARHT's products. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic and competitive uncertainties; regulatory risks; risks inherent in technology operations; and other risks of the technology industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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