Highlights for the Three and nine Months Ended
- Revenues of
US$1,207,400 andUS$4,043,054 , respectively, on a combined basis for the three and nine months endedMarch 31, 2021 , from continuing and discontinued operations(1). - Recolor recognized revenue of
US$1,081,802 andUS$3,527,507 , respectively, for the three and nine months endedMarch 31, 2021 ; with trailing twelve-month revenue ofUS$4,635,529 . Recolor revenue was classified as part of the discontinued operations(1). - The Company continues its efforts to secure a purchaser for Recolor.
- The production and development of Kuuhubb’s upcoming new flagship product Tiles & Tales has progressed well during this time period and is planned for commercial launch later this calendar year.
CEO’s Message:
Financial Results for the Three and Nine Months Ended
- The Company generated a total of
US$1,207,400 andUS$4,043,054 , respectively, combined revenues for the three and nine months endedMarch 31, 2021 , from continuing and discontinued operations(1). - The Company recognized revenue of
US$125,598 andUS$515,547 , respectively, for the three and nine months endedMarch 31, 2021 from its continuing operations. This revenue was generated mainly from the subscriptions to, in-application sale of virtual goods from its “My Hospital” game and related advertising revenue. Recolor Oy recognized revenue ofUS$1,081,802 andUS$3,527,507 , respectively, for the three and nine months endedMarch 31, 2021 . Recolor revenue was classified as part of the discontinued operations(1).- The Company incurred cost of sales of
US$141,712 andUS$376,088 , respectively, during the three and nine months endedMarch 31, 2021 in its continuing operations. The cost of sales is predominantly related to the application marketplace (such asApple App Store and Google Play) fees and other third-party direct costs. - The Company incurred consulting and professional fees of
US$192,178 andUS$594,051 , respectively, during the three and nine months endedMarch 31, 2021 . These fees were related to Kuuhubb’s audit fees, general legal counsel and other professional services. - The Company’s subsidiary
Recolor Oy showed EBITDA ofUS$396,032 for the three months endedMarch 31, 2021 by adjusting the net income before tax from discontinued operations ofUS$389,638 with the following items: - Add back of:
- non-cash depreciation and amortization of
US$1,341 ; - net interest and accretion expenses of
US$5,053 ;
- non-cash depreciation and amortization of
- The Company’s subsidiary
Recolor Oy showed EBITDA ofUS$409,564 for the nine months endedMarch 31, 2021 by adjusting the net income before tax from discontinued operations ofUS$393,243 with the following items: - Add back of:
- non-cash depreciation and amortization of
US$3,968 ; - net interest and accretion expenses of
US$12,353 ;
- non-cash depreciation and amortization of
- On a combined basis, the Company showed EBITDA of negative
US$465,992 for the three months endedMarch 31, 2021 by adjusting the combined net loss before tax ofUS$781,412 with the following items: - Add back of:
- non-cash depreciation and amortization of
US$5,947 ; - non-cash share-based compensation of
US$102,334 ; - net interest and accretion expenses of
US$417,795 ;
- non-cash depreciation and amortization of
- and deduct:
- non-cash fair value change of loan receivable from Valiance UG of
US$6,946 ; - the fair value change of derivative liability of
US$424 ; - foreign exchange gain of
US$203,286
- non-cash fair value change of loan receivable from Valiance UG of
- On a combined basis, the Company showed EBITDA of negative
US$2,135,512 for the nine months endedMarch 31, 2021 by adjusting the combined net loss before tax ofUS$3,227,650 with the following items: - Add back of:
- non-cash depreciation and amortization of
US$21,142 ; - non-cash share-based compensation of
US$373,138 ; - net interest and accretion expenses of
US$944,589 ;
- non-cash depreciation and amortization of
- and deduct:
- non-cash fair value change of loan receivable from Valiance UG of
US$91,712 ; - the fair value change of derivative liability of
US$24,226 ; - foreign exchange gain of
US$130,793
- non-cash fair value change of loan receivable from Valiance UG of
(1) Classification of
As part of the efforts to meet the Company’s obligations and build growth, the Company announced it is exploring multiple strategic alternatives, including the divestiture of Company-owned assets such as shares of
Exercise of Warrants and Private Placement:
In
In
Exploration of Strategic Alternatives to Enhance Shareholder Value
On
The Company continues its efforts to secure a purchaser for Recolor and is in discussion with potential buyers.
EBITDA - Non-IFRS Measure
EBITDA is intended to provide additional information to investors and analysts. We use EBITDA to evaluate the performance of our businesses as they reflect their ongoing profitability. We believe certain investors and analysts use adjusted EBITDA to measure a company’s ability to service debt and to meet other payment obligations or as a common measurement to value companies in the technology industry. We believe that certain investors and analysts also use EBITDA to evaluate the performance of our business. The Company calculated EBITDA as set out on page 2 and 3 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. Therefore, the term EBITDA is unlikely to be comparable to similar measures presented by other issuers.
About
Cautionary Note Concerning Forward-Looking Information
This press release contains forward-looking information, including regarding the potential sale of Recolor OY and the planned launch of Tiles & Tales. 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; the ability of the Company to complete the sale of Recolor OY on terms which are economic or at all; the ability of the Company to complete the commercial development of its products; 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
Neither
For further information, please contact:
jouni@kuuhubb.com
Office: +358 40 590 0919
Investor Relations
bill@kuuhubb.com
Office: +1 (416) 479-9547
Source:
2021 GlobeNewswire, Inc., source