/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
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TSX VENTURE EXCHANGE SYMBOL - UI
HIGHLIGHTS
- Closing of a qualifying transaction with a $2,500,000 concurrent private placement on
October 4, 2012;
- Signed agreements with several real estate agencies:
Sutton, RE/MAX Quebec, Via Capitale and Proprio Direct;
- Signature of a reseller agreement with ASTRAL TV Plus, now Bell
Media;
- Signing of a partnership agreement with the APCHQ, the
provincial association of home builders of Quebec;
- Encouraging signs of adoption of our AVU3D®
immersive technology in the real estate market.
MONTREAL,
Jan. 23, 2014 /CNW Telbec/ -
Urbanimmersive Technologies Inc. ("Urbanimmersive Technologies"),
today presented its audited consolidated financial results,
including those of Urbanimmersive Inc. ("Urbanimmersive" and,
collectively with Urbanimmersive Technologies, the "Corporation"),
its wholly owned subsidiary, for the year ended September 30, 2013.
"The 2012-2013 fiscal year was an opportunity
for the Corporation to intensify its efforts on research and
development as well as commercialization of its AVU3D®
immersive technology" said Ghislain
Lemire, President and CEO Urbanimmersive Technologies. "We
are pleased that these efforts resulted in agreements with the main
actors of the real estate market in the province of Quebec. With these agreements, we were able to
set in motion an aggressive sales offensive to create market
adoption of our AVU3D® immersive technology, whose
impact on the revenues of the Corporation should begin to be felt
in the 2013-2014 fiscal year."
"The strategy executed during the 2012-2013
fiscal year enabled the Corporation to acquire around 500 new
clients, for which it has delivered nearly 1,000 immersive visits.
The rapid adoption of AVU3D® immersive technology is
largely related to the "risk-free" sales model which allows
realtors to pay for the AVU3D® immersive visits only if
there is a sale of the property. Therefore we expect recognition of
these revenues in the coming quarters in addition to starting to
market the pay functionalities of the AVU3D® platform.
Furthermore, the Corporation intends to explore the marketing
opportunities of its competitive advantage related to the growth in
the number of users of the AVU3D® platform and its prime
position on the Google search engine."
"In early 2014, the Corporation plans to modify
its "risk-free" offer so that the customer will pay a portion of
the sale price on delivery of the immersive visit. We also intend
to support the local adoption of our technology through promotional
and advertising activities. This advertising strategy will promote
the launch of innovative new products and the complete overhaul of
the AVU3D® platform. The Corporation also plans to
explore different expansion models outside Quebec through agreements with authorized
partners."
QUALIFYING TRANSACTION
On October 4,
2012, Urbanimmersive Technologies announced the closing of
the acquisition of all of the securities of Urbanimmersive and of
its concurrent private placement for aggregate proceeds of
$2,500,000 (the "Offering"). The
acquisition constituted the qualifying transaction (the "Qualifying
Transaction") of Urbanimmersive Technologies pursuant to the
Policy 2.4 of the TSX Venture Exchange Inc. (the "Exchange").
As part of the Qualifying Transaction, Urbanimmersive Technologies
acquired all of the shares and debentures of the Corporation in
exchange for the issuance of an aggregate of 8,311,441 Common
Shares of Urbanimmersive Technologies (the "Common Shares") at a
deemed price of $0.75 per Common
Share for a total consideration of $6,233,580.
The Offering was in the form of the private
placement 3,333,334 Common Shares at $0.75 per share for aggregate proceeds of
$2,500,000. The Offering was
subscribed by accredited investors and other exempt purchasers as
well as James McDonald, Chairman of
the Board of Directors, and Daniel
Robidoux, a Director of the Corporation.
On October 12,
2012, Urbanimmersive Technologies announced that the
Exchange had accepted for filing the Qualifying Transaction and had
issued its final exchange bulletin. As a result, trading in the
Common Shares of Urbanimmersive Technologies Inc. resumed at the
opening of the markets on Monday, October
15, 2012. In addition, the name was changed from UI Capital
Inc. to Urbanimmersive Technologies Inc.
SELECTED FINANCIAL INFORMATION
|
September 30,
2013 |
September 30,
2012 |
|
$ |
$ |
Revenue |
885,886 |
1,012,624 |
Cost of sales |
758,493 |
732,465 |
Gross profit |
127,393 |
280,159 |
Operating expenses |
2,122,312 |
1,300,180 |
Other expenses |
1,314,164 |
185,500 |
Net loss and comprehensive loss |
(3,309,083) |
(1,205,521) |
Assets |
1,210,894 |
1,180,778 |
Liabilities |
759,405 |
3,384,749 |
Equity (negative) |
451,489 |
(2,203,971) |
OPERATING RESULTS
The Corporation's revenues have decreased from
$1,012,624 to $885,886 a decrease of $126,738 or 12.5%. This decrease is mainly due to
a reduction in 3D product revenues due to sales efforts that have
been focused on the deployment of AVU3D® immersive
visits in the real estate market with affiliated real estate
agencies.
The Corporation generated a gross profit of
$127,393 or 14.38% compared to a
$280,159 or 27.66% for the same
period in 2012, a decrease of $152,766 or 13.28%. This decrease in gross margin
is due to the fact that the Corporation had to bear the production
costs of AVU3D® immersive tours while revenue
recognition will only take place if there is the sale of the
property. Without this situation, the Corporation would have
realized a gross margin of 31.65% an increase of 4% compared to
2012.
Operating expenses totalled $2,122,312 compared to $1,300,180 for the same period of 2012, an
increase of $822,132 or 63.2% due to
an increase in selling expenses of $154,763, to an increase in Administrative
expenses of $842,839 and to an
increase in research and development fees of $123,090.
Other expenses totalled $1,314,164 compared to $185,500 for the same period of 2012, an increase
of $1,128,664. This increase is due
to the recognition of a stock listing exchange expense of
$1,181,417, to a loss on amendment of
a convertible debenture of $99,187
and to a reduction in financial expenses of $151,940, due the conversion of the convertible
debentures into common shares. These elements are directly related
to the completion of the Qualifying Transaction of the
Corporation.
QUARTERLY RESULT TRENDS (IN THOUSANDS OF $)
The operating results for each of the last eight
quarters are presented in the following table. Management considers
that the information for each of those quarters was determined in
the same way as for our audited consolidated financial statements
for the year ended September 30,
2013.
|
Results
(Consolidated) |
Results
(Unconsolidated) |
|
2013 |
2012 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
Revenue |
218 |
152 |
179 |
337 |
192 |
251 |
307 |
263 |
Gross profit (loss) |
43 |
(74) |
3 |
155 |
31 |
63 |
108 |
78 |
Operating loss |
(659) |
(614) |
(532) |
(1,504) |
(478) |
(258) |
(205) |
(265) |
Basic and diluted net loss per Common Share |
(0.047) |
(0.040) |
(0.040) |
(0.113) |
(0.098) |
(0.055) |
(0.050) |
(0.057) |
LIQUIDITY, CAPITAL RESOURCES AND SOURCES OF FINANCING
As of September 30,
2013, the Corporation had a cash position of $135,915 and a working capital deficiency of
$188,557 compared to a working
capital deficiency of $2,833,753 as
of September 30, 2012, an improvement
of $2,645,196. This improvement is
primarily due to the completion of the Qualifying Transaction on
October 4, 2012 and to the private
placement for total gross proceeds of $2,375,000, after deduction of subscription
receipts of $275,000 received in
2012.
The Corporation manages its capital structure
and brings about adjustments related to changes in the economic
environment and underlying risks of its assets. To preserve or
modify its capital structure and to carry on the development and
commercialization of technology and fulfill its various financial
obligations, the Corporation may issue additional common shares or
negotiate new loans.
The Corporation has prepared a budget for 2014
using assumptions that management considers reasonable. Achieving
budgeted results depends mainly on the increase of sales,
compliance with the gross operating margin forecast and control of
general and administrative expenses. Management expects to meet its
budget and have sufficient liquidity to fund its operations at
least beyond September 30, 2014
following the private placement of $1,000,000 finalized on December 5, 2013. Although management believes it
has developed action plans to manage liquidity risk and
operational, there is no assurance that these measures will be
successful.
APPOINTMENT OF A VICE-PRESIDENT LEGAL AFFAIRS
The Corporation is pleased to announce the
appointment of Mrs. Laurence
Virtue-Deshaies as Vice-President, Legal Affairs, in
replacement of Mrs. Emmanuelle
Robichaud who has held this position since 2010. The
Corporation wishes to thank Mrs. Robichaud for her contribution in
the management team and wishes her every success in her future
endeavors.
Mrs. Virtue-Deshaies joined the Corporation in
2013. Previously, Mrs. Virtue-Deshaies worked for several years in
the technology and media fields, namely at Moment Factory's legal
and corporate affairs. Mrs. Virtue-Deshaies holds a Bachelor of
Laws (LL.B.) from Université de Montréal and a Bachelor in
Management from Hautes Études Commerciales (B.Gest.). She is a
member of the Quebec Bar.
ABOUT URBANIMMERSIVE
Headquartered in Laval, Quebec, the Corporation is a
leading-edge digital media company that combines its innovative
immersive technology with high quality visual content to offer, in
the real estate online, offline and mobile advertising markets,
digital media visual content immersive solutions. The Corporation
also licenses its full suite of software and technology to channel
partners in other markets. The Corporation currently has
36 employees.
The Corporation is a one stop shop for visual
content digital media in the real estate market. Its customers
consist of residential, commercial and industrial realtors, brokers
and home builders to whom the Corporation offers an innovative and
unique immersive technology which products are utilized for real
estate online, offline and mobile advertising, as well as a large
range of visual content services.
The Corporation's visual content services
include the production of 3D drawings, images and 3D animations,
interactive color changing application and 3D online immersive
environments.
AVU3D®, the Corporation's immersive
multimedia technology, produces 3D immersive environments of real
and future building assets through which vendors and customers can
interact online, either with one another or with objects present in
the virtual environment, as if they were fully immersed in it. The
Corporation's comprehensive suite of software related to its
AVU3D® immersive technology enables its partners and
advertisers to add elements such as hotspots containing links,
videos, and gaming elements. It allows for an engaging immersive
user experience therefore providing a better multimedia and
interactive experience for internet users.
The Corporation has a limited direct sales
force; however, it reaches the real estate market through
specialized resellers including architectural photographers,
virtual tour providers, web site producers, architects and
marketing communication agencies.
The Corporation's immersive technology is also
applied to other markets such as, but not limited to, serious
games, advergames, security, building and facility management and
business advertising. The Corporation reaches other market segments
through channel partners with which it enters into license
agreements enabling them to integrate Urbanimmersive's immersive
multimedia technology into their business strategy as a value added
offer to their customers.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements made in this press release
that are not historical facts are forward-looking statements 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 the Corporation's MD&A dated January 23, 2014 and filed with the Canadian
securities commissions. The forward-looking statements contained in
this press release represent our expectations as of the date
hereof. We disclaim any intention and assume no obligation to
update or revise any forward-looking statements.
*
* *
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United States or
to any U.S. Persons. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended, or the securities laws of any state of the United States of America and may not be
offered or sold within the United States
of America or its territories or possessions unless pursuant
to an exception therefrom.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Urbanimmersive Technologies