UnitedCorp Releases
Q1 2019 Financial
Results as well as Regulatory, Legal and
Operational Highlights
BlockchainDome Heat Station
operations continue to contribute
positive earnings
MIAMI, FL
-- May 17, 2019 -- InvestorsHub
NewsWire -- On May 15, 2019, Miami-based
United American
Corp ("UnitedCorp"
or the
"Company") (OTC:
UAMA) released the financial results
of
its first
quarter ended March 31,
2019. It also provided corporate
updates
regarding regulatory, legal and operational matters.
UnitedCorp reported positive
results for the first quarter of
2019 including revenues of
US $1.4 million, consolidated net
earnings of $388,414 and consolidated EBITDA of
$639,125.
Revenues accrued are exclusively from its
Canadian subsidiary, which owns and operates its
BlockchainDome Heat Stations and also provides technical and
management consulting services.
These results represent the
first complete quarter of BlockchainDome
operations at its current installed
capacity of 4 BlockchainDome Heat Stations.
In February
2019, the Company
also
purchased the
property where the 4 BlockchainDomes are located.
2019 Q1 Highlights
(all
figures in US
dollars)
- Revenue in the quarter
of
$1,423,485 was primarily generated through the BlockchainDome Heat Station
for hosting, management and power and includes $276,628 of
consulting revenue with an operating profit of
$854,684(1),
with dome
operations contributing $578,077 to the operating profit
- Consolidated
net
earnings for the quarter were
$388,414
- Consolidated
EBITDA for the
period was $639,125(2)
- Increase in tangible assets to
$3,887,763
- 5,000 miners
in service at (8.5 megawatts)
(1) Gross profit
is a non-IFRS
measure. Since the Company bills in advance for services
and pays its main
direct costs in arrears, gross profit as a percentage of revenue
may be higher during the growth cycles.
(2) EBITDA is a non-IFRS
measure
Financial
Review
|
3 months ended
|
Annual
year end
|
(US$)
|
|
Mar
31, 2019
|
Dec
31, 2018
|
Total Revenue
|
$
1,423,485
|
$
1,703,259
|
Cost of Revenue
|
568,802
|
911,574
|
Gross Profit
|
854,684
|
791,685
|
General Expenses
|
215,559
|
451,843
|
Financial Expenses
|
42,130
|
37,363
|
Depreciation
|
58,963
|
52,786
|
Foreign Exchange
|
149,618
|
-
|
|
|
|
Net Income
|
388,414
|
249,693
|
EBITDA
|
639,125
|
339,842
|
While the
Company
will continue to develop its BlockchainDome Heat Station business
in 2019 as a primary source of revenue, it will also continue to
develop its business in other strategic areas.
Financial
Statements
The Company's financial
statements are available at www.otcmarkets.com under UnitedCorp's
profile.
TNW
Wireless Spectrum License Deemed Transfer
Approval
On March 21,
2019, the Company announced the
completion of the acquisition of TNW Wireless Inc. ("TNW
Wireless"). The transaction was subject to regulatory approval of
the deemed transfer of ownership to UnitedCorp by Industry Science
and Economic Development Canada ("ISED") under the
Framework Relating to Transfers, Divisions and Subordinate
Licensing of Spectrum Licenses for Commercial Mobile
Spectrum. On April 26, 2019 the
Company received written confirmation from ISED that the deemed
transfer had been approved.
With all regulatory matters
completed, the Company is pleased to announce that TNW Wireless is
now a wholly-owned subsidiary of UnitedCorp. Approval
documentation can
be viewed at:
http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf11505.html
.
Canadian
Radio-television and Telecommunications Commission ("CRTC") Notice
of Consultation: Review of mobile wireless services
On July 3, 2017, TNW Wireless
submitted a Part 1 Application to the CRTC which sought to compel
Bell Mobility Inc. and Telus Communications Inc. to provide TNW
Wireless with wholesale roaming services and to rule that TNW
Wireless' iPCS Smartphone over IP technology was eligible for
mandated wholesale roaming services. On February 28, 2019 the CRTC
issued its Decision 2019-56 on the Application. In
its
decision the CRTC ruled that Bell and Telus were
in fact
required to
provide TNW Wireless with wholesale roaming services,
however
it
determined
that iPCS did not
fit the criteria for mandated wholesale roaming under the current
regulatory framework
On the same day and immediately
following the release of the TNW Wireless Decision,
the CRTC issued a
Notice of Consultation ("NOC") 2019-57 for the review of wireless
services in Canada. Citing the TNW
Wireless 2017 Part 1 Application
and its related
decision as part of the basis for the
consultation, 2019-57 will examine the level of
competition in Canada and review and revise
the
country's regulatory framework for
wireless services.
The Company is
encouraged both by the timing of the NOC and that
the CRTC has already stated that an
appropriate outcome for the proceeding would be to mandate that
national wireless carriers provide national wholesale access to
smaller carriers for what is referred to as
MVNO (or Mobile Virtual Network Operator)
service,
which
is
part of the
requirements to provide iPCS service in Canada.
TNW was deemed to be an
automatic participant in the NOC and as such it submitted its first
intervention to the CRTC on May 15, 2019. The Company has
also requested to appear in person before the CRTC at hearings to
be held beginning January 13, 2020.
The TNW Wireless intervention
can be obtained at http://www.unitedcorp.com/corporate/regulatory/
Decision on
Power Rates for BlockchainDome Heat Station Operations
On June 14,
2018, Hydro-Québec, the
government-owned supplier of electricity in the Province of
Quebec, made an application to the
Quebec Régie de l'énergie (the
"Régie") to fix and potentially
increase electricity tariffs and set conditions of service for
operations related to cryptocurrency mining. Although the
Company does not receive power directly from Hydro-Québec, it does
receive power from an independent electrical cooperative which in
turn purchases power from Hydro-Québec. Hydro-Québec argued
that this was necessary due to the sudden and massive number of
requests for power related to cryptocurrency it received over the previous
year (in the order of several thousand megawatts) and that it could
not meet this demand. UnitedCorp, through its BlockchainDome
Heat Station operation in Quebec, was one of the intervenors at the
hearings of the Régie on this matter.
On April 29,
2019, the Régie rejected
Hydro-Québec's application to increase tariffed rates
for cryptocurrency
operations and grandfathered existing
power contracts for operators. This means that the Company's
contract
for 12.3 megawatts of power will
remain valid for the foreseeable future at its favorable rate and
will allow the Company to expand operations up to this amount under
the existing contract.
The Régie also
mandated a 300
megawatt block of power for cryptocurrency operations which meet
certain economic benefit criteria in order to be eligible for
access to the block. The criteria includes a 10%
environmental evaluation component for heat
recovery, which the Company believes is
a direct result of its intervention at the hearings as no other
intervenor discussed environmental considerations. The Company
believes this factor will be a competitive advantage when seeking
additional power in the future.
With the current
cryptocurrency prices on the rise, the Company has received more
interest in its technology for BlockchainDome Heat Stations and
Data Centers and is currently evaluating various options in these
areas.
CPTAQ
Matter
In April
2018, the Company's then landlord
received a Notice of Infraction from the Commission
de Protection du Territoire Agricole de Quebec ("CPTAQ"), the
provincial body which oversees agricultural land in
Quebec, related to its BlockchainDome
Heat Campus #1. The Notice questioned whether the
BlockchainDome Heat Station was an appropriate use
of
agricultural
land,
as based
on their perception the
BlockchainDome
Heat Station was a non-agricultural commercial operation. On
June 27, 2018, the Company and its legal counsel addressed the
complaint at a hearing of the CPTAQ and stated its position that
the operation was fully compliant with all existing rules and
regulations, as the operation's final
output was for agricultural purposes. Furthermore, the
BlockchainDome Heat Station is consistent with the province's
sustainable development guidelines and policies of encouraging more
local food production.
The matter was then
transferred to an independent provincial administrative tribunal
for further review. Subsequently on March 26,
2019, the
Company, its Counsel and its agricultural experts addressed the
Tribunal Administratif
du Québec (the
"Tribunal") at a hearing on this matter. The Tribunal is an
independent provincial body which is intended to be a non-judicial
arbitrator for matters regarding provincial boards. The Tribunal
has no judicial or injunctive powers and decisions are appealable
by companies and individuals to judicial courts up to and including
the Québec Court of Appeal.
On April 25, 2019 the Company
received notification that the Tribunal had rejected the Company's
position and supported the CPTAQ complaint. The Company and
its Counsel believe that the Tribunal erred both in fact and in law
in rendering its decision and as such on May 15, 2019,
the
Company filed for permission to
appeal the decision to the Quebec Court within the 30 days
prescribed. The filing is available
at:
http://www.unitedcorp.com/wp-content/uploads/Demande-permission-appeler.pdf
The Company is also
reviewing other available administrative options
including an
application to formally approve use of BlockchaingDome
Heat Stations on
the site, as the Tribunal did not
exclude this. Further updates will
be provided in the near future.
United America
Corp versus Bitmain et al.
Further to the litigation
announced on December 6, 2018
against Bitmain, Bitcoin.com, Roger
Ver, Kraken Bitcoin Exchange and
others, Alleging Hijacking of the
Bitcoin Cash Network, the Company has been
successful at serving additional defendants and has also received
permission from the Court to extend the period required to serve
other individual and corporate defendants located
overseas.
iFramed
Patent Infringement
Litigation
The Company is currently
moving to optimize the legal process related to various iFramed
patent infringement suits. It is currently expediting
litigation against Snap Inc. in Canada as well as Facebook/Instagram.
TNW
Networks
On June 30,
2017, the Company announced the
intent to acquire TNW Networks Corp. ("TNW Networks"). The potential
acquisition of TNW Networks' assets is deemed by
Management to support the Company's development
plan, including TNW Wireless and
iFramed. The Company was aware that on November 18, 2016, two of
TNW Networks' clients (the "Petitioners")
filed a Notice of
Intention to make a Proposal pursuant to the Bankruptcy and
Insolvency Act. This led to proceedings under the
Companies' Creditors Arrangement Act (the "Proceedings")
on November 25,
2016.
As a result of
the Proceedings, certain of TNW client relationships and
3rd party
assets, both of which TNW Networks and
the Company
believe were not assets of the
Petitioners, were nevertheless claimed in
the Proceedings by the CCAA Monitor. In two instances during the
course of the Proceedings, the determination of ownership by
the
Monitor was
appealed to the British Columbia Court of Appeal and in both
instances the Court of Appeal ruled unanimously against the
Monitor. On March 18,
2019, a portion of certain
3rd party assets were released by
the Monitor and will be transferred to the Company. The exact list
and value of such assets is currently being
determined.
On April 23,
2019, the British Columbia Court of
Appeal granted yet a third leave to appeal related to determination
of ownership of the balance of
assets in
question. The date for the appeal to be
heard is currently being scheduled.
About United
American Corp
Established in 1992, United
American Corp is a Florida-based development and management company
focusing on telecommunications and information technologies. The
company currently owns telecommunications assets and holds the
rights to manage a portfolio of patents and proprietary technology
in telecommunications, social media and Blockchain technology, and
owns and operates the BlockchainDomes which are designed to provide
heat for agricultural operations using computer equipment in
naturally cooled data centers where efficiency and low-cost
operations are a priority.
About TNW
Wireless Inc.
TNW Wireless is a licensed
wireless operator for wholesale and retail services in
Canada and
a wholly-owned subsidiary of United American Corp. The company
currently holds
25MHz bandwidth tier-2 850 MHz licences and is a registered
wireless carrier. It is licensed to provide communication services
to the Northwest region of Canada and can provide global
communication services through its proprietary iPCS
Smartphone-over-IP technology.
About the
BlockchainDome Heat Station
The UnitedCorp
BlockchainDome Heat Station
was designed to
provide heat for agricultural operations using ASIC
(application-specific integrated circuit chip) mining operations
where efficiency and low-cost operations are a
priority, as well as for more
traditional data center operations. The BlockchainDomes, which
utilize a proprietary passive cooling ground-coupled
heat-exchanger technology, are particularly
suited for situations where rapid cluster deployment is required as
they can be erected and commissioned in a matter of weeks rather
than up to a year using the traditional "Bricks and Mortar"
approach. BlockchainDomes can be configured in a wide range of
sizes to service any type of greenhouse operation.
How BlockchainDomes work can
be seen at: https://www.youtube.com/watch?v=YDmhhaJKHLg
Campus and
Interior Views of UnitedCorp
BlockchainDomes and
Rendering of Adjacent Greenhouses
This news release
contains forward-looking statements that are subject to various
risks and uncertainties. The Company's actual results could differ
materially from those anticipated in such forward-looking
statements as a result of numerous factors that may be beyond the
Company's control. Forward-looking statements are based on the
expectations and opinions of the Company's management on the date
the statements are made, and the Company assumes no obligation to
update forward-looking statements should circumstances in
management's expectations or opinions change.
Source:
United American
Corp
Contact:
Jenna
Trevor-Deutsch
Investor Relations
investorrelations@unitedcorp.com
604 398 5000 ext: 109
United American (CE) (USOTC:UAMA)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
United American (CE) (USOTC:UAMA)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024