OOOOO Entertainment Commerce Ltd. Reports Year End Fiscal 2021 Financial Results
February 28 2022 - 8:00PM
OOOOO Entertainment Commerce Limited (
TSXV: OOOO OTCQB:
OOOOF) announces that it has released its financial
results for the year ended October 31, 2021. All amounts are in
Canadian Dollars unless otherwise noted.
Financial Highlights
- The Company
generated $91,063 of revenue for the year ended October 31, 2021 as
compared to $nil for the period from incorporation on March 19,
2020 to October 31, 2020. $82,877 or 91% of the revenue was
generated in the fourth quarter of fiscal year 2021 since the
Company's focus since incorporation has been on the continuous
development of its video commerce technology platform. During the
fiscal year 2021, the Company entered into a number of commercial
partnerships by onboarding companies to its platform, including B2W
– Companhia Digital, JD Sports Fashion plc., TikTok Information
Technologies UK Limited and others listed in the Company's
management's discussion and analysis for the year ended October 31,
2021. The Company also expects to launch a web-based software
development kit ("SDK") in March 2022. The Company expects that
these, and other new partnerships and license agreements will help
drive revenue growth in subsequent periods.
- Operating expenses
were $13.3 million for the year ended October 31, 2021 as compared
to $0.9 million for the period from incorporation on March 19, 2020
to October 31, 2020. The increase in operating expenses reflects
increased sales and marketing expenses as well as general and
administrative expenses to support business development following
closing of the reverse takeover transaction with Evermount Ventures
Inc. on July 19, 2021. Operating expenses also included an
impairment loss on intangible assets of $3.2 million. The recorded
impairment will be reviewed annually and is subject to recovery if
and when certain conditions are met pursuant to the accounting
standards the Company has adopted. The impairment recognized in the
consolidated financial statements does not in any way reflect
management's view on the strength of its intangible assets.
- For the year ended
October 31, 2021, the Company's net loss was $17.1 million as
compared to a net loss of $0.9 million for the corresponding period
of 2020. The increase in net loss for the year ended October 31,
2021 was primarily due to increased operating expenses and a
one-time non-cash listing expense of $3.6 million.
- Basic and diluted
net loss per share was $0.76 for the year ended October 30, 2021
compared to $74.77 for the prior period.
- As of October 31,
2021, the Company had cash and cash equivalent of $7.4 million,
representing an increase of $7.3 million as compared to the cash
balance as at October 31, 2020.
The OOOOO technology platform consists of
several key components, namely the iOS and Android apps and three
(3) back-end systems, the merchant center, creator center and
operation center. The Company's platform enables video commerce
with multiple stakeholders to co-exist in a single platforms and
facilitates activity between commerce companies, creators and
customers.
Since the Company was founded in March 2020, the
OOOOO technology development team has constantly iterated the
platform based on user feedback and application and platform usage
behaviour. Additionally, the Company has stress tested the
technology with large retail partners including The Hut Group and
Boohoo Group.
As a result of extensive development and testing
with real clients and customers in the United Kingdom, the Company
is now in a position to license its technology in other markets at
speed. Our technology development team has also created the ability
to add multiple languages and currencies in order to increase the
usage of the platform internationally.
The Company is also developing a lighter service
offering in the form of its SDK that will allow companies to
embrace video commerce through their own websites and
applications.
While the development costs for the Company's
technology and platform have been extensive and taken two years of
effort, the Company believes that the opportunities available to
generate a scalable international business through licensing the
technology are significant.
About OOOOO Entertainment
Commerce
OOOOO operates a technology platform that
enables retailers, brands and entrepreneurs to share product-based
opinions directly to consumers through live, interactive, shoppable
videos. The platform also offers gamification and social features
which reward the community for helping to grow the user base,
reducing the need for traditional ad networks.
The Company was founded in 2020 by Sam Jones and
Eric Zhang and has offices in Manchester and Shanghai.
Interactive video commerce continues to explode
as a mega-trend in China, estimated to reach $420 billion this year
according to McKinsey. OOOOO are focused on delivering a technology
platform and app to enable brands, retailers, and entrepreneurs to
embrace the live stream economy. Having launched in November 2020,
the OOOOO platform has seen over +500,000 installs to date and
successfully onboarded leading brands across fashion, sport,
beauty, and wellness.
For further information please contact:
OOOOO Entertainment Commerce
Limited
Sam Jones, Chief Executive Officer |
604.265.0771 |
sam@ooooo.com |
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.
Forward Looking Information
Certain statements in this news release may
constitute “forward-looking statements”. Forward-looking statements
are statements that address or discuss activities, events or
developments that OOOOO expects or anticipates may occur in the
future. When used in this news release, words such as “estimates”,
“expects”, “plans”, “anticipates”, “projects”, “will”, “believes”,
“intends” “should”, “could”, “may” and other similar terminology
are intended to identify such forward-looking statements.
Forward-looking statements reflect the current expectations and
beliefs of OOOOO’s management. Because forward-looking statements
involve known and unknown risks, uncertainties and other factors,
actual results, performance or achievements of OOOOO or the
industry may be materially different from those implied by such
forward-looking statements. Examples of such forward-looking
information that may be contained in this news release include
statements regarding: growth and future prospects of our business;
our perceptions of the industry and markets in which we operate and
anticipated trends in such markets, including the continued
worldwide adoption of football; expectations regarding the
operation of our app; the launch date for the services and goods
offered on the Fanz.com website, our ability to successfully launch
our SDK product and our future revenues. Material factors or
assumptions that were applied in drawing a conclusion or making an
estimate set out in the forward-looking statements may include, but
are not limited to, our ability to execute on our business plan,
increase visibility amongst consumers and convert users to revenue
producing subscribers and the success of the business of our
partners, including our ability to attract and retain sports teams
and players. Forward-looking statements involve significant
uncertainties, should not be read as a guarantee of future
performance or results, and will not necessarily be an accurate
indication of whether or not such results will be achieved. A
number of factors could cause actual results to differ materially
from the results discussed in the forward-looking statements,
including, without limitation: those relating to potential
disruptions to product delivery; failure to meet regulatory
requirements; changes in the market; potential downturns in
economic conditions; availability of financing (as necessary; and
other risk factors described in our Filing Statement which is
available on SEDAR at www.sedar.com. These risks, as well as
others, could cause actual results and events to vary
significantly. Accordingly, readers should exercise caution in
relying upon forward-looking statements and OOOOO undertakes no
obligation to publicly revise them to reflect subsequent events or
circumstances, except as required by law.
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