Urbanimmersive Technologies Inc. presents its consolidated financial results for the first quarter of 2013-2014
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TSX VENTURE EXCHANGE SYMBOL - UI
- Closing of a private placement of an aggregate amount of $1,000,000 on December 5, 2013;
- Collaboration with APCHQ, the Provincial Home Builders' Association of Quebec, on the ("My Dream Home") contest, having added more than 80 new home builder customers and increased visibility for AVU3D® amongst new home builders in Quebec;
- Finalization of the technological developments in anticipation of February 11, 2014 launch of:
- the new www.avu3d.com real estate portal;
- the new iOS, Android and web versions of the AVU3D® application;
- an online system enabling the centralization of orders;
the rebranding of AVU3D® and its derived products.
MONTREAL, Feb. 25, 2014 /CNW Telbec/ - Urbanimmersive Technologies Inc. ("Urbanimmersive Technologies"), today presented its unaudited consolidated financial results, including those of Urbanimmersive Inc. ("Urbanimmersive" and, collectively with Urbanimmersive Technologies, the "Corporation"), its wholly owned subsidiary, for the three-month period ended December 31, 2013.
"We understand that it is not easy to visualize the progress of the Corporation through the financial results for the last quarter. However, we're confident that we have the right long term strategy to create value for our shareholders. By leveraging our AVU3D® suite of products and services for the real estate market, we are building the brand awareness. The launch of our new real estate portal www.avu3d.com on February 11th, 2014 clearly demonstrates the progress of the Corporation in its market and now provides a greater visibility of our brand to our customers, consumers and advertisers. We are already feeling the effects on demand and ultimately, these will have an impact on our revenues." said Ghislain Lemire, President and CEO of the Corporation.
As a result of the agreement signed with APCHQ during the year 2013, the number of customers of the Corporation in the new home construction market has experienced significant growth. Indeed, as part of the "My Dream Home" contest, APCHQ offered all new home builders entered in the contest an AVU3D® immersive visit for one of their model home. This initiative has enabled the Corporation to acquire more than 80 new customers who have adopted the AVU3D® application for their marketing, in addition to benefiting from excellent visibility. These new customers of the Corporation represent a potential of recurring revenue in the medium and long terms.
The first quarter of 2013-2014 was an opportunity for the Corporation to focus its efforts on finalizing technological developments of its AVU3D® technology initiated during the previous financial year. These include: the development of an online central order management system for all AVU3D® products and services and the development of the new www.avu3d.com real estate portal incorporating all AVU3D® immersive visits as well as new iOS, Android and web versions of the AVU3D® application. In anticipation of the February 11, 2014 launch of these new products and technological developments, the Corporation has also completed the rebranding of the AVU3D® application. With a new logo and advertising slogan customized to the real estate market, the Corporation intends to consolidate the AVU3D® visual identity and reinforce its marketing initiatives targeting this market.
The financial results for the first quarter reflect the adoption objectives for the AVU3D® application in the real estate market. The Corporation is gradually implementing strategic elements that will enable its continued growth in the brokerage and new home construction markets. As such, during the first quarter, the Corporation continued marketing its immersive AVU3D® products with an entirely "risk-free" sales model in the real estate brokerage market. This sales model, which the Corporation intends to revise in the second quarter 2013-2014, allowed realtors to use AVU3D® immersive products to market their properties for sale and to pay for the AVU3D® immersive visits only if there is a sale. As the sale of a property may take several months, income recognition of these revenues is spread over several quarters. Customers of the Corporation were voluntarily not exposed to the pay functionality of the AVU3D® immersive platform as these features were further developed during this quarter. The Corporation also continued to reduce production of 3D visual content without immersive technology because of its low potential for recurring revenue and reduced profit margins.
SELECTED FINANCIAL INFORMATION
|December 31, 2013||December 31, 2012|
|Cost of sales||194,088||182,010|
|Gross profit (loss)||(40,484)||154,633|
|Net loss and comprehensive loss||(497,244)||(1,504,202)|
The Corporation's revenues have decreased from $336,643 to $153,604, a decrease of $183,039 or 54.3%. This decrease is mainly due to two contracts signed, during the three month period ended December 31, 2012, with different channel partners specialized in children online gaming and industrial sectors, for 3D products for a total amount of $102,000 and the sale of licences for a total amount of $58,000. These licenses allow the non-exclusive use of our AVU3D® technology and this independently. During the period, the Corporation completed 237 immersive tours. At December 31, 2013, and since the beginning of the implementation of the commercialization of immersive visits in April 2013, the Corporation completed a total of 953 immersive visits. Of this total, 93 immersive visits were withdrawn and 123 immersive visits led to the sale of the property. According to the business model of the Corporation, the revenue is recorded only when services are rendered which is when the property is sold. At December 31, 2013, the Corporation has a total of 737 active immersive visits on the market for which there is potential revenue.
The Corporation recorded a gross loss of ($40,484) or (26.4%) compared to a gross profit of $154,633 or 45.9% for the three month period ended December 31, 2012. This decrease in gross margin is due to a decrease in revenue described above and to production costs of AVU3D® immersive visits that the Corporation had to bear while revenue recognition will only take place if there is a sale of the property. These production costs are approximately $40,000.
Operating expenses totalled $450,096 compared to $370,474 for the same period of 2012, an increase of $79,622 or 21.5% due to an increase in selling expenses of $27,602 and to an increase in Administrative expenses of $53,826.
Other expenses totalled $6,664 compared to $1,288,361 for the same period of 2012, a decrease of $1,281,697. This decrease is due to the recognition, in 2012, of a stock listing exchange expense of $1,181,417 and a loss on amendment of a convertible debenture of $99,187. These elements are directly related to the completion of the Reverse Takeover on October 4, 2012.
LIQUIDITY, CAPITAL RESOURCES AND SOURCES OF FINANCING
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 believes that current cash will not cover the activities for the next twelve months and not allow the continuation of the commercial offensive currently undertaken by the Corporation. In order to support the level of investment required, the Corporation is considering various options to finance its activities. There is no assurance that these measures will be successful.
Headquartered in Laval, Quebec, the Corporation is a digital media corporation engaged in providing interactive advertising solutions for the real estate industry. The Corporation develops and commercialises its AVU3D® suite of products and web services enabling 3D real estate advertising.
The AVU3D® suite of web products and services includes the AVU3D® application that allows to produce and publish, on web and mobile platforms, immersive 3D environments of real and future properties using photographs or digital images. The Corporation developed the www.avu3d.com site, a portal that allows Internet users to search and view properties for sale or for rent in 3D and find decoration and renovation ideas. This site also provides Internet users the ability to have a direct access to real estate agent contact information using the AVU3D® application in their marketing.
The AVU3D® suite of web products and services is also a complete and innovative suite of marketing and web service solutions for real estate customers such as visibility opportunities on the www.avu3d.com home page and on web page search results, lead generation solutions, real time alerts, live chat services, live visual user interactions and online editing applications enabling insertion of graphic and text information into the AVU3D® environments. AVU3D® Ads platform is an application enabling advertisers to capture Internet users' attention when looking for a property for sale or rent, and this in various locations within the AVU3D® environment. All these marketing solutions are accessible via an online central order management and appointment system enabling photographers and 3D artists to have, among others, a direct link with real estate agents and home builders to schedule and produce their AVU3D® visual content. The Corporation also offers visual content production services to its customers.
The target audience and customers of the Corporation include realtors in the residential and commercial sectors, builders of new homes, rental professionals, architects and advertisers such as suppliers of services related to real estate, mortgage lenders and insurance and consumer products companies.
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 February 25, 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.
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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.
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SOURCE Urbanimmersive Technologies
Image with caption: "Urbanimmersive Technologies Inc. - http://www.urbanimmersive.com/ (CNW Group/Urbanimmersive Technologies)". Image available at: http://photos.newswire.ca/images/download/20140225_C7321_PHOTO_EN_37141.jpgFor further information:
Ghislain Lemire, President and CEO
514-394-7820 or email@example.com