EXO U announces its first quarter fiscal 2015 financial results

MONTREAL, Aug. 29, 2014 /CNW Telbec/ - EXO U Inc. ("EXO U" or the "Company"), a software provider that develops cross platform operating system agnostic software that enables development of highly customizable touch-based user interfaces and experiences, today announced its financial results for the Quarter ended June 30, 2014. All amounts are stated in Canadian dollars, unless otherwise noted.

FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2014



Q1 Fiscal 2015

Q1 Fiscal 2014





Revenue


$503,189

$73,307

Adjusted negative EBITDA 1


$(1,135,747)

$   (562,173)

Net loss


$(1,485,066)

$(3,086,373)

Basic and diluted loss per share


$(0.04)

$(0.13)





 

1.

Adjusted negative EBITDA as defined by the Company means earnings before interest and financial costs (net of interest income), income taxes, depreciation and amortization, stock-based compensation, restructuring and other non-recurring costs. Adjusted negative EBITDA is a non-IFRS measure. Please refer to the annex for reconciliation of net loss to Adjusted negative EBITDA. 

 

Q1 Fiscal 2015 and Subsequent Highlights

-the Company had a $9,575,510 cash balance at the end of the quarter.

-in the quarter, the Company recorded $503,189 of revenue.

-during the quarter and the subsequent period, the Company generated $3,439,555 from the exercise of warrants and stock options.

-on August 25, the company announced the appointment of Frank Biden to its Board of Advisors.
Mr. Biden brings significant experience in government and education to the table.

"We continued to execute our go to market strategy this quarter generating further interest in our solution and growing our sales pipeline" said Shan Ahdoot, President and Chief Executive Officer of EXO U. "Furthermore, with the recent addition to our Board of Advisors, strategic hires and influx of funds, we are very well positioned to grow our business."

Financial Results

EXO U had $503,189 of revenue in the first quarter ended June 30, 2014 versus $73,307 reported in the same period last year. The revenue represented a portion of the digital classrooms delivered in the quarter to Panama. The Company also reported deferred revenue in the quarter of $312,734.

Gross margin in the quarter was $421,187 or 84% of revenue.

Research and development ("R&D") expense was $504,703 for the first quarter, an increase of $280,991 from the same period last year. The Company has increased its R&D activity as it drives its product development.

Selling, general, and administrative expenses for the first quarter were $1,101,416, up $644,399 from that incurred in the same period last year. The increase is due to the hiring of new staff, business development and the establishment of the Palo Alto, California facility.

Stock based compensation in the first quarter increased year over year from $50,352 to $299,375, reflecting the issuance of stock options to the growing employee base.

Adjusted negative EBITDA was $1,135,747 in the first quarter, compared to negative $562,173 in the same period last year. Of note, the Adjusted negative EBITDA in the quarter was $206,946 lower than that incurred in the fourth quarter of last year. This was largely due to the margin recorded on the revenues as well as continued focus on the spending base.

As of June 30, 2014, the Company had a cash balance of $9,575,510 which is an increase of $2,589,055 from the position it had as at March 31, 2014. The cash generated from the exercising of warrants and stock options was partly offset by the cash used in operations.

The quarterly unaudited interim condensed consolidated financial statements and related notes and Management's Discussion and Analysis for the three months ended June 30, 2014 and 2013, are available under the Company's profile on SEDAR at www.sedar.com.

About EXO U

EXO U's shares trade on the TSX Venture Exchange under the ticker symbol EXO.V.  EXO U develops an innovative software platform which enables businesses and educational institutions to securely mobilize and manage their mobile workforce and students by delivering engaging experiences spanning desktop and mobile applications. At the core of EXO U's platform is the smart and agnostic EXOengine that unifies multiple software platforms, allowing devices to interact and communicate seamlessly together. It enables true mobility for businesses and educational organizations by solving important mobility issues such as security, privacy, collaboration, and management of application and content. EXO U's technology agnostic framework delivers to end users a safe, reliable, and intuitive Smart Workspace designed for connecting with people, accessing services, and sharing information and digital content, while requiring minimal infrastructure and optional Internet connectivity. It simplifies management of the entire application lifecycle, freeing the organizations to focus on building engaging apps that work across different operating systems and form factors, thus increasing productivity for developers and reducing total cost of ownership for organizations. By offering an engaging and exceptional user experience on all computing devices, without compromising security or protected information, the EXO U enterprise and education solutions allow organizations to embrace consumerization and enjoy all the benefits of mobile. For more information, visit http://www.exou.com and follow us on Twitter @exo_u.

Disclaimer in Regards to Forward Looking Statements

Certain statements made in this press release that are not historical facts are forward-looking 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 EXO U's management's discussion and analysis for the quarter ended June 30, 2014 available under the Company's profile on SEDAR at www.sedar.com. The forward-looking information contained in this press release represents EXO U's current expectations. EXO U disclaims any intention and assumes no obligation to update or revise any forward-looking information, except by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts any responsibility for the adequacy of this release.

ANNEX

Adjusted negative EBITDA for the three-month period ended June 30, 2014 and 2013



2014

2013





Net loss


($1,485,066)

($3,086,373)









Financials expenses (income), net


$(4,187)

$17,165

Depreciation of property & equipment


$12,120

$8,725

Amortization Intangible assets


$10,049

$9,508

Amortization of deferred development costs


$27,016

$27,016

Negative EBITDA


($1,440,068)

($3,023,959)





Stock-based Compensation


$299,375

$50,352

Listing expenses


-

$2,373,930

Foreign exchange                 


$4,946

$37,504





Adjusted negative EBITDA


($1,135,747)

($562,173)

 

SOURCE: EXO U Inc

For further information: For investor or media inquiries, please contact: Sean Peasgood, Sean@SophicCapital.com, 416.565.2805

LIENS CONNEXES
http://www.exou.com

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