Urbanimmersive Technologies Inc. - Urbanimmersive presents its 2011-2012 financial results

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TSX VENTURE EXCHANGE SYMBOL - UI

Highlights

  • Increase in revenues of 12% compared to the previous year;

  • Signature of the first real estate contract with a significant real estate agency in the Province of Quebec,  as well as confirmation of interests with world-wide recognized real estate agencies;

  • Significant growth of the Corporation software portfolio, in particular with its mobile versions (for iPhone & iPad) and its new web based application for real time data analysis;

  • As a subsequent event, the completion on October 4 2012 of the Acquisition and the conclusion of its concurrent private placement for aggregate proceeds of $2,500,000 which together constituted the Qualifying Transaction of Urbanimmersive Technologies pursuant to Policy 2.4 of the Exchange.




MONTREAL, Jan. 24, 2013 /CNW Telbec/ - Urbanimmersive Inc. (the "Corporation" or "Urbanimmersive"), a wholly-owned subsidiary of Urbanimmersive Technologies Inc. ("Urbanimmersive Technologies"), presented today its financial results for the fiscal year ending September 30, 2012. The delays in the completion of the Corporation's reverse takeover with Urbanimmersive Technologies (formerly UI Capital Inc.) and the related delays in obtaining concurrent financing have forced management to adjust its operational expenses. In addition, the Corporation has refocused its development strategy on the real estate market by dedicating its direct sales, its marketing and its research and development resources on this prominent market. Despite its financial constraints, management is pleased with the results achieved which includes the signature of its first real estate contract with a significant real estate agency in the province of Quebec, validating the interest and quality of its AVU3D® immersive solution, as well as the confirmation of interests from world-wide recognized real estate agencies. In addition, the Corporation has increased its software portfolio, in particular with its mobile versions (for iPhone & iPad) and its new web based application for real time data analysis.

On October 4, 2012, Urbanimmersive Technologies announced the closing of the acquisition (the "Acquisition") of all of the securities of the Corporation and of its concurrent private placement for aggregate proceeds of $2,500,000 (the "Offering"). The Acquisition constituted 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.

On October 12, 2012, Urbanimmersive Technologies announced that the Exchange had accepted for filing its Qualifying Transaction and had issued its final exchange bulletin. As a result, trading in the Common Shares of Urbanimmersive Technologies resumed at the opening of the markets on Monday, October 15, 2012. In addition, the name of Urbanimmersive Technologies was changed from UI Capital Inc. to Urbanimmersive Technologies Inc.

"The revenue growth during this financial year compared to last year was fairly modest, however it does not represent the potential growth of our AVU3D® immersive solutions", said Ghislain Lemire, Urbanimmersive's President and CEO. "In fact, the delays related to the closing of the Acquisition and obtaining concurrent financing have forced us to postpone the official commercialisation of our AVU3D® immersive solutions. Nevertheless, we took advantage of this strategic refocus to strengthen our technological offer geared towards the real estate market, the corporation's core market since its inception. We are extremely pleased to see the enthusiasm shown by key players in the real estate market that are constantly looking for new ways to strengthen their competitive edge. With our new corporate structure and financial resources, we can now focus our efforts on converting the market interest for our AVU3D® technology into real value for the Corporation. We are now entering a very stimulating phase which we believe will be very positive for our long term growth and will confirm AVU3D's world-wide potential".

Operating Results

For the year ended September 30 2012, revenues were $1,012,624, an increase of $108,759, or 12% compared to the revenues of $903,865 in the 2011 year. 3D services accounted for $935,168, or 92.4% of revenue, an increase of $73,747 compared to $861,421 or 95.3% of 3D services revenue generated in 2011, due to moderate growth mainly from existing customers. AVU3D products generated $77,456 in 2012, representing 7.6% of total revenues, an increase of $35,013 compared to $42,444 of revenues generated by AVU3D products in 2011, representing 4.7% of total revenues. The AVU3D suite of products and related licences is expected to contribute substantially more revenue in coming periods.

For 2012, the gross profit was $280,159 or 27.6% compared to $268,295 or 29.6%, in 2011, a decrease of 2% as a percentage of revenue.

Operating expenses totalled $1,001,620 in 2012 compared to $1,348,172 in 2011 a decrease of $346,552 or 25.7% due primarily to a $281,741 reduction in administrative expenses as well as a $68,727 decrease in R&D. Financial expenses increased by $88,342 to $185,500 in 2012 due to the issuance of convertible debentures totalling $1,000,000 disclosed in financial liabilities in 2011.

The net loss for 2012 was $1,205,521 compared to a net loss of $979,649 in 2011, an increase of $225,872 primarily due to an impairment loss of $257,944 for its customer relations related to the transportation markets and the reacquired franchise for such markets and impairment loss of $40,616 on goodwill related to the acquisition of the franchise covering these markets. This impairment loss primarily results from the Corporation's decision to dedicate its development efforts on the real estate market. The Corporation plans to focus on revenue growth by improving its gross margin and by controlling the increase of its operating expenses.

Selected Financial Information

 
Year Ended
September 30, 2012
Year Ended
September 30, 2011
Total revenue $1,012,624 $969,165
Gross Profit 280,159 268,295
Operating Income (Loss) (721,461) (1,009,588)
Net Income (Loss) (1,205,521) (979,649)
Total Assets 1,180,778 1,928,719
Long-term liabilities (132,308) (1,501,177)
Shareholders' Equity $(2,203,971) $(910,981)


Summary of Financial Results

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 the audited financial statements of the Corporation for the year ended September 30, 2012:

For the 3 months ended September 30,
2012
June 30, 2012 March 31, 2012 December 31,
2011
Sales $191,584 $250,718 $306,622 $263,700
Gross profit 32,980 63,303 106,047 77,829
Net loss (478,407) (257,593) (204,766) (264,755)
Net loss per Class "A" share $(812.21) $(458.05) $(416.10) $(468.62)
Weighted Average number of Class "A" shares outstanding 600 600 600 600



For the 3 months ended September 30,
2011
June 30, 2011 March 31, 2011 December 21,
2010
Sales $248,302 $244,262 $236,785 $174,516
Gross profit 70,703 55,544 80,089 61,959
Net loss (253,395) (277,512) (290,120) (158,622)
Net loss per Class "A" share $(441.60) $(481.13) $(501.60) $(280.72)
Weighted Average number of Class "A" shares outstanding 600 600 600 600


About Urbanimmersive

Headquartered in Laval, Québec, the Corporation, a wholly owned subsidiary of Urbanimmersive Technologies, is a leading edge digital media company that combines visual & creative content production with innovative patent pending immersive technology for the real estate online, offline and mobile advertising market. The Corporation also licenses its full suite of software and technology to channel partners in other markets. The Corporation currently has 24 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 a large range of visual content services and proprietary immersive technology products which are used for online, offline and mobile real estate advertising.  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 is a visual content provider with a limited direct sales force. The Corporation reaches the real estate market through specialized resellers including architectural photographers, virtual tours providers, web site producers, architects and marketing communication agencies. The Corporation's comprehensive suite of software related to its AVU3D® immersive technology enables its partners and advertisers to add elements such as hot spots 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'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 the Corporation enters into license agreements. The channel partner's license enables the channel partners 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 22, 2013 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 Inc.

For further information:

Ghislain Lemire, President and CEO at 514-394-7820 or ghislainlemire@urbanimmersive.com