TORONTO, May 3, 2017 /CNW/ - QYOU Media Inc. (TSXV: QYOU) ("QYOU Media") provided a financial update today on the financial performance of its wholly-owned operating subsidiaries ("the QYOU") for the 12 months ended December 31, 2016. These unaudited financial results for the QYOU are for the period preceding the recently completed business combination between Galleria Opportunities Ltd. and QYOU Media resulting in QYOU Media's listing on the Exchange on March 31, 2017. The QYOU's results were prepared by QYOU Media's management and all figures appear in Canadian dollars. Consolidated audited financial statements for QYOU Media and the QYOU will be filed in due course for QYOU Media's quarter ended March 31 as well as for the June 30 year end.
For the quarter ended December 31, 2016, the QYOU had revenue of $844,187, a 22% increase from $690,779 for the comparative quarter in 2015. The adjusted operating loss for the quarter ended December 31, 2016 improved to $871,033 from an operating loss of $2,495,383 for the comparable quarter in 2015.
For the 12 months ended December 31, 2016, the QYOU had revenue of $2,513,542, a 144% increase from the comparative 12 months ended December 31, 2015 of $1,028,101. The QYOU's adjusted net loss for the twelve months ended December 31, 2016 was $5,360,788 compared to a net loss of $4,341,448 in 2015.
As at December 31, 2016, the QYOU had cash and cash equivalents of $243,608, as compared to $5,232,367 as at December 31, 2015. Cash used in calendar 2016 operating activities was $4,562,484.
QYOU Media's CEO Curt Marvis stated, "We are very pleased with our progress this past year. We worked hard on significantly reducing our growth stage losses in the last quarter of 2016 and we now have 17 unique customer relationships across six continents with many of the largest players in the media and mobile distribution business. We believe we are very well positioned for further growth in 2017 and beyond."
Board and Executive Changes
In addition, the board of directors of QYOU Media (the "Board") announces the following executive and Board changes:
Scott Ehrlich has stepped down as Co-CEO and as a director and Mr. Ehrlich's associate, Ken LaCorte, has also left the Board. Mr. Ehrlich is an original architect of the QYOU business and during his tenure, QYOU has successfully launched two television networks (QYOU and TBD) reaching millions of homes and positioned the company for success in the future.
G. Scott Paterson, Co-Founder and Chairman of QYOU Media Inc., commented, "We are grateful for the years of work Scott has put behind his vision for the QYOU."
Curt Marvis, Co-Founder and Co-CEO, assumes the role of CEO. Mr. Marvis has previously served as President of Digital for Lions Gate Entertainment Corp., as CEO and Co-Founder of CinemaNow, as President of NASDAQ listed game developer 7th Level and as CEO of The Company, a producer of concerts and music videos leading to his being awarded an MTV Lifetime achievement award.
Mr. Paterson added, "As a co-founder, Curt has been part of our leadership team since day one and the Board has complete confidence in his abilities. The remaining executive team, is intact and focused on building the business from the strong base that has been established to date. Our recently announced agreements in the Netherlands and Eastern Europe continue expanding the reach of QYOU content around the world."
Joining the Board effectively immediately, subject to regulatory approval, is Damian Lee, a renowned Canadian film producer and director with over 50 films to his credit including A Dark Truth, A Fighting Man and Ski School with casts including Forest Whitaker, Andy Garcia, Eva Longoria and James Caan. Mr. Lee is also considered to be one of Canada's leading experts in the areas of production financing and tax credit-based financing and is expected to aid the Company in its efforts to build production capabilities in Canada.
Continuing in their roles as Board members in addition to Messrs. Paterson, Marvis and Lee are Catherine Warren, a member of the Bell Fund board as well as a nominating member of the International Academy of TV Arts and Sciences and President and Founder of FanTrust; Tim Hogarth, former President and CEO of Pioneer Energy and board member of Parkland Fuel Corporation (TSE: PKI); and James Swayze, CEO and Co-Founder of Symbility Solutions (TSXV: SY).
Reallocation of Options and Restricted Stock Unit ("RSU") and Option Plans
In addition, the Company announced that, subject to regulatory approval, it will cancel and reissue certain previously announced stock option grants as a result of Board changes and other allocation adjustments. The total number of options outstanding remains the same, and are exercisable at $0.50.
The Board has also approved an RSU plan (each, a "Plan"), which includes standard time-based vesting and performance based-vesting provisions as well as the possibility of accelerated vesting based on a grantee's time spent working for the QYOU prior to the introduction of the Plan.
About QYOU Media Inc.
QYOU Media Inc. is a fast-growing global media company that curates and packages premium 'best-of-the-web' video for multiscreen distribution. Founded and created by industry veterans from Lionsgate, MTV, and NewsCorp, QYOU's millennial-focused products including linear television networks, genre-based series, mobile apps, and video-on-demand formats reach millions of customers on six continents. Distribution partners include Sinclair Broadcast Group, Vodafone, 21st Century Fox, Liberty Global, Telenor and TATA Sky.
This news release contains unaudited financial information concerning QYOU Media's operating subsidiaries (the QYOU) prepared by management which remains subject to consolidation with QYOU Media's financial information and remains subject to audit.
It also contains forward-looking statements, including but not limited to terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. Forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause QYOU Media or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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.
SOURCE QYOU Media Inc.