UrtheCast Reports 2014 Fourth Quarter And Year-end Financial Results

• First Revenue In Company History, Working Capital Improved to $22M, Test Imagery Released

VANCOUVER, March 23, 2015 /CNW/ - UrtheCast Corp. (TSX:UR) ("UrtheCast" or the "Company"), a technology company that is developing the world's first Ultra HD video platform of Earth from space, today announces financial results for the three and twelve months ended December 31, 2014. The Company reported a comprehensive income of $6.2 million in the quarter as compared to a loss of $4.8 million in the comparative year's quarter. The Company's comprehensive loss in 2014 was $5.7 million, compared to $19.2 million in the previous year. UrtheCast's working capital position increased from $4.8 million at September 30, 2014 to $21.8 million at year-end, an improvement of $17.0 million, with a cash balance of $11.4 million.

Recent highlights include:

Initial Revenue Recognition

UrtheCast recognized $3.9 million in revenue in the fourth quarter, which is primarily from the data and value-added engineering services contract that was previously announced.

Business Interruption Insurance Payment

UrtheCast was awarded an insurance claim of up to $11.5 million, of which $7.75 million was collected during the fourth quarter.  The remaining funds will be accrued at $750,000 per month, up to May 2015, or whenever the High-Resolution Camera ("HRC") achieves Initial Operating Capability ("IOC").

Bi-Axial Pointing Platform ("BPP") & HRC Update

The cables and software updates needed to repair the BPP have now been installed. We are now in the process of testing and characterizing the BPP and continuing with our commissioning phase for the HRC. Although a lot of work remains ahead to fully commission the BPP and the HRC and get to IOC, we are satisfied with the test results we have attained so far.  We have released a sample HRC video from our initial testing on our website at www.urthecast.com/testing. This test video does not yet have the final image quality and resolution as the BPP performance and our ground processing algorithms will continue to improve as we progress through commissioning.

Letitia "Tish" Long, Former Director Of The National Geospatial-Intelligence Agency Appointed to the Board

Letitia "Tish" Long, former director of the U.S. National Geospatial-Intelligence Agency, joined our Board of Directors.  Ms. Long most recently served as the fifth Director of the National Geospatial-Intelligence Agency (NGA). Prior to her appointment to the NGA, Ms. Long served as the Deputy Director of the Defense Intelligence Agency (DIA) from 2006 until 2010. She was also named one of the Most Powerful Women in the D.C. Metro area by Washingtonian magazine in 2013.

Formation of an Advisory Board To Provide Strategic Guidance In Space And Technology

UrtheCast announced an Advisory Board consisting of Peter Marino, Michele Weslander Quaid, Jeffrey Manber, and Sunil Sharma — all leading executives currently with, or from organizations including Google Inc., NanoRacks LLC, Lockheed Electronics, and Extreme Venture Partners. This group of senior executives will assist UrtheCast as the Company continues to democratize Earth Observation by revolutionizing geospatial 'big data' analytics.

MRC Update

The Medium-Resolution Camera ("MRC") is generating initial revenue. The customer base and sales funnel continues to grow and we actively engaged in a number of pilot projects from customers around the world. The key near-term driver for MRC revenue in 2015 will be the northern hemisphere growing cycle.

Website Development

The web platform is now in a private beta phase.  Part of the core of the UrtheCast vision, this platform will enable the democratization and understanding of how the world changes. New features, including ordering and publishing services, are planned for launch mid-2015, with continued, routine releases of new functionality and datasets thereafter.

Results of Operations

	Three Months ended December 31,				Year ended December 31,
		2014		2013		2014		2013
Revenue	$	3,944,850	$	-	$	3,944,850	$	-
Business interruption insurance		8,000,000		-		8,000,000		-
		11,944,850		-		11,944,850		-
Operating Costs
General and administrative expenses		3,423,873		2,902,658		11,494,186		6,469,409
Research expenditures		1,200,354		293,480		3,048,012		1,221,262
Share-based payments		1,247,172		1,703,474		3,276,288		4,141,205
		5,871,399		4,899,612		17,818,486		11,831,876
Operating income (loss)		6,073,451		(4,899,612)		(5,873,636)		(11,831,876)
Net finance (income)/costs, foreign exchange (gains)/losses and changes in fair value of derivatives		17,836		71,673		80,184		34,949
Loss on settlement of convertible debenture		-		-		-		(230,345)
Non-cash loss on completion of Transaction		-		-		-		(7,205,501)
Net income (loss)		6,091,287		(4,827,939)		(5,793,452)		(19,232,773)
Other comprehensive income (loss)		80,208		502		72,598		(1,152)
Comprehensive income (loss)	$	6,171,495	$	(4,827,437)	$	(5,720,854)	$	(19,233,925)
Net income (loss) per share – basic and diluted	$	0.09	$	(0.08)	$	(0.09)	$	(0.42)

Our cash balance at December 31, 2014 was $11.4 million. We expect to receive the balance of the 20% cash advance, US$10 million, for the US$65 million contract and the first milestone payment of US$5.6 million in the first half of 2015.  In addition, we expect to receive a further payment under our business interruption insurance policy of up to $3.75 million, plus the possibility of an additional amount for the costs to implement the technical solution. These expected proceeds are expected to fund our current level of operations and capital commitments over the next twelve months.

"I am extremely pleased with the financial results of the quarter", explained Scott Larson, UrtheCast's Chief Executive Officer. "The improvement of our cash and working capital positions, combined with the technical progress that we have made, puts the Company in an excellent position for growth in 2015."

The full financial statements and accompanying Management's Discussion & Analysis are available on UrtheCast's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR") at its website www.sedar.com, and on UrtheCast's website at www.urthecast.com.

The Company will host a conference call regarding its corporate earnings for the three and nine months ended December 31, 2014, at 8:30 a.m. ET (5:30 a.m. PT) on Monday, March 23, 2015.  The live conference call will be available by calling toll-free at 866-696-5910, or by toll call at 416-340-2217. The participant pass code is 2427706.

An archived version of the conference call will be made available on the Company's investor webcast page following the live conference call.

About UrtheCast Corp.

UrtheCast Corp. is a Vancouver-based technology company that is developing the world's first Ultra HD video feed of Earth, streamed from space in full color. Working with renowned aerospace partners from across the globe, UrtheCast has built, launched, installed, and will soon operate its Ultra HD video camera, Iris, on the ISS alongside its Medium Resolution Camera ("MRC") which reached Initial Operation Capability ("IOC") in 2014. Video and still image data captured by the cameras will be downlinked to ground stations across the planet and displayed on the UrtheCast web platform, or distributed directly to partners and customers. UrtheCast's cameras will provide Ultra HD video and still imagery of Earth that will allow for monitoring of the environment, humanitarian relief, social events, agricultural land, etc. Common shares of UrtheCast trade on the Toronto Stock Exchange as ticker 'UR'.

For more information visit UrtheCast's website at www.urthecast.com.

Forward Looking Information

This release contains certain information which, as presented, constitutes "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions and includes, but is not limited to, statements about the commissioning of the cameras and the BPP, plans to operate camera components on, and stream video footage from, the ISS, proposed image and video product offerings, expectations regarding the commencement of commercial operations, expected partners and customers to distribute such products and expected costs and revenues. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of UrtheCast to control or predict, and which may cause UrtheCast's actual results, performance or achievements to be materially different from those expressed or implied thereby, including, but not limited to, damage which may have occurred to the cameras during launch or installation, unexpected changes in Russian or Canadian government policies, technology changes, reliance on key personnel, the potential for conflicts of interest among certain officers, directors or promoters with certain other projects, competition, risks related to the business activities of Longford Energy Inc. (now UrtheCast) prior to the reverse take-over transaction with Earth Video Camera Inc., as well as those factors discussed in the Company's annual information form dated March 20, 2015, (the "AIF") and the Company's short form base shelf prospectus dated April 7, 2014 (the "Prospectus") which are available under UrtheCast's SEDAR profile at www.sedar.com. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, in the AIF and Prospectus, and as otherwise disclosed from time to time on UrtheCast's SEDAR profile.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and UrtheCast undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.

UrtheCast Corp. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Expressed in Canadian Dollars For the years ended December 31, 2014 and 2013
As at				2014		2013
Assets
Current assets
	Cash and cash equivalents			$	11,398,052	$	21,787,577
	Restricted term deposits				380,000		440,000
	Trade and other receivables				15,228,129		469,699
	Prepaid expenses and deposits				417,506		2,461,539
Total current assets					27,423,687		25,158,815
Non-current assets
	Property and equipment				65,360,081		49,843,532
	Intangible assets				14,794,540		5,421,099
Total assets				$	107,578,308	$	80,423,446
Liabilities and shareholders' equity
Current liabilities
	Trade and other payables			$	3,178,101	$	2,417,229
	Deferred revenue				2,433,606		-
Total current liabilities					5,611,707		2,417,229
Deferred revenue					53,331,961		28,900,000
Total liabilities					58,943,668		31,317,229
Shareholders' equity
	Share capital				73,781,867		69,892,954
	Warrant reserve				2,398,501		2,459,718
	Contributed surplus				7,034,536		5,612,955
	Accumulated other comprehensive income (loss)				70,609		(1,989)
	Accumulated deficit				(34,650,873)		(28,857,421)
Total shareholders' equity					48,634,640		49,106,217
Total liabilities and shareholders' equity				$	107,578,308	$	80,423,446

Going concern
Commitments

The accompanying notes, available on SEDAR or our website, form an integral part of these consolidated financial statements

UrtheCast Corp. CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS Expressed in Canadian Dollars For the years ended December 31, 2014 and 2013
						2014		2013
Revenue					$	3,944,850	$	-
Business interruption insurance						8,000,000		-
						11,944,850		-
Operating costs
	Direct costs, selling, general and administration					11,494,186		6,469,409
	Research expenditures					3,048,012		1,221,262
	Share-based payments					3,276,288		4,141,205
						17,818,486		11,831,876
Operating loss						(5,873,636)		(11,831,876)
Other income (expenses)
	Finance income					147,738		161,398
	Finance costs					(26,984)		(290,158)
	Foreign exchange (loss) gain					(40,570)		70,680
	Gain on marketable securities					-		59,524
	Change in fair value of derivatives					-		437,104
	Loss on derecognition of derivatives					-		(403,599)
	Loss on settlement of convertible debenture					-		(230,345)
	Non-cash loss on completion of Transaction					-		(7,205,501)
Net loss						(5,793,452)		(19,232,773)
Other comprehensive income (loss):
	Items that may subsequently be reclassified to net loss:
		Foreign currency translation				72,598		(1,152)
Comprehensive loss					$	(5,720,854)	$	(19,233,925)
Loss per common share, basic and diluted					$	(0.09)	$	(0.42)

The accompanying notes, available on SEDAR or our website, form an integral part of these consolidated financial statements

UrtheCast Corp. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Expressed in Canadian Dollars For the years ended December 31, 2014 and 2013
						2014		2013
Cash flows from operating activities
	Loss for the period					$	(5,793,452)	$	(19,232,733)
		Adjustments to reconcile loss to net cash used in operating activities:
			Depreciation				188,876		60,473
			Share-based payments				3,276,288		4,141,205
			Loss on settlement of convertible debentures				-		230,345
			Finance income				(147,738)		(161,398)
			Finance costs				26,984		290,158
			Unrealized foreign exchange loss (gain)				11,579		(5,115)
			Change in fair value/loss on derecognition of derivatives				-		(33,505)
			Gain on marketable securities				-		(59,524)
			Non-cash loss on completion of Transaction				-		7,205,501
		Changes in operating assets and liabilities:
			Trade and other receivables				(14,766,314)		(224,638)
			Prepaid expenses and deposits				2,044,033		(2,399,051)
			Trade and other payables				1,021,124		(458,796)
			Deferred revenue				14,265,567		-
		Interest paid					(26,984)		(3,169)
		Interest received					155,622		141,585
Net cash generated from (used in) operating activities							255,585		(10,508,702)
Cash flows from investing activities
		Acquisition of property and equipment					(3,164,692)		(16,941,935)
		Expenditures on intangible assets					(9,171,480)		(4,853,873)
		Proceeds from sale of marketable securities					-		376,984
Net cash used in investing activities							(12,336,172)		(21,418,824)
Cash flows from financing activities
		Proceeds from share issuance, net					1,399,747		33,466,948
		Cash acquired in Transaction					-		20,637,193
		Transaction costs included in equity					-		(2,219,071)
		Proceeds from stock options and warrants exercised					170,296		1,748,169
		Repayment of convertible debenture principal					-		(990,000)
		Repayment of convertible debenture interest					-		(41,705)
		Redemption (purchase) of term deposits					60,000		(440,000)
Net cash generated from (used in) financing activities							1,630,043		52,161,534
Net (decrease) increase in cash & cash equivalents during the year							(10,450,544)		20,234,008
Cash and cash equivalents at beginning of year							21,787,577		1,549,606
Effect of foreign exchange on cash & cash equivalents							61,019		3,963
Cash and cash equivalents at end of year						$	11,398,052	$	21,787,577

The accompanying notes, available on SEDAR or our website, form an integral part of these consolidated financial statements

SOURCE UrtheCast Corp.

Issa Nakhleh, CFO, [email protected], [phone] Direct

Related Links

www.urthecast.com