Highlights for the Three and Six Months Ended
- Revenues of
US$1,350,306 and$2,835,654 , respectively, on a combined basis for the three and six months endedDecember 31, 2020 , from continuing and discontinued operations(1). - Recolor recognized revenue of
US$1,139,846 andUS$2,445,705 , respectively, for the three and six months endedDecember 31, 2020 ; with trailing twelve-month revenue of$5,593,908 . Recolor revenue was classified as part of the discontinued operations(1). - The Company continues its efforts to secure a purchaser for Recolor.
- The production and development of Kuuhubb’s upcoming new flagship product Tiles & Tales has progressed well during this time period and is planned for commercial launch later this year .
CEO’s Message:
Financial Results for the Three and Six Months Ended
- The Company generated a total of
US$1,350,306 andUS$2,835,654 , respectively, combined revenues for the three and six months endedDecember 31, 2020 , from continuing and discontinued operations(1). - The Company recognized revenue of
US$223,030 andUS$389,949 , respectively, for the three and six months endedDecember 31, 2020 from its continuing operations; with trailing twelve-month revenue of$786,410 . This revenue was generated mainly from the subscriptions to, in-application sale of virtual goods from its “My Hospital” game and related advertising revenue. Recolor Oy recognized revenue ofUS$1,139,846 and$2,445,705 , respectively, for the three and six months endedDecember 31, 2020 . Recolor revenue was classified as part of the discontinued operations(1).- The Company incurred cost of sales of
US$109,750 andUS$234,376 , respectively, during the three and six months endedDecember 31, 2020 in its continuing operations. The cost of sales is predominantly related to the application marketplace (such asApple App Store and Google Play) fees and other third-party direct costs. - The Company incurred consulting and professional fees of
US$239,834 andUS$401,873 , respectively, during the three and six months endedDecember 31, 2020 . These fees were related to Kuuhubb’s audit fees, general legal counsel and other professional services. - The Company’s subsidiary
Recolor Oy showed EBITDA ofUS$6,105 for the three months endedDecember 31, 2020 by adjusting the net income before tax from discontinued operations ofUS$509 with the following items: - Add back of:
° non-cash depreciation and amortization ofUS$1,326 ;
° net interest and accretion expenses ofUS$4,269 ;
- The Company’s subsidiary
Recolor Oy showed EBITDA ofUS$7,428 for the six months endedDecember 31, 2020 by adjusting the net income before tax from discontinued operations ofUS$3,606 with the following items: - Add back of:
° non-cash depreciation and amortization ofUS$2,627 ;
° net interest and accretion expenses ofUS$7,300 ;
- On a combined basis, the Company showed EBITDA of negative
US$845,028 for the three months endedDecember 31, 2020 by adjusting the net loss before tax from continuing operations ofUS$1,091,090 with the following items: - Add back of:
° non-cash depreciation and amortization ofUS$9,361 ;
° non-cash share-based compensation ofUS$117,268 ;
° net interest and accretion expenses ofUS$263,424 ; - and deduct:
° non-cash fair value change of loan receivable from Valiance UG ofUS$104,666 ;
° foreign exchange loss ofUS$35,993
° the fair value change of derivative liability ofUS$3,332 ; - On a combined basis, the Company showed EBITDA of negative
US$1,669,520 for the six months endedDecember 31, 2020 by adjusting the net loss before tax from continuing operations ofUS$2,446,238 with the following items: - Add back of:
° non-cash depreciation and amortization ofUS$15,195 ;
° non-cash share-based compensation ofUS$270,804 ;
° net interest and accretion expenses ofUS$526,794 ;
° foreign exchange loss ofUS$72,493 - and deduct:
° non-cash fair value change of loan receivable from Valiance UG ofUS$84,766 ;
° the fair value change of derivative liability ofUS$23,802 ;
(1) Classification of
As part of the efforts to meet the Company’s obligations and build growth, the Company announced it is exploring multiple strategic alternatives, including the divestiture of Company-owned assets such as shares of
Settlement Agreement with Cherrypick Games:
As previously announced on
Further details on the arbitration award to Cherrypick and Kuuhubb’s Agreement with Cherrypick can be found in the Company’s consolidated financial statements for the year ended
Exploration of Strategic Alternatives to Enhance Shareholder Value
On
EBITDA - Non-IFRS Measure
EBITDA is intended to provide additional information to investors and analysts. The Company calculated EBITDA as set out on page 2 and 3 of this press release. EBITDA does not have any standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate EBITDA differently.
About
Cautionary Note Concerning Forward-Looking Information
This press release contains forward-looking information, including regarding the potential sale of Recolor OY. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to future revenue and development, growth of the Company’s business) are forward looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other thing: risks related to the growth strategy of the Company; the possibility that results from the Company’s growth plans will not be consistent with the Company's expectations; the early stage of the Company's development; competition from companies in a number of industries; the ability of the Company to manage expansion and integrate acquisitions into its business, future business development of the Company; the ability of the Company to complete the sale of Recolor OY on terms which are economic or at all; the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on its business segments, capital market conditions, restrictions on labour and international travel and supply chains; and the other risks disclosed under the heading "Risk Factors" in the Company's management discussion and analysis for the twelve months ended
Neither
For further information, please contact:
jouni@kuuhubb.com
Office: +358 40 590 0919
Investor Relations
bill@kuuhubb.com
Office: +1 (416) 479-9547
Source:
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