MIAMI, Aug. 20, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- On August 19, 2019, Miami-based United American Corp ("UnitedCorp" or the "Company") (OTC: UAMA) released the financial results of its first quarter ended June 30, 2019. It also provided corporate updates regarding regulatory, legal and operational matters.
UnitedCorp reported positive results for the second quarter of 2019 including revenues of US $1.4 million, consolidated net earnings of $470,828 and consolidated EBITDA of $557,247. Revenues accrued are exclusively from its Canadian subsidiary, which owns and operates its Data Center Dome Heat Stations and also provides technical and management consulting services.
2019Q1 Highlights
(all figures in US dollars)
- Revenue in the quarter of $1,425,382 was primarily generated through the Data Center Dome Heat Stations for hosting, management and power and includes $298,928 of consulting revenue with an operating profit of $951,482 (1), with heat station operations contributing $652,554 to the operating profit
- Consolidated net earnings for the quarter were $470,828
- Consolidated EBITDA for the period was $557,423(2)
- Consolidated EBITDA for the 6-month period of $1,196,548
- Increase in tangible assets to $4,689,092
- 5,000 servers in service at (8.5 megawatts) with 24.5M BTU of heat generated per hour
(1) Gross profit is a non-IFRS measure. Since the Company bills in advance for services and pays its main direct costs in arrears, gross profit as a percentage of revenue may be higher during the growth cycles.
(2) EBITDA is a non-IFRS measure
Financial Review
| 3 months ended | Annual year end | |||||||
| (US$) | ||||||||
| June 30, 2019 | March 31, 2019 | Dec 31, 2018 | ||||||
| Total Revenue | $ | 1,425,382 | $ | 1,423,485 | $ | 1,703,259 | ||
| Cost of Revenue | 473,900 | 568,802 | 911,574 | |||||
| Gross Profit | 951,482 | 854,684 | 791,685 | |||||
| General Expenses | 394,059 | 215,559 | 451,843 | |||||
| Financial Expenses | 33,693 | 42,130 | 37,363 | |||||
| Depreciation | 71,697 | 58,963 | 52,786 | |||||
| Foreign Exchange | (18,796 | ) | 149,618 | - | ||||
| Net Income | 470,653 | 388,414 | 249,693 | |||||
| EBITDA | 557,423 | 639,125 | 339,842 | |||||
While the Company will continue to develop its Data Center Heat Station business in 2019 as a primary source of revenue, it will also continue to develop its business in other strategic areas.
Financial Statements
The Company's financial statements are available at www.otcmarkets.com under UnitedCorp's profile.
CPTAQ Matter
In April 2018, the Company's then landlord received a Notice of Infraction from the Commission de Protection du Territoire Agricole de Quebec ("CPTAQ"), the provincial body which oversees agricultural land in Quebec, related to its BlockchainDome Heat Campus #1. The Notice questioned whether the BlockchainDome Heat Station was an appropriate use of agricultural land, as based on their perception the BlockchainDome Heat Station was a non-agricultural commercial operation. On June 27, 2018, the Company and its legal counsel addressed the complaint at a hearing of the CPTAQ and stated its position that the operation was fully compliant with all existing rules and regulations, as the operation's final output was for agricultural purposes. Furthermore, the BlockchainDome Heat Station is consistent with the province's sustainable development guidelines and policies of encouraging more local food production.
The matter was then transferred to an independent provincial administrative tribunal for further review. Subsequently on March 26, 2019, the Company, its Counsel and its agricultural experts addressed the Tribunal Administratif du Québec (the "Tribunal") at a hearing on this matter. The Tribunal is an independent provincial body which is intended to be a non-judicial arbitrator for matters regarding provincial boards. The Tribunal has no judicial or injunctive powers and decisions are appealable by companies and individuals to judicial courts up to and including the Québec Court of Appeal.
On April 25, 2019 the Company received notification that the Tribunal had rejected the Company's position and supported the CPTAQ complaint. The Company and its Counsel believe that the Tribunal erred both in fact and in law in rendering its decision and as such on May 15, 2019, the Company filed for permission to appeal the decision to the Quebec Court within the 30 days prescribed and this proceeding was heard on August 15, 2019 and the decision is currently under reserve. The filing is available at:
http://www.unitedcorp.com/wp-content/uploads/Demande-permission-appeler.pdf
The Company remains of the opinion that Data Center Dome Heat Stations are a permitted use. However there are various other legal and administrative options available to it including a formal application to the CPTAQ for approval which the Company is currently pursuing.
United America Corp versus Bitmainet al.
Further to the litigation announced on December 6, 2018 against Bitmain, Bitcoin.com, Roger Ver, Kraken Bitcoin Exchange and others, Alleging Hijacking of the Bitcoin Cash Network, the Company has not yet been able to serve all defendants due to their international locations and it has hired respective process servers in China, Japan, France and the Caymans, to undertake this task. The Court has granted the Company until October 15, 2019 to complete service. The Company is also awaiting the outcome of a motion by some defendants to dismiss the action in its entirety.
TNW Networks
On June 30, 2017, the Company announced the intent to acquire TNW Networks Corp. ("TNW Networks"). The potential acquisition of TNW Networks' assets is deemed by Management to support the Company's development plan, including TNW Wireless and iFramed. The Company was aware that on November 18, 2016, two of TNW Networks' clients (the "Petitioners") filed a Notice of Intention to make a Proposal pursuant to the Bankruptcy and Insolvency Act. This led to proceedings under the Companies' Creditors Arrangement Act (the "Proceedings") on November 25, 2016.
As a result of the Proceedings, certain of TNW client relationships and 3rd party assets, both of which TNW Networks and the Company believe were not assets of the Petitioners, were nevertheless claimed in the Proceedings by the CCAA Monitor. In two instances during the course of the Proceedings, the determination of ownership by the Monitor was appealed to the British Columbia Court of Appeal and in both instances the Court of Appeal ruled unanimously against the Monitor. On March 18, 2019, a portion of certain 3rd party assets were released by the Monitor and will be transferred to the Company. The exact list and value of such assets is currently being determined.
On April 23, 2019, the British Columbia Court of Appeal granted yet a third leave to appeal related to determination of ownership of the balance of assets in question. The date for the appeal has now been set at October 15, 2019.
About United American Corp
Established in 1992, United American Corp is a Florida-based development and management company focusing on telecommunications and information technologies. The company currently owns telecommunications assets and holds the rights to manage a portfolio of patents and proprietary technology in telecommunications, social media and Blockchain technology, and owns and operates the BlockchainDomes which are designed to provide heat for agricultural operations using computer equipment in naturally cooled data centers where efficiency and low-cost operations are a priority.
About TNW Wireless Inc.
TNW Wireless is a licensed wireless operator for wholesale and retail services in Canada and a wholly-owned subsidiary of United American Corp. The company currently holds 25MHz bandwidth tier-2 850 MHz licences and is a registered wireless carrier. It is licensed to provide communication services to the Northwest region of Canada and can provide global communication services through its proprietary iPCS Smartphone-over-IP technology.
This news release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors that may be beyond the Company's control. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made, and the Company assumes no obligation to update forward-looking statements should circumstances in management's expectations or opinions change.
Source:
United American Corp
Contact:
Jenna Trevor-Deutsch
Investor Relations
investorrelations@unitedcorp.com