MIAMI, April 03, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- On March 31, 2019 Miami-based United American Corp ("UnitedCorp" or the "Company") (OTC: UAMA) released its financial results for year-end December 31, 2018 and provided a corporate update from management related to its three strategic areas; data centers/ BlockchainDome Heat Stations, fixed and wireless telecommunications, and intellectual property applications and technology related to social media, telecommunications and blockchain technology.
UnitedCorp reported positive results for 2018 including revenues of US $1.7 million, consolidated net earnings of $249,693 and consolidated EBITDA of $339,842. Revenues accrued exclusively from its Canadian subsidy, which owns and operates its BlockchainDome Heat Stations and which yielded $446,506 in net profit.
BlockchainDome operations began in May 2018 with 1,000 servers going online. The number was increased to 5,000 in 4 BlockchainDome Heat Stations progressively up to November 15th for a total of 8.5 megawatts. Revenues therefore represent a ramp up of operations during that period, with December being the first full month of operations with 5,000 servers online. In February 2019 the Company purchased the property where the 4 BlockchainDomes are located, which is not yet reflected as an asset in the current financial statements.
2018 Annual Highlights
(all figures in US dollars)
- Generated annual revenue of $1,703,259(1) primarily through BlockchainDome Heat Station for hosting, management and power over an 8 month period of operation with a gross profit of $791,685(2)
- Annual net earnings of $446,506 primarily on segregated BlockchainDome operations and $249,693 for UnitedCorp on a consolidated basis
- EBITDA for the period was $339,842(3)
- Increase in tangible assets to $3,036,430
- 5,000 miners in service at year end (8.5 megawatts)
(1) Revenue is based on approximately 8 months of progressive deployment of 5,000 miners as of December 31st
(2) Gross profit consists of total BlockchainDome billings less direct costs (mainly electricity) and is a non-IFRS measure. Since the Company bills in advance for services and pays its main direct costs in arrears, gross profit as a percentage of revenue may be higher during the current growth cycle.
(3) EBITDA is a non-IFRS measure
Financial Review
| Year Ended | ||
| (US$) | ||
| Dec 31, 2018 | Dec 31, 2017 | |
| Total Revenue | $ 1,703,259 | - |
| Cost of Revenue | 911,574 | - |
| Gross Profit | 791,685 | - |
| General Expenses | 451,843 | 354,552 |
| Financial Expenses | 37,363 | - |
| Depreciation | 52,786 | - |
| Net Income | 249,693 | (354,552) |
| EBITDA | 339,842 | (354,552) |
While the Company will continue to develop its BlockchainDome Heat Station business in 2019 as a primary source of revenue, it will also continue to develop its business in other strategic areas. The Company also intends to re-examine the feasibility of up-listing to the OTCQB board or other exchanges as to be determined.
Hyperscale Data Centers:
The Company has been refining its proprietary passive cooling ground-coupled heat-exchanger technology developed for its BlockchainDomes to be used for hyperscale data centers. This is in response to the increasing demand for cloud computing, much of which is to support the growth in consumer and corporate applications or "apps". Such data centers have significant cooling requirements for their servers which are often one of the major cost components of operations. Hyperscale data centers are often located in cooler climates to reduce the cost of server cooling. The company has developed and filed a patent application for an airtight negative pressure server enclosure which, when used in conjunction with its passive cooling ground-coupled heat-exchanger technology, can reduce costs of operations even in environments where typically there is little or no cool ambient air as it does not require mechanical or HVAC-based cooling systems.
Telecommunications:
TNW Wireless Inc.
The Company recently announced that it will complete the acquisition of TNW Wireless Inc. ("TNW Wireless") from Investel Capital Corporation (Canada) later this April after Canadian Radio-television and Telecommunications Commission ("CRTC") Decision 2019-56 ruled on February 28, 2019 that Bell Mobility Inc. ("Bell") and TELUS Corporation (TELUS) were required to provide it with national roaming services as mandated by the CRTC. It has already initiated the interconnection process with Bell and TELUS as well as with Rogers Communications Canada Inc. The acquisition is subject to approval of Industry Science and Economic Development Canada ("ISED") and the Company has already submitted all necessary information to ISED.
TNW Wireless will focus initially on the development of connectivity within its licensed territory along the Alaska Highway, which is currently underserved by other carriers. TNW Wireless has designed self-contained transceiver modules for rapid deployment along the highway.
Immediately after ruling on TNW's application, the CRTC issued a Notice of Consultation, 2019-57 which will form the basis for a new competitive framework for the future of the Canadian wireless industry. TNW intends to submit interventions and appear in person during the CRTC hearings and be an active participant throughout the entire process. The consultation will focus on the possible use of incumbent national wireless networks by smaller licensed wireless carriers such as TNW to allow them to offer national coverage with the goal of increasing competition in the Canadian market.
Last Mile Solutions
The Company is currently piloting, in partnership with a local Quebec utility, an innovative last mile solution developed in-house to provide wireless broadband connectivity to underserved residential and commercial subscribers. This will provide subscribers with a faster and less expensive option over their current DSL, cable or point to multipoint service. Utilizing the partner's utility poles, the Company installed its own fibre cable along the pilot service area which services subscribers through wireless access points, therefore without the need for a physical connection. Unlike traditional high speed Internet service, this technological approach is less restrictive with bandwidth use and will permit high density connectivity to each subscriber.
Once the pilot is complete later in the 2nd quarter of 2018, the Company will finalize its business plan to roll out the service as a separate operating division and will provide updates as these plans develop.
Other Telecommunications Assets
UnitedCorp will continue to defend its position with respect to certain third party telecommunications assets and operations to which it has an interest and which are currently in dispute in a Vancouver proceeding. Recently, some of these assets were released to the third parties. The Company is supporting litigation to retrieve the balance of the assets and operations which will be used to support the Company's current and future telecommunications operations.
Intellectual Property Technology Applications:
The Company has always believed strongly in innovation and the value of developing a portfolio of high quality intellectual property. It currently maintains the rights, through development or acquisition, to a number of intellectual properties and patents pending under its intellectual property portfolio. It intends to continue this strategy and exploit these assets as part of its business plan. This includes BlockchainDomes, iFramed social media posting technology, iPCS Smartphone over IP, BlockNum blockchain over PSTN and others.
The company will continue its focus on the development of intellectual property and technology solutions such as its Last Mile initiative. It is currently developing several applications for transactions secured on the blockchain which have resulted from experience gained with the BlockchainDomes.
It will also continue to pursue any infringement of its intellectual property including current actions against Snap Inc., Facebook and Instagram for infringement on iFramed and will seek appropriate remedies.
"2018 was a breakout year for United American Corp," stated UnitedCorp CEO Benoit Laliberte. "We began the year with some great ideas and a determined team of professionals who really wanted to put these ideas to work, coupled with an ambitious implementation timeline. The operational result was even better than we expected. With the BlockchainDomes now proven to work well in all seasonal conditions and with them now generating steady revenues, in 2019 we can devote more time to our other strategic areas and build on our experience, in addition to growing the BlockchainDome business."
Financial Statements
The Company's financial statements are available at www.otcmarkets.com under UnitedCorp's profile.
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 pending the acquisition by UnitedCorp. 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.
About the BlockchainDome
The UnitedCorp BlockchainDome Heat Station was designed to provide heat for agricultural operations using ASIC (application-specific integrated circuit chip) mining operations where efficiency and low-cost operations are a priority. The BlockchainDomes, which utilize a proprietary passive cooling ground-coupled heat-exchanger technology, are particularly suited for situations where rapid cluster deployment is required as they can be erected and commissioned in a matter of weeks rather than up to a year using the traditional "Bricks and Mortar" approach. BlockchainDomes can be configured in a wide range of sizes to service any type of greenhouse operation.
How BlockchainDomes work can be seen at: https://www.youtube.com/watch?v=YDmhhaJKHLg
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
Director Investor Relations
investorrelations@unitedcorp.com
604 398 5000 ext: 109
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/945a707f-e91d-4728-a19b-5518ce87a40a