TORONTO, May 22, 2019 (GLOBE NEWSWIRE) -- Datametrex AI Limited (“Datametrex” or the “Company”) today released its financial results for the three (“Q1 2019”) months ended March 31, 2019. For Q1 2019, the Company reported revenues of $498,596 and EBITDA of $(723,529), an increase of 39% and an improvement of 54% respectively as compared to the three months ended March 31, 2018.
“In Q1 2019, the Company achieved key milestones and made significant strides in strengthening its AI platform and offering,” said Andrew Ryu, the Chief Executive Officer and Chairman of the Company. “The Company anticipates continued demand for its solutions not only in government but across Fortune 1000 organizations.”
Further commenting on the Q1 2019 results, Jeff Stevens, President of the Company stated “Datametrex sees tremendous opportunity across the Asian markets where it is gaining wide acclaim. This market has the potential to drive strong revenue across a variety of multinationals.”
Other highlights for Q1 2019:
- Net loss for Q1 2019 was $904,792, an improvement of 61% from the same period in 2018
- Successfully completed a non-brokered private placement raising gross proceeds of $1,102,200.
- The Company promoted Marshall Gunter from CTO to CEO of its wholly subsidiary, Nexalogy Environics on January 25th 2019.
- The Company was successful in securing new contracts with HomePlus, Korea Press Foundation and was able to secure an additional contract with Lotte Group with a value of approximately $300,000.
Consolidated Financial Highlights
| For the three months ended | ||||
| March 31, 2019 | March 31, 2018 | |||
| Revenue | 498,565 | 358,423 | ||
| Expenses | ||||
| Direct costs | 102,919 | - | ||
| Selling, general and administrative | 835,910 | 759,231 | ||
| Depreciation and amortization | 203,559 | 742,911 | ||
| Other expenses | 653,489 | 1,737,538 | ||
| Total expenses | 1,795,877 | 3,239,680 | ||
| Loss from operations | 1,297,312 | 2,881,257 | ||
| Loss before taxes | 950,041 | 2,337,209 | ||
| Income tax benefit | (45,249 | ) | (45,249 | ) |
| Net Loss | 904,792 | 2,291,960 | ||
| Loss per share: | ||||
| Basic and diluted | 0.004 | 0.012 | ||
| EBITDA | (723,529 | ) | (1,557,199 | ) |
| Adjusted EBITDA | (712,256 | ) | (415,934 | ) |
| Adjusted EBITDA per Share | ||||
| (basic and diluted) | (0.003 | ) | (0.002 | ) |
Note: EBITDA and Adjusted EBITDA are non-GAAP/IFRS figures. “EBITDA” represents net income plus income tax, finance expense and depreciation. “Adjusted EBITDA” represents EBITDA plus share-based compensation and one-time costs. “Adjusted Net Income” represents net income plus one-time finance expenses.
The Company believes that Adjusted EBITDA is useful additional information to management, the board and investors as it provides an indication of the operational results generated by its business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and amortization and it excludes items that could affect the comparability of our operational results and could potentially alter the trends analysis in business performance. Excluding these items does not necessarily imply they are non-recurring, infrequent or unusual. Adjusted EBITDA is also used by some investors and analysts for valuing a company. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to operating earnings or net earnings determined in accordance with IFRS as an indicator of the Company’s financial performance or as a measure of the Company’s liquidity and cash flows. Adjusted EBITDA does not take into account the impact of working capital changes, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the consolidated statements of cash flows.
Non-GAAP financial measures do not have standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Specific items may only be relevant in certain periods. For reconciliation of non-GAAP financial measures please refer to the Company’s Management Discussion and Analysis for the period ended March 31, 2019.
The financial statements, notes to the financial statements and Management’s Discussion and Analysis for the three-month period ended March 31, 2019 are available on SEDAR at www.sedar.com.
In addition, the Company announces that its Chief Financial Officer, Mr. Randy Clifford, has resigned to pursue other opportunities. The directors of the Company have appointed Mr. Steve Kang as the Company’s Chief Financial Officer. The Company wishes Mr. Clifford success in his future endeavours.
“Mr. Kang has the necessary public market experience and expertise to assist and guide Datametrex to the next level,” stated Ms. Janeen Stodulski, a director and chair of the Audit Committee.
About Datametrex AI Limited
Datametrex AI Limited is a technology focused company with exposure to Artificial Intelligence and Machine Learning through its wholly owned subsidiary, Nexalogy (www.nexalogy.com) and Implementing Blockchain technology for secure Data Transfers through its investee company, Graph Blockchain (www.graphblockchain.com).
Additional information on Datametrex is available at: www.datametrex.com
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For further information, please contact:
Jeffrey Stevens – President & COO
Email: jstevens@datametrex.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. The Company is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Datametrex cannot assure investors that actual results will be consistent with these forward looking statements and Datametrex assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.