SAINT-HUBERT, Quebec, May 27, 2021 (GLOBE NEWSWIRE) -- Urbanimmersive Inc. (“Urbanimmersive,” the “Company” or “UI”) (TSV-V UI) (OTCQB: UBMRF) today announced select financial results and presents business highlights for the second quarter of 2021 ended March 31, 2021. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at https://www.sedar.com/.
For its second quarter of 2021, the Company generated revenues of $982k, an increase of 10.2% compared to Q2-20;
During this quarter, the balance of the convertible debentures outstanding of a nominal value of $3.07m were converted into common shares, for a cumulative amount converted of $4.5m since the beginning of the fiscal year;
As at March 31, 2021, the Company's cash position totaled $2.56m, a significant increase of $1.84m compared to the previous quarter and totaled nearly $4.0m in early April 2021, following the closing of a $3.0m private placement;
During the quarter, the Company launched its innovative interactive 3D tour solution, UiMeet3D, as well as a version 2.0 of its UI Capture mobile application. The Company has also filed a first patent application for UiMeet3D;
During the quarter, the Company began selling its first annual licenses in the security market (ref. police and fire departments) for the use of its immersive 3D tours;
SELECTED FINANCIAL INFORMATION
In thousands $
In thousands $
In thousands $
In thousands $
Gross Merchant Volume (GMV) *
COGS and direct charges
Other expenses ***
Net income (loss)
Basic net income (loss) per share
* GMV represents the value of all transactions performed by merchants using Urbanimmersive’s business solutions for invoicing and/or collecting payments for their services
** Q1-21 EBITDA adjusted for subsidiary setup costs ($17k) and legal fees incurred for the Company’ listing on OTCQB ($17k).
*** The increase in other expenses is mainly explained by the non-recurring adjustment required to the theoretical interests and fair values of embedded derivatives on convertible debentures upon conversion into shares for a net adjustment of $549k for Q2-21 and $1,599k for the first 6 months of the current fiscal year.
“During the quarter, we had to navigate once again in a particularly difficult economic environment with the number of real estate transactions down significantly (-50%) while compared to same period last year and which is largely attributable to the current health crisis. In this seller market, many transactions are even completed before being listed, meaning no virtual tours are produced. In that context, we are proud to have been able to deliver those results and very encouraged about our future, in particular with the strong growth observed recently in the use of our immersive 3D tours and floor plans services and our positioning on the market, while expecting a return to normal in real estate activities later this year.
Although confinement measures and the scarcity of real estate transactions temporarily affect our results, the current health crisis has accelerated significantly the adoption and use of virtual environments in many markets (e.g. residential and commercial real estate, retail, asset management, industrial, security, etc.) and lead us to believe that the future of Urbanimmersive is very promising in the medium and long term. The support of strategic investors who have decided to participate in our recent private placement or to convert their debentures provides further validation of our business and our game plan.
In addition, the fact of having solidified our financial position through the conversion into shares of $4.5m convertible debentures and the closing of a $3.0m private placement gives us the flexibility to accelerate the commercialization of our new innovative products and be more active looking at some strategic opportunities," said Simon Bédard, Chief Financial Officer of Urbanimmersive.
“This very important quarter set the foundations for new growth drivers and sources of recurring income for our Company. First, we anticipate that our unique interactive 3D tours (UiMeet3D), for which demand is already very strong, will be able to be used very soon in many business segments, in particular by real estate agents and retailers. The announcement of our first contracts to offer immersive 3D tours as an annual license in new markets such as the security market also confirms all the competitive advantages and potential of our solutions in such environments and should contribute to increase our recurring revenues and diversify our operations. Our preliminary agreement with Prospect Software should also allow us to expand our activities more quickly with major players in the real estate space. Those key milestones, our recent progress in product development, our solid financial position and our strategic positioning allow us to look to the future with great optimism,” said Ghislain Lemire, President and CEO of Urbanimmersive.
The Company has also issued 286,302 shares at a price of $0.165 to some Officers and employees as variable compensation covering the most recent quarter.
TSX Venture Exchange has not reviewed this press release and has neither approved nor disapproved the contents of this press release.
Investor Video Conference Call
UI will be hosting a video conference to discuss those second quarter financial results and answer questions at 1p.m. (ET) on May 27, 2021. To participate to the video conference, please use the following link: https://urbanimmersive.zoom.us/j/96323915925.
Urbanimmersive is a SaaS business management solution that provides mission-critical solutions to visual content providers serving the real estate residential, commercial, construction, and local business markets. Urbanimmersive’ platform helps customers to increase operational productivity and delivering the full potential of visual content creations through leading-edge websites builder tool, AI-backed image indexing, robust file transfer systems, and interactive visual technology solutions. The firm's core technology is a 3D emulator powered by a visual content recognition post-production algorithm that delivers online and offline alternatives to traditional 3D engines for the creation of immersive digital environments. Learn more at urbanimmersive.com.
Caution of Forward-Looking Statements
Certain statements in this news release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management estimates or opinions change.
For more information, please contact:
President & CEO
514-394-7820 X 202
Simon Bédard, CA, CPA, CFA, MBA
Chief Financial Officer
514 394-7820 X 224