Revenue growth up 165% year-over-year;
Completed $7.98 million equity offering, providing funding for increased sales, marketing and operational capabilities;
Subsequent to quarter end, ARHT entered into a strategic partnership with WeWork; the Company’s HoloPresence™ Solutions to be installed in up to 100 WeWork locations globally
TORONTO, May 13, 2021 (GLOBE NEWSWIRE) -- ARHT Media Inc. (“ARHT” or “the Company”) (TSXV:ART), the global leader in the development, production and distribution of high-quality, low latency hologram and digital content, today announced its financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Financial Update
Revenues for the first quarter of 2021 were $1.17 million, compared to $440 thousand in the first quarter of 2020, +165% year-over-year;
Cash and cash equivalents were $7.25 million as of March 31, 2021;
Net loss for the first quarter of 2021 was $750 thousand, compared to $1.10 million for the same period in 2020, loss reduced by 32% year-over-year;
First Quarter 2021 & Subsequent Business Highlights
The Company completed an equity offering for $7.98 million; the proceeds of which are being used to invest in growing revenue through additional sales staff and a significant investment in marketing, and infrastructure to deliver increased volume of business including; VP Business Development to manage the WeWork relationship, Director Supply Chain Management, Senior Producer, Project Manager and a Sales and Marketing Coordinator. Proceeds will also be used to expand the Company’s patent portfolio;
The Company entered into a strategic partnership with WeWork on May 10, 2021, to develop the only large scale HoloPresence™ network in the world. ARHT will integrate its holographic technology with WeWork’s global events offering to offer clients engaging virtual meetings and events; first phase includes installation of ARHT HoloPresence™ Solutions in 16 WeWork locations, with the potential for up to 100 office installations globally. This transformational deal will make ARHT technology readily available to enterprise organizations, will reduce the cost of delivery and is expected to deliver significant revenue to the Company in 2022 and beyond;
The Company announced its planned early retirement of 2020 Series A Debentures resulting in interest savings of approximately $80,000.
Q1 revenues featured almost equal weighting from permanent installations featuring HoloPod, HoloPresence and Capture technology, Virtual Global Stage (VGS) online activations and hybrid in person and online events.
“ARHT Media delivered strong first quarter results with year-over-year revenue growth of 165% and an improved margin profile, which was driven by increased demand for our holographic technologies across an expanding base of markets, customers, and regions,” commented Larry O’Reilly, Chief Executive Officer of ARHT Media. “During the quarter, we strengthened our balance sheet through the completion of a $7.98 million equity offering. This capital raise also allowed us to focus on executing on our growth strategy and to capitalize on a transformational partnership agreement with the leading global flexible office space provider, WeWork. We view this partnership as a game changing opportunity as we introduce our holographic technology to a new enterprise audience of over 3,500 WeWork members worldwide, make it more convenient for both existing and new clients to access our technology and as a means to drive significant revenue growth as the world’s first large scale HoloPresence network gets rolled out and we are extremely pleased with talent we have added to grow our business.”
About ARHT Media
ARHT Media's patented HoloPresence technology is a complete end-to-end solution that creates a sense of presence for audiences – as though the holographic presenter was actually live in the room. With no noticeable latency, ARHT Media makes two-way live communication with a 3D holographic presenter anywhere in the world possible. We can also playback pre-recorded content and 3D animations on our HoloPresence displays to deliver rich holographic experiences. Add to this our capability to stream the same content online on our premium Virtual Global Stage™.
ARHT Media trades under the symbol "ART" on the Toronto Venture Stock Exchange.
KCSA Strategic Communications
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, disclosure related to the Company's sales funnel; the Company's technology; the potential uses for the Company's technology; the future planned events using the Company's technology; the future success of the Company; the ability of the Company to monetize the ARHT Media technology; the development of the Company's technology; and interest from parties in ARHT's products. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "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". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic and competitive uncertainties; regulatory risks; risks inherent in technology operations; and other risks of the technology industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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