Highlights:
- Revenues of
US$7,803,832 for the year endedJune 30, 2020 . - Recolor recognized revenue of
US$6,795,445 for the year endedJune 30, 2020 . - Commercialization of next-generation Match-3 game platform provides entry into multi-billion dollar gaming genre.
- Sale of assets such as Recolor to fund next-generation game commercialization initiatives under consideration.
CEO’s Message:
“Kuuhubb is a young company in the midst of a transformation. Up until this point, we have been focused on the acquisition of proven, yet under-appreciated assets which display the potential to capture a global user following. Developing that potential was achieved with Recolor through investing talent and resources into the technology, making numerous product improvements, pursuing partnerships and effectively marketing to our target audience to ultimately build a loyal user community.
However, the success of our company does not revolve around one game title. Rather, our experience and success with Recolor has provided us the expertise and confidence to identify emerging gaming trends, expand our game portfolio and focus our resources in developing and marketing our next generation of exciting games. For us at
As part of the transformation and increased focus on Match-3 games we have decreased overall costs by over
As stated in our 2020 financial report, we are in ongoing, advanced discussions for the potential divestment of Recolor. Realizing Recolor’s future value now will allow us to invest in our next generation games. We strongly believe that our greatest opportunity for growth and long-term success lies in creating and operating games we develop ourselves using proprietary software such as our Match-3 engine combined with strategic alliances with strong partners adding not only financial strength, but industry specific expertise and synergistic benefits. Kuuhubb’s strengths – innovation, data driven approach and a unique talent pool in
Audited Annual Financial Results for the Financial Year Ended
- The Company generated a total of
US$7,803,832 revenues for the year endedJune 30, 2020 .Recolor Oy recognized revenue ofUS$6,795,445 for the year endedJune 30, 2020 before it was classified as asset held for sale(1). - The Company also recognized revenue of
US$1,008,387 for the year endedJune 30, 2020 from its continuing operations. This revenue was generated mainly from the subscriptions to, and in-application sale of virtual goods from its “My Hospital” game totalingUS$0.79 million and advertising revenue ofUS$0.23 million . - The Company incurred cost of sales of
US$631,306 for the year endedJune 30, 2020 in its continuing operations. The cost of sales is predominantly related to the application marketplace (such asApple App Store and Google Play) fees and other third-party direct costs. - The Company incurred consulting and professional fees of
US$939,124 for the year endedJune 30, 2020 . These fees were related to Kuuhubb’s audit fees, general legal counsel and other professional services. - The Company’s
Recolor Oy showed EBITDA ofUS$538,655 by adjusting the net income before tax from discontinued operations ofUS$491,370 with the following items:
Add back of:
- Non-cash depreciation and amortization ofUS$18,647 ;
- Net interest and accretion expenses ofUS$25,612 ;
- Foreign exchange loss ofUS$3,026 - The Company showed EBITDA of negative
US$3,893,435 by adjusting the net loss before tax from continuing operations ofUS$6,274,846 with the following items:
Add back of:
- Non-cash depreciation and amortization ofUS$812,812 ;
- Non-cash share-based compensation ofUS$860,870 ;
- Net interest and accretion expenses ofUS$984,279 ;
- Non-cash fair value change of loan receivable from Valiance UG ofUS$405,703
and deduct:
- Fair value change of derivative liability ofUS$677,806 ;
- Foreign exchange gain ofUS$4,446 - The authorized share capital of the Company consists of an unlimited number of common shares. As at
October 26, 2020 , the Company had outstanding 55,752,709 common shares and 7,450,000 stock options. - The Company also has two convertible debentures with face value of €2,000,000 each. The debentures can be converted to approximately 6,408,727 common shares upon conversion.
(1) Classification of
As part of the efforts to meet the Company’s obligations and build growth, the Company announced it is exploring multiple strategic alternatives, including the divestiture of Company-owned assets such as shares of
Subsequent Events to Fiscal Year End:
Subsequent to the fiscal year ended
Closing of Non-Convertible Debenture Financing
On
The Company intends to use the proceeds from the Offering for business development and general working capital purposes. Full details of the Offering are available in the Company’s news release dated
Settlement Agreement with Cherrypick Games
On
Further details on the arbitration award and agreement between Cherrypick and Kuuhubb’s can be found in the Company’s consolidated financial statements for the year ended
Exploration of Strategic Alternatives to Enhance Shareholder Value
On
On
FTC Settlement
During the year ended
EBITDA - Non-IFRS Measure
EBITDA is intended to provide additional information to investors and analysts. The Company calculated EBITDA as set out on page 2 of this press release. EBITDA does not have any standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate EBITDA differently.
About
Cautionary Note Concerning Forward-Looking Information
This press release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to future revenue and development, growth of the Company’s business) are forward looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other thing:, risks related to the growth strategy of the Company; the possibility that results from the Company’s growth plans will not be consistent with the Company's expectations; the early stage of the Company's development; competition from companies in a number of industries; the ability of the Company to manage expansion and integrate acquisitions into its business, future business development of the Company, including the ability to complete the sale of Recolor OY and the Codecacao Acquisition on terms which are economic or at all; the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on its business segments, capital market conditions, restrictions on labour and international travel and supply chains; and the other risks disclosed under the heading "Risk Factors" in the Company's management discussion and analysis for the twelve months ended
Neither
For further information, please contact:
jouni@kuuhubb.com
Office: +358 40 590 0919
Investor Relations
bill@kuuhubb.com
Office: +1 (416) 479-9547
Source:
2020 GlobeNewswire, Inc., source