Highlights:
- Revenues of
US$1,485,348 on a combined basis for the three months period endedSeptember 30, 2020 . - Recolor recognized revenue of
US$1,305,859 for the three months period endedSeptember 30, 2020 . - Ongoing efforts of sale of assets such as Recolor to fund next-generation game commercialization initiatives under consideration.
CEO’s Message:
Financial Results for the Three Months Period Ended
- The Company also recognized revenue of
US$179,489 for the three months period endedSeptember 30, 2020 from its continuing operations. This revenue was generated mainly from the subscriptions to, in-application sale of virtual goods from its “My Hospital” game and related advertising revenue. - The Company generated a total of
US$1,485,348 revenues for the three months period endedSeptember 30, 2020 .Recolor Oy recognized revenue ofUS$1,305,859 for the three months period endedSeptember 30, 2020 and the Recolor revenue was classified as part of the discontinued operations(1). - The Company incurred cost of sales of
US$130,045 during the three months endedSeptember 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$162,441 during the three months endedSeptember 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$7,428 by adjusting the net income before tax from discontinued operations ofUS$3,096 with the following items:
Add back of:
° non-cash depreciation and amortization of
° net interest and accretion expenses of
- The Company showed EBITDA of negative
US$831,920 by adjusting the net loss before tax from continuing operations ofUS$1,358,244 with the following items:
Add back of:
° non-cash depreciation and amortization of
° non-cash share-based compensation of
° net interest and accretion expenses of
° non-cash fair value change of loan receivable from Valiance UG of
° foreign exchange loss of
and deduct:
° the fair value change of derivative liability of
- The authorized share capital of the Company consists of an unlimited number of common shares. As at
November 30, 2020 , the Company had outstanding 55,752,709 common shares, 7,100,000 stock options and 2,200,000 warrants. - 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
Closing of Non-Convertible Debenture Financing:
As previously announced, on
The Company will 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 to Cherrypick and Kuuhubb’s Agreement with Cherrypick can be found in the Company’s consolidated financial statements for the year ended
Exploration of Strategic Alternatives to Enhance Shareholder Value
On
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