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RIWI Releases Q1 Financials
May 24, 2023 5:45 PM EDT | Source: RIWI Corp.
Toronto, Ontario--(Newsfile Corp. - May 24, 2023) - RIWI Corp. (TSXV: RIWI) (OTC Pink: RWCRF) (the "Company" or "RIWI"), a global trend-tracking and prediction technology firm, reported its financial results for the quarter ended March 31, 2023. All figures are reported in U.S. dollars unless otherwise indicated. RIWI's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").
RIWI Highlights (in U.S. Dollars):
RIWI earned $1,201,240 in revenues in the first quarter of 2023 compared to $897,398 for the three months ended March 31, 2022, an increase of 33.9%. That revenue consisted of $422,358 in transaction revenue, $312,217 in recurring revenue and $466,665 in project-based revenue. RIWI experienced a net loss of $127,943 for the three months ended March 31, 2023, as compared to a net loss of $174,781 for the three months ended March 31, 2022. The Company's transaction revenue has approximately doubled in the first quarter of 2023 versus the fourth quarter of 2022 and management is projecting continued growth of this revenue stream in subsequent quarters in the current calendar year.
Transactional revenue scales by increasing the conversion rates of survey respondents being matched to our platform and completing specific surveys as well as by increasing our respondent pool. To quantify the opportunity for scale, in December 2022, the volume of respondents had increased to approximately 3,000 per day from approximately 1,800 without the need for additional resources or computing power, as the Company noted in its MD&A of Q3 2022. In the first quarter of 2023, the average number of respondents exceeded 6,000 per day.
The Compass Data series product continued to see growth with new paying customers, and several new prospective client trials are underway. In addition, our China data series has a growing pipeline and is opening up several new sales and partnership opportunities for RIWI.
RIWI signed 15 new client contracts in the three months ended March 31, 2023, including contract signings with six new RIWI customers.
Thirteen clients were migrated to the new RIWI platform and we expect that the legacy RIWI platform will be fully retired by the end of 2023.
RIWI hired a new Chief Financial Officer subsequent to the first quarter to ensure excellence in financial operations, investor relations, commercial partnerships, governance and long-term growth.
RIWI was recognized in several publications in the first quarter, including the Bank of Canada's "Canadian Survey of Consumer Expectations-Fourth Quarter of 2022," The Canadian Broadcasting Corporation's "Inflation: les Canadiens forcés de réduire leur train de vie," CSA Group's "Out of Office: The Public Policy Implications of Remote Work," Latino America's "Mexico: a democracy without 'millennials'?" and The Public Policy Forum's "Symposium: How Polarization Manifests in Canada."
"The first quarter of 2023 is the result of a strategy that was developed at the end of 2021 and put into place in 2022. While we are still very early on in our transformation, we are starting to see the benefits of that work," says Greg Wong, Chief Executive Officer at RIWI.
RIWI CORP.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
For the three months ended March 31, 2023 and 2022
(Unaudited and expressed in U.S. dollars)
| Three months ended | ||||||
| March 31 | ||||||
| 2023 | 2022 | |||||
| Revenues (Note 9) | $ | 1,201,240 | $ | 897,398 | ||
| | ||||||
| Expenses | ||||||
| General and administrative (Note 10) | 579,566 | 560,305 | ||||
| Technology costs (Note 10) | 499,530 | 282,661 | ||||
| Sales and marketing (Note 10) | 268,175 | 289,027 | ||||
| Total expenses | 1,347,271 | 1,131,993 | ||||
| Loss before interest and taxes | (146,030 | ) | (234,595 | ) | ||
| | ||||||
| Net interest income | 19,495 | 1,553 | ||||
| Loss before taxes | (126,536 | ) | (233,042 | ) | ||
| | ||||||
| Income tax recovery/(expense) | (1,408 | ) | 58,261 | |||
| Net loss and comprehensive loss | $ | (127,943 | ) | $ | (174,781 | ) |
| | ||||||
| Net loss per share | ||||||
| Basic and diluted | $ | (0.01 | ) | $ | (0.01 | ) |
| | ||||||
| Weighted average number of common shares outstanding | ||||||
| Basic | 18,004,428 | 18,004,428 | ||||
| Diluted | 18,004,428 | 18,004,428 | ||||
RIWI CORP.
Condensed Consolidated Interim Statements of Financial Position
As at March 31, 2023 and December 31, 2022
(Unaudited and expressed in U.S. dollars)
| March 31, 2023 | December 31, 2022 | | ||||
| | ||||||
| Assets | ||||||
| | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 2,711,255 | $ | 2,350,718 | ||
| Accounts receivable | 671,972 | 835,886 | ||||
| Unbilled revenue (Note 9(b)) | 97,028 | 64,463 | ||||
| Prepaid expenses and other current assets | 120,247 | 90,578 | | |||
| Total current assets | 3,600,503 | 3,341,645 | ||||
| | ||||||
| Property and equipment (Note 4) | 3,325 | 4,688 | ||||
| Right-of-use assets (Note 5) | 7,150 | 17,874 | ||||
| Intangible assets (Note 6) | 181,531 | 192,167 | ||||
| Goodwill (Note 6) | 291,074 | 291,074 | | |||
| Total assets | $ | 4,083,583 | $ | 3,847,448 | | |
| | ||||||
| Liabilities | ||||||
| | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 277,384 | $ | 341,475 | ||
| Current portion of lease obligations (Note 8) | 9,107 | 22,024 | ||||
| Deferred revenue (Note 9(b)) | 644,511 | 298,430 | | |||
| 931,002 | 661,929 | |||||
| | ||||||
| Deferred tax liability | 36,756 | 37,337 | | |||
| Total liabilities | 967,758 | 699,266 | | |||
| | ||||||
| Shareholders' equity | ||||||
| | ||||||
| Share capital (Note 7) | 4,940,930 | 4,940,930 | ||||
| Contributed surplus (Note 7) | 2,573,517 | 2,477,931 | ||||
| Accumulated deficit | (4,398,622 | ) | (4,270,679 | ) | ||
| Total shareholders' equity | 3,115,825 | 3,148,182 | | |||
| Total liabilities and shareholders' equity | $ | 4,083,583 | $ | 3,847,448 |
RIWI's unaudited interim Financial Statements and Management's Discussion and Analysis for the three months ended March 31, 2023, are available via RIWI's website at https://riwi.com and on SEDAR at www.sedar.com.
About RIWI
RIWI is a global trend-tracking and prediction technology firm. On a monthly or annual subscription basis, RIWI offers its clients tracking surveys, continuous risk monitoring, predictive analytics and ad effectiveness tests in all countries - without collecting any personally identifiable data. https://riwi.com
RIWI CORP.
Signed: "Greg Wong"
Greg Wong, Chief Executive Officer
For more information, please contact investors@riwi.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION:
Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of Canadian securities legislation that involves risks and uncertainties. Forward-looking information included herein is made as of the date of this news release and RIWI does not intend, and does not assume any obligation, to update forward-looking information unless required by applicable securities laws. Forward-looking information relates to future events or future performance and reflects management of the Company's expectations or beliefs regarding future events. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/167348