Oct 25, 2023
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RIWI Releases Q2 Financials
August 23, 2023 4:42 PM EDT | Source: RIWI Corp.
Toronto, Ontario--(Newsfile Corp. - August 23, 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 June 30, 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 Highlights for the three months ended June 30, 2023 – in US Dollars:
- RIWI earned $928,415 in revenues in the second quarter of 2023 compared to $368,680 for the three months ended June 30, 2022, an increase of 151.8%. That revenue consisted of $236,228 in transaction revenue, $357,782 in recurring revenue and $334,405 in project-based revenue. RIWI experienced a net loss of $162,190 for the three months ended June 30, 2023, as compared to a net loss of $658,318 for the three months ended June 30, 2022.
- Recurring revenues in the second quarter of 2023 increased by $330,882 compared with the second quarter of 2022 and increased by 14.6% compared with the first quarter of 2023, from $312,217 to $357,782.
- RIWI signed 12 new client contracts in the three months ended June 30, 2023, including contract signings with four new RIWI customers.
- The RIWI board was refreshed with new executives that bring extensive experience in both market research, strategy and brand building in order to help management scale for the future. The size of the Board was decreased from 7 members to 5. Profiles of the RIWI board members can be found at https://riwi.com/team_role/directors/.
- Seventeen more clients were migrated to the new RIWI platform, resulting in 30 total clients that are fully migrated, enabling these clients to conduct enriched analytics and buy additional products and services sold on the platform. Management continues to expect that the legacy RIWI platform will be fully retired by the end of 2023.
- RIWI strengthened its leadership team by hiring a new head of its Insights and Implementation team subsequent to the second quarter. Enriching RIWI's market research skills in both quantitative and qualitative deliverables will help to create business opportunities for new client projects and assist in growing the Company's services business by offering current and future clients actionable insights from collected data.
- RIWI was recognized in several major publications and forums in the second quarter of 2023, including: AidData's publication, "Media resilience in post-Soviet Europe and Eurasia in the face of malign foreign actors"; the Canada School of Public Service (CSPS) Virtual Café series; and The World Bank's publication, "How Well Do Internet-Based Surveys Track Labor Market Indicators in Middle-Income Countries?"
"RIWI's investment in our platform, unique data, and insights helped us achieve double-digit growth in our recurring revenue segment," says Greg Wong, Chief Executive Officer of RIWI. "We anticipate we will achieve above the market research industry average growth rates in the current calendar year, and become cash flow positive sometime in 2024."
RIWI CORP.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
For the three and six months ended June 30, 2023 and 2022
(Unaudited and expressed in U.S. dollars)
| Three months ended | Six months ended | |||||||||||||||
| June 30 | June 30 | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenues (Note 9) | $ | 928,415 | $ | 368,680 | $ | 2,129,655 | $ | 1,266,078 | ||||||||
| Operating expenses | ||||||||||||||||
| General and administrative (Note 10) | 446,687 | 552,543 | 1,026,253 | 1,112,847 | ||||||||||||
| Technology costs (Note 10) | 382,217 | 236,878 | 881,747 | 525,905 | ||||||||||||
| Sales and marketing (Note 10) | 236,465 | 305,021 | 504,640 | 587,682 | ||||||||||||
| Total operating expenses | 1,065,369 | 1,094,442 | 2,412,640 | 2,226,435 | ||||||||||||
| Operating loss before other income (expense) | (136,954 | ) | (725,762 | ) | (282,985 | ) | (960,357 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 23,112 | 9,203 | 42,873 | 10,756 | ||||||||||||
| Gain on asset disposal | 971 | - | 971 | - | ||||||||||||
| Other expenses (Note 10) | (36,962 | ) | - | (37,228 | ) | - | ||||||||||
| Total other income (expense) | (12,879 | ) | 9,203 | 6,616 | 10,756 | |||||||||||
| Loss before income taxes | (149,833 | ) | (716,559 | ) | (276,369 | ) | (949,601 | ) | ||||||||
| Income tax recovery/(expense) | (12,357 | ) | 58,582 | (13,764 | ) | 116,843 | ||||||||||
| Net loss and comprehensive loss for the period | $ | (162,190 | ) | $ | (657,977 | ) | $ | (290,133 | ) | $ | (832,758 | ) | ||||
| Net loss per share | ||||||||||||||||
| Basic and diluted | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.02 | ) | $ | (0.05 | ) | ||||
| Weighted average number of common shares outstanding | ||||||||||||||||
| Basic | 18,004,428 | 18,004,428 | 18,004,428 | 18,004,428 | ||||||||||||
| Diluted | 18,004,428 | 18,004,428 | 18,004,428 | 18,004,428 | ||||||||||||
RIWI CORP.
Condensed Consolidated Interim Statements of Financial Position
As at June 30, 2023 and December 31, 2022
(Unaudited and expressed in U.S. dollars)
| June 30, 2023 | December 31, 2022 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 2,333,640 | $ | 2,350,718 | ||
| Accounts receivable | 510,256 | 835,886 | ||||
| Unbilled revenue (Note 9(b)) | 150,664 | 64,463 | ||||
| Prepaid expenses and other current assets | 97,200 | 90,578 | ||||
| Total current assets | 3,091,760 | 3,341,645 | ||||
| Property and equipment (Note 4) | 2,525 | 4,688 | ||||
| Right-of-use assets (Note 5) | - | 17,874 | ||||
| Intangible assets (Note 6) | 170,896 | 192,167 | ||||
| Goodwill (Note 6) | 291,074 | 291,074 | ||||
| Total assets | $ | 3,556,255 | $ | 3,847,448 | ||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 162,192 | $ | 341,475 | ||
| Current portion of lease obligations (Note 8) | - | 22,024 | ||||
| Deferred revenue (Note 9(b)) | 369,585 | 298,430 | ||||
| 531,777 | 661,929 | |||||
| Deferred tax liability | 36,175 | 37,337 | ||||
| Total liabilities | 567,952 | 699,266 | ||||
| Shareholders' equity | ||||||
| Share capital (Note 7) | 4,940,930 | 4,940,930 | ||||
| Contributed surplus (Note 7) | 2,608,185 | 2,477,931 | ||||
| Accumulated deficit | (4,560,812 | ) | (4,270,679 | ) | ||
| Total shareholders' equity | 2,988,303 | 3,148,182 | ||||
| Total liabilities and shareholders' equity | $ | 3,556,255 | $ | 3,847,448 |
Approved and authorized for issuance on behalf of the Board on August 23, 2023.
"Greg Wong" (signed)
Greg Wong
Chief Executive Officer
"Annet Cusworth" (signed)
Annette Cusworth
Chair of the Audit Commitee
RIWI's unaudited interim Financial Statements and Management's Discussion and Analysis for the three months ended June 30, 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/178277