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."

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)446,687552,5431,026,2531,112,847
     Technology costs (Note 10)382,217236,878881,747525,905
     Sales and marketing (Note 10)236,465305,021504,640587,682
Total operating expenses1,065,3691,094,4422,412,6402,226,435

Operating loss before other income (expense)(136,954)(725,762)(282,985)(960,357)

Other income (expense)    
     Interest income23,1129,20342,87310,756
     Gain on asset disposal971-971-
     Other expenses (Note 10)(36,962)-(37,228)-
Total other income (expense)(12,879)9,2036,61610,756
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   


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, 2023December 31, 2022
Current assets
     Cash and cash equivalents$2,333,640$2,350,718
     Accounts receivable510,256835,886
     Unbilled revenue (Note 9(b))150,66464,463
     Prepaid expenses and other current assets97,20090,578
Total current assets3,091,7603,341,645
     Property and equipment (Note 4)2,5254,688
     Right-of-use assets (Note 5)-17,874
     Intangible assets (Note 6)170,896192,167
     Goodwill (Note 6)291,074291,074
Total assets$3,556,255$3,847,448
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))369,585298,430
Deferred tax liability36,17537,337
Total liabilities567,952699,266
Shareholders' equity  
     Share capital (Note 7)4,940,9304,940,930
     Contributed surplus (Note 7)2,608,1852,477,931
     Accumulated deficit(4,560,812)(4,270,679)
Total shareholders' equity2,988,3033,148,182
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


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.

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