Prodigy Ventures Inc. Announces 2015 Second Quarter Financial Results
Toronto, Ontario--(Newsfile Corp. - November 12, 2015) - Prodigy Ventures Inc. (TSXV: PGV) ("Prodigy" or the "Company") today announced results for the three and six months ended September 30, 2015.
Financial and Operational Highlights:
- Revenue of $2,335,971 and $3,611,424 for the three and six months ended September 30, 2015, a year-over-year increase of 303% and 273% respectively;
- Gross profit of $931,118 and $1,242,659 for the three and six months ended September 30, 2015, a year-over-year increase of 838% and 604% respectively;
- Basic and diluted earnings per share of $0.01 and $0.01 for the three and six months ended September 30, 2015, compared to nil for the same periods last year;
- Ended the quarter with working capital of $991,874, sufficient to fund operations for next 12 months;
- Completed its Qualifying Transaction with 71 Capital Corp, a capital pool company listed on the TSXV in a going-public transaction on September 10, 2015.
"Prodigy was able to deliver record revenue growth in the second quarter. As such, we are excited to report positive cash flow and a profit in our first quarter as a public company," stated CEO Tom Beckerman. "We look forward to expanding and diversifying our client base to continue to drive service revenue growth, while at the same time bringing exciting new ventures, such as iVideo to market."
Prodigy had limited business operations prior to April 1, 2014. As a result, profitability and cash from operating activities have markedly improved, and results from operations for previous years are not directly comparable.
Total revenue for the three months ended September 30, 2015 increased $1,756,268 from $579,703 to $2,335,971. Revenue for the six months ended September 30, 2015 increased $2,643,415 from $968,009 to $3,611,424. Revenue is expected to grow as new products are developed.
Direct costs for the three months ended September 30, 2015 increased $924,460 from $480,393 to $1,404,853, a year-over-year increase of 192%. Direct costs for the six months ended September 30, 2015 increased $1,577,259 from $791,506 to $2,368,765, a year-over- year of 199%. Direct costs are expected to increase in relation to changes in revenue.
Gross profit for the three months ended September 30, 2015 increased $831,808 from $99,310 to $931,118. Gross profit for the six months ended September 30, 2015 increased $1,066,156 from $176,503 to $1,242,659.
The net and comprehensive income for the three months ended September 30, 2015 increased $175,413 from $28,740 to $204,153. Net and comprehensive income for the six months ended September 30, 2015 increased $245,920 from $47,228 to $293,148.
Net income per share was $0.01 and $0.01 for three and six months ended September 30, 2015 as compared to $0.00 and $0.00 in the comparative periods in the prior year.
Total expenses for the three months ended September 30, 2015 increased from $64,890 to $649,862. Total expenses for the six months ended September 30, 2015 increased from $119,942 to $854,619. The largest contributor to the year over year increase in expenses were professional and listing costs paid in connection with the Qualifying Transaction with 71 Capital Corp. With the transaction now complete, total expenses are expected to be reduced in the short-term but will increase over time as the Company continues to grow.
Professional fees for the three and six months ended September 30, 2015 increased $318,349 and $349,220 year-over-year from $122 and $7,933 to $318,471 and $357,153 respectively, as a result of filing and listing as well as legal and advisory costs associated with the Qualifying Transaction. This includes $164,922 of fees paid through the issuance of common shares.
Research and development expenses for the three months ended September 30, 2015 increased $90,997 from $9,850 to $100,847. Research and development expenses for the six months ended September 30, 2015 increased $155,128 from $15,645 to $170,773. Increased R&D costs were the result of increased spending on the venture builder business. Future increases or decreases will vary based on the status of projects in development.
The Company had working capital of approximately $991,874 as at September 30, 2015 (March 31, 2015 —$212,250). The Company has had positive cash flow from operations for the three and six months ended September 30, 2015. Management believes that it will have sufficient capital to fund its operations for the next twelve months.
Subsequent to quarter end:
On October 16, 2015 the Company issued options to acquire a total of 1,375,000 common shares at an exercise price of $0.10 per share. Of these options, 1,175,000 were issued to officers and directors of the Company. The options vest on December 31, 2016, and expire on December 31, 2018.
Launch of iVideo
iVideo is Prodigy's entry into the mobile video sharing space and is the only split-screen video camera application in Apple's App Store. With almost no marketing effort, iVideo reached over 150,000 downloads in its first year as a free video camera app. It has a world-wide user base, and has reached the Top 100 list in the Photos and Video category of the Apple App Store in many countries. iVideo is being transformed by Prodigy from a video camera app into a full social video platform and its relaunch for iPhones and iPads is expected in November, 2015. The next release will offer these new social capabilities alongside its split screen interface and additional unique user interface designs for a compelling new video experience. An Apple Watch and Apple TV companion app is under construction, and a Google Glass iVideo app is nearing completion, awaiting the launch of Google Glass 2.0. An Android version will be created after the next release. These platforms are expected to launch in December, 2015 and January, 2016.
A full set of unaudited financial statements and related notes have been filed on SEDAR and are available on the Company's website at www.prodigy.ventures.
Neither 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.
This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company. These include, but are not limited to, the ability to continue to grow the Company in the coming years, the continued development and success of iVideo and the development of further versions of iVideo. The forward-looking statements or information contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
About Prodigy Ventures Inc.
Prodigy Ventures is an innovation company that has combined an enterprise services business - Prodigy Labs - with a Venture Builder business. The two businesses work together to sell services and create new enterprise-grade platforms and apps using technologies such as mobile video, proximity, wearables and 3D & augmented reality.
FOR FURTHER INFORMATION PLEASE CONTACT:
PRODIGY VENTURES INC.
Chief Financial Officer