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RIWI Releases Q2 Financials
August 21, 2024 4:05 PM EDT | Source: RIWI Corp.
Toronto, Ontario--(Newsfile Corp. - August 21, 2024) - RIWI Corp. (TSXV: RIWI) (OTC Pink: RWCRF) (the "Company" or "RIWI"), a market research platform and global trend-tracking and prediction technology firm, reported its financial results for the quarter ended June 30, 2024. 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 for the Quarter Ended June 30, 2024 – in USD:
RIWI earned $1,026,112 in revenues in the second quarter of 2024 compared to $928,415 for the three months ended June 30, 2023, an increase of 10.5%. The Company's revenue in the second quarter of 2024 consisted of $360,284 in transaction revenue, $400,945 in recurring revenue and $264,883 in project-based revenue. RIWI also recorded a net loss of $108,826 for the three months ended June 30, 2024, as compared to a net loss of $162,190 for the three months ended June 30, 2023, an improvement of 32.9%.
The RIWI transactional revenue segment was significantly impacted by RIWI's newly implemented data quality measures and the Company's commitment to demonstrable quality data in order to win new clients in an industry increasingly sensitive to these requirements. Management expects this segment to continue being impacted for the next two quarters as improvements are made to improve the customer experience of the RIWI Respondent Marketplace and as RIWI improves the respondent supply quality.
On April 24, 2024, RIWI announced the acquisition of the majority of the assets of CoolTool Inc., a leading survey and non-conscious data collection platform. This acquisition enhances the RIWI platform by providing customers with new functionality and opens up a new Software-as-a-Service (SaaS) recurring revenue stream.
RIWI signed 16 new client contracts in the three months ended June 30, 2024, including contract signings with 9 new RIWI customers.
RIWI delivered its first set of marketing-related market research projects by completing both a packaging market research project and a video-testing project. Management is of the view that these successful capstone projects will help attract new areas of business opportunity for RIWI and provide references for the Company's expanding consumer packaged goods customer segment.
RIWI delivered the first back-to-back quarters of in excess of $1 million USD in revenues since 2021, showing the stabilization of the business.
RIWI was recognized in several notable publications in the second quarter of 2024: a paper from The World Bank on "Attitudes Towards Reducing Fossil Fuels: Evidence Across 12 Middle-Income Countries"; an article in Communications Medicine on "Perceptions of the determinants of health across income and urbanicity levels in 8 countries"; an article in Foreign Policy about "What do Russians Really Think About Putin's War"; a paper in Research Square on "Perceived Threats From Minorities Decreases with Increased Societal Threat: Evidence from the 2021 Military Coup in Myanmar"; and in interviews with RIWI's CEO Greg Wong and Dmitry Gaiduk, the Company's Chief Product Officer, in Greenbook's CEO series.
"The global market research industry is ripe for disruption. Currently, clients are often forced to juggle multiple providers and platforms, leading to inconsistent methodologies and unreliable data," said Greg Wong, RIWI's Chief Executive Officer. "At RIWI, we're seizing this opportunity by developing a comprehensive, AI-powered platform that integrates research technologies, sample collection, and services. Our singular solution addresses the industry's fragmentation, ensuring data quality and trustworthy insights. This innovative approach not only meets our customers' needs for better decision-making but also positions RIWI for long-term success. We're confident that our strategy will deliver significant value to investors who join us on this transformative journey," added Mr. Wong.
| RIWI CORP. | ||||||||||||||||||
| Condensed Consolidated Interim Statements of Loss and Comprehensive Loss | ||||||||||||||||||
| For the three and six months ended June 30, 2024 and 2023 | ||||||||||||||||||
| (Unaudited and expressed in U.S. dollars) | ||||||||||||||||||
| Three months ended | Six Months Ended | |||||||||||||||||
| June 30 | June 30 | |||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Revenues (Note 8) | $ | 1,026,112 | $ | 928,415 | $ | 2,161,959 | $ | 2,129,655 | ||||||||||
| Operating expenses | ||||||||||||||||||
| General and administrative (Note 9) | 302,984 | 446,687 | 691,738 | 1,026,253 | ||||||||||||||
| Operations (Note 9) | 530,605 | - | 1,036,091 | - | ||||||||||||||
| Technology costs (Note 9) | 109,197 | 382,217 | 215,915 | 881,747 | ||||||||||||||
| Sales and marketing (Note 9) | 179,595 | 236,465 | 316,720 | 504,640 | ||||||||||||||
| Total operating expenses | 1,122,381 | 1,065,369 | 2,260,464 | 2,412,640 | ||||||||||||||
| Operating loss before other income | (96,269 | ) | (136,954 | ) | (98,505 | ) | (282,985 | ) | ||||||||||
| Other income | ||||||||||||||||||
| Interest income | 22,297 | 23,112 | 51,620 | 42,873 | ||||||||||||||
| Gain on asset disposal | - | 971 | - | 971 | ||||||||||||||
| Other expenses (Note 9) | (34,854 | ) | (36,962 | ) | (34,854 | ) | (37,228 | ) | ||||||||||
| Total other income | (12,557 | ) | (12,879 | ) | 16,766 | 6,616 | ||||||||||||
| Net loss before income taxes | (108,826 | ) | (149,833 | ) | (81,739 | ) | (276,369 | ) | ||||||||||
| Income tax expense | - | (12,357 | ) | - | (13,764 | ) | ||||||||||||
| Net loss and comprehensive loss for the period | $ | (108,826 | ) | $ | (162,190 | ) | $ | (81,739 | ) | $ | (290,133 | ) | ||||||
| Net loss per share | ||||||||||||||||||
| Basic and diluted | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.02 | ) | ||||||
| Weighted average number of common shares outstanding | ||||||||||||||||||
| Basic and dliuted | 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, 2024 and December 31, 2023 | ||||||
| (Unaudited and expressed in U.S. dollars) | ||||||
| June 30, 2024 | December 31, 2023 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents (Note 5) | $ | 2,072,324 | $ | 3,094,542 | ||
| Accounts receivable (Note 11(a)) | 675,590 | 637,894 | ||||
| Unbilled revenue (Note 8(b)) | 37,402 | 81,948 | ||||
| Contract costs | 17,272 | 43,182 | ||||
| Prepaid expenses and other assets | 105,281 | 53,571 | ||||
| Total current assets | 2,907,869 | 3,911,137 | ||||
| Property and equipment | 30,967 | 3,116 | ||||
| Intangible assets (Note 6) | 595,613 | 151,381 | ||||
| Total assets | $ | 3,534,449 | $ | 4,065,634 | ||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 182,129 | $ | 472,703 | ||
| Contingent consideration liability (Note 4) | 128,244 | - | ||||
| Deferred revenue (Note 8b)) | 477,353 | 902,884 | ||||
| Total current liabilities | 787,726 | 1,375,587 | ||||
| Long-term liabilities | ||||||
| Contingent consideration liability (Note 4) | 64,274 | - | ||||
| Total liabilities | 852,000 | 1,375,587 | ||||
| Shareholders' equity | ||||||
| Share capital (Note 7) | 4,940,930 | 4,940,930 | ||||
| Contributed surplus (Note 7) | 2,907,278 | 2,833,137 | ||||
| Accumulated deficit | (5,165,759 | ) | (5,084,020 | ) | ||
| Total shareholders' equity | 2,682,449 | 2,690,047 | ||||
| Total liabilities and shareholders' equity | $ | 3,534,449 | $ | 4,065,634 | ||
RIWI's audited Financial Statements and Management's Discussion and Analysis for the quarter ended June 30, 2024, are available via RIWI's website at https://riwi.com and on SEDAR at www.sedar.com.
About RIWI
RIWI is a market research platform and 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 or call 1-833-FOR-RIWI (367-7494)
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/220712