Zonetail Inc. Reports Year End Results
Toronto, Ontario--(Newsfile Corp. - May 1, 2019) - Zonetail Inc. (TSXV: ZONE) (the "Company" or "Zonetail") is pleased to report its financial and operational results for the year ended December 31, 2018. These filings are available for review on the Company's SEDAR profile at www.sedar.com
Q4 and Year-End Highlights
Zonetail is partnered with AAHOA, the largest association of hoteliers in the world, representing over 25,000 hotels and 50% of the US market. The company has currently launched its hotel platform in conjunction with AAHOA, in 7 U.S. cities to date, and plans to work closely with AAHOA to continue the onboarding of hotels, and building the user base, city-by-city throughout 2019.
During the year ended December 31, 2018, the Company closed a brokered private placement of 11,130,092 subscription receipts of Zonetail at a price of $0.18 per Subscription Receipt for gross proceeds of $2,003,417.
For the year ended December 31, 2018, the Company's net loss totaled $2,348,520, compared to $727,562 for the year ended December 31, 2017. The increase in net loss of $1,620,958 is principally the result of the following:
- Salaries increased by $222,886 for the year ended December 31, 2018, compared to the year ended December 31, 2017. The increase is mainly attributable to the growth in the sales and operations teams to facilitate the Company's expansion into different markets and continuous product development.
- Professional fees increased by $1,187,292 for the year ended December 31, 2018, compared to the year ended December 31, 2017. The increase is attributable mainly to one-time operational expenses associated with the Reverse Takeover Transaction.
- Interest expense increased by $94,159 for the year ended December 31, 2018, compared to the year ended December 31, 2017. The increase was due to the interest incurred from the convertible debentures issued in the year.
For the three months ended December 31, 2018, the Company's net loss totaled $934,088, compared to $178,296 for the three months ended December 31, 2017. The increase in net loss is principally the result of the following:
- Salaries increased by $93,749 for the three months ended December 31, 2018, over the three months ended December 31, 2017, due to hiring of new staff to aid in the Company's expansion into the US and condominium markets.
- Professional fees increased by $524,349 for the three months ended December 31, 2018 over the three months ended December 31, 2017. This was mainly attributable to one- time expenses associated with the Reverse Takeover Transaction.
At December 31, 2018, Zonetail had $932,650 in cash and cash equivalents. Accounts payable and accrued liabilities were $318,310 at December 31, 2018. The Company's cash and cash equivalents balance as at December 31, 2018 are sufficient to pay these liabilities. The Company believes that it will have sufficient cash on hand to fund its planned expenditures for fiscal year 2019.
The Company continues to grow its client base through strong marketing efforts and beneficial strategic alliances and partnerships. It is partnered with Shiftsuite, one of the largest property management system software providers to the condo industry in Canada, with approximately 2,000 condo buildings, representing an estimated 400,000 units. Ad sales have begun, and the company expects to increase revenue throughout the year. The Company intends to continue expanding access to its condo mobile technology to property management companies and residents throughout North America, adding to its hotel mobile technology and application currently being rolled out to over 25,000 hotels.
Zonetail Hotel Application
The Zonetail platform connects hotel guests to the amenities and services of their hotel through the convenience of their own mobile device and offers hotels new service options to increase revenues and customer engagement. Guests can select their hotel destination and the app will "reskin" (tailor the content) to provide information and connectivity to any Zonetail-supported hotel worldwide. It will also include all local area information on attractions, events, dining and shopping. The app is planned to drive direct bookings, increase incremental revenue, decrease operating costs, build loyalty and enhance the entire guest experience. The Zonetail platform also features a content management system allowing hotels and local businesses the ability to update and edit their content, providing guests with all the information they're looking for all in real time.
Zonetail Residential Application
The new Zonetail condo mobile application connects residents to the amenities, information, and services of their building through their smartphone. The application, named 'Shiftsuite', is available for condo residents to download on either iOS or Android. The application is fully integrated with Shiftsuite's community website platform.
The Zonetail condo platform digitizes the entire communication process between the condo property management company and the resident. Condo residents can now interact with property management, create and track maintenance requests, receive real time updates on building information, book amenities, receive community news, status certificates, documents, and much more.
Included in the app is an 'Explore' section, where local businesses around each building can offer promotions and deals to formerly difficult-to-reach condo residents, providing a highly targeted, interactive, and less expensive alternative to direct mail and traditional media.
Advertisers can change their message on the fly in real time, giving them the ability to customize and contextualize their promotions.
Zonetail Inc. (TSXV: ZONE) is a mobile platform for hotels and condominiums providing guests and residents access and interaction with building amenities and services as well as neighboring restaurants, stores, services, and attractions. Zonetail is partnered with AAHOA, the largest association of hoteliers in the world, representing over 25,000 hotels and 50% of the US market. Zonetail is also partnered with Shiftsuite, one of the largest property management system software providers to the condo industry in Canada, with approximately 2,000 condo buildings, representing an estimated 400,000 units. Zonetail has offices in Toronto, Ontario and San Dimas, California.
For more information please visit https://zonetail.com/
Mark Holmes, President and Chief Executive Officer
Telephone: (416) 583-3773 ext. 228
This press release contains forward-looking statements that relate to Zonetail's current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "aim", "estimate", "intend", "plan", "seek", "believe", "potential", "continue", "is/are likely to" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Certain matters discussed in this announcement contain statements, estimates and projections about the growth of Zonetail's business, potential distribution partnerships and/or clients, and related business strategy. Such statements, estimates and projections may constitute forward-looking statements within the meaning of the federal securities laws. Factors or events that could cause our actual results to differ may emerge from time-to-time. Zonetail undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The recipient of this information is cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are based on certain assumptions and analysis made by Zonetail in light of its experience and perception of historical trends, current conditions and expected future developments and other factors Zonetail believes are appropriate, and, are subject to risks and uncertainties. Although Zonetail believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, prospective purchasers should not place undue reliance on these forward-looking statements.
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