RESAAS Reports Financial Results for Fiscal Year Ended December 31, 2017 and Files Restated Second and Third Quarter 2017 Results

- May 3rd, 2018

RESAAS Services Inc. (TSXV:RSS), a cloud-based social business platform for the real estate services industry, on April 30, 2018 reported its financial results for the fiscal year ended December 31, 2017.

RESAAS Services Inc. (TSXV:RSS), a cloud-based social business platform for the real estate services industry, on April 30, 2018 reported its financial results for the fiscal year ended December 31, 2017.

Financial Highlights – 2017 Year

  • Total revenue for the year ended December 31, 2017 increased by 50% to $456,780 compared to $304,719 for the year ended December 31, 2016.
  • Operating expenses for year ended December 31, 2017 decreased by 4% to $8,082,407 compared to $8,421,998 for year ended December 31, 2016.
  • Due to lower than expected revenues and continued negative cash flows, the Company performed an impairment test on its web site development costs and recorded an impairment charge of $751,693 in the fourth quarter of 2017.
  • Net loss for the year ended December 31, 2017 decreased by 6% to $7,606,222 compared to $8,086,737 for the year ended December 31, 2016. The decrease resulted primarily from a reduction in stock-based compensation of $2,264,610 offset by an increase in general and administrative expenses of $930,714 and an impairment charge of $751,693 related to website development costs.
  • Cash and cash equivalents were $1,570,967 at December 31, 2017 compared to $6,056,127 at December 31, 2016.
  • Net cash outflow from operating activities increased by 18% to $4,146,392 for the year ended December 31, 2017 compared to $3,515,771 for the year ended December 31, 2016.

RESAAS also announces today, that it has voluntarily filed restated interim financial statements and Management’s Discussion and Analysis (“MD&A”) for the second quarter ended June 30, 2017 and the third quarter ended September 30, 2017. The restatement of these financial statements is a result of RESAAS’ determination that certain costs incurred during the second and third quarter of 2017 were incorrectly capitalized as website development costs as they did not meet the requirements for capitalization under IAS38. Consequently, RESAAS’ management has restated its previously reported interim consolidated financial statements for the three and six months ended June 30, 2017, its interim consolidated financial statements for the three and nine months ended September 30, 2017 and the related MD&A to expense the costs that were incorrectly capitalized. The restated financial statements and MD&A may be accessed at www.sedar.com.

About RESAAS Services Inc.

RESAAS is a cloud-based social business platform built for the real estate services industry RESAAS brings proprietary real-time technology into the business of real estate and transforms how real estate listing data flows between real estate agents, brokers, associations and MLSs. Visit www.resaas.com.

On Behalf of RESAAS

Danielle Sissons

VP Operations

RESAAS Services Inc.

Telephone: (604) 558-2929; Email: danielle.sissons@resaas.com

Investor Relations

Email: investors@resaas.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.

Click here to connect with RESAAS Services Inc. (TSXV:RSS) for an Investor Presentation.

Source: www.fscwire.com

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