Glace Technologies Inc (CSE:GET.CN) announced financial results for the first quarter ended February 28, 2018. The company had a revenue of $1,174,000 compared to $17,000 in Q1 2017 while their net loss was $4,869,000 compared to $964,000 in Q1 2017. As quoted in the press release: “In recent months we have made great strides in …
Glace Technologies Inc (CSE:GET.CN) announced financial results for the first quarter ended February 28, 2018.
The company had a revenue of $1,174,000 compared to $17,000 in Q1 2017 while their net loss was $4,869,000 compared to $964,000 in Q1 2017.
As quoted in the press release:
“In recent months we have made great strides in expanding beyond the initial success we achieved in the Vancouver market with our core mobile payments product,” said Glance CEO Desmond Griffin. “We have a clear technology roadmap that will enable us to deliver further value to our merchants and end users. Our customer base extends across multiple industry verticals, and we now have offices on three continents with plans for further international expansion in 2018. I believe we are very well positioned to capitalize on the continuing shift towards mobile devices as the platform of choice for payments and consumer engagement.”
Q1 2018 Financial Highlights:
(all figures are rounded to the nearest thousand)
- Revenue of $1,174,000, compared to $17,000 in Q1 2017. The current period includes a royalty fee ($1,000,000) and marketing revenue ($44,000), in addition to application and service fees ($130,000). It should be noted that the fourth quarter 2017 and first quarter 2018 revenues may be higher than can be expected in future near-term quarters due to timing of licensing related revenue;
- Operating expenses of $5,447,000 compares to $981,000 in Q1 2017, reflecting the significant ramping of the business over the past year;
- The largest change in expenses this quarter was a $2,353,000 increase in corporate communications and investor media expense, which the Company expects to reduce significantly in future quarters as it evolves to a more focused outreach strategy;
- Another notable increase was a $1,199,000 increase in sales and marketing expense. A significant part of this was related to the increase in the number of employees in sales and marketing, commencing work in the Blockchain sector and preparing the Company’s rebrand. The Company expects this expense category to reduce in future near term quarters;
- Net loss was $4,869,000 or $(0.04) per share, compared to $964,000 or $(0.02) per share in Q1 2017;
- Completed a bought deal public offering during the quarter for net proceeds of $10,180,000 and raised an additional $808,000 through the exercise of outstanding warrants and incentive options;
- As at February 28, 2018, the Company had $13,377,000 of cash ($10,294,000 at November 30, 2017) and no long-term debt ($nil at November 30, 2017).
Q1 2018 Operating Highlights:
- Over 350 signed locations as of the end of the quarter;
- Live in 164 locations, up 173% from 60 locations in Q1 2017;
- Raised approximately $11 million from equity financings;
- Acquired the Block impact blockchain technology platform;
- Expanded our sales presence with new offices in San Jose, CA, Toronto, ON, and subsequent to quarter end, London, UK and Melbourne, Australia; and
- Surpassed a full year of zero fraud across our payment platform.
Management intends to pursue a number of technology, product and marketing initiatives to continue to drive growth in 2018. The Company’s strategic priorities include:
Grow monthly recurring revenue by continuously adding new merchants and consumers;
Launch a new downloadable merchant app that enables merchants to quickly set up Glance Pay on their own devices and facilitates our migration towards a higher-volume sales model;
Establish Glance as a leader in the blockchain space by developing innovative applications and hosting a “Future of Blockchain” conference on May 8, 2018, in Vancouver;
Further the development of the Glance Coin reward token, which is intended to simplify and enable the adoption of cryptocurrency into everyday life;
Leverage the Company’s superior anti-fraud technology to expand into online purchases, e-commerce and other markets;
Expand into new vertical markets through both direct sales and joint efforts with our licensing partners;
Continue Glance Pay’s international expansion through the launch of our apps in several new markets; and
Broaden our geographic footprint across more North American cities, building on its existing presence across Canada and its recent launch in California.