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The gaming company announced slower revenue growth and negative EBITDA amidst an ongoing proxy battle over the year.
Kuuhubb (TSXV:KUU), mobile gaming company that is targeting female users announced lower-than expected revenues in its fiscal 2019 report, as a proxy battle took up a number of associated costs and resources. Annual revenues came in at C$12.3 million, with negative earnings before interest, tax, depreciation and amortization arriving at negative C$1.5 million.
As quoted in the press release:
Audited Annual Financial Results for the Financial Year Ended June 30, 2019:
The Company recognized revenue of US$12,362,053 for the year ended June 30, 2019. This revenue was generated from sales of the Recolor app totaling US$9.7 million, the in-application sale of virtual goods from the My Hospital game totaling US$1.5 million and advertising revenue of US$1.1 million.
The Company incurred cost of sales of US$5,362,436 for the year ended June 30, 2019. The cost of sales is related to the application marketplace (such as Apple App Store and Google Play) fees.
The Company incurred consulting and professional fees of US$1,471,649 for the year ended June 30, 2019. These fees were related to Kuuhubb’s audit fees, general legal counsel and other professional services. In addition, this year the Company incurred additional fees related to the AGM and the related Board of Director change.
The Company showed EBITDA of negative US$1,595,531 by adding back non-cash depreciation and amortization of US$6,099,783, non-cash share-based compensation of US$1,229,317, non-cash goodwill and intangible impairment US$6,761,098, net interest and accretion expenses of US$893,517, non-cash fair value change of derivative of US$27,699, deduct foreign exchange gain of US$59,278 and deduct deferred tax recovery of $1,394,884 from and to the net loss of US$15,152,783.
