Year-to-date revenues increased by 45% to $1.8 million.
Q4 revenue outlook robust and growing with $1.1 million already contracted.
New reseller partnerships expected to launch in Israel and South Korea in Q4.
TORONTO, CANADA – Nov 6, 2019 – ARHT Media Inc. (“ARHT” or the “Company”) (TSXV:ART), a global leader in the development, production and distribution of high-quality hologram content through its patented Augmented Reality Holographic Telepresence technology today announced its financial results for the three and nine-month periods ended Sep 30, 2019.
During the three-month period ended Sep 30, 2019, revenues increased by 4% to $470,000, compared to $451,000 during the same period in 2018. The Company reported a net loss of $1.4 million, or $0.02 per share during the third quarter of 2019, compared to a net loss of $1.2 million during the same period in 2018.
During the nine-month period ended September 30, 2019, revenues increased by 45% to $1.8 million, compared to $1.3 million during the same period in 2018. The Company reported a net loss of $3.4 million, or $0.06 per share, compared to a net loss of $4.8 million during the same period in 2018.
The Company is pleased to report that as a result of its sales and marketing efforts with a number of globally recognized brands, the fourth quarter 2019 contracted revenues are already in excess of $1.1 million. During the month of October alone, the Company booked $700,000 in revenues, representing a record month of business since launching the current business model.
On a year-to date basis, the Company reduced cash consumed by 50% to $3.0 million in 2019, versus $6.0 million in 2018. The significant decrease in cash consumed is primarily the result of the Company’s success in increasing revenues during the same period while monitoring and managing its costs.
“We had expected higher revenue numbers in Q3 and while very few of these deals in play were lost, the revenues will be realized in Q4 and in the first two quarters of next year,” stated ARHT CEO Larry O’Reilly. “We had a record breaking month in October, and November is looking extremely promising as well, however the best news is that much of this revenue is repeat business and coming from leading global companies that we can generate much greater revenue with in the coming year and beyond.”
In late October, ARHT completed its 10th engagement for a leading global financial institution. With prior events in Switzerland, UK, US, Canada, Hong Kong, China and Australia, delivering some of their top subject matter experts and executives through both live holographic telepresence and pre-recorded holograms. ARHT’s holographic telepresence technology continues to become the communication platform of choice for a growing list of global banking, investment, insurance, technology and pharma clients.
In addition, ARHT very recently completed a live holographic telepresence broadcast involving a CEO and two additional senior executives of a leading global pharmaceutical company, for an internal conference. ARHT beamed the executives into the event in real-time, while also live-streaming the transmission online to over 100,000 employees across the globe. The engagement represents the third activation with this global client in the past month.
During the third quarter, the Company raised $2.45 million through a non-brokered private placement. The Company used $824K of the financing to repay secured debentures previously issued in May 2018.
In October, an agreement was reached with ARHT Asia to set-off $397,500 of its outstanding intercompany advance against costs incurred in an event with Dr Stephen Hawking in 2017. In addition, ARHT Asia agreed to convert the remaining $530,000 of its outstanding intercompany advance to equity in ARHT Media on terms and conditions substantially the same as ARHT’s most recent private placement.
Following the completion of the above-mentioned transactions, the Company is debt-free.
The Company recently contracted Roger Pollock and Rasool Verjee as two Business Development Consultants. Roger, based in Los Angeles, held senior marketing roles at IMAX, Paramount Pictures and UIP (Paramount, Universal and DreamWorks studios international) and will focus on the Hollywood market. Rasool, a Cambridge University educated lawyer and successful North American entrepreneur based in Toronto and Nairobi, will focus on the development of the African market, starting with Kenya where he has extensive high-level business relationships.
Highlights for the quarter end include:
- The Company entered into a reseller agreement with Israeli firm Golcan Ltd which will install a permanent capture and display studio in Tel Aviv in Q4;
- The Company entered into a reseller agreement with Korean AV firm MW Networks, having worked with them on two prior projects in the last year. They are planning to have their first ARHT Media contracted event in Q4;
- In July, the Company collaborated with Huawei Canada and Willow Springs Winery on a 5G showcase event;
- In July the Company was contracted by movie sponsor Red Bull to beam the director and producer from Los Angeles to London for the premiere press conference;
- In July the Company was contracted by a major American Multinational Biopharmaceutical company for two separate events. The first event captured a specialist in Seoul for live broadcast into Taipei and Melbourne, the second event was from Dallas into Tokyo;
- In August the Company was contracted by Ericsson Indonesia and XL Axiata for a 5G showcase in Jakarta, Indonesia;
- In August the Company presented training software company, Docebo’s, CEO Claudio Erba, who was captured in Milan and presented in Atlanta at their annual conference;
- In August the Company captured a patient in one city and a doctor/product specialist in another city, who were then broadcast live and interactively to four separate cities for a leading global pharmaceutical company. This pilot was a huge success and similar use of the ARHT Media platform is currently being explored in other regions of the world;
- In September RBC SVP Chris Phillips beamed from Toronto into SIBOS 2019 London to participate on a high-profile panel discussion on the Future of Data and Tech in Banking;
- In September the Company beamed an environmental specialist from Toronto into the Sustainable Energy Futures Annual Conference hosted by Imperial College London;
- In October a US Pharmaceutical company deployed four recently purchased ARHT Media displays during a three day sales training event in Miami. As part of this event specialists were beamed in live from two different locations and broadcast to multiple locations on site;
- In October the Company contracted with Ericsson Thailand for the purchase of an ARHT Media capture and display to be used at events in Thailand showcasing the benefits of 5G;
- In October the Company captured historian and author Yuval Noah Harari in Tel Aviv and broadcast him live into an event in Naples, Florida. Last year the Company beamed Mr Harari onto the mainstage of TED 2018 in Vancouver;
- In October ARHT Media beamed Asia financial expert Peter Tasker from Hong Kong into London for the Societe Generale RISK Derivatives Conference 2019;
- In October the Company contracted with an Athens based event producer to deliver a holographic presentation of a cultural landmark scheduled for Q4 2019;
- In October the Company beamed futurist and author, Dr. Peter Diamandis, from Los Angeles into Kansas City for an YPO event;
About ARHT Media
ARHT Media’s patented HoloPresence™ technology is a complete end-to-end solution that creates a sense of presence for audiences – as though the holographic presenter was actually live in the room. With no noticeable latency, ARHT Media makes two-way live communication with a 3D holographic presenter anywhere in the world possible. We can also playback pre-recorded content and 3D animations on our HoloPresence™ displays to deliver rich holographic experiences. Add to this our capability to stream the same content online on our premium Virtual Global StageTM.
Connect with ARHT Media:
For more information, please visit www.arhtmedia.com or contact the investor relations group at [email protected]
ARHT Media trades under the symbol “ART” on the TSX Venture Exchange.
This press release may contain “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the intention to exercise convertible securities of the Company; disclosure related to the Company’s sales funnel; the Company’s technology; the potential uses for the Company’s technology; the future planned events using the Company’s technology; the future success of the Company; the ability of the Company to monetize the ARHT Media technology; the development of the Company’s technology; and interest from parties in ARHT’s products. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic and competitive uncertainties; regulatory risks; risks inherent in technology operations; and other risks of the technology industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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