TORONTO, ON (August 29, 2016) – EQ Inc. (TSXV: EQ) (“EQ Works”), a leader in audience targeting for mobile, social, video, and display advertising today announced its financial results for the second quarter ended June 30, 2016.
Total revenue from operations for the quarter, which ended on June 30, 2016, was approximately $0.7 million, lower than the $1.0 million recorded in the same period of 2015.
The adjusted EBITDA loss for the quarter was approximately $0.4 million, consistent over the same period of 2015. The Company implemented cost-saving measures to better align its cost structure with its strategic focus and was able to reduce the overall operating and compensation expenses for the second quarter of 2016.
Subsequent to the second quarter, the Company announced that, subject to final TSX Venture Exchange approval, the Corporation completed a debt financing (the “Debt Financing”). The Debt Financing consisted of approximately $1.2 million non-convertible secured promissory notes (the “Promissory Notes”). The Debt Financing rolled over approximately $350,000 of the outstanding demand loan. The Company expects to use the proceeds from the issuance of the Debt financing to build its sales and marketing team, execute its strategic goals for the second half of 2016.
Non-IFRS Financial Measures
We measure the success of our strategies and performance based on Adjusted EBITDA, which is outlined and reconciled with net income (loss) in the section entitled “Reconciliation of Net Loss for the period to Adjusted EBITDA” in the MD&A. The Company defines Adjusted EBITDA as net income (loss) from operations before; (a) depreciation of property and equipment and amortization of domain properties and other intangible assets; (b) share-based payments, (c) restructuring, (d) impairment of goodwill and domain properties and other intangible assets, (e) Income tax expense and recovery, (f) finance income and costs, net, and (g) gain (loss) on derivative liability-warrants. Management uses Adjusted EBITDA as a measure of the Company’s operating performance because it provides information related to the Company’s ability to provide operating cash flows for working capital requirements, capital expenditures, and potential acquisitions. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.
The non-IFRS financial measure is used in addition to and in conjunction with results presented in the Company’s consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company’s consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company’s non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.
The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:
About EQ Works
EQ Works (www.eqworks.com) provides a smarter way to target customers. The Company uses its real-time technology and advanced analytics to detect the actionable data that boosts performance for all web, mobile, social and video initiatives. EQ Works balances the many components that comprise the complex advertising ecosystem and establishes equilibrium for reaching the right audience at the right time through any web or mobile device.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements that are based on management’s current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. EQ Inc. is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
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