TORONTO, ON (May 28, 2021) - EQ Inc. (TSXV: EQ) (“EQ Works” or the “Company”), a leader in geospatial data and artificial intelligence driven software, announced its financial results today for the first quarter ended March 31, 2021.

Revenue of $1.8 million was in line with our seasonal expectations, in what is typically a slow quarter for the Company. With some budgets being delayed and pushed out to the second quarter of 2021, visibility into the second quarter has already significantly improved as revenue continued to increase. At the mid-point of the quarter, the Company expects second quarter revenue to be at least 60% higher than what was generated in the first quarter. 

The Company expects first half revenue of 2021 to surpass expectations as second quarter budgets continue to materialize. The adjusted EBITDA loss for the quarter was approximately $0.6 million. Gross margin for the quarter of 47% was an increase from the 43% generated in the same quarter last year and consistent with the previous quarter. 

Data revenue for the Company of $480,000 increased by 12% year over year, as businesses continued to focus on implementing data to better understand their customers and put more emphasis on strategic decisions. By incorporating artificial intelligence (“AI”) and machine learning solutions to proprietary first and third-party data sets, EQ’s LOCUS platform continued to be a sought after tool by companies across multiple industries as they continue to understand the increasing importance of data-based decisions. 

Highlights for the First Quarter ended March 31, 2021

  • The Company completed an oversubscribed equity financing for $11.5 million;

  • Cash balance at the end of the quarter was $13.4 million;

  • Positive net working capital of $14 million;

  • A targeted focus towards increasing and capitalizing on strategic M&A opportunities;

  • The Company repaid in full all outstanding loans and borrowings;

  • Continued investment in our data platform. 

Non-IFRS Financial Measures 

 EQ Works measures the success of the Company’s 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 intangible assets, (b) share-based payments, (c) finance income and costs, net, and (d) depreciation of right-of-use assets (e) additional contingent consideration (f) transaction costs of acquisition (g) impairment of goodwill and intangible assets. Management uses Adjusted EBITDA as a measure of the Company's operating performance because it provides information on 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:

Subsequent to quarter-end, The Company granted 282,500 stock options to directors and employees of the Company. These stock options are exercisable at CDN $1.46 per stock option and will expire on May 27, 2026. These stock options vest over a period of thirty-six months following the grant date and are governed by the terms and conditions of the Company’s stock options plan. Following this grant of stock options, the Company will have a total of 4,831,167 stock options outstanding representing approximately 7.1% of the outstanding common shares of the Company.     

About EQ Works

EQ Works ( enables businesses to understand, predict, and influence customer behaviour. Using unique data sets, advanced analytics, machine learning and artificial intelligence, EQ Works creates actionable intelligence for businesses to attract, retain, and grow the customers that matter most. The Company’s proprietary SaaS platform mines insights from movement and geospatial data, enabling businesses to close the loop between digital and real-world consumer actions.


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. 

Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company’s future financial position and results of operations, strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions, or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company’s expectations, estimates, and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks, and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied, or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance, or achievements to differ materially include, but are not limited to, the risk factors discussed in the Company’s MD&A for the year ended March 31, 2021. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives but cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and any other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect subsequent information, events, or circumstances or otherwise, except as required by law.

EQ Inc,

Peter Kanniah, Chief Financial Officer – 416-260-4326 • 1235 Bay Street, Suite 401 Toronto, Ontario M5R 3K4

Bill Mitoulas, Investor Relations – 416-479-9547 •