LONGUEUIL, Quebec, Aug. 12, 2020 (GLOBE NEWSWIRE) — D-BOX Technologies Inc. (TSX: DBO), a world leader in haptic and immersive entertainment experiences, announced today its financial results for the first quarter ended June 30, 2020. All amounts in this press release are in Canadian dollars.
FINANCIAL HIGHLIGHTSHighlights for the First Quarter Ended June 30, 2020Compared with the fourth quarter ended June 30, 2019:Total revenues decreased from $7.5 million to $2.2 million as a result of the adverse impact of the COVID-19 pandemic.Recurring revenue decreased from $2.4 million to $0.1 million as a result of the adverse impact of the COVID-19 pandemic.Revenues related to systems sales from the entertainment market excluding home entertainment decreased from $2.7 million to $0.4 million.Revenues from home entertainment increased from $0.1 million to $0.2 million.Revenues from simulation and training decreased from $2.2 million to $1.5 millionNet loss increased from $0.6 million to $1,0 million.Adjusted EBITDA* decreased from $0.2 million to ($0.1) million.Cash and cash equivalent was $4.6 million as at June 30, 2020 compared to $4.1 million as at March 31, 2020. Subsequent to the quarter, D-BOX closed a $2.0M financing, improving the cash position. On July 24, 2020, the Corporation signed a definitive agreement with the National Bank of Canada [“NBC”] related to the availability of a line of credit amounting to $4 million for the ongoing operations and working capital of the Corporation. This line of credit will be renewable annually and will bear interest at prime rate plus 3.25%. The line of credit will be secured by first-ranking hypothec and security interests on all assets of the Corporation and its U.S. subsidiary, and will replace the three-year secured revolving credit facility with the NBC from which an amount of $4 million was drawn at June 30, 2020.
On July 24, 2020, the Corporation also signed a definitive agreement with the Business Development Bank of Canada [“BDC”] related to the availability of a working capital commercial loan of $2 million. This loan will bear interest at a variable rate, currently 4.55%, and will be payable in 24 monthly instalments of $33 thousand from June 2021 to May 2023 and by a final payment of $1.2 million in June 2023. The loan will be secured by second-ranking hypothec and security interests on all assets of the Corporation and its U.S. subsidiary.OPERATIONAL HIGHLIGHTSOn March 11, 2020, the World Health Organization declared coronavirus (“COVID-19) a global pandemic. Most governments have enacted emergency measures to combat the spread of the virus, including travel bans, mandatory closures of nonessential services and businesses and social distancing. These measures have caused material disruption to businesses worldwide resulting in economic uncertainty, supply chain disruption, change in consumer demand. At the present time, D-BOX cannot reliably provide an estimate of the duration or magnitude of the outbreak and its impact on the Corporation’s financial results.
D-BOX proceeded with the launch of its 3rd Generation Haptic solution which targets racing fans, a market estimated at 75 million fans in the United States. Top sim racing partners took advantage of the rise in interest driven by at-home entertainment. Partners such as SimLab, Vesaro, RSeat, VRX and Sim Seats, generated an increase in D-BOX system sales during the quarter.
Lugner Cinema acquired 60 D-BOX haptic systems through our European partner ECCO becoming the first full D-BOX auditorium in Austria’s capital city Vienna. ADDITIONAL INFORMATIONThe financial information relating to the first quarter ended June 30, 2020 should be read in conjunction with the Corporation’s unaudited condensed consolidated financial statements and the Management’s Discussion and Analysis dated August 12, 2020. These documents are available at www.sedar.com.RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)*ABOUT D-BOX
D-BOX redefines and creates realistic, immersive and haptic entertainment experiences by providing feedback to the whole body and sparking the imagination through motion. Haptic essentially allows to feel sensations that would be felt if the body was interacting directly with physical objects. D-BOX has collaborated with some of the best companies in the world to deliver new ways to enhance great stories. Whether it’s movies, video games, virtual reality applications, themed entertainment or professional simulation, D-BOX creates a feeling of presence that makes life resonate like never before.D-BOX Technologies Inc. (TSX: DBO) is headquartered in Montreal with offices in Los Angeles, USA and Beijing, China. Visit d-box.comDISCLAIMER REGARDING FORWARD-LOOKING STATEMENTSThis news release contains statements that may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, activities, objectives, operations, strategy, financial performance and condition of the Corporation, or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur. Forward-looking information is based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Corporation’s control.These risks, uncertainties and assumptions include, but are not limited to, those described under “Risk Factors” in the Corporation’s Annual Information Form for the fiscal year ended March 31, 2020, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Corporation does not intend, nor does the Corporation undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.FOR FURTHER INFORMATION, PLEASE CONTACT:
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