Covid-19 Disclosure
Fourth Quarter 2019 Highlights:Revenues increased 318% to $1.4 millionNet loss significantly reduced by 67% to $347 thousand or $0.005 on a per share basisFourth quarter results demonstrate growth and leverage in the current cost structureFull Year 2019 Highlights:Revenues increased 105% to $3.3 millionNet loss decreased 35.4% to $3.8 million or $0.06 on a per share basisTORONTO, March 26, 2020 (GLOBE NEWSWIRE) — ARHT Media Inc. (“ARHT” or “the Company”) (TSXV:ART), the global leader in the development, production and distribution of high quality hologram content through its patented Augmented Reality Holographic Telepresence technology, today announced its fourth quarter and full-year financial results for the period ended December 31, 2019.The Company’s fourth quarter and full year 2018 comparative periods consists of only two months and eleven months, respectively, due to the change to calendar year-end reporting.For the three-month period ended December 31, 2019, ARHT reported revenue of $1.4 million compared to $342,000 for the two months ended December 31, 2018. The 318% increase in revenues is due to increased sales and event activities with large global customers during the quarter. The Company successfully delivered 17 events and 6 equipment sales with subscription agreements in the healthcare, technology and financial services verticals. Revenue growth and cost management resulted in the Company reporting a 67% reduction in net loss totalling $347,000 or $0.005 per share, when compared to $1.1 million or $0.19 per share during the corresponding period in 2018. For the year ended December 31, 2019, the Company reported a 318% increase in revenue at $3.3 million and a net loss of $3.8 million or $0.06 per share versus revenue of $1.6 million and a net loss of $5.8 million, or $0.19 per share. Annual expenses decreased by 0.5% even though revenue doubled, illustrating the operating leverage of the business plan. The Company strengthened its balance sheet during the fourth quarter by eliminating $927,000 of outstanding debt.The COVID-19 pandemic, and the “social distancing” being practised to contain it, has resulted in events in Q1 and Q2 being deferred, and in some cases cancelled. In response, ARHT has enacted employee temporary layoffs and received concessions from landlords, to preserve capital. As well, as announced on March 18, 2020, the Company launched its Virtual Global Stage product, where the audience participates on-line. Virtual Global Stage has generated a significant increase in inquiries for our services, however the timing of any related revenue is still unknown. For further information you may reference the Risks and Uncertainties section of our Q4 and 2019 Management’s Discussion and Analysis that has been posted on Sedar at www.sedar.com.“ARHT Media ended the year with a record breaking quarter with progress in almost every aspect of our business. With revenues up 318% and our quarterly loss reduced by 67%, and annual expenses flat in a year where we doubled revenue, the operating leverage of the business is starting to show in a significant way,” stated Larry O’Reilly, ARHT Media President and CEO. “Our sales funnel has more equipment sale opportunities than events as clients look to adopt our platform to be used on a much more regular basis, which include recurring revenues through broadcast subscriptions. With the increased interest in protecting the health and welfare of key executives and the planet, companies and organizations are looking for technologies that will allow them to communicate with their teams and clients in a powerful and effective way – ARHT Media is part of that solution.”About ARHT MediaARHT Media’s patented holographic telepresence 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 displays to deliver rich holographic experiences.Connect with ARHT Media
Twitter: http://www.twitter.com/ARHTmedia
Facebook: http://www.facebook.com/ARHTmediainc
LinkedIn: http://www.linkedin.com/company/arht-media-inc-For more information, please visit http://www.arhtmedia.com or contact the investor relations group at [email protected].ARHT Media trades under the symbol “ART” on the Toronto Venture Stock Exchange.ARHT Media Press Contact
Salman Amin
[email protected]This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, 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 HumaGram™ 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.NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.LOS ANGELES | TORONTO | NEW YORK | LONDON | HONG KONG | FUZHOU
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