TORONTO, Nov. 27, 2018 (GLOBE NEWSWIRE) — Datametrex AI Limited (the “Company” or “Datametrex”) (TSXV: DM, FSE: D4G) announces its 2018 third quarter financial results.
During the three month period ended September 30, 2018 the Company recognized revenue of $0.6 million versus $nil in the prior quarter, and 2018 year to date revenue of $3.6 million versus $0.1 million in 2017, an increase of 3,524% over the same period. The Company decided to write down its crypto assets in Ronin Blockchain for $12.9 million. This is a non-cash item and under IFRS, the Company will have the ability to reverse impairment losses if and when the crypto market and environment improves and the value of the assets increases.
“This was not an easy decision as we remain bullish on the long-term viability of the crypto markets and continue to maintain our small-scale mining infrastructure. However, given the current market environment in the crypto mining sector, we felt this was the responsible action to take. Datametrex is now in a position to focus all of its efforts and capital on its core business of Artificial Intelligence and Machine Learning solutions. We recently announced product updates for our AI solutions along with the creation of a new division called Canntop AI to focus exclusively on the Cannabis sector,” said Andrew Ryu, CEO and Chairman of the Company.
The filings, along with additional information regarding the Company, will be available on SEDAR at www.sedar.com.
Financial Highlights
The following table summarizes revenue, net loss, EBITDA* and Adjusted EBITDA* for the three and nine months ended September 30, 2018 and September 30, 2017:
| Three months ended September 30, |
Nine months ended September 30, |
|||||||
| 2018 $ |
2017 $ |
2018 $ |
2017 $ |
|||||
| Revenue | 589,648 | – | 3,642,856 | 100,517 | ||||
| Net loss | (15,236,076 | ) | (1,153,173 | ) | (18,165,683 | ) | (2,612,929 | ) |
| EBITDA* | (14,350,712 | ) | (1,151,484 | ) | (15,709,824 | ) | (2,609,684 | ) |
| Adjusted EBITDA* | (1,422,731 | ) | (833,934 | ) | (1,565,323 | ) | (1,509,056 | ) |
| Adjusted EBITDA per share* | (0.007 | ) | (0.011 | ) | (0.008 | ) | (0.026 | ) |
To date, the Company has achieved several significant milestones:
- Successfully spun out its associate company, Graph Blockchain Inc. (CSE: GBLC), which it founded in late 2017 with an initial investment of $200,000.
- Completed a significant upgrade to its AI solutions to allow for the identification and extraction of disinformation spread through social media.
- Incorporated Canntop AI Limited with the goal of bringing the powerful tools of Nexalogy AI to the Cannabis sector.
Restructuring Ronin Executive
The Company announces the entering into of a settlement agreement in connection with the departure of Mr. Darcy Taylor, a former President of Ronin Blockchain Corp., a wholly owned subsidiary of the Company.
Pursuant to the terms of the settlement, Datametrex will, among other things: (i) engage Mr. Taylor as a consultant pursuant to an independent consulting agreement; (ii) issue to Mr. Taylor 1,500,000 common shares in the capital of the Company (“Common Shares”) at a deemed price per share equal to the prevailing market price of the Common Shares on the date of issuance, and (iii) grant Mr. Taylor 500,000 stock options pursuant to the Company’s stock option plan. Each option will vest immediately and be exercisable for one Common Share at an exercise price equal to $0.20 per share for a period of 12 months from the date of issuance. The issuance of the Common Shares is subject to approval by the TSX Venture Exchange.
Corporate Update
The Company announces that Mr. Pankaj Varma has resigned effective November 26, 2018 as a member of the Board of Directors so that he may focus his efforts on other professional duties.
The Board of Directors would like to thank Mr. Varma for his contribution over the past few months and wishes him well in his future endeavours.
Datametrex and the Board are currently evaluating alternatives with respect to appointing an additional independent director in due course.
About Datametrex AI Limited
Datametrex AI Limited is a technology focused company with exposure to Artificial Intelligence and Machine Learning through its wholly owned subsidiary, Nexalogy (www.nexalogy.com) and Implementing Blockchain technology for secure Data Transfers through its investee company, Graph Blockchain (www.graphblockchain.com).
Additional information on Datametrex is available at: www.datametrex.com
To stay informed about Datametrex, please join our Investor Group on 8020 Connect http://bit.ly/2fPUNwF for all upcoming news releases, articles comments and questions.
For further information, please contact:
Jeffrey Stevens – President & COO
Phone: (647) 400-8494
Email: jstevens@datametrex.com
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.
EBITDA and Adjusted EBITDA*
Management believes that EBITDA and Adjusted EBITDA are effective measures for analyzing the performance of the Company. The term “EBITDA” refers to earnings before deducting interest, taxes, depreciation and amortization. The Company calculates Adjusted EBITDA as earnings before deducting interest and accretion, taxes, depreciation and amortization, impairment charges, listing expense, other reverse take-over fees, acquisition related costs, and share based compensation. “EBITDA”, “EBITDA per share”, “Adjusted EBITDA”, and “Adjusted EBITDA per share” are non-GAAP measures. The Company believes that Adjusted EBITDA is useful additional information to management, the Board and investors as it provides an indication of the operational results generated by its business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and amortization and it excludes items that could affect the comparability of our operational results and could potentially alter the trends analysis in business performance. Excluding these items does not necessarily imply they are non-recurring, infrequent or unusual. Adjusted EBITDA is also used by some investors and analysts for the purpose of valuing a company. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to operating earnings or net earnings determined in accordance with IFRS as an indicator of the Company’s financial performance or as a measure of the Company’s liquidity and cash flows. Adjusted EBITDA does not take into account the impact of working capital changes, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the consolidated statements of cash flows.
Forward-Looking Statements
This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy.
The forward-looking information contained in this press release, includes, but is not limited to, statements with respect to: a future change in the treatment of the reported impairment losses if and when the crypto market improves and the value of the assets increases, our outlook on the long-term viability of the crypto mark, our strategy and operations and the proposed issuance of securities to a former Ronin executive. Forward-looking information is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management’s perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct.
By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation, those discussed in the Company’s current MD&A and Annual Information Form, both of which have been filed on SEDAR and can be accessed at www.sedar.com.
Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.