Logiq
Reports
2020
Revenue
up
9.4%
to $37.9
Million
New
York, NY -- March 30, 2021 -- InvestorsHub NewsWire
-- Logiq, Inc. (OTCQX: LGIQ), a global provider of
award-winning eCommerce and fintech solutions, reported results for
the fourth quarter and full
year ended December
31,
2020. All quarterly
and
yearly
comparisons are to the same
year-ago
period unless
otherwise noted.
Financial
Highlights
-
Revenue
for
the full year
2020 increased 9.4% to $37.9 million.
-
Consolidated
gross profit in 2020 increased
2.0%
to
$6.4 million
or
16.8% of consolidated
revenue.
-
Gross margins
for AppLogiq, the company's
mobile
commerce
platform-as-a-service,
improved from a low of
11.8% in
Q2 to 25.6% by Q4 – a record level gross
margin for this business segment.
-
Cash and cash equivalents
and restricted
cash totaled
$3.5
million
at
December 31,
2020.
Q4
2020
Operational
Highlights
-
Launched
AppLogiq-powered
mobile
micro-lending
program
in
Indonesia
in an
exclusive strategic alliance with Indonesia's
social
security program provider, enabling
mobile
financial services for millions of
Indonesians and SMBs.
-
Acquired
Fixel
AI, an
award-winning innovator of AI-powered digital marketing
technology, which added
simplified
marketing and critical privacy features to DataLogiq's
AI-powered
consumer intent engine designed for brands and premium
publishers.
-
Initiated
process to uplist the company's
common stock on
the
NEO Exchange
(NEO),
Canada's next-generation stock exchange. A listing on the
NEO also presents an
opportunity to eventually list on the NYSE American exchange, and
become dual-listed on recognized exchanges in both Canada and the
U.S. The company
received
conditional approval from the NEO as of last
Friday, pending OSC clearance for
the company's Canadian
IPO.
-
Launched a new
food delivery service, "Dine in Your
Car," under the
atozGO
Mall™ brand for shoppers
at
the
Pondok
Indah
Mall in Indonesia.
-
Appointed
Silicon
Valley martech senior
executive, Steven J.
Hartman, as chief product
officer. He brings to
Logiq more
than 25
years of experience in enterprise software and marketing at major
technology companies, including Yahoo!, IBM, Acxiom, Kenshoo, The
Rubicon Project, and Siebel Systems.
-
Appointed Josh
Jacobs to the company's
board of
directors. Jacobs is
a highly
accomplished technology executive with 30 years of innovation in
digital media and advertising, sales and marketing, and strategic
business and consumer product development. Soon after the close of
the quarter, the company also appointed Lea Hickman
to the board of
directors, which expanded
the board to
eight members, with five serving
independently. Hickman is a seasoned
technology product strategist with more than 25 years' experience
building and executing go-to-market strategies.
Management
Commentary
"Despite the impact of the
pandemic on our AppLogiq business, we increased
revenue by 9.4% to $37.9 million in 2020
thanks to our
new DataLogiq subsidiary that we acquired at the
start of the
year,"
commented company president, Brent
Suen. "Consolidated gross profit
for the full year also increased 2.0% to $6.4 million or 16.8% of
consolidated revenue. Most remarkably, we saw gross margins for our
AppLogiq business improve despite the
pandemic, from 11.8% in Q2 to 12.4%
in Q3, and then to 25.6% in Q4. This was the result of eliminating
low margin, white label partnerships that were impacted by the
pandemic, and turning our
focus on the
most profitable segments we serve with this mobile app business
enablement platform.
"While the margin improvement is
encouraging, we are actually more
excited about
our future margin prospects, particularly for our e-commerce
business of DataLogiq and our recent strategic acquisitions. Over
the past year, we have acquired three leading
e-Commerce platforms as we expanded our global
presence, including Rebel AI that
we
announced this
morning. Our product offerings
now extend from mobile commerce and fintech solutions for
small-to-medium-sized businesses or SMBs, to AI-powered
customer acquisition for major enterprises and brands.
"As an innovator in digital
marketing solutions, Rebel AI
delivers
strong
e-commerce
growth to brands and agencies. Rebel complements our new
Fixel
AI unit that
we acquired
in the fourth
quarter. Fixel added simplified marketing
and critical privacy features to our AI-powered consumer intent
engine which is used by major brands and premium publishers.
Through these key acquisitions, we have now become a
global
leader
in
data-driven, consumer intelligence and automated marketing
technology.
"The Rebel AI platform,
which we have already relaunched under the name of Logiq Digital
Marketing, enables SMB businesses to more effectively compete for
new customers against larger enterprises – leveling the playing
field like never before. Our value
proposition with Logiq Digital
Marketing is now so strong,
we have
already signed up new clients on this platform.
We are planning for the full integration of Rebel AI with
Fixel
and DataLogiq
to be completed within six months.
"Early in the second
quarter, we expect Fixel's
audience
scoring and segmentation feature will be available to customers who
have been using Rebel AI. Then by the end of Q3, we expect
Fixel
to be fully
and seamlessly integrated within our Rebel AI technology
deployment.
"As global e-commerce
sales now reach upwards of $4.2 trillion
in a more than
$26 trillion retail industry, it's predominantly
the largest
brands that are capitalizing on their
fullest potential. In the U.S. alone, the top
10 e-commerce players account for
63% of online sales.
We believe
that a market dominated by so few
players is not really a healthy marketplace. Our platform
is designed to
change all this, to level the playing field for SMBs to better complete for
media spend and customer
acquisition.
"In preparation for
the
market
opportunity ahead, over the past year we strengthened our corporate
governance and expanded our management team, bringing on ad tech
veterans like
Steven
Hartman, appointing
Josh Jacobs and
Lea Hickman to our board, and
we're
now adding
Manny Puentes from Rebel AI to our executive team.
"Earlier this month, we
joined forces with Comviva, a global leader in digital financial
solutions, to offer digital wallet and payment services
to
millions of
mobile users and SMBs
across
Indonesia. The services will be based on our PayLogiq digital
wallet and powered by Comviva's
mobiquity
Pay
platform. We see the potential for
this opportunity
to
eventually
generate tens of millions in annual
fees for Logiq over time.
"We believe we
have arrived
at a pivotal moment in our growth and development where
everything
will
begin to
accelerate. We've now
brought
together the technologies
to create a
superior digital marketing solution, and
have assembled
the best minds in the industry to bring it to market.
"Despite
a year of unexpected challenges and setbacks, we have been able to
transform Logiq into a global provider of a full-range of
e-commerce
solutions for companies of all sizes.
This has put us on course for strong growth in 2021 and into 2022,
with diversified, high-margin revenue streams derived from the
strongest segments of our industry. Given the
strong industry
tailwinds at our
back, we believe
that we are on
track to end 2021
with
record revenue at more than $40 million with
stronger
margins
across all of our business segments."
Q4
2020
Financial
Summary
Revenue decreased
34.3%
to
$6.6 million in
the
fourth
quarter
of 2020, as compared to
$10.0 million in
the same
year-ago quarter, with the decrease
largely due to the impact of COVID-19.
The company's
AppLogiq
mCommerce
platform-as-as-service (PaaS) contributed
$2.1 million
or
32.1% of consolidated revenue
in the fourth quarter, which
decreased
78.9% from $10.0 million or
100% of consolidated revenue
in the same year-ago period. The decrease
was
primarily due
to the impact of COVID-19
lockdowns as well as the transition to lower revenue but higher
margin business.
Gross profit
decreased
25.6% to $1.4 million or
21.1% of revenue
in
Q4
2020
from
$1.9 million or
18.6% of revenue in
the same
year-ago quarter. The decrease in
gross
profit resulted
primarily
from
lower revenues
for the quarter. The increase in gross
margins was the result of eliminating
low margin, white label partnerships that were also impacted by
the pandemic,
and
focusing on
the more profitable segments
the
company serves with its mobile app business
enablement platform.
Total operating
expenses increased
51.6%
to
$8.5 million
in
Q4
2020
from
$5.6 million
in the
same
year-ago
period. The increase in operating
expenses was mainly due to the addition of DataLogiq's
general and
administrative expense of $1.3 million, depreciation and
amortization expenses of $0.6 million and an increase of
AppLogiq's
general and
administrative expenses of $0.9 million and sales and marketing of
$0.6 million compared to the same period a year ago. This was
partially offset by AppLogiq's
research and
development expense decreasing by $0.5 million in the fourth
quarter.
Net loss was $7.1 million or
$(0.51) per basic and fully
diluted share in Q4 2020, compared to net
loss
of
$3.8 million
or
$(0.47) per basic and fully
diluted share in the same year-ago period.
At December
31,
2020, cash and cash equivalents
totaled
$3.5 million, compared to
cash
and cash
equivalents of $4.8 million
at
September
30, 2020.
2020
Financial
Summary
Revenue increased
9.4% to $37.9 million
in
2020, as compared to
$34.6 million in
2019.
The increase
is due to the inclusion of the revenues of DataLogiq effective January 8,
2020. AppLogiq revenues declined by 34%
as compared to 2019 due to a loss of customers as a result of
adverse
effects of the COVID-19 pandemic,
and from a
strategic shift from white label App resellers
to
higher margin
direct marketing to customers.
Gross profit
increased 2.0% to $6.4 million or
16.8% of revenue
for
full
year 2020, compared to
$6.2 million or
18.0% of revenue in
the same year
ago period.
Total operating
expenses increased
60.9%
to
$20.6 million
for
full
year 2020 from $12.8 million
in the same
year-ago
period. The increase in operating
expenses was primarily due to the inclusion of DataLogiq operating
expenses, which totaled $6.9
million.
Net loss was
$14.5 million or
$(1.14) per basic and fully
diluted share in the full year
2020, compared to net loss
of $6.5 million
or
$(1.31) per basic and fully
diluted share in the same year-ago period. The increase in the loss
is due to increase in research & development costs, legal and
professional costs, travelling cost, consultancy fee, stock-based
compensation and increase in research &
development.
Conference
Call
Logiq management will
host a
conference call, followed by a
question-and-answer period.
Date: Tuesday, March 30,
2021
Time: 1:00 p.m. Eastern
time (10:00 a.m. Pacific time)
Toll-free dial-in number:
1-800-289-0438
International dial-in
number: 1-323-794-2423
Conference ID:
1612917
Please call the conference
telephone number five minutes prior to the start time. An operator
will register your name and organization. If you have any
difficulty connecting with the conference call, please contact CMA
at 1-949-432-7566.
A replay of the call will
be available after 4:00 p.m. Eastern time on the same day through
Tuesday, April 13, 2021, as well as available for replay via the
Investors section of the Logiq website at
www.logiq.com/ir.
Toll-free replay number:
1-844-512-2921
International replay
number: 1-412-317-6671
Replay ID:
1612917
About
Logiq
Logiq, Inc. (OTCQX: LGIQ) is a U.S.-based leading global
provider of eCommerce, mCommerce, and fintech business enablement
solutions. Its DataLogiq subsidiary provides a data-driven,
end-to-end eCommerce marketing solution for enterprises and major
U.S. brands, including Home Advisor, QuinStreet
and Sunrun.
Its AI-powered LogiqX™ data engine delivers
valuable consumer insights that enhance the ROI of online marketing
spend. The company's Fixel™ technology offers
simplified online marketing with critical privacy
features.
Logiq's AppLogiq™
platform-as-a-service enables small- and medium-sized businesses
worldwide to easily create and deploy a native mobile app for their
business without technical knowledge or background. AppLogiq
empowers businesses to reach more customers, increase sales, manage
logistics, and promote their products and services in an easy,
affordable, and highly efficient way. AppLogiq is offered in 14
languages across 10 countries and three continents, including some
of the fastest-growing emerging markets in Southeast Asia. The
company's
PayLogiq™ offers mobile payments,
and
GoLogiq™ offers hyper-local food
delivery services.
Forward-Looking
Disclaimer
This press
release may contain certain forward-looking statements and
information, as defined within the meaning of Section 27A of the
Securities Act of 1933, as amended,
and Section
21E of the Securities Exchange Act of 1934, as amended,
and is subject
to the Safe Harbor created by those sections. Logiq cautions you
that statements in this press release that are not a description of
historical facts are forward-looking statements. These statements
are based on Logiq's current beliefs and expectations. The
inclusion of forward-looking statements should not be regarded as a
representation by Logiq or its affiliates that any of its plans or
expectations will be achieved. Actual results may differ from those
set forth in this press release due to the risk and uncertainties
inherent in Logiq's business, including, without limitation: the
ability of Logiq to successfully complete the NEO listing process,
the fitness of Logiq's products and services for a particular
application or market, the ability to effectively integrate Rebel
AI into our business operations, expectations of future events,
business trends, financial results, and/or business transactions
that may not be consummated or realized, as well as other risks
described in Logiq's prior press releases and in its filings with
the Securities and Exchange Commission ("SEC"), including under the
heading "Risk Factors" in Logiq's Annual Report on Form 10-K and
any subsequent filings with the SEC. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof, and Logiq undertakes no obligation to
revise or update this press release to reflect events or
circumstances after the date hereof.
Company
Contact
Brent Suen,
President
Logiq, Inc.
Email contact
Media
& Investor Contact
Ronald Both or Grant
Stude
CMA Investor & Media
Relations
Tel (949)
432-7566
Email contact
LOGIQ INC.
Consolidated Balance Sheets
|
|
December 31
|
|
|
December 31
|
|
|
|
2020
|
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Intangible assets,
net
|
|
|
11,736,540
|
|
|
|
611,598
|
|
Property and
equipment, net
|
|
|
178,561
|
|
|
|
-
|
|
Goodwill
|
|
|
5,078,090
|
|
|
|
-
|
|
Total
non-current assets
|
|
|
16,993,191
|
|
|
|
611,598
|
|
Current assets
|
|
|
|
|
|
|
|
|
Amount
due from associate
|
|
|
5,673,700
|
|
|
|
2,825,700
|
|
Accounts
receivable
|
|
|
2,618,494
|
|
|
|
-
|
|
Right
to use assets – operating lease
|
|
|
364,234
|
|
|
|
-
|
|
Other
amounts recoverable
|
|
|
-
|
|
|
|
549,550
|
|
Prepayment,
deposit
and
other receivables
|
|
|
206,443
|
|
|
|
1,641,684
|
|
Financial
assets held
for resale
|
|
|
594,263
|
|
|
|
2,730,363
|
|
Restricted
cash
|
|
|
10,889
|
|
|
|
-
|
|
Cash
and cash equivalents
|
|
|
3,478,889
|
|
|
|
2,972,649
|
|
Total
current assets
|
|
|
12,946,912
|
|
|
|
10,719,946
|
|
Total assets
|
|
$
|
29,940,103
|
|
|
$
|
11,331,544
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDER'S EQUITY
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
1,009,204
|
|
|
|
-
|
|
Accruals and other
payables
|
|
|
1,110,732
|
|
|
|
298,453
|
|
Deferred
revenue
|
|
|
46,857
|
|
|
|
-
|
|
Lease
liability – operating lease
|
|
|
364,234
|
|
|
|
-
|
|
Convertible
promissory
|
|
|
2,911,000
|
|
|
|
-
|
|
Amount
due to director
|
|
|
77,500
|
|
|
|
77,500
|
|
Total
current liabilities
|
|
|
5,519,527
|
|
|
|
375,953
|
|
|
|
|
|
|
|
|
|
|
Non-Current Liabilities
|
|
|
|
|
|
|
|
|
Other
loan
|
|
|
10,000
|
|
|
|
-
|
|
Notes
payable
|
|
|
507,068
|
|
|
|
-
|
|
Bank
loan
|
|
|
-
|
|
|
|
500,000
|
|
Total
non-current liabilities
|
|
|
517,068
|
|
|
|
500,000
|
|
Total liabilities
|
|
|
6,036,595
|
|
|
|
875,953
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Common
stock, $0.0001 par value, 250,000,000 shares authorized, 15,557,439
and 8,561,704 shares issued and outstanding as of December 31, 2020
and 2019, respectively*
|
|
|
1,556
|
|
|
|
11,130
|
|
Additional paid-in
capital
|
|
|
66,739,895
|
|
|
|
58,058,118
|
|
Capital
reserves
|
|
|
19,285,383
|
|
|
|
-
|
|
Accumulated
deficit brought forward
|
|
|
(62,123,326
|
)
|
|
|
(47,613,657
|
)
|
Total stockholder's equity
|
|
|
23,903,508
|
|
|
|
10,455,591
|
|
Total liabilities and stockholders' equity
|
|
$
|
29,940,103
|
|
|
$
|
11,331,544
|
|
|
|
|
|
|
|
|
|
|
|
*
|
The number of
shares of common stock has been retroactively restated to reflect
the 1 for 13 reverse stock-split on February 25, 2020.
|
LOGIQ INC.
Consolidated Statements of Operations
|
|
For
The
Years Ended
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
Service
Revenue
|
|
$
|
37,910,393
|
|
|
|
34,648,621
|
|
Cost
of Service
|
|
|
31,546,948
|
|
|
|
28,411,869
|
|
Gross
Profit
|
|
|
6,363,445
|
|
|
|
6,236,752
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,966,045
|
|
|
|
101,933
|
|
Research and
development
|
|
|
6,244,704
|
|
|
|
6,412,998
|
|
Sales
and marketing
|
|
|
1,423,909
|
|
|
|
389,610
|
|
General and
administrative
|
|
|
10,994,815
|
|
|
|
5,918,660
|
|
Total
Operating Expenses
|
|
|
20,629,473
|
|
|
|
12,823,201
|
|
|
|
|
|
|
|
|
|
|
(Loss)
from Operations
|
|
|
(14,266,028
|
)
|
|
|
(6,586,449
|
)
|
|
|
|
|
|
|
|
|
|
Other
Expenses
|
|
|
292,767
|
|
|
|
-
|
|
Other
Income
|
|
|
49,126
|
|
|
|
72,359
|
|
Other
Income/(Expenses), net
|
|
|
(243,641
|
)
|
|
|
72,359
|
|
|
|
|
|
|
|
|
|
|
Net
(Loss) before income tax
|
|
|
(14,509,669
|
)
|
|
|
(6,514,090
|
)
|
Income
tax (Corporate tax)
|
|
|
-
|
|
|
|
27,596
|
|
Net
(Loss) for the year
|
|
$
|
(14,509,669
|
)
|
|
|
(6,541,686
|
)
|
|
|
|
|
|
|
|
|
|
Net
(loss) profit per common share - basic and fully
diluted:
|
|
|
(1.1444
|
)
|
|
|
(1.3059
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of basic and fully diluted common shares
outstanding*
|
|
|
12,678,904
|
|
|
|
5,009,312
|
|
|
|
|
|
|
|
|
|
|
*
|
The weighted
average number of shares of common stock has been retroactively
restated to reflect the 1 for 13 reverse stock-split on February
25, 2020.
|