Glance Technologies Inc. (CSE:GET / OTCQB:GLNNF / FKT:GJT)
(“Glance” or the “Company”) today announced financial results for
the three and six month period ended May 31, 2019.
Overview
Glance’s net loss was ($6,826,000) or ($0.05)
per share in Q2 2019. The adjusted EBITDA for Q2 2019 was a loss of
($1,614,000) compared to a loss of ($2,750,000) in Q2 2018. While
Glance continued to decrease its overhead expenses, a significant
factor of this net loss was a decrease in the market value of
Glance’s marketable securities of $3.6 million and the accounting
for a one-time R&D expense related to the completion of
Glance’s transaction with Fobisuite Technologies Inc. (“Fobisuite”)
of $1.5 million. Glance’s working capital as at May 31, 2019 was
$6,947,000 and it has no long-term debt.
During the quarter, Glance rolled out Real-Time
Bill™ to nine merchants including Steamworks and the Rogue Bar
chain, the Mr. Mike’s Steakhouse Casual Restaurant chain and
popular Vancouver restaurants such as Fable Diner, Dunn’s Famous
Restaurant and and Mary’s on Davie. Glance has received strong
interest from many of its signed merchants and new prospects to
adopt its new features. Glance believes its new capabilities
significantly improve the value proposition of its platform to both
consumers and merchants.
“Revenue for the second Quarter of 2019 was
unsatisfactory,” says Jonathan Hoyles, Glance’s interim CEO, “On
the positive side, we expect that the renewed efforts of our
R&D, marketing and sales teams that are currently being
undertaken will be reflected in our operating results in the fourth
quarter of 2019. We have significant working capital and no
long-term debt. We launched nine locations with our new Real-Time
Bill product in this past quarter and continued progress is being
made in both converting existing and signing up new merchants with
our new product features. We place great confidence in our team as
we look to grow and diversify sources of revenue. This confidence
is echoed by our customers.”
Warren Goss, VP of Operations, Rammp Hospitality
Inc. had this to say about Glance Pay: “Glance has helped MR MIKES
Steakhouse Casual in our core philosophy of delivering the best
experience for our guests. Having been a longstanding partner with
Glance allows MR MIKES to benefit from their technology and
introduce valuable new features such as, Real-Time Bill. Our
guests can now access their bill from their table and pay when they
are ready, regardless of how busy their server might be.
Glance is in line with how we incorporate advancements in our
industry to stay competitive.”
Carl McCreath, President of Restaurant
Operations, Steamworks Group of Companies said this about Glance:
“The increase in labour costs has been a very real problem for the
restaurant industry. Glance has been a true partner to the
Steamworks Group of Companies and has delivered through genuine
service and innovation. As we transitioned from Glance's
PayByPhoto technology to Real Time Bill, we have seen an even
bigger increase in guest adoption, guest satisfaction and time
savings for our servers. Glance Pay continues to make a
positive impact on my bottom line.”
Q2 2019 Financial
Highlights(all figures are rounded to the nearest
thousand):
- Comprehensive loss was $6,826,000 or ($0.05) per share,
compared to a comprehensive loss of $4,567,000 or $(0.03) per share
in Q2 2018. This increase of 52% is primarily due to the unrealized
gain on marketable securities of $3.6 million and the finalization
of the Fobisuite licensing agreement of $1.5 million which was
expensed in the current quarter.
- Cash utilized in operating and investing activities in Q2 2019
was $1,170,000, compared to $3,250,000 in Q2 2018, representing a
64% decrease and continued commitment to the Company’s overall
efficient spend.
- Revenue of $44,000 in fiscal 2019 decreased 81% from $229,000
in Q2 2018. As anticipated, licensing revenues have fluctuated
significantly due to changes made to existing license agreements. A
review was also carried out over the recognition periods of the
licensing agreements.
- Working capital at May 31, 2019 was $6,947,000 (November 30,
2018: $6,962,000) and no long-term debt ($nil at November 30,
2018).
- Overall, the Company continues to work to reduce costs in many
categories and has made significant changes to better utilize its
cash resources going forward. Costs incurred on operating
activities were approximately $3.2 million in Q2 2019, compared to
$3.9 million in Q2 2018. Included in the Q2 2019 operating
activities is $1.5 million for the Fobisuite license and the
remaining $1.7 million is other operating costs. Glance intends to
continue to spend efficiently during the remainder of the fiscal
year.
Q2 2019 Highlights:
- Launched the Real-Time Bill™ feature at more restaurants,
including Steamworks and the Rogue Bar chain, the Mr. Mike’s
Steakhouse Casual Restaurant chain and popular Vancouver
restaurants such as Fable Diner, Dunn’s Famous Restaurant and at
Mary’s on Davie.
- Previewed its new Order-From-Table™ feature.
- Amended an agreement to complete its transaction with Fobisuite
Technologies Inc.
- Entered into a joint venture with Kinect Technologies Inc. to
form Converge MobiSolutions Inc.
The Company’s complete financial results for the
second quarter of 2019 are available in its Condensed Consolidated
Interim Financial Statements and Management’s Discussion and
Analysis, each of which are filed with Canadian securities
regulators at www.sedar.com.
Subsequent Events
The following subsequent events occurred
following the end of the second quarter of 2019:
- On June 6, 2019, it was announced that Gary Zhang would be
replacing Angela Griffin as Glance’s CTO.
- On June 12, 2019, Loop Insights Inc. (“Loop”) announced the
completion of its reverse take-over and closing of oversubscribed
private placement at $0.80 per unit. Glance holds 1,000,000 common
shares of Loop.
- On June 12, 2019, it was announced that Jonathan Hoyles would
be replacing Desmond Griffin as Glance’s interim CEO.
- On June 17, 2019, it was announced that Issa Nakhleh would be
replacing Laura Burke as Glance’s CFO.
- On June 19, 2019, Loop started trading on the TSX-V under the
symbol “MTRX”.
Outlook
The Company’s strategic priorities for
fiscal 2019 include:
- Develop growing and diversified sources of revenue;
- Grow monthly recurring revenue through a tiered
“Software-as-a-Service” (SaaS) subscription model by adding new
merchants and consumers, and generate new revenue from advertising,
promotions and consumer fees for premium features;
- Rollout Glance’s new Real-Time Bill™ feature broadly to
existing and new customers;
- Launch Order-From-Table™ and Pre-Order;
- Continue to develop Glance’s Order-From-Bar™ product;
- Expand our footprint through both direct sales and joint
efforts with our business partners;
- Investigate new geographic markets for Glance Pay®; and
- Continue to search for logical extensions and applications of
our technology.
IFRS
The operational and financial information in
this release is based on the consolidated figures in accordance
with International Financial Reporting Standard (IFRS) and with the
exception of information on investments and behaviour of markets,
quarterly financial statements are reviewed by the Company’s
independent auditors.
About Glance Technologies
Inc.
Glance owns and operates Glance Pay®, a
streamlined payment system that revolutionizes how smartphone users
choose where to shop, order goods and services, make payments,
access digital receipts, redeem digital deals, earn great rewards
& interact with merchants. Glance offers targeted in-app
marketing, geo targeted digital coupons, customer feedback,
in-merchant messaging and custom rewards programs. The Glance Pay®
mobile payment system consists of proprietary technology, which
includes user apps available for free downloads in iOS (Apple) and
Android formats, merchant manager apps, a large-scale technology
hosting environment with sophisticated anti-fraud technology and
lightning-fast payment processing.
For more information about Glance, please go to
www.glance.tech.
For more information,
contact:
Laura Burke |
|
Jonathan Hoyles |
Chief Financial Officer |
|
Interim Chief Executive Officer |
778-819-1352 |
|
833-338-0299 |
laura@glancepay.com |
|
investors@glancepay.com |
Neither the Canadian Securities Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the Canadian Securities Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains forward-looking
information or forward-looking statements (collectively
"forward-looking information") within the meaning of applicable
securities laws. Forward-looking information is typically
identified by words such as: “may”, "believe", “thinks”, "expect",
“exploring”, “expand”, “could”, "anticipate", "intend", "estimate",
“plan”, “pursue”, "potentially", “projected”, “should”, “will” and
similar expressions, or are those, which, by their nature, refer to
future events. These forward-looking statements, which involve
risks and uncertainties, relate to, among other things, the
discussion of Glance’s business strategies and its expectations
concerning future operations (including advancing its technological
roadmap); the expectation that products like our Real-Time Bill™,
Order-From-Table™, and Order-From-Bar™ are the future of paying and
ordering; that the renewed efforts of our R&D, marketing and
sales teams that are currently being undertaken will be reflected
in our operating results in the fourth quarter of 2019; that there
is strong interest from many of its signed merchants and new
prospects to adopt the Company’s new product features; the
expectation that Glance will sign up new merchants and users with
its new features; that Glance continues to work to reduce costs in
many categories and will better utilize its cash resources going
forward, the expectation that some of the recent changes the
Company has adopted will be reflected in further cost reductions in
future quarters; the expectation that Glance will launch its new
product features over the coming months, improve its capacity for
monetization, the expectation that Glance will grow and diversify
sources of revenue; the expectation that Glance will grow monthly
recurring revenue through a tiered Software-as-a-Service
subscription model by adding new merchants and consumers, and
generate new revenue from advertising, promotions and consumer fees
for premium features; the expectation that Glance will roll out its
new Real-Time Bill feature broadly to existing and new customers;
the expectation that Glance will launch and rollout its upcoming
Order From Table feature. Although Glance considers these
forward-looking statements to be reasonable based on information
currently available to it, they may prove to be incorrect, and the
forward-looking statements in this release are subject to numerous
risks, uncertainties and other factors that may cause future
results to differ materially from those expressed or implied in
such forward-looking statements. Such risk factors include, among
other things, the risk that Glance is unable to continuously add
new merchants as planned, risks related to expansion, both
internationally and in North America, risks related to
unforeseeable expenses, and risks related to Glance’s licensing
partners, and risks that the Company’s software and applications
may contain security problems, security vulnerabilities, or defects
in design or manufacture, including “bugs” and other problems that
could interfere with the intended operation of its software, and
risks associated with the adoption and development of blockchain
platforms. The forward-looking information in this press release is
also based on certain estimates, forecasts and projections, as well
as expectations, beliefs and assumptions, including, among other
things, that Glance will be able to achieve its business
objectives, that Glance will be able to develop proprietary
software to implement its plans, Glance will be successful in
obtaining and retaining clients and licensees for its software, and
that Glance will be able to expand its operations successfully in
new markets. For additional information with respect to these
and other factors and assumptions underlying the forward-looking
statements in this press release, see the section entitled “Risk
Factors” in the most recent Annual Information Form and Prospectus
of Glance, which may be accessed through Glance's profile on SEDAR
at www.sedar.com. Glance cautions investors that any
forward-looking information provided by Glance is not a guarantee
of future results or performance, and that actual results may
differ materially from those in forward-looking statements. Undue
reliance should not be placed on such forward-looking information,
as there can be no assurance that the plans, intentions or
expectations upon which they are based will occur.
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