NEW YORK, NY -- Nov. 17, 2021 -- InvestorsHub
NewsWire -- Logiq,
Inc. (OTCQX:
LGIQ, NEO:
LGIQ), a global provider of award-winning consumer acquisition
solutions, reported results for the third quarter ended September
30, 2021. All comparisons are to the same year-ago period unless
otherwise noted.
The company will hold a conference call at 5:00 p.m. Eastern
time today to discuss the results (see dial-in information
below).
Q3 2021 Financial Highlights
- Revenue increased 11% to $7.8 million.
- Overall gross profit increased 108% to $2.3 million.
- Consolidated gross margin was 29.5%, up 13.7 percentage
points.
- Gross margin for DataLogiq, the company's data-driven,
end-to-end e-commerce marketing solution, improved from 18.9% to
28.2%.
- Gross margin for AppLogiq, the company's mobile commerce
platform-as-a-service (PaaS), improved from 12.1% to 31.7%.
- Cash and cash equivalents and restricted cash totaled $5.3
million as of September 30, 2021.
AppLogiq Operational Highlights
- Received Indonesian government approval of an annual lending
rate for offering micro-lending services to more than 50 million
Indonesians.
- Launched exclusive mobile payment option for driver license
psychological testing in Indonesia following recently announced
partnership with Mentalku, the exclusive government-licensed
provider of driver license psychological testing in Indonesia.
- Announced planned launch of first-ever super app in Indonesia
that combines all of AppLogiq's mobile e-commerce and fintech
solutions into one mobile app for easier access and
interoperability.
- Entered into preliminary agreement with Novaji Introserve, a value-added IT and
financial services company based in Lagos, to provide home delivery
and mobile financial services to millions of unbanked and
underbanked people in Nigeria.
DataLogiq Operational Highlights
- Added auto, life and health insurance verticals to Logiq
Consumer Marketplace (LCM).
- Integrated SMS, email and call center support into Logiq
Digital Marketing™ (LDM) platform.
- Joined forces with Peer39 to provide small and medium sized
brands (SMBs) with the industry's largest and most scaled pre-bid
keyword, contextual and brand safety solutions for modern
markets.
- Launched geofencing-based targeting on the LDM platform,
enabling marketers to customize messaging based upon context of
consumer location.
- Partnered with IRIS.TV to provide greater transparency and
performance in streaming video for e-commerce marketers, and teamed
with GumGum to add contextual intelligence to multi-channel
marketing campaigns.
- Added direct media buying to LDM platform for access to web,
mobile and connected TV and audio media providers across the Asia
Pacific region.
Other Operational
Highlights
- Promoted Steven Hartman to chief operating officer to lead the
company's global strategy, branding and communications, setting
performance goals and managing an effective corporate
infrastructure.
- Engaged The Benchmark Company to assist Logiq in a
restructuring initiative designed to separate the company's
DataLogiq and AppLogiq businesses into two independent publicly
traded companies, with the separation approved by Logiq's board of
directors in October.
Management Commentary
"Our performance in Q3 demonstrates we have finally pivoted back to
year-over-year growth after emerging from the severe impact of the
global pandemic," commented Logiq president, Brent Suen. "Also
during this period, we refocused our efforts on higher margin,
higher quality revenue streams while eliminating low margin revenue
sources. As a result, our gross margin expanded to more than 29.5%,
nearly double from 15.8% in the same year-ago quarter.
"Over the last several months we have also established a
stronger foundation for addressing the abundant e-commerce
opportunities worldwide. For DataLogiq, we added auto, life and
health insurance verticals to our strong Medicare vertical, with
this enabled by the investments we made this past year in our
foundational marketing and customer acquisition
technology.
"Our Logiq Consumer Marketplace has been gaining solid traction
with new and existing customers. We recently reported that our
proprietary DataLogiq scoring system for client customer
acquisitions is driving a ramp up in e-commerce campaign activity,
including with a long-time client which is a multi-billion-dollar
publicly traded company.
"During the quarter we made significant investments into our
Logiq Digital Marketing platform's ability to efficiently and
economically help brands and agencies advertise on valuable
streaming video and connected TV content. We also added contextual
and brand safety solutions. Accounting for context has proven to be
a superior targeting method, especially compared to using
third-party cookies. The decisions by media platforms to phase out
the usage of third-party cookies further underscores the value and
importance of our contextual targeting solutions.
"As a further means to unlock shareholder value, we recently
announced the board approval of our plans to separate our DataLogiq
and AppLogiq businesses into two independent publicly traded
companies. We believe that by creating two standalone businesses,
DataLogiq and AppLogiq will be in a better position to capitalize
on their respective growth opportunities in the rapidly evolving
e-commerce and fintech landscape.
"We also believe that the separation will create higher peer
valuations as compared to where Logiq is today. An analyst who
follows us recently said that for Logiq, 'the sum of the parts is
greater than the whole.' We couldn't agree more. Based solely on
our review of comparable public market valuations, as well as
private equity funding that we are seeing for companies in the
emerging markets fintech sector, we believe a standalone valuation
for AppLogiq could be pegged at $100 million or more.
"In late September, we engaged a leading U.S. investment bank,
The Benchmark Company, to assist us with this separation and
potentially other related transactions. All of this is proceeding
smoothly, and we anticipate finalizing the separation before the
end of the year, subject to standard closing conditions.
"Looking ahead, there are new mobile transactions and lending
revenue streams coming online with AppLogiq. We have established an
extensive pipeline of potential acquisitions for both AppLogiq and
DataLogiq post-separation, and we are currently in discussions with
a number of what we believe to be complementary and high-value
accretive targets. We also have the funding and advisors in place
to help us facilitate such potential transactions.
"Based upon this potential deal pipeline and the potential for
strong partnerships or client relationships with those that we do
not enter into strategic transactions with, on the DataLogiq side
we have set a goal of $50 million to $75 million in annualized
revenue by the end of 2022. However, no assurances can be provided
that we will enter into any strategic transactions with those
companies in the pipeline, or that the results of any such
transactions will allow us to reach this goal.
"The same holds true for AppLogiq in terms of its 2022 revenue
target and M&A pipeline. In fact, we currently have certain
current partners who have expressed interest in becoming part of
the new AppLogiq public company as it is formed.
"As we look ahead to the final weeks of 2021, we see positive
trends continuing to emerge across our business lines, keeping us
on course for continued revenue growth and gross margin expansion
in the final quarter, and setting the stage for our best year to
come."
Q3 2021 Financial Summary
Revenue increased 11% to $7.8 million in the third quarter of
2021 as compared to $7.0 million in the same year-ago quarter. The
increase from the year-ago period demonstrated continued positive
trends based on key strategic decisions made by management.
AppLogiq contributed $2.8 million or 36% of consolidated revenue
in Q3 2021, a decrease of $0.4 million from $3.2 million or 46% of
consolidated revenue in the same year-ago period. The decrease was
primarily due to the strategic shift to target high margin end
customers compared to low margin high volume white label
resellers.
DataLogiq contributed $5.0 million or 64% of consolidated
revenue in Q3 2021, which increased 30% from $3.8 million or 54% of
consolidated revenue in the same year-ago period. The increase in
revenue is due to an increase in data monetization revenue.
Overall gross profit increased 108% to $2.3 million or 29.5% of
revenue in Q3 2021 from $1.1 million or 15.8% of revenue in the
same year-ago period.
AppLogiq's gross profit increased 133% to $0.9 million or 31.7%
of AppLogiq revenue in Q3 2021 from $0.4 million or 12.1% of
AppLogiq revenue in the same year-ago period. The increase was
primarily due to the strategic shift to target high margin end
customers compared to low margin high volume white label
resellers.
DataLogiq's gross profit increased 94% to $1.4 million or 28.2%
of DataLogiq revenue in Q3 2021 compared to $0.7 million or 18.9%
of DataLogiq revenue in the same year-ago period. The increase was
due to an increase in data monetization revenues and a decrease in
overall customer acquisition costs.
Total operating expenses increased to $8.1 million in Q3 2021
compared to $4.0 million in the same year-ago period. The increase
in operating expenses was mainly due to an increase in general and
administrative expenses of $3.2 million. The increase in operating
expenses was also due to an increase in research and development
expense of $0.4 million and an increase in depreciation and
amortization expense of $0.6 million, partially offset by a
decrease in sales and marketing expense of $68,000.
Net loss was $5.8 million or $(0.25) per basic and fully diluted
share in Q3 2021. This compared to net loss of $2.9 million or
$(0.23) per basic and fully diluted share in the third quarter of
2020.
As of September 30, 2021, cash and cash equivalents and
restricted cash totaled $5.3 million, compared to cash and cash
equivalents and restricted cash of $5.8 million as of June 30,
2021.
First Nine Months 2021 Financial Summary
Revenue decreased 23% to $24.2 million in the first nine months
of 2021, compared to $31.3 million in the same year-ago period. The
decrease from the year-ago period was primarily due to a decrease
in AppLogiq revenue, partially offset by an increase in DataLogiq
revenue, which included revenue from Fixel AI and Rebel AI.
AppLogiq m-commerce platform-as-as-service (PaaS) contributed
$8.1 million or 34% of consolidated revenue in the first nine
months of 2021, which decreased 61% from $20.6 million or 66% of
consolidated revenue in the same year-ago period. The decrease was
primarily due to the company's strategic shift of targeting higher
margin end customer segment instead of lower margin, high volume
white label resellers.
DataLogiq contributed $16.1 million or 66% of consolidated
revenue in the first nine months of 2021, which increased 51% from
$10.7 million or 34% of consolidated revenue in the same year-ago
period. The increase was primarily due to improvement in its data
monetization business.
Overall gross profit increased 40% to $7.0 million or 28.8% of
revenue in the first nine months of 2021, compared to $5.0 million
or 15.9% of revenue in the same year-ago period.
AppLogiq's gross profit decreased 19% to $2.5 million or 31.2%
of AppLogiq revenue in the first nine months of 2021 from $3.1
million or 15.2% of AppLogiq revenue in the same year-ago period.
The improvement in gross margins was a result of the change in
strategic focus from bulk white label distributors to direct
marketing end users.
DataLogiq's gross profit increased 141% to $4.4 million or 27.6%
of DataLogiq revenue in the first nine months of 2021 compared to
$1.8 million or 17.3% of DataLogiq revenue in the same year-ago
period. The increase is due to an increase in data monetization
revenue and a decrease in overall customer acquisition costs.
Total operating expenses increased 84% to $22.3 million in the
first nine months of 2021, compared to $12.1 million in the same
year-ago period. The increase in operating expenses was due to an
increase in general and administrative expense of $8.0 million,
depreciation and amortization expense of $1.4 million, sales and
marketing expenses of $0.5 million, and research and development
expense of $0.3 million.
Net loss was $14.8 million or $(0.76) per basic and fully
diluted share in the first nine months of 2021. This compared to
net loss of $7.4 million or $(0.60) per basic and fully diluted
share in the first nine months of 2020.
Conference Call
Later today, Logiq management will host the call, followed by a
question-and-answer period.
Date: Monday, November 15, 2021
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-866-548-4713
International dial-in number: 1-323-794-2093
Conference ID: 1989608
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 8:00 p.m. Eastern
time on the same day through Monday, November 29, 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: 1989608
About Logiq
Logiq Inc. is a U.S.-based leading global provider of e-commerce
and fintech business enablement solutions. Its DataLogiq business
provides a data-driven, end-to-end marketing and consumer
acquisition solution. Its AI-powered LogiqX™ data engine delivers
valuable consumer insights that enhance the ROI of online marketing
spend and personalization. The company's Fixel technology offers
simplified online marketing with critical privacy features.
Its AppLogiq business, Logiq's platform-as-a-service, branded as
CreateApp™, enables small- and medium-sized businesses worldwide to
easily create and deploy a native mobile app for their business
without technical knowledge or background. CreateApp™ empowers
businesses to reach more customers, increase sales, manage
logistics, and promote their products and services in an easy,
affordable, and highly efficient way.
CreateApp™ 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, branded as
AtozPay™ in Indonesia, offers mobile payments, and GoLogiq, branded
as AtozGo™ in Indonesia, offers hyper-local food delivery services.
Connect with Logiq: Website | LinkedIn | Twitter | Facebook.
Important Cautions Regarding Forward Looking
Statements
This press release contains certain forward-looking statements and
information, as defined within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934 and is subject to the Safe Harbor created by those
sections. This press release also contains forward-looking
statements and forward-looking information within the meaning of
Canadian securities legislation that relate to Logiq's current
expectations and views of future events. Any statements that
express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumptions or future events or performance
(often, but not always, through the use of words or phrases such as
"will likely result", "are expected to", "expects", "will
continue", "is anticipated", "anticipates", "believes",
"estimated", "intends", "plans", "forecast", "projection",
"strategy", "objective" and "outlook") are not historical facts and
may be forward-looking statements and may involve estimates,
assumptions and uncertainties which could cause actual results or
outcomes to differ materially from those expressed in such
forward-looking statements. No assurance can be given that these
expectations will prove to be correct and such forward-looking
statements included in this press release should not be unduly
relied upon.
These statements speak only as of the date of this press
release. Forward-looking statements are based on a number of
assumptions and are subject to a number of risks and uncertainties,
many of which are beyond Logiq's control, which could cause actual
results and events to differ materially from those that are
disclosed in or implied by such forward-looking statements. In
particular and without limitation, this press release contains
forward-looking statements regarding our products and services, the
use and/or ongoing demand for our products and services,
expectations regarding our revenue and the revenue generation
potential of our products and services, our partnerships and
strategic alliances, the impact of global pandemics (including
COVID-19) on the demand for our products and services, industry
trends, overall market growth rates, our growth strategies, the
continued growth of the addressable markets for our products and
solutions, our business plans and strategies, the proposed
separation of Logiq's AppLogiq and DataLogiq business into two
public companies, including, without limitation, our ability to
successfully locate and consummate the contemplated strategic
transactions, the structure of any such transaction, timing of such
transaction, and the valuation of the businesses after completion
of any such transaction, if any, and other risks described in the
Company's prior press releases and in its filings with the
Securities and Exchange Commission (SEC) including its Annual
Report on Form 10-K and any subsequent public filings, and filings
made pursuant to Canadian securities legislation that are available
on www.sedar.com, including under the heading "Risk Factors" in the
Company's Canadian Prospectus.
Logiq undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by law. New
factors emerge from time to time, and it is not possible for Logiq
to predict all of them, or assess the impact of each such factor or
the extent to which any factor, or combination of factors, may
cause results to differ materially from those contained in any
forward-looking statement. Any forward-looking statements contained
in this press release are expressly qualified in their entirety by
this cautionary statement.
Company Contact
Brent Suen, President
Logiq, Inc.
Email contact
Media & Investor Contact
Ronald Both or Justin Lumley
CMA Investor & Media Relations
Tel (949) 432-7566
Email
contact
LOGIQ INC.
Consolidated Balance Sheets
|
|
September 30 |
|
|
December 31 |
|
|
|
2021 |
|
|
2020 |
|
|
|
(Unaudited) |
|
|
(Audited) |
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Intangible assets, net |
|
|
15,814,398 |
|
|
|
11,736,540 |
|
Property and equipment, net |
|
|
167,700 |
|
|
|
178,561 |
|
Goodwill |
|
|
5,577,926 |
|
|
|
5,078,090 |
|
Total non-current assets |
|
|
21,560,024 |
|
|
|
16,993,191 |
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Amount due from associate |
|
|
6,952,700 |
|
|
|
5,673,700 |
|
Accounts receivable |
|
|
3,148,244 |
|
|
|
2,618,494 |
|
Right to use assets - operating lease |
|
|
91,571 |
|
|
|
364,234 |
|
Prepayment, deposit and other receivables |
|
|
969,769 |
|
|
|
206,443 |
|
Financial assets held for resale |
|
|
681 |
|
|
|
594,263 |
|
Restricted cash |
|
|
21,682 |
|
|
|
10,889 |
|
Cash and cash equivalents |
|
|
5,340,480 |
|
|
|
3,478,889 |
|
Total current assets |
|
|
16,525,127 |
|
|
|
12,946,912 |
|
Total assets |
|
$ |
38,085,151 |
|
|
$ |
29,940,103 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDER'S EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
2,181,496 |
|
|
|
1,009,204 |
|
Accruals and other payables |
|
|
1,438,993 |
|
|
|
1,110,732 |
|
Deferred revenue |
|
|
14,198 |
|
|
|
46,857 |
|
Lease liability - operating lease |
|
|
91,571 |
|
|
|
364,234 |
|
Convertible promissory notes |
|
|
- |
|
|
|
2,911,000 |
|
Amount due to director |
|
|
- |
|
|
|
77,500 |
|
Total current liabilities |
|
|
3,726,258 |
|
|
|
5,519,527 |
|
|
|
|
|
|
|
|
|
|
Non-Current Liabilities |
|
|
|
|
|
|
|
|
Other loan |
|
|
10,000 |
|
|
|
10,000 |
|
Notes payable |
|
|
- |
|
|
|
507,068 |
|
Total non-current liabilities |
|
|
10,000 |
|
|
|
517,068 |
|
Total liabilities |
|
$ |
3,736,258 |
|
|
$ |
6,036,595 |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value, 250,000,000 shares authorized,
26,244,715 and 15,557,439 shares issued and outstanding as of
September 30, 2021 and December 31, 2020, respectively* |
|
|
2,624 |
|
|
|
1,556 |
|
Additional paid-in capital |
|
|
82,439,706 |
|
|
|
66,739,895 |
|
Capital reserves |
|
|
28,860,684 |
|
|
|
19,285,383 |
|
Accumulated deficit brought forward |
|
|
(76,954,121 |
) |
|
|
(62,123,326 |
) |
Total stockholder's equity |
|
|
34,348,893 |
|
|
|
23,903,508 |
|
Total liabilities and stockholders'
equity |
|
$ |
38,085,151 |
|
|
$ |
29,940,103 |
|
* |
|
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 Statement of Operations
|
|
For the three months ended
September 30, |
|
|
For the nine months ended
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Revenue |
|
$ |
7,826,249 |
|
|
$ |
7,030,305 |
|
|
$ |
24,210,548 |
|
|
$ |
31,326,759 |
|
Cost of Service |
|
|
5,520,862 |
|
|
|
5,919,848 |
|
|
|
17,230,056 |
|
|
|
26,351,514 |
|
Gross Profit |
|
|
2,305,387 |
|
|
|
1,110,457 |
|
|
|
6,980,492 |
|
|
|
4,975,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,030,932 |
|
|
|
455,424 |
|
|
|
2,751,208 |
|
|
|
1,354,674 |
|
General and administrative |
|
|
5,159,813 |
|
|
|
1,968,763 |
|
|
|
14,296,952 |
|
|
|
6,346,531 |
|
Sales and marketing |
|
|
477,226 |
|
|
|
544,970 |
|
|
|
1,198,479 |
|
|
|
697,190 |
|
Research and development |
|
|
1,447,567 |
|
|
|
1,018,389 |
|
|
|
4,010,239 |
|
|
|
3,681,162 |
|
Total Operating Expenses |
|
|
8,115,538 |
|
|
|
3,987,546 |
|
|
|
22,256,878 |
|
|
|
12,079,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from Operations |
|
|
(5,810,151 |
) |
|
|
(2,877,089 |
) |
|
|
(15,276,386 |
) |
|
|
(7,104,312 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (Expenses)/Income, net |
|
|
36,740 |
|
|
|
(1,460 |
) |
|
|
456,032 |
|
|
|
(262,876 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) before income tax |
|
|
(5,773,411 |
) |
|
|
(2,878,549 |
) |
|
|
(14,820,354 |
) |
|
|
(7,367,188 |
) |
Income tax (Corporate tax) |
|
|
- |
|
|
|
- |
|
|
|
(10,441 |
) |
|
|
- |
|
Net (Loss) |
|
$ |
(5,773,411 |
) |
|
$ |
(2,878,549 |
) |
|
$ |
(14,830,795 |
) |
|
$ |
(7,367,188 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) profit per common share - basic and fully
diluted: |
|
|
(0.2471 |
) |
|
|
(0.2257 |
) |
|
|
(0.7623 |
) |
|
|
(0.6037 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of basic and fully diluted
common shares outstanding* |
|
|
23,365,486 |
|
|
|
12,753,230 |
|
|
|
19,455,335 |
|
|
|
12,203,769 |
|
* |
|
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. |
Logiq (PK) (USOTC:LGIQ)
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