/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TSX VENTURE EXCHANGE SYMBOL - UI
HIGHLIGHTS
- Closing of a private placement of an aggregate amount of
$1,000,000 on December 5, 2013;
- Collaboration with APCHQ, the Provincial Home Builders'
Association of Quebec, on the ("My
Dream Home") contest, having added more than 80 new home builder
customers and increased visibility for AVU3D® amongst
new home builders in Quebec;
- Finalization of the technological developments in anticipation
of February 11, 2014 launch of:
-
- the new www.avu3d.com real estate portal;
- the new iOS, Android and web versions of the AVU3D®
application;
- an online system enabling the centralization of
orders;
- the rebranding of AVU3D® and its derived
products.
MONTREAL,
Feb. 25, 2014 /CNW Telbec/ -
Urbanimmersive Technologies Inc. ("Urbanimmersive Technologies"),
today presented its unaudited consolidated financial results,
including those of Urbanimmersive Inc. ("Urbanimmersive" and,
collectively with Urbanimmersive Technologies, the "Corporation"),
its wholly owned subsidiary, for the three-month period ended
December 31, 2013.
"We understand that it is not easy to visualize
the progress of the Corporation through the financial results for
the last quarter. However, we're confident that we have the
right long term strategy to create value for our
shareholders. By leveraging our AVU3D® suite of
products and services for the real estate market, we are building
the brand awareness. The launch of our new real estate portal
www.avu3d.com on February
11th, 2014 clearly demonstrates the progress of
the Corporation in its market and now provides a greater visibility
of our brand to our customers, consumers and advertisers. We are
already feeling the effects on demand and ultimately, these will
have an impact on our revenues." said Ghislain Lemire, President and CEO of the
Corporation.
As a result of the agreement signed with APCHQ
during the year 2013, the number of customers of the Corporation in
the new home construction market has experienced significant
growth. Indeed, as part of the "My Dream Home" contest, APCHQ
offered all new home builders entered in the contest an
AVU3D® immersive visit for one of their model home. This
initiative has enabled the Corporation to acquire more than 80 new
customers who have adopted the AVU3D® application for
their marketing, in addition to benefiting from excellent
visibility. These new customers of the Corporation represent a
potential of recurring revenue in the medium and long terms.
The first quarter of 2013-2014 was an
opportunity for the Corporation to focus its efforts on finalizing
technological developments of its AVU3D® technology
initiated during the previous financial year. These include: the
development of an online central order management system for all
AVU3D® products and services and the development of the
new www.avu3d.com real estate portal incorporating all
AVU3D® immersive visits as well as new iOS, Android and
web versions of the AVU3D® application. In anticipation
of the February 11, 2014 launch of
these new products and technological developments, the Corporation
has also completed the rebranding of the AVU3D®
application. With a new logo and advertising slogan customized to
the real estate market, the Corporation intends to consolidate the
AVU3D® visual identity and reinforce its marketing
initiatives targeting this market.
The financial results for the first quarter
reflect the adoption objectives for the AVU3D®
application in the real estate market. The Corporation is gradually
implementing strategic elements that will enable its continued
growth in the brokerage and new home construction markets. As such,
during the first quarter, the Corporation continued marketing its
immersive AVU3D® products with an entirely "risk-free"
sales model in the real estate brokerage market. This sales model,
which the Corporation intends to revise in the second quarter
2013-2014, allowed realtors to use AVU3D® immersive
products to market their properties for sale and to pay for the
AVU3D® immersive visits only if there is a sale. As the
sale of a property may take several months, income recognition of
these revenues is spread over several quarters. Customers of the
Corporation were voluntarily not exposed to the pay functionality
of the AVU3D® immersive platform as these features were
further developed during this quarter. The Corporation also
continued to reduce production of 3D visual content without
immersive technology because of its low potential for recurring
revenue and reduced profit margins.
SELECTED FINANCIAL INFORMATION
| |
December 31,
2013 |
December 31,
2012 |
| |
$ |
$ |
| Revenue |
153,604 |
336,643 |
| Cost of sales |
194,088 |
182,010 |
| Gross profit (loss) |
(40,484) |
154,633 |
| Operating expenses |
450,096 |
370,474 |
| Other expenses |
6,664 |
1,288,361 |
| Net loss and comprehensive loss |
(497,244) |
(1,504,202) |
OPERATING RESULTS
The Corporation's revenues have decreased from
$336,643 to $153,604, a decrease of $183,039 or 54.3%. This decrease is mainly due to
two contracts signed, during the three month period ended
December 31, 2012, with different
channel partners specialized in children online gaming and
industrial sectors, for 3D products for a total amount of
$102,000 and the sale of licences for
a total amount of $58,000. These
licenses allow the non-exclusive use of our AVU3D® technology and
this independently. During the period, the Corporation completed
237 immersive tours. At December 31,
2013, and since the beginning of the implementation of the
commercialization of immersive visits in April 2013, the Corporation completed a total of
953 immersive visits. Of this total, 93 immersive visits were
withdrawn and 123 immersive visits led to the sale of the property.
According to the business model of the Corporation, the revenue is
recorded only when services are rendered which is when the property
is sold. At December 31, 2013, the
Corporation has a total of 737 active immersive visits on the
market for which there is potential revenue.
The Corporation recorded a gross loss of
($40,484) or (26.4%) compared to a
gross profit of $154,633 or 45.9% for
the three month period ended December 31,
2012. This decrease in gross margin is due to a decrease in
revenue described above and to production costs of
AVU3D® immersive visits that the Corporation had to bear
while revenue recognition will only take place if there is a sale
of the property. These production costs are approximately
$40,000.
Operating expenses totalled $450,096 compared to $370,474 for the same period of 2012, an increase
of $79,622 or 21.5% due to an
increase in selling expenses of $27,602 and to an increase in Administrative
expenses of $53,826.
Other expenses totalled $6,664 compared to $1,288,361 for the same period of 2012, a
decrease of $1,281,697. This decrease
is due to the recognition, in 2012, of a stock listing exchange
expense of $1,181,417 and a loss on
amendment of a convertible debenture of $99,187. These elements are directly related to
the completion of the Reverse Takeover on October 4, 2012.
LIQUIDITY, CAPITAL RESOURCES AND SOURCES OF
FINANCING
The Corporation has prepared a budget for 2014
using assumptions that management considers reasonable. Achieving
budgeted results depends mainly on the increase of sales,
compliance with the gross operating margin forecast and control of
general and administrative expenses. Management believes that
current cash will not cover the activities for the next twelve
months and not allow the continuation of the commercial offensive
currently undertaken by the Corporation. In order to support the
level of investment required, the Corporation is considering
various options to finance its activities. There is no assurance
that these measures will be successful.
ABOUT URBANIMMERSIVE
Headquartered in Laval, Quebec, the Corporation is a digital
media corporation engaged in providing interactive advertising
solutions for the real estate industry. The Corporation develops
and commercialises its AVU3D® suite of products and web
services enabling 3D real estate advertising.
The AVU3D® suite of web products and
services includes the AVU3D® application that allows to
produce and publish, on web and mobile platforms, immersive 3D
environments of real and future properties using photographs or
digital images. The Corporation developed the www.avu3d.com site, a
portal that allows Internet users to search and view properties for
sale or for rent in 3D and find decoration and renovation ideas.
This site also provides Internet users the ability to have a direct
access to real estate agent contact information using the
AVU3D® application in their marketing.
The AVU3D® suite of web products and
services is also a complete and innovative suite of marketing and
web service solutions for real estate customers such as visibility
opportunities on the www.avu3d.com home page and on web page search
results, lead generation solutions, real time alerts, live chat
services, live visual user interactions and online editing
applications enabling insertion of graphic and text information
into the AVU3D® environments. AVU3D® Ads
platform is an application enabling advertisers to capture Internet
users' attention when looking for a property for sale or rent, and
this in various locations within the AVU3D® environment.
All these marketing solutions are accessible via an online central
order management and appointment system enabling photographers and
3D artists to have, among others, a direct link with real estate
agents and home builders to schedule and produce their
AVU3D® visual content. The Corporation also offers
visual content production services to its customers.
The target audience and customers of the
Corporation include realtors in the residential and commercial
sectors, builders of new homes, rental professionals, architects
and advertisers such as suppliers of services related to real
estate, mortgage lenders and insurance and consumer products
companies.
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTS
Certain statements made in this press release
that are not historical facts are forward-looking statements and
are subject to important risks, uncertainties and assumptions. The
results or events predicted in these forward-looking statements may
differ materially from actual results or events. As a result,
readers are cautioned not to place undue reliance on these
forward-looking statements. For additional information with respect
to certain of these and other assumptions and risk factors, please
refer to the Corporation's MD&A dated February 25, 2014 and filed with the Canadian
securities commissions. The forward-looking statements contained in
this press release represent our expectations as of the date
hereof. We disclaim any intention and assume no obligation to
update or revise any forward-looking statements.
*
* *
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United States or
to any U.S. Persons. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended, or the securities laws of any state of the United States of America and may not be
offered or sold within the United States
of America or its territories or possessions unless pursuant
to an exception therefrom.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Urbanimmersive Technologies
Image with caption: "Urbanimmersive Technologies Inc. -
http://www.urbanimmersive.com/ (CNW Group/Urbanimmersive
Technologies)". Image available at:
http://photos.newswire.ca/images/download/20140225_C7321_PHOTO_EN_37141.jpg