SOURCE: 3 Tier Logic

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April 22, 2016 13:33 ET

3TL Technologies Corp. Announces 2015 Annual and Fourth Quarter Financial Results and Provides Business Update

VANCOUVER, BC--(Marketwired - April 22, 2016) - 3TL Technologies Corp. (TSX VENTURE: TTM) (OTCQB: TTMZF) (the "Company" or "3TL") announced its financial results for the year and fourth quarter ended December 31, 2015. The financial statements and management discussion and analysis for the year ended December 31, 2015 are available on SEDAR.

OVERVIEW AND UPDATE

In 2014, the Company shifted its business model to Software-as-a-Service (SaaS) from custom development of digital advertising solutions with the launch of Platform3. During 2015, 3TL improved Platform3 by adding functional modules and by enhancing security and scalability. 

In the second quarter of 2015, 3TL implemented a sales and marketing program designed to engage and sell shopper marketing solutions to consumer packaged goods ("CPG") companies targeting major brands based in the U.S. As part of this initiative, the Company implemented a program to partner with advertising and promotional agencies that service CPG companies. The goal of the sales program is to generate immediate sales to major CPG brands that have large annual budgets for shopper marketing promotions.

In the second half of 2015, 3TL signed licence agreements, directly and through advertising agencies, for a number of leading brands, validating its value proposition. With these reference accounts, the Company's sales team was able to establish a sales pipeline of leading U.S. based CPG companies, both directly and through advertising agencies.

The Company generated $319,000 in revenues in 2015 after launching an improved version of Platform3. Year to date, 3TL has signed license agreements for 14 leading brands that will generate more than $250,000 in revenues in 2016. With over 200 opportunities in its sales pipeline the Company expects signed license agreements and revenues to grow significantly in 2016.

Platformwas built as a SaaS platform to enable brands and advertising agencies to build, test, and launch, powerful digital marketing campaigns easily and quickly with improved ROI. It was designed to provide 3TL's customers with the strategic capabilities needed for a total shopper marketing solution, including modules for:

- optical character recognition (receipt scanning);

- consumer-to-consumer content sharing;

- rewards and loyalty;

- data mining; and,

- customer relationship management.

The foregoing functional modules are all accessed from the Cloud using a common user interface with a shared consumer database. 

Platformwas developed by 3TL's team from the ground up to seamlessly integrate with the existing technology infrastructure of major consumer brands and ad agencies. The investment we made in building Platform3 as a scalable solution for large organizations is paying off as leading brands and advertising agencies who use our solution come back for repeat business and consider longer term license agreements. 

"In 2015 we made investments in building a better product and in establishing relationships that have positioned 3TL for strong growth in 2016," said Rob Craig, CEO of 3TL Technologies Corp. "We are off to a great start in 2016, and look forward to reporting on our progress."

RESULTS OF OPERATIONS

Revenue for the year ended December 31, 2015 increased to $319,163, compared to $310,250 for the year ended December 31, 2014. As described above, 3TL launched an improved version of Platform3 in mid-2015 that has positioned the Company for growth in 2016. Year to date, 3TL has signed licence agreements for over $250,000 in revenues for 2016. Revenues for SaaS licence agreements are recognized over the term of the agreements. All the license agreements signed to date in 2016 are for services to be delivered in 2016. Based on feedback from CPG companies and advertising agencies, 3TL expects to sign repeat business and longer term agreements with a number of customers and prospects in 2016, some which may extend into 2017.

Gross profit for the year ended December 31, 2015 decreased to $69,229, compared to $106,739 for the year ended December 31, 2014. Gross margin for the year ended December 31, 2015 was 21.7% compared to 34.4% for year ended December 31, 2014. Cost of sales includes the cost of servers to host Platform3 and customer service staff. The existing cost of sales can support increased revenues, such that gross margin and gross profit are expected to increase in future quarters due to growth in higher margin SaaS revenues from Platform3 and from economies of scale.

Total operating expenses increased to $2,956,248 for the year ended December 31, 2015 compared to $2,626,331 for the year ended December 31, 2014, partly due to costs related to being a public company listed on the TSXV.

Net and comprehensive loss for the year ended December 31, 2015 was $2,853,152 compared to $5,189,700 for the year ended December 31, 2014. This decrease was mainly due to the one-time loss of $1,503,845 on convertible debt conversion in October 2014, as well as expense of $1,040,913 related to listing on the TSXV completed in October 2014.

About 3TL Technologies Corp.

Platform3 is a Software as a Service (SaaS) consumer marketing platform. It enables Consumer Packaged Goods (CPG) companies and consumer brands to engage shoppers through their mobile device and influence their purchasing decisions. Platform3 encompasses proprietary consumer engagement strategies and technology modules including optical character recognition (purchase receipt scanning), digital promotions, purchase data mining, loyalty and rewards. CPG companies and major retail brands use Platform3 to influence and incentivize shoppers to interact with their brand and make purchases in-store and online. 

For more information, visit 3tltechcorp.com.

For additional information about the company please visit www.sedar.com. The TSX Venture Exchange Inc. has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release. Neither 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. This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors -- including the availability of funds and the results of financing efforts -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

Contact Information

  • For further information, please contact:
    3 TL Technologies Corp.
    Robert Craig
    Chief Executive Officer
    (604) 639-5441
    rcraig@3tierlogic.com