AirIQ Inc.
TSX VENTURE : IQ

AirIQ Inc.

September 28, 2011 16:30 ET

AirIQ Announces Q1 2011 Interim Results

Dismissal of Legal Claim

TORONTO, ONTARIO--(Marketwire - Sept. 28, 2011) - AirIQ Inc. ("AirIQ" or "the Company") (TSX VENTURE:IQ), a supplier of asset management services, today announced its financial results for the first quarter ended June 30, 2011.

"These are the Company's first financial statements prepared using International Financial Reporting Standards ("IFRS"), as opposed to the Company's previously prepared financial statements which were prepared in accordance with Canadian Generally Accepted Accounting Principles ("Canadian GAAP")," said Don Gibbs, President and Chief Executive Officer of AirIQ. "The statements disclose the impact of transition to IFRS on the Company's reported financial positions, financial performance and cash flows", continued Mr. Gibbs, "in accordance with IFRS and the International Accounting Standards Board ("IASB")."

Unless otherwise noted herein, all amounts are in thousands of Canadian dollars except share, per share and unit information.

Business Highlights for the Quarter:

During the period, the Company continued to focus on the key elements of its strategy to:

  1. Build revenues and manage costs to achieve sustained profitability and positive cash flow;
  2. Strengthen the balance sheet and achieve positive working capital;
  3. Economically resolve outstanding legal claims; and
  4. Continue to seek opportunities to form value creating strategic partnerships.

On April 12, 2011, the Company issued an aggregate of 8,707,374 common shares for $0.15 per share through a rights offering for gross proceeds of approximately $1,306. In addition, on May 31, 2011, the Company completed a private placement of 2,772,886 common shares at a price of $0.15 per share, for total consideration of $416.

Subsequent to the quarter end, on August 2, 2011, the Company repaid its outstanding loans to its lenders in the aggregate amount of $250, and is now free of all long term debt.

On August 16, 2011 the Company purchased the fleet assets of a Canadian technology company, which the Company now operates under the name "ResQ Fleet Services, a division of AirIQ Inc.". The purchase adds approximately 1,900 additional units to the Company's subscriber base and also provides the Company with a new software platform and increased sales capability.

In addition, on August 29, 2011 the Company was successful in obtaining an Order for Summary Judgement in respect of a claim filed against AirIQ in the District Court of Harris County, Texas, alleging damages as a result of the installation of a device in a vehicle owned by the plaintiff without their knowledge. Effective October 8, 2011, all claims against AirIQ in this matter will be dismissed with prejudice.

"The Company expects increased sales as a result of acquiring the ResQ Fleet Services software platform, as the system provides enhanced technical capabilities for both existing and new customers", stated Don Gibbs. "The acquisition, combined with the equity raises, debt repayment and legal claim dismissal are key steps towards the Company achieving its strategy as noted above", continued Mr. Gibbs, "and we will continue to focus on these key elements as the Company moves forward."

Financial Highlights

Revenues for the three months ended June 30, 2011, decreased 29% to $617 from $868 for the three months ended June 30, 2010. Approximately 78% of the total revenue for the quarter represents recurring revenue from the Company's airtime customers.

Overall, gross profit for the three months ended June 30, 2011, decreased 24% to $421 from $557 for the comparative three months ended June 30, 2010.

Sales and marketing, engineering and research and general and administrative expenses totalled $529 and $782 for the three months ended June 30, 2011 and three months ended June 30, 2010, respectively. Expense reductions were achieved in the following areas; a) wages and related expense reductions of approximately $87 due to the Company's restructuring initiatives and work sharing programs, b) consulting expense of approximately $87 primarily related to the restructuring initiatives, c) computer operating expense savings of approximately $31 due to the reduction of co-location expenses and other cost reductions of approximately $48 related to audit fees, director fees, legal fees and other costs.

The Company's net loss from continuing operations for the three months ended June 30, 2011 year was $166 as compared to a net loss of $361 for the three months ended June 30, 2010, a decrease of $195.

The Company's unaudited consolidated condensed interim financial statements as at and for the three months ended June 30, 2011, including notes thereto, and the accompanying Management's Discussion and Analysis were filed with the Canadian securities regulatory authorities on September 27, 2011, and are available on the Company's website (www.airiq.com) and on the System for Electronic Document Analysis and Retrieval website (www.sedar.com).

About AirIQ

AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's office is located in Pickering, Ontario, Canada. The Company offers a suite of asset management services that generate recurring revenues from each device deployed. AirIQ delivers services to two primary markets: Commercial Fleets and dealers that service Consumer segments. AirIQ provides vehicle owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company's website at www.airiq.com.

Forward-looking Statements

This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.

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.

Contact Information

  • AirIQ Inc.
    Donald Gibbs
    President and Chief Executive Officer
    (905) 831-6444, Ext. 4255
    dgibbs@airiq.com