AirIQ Inc.
TSX VENTURE : IQ

AirIQ Inc.

March 02, 2011 09:00 ET

AirIQ Announces Q4 2010 Interim Results

TORONTO, ONTARIO--(Marketwire - March 2, 2011) - AirIQ Inc. ("AirIQ" or "the Company") (TSX VENTURE:IQ), a supplier of wireless location-based services, today announced its financial results for the fourth quarter ended December 31, 2010.

Business Highlights for the Quarter:

  1. Continued its efforts promoting the vehicle rental program;
  2. Demonstrated its personal safety device – SafetyIQ™ - with several customers, and signed a reseller agreement with one manufacturer for a personal safety device; and
  3. Entered into a credit agreement on October 7, 2010 with Eventi Credit Inc. and Mosaic Capital Partners LP for a loan of $500 thousand.

Subsequent to the quarter end, the Company:

  1. Changed its financial year end from December 31st to March 31st, commencing March 31, 2011;
  2. Consolidated its shares on the basis of one post-consolidation share for every 40 pre-consolidation shares; and
  3. Filed a short-form prospectus on February 28, 2011 offering 4,353,687 Rights to subscribe for up to 8,707,374 common shares of the Company at a price of $0.15 per common share.

"These actions have put the Company into a position where it can now concentrate on expanding its current installed base with more features and functions along with introducing two new product lines. The support of our major shareholders in entering into a backstop agreement (whereby they will subscribe for any rights not taken up by current shareholders) shows their support of our strategic direction, and is greatly appreciated", said Don Gibbs, President and Chief Executive Officer of AirIQ.

Revenue for the quarter was $649 thousand compared to $1,062 thousand for the fourth quarter of 2009, a decrease of $413 thousand. The decrease is primarily as a result of the expiration of customer hardware contracts that had been deferred from sales in prior periods.

Gross profit for the fourth quarter 2010 was $406 thousand compared to $487 thousand in the comparable fourth quarter of 2009. Gross profit margins increased by nearly 17% and by approximately 11% for the three months and twelve months ended December 31, 2010 respectively, when compared to the same periods the previous year.

Sales and marketing, engineering and research and general and administrative expenses totalled $648 for the three months ended December 31, 2010 compared to $1,252, for the three months ended December 31, 2009. Expense reductions were achieved in the following areas; a) consulting fees of approximately $111 due to the reduction of consulting services b) wages and related expense reductions of approximately $74 due to the Company's restructuring initiatives completed in 2009, c) other cost reductions of approximately $419 related to reduced directors' fees, legal fees, travel, rent and other costs.

Net loss from continuing operations for the fourth quarter of 2010 was $325 thousand as compared to a loss of $1,495 thousand in the fourth quarter of 2009.

The Company's unaudited interim consolidated financial statements as at and for the three months and twelve months ended December 31, 2010, including notes thereto, and the accompanying Management's Discussion and Analysis were filed with the Canadian securities regulatory authorities on March 1, 2011, and is 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 location based 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