MONTREAL, QUEBEC--(Marketwired - April 30, 2014) - Peak Positioning Technologies Inc. ("Peak") (TSX VENTURE:PKK) today announced its financial results and reviewed highlights for the year ended December 31, 2013.
- Net revenues from royalties and consulting of $300,283 derived from Chinese market.
- R&D expenditures, net of tax credits, of $467,221.
- Net loss of $830,800 for the year.
- Signing of memorandum of understanding and beginning of negotiations to acquire LongKey Hong Kong ("LongKey")
- $738,500 of new financing in combination of debt and equity
- Release of client-side beta version of AiNi mobile cloud on Chinese app store
2013 proved to be a challenging year for Peak. The Company's attention was focused on 2 main elements throughout the year; 1) completing the full commercial release of its AiNi mobile cloud platform following the release of the limited client-side beta version on the HiAPK Chinese app store, and; 2) moving the negotiations and the process of the acquisition of LongKey forward to close the acquisition by the end of the year.
The client-side beta release of AiNi revealed certain issues on the server-side of the platform, which Peak spent the latter part of 2013 addressing. The Company has recently concluded that the best approach to have a more robust platform is to redesign the server-side of the platform. Although this will delay the full commercial release of the platform in the short run, Peak feels that ensuring the platform is robust and scalable enough to handle virtually any number of mobile subscribers will benefit the Company in the long run.
The discussions for the acquisition of LongKey were particularly challenging because the transaction needs to satisfy not only LongKey and Peak, but also certain regulatory stakeholders both in China and in Canada. Although Peak and LongKey were unable to finalize their negotiations by the end of 2013 to reach an agreement that was satisfactory to all parties, the Company feels that enough progress was made and is optimistic that a satisfactory agreement might be reached in the near future.
Outlook for 2014:
"The theme for Peak in 2014 is diversification", said Johnson Joseph, president and CEO of Peak. "Yes, China and our partnership with LongKey will continue to be the main drivers of our business operations for the foreseeable future, but we plan to put more emphasis in 2014 on diversifying our activities through internal projects and strategic acquisitions to mitigate our financial and geographical risk and create more opportunities for the Company", he went on to say. Part of this more diversified approach is evidence by the Company's recent announcement of its planned acquisition of Quickable.com.
Fiscal 2013 financial results:
The Company generated $400,379 in gross royalty revenues for the year ended December 31, 2013, which translated to net revenue from royalties of $266,013 after amortization of other assets, to which were added consulting revenues of $34,270 for total net revenues of $300,283. In the prior year period, net revenues from royalties were $163,884. Expenses for fiscal 2013 amounted to $1,150,107, compared to $2,629,246 in the prior year. 2013 was another year of investment and foundation building for the Company's operations in China. The net loss for the year was $830,800 compared to $2,465,362 in 2012. Full details of the Company's 2013 financial results can be found in the Audited Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) for the years ended December 31, 2013 and 2012, which are available at www.sedar.com.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. ("Peak"), (TSX VENTURE:PKK), is a public company whose wholly-owned subsidiary, Peak Positioning Corporation provides Web development services and develops mobile software platforms destined to mobile network operators worldwide. As a public company, Peak aims to deliver value to its shareholders by assembling a portfolio of high-growth potential projects and companies in mobile, mobile e-Commerce, and Web development in North America and China. For more information: http://www.peakpositioning.com
Forward-Looking Statements / Information
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