Urbanimmersive Technologies Inc.
TSX VENTURE : UI

Urbanimmersive Technologies Inc.

August 28, 2015 16:05 ET

Urbanimmersive Technologies Inc. Presents its Consolidated Financial Results for the Third Quarter of 2014-2015

MONTREAL, QUEBEC--(Marketwired - Aug. 28, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Urbanimmersive Technologies Inc. (TSX VENTURE:UI) ("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 third quarter ended June 30, 2015.

HIGHLIGHTS :

  • Signature of a two year agreement with one of the largest Canadian real estate brokerage websites RE/MAX Québec, for the use of Urbanimmersive's blog platform;

  • Signature of a Memorandum of Understanding with Centris for the establishment of a 5 year strategic partnership agreement to commercialize Urbanimmersive's real estate visual content provider marketplace;

  • 51% reduction of the operating expenses and a 48% reduction of the net loss when compared to the corresponding period of the previous year;

  • Financing of $200,000 through a private placement of common shares;

During the third quarter of fiscal year 2015, the Corporation has continued its reorganization efforts in order to focus on the development and commercialization of its two new web platforms; being the online marketplace linking real estate agents and visual content providers as well as the content marketing production and distribution platform (blog).

Although the two new web platforms emphasize the use of its AVU3D immersive technology, their monetization models are not solely focused on selling immersive tours. The monetization of the online marketplace is based on transaction fees charged on each service ordered, while the monetization of the content marketing platform is based on advertising and service revenues. The commercialization of these new platforms is made directly with real estate organizations and business partners as opposed to the sale of immersive tours which required face to face meetings with real estate agents.

Consequently, the new web platforms allow the Corporation to operate with less professional resources previously dedicated to the production and promotion of AVU3D immersive tours. This partly explains the reduction in operating expenses over the same quarter of the previous fiscal year.

Although revenues for the third quarter remained stable compared to the corresponding quarter of the previous fiscal year, it is already possible to see a change in the distribution of revenue sources. Revenues from the production of immersive tours have decreased 76% which was offset by new revenues coming from the previously announced agreements with the APCHQ and Re/Max Quebec for the blog platform. These new revenues consist mainly of content production services to supply client blogs and advertising revenues.

During the third quarter of fiscal year 2015, the Corporation completed a $200,000 financing through a private placement of common shares. Two Directors of the Corporation participated in the placement. This funding has allowed the Corporation to continue its development activities and commercialization of new web platforms.

The Corporation announced on August 12 the signing of a Memorandum of Understanding with Centris for the establishment of a 5 year strategic partnership agreement to commercialize Urbanimmersive's real estate visual content provider marketplace. Centris® is the organization that operates the real estate portal, Centris.ca, and that provides technology resources to more than 14,000 real estate agents. Management believes that the commercialization of the marketplace by the largest Quebec real estate organization and its expertise in the industry will accelerate the generation of new revenue streams for Urbanimmersive. However, it is too early to estimate the value of the agreement and there is no guarantee that the income generated by the marketplace will have a significant impact on the business of the Corporation in the short term. The success of the Urbanimmersive marketplace is reliant upon the adoption of the platform by the network of real estate agents and visual content providers.

SELECTED FINANCIAL INFORMATION

Three month
period
ended
June 30, 2015
Three month
period
ended
June 30, 2014
Nine month
period
ended
June 30, 2015
Nine month
period
ended
June 30, 2014
$ $ $ $
Revenue 168,963 155,339 740,066 510,912
Cost of sales 161,105 154,343 476,570 554,144
Gross profit (loss) 7,858 996 263,496 (43,232 )
Operating expenses 185,623 367,436 632,623 1,303,509
Other expenses 13,710 6,557 42,456 22,439
Net loss and comprehensive loss (191,475 ) (372,997 ) (411,583 ) (1,369,180 )
Basic and diluted net loss per common share (0,01 ) (0.02 ) (0,02 ) (0.08 )

The data above is a summary. For further information, please consult the Corporation's interim consolidated financial statement as well as the Management Report for the quarter ended June 30, 2015 at www.sedar.com

The Corporation also announces the resignation of Mr. Charles Drouin as a member of its Board of Directors. Management would like to thank Mr. Drouin for his contributions to the Board of Directors of Urbanimmersive.

ABOUT URBANIMMERSIVE

Based in Laval, Quebec, Canada, Urbanimmersive is a digital media corporation dedicated to the online real estate market. The Corporation provides marketing content production services and innovative technology solutions specifically designed to increase productivity and business revenues of its customers. The Corporation's customers are primarily home builders, promoters, real estate brokers, brokerage agencies and real estate portal operators.

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 August 28th, 2015 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.

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