TORONTO, Aug. 24, 2023 (GLOBE NEWSWIRE) — ARHT Media Inc. ("ARHT" or "the Company") (TSXV: ART), (OTCQB: ARHTF) the global leader in the development, production and distribution of high-quality, low latency hologram and digital content, today announced its financial results for the second quarter ended June 30, 2023.
Q2 2023 Financial Update
- Revenue for Q2 2023 was $2.1M compared to $2.0M for Q2 2022, a 3% increase. The increase reflects the company’s sales focus transition to fixed installations versus events, with the corresponding longer sales cycle, which is expected to positively impact the Company financials in the remaining quarters of 2023 and beyond.
- Q2 2023 Net loss of $2.1M vs $1.8M in Q2 2022 primarily due to increased headcount as the Company continues to invest for growth.
- LTM Revenue was $7.5M, an increase of 29% when compared to the prior twelve months reflecting continued positive momentum in the growth of the business.
- Cash as at June 30, 2023 was $0.5M as compared to $1.8M at March 31, 2023.
Q2 2023 Business Updates
- In April 2023, the Company signed a $500,000 contract with a leading global Fortune 50 client for the delivery of services and events throughout the month of June for several locations worldwide. Events included presentations by senior executives including the CEO who posted on social media on the ARHT Capsule display.
- In May 2023, The International Institute for Management Development (IMD) installed ARHT live hologram technology at its campuses in Lausanne, Switzerland, and Singapore to expand the scope and reach of its executive education programs while minimizing climate impact. IMD is considered a world leader in executive education.
- In May 2023, the Company partnered with Paramount+ to beam stars of the hit original series STAR TREK: STRANGE NEW WORLDS as live holograms using the company’s ARHT CAPSULE displays for an exclusive panel at MCM’s London Comic Con. Actors in both Los Angeles and New York appeared as a panel onstage in London and took questions from an in-person moderator as well as the live audience.
- In June 2023, EY CIO Jeff Wong, authored a white paper promoting the benefits of ARHT’s hologram technology to help reduce costs and make executives more efficient. In a LinkedIn post he was quoted “Beam In … Beam Out! Hologram technology is bringing the world closer together.”
- In June 2023, the Company entered an accounts receivable facility with Sallyport Commercial Finance ("Sallyport") for up to $2 million. Under the terms of the agreement signed with Sallyport, the Company can draw down up to $2 million based on its accounts receivable and inventory balances. This line of credit comes with a one-year term and an annual interest rate of approximately 14%.
- In June 2023, the Company partnered with Spain’s Newtonlab Space to be the exclusive global distributor of the multi panel holographic display Show Window MaxTM. This new Display features a 3-wide holographic display and measures about 330 cm (10 feet and 10 inches) in width and 220 cm (7 feet and 3 inches) in height. This technology is ideal for retail, entertainment, museums, trade shows, experience centers, airports or anywhere large crowds gather.
- In June 2023, the Company signed and delivered its first CAPSULE subscription agreement with a leading global retailer. The client operates over 5,000 retail stores globally and held its first hologram event less than 2 weeks after the agreement was signed.
- In June 2023, the Company revealed its highly anticipated new IOS and client interface which does not require any in-person technicians to conduct live two-way holographic streaming. Called “One Click Connect”, it is as simple as scheduling a Zoom call.
- In June 2023, the Company established a Network Operating Centre for its hologram network to support its customers with 24-7 support in worldwide time zones. This is a first in the hologram industry.
- In June 2023, the Company did not renew its prior revenue share agreement with WeWork and elected to reduce the number of WeWork locations to major centers in New York, Los Angeles and Paris.
Q2 2023 Subsequent Events
- The Company completed extensive testing of its CAPSULE hologram display and has received CE, ULI, CSA and CAUK certifications to support its continued deployment of permanent hologram displays internationally. Certification for 22 jurisdictions around the world will be completed in Q3 2023.
- The Company closed a private placement of secured subordinated debentures in an aggregate of approximately $2.03 million principal amount. The Debentures mature on August 3, 2025 and carry an annual interest rate of 15%, accrued and payable semi-annually, payable in cash or shares at the option of the Company.
- The Company trialed an AI powered “Virtual Concierge” at four London area WeWork locations for a six-week duration. Using voice to text AI technology, the Virtual Concierge could answer approximately 200 commonly asked questions of the WeWork Community Desk Members. This technology has broad reaching applications in retail, hospitality, condominiums, sports venues and any place where the general public needs information.
- The Board of Directors accepted Director David Wetherald’s resignation from the Board for personal reasons. The Board would like to thank Mr. Wetherald for his valuable contribution as a Director and Committee Chair over the past 5 years.
“Q2 2023 was a pivotal quarter for ARHT Media as numerous enterprise organizations are testing ARHT’s permanent displays in an effort to save money, reduce travel and attract audiences. In addition, we introduced several industries – leading technology advances including (1) One Click Connect, which is as easy as scheduling a Zoom call and does not require onsite technicians for holographic live streaming and (2) our new CMS, RMS, IOS and user interface which allows us to have the best holographic display to scale our business. While revenue in Q2 was below our expectations, we believe we will achieve strong revenue growth in the second half of 2023 as all these key pieces fall into place with new and existing customers,” stated Larry O’Reilly, CEO of ARHT Media. “As our product offerings continue to generate interest from some of the most recognizable global brands, management has taken proactive steps to reduce operating costs in order to expedite our profitability goals.”
ARHT is a pioneer and the global leader in live hologram technology. Thanks to its patented end-to-end technology, executives, medical experts, educators, entertainers, and thought leaders can travel at the speed of light to any destination.
ARHT was founded in 2014 and is publicly traded on the TSX Venture Exchange. ARHT has offices in North America, Europe and Asia and operates from its own studios in locations from Toronto to Singapore, as well as a large network of partner studios in every region.
Connect with ARHT:
ARHT trades under the symbol "ART" on the TSX Venture Exchange.
Chief Financial Officer
+1 (416)-782-8042 (head office)
This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the intention to exercise convertible securities of the Company; disclosure related to the Company’s sales funnel; the Company’s technology; the potential uses for the Company’s technology; the future planned events using the Company’s technology; the future success of the Company; the ability of the Company to monetize the ARHT Media technology; the development of the Company’s technology; and interest from parties in ARHT’s products. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic and competitive uncertainties; regulatory risks; risks inherent in technology operations; and other risks of the technology industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NEITHER THE 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.