Fiscal and Operational Changes reduce Q2 losses by 52% versus Q2 2019
Q3 Revenue on Track to More than Double Year over Year
Current Cash Position Is $1,700k versus $386k at the Beginning of Q2
Second Quarter and Post Quarter 2020 Highlights:
- Q2 revenues of $42k vs $566k YoY, decrease of 93%
- Q2 loss of $533k vs $1,113k YoY, decrease of 52%
- Company focus on Channel Reseller and Strategic Partnerships to accelerate revenue growth
- Company signs ALMO Pro AV as exclusive US Reseller – 32 major markets to have ARHT technology
- Highly anticipated HoloPod Display successfully tested with move to production units in Q3
- Initial activations of enhanced online presentation, Virtual Global Stage™ (VGS), universally praised
- Organizations forced to use technology to communicate with employees and clients positioning ARHT Media as an enhanced platform either online or in person holographically
- Q3 revenue on track to increase by over 100% year over year
- Company expects to be cashflow positive in Q4 2020
TORONTO, Aug. 27, 2020 (GLOBE NEWSWIRE) -- ARHT Media Inc. (“ARHT” or “the Company”) (TSXV:ART), the global leader in the development, production and distribution of high quality hologram content through its patented ARHT Engine software technology, today announced its second quarter results for the period ended June 30, 2020. For the three-month period ended June 30, 2020 ARHT reported revenue of $42,000 compared to $566,000 for the comparable period in 2019. The reduction in revenue is wholly attributed to the delay and/or cancellation of activations due to the COVID-19 pandemic. Management acted immediately to undertake a number of short-term liquidity and structural measures beginning in early March. These measures included, a combination of rent relief and reductions from landlords, employees being furloughed for various periods, discretionary spending cuts and delays in hiring new staff, combined with taking advantage of subsidies offered by various governments. The net result is that the Company’s operating loss in 2020 decreased by 52% versus 2019. With macro trends positioning ARHT well for both top line and bottom-line growth, combined with a series of announcements regarding new products and clients, ARHT’s valuation has increased 300% since the end of Q1 while trading volumes increase 1000% in July.
The break in activations and deliveries in Q2 provided an opportunity to develop programs to ensure the successful launch of a number of channel Reseller and Strategic Partnerships. New sales and technical training programs, marketing deliverables, online portals, supply chain systems, pricing programs and new products were all developed in Q2 and have been rolled out in Q3. This dual sales and delivery strategy have already resulted in an increase in business but more importantly it is expected to significantly accelerate revenue growth as we move into 2021.
COVID-19 has forced organizations to use technology to communicate with their employees, client’s and investors. While the numerous existing streaming services filled an initial void, the Company’s enterprise clients have been looking for an enhanced online mainstage experience, which we deliver through Virtual Global Stage™. The first few Virtual Global Stage™ activations have been described as looking much more like a professional television production (at a fraction of the cost) and a lot less like a typical streaming presentation, prompting unprecedented interest in ARHT Media.
Following months of discussions with clients in many verticals the final designs and prototype of the HoloPod were completed in Q2 and into Q3. The HoloPod is a permanent display specifically designed for interactive holographic communication in a corporate boardroom, meeting or training room, or in a university lecture hall. It is the most anticipated product we have brought to market. We have ordered our first five production units and expect to start deliveries in Q3 and Q4. HoloPod is powered by our ARHT Engine software that is enabled by subscription and bundled transmission fees over the life of the display, generating high-margin recurring revenue.
“COVID-19 is the best thing that could have happened to our business,” stated Larry O’Reilly, ARHT Media President and CEO. “We are firing on all cylinders as we move through Q3 with an expected doubling of revenue, new sales and distribution channels, new products releasing and a cash position that is 340% better than the end of Q1 – without any dilution. The entire, immensely talented, team at ARHT has been incredible through this transitionary period and we are coming out the other side positioned better than ever to capitalize on the potential of our software platform and services.”
About ARHT Media
ARHT Media's patented HoloPresence technology is a complete end-to-end solution that creates a sense of presence for audiences – as though the holographic presenter was actually live in the room. With no noticeable latency, ARHT Media makes two-way live communication with a 3D holographic presenter anywhere in the world possible. We can also playback pre-recorded content and 3D animations on our HoloPresence displays to deliver rich holographic experiences. Add to this our capability to stream the same content online on our premium Virtual Global StageTM.
Connect with ARHT Media
Twitter: http://www.twitter.com/ARHTmedia
Facebook: http://www.facebook.com/ARHTmediainc
LinkedIn: http://www.linkedin.com/company/arht-media-inc-
For more information, please visit www.arhtmedia.com or contact the investor relations group at info@arhtmedia.com.
ARHT Media trades under the symbol "ART" on the Toronto Venture Stock Exchange.
Press Contact
Salman Amin
ARHT Media
samin@arhtmedia.com
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, 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.
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