VANCOUVER, BC--(Marketwired - March 02, 2017) - HIT Technologies Inc. (TSX VENTURE: HIT) ("HIT" or the "Company"), which designs, develops, manufactures and distributes the world's most advanced adventure products for iPhone, today reported its second quarter (Q2 F2017) financial and operating results for the quarter and six months ended December 31, 2016, prepared in accordance with International Financial Reporting Standards (IFRS). All results are reported in Canadian dollars unless otherwise stated.

Selected Quarter and Annual Information

   Q2- Fiscal
 6 months to
December 31,
 6 months to
December 31,
Revenue  $239,015  $684,731  $452,052  $1,091,482
 % Increase over Prior Year -65%   -59%  
Gross Margin  40%  37%  37%  29%
 Gross Margin %        
Operating Expenses  $485,801  $1,057,448  $923,376  $2,086,869
(excluding non-cash and cost of sales)  -54%   -61%  
 % change over Prior Year        
Adjusted EBITDA (Loss)  $(408,416)  $(818,949)  $(784,832)  $(1.781,662)
 % change over Prior Year -50%   -56%  
Net (Loss)  $(0.01)  $(0.02)  $(0.01)  $0.05)
 Per share, Basic        
         December 31,
 June 30,
Cash and Cash Equivalents        $96,404  $368,018
Inventory        $440,721  $471,436
Net Working 
       $(39,695)  $328,939
Total Assets        $1,221,959  $1,663,854
Liabilities        $1,169,747  $861,156

"We are pleased to report that despite our reduced spend levels, and the resulting decrease in current period sales, we have managed to create our finest offering yet with the new HITCASE SHIELD," said Brooks Bergreen, Chairman and CEO of HITCASE. "With our tighter budget, we are laser focused on producing the best cases on the planet, and on aligning our go-to-market strategy to give us the best chance of success once our entire iPhone 7 line-up is ready for prime time. We did a limited production run for our new SHIELD in December 2017 to test the market and we've already had a great response from customers and media -- one reviewer hailing that at last we can have thin and attractive together with superior protection and waterproofness. We are proud of this new design and believe we are a standout in the market with SHIELD. In addition, we are very excited about our new HITCASE PRO-7 which is based on this same new design, and will be market-ready by next quarter."

Continued Mr. Bergreen, "With our iPhone 7 line-up coming on-line, we are looking forward to turning up our sales channels to position us for broader distribution in the coming fall and winter season. Importantly, we are executing on this vision against a backdrop of doing more with less by focusing where we have the best return on our investment to minimize our capital requirements."

Second Quarter Fiscal 2017 Financial and Operational Summary

  • In December 2016, the Company launched its new SHIELD case for the iPhone 7 following on from its iPhone 6 version launch in Q1 on a limited shipment basis. The SHIELD is a thin, aluminum waterproof case for the iPhone 6/6s/7 and iPhone 6plus/6splus/7 which extends the HITCASE brand into the everyday protective case market. The SHIELD's aluminum casing and unique HITCASE Shockseal provides shockproof and underwater protection to depths of 10 feet. SHIELD is thin, has a transparent back and comes in the colours of the iPhone, which is unique to the accessories market. Independent reviews of the SHIELD have been positive;
  • Generated sales of $239,015 in Q2 F2017, down 65% from $684,731 in Q2 Fiscal 2016. The decline was due to lower sales across all distribution channels and products as a result of reduced sales and marketing spend and limited production runs. A majority of sales for the quarter were via our direct online channels, which also contributed to higher gross margin percentages;
  • Gross margin of $95,136 in Q2 F2017 was down from $250,529 generated in Q2 of last year due to decreased sales. The gross margin percent increased to 40% compared to 37% last year;
  • During the quarter the Company reduced operating expenditures (excluding non-cash items and cost of sales) to $485,801, a 54% reduction from Q2 F2016. The Company continues to look for additional opportunities to realize further reductions while maintaining its ability to increase sales and distribution channels;
  • Reported an Adjusted EBITDA loss of $408,416 for Q2 F2017, a 50% reduction from $818,949 in Q2 F2016;
  • During the quarter, the Company completed private placements of secured convertible debentures and common shares for gross proceeds of $465,000;
  • Closed the quarter with a working capital deficiency $39,695 including cash and cash equivalents of $83,728 and inventory of $440,721 at December 31, 2016; and
  • Subsequent to the quarter end, the Company completed private placements of secured convertible debentures and Units for gross proceeds of $362,000.

Non-IFRS Measures
Adjusted EBITDA is a non-IFRS measure and management defines this metric as the loss and comprehensive loss under IFRS, adjusted by adding back interest, taxes, amortization, and other non-cash expenses. Please review the reconciliation of Adjusted EBITDA to net income (loss) in the Company's MD&A for the corresponding period.

This press release should be read in conjunction with our unaudited interim Consolidated Financial Statements for the three months ended December 31, 2016 and the accompanying Management Discussion and Analysis, which can be found on SEDAR at and on the Company's website

About HIT Technologies Inc.
HIT Technologies Inc. (TSX VENTURE: HIT) develops and markets a portfolio of products that transform Apple iPhones into high-performing, weather- and shock-resistant video cameras. Both its flagship products, HITCASE PRO and its newer SNAP, allow users to easily capture action photo and video content hands-free, using a variety of HIT Technologies' patented Railslide™ mounts that attach to virtually any surface. Swappable lenses and accessories provide a variety of perspectives otherwise unattainable while participating in adventure sports. HIT Technologies is headquartered in Vancouver, British Columbia, Canada and trades on the TSX Venture Exchange. For more information about HITCASE, visit Search #hitcase on Instagram to see some of the amazing images created by HITCASE customers.

Forward-Looking Statements
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. The information in this release about the Company's anticipated use of available funds, and the future plans and objectives of the Company are forward-looking information.

Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.

This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, global economic climate; dilution; the Company's limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; theft and risk of physical harm to personnel; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements 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 undertakes no obligation to revise or update any forward-looking information other than as required by law.

Cautionary Statement
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy of this release.

HIT Technologies Inc. (Formerly Friday Capital Inc.)
Statements of Financial Position

(Expressed in Canadian dollars)     
  As at  As at
  December 31,  June 30,
  2016  2016
 Current assets     
 Cash 83,728  355,607
 Restricted cash 12,676  12,412
 Accounts receivable 24,639  40,355
 Other Receivables -  23,217
 Government assistance and other receivables -  65,887
 Inventory 440,721  471,436
 Prepaid expenses and deposits 223,146  190,768
   784,910  1,159,682
 Property and equipment 211,781  290,114
 Intangible assets 225,268  214,058
   1,221,959  1,663,854
 Current liabilities     
 Accounts payable and accrued liabilities 788,549  760,730
 Deferred revenue 28,720  62,786
 Current portion of lease liability 7,336  7,227
   824,605  830,743
 Lease liability 26,717  30,413
 Convertible Notes 318,425  -
 Shareholders' Equity     
 Share capital 9,977,667  9,865,699
 Contributed surplus 941,978  838,311
 Deficit (10,867,433)  (9,901,312)
  52,212  802,698
  1,221,959  1,663,854

HIT Technologies Inc. (Formerly Friday Capital Inc.)
Statements of Operations and Comprehensive Loss
For the quarter and six months ended December 31, 2016 & 2015

(Expressed in Canadian dollars)         
  Quarter ended December 31  Six months ended December 31
  2016 2015  2016 2015
 Revenue 239,015 684,731  452,052 1,091,482
 Cost of sales 143,879 434,202  290,683 774,768
   95,136 250,529  161,368 316,714
   40% 37%  36% 29%
 Depreciation 50,859 55,701  101,678 109,047
 Share based compensation 37,297 79,773  79,611 172,199
 General and administrative 319,097 517,382  581,904 982,002
 Research and development 23,818 79,659  46,054 168,049
 Selling and marketing 142,885 460,407  295,418 936,818
   573,957 1,192,923  1,104,665 2,368,115
 Loss before other income (expenses) (478,822) (942,394)  (943,297) (2,051,401)
 Other income (expenses)         
 Finance costs (12,196) (452)  (14,498) (1,556)
 Foreign exchange loss (5,555) (11,578)  (8,327) (9,951)
   (17,751) (12,029)  (22,824) (11,507)
 Loss and comprehensive loss for the period (496,572) (954,423)  (966,121) (2,062,908)
 Basic and diluted loss per share (0.01) (0.02)  (0.01) (0.05)
 Weighted average shares outstanding 68,274,313 42,769,589  67,821,951 42,769,589

HIT Technologies Inc. (Formerly Friday Capital Inc.)
Statements of Changes in Shareholders' Equity/(Deficiency)

(Expressed in Canadian dollars)             
    Share capital         
Total Shareholders' equity / (deficit)
   Number  Amount Contributed
   of shares  $ $  $ $
Balance - June 30, 2015  42,769,589  9,158,838 349,918  (6,643,364) 2,865,392
 Loss for the period          (2,062,909) (2,062,909)
 Share based compensation expense       172,199    172,199
Balance - December 31, 2015  42,769,589  9,158,838 522,117  (8,706,273) 974,682
Balance - June 30, 2016  67,369,589  9,865,699 838,311  (9,901,312) 802,698
 Loss for the period          (966,121) (966,121)
 Share based compensation expense       79,611    79,611
 Equity component convertible debenture       24,056    24,056
 Private placement  1,800,000  90,000      90,000
 Shares issued on settlment of amounts owing  439,359  21,968      21,968
Balance - December 31, 2016  69,608,948  9,977,667 941,978  (10,867,433) 52,212

HIT Technologies Inc. (Formerly Friday Capital Inc.)
Statements of Cashflow
Quarters & six months ended December 31, 2016 & 2015

(Expressed in Canadian dollars) Quarter ended December 31  Six months ended December 31
  2016  2015  2016  2015
Cash flows from/(used in) operating activities           
Loss for the period (496,572)  (954,423)  (966,121)  (2,062,909)
Item not involving cash - depreciation 50,859  55,701  101,678  109,047
Accretive interest expense on convertible note 4,055     4,055   
Share based compensation 37,297  79,773  79,611  172,199
Loss on write down of assets           
Reversed takeover listing expense           
Changes in non-cash working capital items           
Accounts receivable 4,228  (165,977)  15,716  (151,759)
Other reveivable 1,684     23,217   
Government assistance and other receivable    (115,759)  65,887  (140,055)
Inventory 8,947  (185,498)  30,715  (384,985)
Accounts payable and accrued liabilities 48,664  217,789  49,787  14,392
Deferred revenue (44,877)  10,276  (34,066)  (69,651)
Prepaid expenses and deposits (59,915)  (2,855)  (32,378)  17,230
  (445,630)  (1,060,973)  (661,899)  (2,496,491)
Cash flows from/(used in) investing activities           
Restricted cash (169)  (4,562)  (264)  (38,649)
Acquisition of property and equipment (7,466)  (25,993)  (20,082)  (72,804)
Acquisition of intangible assets (2,899)  (35,993)  (14,473)  (49,553)
  (10,534)  (66,548)  (34,819)  (161,006)
Cash flows from/(used in) financing activities           
Lease liability (1,800)  (1,801)  (3,587)  (3,587)
Share capital issuance 90,000     90,000   
Net proceeds from convertible notes 338,426     338,426   
  426,626  (1,801)  424,839  (3,587)
Increase/(decrease) in cash (29,538)  (1,129,322)  (271,879)  (2,661,084)
Cash - Beginning of period 113,266  1,257,373  355,607  2,789,135
Cash - End of period 83,728  128,051  83,728  128,051

Contact Information:

For additional investor information, contact:
Brooks Bergreen
HIT Technologies Inc.

+1 416 815 0700