VANCOUVER, Nov. 24, 2017 /CNW/ - 3tl Technologies
Corp. (TSXV: TTM)(OTCQB: TTMZF) (the "Company" or "3tl")
announced its financial results for the third quarter ended
September 30, 2017. The
financial statements and management discussion and analysis for the
quarter ended September 30, 2017 are
available on SEDAR.
The Company's performance highlights for the three months and
nine months ended September 30,
2017:
- Revenue increased by 51% to $921,774 compared to the nine months ended
September 30, 2016.
- Gross margin as a percentage of revenue for the three and nine
months ended September 30, 2017 was
70% and 68%, respectively, compared to 55% and 70% for the three
and nine months ended September 30,
2016.
- Increased the average value of license agreements including the
signing of multiple long-term (1 and 2 years) agreements.
- Launched version 3.0 of PLATFORM3 which leverages
Machine Learning and Artificial Intelligence (AI) to retarget
consumers based on purchase habits and frequency. AI capabilities
have been integrated into two new modules of PLATFORM3
3.0 - Targeted Couponing and Shopper Messaging and Retargeting.
These developments were the result of experience and feedback
aggregated from working with some of the largest CPG companies in
the world and millions of consumers.
Subsequent to the third quarter, on
November 20, 2017 the Company completed a private
placement of 11,211,834 units for gross proceeds of $1,177,243.
In 2017 year-to-date, 3tl has 34 agreements that will generate
approximately $1,500,000 in total
revenues with approximately 70% of those revenues to be recognized
in 2017, compared with revenues of $665,728 for the year ended December 31, 2016:
"In 2017 our team has grown revenues driven by repeat business
and longer term agreements with leading U.S. based brands.
The recently closed financing will enable us to accelerate sales
growth by hiring some key sales people, who have relationships and
expertise with major consumer goods brands," said Rob Craig, CEO of 3tl Technologies Corp. "This
has been done while continuing to invest in R&D which has
resulted in the release of our first artificial intelligence (AI)
based modules. These modules enable CPG brands to automatically
retarget consumers base on purchase behaviour.. This powerful new
technology has extended our value proposition allowing us to gain
further traction in the U.S. market as evidenced by new and repeat
business from leading brands and ad agencies and longer term
Software-as-a-Service (SaaS) license agreements."
RESULTS OF OPERATIONS
Revenue for the three months ended September 30, 2017 increased by 35% to
$362,518, and revenue for the nine
months ended September 30, 2017
increased by 51% to $921,774,
compared with the same periods in 2016. The PLATFORM3
product is an integrated suite of digital marketing applications
sold as SaaS for short-term promotions or on an annual
subscriptions basis with recurring revenues. Revenue in the year
reflected recognition of revenue from previous year contracts and
new sales of the PLATFORM3 product offering.
Gross margin as a percentage of revenue for the three and nine
months ended September 30, 2017 was
70% and 68%, respectively, compared to 55% and 70% for the three
and nine months ended September 30,
2016. Gross margin as a percentage of revenue depends on the
product mix for the reporting period. Revenues are comprised
of higher margin sales of PLATFORM3, the Company's
proprietary Software as a Service product combined with some lower
margin third party services. In 2017, 3tl launched an API
connection to third party digital rewards platforms. This service
enables 3tl clients to offer digital rewards such as gift cards,
movie tickets and virtual visas to incentivize purchase and
purchase frequency. 3tl will purchase these rewards on behalf of
the Company's clients and charge a 15% transaction fee for the
total amount of rewards purchased. Cost of sales also includes the
cost of servers to host PLATFORM3, and project
management and customer support staff.
General and administrative expenses for the three and nine
months ended September 30, 2017
increased by 23% and 29% to $227,817
and $889,592, respectively, compared
to $184,527 and $691,805 for the three and nine months ended
September 30, 2016. The increase was
due to general office and other expenses including investor
relations.
Sales and marketing expenses for the three and nine months ended
September 30, 2017 increased by 0%
and 19% to $207,826 and $644,053, respectively, compared to $207,233 and $539,111 for the three and nine months ended
September 30, 2016. The increase was
mainly due to increased salaries and wages, and consulting fees
paid in connection with sales and marketing activities.
Research and development expenditure for the three and nine
months ended September 30, 2017
decreased by 1% and increased by 21% to $89,618 and $304,094, respectively, compared to $90,909 and $250,358 for the three and nine months ended
September 30, 2016. Research and
development expenses increased for the nine months ended September,
2017 compared to the nine months ended September 30, 2016 as improvements were made to
improve PLATFORM3. The costs recorded in 2016 relate to
improvements to PLATFORM3. Research and development
expenses may increase in the future as the Company seeks to evolve
and improve PLATFORM3, as well as to invest in creating
new technology and products that will enhance the Company's value
proposition to customers and provide additional revenues. Research
and development expenses include wages and salaries and consulting
fees.
Share-based compensation for the three and nine months ended
September 30, 2017 was $48,666 and $66,165, respectively compared to $62,271 and $211,704 for the three and nine months ended
September 30, 2016. The share-based
compensation expense is a result of stock options that vested
during the period for stock options granted to employees, directors
and consultants in the current and prior periods.
Net and comprehensive loss for the three and nine months ended
September 30, 2017 decreased by 18%
and 0% to $315,166 and $1,259,803, respectively, compared to
$395,264 and $1,263,017 for the three and nine months ended
September 30, 2016. This increase was
mainly due to the increase of operating expenses.
As a result of the 10 for 1 consolidation of the Company's
common shares effective in May, 2017, on November 23, 2017 the Company's board of
directors, subject to shareholder and TSX Venture Exchange
("TSXV") approval, approved the re-pricing of a total
aggregate of 564,000 options granted to certain Insiders and non
Insiders of the Company to purchase common shares of the Company
("Options"), to an amended exercise price of i) the higher
of $0.17 and ii) the closing
market price of the Company's Common Shares at the date Shareholder
approval, is obtained (the "Re-Pricing"). The closing
price of the Company's common shares on the TSXV on the date of
Board approval to the Re-Pricing, was $0.165.
Pursuant to the policies of the TSXV, the re-pricing of options
held by Insiders is subject to disinterested approval.
Shareholder approval will be sought at the Company's upcoming
Annual General Meeting ("AGM") to be held on December 22, 2017 to the re-pricing of a total of
510,000 Options issued to Insiders of the Company. The
Re-Pricing of the Options held by Insiders is subject to the
approval of a simple majority approval of the Company's
shareholders excluding votes attached to shares beneficially owned
by Insiders to whom options may be granted under the Company's
stock option plan or associates of such persons. If such
approval is obtained the Re-Pricing remains at the discretion of
the board of directors.
The Re-Pricing of the Options will be submitted for TSXV
approval shortly after the Company's AGM. Prior to the
Company's receipt of TSXV and shareholder approval, none of the
Options may be exercised at the revised price.
Subsequent to September 30, 2017,
the Company released the remaining 1,147,300 shares held in escrow
on November 7, 2017. Subsequent to
that date, there are no escrow shares outstanding.
On November 20, 2017 the Company completed a
private placement of 11,211,834 units for gross proceeds of
$1,177,243. Each unit
consists of one common share in the capital of the Company and
one-half of a share purchase warrant. Each warrant entitles
the holder to purchase one additional common share in the capital
of the Company at a price of $0.20
per Warrant Share for a period of two years from the closing of the
offering. The Company is entitled to accelerate the expiry
date of the warrants to the date that is 30 days following the date
a news release is issued announcing the accelerated expiry date in
the event that the volume weighted average price of the Shares has
been greater than $0.40 for any ten
consecutive trading days after four months and one day after
closing of the Offering.
About 3tl Technologies Corp.
PLATFORM³ is a Software
as a Service (SaaS) consumer marketing platform. It enables
Consumer Packaged Goods (CPG) companies and consumer brands to
engage shoppers through their mobile device and influence their
purchasing decisions. PLATFORM³ encompasses proprietary consumer
engagement strategies and technology modules including optical
character recognition (purchase receipt scanning), digital
promotions, purchase data mining, loyalty and rewards. CPG
companies and major retail brands use PLATFORM³ to influence and
incentivize shoppers to interact with their brand and make
purchases in-store and online.
For more information, visit 3tltechcorp.com.
For additional information about the company please visit
www.sedar.com. The TSX Venture Exchange Inc. has in no way
passed upon the merits of the transaction and has neither approved
nor disapproved the contents of this press release. Neither
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. This news release contains forward-looking
information, which involves known and unknown risks, uncertainties
and other factors that may cause actual events to differ materially
from current expectation. Important factors - including the
availability of funds and the results of financing efforts, - that
could cause actual results to differ materially from the Company's
expectations are disclosed in the Company's documents filed from
time to time on SEDAR (see www.sedar.com). Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press
release. The Company disclaims any intention or obligation,
except to the extent required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE 3tl Technologies Corp.