|By Marketwired .||
|November 30, 2016 09:00 AM EST|
VANCOUVER, BC--(Marketwired - November 30, 2016) - 3tl Technologies Corp. (TSX VENTURE: TTM) (OTCQB: TTMZF) (the "Company" or "3tl") announced its financial results for the third quarter ended September 30, 2016. The financial statements and management discussion and analysis for the quarter ended September 30, 2016 are available on SEDAR.
The Company's performance highlights for the three months and nine months ended September 30, 2016:
- Revenue increased by 666% to $267,968 and by 126% to $610,402 for the three months and nine months ended September 30, 2016, respectively, compared to the same periods in 2015.
- Increased the number of PLATFORM
- Increased the average value of license agreements including, the multi-year agreement with NBC Universal owned Fandango Rewards signed in the quarter ended June 30, 2016, and two agreements signed in the quarter ended September 30, 2016 for $108,000 over ten weeks and for $86,000 over two months, compared with short-term licenses averaging approximately $15,000 earlier in 2016.
- Launched two new modules to PLATFORM
"In 2016 our team has grown revenues and gross profits while reducing operating expenses. In the third quarter, we launched new modules that enable leading consumer packaged goods brands to target coupons and messaging at consumers that have validated purchases on PLATFORM
RESULTS OF OPERATIONS
Revenue for the three months ended September 30, 2016 increased by 666% to $267,968 and revenue for the nine months ended September 30, 2016 increased by 126% to $610,402, compared to the same periods last year. The Company's revenue increase in the three and nine months ended September 30, 2016 was due to a larger number of license agreements delivered and a trend towards longer term and larger value license agreements compared to the same periods ended September 30, 2015.
The Company started 2016 with over 20 short-term licenses averaging approximately $15,000 per license. These license agreements were with leading brands and agencies, many of which are coming back for repeat business. The last three license agreements have been larger and with longer-term, including the multi-year agreement with NBC Universal owned Fandango Rewards signed in the quarter ended June 30, 2016, and two agreements signed in the quarter ended September 30, 2016 for $108,000 over ten weeks and for $86,000 over two months. The revenues from the Fandango Rewards agreement will be recognized over the two-year period, while the other two projects were completed and will be recognized in 2016. In the fourth quarter of 2016, 3tl is focused on securing longer-term license agreements, which are expected to launch and be recognized mostly in 2017.
Gross margin as a percentage of sales increased to 55% and 70%, respectively, for the three and nine months ended September 30, 2016 compared to gross loss of 40% and gross margin 21% for the three and nine months ended September 30, 2015 due to the growth of high margin SaaS revenues from PLATFORM
As the size and term of 3tl's agreements increase it is expected that some agreements will include a SaaS component with gross profit margins estimated at over 80%, and a lower margin managed services component. Our sales team is focused on maximizing high-margin SaaS revenues, but some of the major brands and agencies need some additional support to implement their digital marketing plans.
General and administrative expenses for the three and nine months ended September 30, 2016 decreased to $184,527 and $691,805, respectively, compared to $360,324 and $1,151,484 for the three and nine months ended September 30, 2015.
Sales and marketing expenses for the three months ended September 30, 2016 increased to $207,233 compared to $148,641 for the three months ended September 30, 2015. Sales and marketing expenses for the nine months ended September 30, 2016 remained relatively stable at $539,111, compared to $541,412 incurred in the same period ended September 30, 2015.
Research and development ("R&D") expenditure for the three and nine months ended September 30, 2016 decreased to $90,909 and $250,358, respectively, compared to $113,269 and $492,633 for the three and nine months ended September 30, 2015, which was related to reduction of human resources and outsourcing activities. After more than four years of investment in R&D in PLATFORM
Share-based compensation for the three and nine months ended September 30, 2016 was $62,271 and $211,704, respectively, compared to $14,229 and $107,506 for the same periods ended September 30, 2015.
Net and comprehensive loss for the three and nine months ended September 30, 2016 decreased to $395,264 and $1,263,017 compared to $633,495 and $2,213,681 for the three and nine months ended September 30, 2015. This decrease was due to overall decrease in general and administrative, sales and marketing, and research and development related to cost reduction efforts.
Subsequent to September 30, 2016, on November 24, 2016, the Company completed a non-brokered private placement of 20,003,304 units of the Company at $0.05 per unit for gross proceeds of $1,000,165.20. Each unit consists of one common share of the Company and one-half of a share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at a price of $0.075 per warrant until November 24, 2018. The company is entitled to accelerate the expire of the share purchase 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 equal to or greater than $0.15 for any ten consecutive trading days after March 25, 2017 but on or prior to November 24, 2018.
About 3tl Technologies Corp.
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.
For further information, please contact:
3tl Technologies Corp.
Chief Executive Officer
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