Montreal, Quebec--(Newsfile Corp. - November 20, 2017) - Peak Positioning Technologies Inc. (CSE: PKK) ("Peak" or the "Company") today announced its financial results and operating highlights for the three-month and nine-month periods ended September 30, 2017. All amounts expressed are in Canadian dollars.
- Transition from strictly sale of goods revenue model in previous periods to focus on recurring financial service revenue model
- $685,614 of cash inflow as a result of exercise of share purchase warrants and private placement financings contributed to working capital and to Chinese business development activities
- Net loss of $883,346
- Deployment of Cubeler commercial lending platform in China
- Obtained Internet Content Provider (ICP) license to operate Cubeler platform in China
- Strategic partnership with Balang Technology Ltd. to bring over 40,000 ICBC small and medium size business clients to Cubeler platform
- Strategic partnership with Wuxi Jinxin Internet Small Loans Ltd. to be able to engage in financial services activities until the arrival of ASFC
- Arrival of first lender to Cubeler platform
- Launch of GoldLegal™ service in partnership with Zhong Yin Law Firm
- First GoldLegal™ facilitated transactions on Cubeler platform
- First "Lend with Me" transactions on Cubeler platform
Third Quarter Financial Results Summary:
The third Quarter marked the official beginning of the Company's revised Revenue model, which went from being primarily focused on the sale of physical goods to more of a recurring revenue model based on the sale of various financial services powered by two fintech platforms. The revenues generated during the quarter came as a result of the launch of 2 of 3 service offerings on the Company's Cubeler platform in China, while activities on its Gold River platform were temporarily put on hold until the platform is able to provide purchase order financing services. The transition to the new revenue model will be deemed completed once Cubeler's 3rd service offering is officially launched and activities on Gold River resume to allow for the financing of client purchase orders.
Although the revenue reported by the Company during the quarter is considerable less than revenues reported in previous quarters, it should be noted that these revenues are recurring monthly revenues which will be reported over a span of several quarters. Most of the revenues related to "Lend with Me" transactions and GoldLegal™ service fees initiated during the quarter do not appear in this quarter's filings as the revenues were not yet earned when the quarter ended even those the services were sold. The portion of these recurring service fee revenues appearing in this third quarter's financials are expected to return for several more quarters to come and increase over time as more service offerings are sold by the Company's operating subsidiaries.
In summary, the Company generated revenues of $3,968 in the third quarter ended September 30, 2017 compared to revenues of $25,887,092 for the quarter ended September 30, 2016. On a cumulative basis, after nine months of operations ending September 30, 2017, the Company generated revenues of $7,473,790, compared to revenues of $25,887,092 for the same period last year.
Expenses for the third quarter amounted to $887,314 compared to $26,363,424 for the same period of 2016. The large variation is mainly due to expenses related to the cost of materials under the Company's previous operational and revenue model. On a cumulative basis the expenses for the nine-month period ended September 30, 2017 totaled $10,050,623 compared to $27,178,959 for the same period of 2016. The 2017 cumulative expenses include a total of $7,469,822 of cost of materials compared to $25,757,458 for the same period last year.
The net loss for the three-month and nine-month periods ending September 30, 2017 was $883,346 (September 30, 2016: $476,332) and $2,576,833 (September 30, 2016: $1,291,867) respectively.
Full details of the Company's third quarter 2017 financial results can be found in the Unaudited Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) for the three- month and nine-month periods ended September 30, 2017 and 2016, which are available at www.sedar.com.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. is an IT portfolio management company whose mission is to assemble, finance and manage a portfolio of high-growth-potential companies and assets in some of the fastest growing tech sectors in China, including Fintech, e-commerce and cloud-computing. Peak provides its shareholders with exceptional growth potential by giving them access to the fastest growing sectors of the world's fastest growing economy. For more information: http://www.peakpositioning.com
CHF Investor Relations
Phone: 416-868-1079 ext.: 231
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President and CEO
Peak Positioning Technologies Inc.
Phone: 514-340-7775 ext.: 501
Email: [email protected]