YDX INNOVATION CORP. REPORTS REVENUE OF $2.27M, GROWTH OF 32.9% IN 2018
TSX.V: YDX / OTC: YDRMF / FSE: A2PB03
Files December 31,
2018 Audited Financial Statements
- Records Q4 net sales revenue of $664,457, an increase of 70% YoY
- Gross Margin in 2018 increased by 302% YoY
- Launched Arkave VR in the United States
- Delivered over 40 Projects for 25 different clients in 2018
VANCOUVER, B.C. – May 6th, 2019 – YDX Innovation Corp (TSX-V: YDX, OTC: YDRMF, FSE: A2PB03) (“YDX” or the “Company”), is pleased to announce the filing of its audited annual financial results for the 12 months ended December 31st, 2018. Complete MD&A and audited financial statements were published and are available on SEDAR. All numbers in this release are expressed in CAD.
YDX Innovation had a year focused on growth and sustainability, creating an important base for 2019. In 2018, through a subscription business model, the Company deployed Arkave VR in the US and in several events in Brazil, creating a new source of revenues for the Company with higher margins compared to the project division and the potential for recurring revenues. The Company applied significant resources in the
The YDreams Global division delivered more projects and, as the main source of revenue of the Company, also attracted several new clients including Embraer, a new key client for 2019.
Daniel Japiassu, CEO of YDX Innovation stated, “We are very happy with the results and overall performance of the Company in 2018. YDreams Global continues to regularly deliver
2018 BUSINESS HIGHLIGHTS
Near the end of fiscal 2018, the Company officially launched
The return on investment is intended to be obtained by selling
During the year ended December 31, 2018, the Company’s main division, YDreams Global, was actively commissioned to deliver major projects including the following:
- On January 12, 2018, the Company began a new project entitled “Social Media Influencers – Game Edition”, with the first sponsor committing $515,000 towards the cost of the exhibition.
- On April 4, 2018, the Company signed a new contract to develop an educational game using VR for one of the largest energy companies in the world. The game is geared to educate children and young adults
inrespect to energy conservation and sustainability.
- On May 5, 2018, the Company announced that it had been commissioned to open two new
ArkaveVR pop up Arenas in a shopping mall in Brazil.
- On June 6, 2018, the Company announced that
Arkavewill be one of the main attractions of the Game XP Event. The Company signed a contract to bring six Arkave VR arenas to the Event.
- On June 8, 2018, the Company announced that it has been commissioned by a company from the shopping mall industry to create an interactive Virtual Reality Experience that will showcase the future of shopping. The contract was for approximately CAD$130,000 to develop the interactive VR software.
- On June 21, 2018, the Company announced the delivery of a new project for two banking brands. The Company created the project for one of the biggest IT banking events in the world which saw an estimated 20,000 visitors to the booth during the
- On September 6, 2018, the Company announced that it had developed a new augmented reality mobile app for Hyundai Motor Brazil.
- On October 1, 2018, the Company announced that it launched the first branded content using the Company’s
ArkaveVirtual Reality (VR) platform. The YDreams Global division was commissioned by Petrobras in partnership with F1 Team McLaren to deliver an immersive one of a kind VR experience that would debut at the Rio Oil and Gas Event.
- On November 28, 2018, the Company announced the signing of the first
ArkaveVR deal in the US with Andretti Indoor Karting & Games.
- On December 10, 2018, the Company announced the second U.S.
ArkaveVR installation at the Launch Trampoline Park in Doral, Florida.
BUSINESS HIGHLIGHTS IN 2019
- On February 12, 2019, the Company announced the third U.S. installation of its
ArkaveVR platform will be at Launch Trampoline Park in Methuen, Massachusetts.
- On February 26, 2019, the Company announced an agreement with The Walt Disney Company Brazil to create exclusive content for
ArkaveVR. The objective is to create a new VR experience using Disney´s iconic IP – Mickey Mouse. The first game will be co-created by Disney and Arkavein Brazil and will bring Mickey Mouse to ArkaveVR.
- On March 21, 2019, the Company signed a new project for the Brazilian aerospace conglomerate Embraer S.A. Embraer is building a new
centreto host clients, investors andvisitors at its global headquarters. YDx Innovation was initially commissioned to create the client journey, conceive the interior design and plan the interactive technology attractions.
2018 FINANCIAL HIGHLIGHTS
- The Company’s gross profit increased by $733,364 from a gross profit of $242,740 in the year ended December 31,
2017to a gross profit of $976,104 in the year ended December 31, 2018. Workingcapital deficit, which is comprised of current assets less current liabilities, was a deficit of $494,599 at December 31, 2018compared to a working capital deficit of $1,205,226 at December 31, 2017.
During the year ended December 31, 2018, the Company reported a net loss of $2,408,535 ($0.03 basic and diluted loss per share) compared to a net loss of $4,575,750 ($0.08 basic and diluted loss per share) during the year ended December 31, 2017.
FINANCIAL STATEMENT REVIEW
Consolidated Statements prepared in accordance with IFRS
(Expressed in Canadian dollars)
|December 31, 2018||December 31, 2017|
|NET SALES REVENUE||$||2,271,522||$||1,709,544|
|COSTS OF SERVICES RENDERED||(1,295,418)||(1,466,804)|
|Office and miscellaneous||407,951||403,867|
|Research and development||–||447,976|
|Transfer agent and filing fees||29,321||32,180|
|Travel and promotion||467,296||616,644|
|TOTAL OPERATING EXPENSES||(3,159,750)||(4,146,754)|
|LOSS BEFORE OTHER ITEMS||(2,183,646)||(3,904,014)|
|Impairment of recoverable taxes||(41,486)||(494,185)|
|Gain on sale of marketable securities||–||10,500|
|Foreign exchange loss||(4,287)||(10,077)|
|NET LOSS FOR THE YEAR||(2,408,535)||(4,575,750)|
|Foreign currency translation adjustment||52,236||(79,942)|
|Loss per share, basic and diluted||$||(0.03)||$||(0.08)|
|Weighted average number of common shares outstanding||78,908,983||60,195,001|
SELECTED QUARTERLY FINANCIAL INFORMATION
The following table presents selected financial information for each of the last eight quarters.
|Net sales revenue||$ 664,457||$ 416,802||$ 526,678||$ 663,585|
|Net income (loss)||(318,674)||(308,222)||(441,828)||(1,004,007)|
|Basic and diluted loss per share||(0.00)||(0.01)||(0.01)||(0.01)|
|Working capital (deficiency)||(494,599)||132,676||(77,628)||256,335|
|Net sales revenue||$ 390,908||$ 537,624||$ 533,639||$ 247,373|
|Net income (loss)||(1,752,981)||(481,106)||(767,884)||(1,573,779)|
|Basic and diluted loss per share||(0.01)||(0.01)||(0.01)||(0.03)|
|Working capital (deficiency)||(1,205,226)||58,393||425,759||1,049,620|
About YDX Innovation
YDX Innovation Corp. (TSXV-
YDreams Global– www.ydreamsglobal.com– have developed over 1,300 interactive experiences for clients all over the world such as Disney, NBA, Adidas, Cisco, Nokia, Nike, Mercedes Benz, Coca-Cola, Santander, AmBev, Qualcomm, Unilever, City of Rio and Fiat.
Game On Festival– www.gameonfestival.com– is a new event under development by the Company that combines eSports Tournaments with a large Interactive Exhibition about the videogame industry and its history.
YDX Innovation Corp.
Suite 2820 – 200 Granville Street
Vancouver B.C. V6C 1S4