YDX INNOVATION CORP. REPORTS REVENUE OF $2.43M, IN 2019
YDX INNOVATION CORP. REPORTS REVENUE OF $2.43M, IN 2019
Files December 31, 2019 Audited Financial Statements
- Q4 net sales revenue of $721,681 a growth of 8% YoY
- Gross Margin in 2019 was $ 840,620
- Installed 34 Permanent or Pop Ups Arkave VR Arenas in the Brazil, United States, Canada and England
- Created an exclusive game with Disney
- Created 3 new Interactive Exhibitions products
- Delivered over 60 Projects for 27 different clients in 2019
VANCOUVER, B.C. – June 22nd, 2020 – 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 ending in December 31st, 2019. Complete MD&A and Financial Statements were published and are available on SEDAR. All currency numbers reported in this release are expressed in CAD.
YDX Innovation has experienced its second continuous year of growth. The Company presented a 32.9% growth increase in 2018 with reported revenues of $2.27M. In 2019 the Company added the Arkave VR division which generated $205,177 in gross revenues and the Company grew to $2.43M in total revenues.
The Company invested in building and owning their own intellectual property in signing with Walt Disney Co Brazil to create an exclusive experience in Virtual Reality, featuring Mickey Mouse, with the objective to add additional products/licenses to be commercialized worldwide.
In 2019 the Company also delivered new products in the format of interactive exhibitions. As previously stated in earlier press releases, the Company released three (3) new Interactive Exhibitions: Landscapes of Van Gogh, Water and Us, and Tarsila for Kids. All of these exhibitions were designed to be licensed to different brands and shopping malls, while embracing a traveling exhibition model. The Landscapes of Van Gogh was deployed in two (2) extra shopping malls after its original debut in the city of São Paulo. All exhibitions received great reviews from the media which brought additional brand awareness to the exhibitions and the Company, while serving and educating a high number of visitors. Sponsors were very satisfied with the results and the projects had a strong presence on social media, with thousands of additional social impressions and engagements about the projects.
Results from the main projects of 2019 can be seen in this portfolio video at our YouTube Channel: Click Here to Watch our Video Reel
“Creating and deploying our own products was our main objective for 2019. We were able to put Arkave VR in the very competitive location-based entertainment industry and close an exclusive deal with Disney. YDreams Global created three new products that we can now bring to malls all over the world, at higher margins. Shopping Malls have to book our exhibitions in advance, which enhance our ability to plan our operations.
We finished 2019 with the best pipeline we had since the end of 2015 with our Van Gogh exhibition booked for several editions this year. Unfortunately, no one could predict this pandemic, which had serious effects in two of our main industries, location-based and live activations. We have been working throughout this situation to identify new opportunities and adapt to the new reality. Recently, acquisitions of Beat Gaming and Purple Mage show a clear direction that YDX will have a stronger presence online through new products in esports and VR.
There is a new strategy to bring Virtual Reality to consumers directly and offer our expertise to companies that need this immersive technology to better operate during this new reality.
I want to take this opportunity to thank the team, who in 2019 delivered several high level products and continue to push the innovation of the Company.
I would also like to thank our shareholders for their patience and understanding, the Company has a bright future ahead that depends on strategic investment in the new frontier of technologies that are changing the way we work, play, learn and communicate. The world is living a delicate moment and we have to find the opportunities of growth and the lessons that are hidden in this terrible pandemic. We foresee that habits will change and that several industries will be affected long term. We are adapting the company to that future.
Our deepest sympathies for our partners and shareholders affected directly or indirectly by the Coronavirus. We are hopeful this shall pass soon and will continue to work towards building a sustainable and conscientious company“– Stated Daniel Japiassu – CEO of YDX Innovation.
2019 BUSINESS HIGHLIGHTS
The Company started the year of 2019 by installing Arkave VR Arenas in two Launch Trampoline parks in the United States. Shortly after, it was announced that the Company would develop an exclusive game with Disney featuring Mickey Mouse. Early in the year, the Company also deployed two projects for Shopping Malls, a playground about Unicorns and a VR experience showing the future of the shopping mall service.
It was a very busy year for the company with the consolidation of YDreams Global of the main company of interactive exhibitions of Brazil. The projects created by YDreams were seen by over 200,000 people in 2019 and seen in over 600,000 social media posts. Our projects were featured several times in national television and all exhibitions were considered a massive success of public by the sponsors and malls hosting the exhibition.
In 2019 the company also built important relationships to create a stronger group. Two changes were made on the Board of Directors and partnerships were made with Liquid Media Group, The Rock in Rio Group, Launch Trampoline Park and Sonae Sierra.
The Company also received the great honour to be selected by the American publication Fast Company. Mission Genesis, our Cancer Awareness Roadshow with the Barretos Cancer Hospital have been recognized as one of Fast Company’s world changing ideas for 2019.
BUSINESS HIGHLIGHTS IN 2019
Here is a summary of the main news disseminated by the Company in 2019:
- On January 24, 2019, the Company announced that it would be renamed YDX Innovation, a symbol that the Company was looking to expand its divisions and seeking new business models. The Company also announced its esports initiative: Game On.
- On February 26, 2019, the Company signed a licensing agreement with The Walt Disney Company Brazil to Create a Mickey Mouse Themed Arkave VR Experience.
- On March 21st, 2019, the Company announced that YDreams Global was contracted to develop the first Customer Experience Center for Aerospace manufacturer Embraer S.A.
- On April 8th, 2019, the Company was pleased to announce the appointment of Mr. Cesare Fazari to its board of directors.
- On May, 2019, the Company announced the opening of two Arkave VR Arenas in Colorado and Florida, USA. The Company also announced a partnership with Liquid Media Group for access to content and IP to the production of Game On Festival. The partnership also included creating content for Arkave VR using Liquid Media’s IPs.
- On May 27th, 2019, the Company announced a new project for the NBA.
- On June 27th, 2019, the Company announced that it had finished a project commissioned by one of the most recognized brands in the world, the fast food company, McDonald’s.
- On July, 2019, the Company announced the opening of two Arkave VR arenas in British Columbia, two in London, UK and one in Los Angeles. The Company also brought 7 Arkave Arenas to Game XP, one of the main esports events of South America.
- On August 17th, 2019, YDreams Global launched an immersive exhibition about the life and work of Vincent van Gogh. During its 28 days, the Exhibition received close to 22,000 visitors, double of the expected attendance and target number, with almost 90% occupancy rate.
- On August 19th, 2019, the Company announced a new VR project for the oil company Shell.
- On September 5th, 2019, the Company announced the second project with airplane manufacturer Embraer.
- On September 13th, 2019, the Company launched named “Water and Us”, about the importance of water to our planet and for humankind.
- On October 17th, 2019, the Company announced that it had signed a contract to create a new immersive exhibition called “Tarsila for Kids” with Getnet, a company part of the Santander Bank group, as the main sponsor.
- On October 25th, 2019, the Company announced that Arkave VR would be one of the attractions at the EGLX event in Toronto. One of the main esports events in Canada.
- On October 28th, 2019, YDreams Global announced a partnership with Ericsson to create an entertainment project combining 5G with Virtual Reality and a holographic projection live, on stage.
- On November 5th, 2019, the Company announced that YDreams Global, had signed a contract with energy group Energisa to lead a new project for a permanent educational exhibition focused on the subject of responsible and sustainable energy use.
- On November 14th, 2019, the Company announced a partnership with the Liquid Media Group to create a multiplayer, VR experience for the game “Romans from Mars”.
FINANCIAL STATEMENT REVIEW
Consolidated Statements prepared in accordance with IFRS
(Expressed in Canadian dollars)
|December 31, 2019||December 31, 2018|
|COSTS OF SERVICES||(1,595,284)||(1,295,418)|
|Office and miscellaneous||281,462||407,951|
|Research and development||145,237||–|
|Transfer agent and filing fees||40,067||29,321|
|Travel and promotion||453,036||467,296|
|TOTAL OPERATING EXPENSES||(3,262,189)||(3,159,750)|
|LOSS BEFORE OTHER ITEMS||(2,421,569)||(2,183,646)|
|Impairment of recoverable taxes||–||(41,486)|
|Foreign exchange loss||(6,510)||(4,287)|
|NET LOSS FOR THE YEAR||(2,585,886)||(2,408,535)|
|OTHER COMPREHENSIVE INCOME (LOSS)|
|Foreign currency translation adjustment||(3,850)||52,236|
|Loss per share, basic and diluted||$||(0.21)||$||(0.24)|
|Weighted average number of common shares outstanding||11,215,246||9,863,623|
SELECTED QUARTERLY FINANCIAL INFORMATION
The following table presents selected financial information for each of the last eight quarters.
|Net sales revenue||$ 721,681||$ 841,401||$ 513,530||$ 359,292|
|Net income (loss)||(571,156)||(441,240)||(869,554)||(703,936)|
|Basic and diluted loss per share||(0.06)||(0.04)||(0.08)||(0.07)|
|Working capital (deficiency)||(989,044)||(698,257)||(758,094)||(1,021,201)|
|Net sales revenue||$ 664,457||$ 416,802||$ 526,678||$ 663,585|
|Net income (loss)||(190,826)||(771,874)||(441,828)||(1,004,007)|
|Basic and diluted loss per share||(0.02)||(0.07)||(0.04)||(0.12)|
|Working capital (deficiency)||(494,599)||132,676||(77,628)||256,335|
About YDX Innovation
YDX Innovation Corp. (TSXV- YDX :: www.ydxinnovation.com) is a technology company that develops products and services and is an expert in immersive technologies like Augmented and Virtual Reality, eSports events and Interactive Exhibitions under the following four divisions:
Arkave VR Arena – https://sales.arkavevr.com/ – a gaming platform that brings the most immersive Virtual Reality experience to Location-Based venues with a highly scalable business model. Developed as an all-in-one gamers haven featuring state-of-the-art free room tech right down to the most nostalgic gaming systems.
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.
BEAT Gaming – www.beat.gl -Founded in 2011, BEAT Gaming is an experienced Canadian esports company that has organized internationally recognized events such as the Dota 2, Overwatch and PUBG BEAT Invitational. Since its creation, BEAT has organized over 30 professional and semi-pro esports events, which have reached over 40 million views globally.
Purple Mage Advisors – www.purplemage.com – Purple Mage Advisors (PMA) is a research and data analysis firm that specializes in player recruitment and development in the gaming industry. PMA helps esports and gaming companies with industry reports, player recruitment, player training, data analysis and relevant statistical reporting.
Director and CEO
This news release may contain “forward-looking statements” within the meaning of applicable Canadian securities laws, including, without limitation: the belief that Company has a bright future that depends on strategic investment in new technologies; the intention to build a sustainable and conscientious company; the intention that YDX will have a stronger presence online through new products in esports and VR; and the intention to bring Virtual Reality to consumers directly and offer expertise in immersive technologies to allow companies to better operate during the new reality of the COVID-19 pandemic. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. The Company’s statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of the Company’s control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Transaction, including: that the Company’s assumptions in making forward-looking statements may prove to be incorrect; general adverse market conditions and competition; the inability to finance operations and/or obtain any future strategic investment necessary to implement new technologies; the inability to build a sustainable, conscientious company with a stronger presence online through new products in esports and VR; the inability to bring Virtual Reality to consumers directly and offer expertise in immersive technologies; and that market conditions related to the COVID-19 pandemic may negatively affect the outcome of the business or operations of the Company, including its results and financial condition. Except as required by securities law, the Company does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
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.