Toronto, Ontario--(Newsfile Corp. - March 1, 2022) - Kuuhubb Inc. (TSXV: KUU) ("Kuuhubb" or the "Company"), a mobile game development and publishing company focused on providing the female audience with creative interactive gaming experiences, has announced that it has released its unaudited consolidated financial results for the three and six months periods ended December 31, 2021. The results have been filed with the Canadian Securities Administrators and are now available on the Company's issuer profile at www.sedar.com. The Company's financial year end is June 30.
Highlights:
- Revenues of US$963,865 and US$1,965,799 recognized for the three and six months ended December 31, 2021.
- Ongoing Kuu Hubb Oy restructuring is expected to be completed during the FY22. The exact restructuring plan will be announced once finalized.
Financial Results for the Three and Six Months Ended December 31, 2021:
Three Months Ended December 31, 2021:
- The Company generated a total of US$963,865 revenues for the three months ended December 31, 2021.
- The Company incurred cost of sales of US$263,488 for the three months ended December 31, 2021. The cost of sales is predominantly related to the application marketplace (such as Apple App Store and Google Play) fees and other third-party direct costs.
- The Company incurred office and general expenses of US$721,755 for the three months ended December 31, 2021. These fees were related to Kuuhubb's operations including staff and management salaries.
- The Company's EBITDA for the three months ended December 31, 2021 is negative US$500,825 by adjusting the net loss before income taxes of $665,002 with the following items:
Add back of:- non-cash depreciation and amortization of US$6,013;
- non-cash share-based compensation of US$29,905;
- net interest and accretion expenses of US$215,171;
Deduct:
- Foreign exchange loss of US$86,912
Six Months Ended December 31, 2021:
- The Company generated a total of US$1,965,799 revenues for the six months ended December 31, 2021.
- The Company incurred cost of sales of US$648,264 for the six months ended December 31, 2021. The cost of sales is predominantly related to the application marketplace (such as Apple App Store and Google Play) fees and other third-party direct costs.
- The Company incurred office and general expenses of US$1,547,003 for the six months ended December 31, 2021. These fees were related to Kuuhubb's operations including staff and management salaries.
- The Company's EBITDA for the six months ended December 31, 2021 is negative US$988,798 by adjusting the net loss before income taxes of $1,637,053 with the following items:
Add back of:
- non-cash depreciation and amortization of US$10,958;
- non-cash share-based compensation of US$80,531;
- net interest and accretion expenses of US$552,509;
- Foreign exchange loss of US$4,257
Other:
- As at March 1, 2022, the Company had outstanding 66,658,043 common shares, 2,500,000 common share purchase warrants and 6,350,000 stock options.
- The Company also has two convertible debentures with face value of €2,000,000 each. The debentures can be converted to approximately 6,408,727 common shares upon conversion.
Classification of Recolor Oy out held for sale and discontinued operations
The Company was not able to complete the divestiture of Company-owned assets such as shares of Recolor Oy in the past twelve months after best efforts by the management. In addition, the recent restructure of the Company's main operating subsidiary also hinders the Company's ability to continue to pursue the divestiture. Therefore, the associated assets and liabilities and the net income within Recolor Oy, previously presented as held for sale and attributable as discontinued operations in the consolidated financial statements, have been classified back to normal continuing operations. The comparative figures have been reclassified to reflect these changes.
Additional Financial Details & Announcements:
Private Placement of Kuuhubb AG
Kuuhubb AG closed a private placement in December 2021 with an existing shareholder of the Company. The Company issued $234,038 (€200,000) debentures with maturity on February 28, 2022 (in negotiation to extend to February 2024) and annual interest rate of 12%. The loan is unsecured and has a mandatory conversion feature where upon conversion the debt holder would become approximately 9% shareholder of Kuuhubb AG upon maturity.
In January and February 2022, as part of the same private placement, the Company received additional €30,000 and €100,000 from existing shareholders for the same terms.
Restructuring of Kuu Hubb Oy
In September 2021, Kuu Hubb Oy had applied to undertake Finnish restructuring proceedings under the jurisdiction of the District Court of Helsinki, in Finland. The debt restructuring process of Kuu Hubb Oy in accordance with the Finnish Restructuring of Enterprises Act (25.1.1993/47 "REA") has been initiated by a decision of the District Court of Helsinki on September 7, 2021.
During the last several months, Kuu Hubb Oy has, together with the administrator, formulated a restructuring program. The general outline and parameters of the program have been informed to major creditors and the program was submitted to the District Court of Helsinki on February 28, 2022. The program will be voted on at a later date approved by the court.
CEO's Message
Jouni Keränen, CEO of Kuuhubb Inc., commented, "The restructuring process of Kuuhubb Inc's Finnish subsidiary Kuu Hubb Oy has progressed to the next phase with the proposal having been submitted to the District Court of Helsinki on February 28th 2022. Kuuhubb continues to focus on improving its existing portfolio of high-quality gaming and mobile app assets and is exploring new and innovative ways to upgrade its user gaming experience and further refine its monetization model."
EBITDA - Non-IFRS Measure
EBITDA is intended to provide additional information to investors and analysts. The Company calculated EBITDA as set out on page 1 of this press release. EBITDA does not have any standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate EBITDA differently.
About Kuuhubb
Kuuhubb is a publicly listed mobile game development and publishing company, targeting the casual audience with bespoke mobile experiences. Our Mission is to become a top player in the casual mobile game space. We believe in empowering people by creating games and apps that will have our audience relax, express and entertain themselves every day. Through our games and partnerships with select developers, we explore new lifestyle trends that can be converted into games and apps which will bring value to our users, employees, and shareholders. Headquartered in Helsinki, Finland and with an office in Zug, Switzerland, Kuuhubb is targeting global audience with a strong focus on U.S. and Asian markets.
Cautionary Note Concerning Forward-Looking Information
This press release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to future revenue and development, growth of the Company's business) are forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other thing:, risks related to the growth strategy of the Company; the possibility that results from the Company's growth plans will not be consistent with the Company's expectations; the early stage of the Company's development; competition from companies in a number of industries; the ability of the Company to manage expansion and integrate acquisitions into its business, future business development of the Company, including the ability to complete the sale of Recolor OY and the Codecacao Acquisition on terms which are economic or at all; the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on its business segments, capital market conditions, restrictions on labour and international travel and supply chains; and the other risks disclosed under the heading "Risk Factors" in the Company's management discussion and analysis for the twelve months ended June 30, 2020 filed on SEDAR at www.sedar.com. Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
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.
For further information, please contact:
Kuuhubb Inc.
Jouni Keränen - CEO
jouni@kuuhubb.com
Office: +358 40 590 0919
Bill Mitoulas
Investor Relations
bill@kuuhubb.com
Office: +1 (416) 479-9547
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/115305
