Toronto, Ontario--(Newsfile Corp. - May 22, 2024) - RIWI Corp. (TSXV: RIWI) (OTC PINK: RWCRF) (the "Company" or "RIWI"), a global trend-tracking and prediction technology firm, reported its financial results for the quarter ended March 31, 2024. All figures are reported in U.S. dollars unless otherwise indicated. RIWI's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").
RIWI Highlights for the Quarter Ended March 31, 2024:
RIWI earned $1,135,847 in revenues in the first quarter of 2024 compared to $1,201,240 for the three months ended March 31, 2023, a decrease of 5.4%. That revenue consisted of $429,106 in transaction revenue, $407,337 in recurring revenue and $299,404 in project-based revenue. RIWI also recorded net income of $27,087 for the three months ended March 31, 2024, as compared to a net loss of $127,944 for the three months ended March 31, 2023.
On April 24, 2024, RIWI announced the acquisition of the majority of the assets of CoolTool Inc., a leading survey and non-conscious data collection platform. While the acquisition is new, RIWI has begun integrating the CoolTool platform into the RIWI platform and the sales pipeline has already grown into double-digit prospects. Management expects the first deals to close in the second quarter of 2024.
RIWI signed 19 new client contracts in the three months ended March 31, 2024, including contract signings with eight new RIWI customers.
Through the CoolTool acquisition, RIWI has named Dmitry Gaiduk as Chief Product Officer and he will lead product strategy and product management.
RIWI made significant investments in marketing in order to build brand and accelerate lead generation including attending multiple industry events such as Samplecon, Quirks and the Insights and Innovation Exchange. In addition, RIWI made updates to its website and launched several campaigns in various customer segments including packaged goods, market research agencies and academia, that are all expected to drive revenue in the coming quarters.
RIWI invested heavily in data quality through the addition of third-party software packages like Research Defender and improving processes to prevent fraud at the source. These measures will build trust with customers, reduce reconciliation rates and improve transactional revenue over time.
RIWI was recognized in several publications in the first quarter: Frontiers' article on "Patient-Centered Perspective on Perioperative Care"; ILGA World's "Diversity as Strategic Opportunity: Exploring New Paths to Good Administration"; Latinoamerica 21's article: "Challenges to electoral polls in the digital era"; and Science Direct's article "Socio-demographic determinants of COVID-19 vaccine uptake in Ontario: Exploring differences across the Health Region model."
"RIWI continues to focus on our long-term strategy of building an end-to-end market research technology and data platform. The announcement of the acquisition of CoolTool post-Q1 will further accelerate that strategy and enhance our ability to support our customers' total market research needs," said Greg Wong, Chief Executive of RIWI. "While we are seeing early positive results of our strategy, RIWI continues to expect to become consistently run-rate profitable on an operating level sometime in the 2024 fiscal year."
RIWI CORP.
Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)
For the three months ended March 31, 2024 and 2023
(Unaudited and expressed in U.S. dollars)
| Three months ended | ||||||
| March 31 | ||||||
| 2024 | 2023 | |||||
| Revenues (Note 7) | $ | 1,135,847 | $ | 1,201,240 | ||
| Operating expenses | ||||||
| General and administrative (Note 8) | 388,754 | 579,566 | ||||
| Operations (Note 8) | 505,486 | - | ||||
| Technology costs (Note 8) | 106,718 | 499,530 | ||||
| Sales and marketing (Note 8) | 137,125 | 268,175 | ||||
| Total operating expenses | 1,138,083 | 1,347,271 | ||||
| Operating loss before other income | (2,236) | (146,031) | ||||
| Other income | ||||||
| Interest income | 29,323 | 19,495 | ||||
| Total other income | 29,323 | 19,495 | ||||
| Net income (loss) before income taxes | 27,087 | (126,536) | ||||
| Income tax expense | - | (1,408) | ||||
| Net income (loss) and comprehensive income (loss) for the year | $ | 27,087 | $ | (127,944) | ||
| Net income (loss) per share | ||||||
| Basic and diluted | $ | 0.00 | $ | (0.01) | ||
| Weighted average number of common shares outstanding | ||||||
| Basic | 18,004,428 | 18,004,428 | ||||
| Diluted | 18,381,591 | N/A | ||||
RIWI CORP.
Condensed Consolidated Interim Statements of Financial Position
As at March 31, 2024 and December 31, 2023
(Unaudited and expressed in U.S. dollars)
| March 31, 2024 | December 31, 2023 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents (Note 4) | $ | 2,738,317 | $ | 3,094,542 | ||
| Accounts receivable (Note 10(a)) | 988,411 | 637,894 | ||||
| Unbilled revenue (Note 7(b)) | 30,162 | 81,948 | ||||
| Contract costs | 30,227 | 43,182 | ||||
| Prepaid expenses and other assets | 110,018 | 53,571 | ||||
| Total current assets | 3,897,135 | 3,911,137 | ||||
| Property and equipment | 2,898 | 3,116 | ||||
| Intangible assets (Note 5) | 142,126 | 151,381 | ||||
| Total assets | $ | 4,042,159 | $ | 4,065,634 | ||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 452,106 | $ | 472,703 | ||
| Deferred revenue (Note 7(b)) | 840,477 | 902,884 | ||||
| Total liabilities | 1,292,583 | 1,375,587 | ||||
| Shareholders' equity | ||||||
| Share capital (Note 6) | 4,940,930 | 4,940,930 | ||||
| Contributed surplus (Note 6) | 2,865,579 | 2,833,137 | ||||
| Accumulated deficit | (5,056,933) | (5,084,020) | ||||
| Total shareholders' equity | 2,749,576 | 2,690,047 | ||||
| Total liabilities and shareholders' equity | $ | 4,042,159 | $ | 4,065,634 |
RIWI's audited Financial Statements and Management's Discussion and Analysis for the quarter ended March 31, 2024, are available via RIWI's website at https://riwi.com and on SEDAR at www.sedarplus.ca.
About RIWI
RIWI is a global trend-tracking and prediction technology firm. On a monthly or annual subscription basis, RIWI offers its clients tracking surveys, continuous risk monitoring, predictive analytics and ad effectiveness tests in all countries - without collecting any personally identifiable data. https://riwi.com.
RIWI CORP.
Signed: "Greg Wong"
Greg Wong, Chief Executive Officer
For more information, please contact investors@riwi.com or call 1-833-FOR-RIWI (367-7494)
Neither the 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.
CAUTION REGARDING FORWARD-LOOKING INFORMATION:
Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of Canadian securities legislation that involves risks and uncertainties. Forward-looking information included herein is made as of the date of this news release and RIWI does not intend, and does not assume any obligation, to update forward-looking information unless required by applicable securities laws. Forward-looking information relates to future events or future performance and reflects management of the Company's expectations or beliefs regarding future events. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/210115
SOURCE: RIWI Corp.
