Montreal, Quebec--(Newsfile Corp. - November 14, 2016) - Peak Positioning Technologies Inc. (CSE: PKK) ("Peak" or the "Company") today announced its consolidated financial results for the three-month and nine-month periods ended September 30, 2016.
Q3 Financial Results Summary (all figures in Canadian dollars):
Revenues of $25,887,092 for the period, compared to no revenues for the same period last year
$129,634 in gross profits
Elimination of $100,000 of debt through the issuance of shares as a result of debenture conversion
$90,025 of cash inflow as a result of the exercise of common share purchase warrants
Q3 Operating Results Summary:
Purchase order commitments worth over $600M through the end of 2017
Start of Asia Synergy Technologies (AST) operations in Shanghai
Official launch of Gold River fintech platform
First orders received through Gold River and first revenue-generating transactions by AST
Due to Chinese government invoicing rules for newly created entities operating in certain industrial sectors, to which AST is subject, approximately $5M of the $30M+ in revenues expected to be reported by AST for Q3 will have to be recognized in Q4 instead.
"This quarter marked the beginning of our operations in China and we're very pleased with how things are going so far", commented Johnson Joseph, President and CEO of Peak. "Although this is just the beginning and we deliberately limited our transactions so far to those with no financial services and on which our profit margins are only 0.5%, we've received incredibly positive feedback from Gold River's users and are now comfortable to begin processing some of the more profitable transactions. So, both revenues and profits are expected to ramp up next quarter and in the quarters to come", concluded Mr. Joseph.
Revenues through AST are expected to continue to increase through the balance of 2016 and throughout 2017 primarily due to a pipeline of contracted orders and some new orders expected to come in periodically over the next few months and quarters. The Company is forecasting Q4 revenues between $70M and $75M with gross margins between 1.00% and 1.25%, while 2017 revenues are expected to exceed $550M with EBITDA of 3.00% to 5.00%.
About Third Quarter Financial Results Summary:
The Company generated $25,887,092 of revenues in the third quarter ended September 30, 2016 compared to no revenues for September 30, 2015. On a cumulative basis, after nine months of operations ending September 30, 2016, $25,887,092 of revenues were generated compared to $36,400 for the same period last year.
Expenses for the third quarter amounted to $590,201 compared to $361,531 for the same period of 2015. On a cumulative basis the expenses for the nine-month period ended September 30, 2016 totaled $1 408 372 compared to $941,697 for the same period of 2015.
The net loss for the three-month and nine-month periods ending September 30, 2016 was $476,332 (September 30, 2015: $361,531) and $1,291,867(September 30, 2015: $905,297) respectively.
Full details of the Company's third quarter 2016 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, 2016 and 2015, which are available at www.sedar.com.
Conference Call to Discuss Third Quarter Financial Results
The Company will hold a 30 minute investor conference call to discuss the results of its consolidated financial statements for quarter. The call will be held on Thursday November 17, 2016 at 4:00pm EST. The call will begin with a 10 minute presentation by the Company's CEO, Johnson Joseph, followed by a 20 minute question and answer period. Investors are invited to submit their questions in advance to email@example.com or by using the form available on the Company's "Contact Us" page with the subject line "Q3 Conference Call". Questions will be accepted until 9:00pm EST Tuesday November 15, 2016. Those who would like to participate to the conference call can do so by dialing toll-free 1-855-453-6961 and enter the conference ID 4569772.
The Company also today announced that it had issued 300,000 shares on November 2, 2016 and 1,000,000 shares on November 4, 2016 as a result of the exercise of common share purchase warrants at $0.05 per share for total gross proceeds of $65,000.
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: https://www.peakpositioning.com
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Peak Positioning Technologies Inc.
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