Montreal, Quebec--(Newsfile Corp. - May 29, 2017) - Peak Positioning Technologies Inc. (CSE: PKK) ("Peak" or the "Company") today announced its financial results and reviewed highlights for the first quarter ended March 31, 2017. All amounts expressed are in Canadian dollars.
- Total Revenues of $7.3M
- Closing of $230K in private placement financing
- $269K contributed to working capital as a result of exercise of share purchase warrants
- Elimination of $144,122 worth of debt through exercise of conversion feature of debentures
- Net loss of $661K
- Signing of agreement with Cubeler Inc. for exclusive Chinese commercial right to Cubeler fintech platform
- Adjustment in Chinese business model to have new financial services subsidiary provide financial services on Gold River and Cubeler platforms
- Creation of new Chinese operating subsidiary Asia Synergy Data Solutions ("ASDS")
About First Quarter Financial Results Summary:
The Company sees the first quarter of 2017 as a transitional quarter from a revenue standpoint. The revenues generated during the quarter were all generated by a single subsidiary, Asia Synergy Technologies ("AST"), which only engage in the selling of raw materials on the Company's Gold River fintech platform during that period. Under the Company's revised revenue model, and following this transitional phase, additional revenue streams for AST and other subsidiaries are expected to be generated in the form of a combination of referral fees, service fees and interest earned on loans and purchase order financing services provided on both the Gold River and the Cubeler platforms. But during the quarter, given that AST was the Company's sole operating subsidiary and the Company's financial services subsidiary was not yet created, the Company's revenues were limited to AST's revenues and those revenues did not include a referral fee component. AST is expected to earn a referral fee on purchase order transactions requiring financial assistance, which the Company has decided to postpone until its financial services subsidiary has been created and is able to provide those services. Such transactions are expected to provide AST with better transaction margins when factoring in that referral fee component. So the relatively low gross margins realised by AST on the reported revenues can be attributed to the fact that transactions on which AST would normally be expected to earn referral fees were not processed in the first quarter of 2017.
In summary, the Company generated revenues of $7,324,999 for the quarter ended March 31, 2017 compared to not having generated any revenues for the same period in 2016. Expenses for the quarter amounted to $7,986,122, compared to $309,144 for the same period in 2016. The increase in expenses is mainly due to the cost of the materials sold to generate the revenues.
The net loss for the the three month period ending March 31, 2017 was $661,123 compared to $309,144 for the same period of 2016.
Full details of the Company's 2017 financial results can be found in the Interim Unaudited Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) for the three-month periods ended March 31, 2017 and 2016, which are available at www.sedar.com.
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
CHF Investor Relations
Phone: 416-868-1079 ext.: 231
President and CEO
Peak Positioning Technologies Inc.
Phone: 514-340-7775 ext.: 501