Toronto, Ontario--(Newsfile Corp. - November 29, 2021) - 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-month period ended September 30, 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.
Revenues of US$1,001,934 for the three months period ended September 30, 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 Months Period Ended September 30, 2021:
The Company generated a total of US$1,001,934 revenues for the three months ended September 30, 2021.
The Company incurred cost of sales of US$384,776 for the three months ended September 30, 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 consulting and professional fees of US$821,248 for the three months ended September 30, 2021. These fees were related to Kuuhubb's audit fees, general legal counsel and other professional services.
The Company's EBITDA is negative US$487,973 by adjusting the net loss before income taxes of $972,051 with the following items:
Add back of:
non-cash depreciation and amortization of US$4,945;
non-cash share-based compensation of US$50,626;
net interest and accretion expenses of US$337,338;
Foreign exchange loss of US$91,169
As at November 29, 2021, 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 hindered 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 (Subsequent to Period End):
Restructuring of Kuuhubb 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.
To date, the detailed restructuring plan is still yet to be finalized and approved by the court.
Jouni Keränen, CEO of Kuuhubb Inc., commented, "The restructuring process of Kuuhubb Inc's Finnish subsidiary Kuuhubb Oy is progressing on schedule and the company is working with all relevant parties to achieve a favorable outcome, which is expected prior to Kuuhubb Inc's fiscal 2022 year-end. Our flagship game Tiles & Tales has reached acceptable KPI's in the user acquisition funnel and user retention, with current key focus on improving monetization. While Tiles & Tales is already commercially launched and available in key territories on both Apple and Android platforms, the company expects substantial marketing investments and revenue growth to occur in H1 2022 calendar year. Persistence and patience to continue fine-tuning a game is critical to commercial success and we will invest the required time and effort to maximize the long-term success and return on investment of all our games, and our flagship game Tiles & Tales in particular."
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.
Kuuhubb is a publicly listed mobile game development and publishing company, targeting the female audience with bespoke mobile experiences. Our Mission is to become a top player in the female mobile game space. We believe in empowering women by creating games and apps that will have our female 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, 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:
Jouni Keränen - CEO
Office: +358 40 590 0919
Office: +1 (416) 479-9547
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105750