NEWS
ARHT Media Announces First Quarter 2021 Results
May 13 2021 - 01:30PM
GlobeNewswire Inc.
ARHT Media Inc. (“ARHT” or “the Company”) (TSXV:ART), the global leader in the development, production and distribution of high-quality, low latency hologram and digital content, today announced its financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Financial Update
Revenues for the first quarter of 2021 were $1.17 million, compared to $440 thousand in the first quarter of 2020, +165% year-over-year;
Cash and cash equivalents were $7.25 million as of March 31, 2021;
Net loss for the first quarter of 2021 was $750 thousand, compared to $1.10 million for the same period in 2020, loss reduced by 32% year-over-year;
First Quarter 2021 & Subsequent Business Highlights
The Company completed an equity offering for $7.98 million; the proceeds of which are being used to invest in growing revenue through additional sales staff and a significant investment in marketing, and infrastructure to deliver increased volume of business including; VP Business Development to manage the WeWork relationship, Director Supply Chain Management, Senior Producer, Project Manager and a Sales and Marketing Coordinator. Proceeds will also be used to expand the Company’s patent portfolio;
The Company entered into a strategic partnership with WeWork on May 10, 2021, to develop the only large scale HoloPresence™ network in the world. ARHT will integrate its holographic technology with WeWork’s global events offering to offer clients engaging virtual meetings and events; first phase includes installation of ARHT HoloPresence™ Solutions in 16 WeWork locations, with the potential for up to 100 office installations globally. This transformational deal will make ARHT technology readily available to enterprise organizations, will reduce the cost of delivery and is expected to deliver significant revenue to the Company in 2022 and beyond;
The Company announced its planned early retirement of 2020 Series A Debentures resulting in interest savings of approximately $80,000.
Q1 revenues featured almost equal weighting from permanent installations featuring HoloPod, HoloPresence and Capture technology, Virtual Global Stage (VGS) online activations and hybrid in person and online events.
“ARHT Media delivered strong first quarter results with year-over-year revenue growth of 165% and an improved margin profile, which was driven by increased demand for our holographic technologies across an expanding base of markets, customers, and regions,” commented Larry O’Reilly, Chief Executive Officer of ARHT Media. “During the quarter, we strengthened our balance sheet through the completion of a $7.98 million equity offering. This capital raise also allowed us to focus on executing on our growth strategy and to capitalize on a transformational partnership agreement with the leading global flexible office space provider, WeWork. We view this partnership as a game changing opportunity as we introduce our holographic technology to a new enterprise audience of over 3,500 WeWork members worldwide, make it more convenient for both existing and new clients to access our technology and as a means to drive significant revenue growth as the world’s first large scale HoloPresence network gets rolled out and we are extremely pleased with talent we have added to grow our business.”
