VANCOUVER, British Columbia, Oct. 16, 2018 — Glance Technologies Inc. (CSE:GET / OTCQB:GLNNF / FKT:GJT) (“Glance” or the “Company”) today announced financial results for the third quarter ended August 31, 2018.
Our 3rd quarter saw a continued focus on developing some of the significant innovations we have announced such as an integration capability allowing us to connect to an estimated 500,000 different POS installations in North America (which is now complete), as well as our highly anticipated Glance PayMe application which is currently in beta. Glance PayMe will offer merchants an unparalleled suite of payment options including payments by photo, QR Code, Bluetooth, and digital invoices for remote payments, as well as Glance’s full suite of features, including powerful anti-fraud technology and a robust loyalty rewards program. We believe there is broad application for our unique Glance PayMe product in a variety of vertical markets and are excited about its potential.
We have continued to focus on improved spend efficiency which has resulted in our costs incurred from operating activities dropping from $4.9m in Q1 to $2.6m in Q3. We have continued to focus on spending efficiency and we expect some of the recent changes we have adopted to be reflected in future quarters. We note our working capital at the end of our third quarter was $8,314,000 (November 30, 2017: $10,355,000).
Q3 2018 compared to Q3 2017 – Financial Highlights:
(all figures are rounded to the nearest thousand)
- Revenue of $216,000 in Q3 2018, compared to $240,000 in Q3 2017. The current period includes licensing revenue of ($157,000) and marketing revenue ($30,000), in addition to application and service fees ($29,000). As anticipated, licensing revenues have fluctuated significantly in the last 3 quarters due to certain license agreements specifying larger initial payments, Fluctuations may continue in future quarters depending on the nature of any new agreements signed.
- Operating expenses were $3,074,000 compared to $1,804,000 in Q3 2017, reflecting the ramping up of the business over the past year.
- Software development costs were $910,000 compared to $125,000 in Q3 2017, reflecting the significant expansion of the development team and the Company’s move into the blockchain space.
- General and administrative costs were $604,000 compared to $108,000 in Q3 2017, reflecting the overall expansion of the Company and its office requirements.
- A notable expense change was corporate communication and investor media expenses, which were $239,000 compared to $917,000 in Q3 2017. This was a significant decrease from the $2,655,000 which was the cumulative amount spent in Q1 and Q2 2018, and was consistent with the Company’s previous indications that it intended to reduce expenditures in that category as it works to spread awareness more efficiently and effectively.
- Another notable expense item was proxy contest costs, which the Company does not expect to be a recurring expense as this expense was not in the normal course of business. Glance has gathered publicly available information and reported costs from other Canadian public companies that had proxy contests and completed an analysis of the proxy fees. The results show that, on average, the proxy contest cost in 2017 and 2016 for a Canadian public company was approximately $2 million. Glance’s total cost of its proxy contest was $1.45 million.
- Overall, the Company continues to work to improve expense efficiency in many categories and has made significant changes to better utilize its cash resources going forward. Costs incurred on operating activities were approximately $2.6 million in Q3 2018, compared to $3 million in Q2 2018 and $4.9 million in Q1 2018. This trend demonstrates that the Company continues to follow its policy of optimizing expenditures to maximize overall efficiency and effectiveness.
- Net loss was $3,055,000 or $(0.02) per share, compared to $1,725,000 or $(0.02) per share in Q3 2017.
- As at August 31, 2018, the Company had working capital of $8,314,000 compared to $10,355,000 at November 30, 2017) and no long-term debt ($nil at November 30, 2017).
Q3 2018 Highlights:
- Glance released its Glance Coin whitepaper which outlines its plans for a blockchain-based rewards platform utilizing smart contracts intended to enable merchants to reward, incentivize, and provide deals to their customers using a cryptocurrency token. These reward tokens are intended to allow users to accumulate rewards o spend where the user chooses within a larger decentralized platform.
- Glance Pay launched at the Rogue locations, who are part of the Steamworks Group of Companies.
- Glance entered into a cross-licensing and co-branding agreement with Brewhound Inc. to integrate Brewhound – The Happy Hour App, Vancouver’s premier Happy Hour platform, and the Glance Pay mobile payments solution.
- Glance and BIG Blockchain Intelligence Group Inc. (“BIG”), entered into a Strategic Alliance Agreement to establish a mutual referral and strategic marketing relationship.
- Alexander (Sascha) Williams was appointed as Chief Operating Officer of Glance.
- Jonathan Hoyles was appointed Chief Commercial Officer and General Counsel of Glance.
- Lewisa Anciano was appointed Chief People and Culture Officer of Glance.
Subsequent to the Quarter, the Company introduced new features built into its upcoming downloadable Glance PayMe™ application. The new features will allow merchants to accept payments from Glance Pay users via Quick Response (“QR”) Code, Bluetooth and Digital Invoice. These payment options will be offered in addition to Glance’s revolutionary payment by photo capability, which give merchants an unparalleled suite of payment options, as well as Glance’s full suite of features, including powerful anti-fraud technology and a robust loyalty rewards program.
In addition, Glance announced an upcoming new feature that will empower Glance Pay users to pay with Bitcoin. This new feature, Pay With Bitcoin, will enable Glance Pay users to pair their cryptocurrency wallet with their Glance Pay account, and then purchase Glance Dollars with Bitcoin. Glance Dollars represent a credit that can be spent instantly at participating merchants within the Glance Pay ecosystem.
The Company’s complete financial results for the third quarter of 2018 are available in its Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis, each of which have been filed with Canadian securities regulators at www.sedar.com.
Management intends to pursue a number of technology, product and marketing initiatives to continue to drive growth in 2018. The Company’s strategic priorities include:
- Grow monthly recurring revenue through a tiered “Software-as-a-Service” (SaaS) subscription model by adding new merchants and consumers, and generate new revenue from advertising, promotions and consumer fees for premium features;
- Launch a new downloadable merchant app Glance PayMe that enables merchants to quickly set up Glance Pay on their own devices and facilitates our migration towards a higher-volume digital sales model;
- Establish Glance as a leader in the blockchain space by developing innovative applications including Glance Coin:
- Leverage the Company’s superior anti-fraud technology to expand into online purchases, e-commerce and other markets;
- Expand into new vertical markets through both direct sales and joint efforts with our licensing partners;
- Continue Glance Pay’s expansion through the launch of our apps in several new markets.
The operational and financial information in this release is based on the consolidated figures in accordance with International Financial Reporting Standard (IFRS).
About Glance Technologies Inc.
Glance owns and operates Glance Pay, a streamlined payment system that revolutionizes how smartphone users choose where to shop, order goods and services, make payments, access digital receipts, redeem digital deals, earn great rewards & interact with merchants. Glance offers targeted in-app marketing, geo targeted digital coupons, customer feedback, in-merchant messaging and custom rewards programs. The Glance Pay mobile payment system consists of proprietary technology, which includes user apps available for free downloads in iOS (Apple) and Android formats, merchant manager apps, a large-scale technology hosting environment with sophisticated anti-fraud technology and lightning-fast payment processing. Glance is working on a rewards-based cryptocurrency, the whitepaper for which can be found on the company’s website.
For more information about Glance, please go to www.glance.tech.
For more information, contact:
|Paola Ashton||Laura Burke|
|VP Business Development||Chief Financial Officer|
|[email protected]||[email protected]|
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking information or forward-looking statements (collectively “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: “may”, “believe”, “thinks”, “expect”, “exploring”, “expand”, “could”, “anticipate”, “intend”, “estimate”, “plan”, “pursue”, “potentially”, “projected”, “should”, “will” and similar expressions, or are those, which, by their nature, refer to future events. These forward-looking statements, which involve risks and uncertainties, relate to, among other things, the discussion of Glance’s business strategies and its expectations concerning future operations (including advancing its technological roadmap), the expectation that Glance will grow its Glance Pay network, reduce its expenses in future quarters, growing monthly recurring revenue, launching a new downloadable merchant app, establishing Glance as a leader in blockchain space, furthering the development of the Glance Coin rewards token, building a rewards-based cryptocurrency platform using blockchain technology, leveraging Glance’s anti-fraud technology to expand into online purchases, e-commerce and other markets, continuing international expansion, improve its capacity for monetization, maintain a strong balance sheet, develop a software-as-a-service model, monetize its blockchain platform, expanding into new vertical markets, and broadening geographic footprint across more North American cities. Although Glance considers these forward-looking statements to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among other things, the risk that Glance is unable to continuously add new merchants as planned, the risks related to the development of Glance Coin and integration into the Glance Pay app, risks related to expansion, both internationally and in North America, risks related to unforeseeable expenses, and risks related to, the business of Glance’s licensing partners. The forward-looking information in this press release is also based on certain estimates, forecasts and projections, as well as expectations, beliefs and assumptions, including, among other things, that Glance will be able to achieve its business objectives, that Glance will be able to develop proprietary software to implement its plans, Glance will be successful in obtaining and retaining clients and licensees for its software, that the new downloadable merchant app will enable merchants to quickly set up Glance Pay on their own devices, the blockchain platform will continue to develop and grow in utilization and adoption in the world, and that Glance will be able to expand its operations successfully in new geographic markets and new industries. For additional information with respect to these and other factors and assumptions underlying the forward-looking statements in this press release, see the section entitled “Risk Factors” in the most recent Annual Information Form and Prospectus of Glance, which may be accessed through Glance’s profile on SEDAR at www.sedar.com. Glance cautions investors that any forward-looking information provided by Glance is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking statements. Undue reliance should not be placed on such forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.