ARHT Media Announces Fourth Quarter and Full Year 2019 Financial Results

Covid-19 Disclosure

Fourth Quarter 2019 Highlights:

• Revenues increased 318% to $1.4 million
• Net loss significantly reduced by 67% to $347 thousand or $0.005 on a per share basis
• Fourth quarter results demonstrate growth and leverage in the current cost structure

Full Year 2019 Highlights:

• Revenues increased 105% to $3.3 million
• Net loss decreased 35.4% to $3.8 million or $0.06 on a per share basis

TORONTO, March 26, 2020 (GLOBE NEWSWIRE) -- ARHT Media Inc. (“ARHT” or “the Company”) (TSXV:ART), the global leader in the development, production and distribution of high quality hologram content through its patented Augmented Reality Holographic Telepresence technology, today announced its fourth quarter and full-year financial results for the period ended December 31, 2019.

The Company’s fourth quarter and full year 2018 comparative periods consists of only two months and eleven months, respectively, due to the change to calendar year-end reporting.

For the three-month period ended December 31, 2019, ARHT reported revenue of $1.4 million compared to $342,000 for the two months ended December 31, 2018. The 318% increase in revenues is due to increased sales and event activities with large global customers during the quarter. The Company successfully delivered 17 events and 6 equipment sales with subscription agreements in the healthcare, technology and financial services verticals. Revenue growth and cost management resulted in the Company reporting a 67% reduction in net loss totalling $347,000 or $0.005 per share, when compared to $1.1 million or $0.19 per share during the corresponding period in 2018.   

For the year ended December 31, 2019, the Company reported a 318% increase in revenue at $3.3 million and a net loss of $3.8 million or $0.06 per share versus revenue of $1.6 million and a net loss of $5.8 million, or $0.19 per share.  Annual expenses decreased by 0.5% even though revenue doubled, illustrating the operating leverage of the business plan. 

The Company strengthened its balance sheet during the fourth quarter by eliminating $927,000 of outstanding debt.

The COVID-19 pandemic, and the “social distancing” being practised to contain it, has resulted in events  in Q1 and Q2 being deferred, and in some cases cancelled.  In response, ARHT has enacted employee temporary layoffs and received concessions from landlords, to preserve capital.  As well, as announced on March 18, 2020, the Company launched its Virtual Global Stage product, where the audience participates on-line. Virtual Global Stage has generated a significant increase in inquiries for our services, however the timing of any related revenue is still unknown.  For further information you may reference the Risks and Uncertainties section of our Q4 and 2019 Management’s Discussion and Analysis that has been posted on Sedar at www.sedar.com.