ARHT Media Announces Q1 2020 Financial Results Pivots Business to Address Current Trends and Impact of COVID-19

First Quarter 2020 Highlights:

• Q1 revenues of $440k vs $794k YoY, decrease of 45%
• Q1 loss of $1,097k vs $885k YoY, increase of 24%
• Launch of high impact online offering, Virtual Global Stage (VGS)
• Company signs largest contract within pharma vertical for 2020 activation with global repeat client
• Company technology showcased to demonstrate benefits of 5G with executives of leading US telco
• Company adds permanent installations at a university in Singapore and museum in Eastern Europe
• Company cuts expenses by approximately 80% heading into Q2, remain bullish for Q3 and Q4 2020
• Macro trends position ARHT for significant long-term growth

TORONTO, May 13, 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 ARHT Engine software technology, today announced its first quarter results for the period ended March 31, 2020. For the three-month period ended March 31, 2020 ARHT reported revenue of $440,000 compared to $794,000 for the comparable period in 2019.  The reduction in revenue is wholly attributed to the delay and/or cancellation of activations due to the COVID-19 pandemic.  The Company successfully delivered six events and three equipment sales with subscription agreements in the healthcare, technology and education verticals.  The Company incurred a first quarter loss of $1,097k vs $885k (+24%), which is attributable to the reduction of revenue, the cost of operating our London studio and financing costs in Q1.  

Three Major Trends in 2020 and Their Impact on ARHT Media:

1. The COVID-19 pandemic has forced organizations to utilize technology to communicate with their teams and clients.  Especially larger organizations that may have been slower to adopt technology are realizing efficiencies and cost savings they did not think were possible while still getting the job done.
2. The move to online communication has created the need for a more impactful offering than standard streaming services that typically feature a screen full of talking heads – Virtual Global Stage delivers impact, intimacy, and better communication.
3. The primary theme at February’s World Economic Forum was the focus on sustainability and the reduction of carbon footprint.  ARHT Media’s technology reduces the need for airline travel and helps organizations realise these goals.

The COVID-19 Pivot:  Virtual Global Stage Online Offering & Major Expense Reductions