Kuuhubb Reports 2020 Fiscal Year End Audited Annual Financial Results and Provides Corporate Update - Seite 2

As stated in our 2020 financial report, we are in ongoing, advanced discussions for the potential divestment of Recolor. Realizing Recolor’s future value now will allow us to invest in our next generation games. We strongly believe that our greatest opportunity for growth and long-term success lies in creating and operating games we develop ourselves using proprietary software such as our Match-3 engine combined with strategic alliances with strong partners adding not only financial strength, but industry specific expertise and synergistic benefits. Kuuhubb’s strengths – innovation, data driven approach and a unique talent pool in Helsinki, provide us the best possible path for scalable future growth and profitability.”

Audited Annual Financial Results for the Financial Year Ended June 30, 2020:

• The Company generated a total of US$7,803,832 revenues for the year ended June 30, 2020. Recolor Oy recognized revenue of US$6,795,445 for the year ended June 30, 2020 before it was classified as asset held for sale⁽¹⁾.
• The Company also recognized revenue of US$1,008,387 for the year ended June 30, 2020 from its continuing operations. This revenue was generated mainly from the subscriptions to, and in-application sale of virtual goods from its “My Hospital” game totaling US$0.79 million and advertising revenue of US$0.23 million.
• The Company incurred cost of sales of US$631,306 for the year ended June 30, 2020 in its continuing operations. 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$939,124 for the year ended June 30, 2020. These fees were related to Kuuhubb’s audit fees, general legal counsel and other professional services.
• The Company’s Recolor Oy showed EBITDA of US$538,655 by adjusting the net income before tax from discontinued operations of US$491,370 with the following items:
  
  Add back of:
  -  Non-cash depreciation and amortization of US$18,647;
  -  Net interest and accretion expenses of US$25,612;
  -  Foreign exchange loss of US$3,026
  
  
• The Company showed EBITDA of negative US$3,893,435 by adjusting the net loss before tax from continuing operations of US$6,274,846 with the following items:
  
  Add back of:
  -  Non-cash depreciation and amortization of US$812,812;
  -  Non-cash share-based compensation of US$860,870;
  -  Net interest and accretion expenses of US$984,279;