ARHT Media Announces Q2 2023 Operating Results

TORONTO, Aug. 24, 2023 (GLOBE NEWSWIRE) -- ARHT Media Inc. ("ARHT" or "the Company") (TSXV: ART), (OTCQB: ARHTF) 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 second quarter ended June 30, 2023.

Q2 2023 Financial Update

• Revenue for Q2 2023 was $2.1M compared to $2.0M for Q2 2022, a 3% increase. The increase reflects the company’s sales focus transition to fixed installations versus events, with the corresponding longer sales cycle, which is expected to positively impact the Company financials in the remaining quarters of 2023 and beyond.
• Q2 2023 Net loss of $2.1M vs $1.8M in Q2 2022 primarily due to increased headcount as the Company continues to invest for growth.
• LTM Revenue was $7.5M, an increase of 29% when compared to the prior twelve months reflecting continued positive momentum in the growth of the business.
• Cash as at June 30, 2023 was $0.5M as compared to $1.8M at March 31, 2023.

Q2 2023 Business Updates

• In April 2023, the Company signed a $500,000 contract with a leading global Fortune 50 client for the delivery of services and events throughout the month of June for several locations worldwide. Events included presentations by senior executives including the CEO who posted on social media on the ARHT Capsule display.
  
  
• In May 2023, The International Institute for Management Development (IMD) installed ARHT live hologram technology at its campuses in Lausanne, Switzerland, and Singapore to expand the scope and reach of its executive education programs while minimizing climate impact. IMD is considered a world leader in executive education.
  
  
• In May 2023, the Company partnered with Paramount+ to beam stars of the hit original series STAR TREK: STRANGE NEW WORLDS as live holograms using the company’s ARHT CAPSULE displays for an exclusive panel at MCM’s London Comic Con. Actors in both Los Angeles and New York appeared as a panel onstage in London and took questions from an in-person moderator as well as the live audience.
  
  
• In June 2023, EY CIO Jeff Wong, authored a white paper promoting the benefits of ARHT’s hologram technology to help reduce costs and make executives more efficient. In a LinkedIn post he was quoted “Beam In … Beam Out! Hologram technology is bringing the world closer together.”
  
  
• In June 2023, the Company entered an accounts receivable facility with Sallyport Commercial Finance ("Sallyport") for up to $2 million. Under the terms of the agreement signed with Sallyport, the Company can draw down up to $2 million based on its accounts receivable and inventory balances. This line of credit comes with a one-year term and an annual interest rate of approximately 14%.