RIWI Releases Q3 Financials

About this update from Riwi Corp.

Toronto, Ontario--(Newsfile Corp. - November 20, 2024) - RIWI Corp. (TSXV: RIWI) (OTC Pink: RWCRF) (the "Company" or "RIWI"), a market research platform, global trend-tracking and prediction technology firm, reported its financial results for the quarter ended September 30, 2024. All figures are reported in U.S. dollars unless otherwise indicated. RIWI's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). RIWI Highlights for the three months ended September 30, 2024 – in US Dollars: RIWI earned $1,059,034 in revenues in the third quarter of 2024 compared to $1,144,838 for the three months ended September 30, 2023, a decrease of 7.5%. The Company's revenue in the third quarter of 2024 consisted of $137,883 in transaction revenue, $410,999 in recurring revenue and $510,152 in project-based revenue. RIWI also recorded a net loss of $393,177 for the period as compared to a net profit of $14,288 for the comparable period in 2023. On October 10, 2024, RIWI announced the acquisition of TheoremReach, Inc. ("TheoremReach"), a leading survey monetization platform. This acquisition enhances the RIWI platform by providing both an API option or a self-service option for customers looking to gather access to global audiences. This acquisition will increase revenue in RIWI's transactional revenue segment. As communicated in the company's second quarter MD&A, the RIWI transactional revenue segment was significantly impacted by RIWI's implemented data quality measures and the Company's commitment to demonstrable high-quality data in order to win new clients in an industry increasingly sensitive to these requirements. This had a significant impact on revenue and profitability for RIWI as a whole. This revenue stream will continue to be impacted in the fourth quarter of 2024. This impact will be mitigated in the fourth quarter of 2024 and throughout 2025, however, as the RIWI transactional revenue solutions and the TheoremReach transactional revenue solutions become integrated which will improve both revenue and profitability on a go-forward basis. RIWI signed 43 new client contracts in the three months ended September 30, 2024, including contract signings with 17 new RIWI customers. RIWI continued to expand its capabilities by delivering its first implicit association projects and its first central location biometric projects for customers in the packaged goods and retail clothing industries. RIWI exhibited at the Society of Sensory Professionals annual conference showcasing the company's new Sensory solutions including its implicit solutions tailored specifically for food and beverage, fragrance and pharmaceutical companies. RIWI was recognized in several notable publications in the third quarter of 2024 including: an article in Plos One about Human rights advocacy and attitudes toward gender equality in Taliban-controlled Afghanistan, an article in ScienceDirect about SMEs, violence and crisis in Latin America, referenced in UNICEFs Peacebuild framework and in The Times of Israel on Quiet experts shaping the world. "This was a challenging quarter with the previously guided significant decline and resulting restructuring in our transactional business, the first full quarter drag on profitability from the CoolTool acquisition and a customer who filed for bankruptcy resulting in a significant writeoff," says Greg Wong, Chief Executive Officer of RIWI. "There is significant reason for optimism on a go-forward basis with the recent acquisition of TheoremReach, our best quarter of project-based revenue in over 12 months and several large new customers starting trials with RIWI. Investors should expect revenues in the fourth quarter of 2024 to be between $1.8 million and $2.1 million resulting in a minimum 98% growth over the fourth quarter of 2023." RIWI CORP. Condensed Consolidated Interim Statements of Loss and Comprehensive Loss For the three and nine months ended September 30, 2024 and 2023 (Unaudited and expressed in U.S. dollars) Three months ended Nine Months Ended September 30 September 30 2024 2023 2024 2023 Revenues (Note 8) $ 1,059,034 $ 1,144,838 $ 3,220,993 $ 3,274,493         Operating expenses         General and administrative (Note 9) 484,602 461,906 1,177,642 1,488,159 Operations (Note 9) 561,216 - 1,597,307 - Technology costs (Note 9) 148,834 479,265 364,749 1,361,012 Sales and marketing (Note 9) 191,429 214,095 508,149 718,735 Total operating expenses 1,386,081 1,155,266 3,647,847 3,567,906         Operating loss before other income (expense) (327,047 ) (10,428 ) (426,854 ) (293,413 )         Other income/(expense)         Interest income 21,490 23,553 73,110 66,427 Gain on asset disposal - - - 971 Other expenses (Note 9) (87,620 ) - (121,173 ) (37,228 ) Total other income/(expense) (66,130 ) 23,553 (48,063 ) 30,170 Net income/(loss) before income taxes (393,177 ) 13,125 (474,917 ) (263,243 )         Income tax recovery/(expense) - 1,163 - (12,601 ) Net income/(loss) and comprehensive income/(loss) for the period $ (393,177 ) $ 14,288 $ (474,917 ) $ (275,844 )                 Net loss per share         Basic $ (0.02 ) $ 0.00 $ (0.03 ) $ (0.02 ) Diluted N/A $ 0.00 N/A N/A         Weighted average number of common shares outstanding         Basic and dliuted 18,004,428 18,004,428 18,004,428 18,004,428   RIWI CORP. Condensed Consolidated Interim Statements of Financial Position As at September 30, 2024 and December 31, 2023 (Unaudited and expressed in U.S. dollars) September 30, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents (Note 5) $ 2,126,002 $ 3,094,542 Accounts receivable (Note 11(a)) 543,490 637,894 Unbilled revenue (Note 8(b)) 63,170 81,948 Contract costs 4,318 43,182 Prepaid expenses and other assets 134,372 53,571 Total current assets 2,871,352 3,911,137     Property and equipment 27,759 3,116 Intangible assets (Note 6) 557,712 151,381 Total assets $ 3,456,823 $ 4,065,634     Liabilities         Current liabilities     Accounts payable and accrued liabilities $ 404,501 $ 472,703 Contingent consideration liability (Note 4) 128,244 - Deferred revenue (Note 8(b)) 522,400 902,884 Total current liabilities 1,055,145 1,375,587 Long-term liabilities     Contingent consideration liability (Note 4) 64,274 - Total liabilities 1,119,419 1,375,587     Shareholders' equity         Share capital (Note 7) 4,940,930 4,940,930 Contributed surplus (Note 7) 2,955,410 2,833,137 Accumulated deficit (5,558,936 ) (5,084,020 ) Total shareholders' equity 2,337,404 2,690,047 Total liabilities and shareholders' equity $ 3,456,823 $ 4,065,634   RIWI's unaudited Financial Statements and Management's Discussion and Analysis for the quarter ended September 30, 2024, are available via RIWI's website at https://riwi.com and on SEDAR at www.sedar.com . About RIWI RIWI is a market research platform and global trend-tracking and prediction technology firm. On a monthly or annual subscription basis, RIWI offers its clients tracking surveys, continuous risk monitoring, predictive analytics and ad effectiveness tests in all countries. https://riwi.com RIWI CORP. Signed : "Greg Wong" Greg Wong, Chief Executive Officer For more information, please contact [email protected] or call 1-833-FOR-RIWI (367-7494) Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. CAUTION REGARDING FORWARD-LOOKING INFORMATION: Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of Canadian securities legislation that involves risks and uncertainties. Forward-looking information included herein is made as of the date of this news release and RIWI does not intend, and does not assume any obligation, to update forward-looking information unless required by applicable securities laws. Forward-looking information relates to future events or future performance and reflects management of the Company's expectations or beliefs regarding future events. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230777

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