Viscount Systems Inc., (“Viscount”) (OTCQB:VSYS), a software company specializing in physical and logical security solutions, today announced its fourth quarter and full year 2014 financial results for the period ending December 31, 2014.
“2014 was a stabilizing year for Viscount,” said Dennis Raefield, President and CEO of Viscount. “With the recent appointment of Ambassador Ned L. Siegel as Chairman of the Board of Directors, rising sales figures and a newly revamped commercial sales team, we’re well-positioned to capitalize on the market’s growing demand for a unified, highly-secure and cost-effective approach to physical access control.”
Fourth Quarter & Full Year 2014 Highlights:
- Sales of Viscount’s flagship product line, the Freedom Access Control Platform (Freedom), for the year ending December 31, 2014 were $1,606,114, as compared to $883,680 for the year ending December 31, 2013, representing a rise of 81.8%. The increase is due to the demand in the market for an IT-empowered physical access control system (PACS) that is both cost-effective to deploy and highly-secure against cybersecurity attacks.
- Sales for the year ending December 31, 2014 were $4,769,298, as compared to $4,134,886 for the year ending December 31, 2013, representing a rise of 15.3%. This growth is largely attributable to increased sales from the company’s Freedom Access Control Platform product line.
- In fiscal 2014 Viscount expanded its patent portfolio with a new patent covering the method for physical access control using QR codes and mobile devices. This is part of the company’s continued focus on protecting its investments in mobile technologies and cloud software applications to support its rapidly-growing Freedom platform.
- The company bolstered its commercial sales team to aggressively drive sales for its three product lines, Enterphone, Mesh and Freedom. Among these changes is the addition of Scott Sieracki as new Vice President of Sales, who has more than 20 years of experience driving business deals with key customers, partners, accounts, and industry influencers.
Sales for the years ended December 31, 2014 and 2013 were $4,769,298 and $4,134,886, respectively, an increase of $634,412 or 15.3%. Freedom sales for the years ended December 31, 2014 and 2013 were $1,606,114 and $883,680, respectively, an increase of $722,434 or 81.8%. MESH sales for the years ended December 31, 2014 and 2013 were $1,846,671 and $1,974,482, respectively, a decrease of $127,811 or 6.5%. Enterphone sales for the years ended December 31, 2014 and 2013 were $399,115 and $402,709, respectively, a decrease of $3,594 or 0.9%. Enterphone Sales and Service Division revenues for the years ended December 31, 2014 and 2013 were $1,316,513 and $1,276,724 respectively, an increase of $39,789 or 3.1%.
Gross profit for the years ended December 31, 2014 and 2013 was $2,307,921 and $2,392,609, respectively, a decrease of $84,688 or 3.5%. This decrease was due to an adjustment in obsolete inventory which reduced cost of sales in 2013. The gross margin percentage for the year ended December 31, 2014 for our product categories of MESH, Freedom, Enterphone Sales and Service Division was 33.8%, 68.5%, and 48.4% respectively. The gross margin percentage for the year ended December 31, 2013 for our product categories of MESH, Freedom, Enterphone Sales and Service Division was 47.7%, 80.2%, and 57.9% respectively.
Loss before other items for the year ended December 31, 2014 was $4,069,977 as compared to a loss before other items of $974,515 for the year ended December 31, 2013, an increased loss of $3,095,462. Included in the net loss for the year ended December 31, 2014 was a non-cash compensation expense of $1,519,950 for the issuance by Viscount of warrants and stock options to board members, management and staff.
Mr. Raefield will hold a conference call to review these results and provide a corporate update on Thursday, March 26, 2015 at 1:15 PM PST (4:15 PM EST), after the close of the U.S. financial markets.
Join the meeting by following the procedures below.
1. Please join the meeting by clicking on the following link: https://attendee.gotowebinar.com/register/9023284375628762626
2. Join the conference call.
- Canada (Long distance): +1 (647) 497-9368
- United States: +1(609) 318-0024
3. Access Code: 168-967-191
4. Audio PIN: Shown after joining the session
Should you have questions during the event please send an email to questions@viscount.com.
About Viscount
Viscount is the
leading provider of next generation, IT-centric access control and
identity management applications. Viscount’s Freedom application
platform allows seamless unification of the physical and digital
security worlds by replacing discrete, self-contained systems with an
integrated security system that is sophisticated enough to protect
today’s critical business assets, and flexible enough to keep up with
the evolving IT infrastructures of government and private organizations.
For more information please visit: www.viscount.com
Safe Harbor Statement
Forward
looking statements: This press release and other statements by Viscount
Systems Inc. may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act with respect to the
outlook for earnings and revenues, other future financial or business
performance, strategies and expectations. Forward-looking statements are
typically identified by words or phrases such as "believe," "expect,"
"estimate," "position," "assume," "potential," "outlook," "continue,"
"remain," "maintain," and similar expressions, or future or conditional
verbs such as "will," "would," "should," "could," or similar expressions.
Contact
Thomas Mei / Allison
Monat
viscount@kcsa.com
212-682-6300
| VISCOUNT SYSTEMS, INC. | ||||||||
| Consolidated Statements of Operations and Comprehensive Loss | ||||||||
| (Expressed in Canadian dollars) | ||||||||
| Years Ended December 31, 2014 and 2013 | ||||||||
| 2014 | 2013 | |||||||
| Sales | $ | 4,769,298 | $ | 4,134,886 | ||||
| Cost of sales | 2,461,377 | 1,742,277 | ||||||
| Gross profit | 2,307,921 | 2,392,609 | ||||||
| Expenses | ||||||||
| Selling, general and administrative | 5,624,312 | 3,064,786 | ||||||
| Research and development | 703,288 | 278,514 | ||||||
| Depreciation and amortization | 50,298 | 23,825 | ||||||
| 6,377,898 | 3,367,125 | |||||||
| Loss before other items | (4,069,977) | (974,516) | ||||||
| Other items | ||||||||
| Interest income | 3,786 | 322 | ||||||
| Preferred share dividends | (84,762) | (113,647) | ||||||
| Fair value adjustment of derivative liabilities | 3,160,272 | (1,992,659) | ||||||
| 3,079,296 | (2,105,984) | |||||||
| Net loss and comprehensive loss | $ | (990,681) | $ | (3,080,500) | ||||
| Basic and diluted loss per common share | $ | (0.01) | $ | (0.03) | ||||
| Weighted average number of common shares outstanding, | ||||||||
| Basic and diluted | 119,454,239 | 91,969,573 | ||||||
| VISCOUNT SYSTEMS, INC. | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (Expressed in Canadian dollars) | ||||||||||
| As at December 31, 2014 and 2013 | ||||||||||
| 2014 | 2013 | |||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 190,308 | $ | 172,684 | ||||||
| Trade accounts receivable, less allowance for doubtful accounts | ||||||||||
| of $181,529 (2013 - $250,458) | 661,629 | 585,153 | ||||||||
| Inventory | 533,217 | 532,798 | ||||||||
| Total current assets | 1,385,154 | 1,290,635 | ||||||||
| Deposits | 1,391 | 1,391 | ||||||||
| Equipment | 206,004 | 22,229 | ||||||||
| Intangible assets | 5,224 | 26,116 | ||||||||
| Total assets | $ | 1,597,773 | $ | 1,340,371 | ||||||
| . | ||||||||||
| Liabilities and stockholders' deficit | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 362,595 | $ | 254,682 | ||||||
| Accrued liabilities | 564,466 | 601,270 | ||||||||
| Lease obligation - current | 10,285 | - | ||||||||
| Deferred revenue | 37,318 | 37,543 | ||||||||
| Due to related parties | 5,003 | 33,727 | ||||||||
| Loans payable | 114,536 | 114,536 | ||||||||
| Total current liabilities | 1,094,203 | 1,041,758 | ||||||||
| Lease obligation - long term | 17,182 | - | ||||||||
| Derivative financial liabilities | 2,858,618 | 5,118,454 | ||||||||
| 3,970,003 | 6,160,212 | |||||||||
| Stockholders' deficit | ||||||||||
| Capital stock | ||||||||||
| Authorized: | ||||||||||
| 300,000,000 common shares with a par value of US$0.001 per share | ||||||||||
| 20,000,000 preferred shares with a par value of US$0.001 per share | ||||||||||
| Issued and outstanding: | ||||||||||
| 126,009,581 common shares (2013 - 97,075,003) | 148,787 | 119,853 | ||||||||
| 1,072 preferred shares (2013 - 1,115) | - | - | ||||||||
| Additional paid-in capital | 10,140,519 | 6,731,161 | ||||||||
| Accumulated deficit | (12,661,536) | (11,670,855) | ||||||||
| Total stockholders' deficit | (2,372,230) | (4,819,841) | ||||||||
| Total liabilities and stockholders' deficit | $ | 1,597,773 | $ | 1,340,371 | ||||||