Toronto, Ontario – (Newsfile Corp. – October 28, 2021) – Kuuhubb Inc. (TSX Venture Exchange: KUU) (“Kuuhubb“or the”Society“), a mobile game developer and publisher focused on providing female audiences with creative interactive gaming experiences, announced the release of its annual audited financial results for the fiscal year ended June 30, 2021. The results have been filed with the Canadian Securities Administrators and are now available on SEDAR.
Audited annual financial results for the year ended June 30, 2021
The Company generated total sales of US $ 5,294,662 for the fiscal year ended June 30, 2021.
The Company incurred cost of sales of US $ 2,189,716 for the year ended June 30, 2021. Cost of sales is primarily related to application market fees (such as Apple App Store and Google Play) and to other direct costs of third parties.
The Company incurred consulting and professional fees of US $ 903,014 for the year ended June 30, 2021. These fees were related to audit fees, general legal counsel and other professional services of Kuuhubb .
The Company’s EBITDA is negative at US $ 2,748,001 adjusting the net loss before income taxes of $ 5,012,518 with the following items:
Add to the back of:
non-cash depreciation and amortization of US $ 30,604;
non-cash stock-based compensation of US $ 451,563;
net interest and accretion costs of US $ 1,628,930;
change in the non-cash fair value of the loan receivable from Valiance UG of US $ 33,222
Foreign exchange loss of US $ 144,841
As of October 28, 2021, the Company had outstanding 66,658,043 common shares, 5,000,000 common share purchase warrants and 6,350,000 stock options.
The Company also has two convertible bonds with a par value of € 2,000,000 each. The Debentures may be converted into approximately 6,408,727 common shares upon conversion.
Classification of Recolor Oy held for sale and discontinued operations
The Company has not been able to finalize the sale of Company owned assets, such as the shares of Recolor Oy, during the past twelve months, after all management’s efforts. In addition, the recent restructuring of the Company’s main operating subsidiary also hinders the Company’s ability to continue with the divestiture. As a result, the associated assets and liabilities and net income of Recolor Oy, previously presented as held for sale and attributable as discontinued operations in the consolidated financial statements, have been reclassified to normal continuing operations.
Financial details and additional announcements (after year end):
After the fiscal year ended June 30, 2021, the Company received the following additional funding and made the following announcements.
The Company closed a private location on July 19, 2021 with two existing shareholders of the Company. The Company issued € 250,000 of 90-day debentures at 12% annual interest and 2,500,000 warrants with an exercise price of CA $ 0.10 and a two-year maturity.
Kuu Hubb Oy restructuring
In September 2021, Kuu Hubb Oy requested to initiate Finnish restructuring proceedings under the jurisdiction of the District Court in Helsinki, Finland. The process of restructuring the debt of Kuu Hubb Oy in accordance with the Finnish Company Restructuring Act (25.1.1993 / 47 “REA”) was initiated by a decision of the Helsinki District Court on September 7, 2021. The detailed restructuring plan is still underway. has yet to be finalized and approved by the court.
Message from the CEO
Jouni Keränen, CEO of Kuuhubb Inc., commented: “Fiscal year 2021 has been a difficult year for Kuuhubb. Kuuhubb’s Finnish subsidiary, Kuu Hubb Oy, lost its arbitration case in August 2020, causing tax pressure throughout the year and culminating in the restructuring process. from Kuu Hubb Oy in September 2021. This process has become a necessity to ensure that the company can continue to develop and launch its story-based Match-3 game engine and flagship game Tiles & Tales. At the same time, the planned divestiture of Recolor has become very difficult due to the ongoing FTC investigation, even with the resulting settlement in June 2021. Despite the difficulties, I am very proud of all of our employees. talented and hardworking people who have continued to operate and improve our products with the utmost dedication to deliver the best possible experience for our customers. This conviction is visible in the high quality of Recolor and Tiles & Tales and should ultimately lead us to take the leap and return to growth. I have no doubts that we will go through the restructuring process and emerge as a leaner and stronger company, with a focus on creating sustainable and high quality digital entertainment properties for global audiences. “
EBITDA – Non-IFRS measure
EBITDA is intended to provide additional information to investors and analysts. The Company has calculated EBITDA as indicated on page 2 of this press release. EBITDA does not have any standardized meaning prescribed by IFRS and should not be viewed in isolation or as a substitute for performance measures prepared in accordance with IFRS. Other companies may calculate EBITDA differently.
Kuuhubb is a publicly traded mobile game developer and publisher, targeting female audiences with tailored mobile experiences. Our mission is to become a leading player in the female mobile gaming space. We believe in empowering women by creating games and apps that will empower our female audience to relax, express themselves and be entertained every day. Through our games and our partnerships with select developers, we explore new lifestyle trends that can be turned into games and apps that will bring value to our users, employees and shareholders. Based in Helsinki, Finland, Kuuhubb targets a global audience with a strong focus on the US and Asian markets.
Caution regarding forward-looking information
This press release contains forward-looking information. All statements, other than statements of historical fact, that deal with activities, events or developments that the Company believes, expects or anticipates will occur or may occur in the future (including, without limit, statements relating to future income and developments, to the growth of the Company’s activities (business) are forward-looking information. This forward-looking information reflects the Company’s current expectations or beliefs based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties which may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, it there can be no assurance that they will have the expected consequences or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among others: risks related to the Company’s growth strategy; the possibility that the results of the Company’s growth plans may not be in line with the Company’s expectations; the early stage of the Company’s development; competition from firms in a number of industries; the ability of the Company to manage the expansion and integrate acquisitions into its activities, the future business development of the Company, including the ability to complete the sale of Recolor OY and the acquisition of Codecacao on economic terms or not at all ; the ability to predict and counter the effects of COVID-19 on the Company’s business, including, but not limited to, the effects of COVID-19 on its business segments, capital market conditions, restrictions on labor and international travel and supply chains; and other risks disclosed under the heading “Risk Factors” in the Company’s MD&A for the fiscal year ended June 30, 2020 filed on SEDAR at www.sedar.com. Forward-looking information is only valid as of the date on which it is provided and, except as required by applicable securities laws, the Company disclaims any intention or obligation to update any forward-looking information, whether to as a result of new information, events or future or other results. Although the Company believes that the assumptions inherent in forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and, therefore, one should not place undue reliance on such information due to the uncertainty inherent in such information. -this.
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.
For more information, please contact:
Jouni Keränen – CEO
Office: +358 40 590 0919
Office: +1 (416) 479-9547
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/101235