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
For more information, please contact investors@riwi.com 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.
