Vancouver, Canada / October 30, 2023 / Perk Labs Inc. (CSE:PERK)(OTCPINK:PKLBF)(FKT:PKLB) (“Perk” or the “Company”) the innovative solutions company specializing in software development for apps, payments, and loyalty rewards, today announced financial results for the third quarter ended August 31, 2023.
For the third quarter of 2023, the Company continued business consolidation from its merger with Getit Technologies Inc. (“Getit”). As a result, the company has refocused and remodeled its efforts to focus on custom payment and ordering software for large enterprise clients with complex purchasing environments. This new focus has permitted the company to continue cost-cutting efforts, while launching and scaling with new large enterprise clients.
“The company has made significant headway post-merger. Our focus has been on managing cashflow, controlling costs and reducing expenses as we reposition to a focused B2B large enterprise model. This post-merger strategy and direction will show immediate growth for the company over the coming quarter and into the new fiscal year as we move away from third-party marketplaces to custom solutions for large brands with our powerful white-label technologies”, said Ryan Hardy, CEO of Perk Labs.
2023 Q3 Financial Highlights:
- Revenue of $51,976 for the 9 months ended August 31, 2023 (“year to date” or “YTD”) compared to $20,406 for the comparative period in 2022.
- General and administration expenses decreased for the nine months ended August 31, 2023, to $869,617 (August 31, 2022 – $940,605) due to reduced headcount in the Company’s efforts to preserve cash balances.
- Sales and marketing expenses decreased slightly for the nine months ended August 31, 2023, ended August 31, 2023, to $296,283 (August 31, 2022 – $309,053) as the Company decreased to $296,283 (August 31, 2022 – $309,053) as the Company decreased both marketing and sales costs to preserve cash balances.
- The Company’s comprehensive loss for the nine months ended August 31, 2023, was $1,435,905 compared to $2,818,243 for the nine months ended August 31, 2022.
2023 Q3 Operational Highlights
- Ottawa Dragon Boat Festival: Perk Labs’ subsidiary, Getit Technologies Inc., was selected as the official ordering and payments partner for the Tim Hortons Ottawa Dragon Boat Festival and BeaverTails Ottawa Ice Dragon Boat Festival in a three-year, multi-festival agreement. Getit will earn digital payment processing fees for food, beverages, and donation transactions as the designated ordering and payments partner. Additionally, Getit will actively contribute to the Ottawa Dragon Boat community by becoming an official sponsor, offering support beyond its role in ordering and payment technology for the festivals.
- Clocktower Group of Brewpubs: Getit Technologies was also selected as an ordering and payment technology provider by the Clocktower Group of Brewpubs, encompassing 5 locations across Ottawa, including Ottawa’s original craft brewery.
- Fiazza Fresh Fired: Fiazza Fresh Fired also selected Getit Technologies Inc. as its technology partner and has implemented Getit’s innovative web-based QR code ordering solution at four of its locations in Ottawa.
- Annual General Meeting: Perk Labs held its Annual General Meeting of Shareholders on July 5, 2023, and Kirk Herrington, Larry Timlick, Ryan Hardy, Ben Lacroix and Jonathan Hoyles were elected as directors of the Company. In accordance with the Company’s majority voting policy, Patrick Power was not elected and Mr. Power submitted his resignation to the Board.
- Resignation of Chief Legal Officer: Effective July 13, 2023, Jonathan Hoyles resigned as Perk Labs’ Chief Legal Officer and Director to pursue another opportunity. His departure from the Company was amicable.
Highlights Subsequent To August 31, 2023
- Private Placement: In September, the Company closed a non-brokered private placement of 1,312,500 Units at a price of $0.016 per Unit for gross proceeds of CAD$21,000. Each Unit consists of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one additional Common Share at a price of $0.05 per Common Share for a period of 24 months from the Closing.
- Debt Settlement Agreement: Additionally, in connection with the private placement, the Company entered into a Debt Settlement Agreement with an arms-length creditor (the “Creditor”) for the settlement of a total of CAD$20,000 debt in consulting and design services provided by the Creditor to the Company. In settlement and full satisfaction of the debt, the Company issued 1,250,000 Units to the Creditor.
- Private Placement of Convertible Debentures: Perk Labs also closed its non-brokered private placement of convertible debentures for gross proceeds of $450,000. The Debentures mature one year from the date of issuance and bear interest at a rate of 15% per annum, and are convertible into Common Shares at a conversion price of $0.05 per Common Share.
- Carleton University Student Association: In October, Perk Labs announced that the Carleton University Students’ Association (“CUSA”) selected Perk’s subsidiary Getit Technologies Inc. as their ordering and payment technology provider for the Carleton University campus and their student body. Carleton is an Ottawa university with more than 30,000 students, and 2,400 staff and faculty members. As part of the multiyear partnership, Getit will roll out their web-based QR code ordering solution for CUSA’s food outlets, and will be facilitating ticketing and registration for all events hosted by CUSA. It is expected that this contract will eventually be worth up to $100,000 in annual revenues to Perk Labs.
- Queen Street Fare: In October, Perk Labs announced that Queen Street Fare (“QSF”) selected Perk’s subsidiary Getit Technologies Inc. as their ordering and payment technology provider for their food and beverage vendors. QSF is Ottawa’s first food hall, featuring six eateries. As part of the partnership, Getit will be providing QR code digital ordering through a custom branded web-app that unifies all the properties offerings into an easy to navigate interface for their guests.
New Private Placements
Private Placement of Units
The Company is proposing a new non-brokered private placement for gross proceeds of up to $1,000,000. Units will be offered at a price of $0.01 per Unit. Each Unit will consist of one common share of the Company and one Common Share purchase warrant Each Warrant will entitle the holder to purchase one additional Common Share at a price of $0.05 per Common Share for a period of 24 months from the Closing.
Additionally, in connection with the Private Placement, the Company may enter into Debt Settlement Agreements with arms-length creditors for the settlement of a total of up to ~$250,000 debt in professional services provided by the creditors to the Company.
Private Placement of Convertible Debentures
The Company is also proposing a non-brokered private placement of convertible debentures for gross proceeds of up to $1,000,000. The convertible debentures will be offered for a 2-year term at an interest rate of 15% and will be convertible into common shares of Perk Labs at a conversion price of $0.05 per share, subject to the terms and conditions set forth in the convertible debenture agreement.
The private placements of the Units and the convertible debentures are expected to close on or before December 9, 2023 (the “Closing”) unless further extended. The Closing is subject to customary closing conditions, including, but not limited to, the receipt of all necessary approvals. All securities issued pursuant to the private placements will be subject to a statutory hold period of four months and one day following the Closing. A finder’s fee may be payable in connection with the Private Placements. The Company intends to use the net proceeds from the private placements for general working capital purposes, accounts payable, and employee salaries.
In the upcoming quarter, the Company expects to sign and launch a number of enterprise clients and roll out improvements and integrations between the Getit and Perk platforms. We believe that these developments, in conjunction with increased sales and marketing resources, will provide the required visibility to the Company’s operations that will enable growth.
The Company’s strategic priorities for the remaining year of 2023 include:
- A successful merger and business consolidation of the operations of Perk Hero Software Inc. and Getit Technologies Inc.
- Signing enterprise customers to use the Company’s technologies and services.
- Continued improvement of our products and offerings.
- Grow the number of end-user customers and businesses using our technologies and services.
- Grow our licensing and transactional revenue.
- Invest in sales, marketing, and communication strategies to drive growth.
Additionally, we are open to opportunities to expand our operations through mergers and acquisitions.
The Company’s complete financial results are available in its Consolidated Financial Statements and Management’s Discussion and Analysis for the quarter ended August 31, 2023, each filed with Canadian securities regulators at www.sedarplus.ca.
The operational and financial information in this release is based on the consolidated figures in accordance with International Financial Reporting Standard (IFRS).
About Perk Labs
Perk Labs, the owner of Getit Technologies Inc. and Perk Hero Software Inc, specializes in apps, payments, and loyalty rewards. Our technologies connect businesses and consumers through mobile apps and web-based payment services that streamline and optimize the consumer experience and merchant digitalization.
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Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking information or forward-looking statements (collectively “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: “may”, “believe”, “thinks”, “expect”, “exploring”, “expand”, “could”, “anticipate”, “intend”, “estimate”, “plan”, “pursue”, “potentially”, “projected”, “should”, “will” and similar expressions, or are those, which, by their nature, refer to future events. These forward-looking statements, which involve risks and uncertainties, relate to, among other things, the discussion of Perk Labs’ business strategies and its expectations concerning future operations, that the Company’s efforts will be reflected in much more positive results in our next quarter, that by focusing on signing new enterprise clients and leveraging the synergies of both Perk and Getit, the Company is well-positioned to achieve much greater success in the upcoming quarter; that by prioritizing enterprise sales and strategic partnerships, we are confident our efforts will result in improved results and generate significant value for our stakeholders; that the Company will sign enterprise clients; the continued improvement of our platform; that we will grow the number of end-user customers and businesses using our platform; that we will grow our licensing and transactional revenue; and that we will invest in sales, marketing, and communication strategies to drive growth. Although Perk Labs considers these forward-looking statements to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. For additional information with respect to these and other factors and assumptions underlying the forward-looking statements in this press release, see the section entitled “Risk Factors” in the most recent Annual Information Form and Prospectus of Perk Labs, which may be accessed through Perk Labs’ profile on SEDAR at www.sedarplus.ca. Perk Labs cautions investors that any forward-looking information provided by Perk Labs is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking statements. Undue reliance should not be placed on such forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.