Peeks Social (TSXV:PEEK) has announced an update on the performance of its Peek product and started on the Financial Statements and Management’s discussion and analysis for the year ended February 28, 2017.
As quoted in the press release:
Certain information provided below is extracted from these documents and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information.
The Peeks product was launched in November 2016. The Company reported licensing revenue derived from the Peeks product of $52,584 for the year ended February 28, 2017, which is provided by month to the end of February 2017 in the attached image. In addition, the Company routinely monitors certain Key Performance Indicators (“KPIs”) that it has identified as important in understanding the performance of the Peeks product, which are also provided by month, to the end of May 2017, in the attached image.
Q4 2017 Licensing Revenue
Licensing revenue earned from the Peeks app in Q4 2017, the three months ended February 28, 2017, was $49,150, compared to advertising revenue earned by the legacy Keek products (now retired) of $36,944 for the three months ended February 29, 2016. An important distinction is that by February 28, 2017, the Peeks product had only been operational for a period of four months, and as such this revenue was earned over approximately 3 million user sessions in Q4 2017. By comparison, by February 29, 2016, the legacy Keek product had been operational for approximately five years, and had approximately 15 million user sessions in Q4 2016 and nearly 200 million user sessions a month at its peak levels historically, prior to 2016.
Q4 2017 Net Loss
The net loss for the fourth quarter ended February 28, 2017, was $1,518,035, as compared to $1,780,096 for the fourth quarter ended February 29, 2016. The net loss for Q4 2017 was significantly contributed to by non-cash stock based compensation expense in the amount of $903,147, as compared to stock based compensation expense of $106,569 for Q4 2016. Stock based compensation expense relates to stock options issued pursuant to the Company’s Stock Option Plan. After considering items not affecting cash, net loss for Q4 2017 and Q4 2016 was $773,853 and $1,630,001, respectively, a decrease of $856,148. A list of items not affecting cash which are included in net loss can be found on the Consolidated Statements of Cash Flows included in the Financial Statements for the year ending February 28, 2017, and discussed in the MD&A.
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