Logiq Reports Fiscal Year and Record Q4 2021 Financial Results
Logiq, Inc. (LGIQ) reported a 73.8% increase in FY21 gross profit, totaling $11.1 million on $37.3 million in revenue, with a gross margin of 29.6%. The Q4-21 revenue reached $13.1 million, doubling year-over-year. The company projects 2022 revenue growth of 30% YOY, aiming for $50-$75 million and profitability by early 2023. Recent acquisitions, including Battle Bridge, are expected to enhance earnings. However, FY21 revenues decreased 1.5% largely due to strategic shifts and pandemic impacts.
- FY21 gross profit up 73.8% to $11.1 million.
- Q4-21 revenue doubled YOY to $13.1 million.
- Projected 2022 revenue growth of 30%, targeting $50-$75 million.
- Completed synergistic acquisition of Battle Bridge, anticipated to boost earnings.
- FY21 revenues decreased 1.5% to $37.3 million.
- Net loss increased to $20.1 million in FY21 from $14.5 million in FY20.
- FY21 gross profit increased
73.8% YOY hitting$11.1 million on$37.3 million in revenue - FY21 gross margin percentage increased significantly to
29.6% versus16.8% a year ago - Record 4Q-21 revenue exceeds Company’s Jan. 6, projection by
$800,000 , doubling YOY to$13.1 million - Reorganized business focus demonstrated higher quality revenue streams and wider margins
- M&A pipeline of EBITDA accretive acquisitions seen as key catalyst of 2022 growth
- Company projects 2022 revenue up
30% YOY to$50 -$75 million , profitability in early 2023 - Closed Battle Bridge Deal – projected as synergistic and accretive to 2022 earnings
NEW YORK, April 01, 2022 (GLOBE NEWSWIRE) -- Logiq, Inc. (OTCQX: LGIQ, NEO: LGIQ), a global provider of award-winning digital consumer acquisition solutions, today announced its results for the fourth quarter and full year ended December 31, 2021.
Recent Highlights
- Completed the transfer of AppLogiq assets (rebranded as GoLogiq) into its majority owned public entity Lovarra (OTC: LOVA) to unlock the value of this dynamic, southeast Asia focused fintech; those shares’ spin-off to shareholders is slated to close in mid-2022
- Restructured senior management teams to facilitate both Logiq and GoLogiq execution, strategic initiatives and M&A
- Closed acquisition of Battle Bridge Labs companies, including Section 2383, LLC (collectively, “Battle Bridge”) assets, seen as synergistic and accretive to 2022 earnings
Financial Highlights
- Revenues for the full year 2021 were
$37.3 million , as the Company pivoted its new business development to higher margin customers. - FY 2021 gross profit increased
73.8% to$11.1 million for a29.6% gross margin. - Dec. 31, 2021, cash, cash equivalents and restricted cash totaled
$1.6 million . - Excluding AppLogiq, Logiq FY21 revenues rose
51.8% to$23 million .
Q4 2021 Operational Highlights
- Acquired
78.5% control position of Lovarra (OTC: LOVA), a fully reporting U.S. public company to enable LGIQ shareholders’ direct participation in AppLogiq’s growth - The Logiq Consumer Marketplace (LCM) advanced scoring system for customer acquisitions drove new customer program offering ramp-up. LCM serves several high-value customers and brands across a diverse range of industries
Closed Battle Bridge Acquisition
Yesterday, the Company announced it has completed the acquisition of certain assets of Battle Bridge Labs companies, including Section 2383, LLC (collectively “Battle Bridge”) a Tulsa, Oklahoma-based digital brand marketing agency, on schedule, previously announced February 17 as a binding LOI.
Logiq anticipates booking
The transaction brings Logiq incremental revenue and projected accretive earnings while synergistically increasing its competitive advantages, content creation resources and broadening its digital marketing expertise enabling both businesses to scale their assets and operations for accelerating growth.
Management Commentary
Despite the now-fading COVID-19 headwinds, Logiq reported a year of solid progress, financial performance and business achievements in 2021. The Company has focused its business on higher quality, more profitable revenue streams and, as a result, has already nearly doubled its Q4-21 gross margins year over year.
Logiq Chief Executive Officer, Brent Suen, commented, “While a little lumpy, our strong revenue growth and margin expansion achieved last year demonstrates our re-tooled business plan is succeeding, and it’s only the second inning. In 2021, we took several pivotal steps to reach far higher levels of growth and profitability by reinforcing and broadening our ad-tech and mar-tech digital platforms that are now capable of scaling to over
In pursuit of highly scalable, profitable business in the under-served southeast Asia marketplace, Logiq in 2021 reorganized and spun off its AppLogiq (GoLogiq) fintech business unit with a dedicated expert management team enabling it to more nimbly focus on higher-margin, larger-revenue opportunities. AppLogiq has applied to FINRA to change its name, and ticker symbol to reflect “GoLogiq.”
“Our solid 2021 performance confirms our strategy is succeeding, while the separation of Logiq and GoLogiq strengthens both companies’ ability to close strategic, accretive M&A targets in their fast-growing but highly fragmented industries,” Mr. Suen added. “Logiq’s acquisition pipeline, while always screening for accretive EBITDA, is specifically structured to boost competitive advantages, and provide out-sized customer base cross-selling and up-sell opportunities as a post-acquisition organic growth driver.
“The Battle Bridge acquisition exemplifies our accretive acquisition strategy to gain substantial revenue growth and margin expansion opportunities near and long term,” Mr. Suen said. “We are closely evaluating several well managed businesses with attractive valuations that offer the scale and expertise to synergistically drive our market penetration and shareholder value.”
“Looking ahead through 2022,” he concluded, “In addition to our growth initiatives, we are also actively planning to create and integrate our own NFTs to leverage our ad-tech and mar-tech platform and facilitate deploying industry influencers to boost those results and identify high buying-intent consumers.”
Although Logiq is still in the early stages of its growth phase, it forecasts its 2022 revenues will grow over
Q4 2021 Financial Highlights
Consolidated revenue increased
The Company’s AppLogiq mCommerce platform-as-a-service (PaaS) contributed
Consolidated gross profit increased
Total operating expenses increased
Q4-21 net loss was
FY 2021 Financial Highlights
Consolidated Logiq revenues decreased
Excluding the AppLogiq (GoLogiq) business, Logiq revenues increased
Gross profit increased
Total operating expenses increased
Net loss was
2022 Guidance
The Company projects annualized revenues for fiscal 2022 to be in the range of
Conference Call
Logiq management will host a conference call, followed by a question-and-answer period.
Date: Friday, April 1, 2022, Time: 10:30 a.m. Eastern time (7:30 a.m. Pacific time)
To access via web, webcast
https://viavid.webcasts.com/starthere.jsp?ei=1540927&tp_key=39132df408
To access by phone
Toll-free dial-in number: 1-800-289-0438
International dial-in number: 1-323-794-2423
Please call the conference telephone number 15 minutes prior to the start time. An operator will register your name and organization.
A replay of the call will be available after 1:30 p.m. Eastern time on the same day through Friday, April 15, 2022, as well as available for replay via the Investors section of the Logiq website at www.logiq.com/ir.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 5693282
About Logiq
Logiq Inc. is a U.S.-based leading global provider of e-commerce and digital customer acquisition solutions by simplifying digital advertising. It provides a data-driven, end-to-end marketing through its results solution or providing software to access data by activating campaigns across multiple channels.
Connect with Logiq: Website | LinkedIn | Twitter | Facebook
The Company’s Digital Marketing business includes a holistic, self-serve ad tech platform. Its proprietary data-driven, AI-powered solutions allows brands and agencies to advertise across thousands of the world’s leading digital and connected TV publishers.
Logiq’s Lovarra subsidiary, a fully reporting U.S. public company listed on the OTC Markets , recently acquired the Company’s AppLogiq assets. This includes CreateApp™, the award-winning software-as-as-service (SaaS) platform that enables small and medium-sized businesses worldwide to easily create and deploy a native mobile app for their business. AppLogiq also includes platforms for mobile payments and food delivery, and the licenses of its technologies to third parties. Logiq is planning a mid-2022 distribution of Lovarra to Logiq’s shareholders of record on December 30, 2021.
Important Cautions Regarding Forward Looking Statements
This press release contains certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the Safe Harbor created by those sections. This press release also contains forward‐looking statements and forward‐looking information within the meaning of Canadian securities legislation that relate to Logiq’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “will likely result”, “are expected to”, “expects”, “will continue”, “is anticipated”, “anticipates”, “believes”, “estimated”, “intends”, “plans”, “forecast”, “projection”, “strategy”, “objective” and “outlook”) are not historical facts and may be forward‐looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward‐looking statements. No assurance can be given that these expectations will prove to be correct and such forward‐looking statements included in this press release should not be unduly relied upon.
These statements speak only as of the date of this press release. Forward‐looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Logiq’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. In particular and without limitation, this press release contains forward‐looking statements regarding our products and services, the use and/or ongoing demand for our products and services, expectations regarding our revenue and the revenue generation potential of our products and services, our partnerships and strategic alliances, potential strategic transactions, the impact of global pandemics (including COVID-19) on the demand for our products and services, industry trends, overall market growth rates, our growth strategies, the continued growth of the addressable markets for our products and solutions, our business plans and strategies, and the valuation and success of the businesses after completion of the transaction, if any, and other risks described in the Company’s prior press releases and in its filings with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K and any subsequent public filings, and filings made pursuant to Canadian securities legislation that are available on www.sedar.com, including under the heading “Risk Factors” in the Company’s Canadian Prospectus.
Logiq undertakes no obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Logiq to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward‐looking statement. Any forward‐looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
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(financial tables follow)
Results of Operations for the Three Months ended December 31, 2021 and 2020
| For the three months ended | ||||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | Change | ||||||||||||||||||||||
| Revenue (service) | $ | 13,136,311 | 100.0 | % | $ | 6,583,634 | 100.0 | % | $ | 6,552,677 | 99.5 | % | ||||||||||||
| Cost of revenues (service) | 9,060,147 | 69.0 | 5,195,432 | 78.9 | 3,864,715 | 74.4 | ||||||||||||||||||
| Gross profit | 4,076,164 | 31.0 | 1,388,202 | 21.1 | 2,687,962 | 193.6 | ||||||||||||||||||
| Depreciation and amortization | 1,030,932 | 7.8 | 611,372 | 9.3 | 419,560 | 68.6 | ||||||||||||||||||
| General and administrative | 3,869,768 | 29.5 | 4,643,766 | 70.5 | (773,998 | ) | (16.7 | ) | ||||||||||||||||
| Sales and marketing | 1,098,004 | 8.4 | 726,662 | 11.0 | 371,342 | 51.1 | ||||||||||||||||||
| Research and development | 3,390,493 | 25.8 | 2,568,120 | 39.0 | 822,373 | 32.0 | ||||||||||||||||||
| Total operating expenses | 9,389,197 | 71.5 | 8,549,920 | 129.9 | 839,277 | 9.8 | ||||||||||||||||||
| (Loss) from operations | (5,313,033 | ) | (40.4 | ) | (7,161,718 | ) | (108.8 | ) | 1,848,685 | (25.8 | ) | |||||||||||||
| Other (Expenses)/Income, net | 18,478 | 0.14 | 19,235 | 0.29 | (757 | ) | (3.9 | ) | ||||||||||||||||
| Impairment loss on investment in associate | - | - | - | - | - | - | ||||||||||||||||||
| Net (Loss) before income tax | (5,294,555 | ) | (40.3 | ) | (7,142,483 | ) | (108.5 | ) | 1,847,928 | (25.9 | ) | |||||||||||||
| Income tax (expense) | (1,440 | ) | (0 | ) | - | - | (1,440 | ) | (0 | ) | ||||||||||||||
| Net (Loss) | (5,295,995 | ) | (40.3 | ) | (7,142,483 | ) | (108.5 | ) | 1,846,488 | (25.9 | ) | |||||||||||||
LOGIQ, INC.
Consolidated Statements of Operations
| For the years ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| (Audited) | (Audited) | |||||||
| Service Revenue | $ | 37,346,859 | $ | 37,910,393 | ||||
| Cost of Service | 26,290,203 | 31,546,948 | ||||||
| Gross Profit | 11,056,656 | 6,363,445 | ||||||
| Operating Expenses | ||||||||
| Depreciation and amortization | 3,782,136 | 1,966,045 | ||||||
| General and administrative | 18,166,721 | 10,994,815 | ||||||
| Sales and marketing | 2,296,483 | 1,423,909 | ||||||
| Research and development | 7,400,732 | 6,244,704 | ||||||
| Total Operating Expenses | 31,646,072 | 20,629,473 | ||||||
| (Loss) from Operations | (20,589,416 | ) | (14,266,028 | ) | ||||
| Other (Expenses)/Income, net | 474,510 | (243,641 | ) | |||||
| Net (Loss) before income tax | (20,114,906 | ) | (14,509,669 | ) | ||||
| Income tax (Corporate tax) | (11,881 | ) | - | |||||
| Net (Loss) | $ | (20,126,787 | ) | $ | (14,509,669 | ) | ||
| Net (Loss) per common share - basic and fully diluted: | (0.9499 | ) | (1.1444 | ) | ||||
| Weighted average number of basic and fully diluted common shares outstanding* | 21,187,556 | 12,678,904 | ||||||
* The weighted average number of shares of common stock has been retroactively restated to reflect the 1 for 13 reverse stock-split on February 25, 2020
LOGIQ, INC.
Consolidated Balance Sheets
| December 31 | December 31 | |||||||
| 2021 | 2020 | |||||||
| (Audited ) | (Audited) | |||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Intangible assets, net | 14,797,196 | 11,736,540 | ||||||
| Property and equipment, net | 153,973 | 178,561 | ||||||
| Goodwill | 5,577,926 | 5,078,090 | ||||||
| Total non-current assets | 20,529,095 | 16,993,191 | ||||||
| Current assets | ||||||||
| Amount due from associate | 7,208,700 | 5,673,700 | ||||||
| Accounts receivable | 3,966,086 | 2,618,494 | ||||||
| Right to use assets - operating lease | 91,571 | 364,234 | ||||||
| Prepayment, deposit and other receivables | 804,011 | 206,443 | ||||||
| Financial assets held for resale | 681 | 594,263 | ||||||
| Restricted cash | 22,513 | 10,889 | ||||||
| Cash and cash equivalents | 1,563,752 | 3,478,889 | ||||||
| Total current assets | 13,657,314 | 12,946,912 | ||||||
| Total assets | $ | 34,186,409 | $ | 29,940,103 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | 2,293,858 | 1,009,204 | ||||||
| Accruals and other payables | 1,804,131 | 1,110,732 | ||||||
| Deferred revenue | 10,500 | 46,857 | ||||||
| Lease liability - operating lease | 91,571 | 364,234 | ||||||
| Convertible promissory notes | - | 2,911,000 | ||||||
| Amount due to director | - | 77,500 | ||||||
| Deposits received for share to be issued | 401,028 | - | ||||||
| Total current liabilities | 4,601,088 | 5,519,527 | ||||||
| Non-Current Liabilities | ||||||||
| Other loan | 10,000 | 10,000 | ||||||
| Notes payable | - | 507,068 | ||||||
| Total non-current liabilities | 10,000 | 517,068 | ||||||
| Total liabilities | $ | 4,611,088 | $ | 6,036,595 | ||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock, issued and outstanding as of December 31, 2021 and December 31, 2020, respectively* | 2,635 | 1,556 | ||||||
| Additional paid-in capital | 82,473,004 | 66,739,895 | ||||||
| Capital reserves | 29,349,795 | 19,285,383 | ||||||
| Accumulated deficit brought forward | (82,250,113 | ) | (62,123,326 | ) | ||||
| Total stockholder’s equity | 29,575,321 | 23,903,508 | ||||||
| Total liabilities and stockholders’ equity | $ | 34,186,409 | $ | 29,940,103 | ||||
*The number of shares of common stock has been retroactively restated to reflect the 1 for 13 reverse stock-split on February 25, 2020.
FAQ
What was Logiq's (LGIQ) revenue for FY21?
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