Logiq Reports Third Quarter 2022 Financial Results
Logiq, Inc. (OTCQX: LGIQ) reported financial results for Q3 2022, revealing consolidated revenue of $4.1 million, a decrease from $7.8 million year-over-year. Operating income fell to $4.1 million, while the DataLogiq segment generated $3.8 million, up sequentially but down from $5.0 million a year ago. The company continues to project a revenue run-rate of $40 million to $50 million for 2022 and anticipates scaling its operations with a strong customer pipeline. Logiq's CEO expressed confidence in future growth driven by strategic M&A and regulatory expertise in high-value markets.
- Record new customer sales contract worth $2 million to $3 million monthly.
- Revenue run-rate guidance reiterated at $40 million to $50 million for 2022.
- Expansion into regulated vertical markets expected to drive growth.
- Consolidated operating loss of $7.7 million compared to $5.77 million last year.
- DataLogiq segment revenue declined from $5.0 million to $3.8 million year-over-year.
- Quarterly net loss increased to $7.1 million from $5.77 million in the previous year.
- Company to host its Q3 2022 earnings call on Tuesday, November 15 at 10:30 ET
- Logiq delivers strong sales traction with a recent record, large new customer in a high-value industry, and expects one or more similar new customers by year end
- Company reiterates its revenue run-rate guidance of
$40 million to$50 million for exiting 2022
NEW YORK, Nov. 15, 2022 (GLOBE NEWSWIRE) -- Logiq, Inc. (OTCQX: LGIQ), a provider of digital consumer acquisition solutions, today posted its financial results for the period ended September 30, 2022 and provided its outlook for the full year 2022. The third quarter’s consolidated revenue includes
Q3-22 Financial Highlights
- Consolidated operating income for the quarter was
$4.1 million vs.$7.8 million a year ago, and includes$334,987 from GoLogiq - Revenue for the Company’s wholly owned DataLogiq (DLQ) operating segment was
$3.8 million , an increase from$3.3 million sequentially and a decrease from$5.0 million in the prior year quarter - DLQ gross margin rose to
30.6% compared with28.2% in Q3-21 - DLQ quarterly net loss was
$7.1 million , compared with a net loss of$5.77 million in the year-ago quarter - Consolidated operating loss was
$7.7 million vs$5.77 million a year ago - Full details of the Company’s quarterly financials are available at no cost at www.sec.gov
Operating Highlights
Commenting on the Company’s recent results, Logiq CEO Brent Suen, said, “Our November 8th announcement of our largest new customer sales contract ever – at
“This contract stemmed from our acquisition of Battle Bridge earlier this year, and we continue to see strategically executed M&A as a key driver of growth accelerating into 2023,” Mr. Suen added. “We expect to exit 2022 north of a
The Company’s new business pipeline include customers within an industry in which product marketing and advertising is highly regulated and requires an advanced AdTech compliance expertise. The recent contract demonstrates Logiq’s success executing on its previously announced directional change towards higher margin and regulated vertical markets such as cannabis, eSports, gambling, and crypto.
Looking ahead, Logiq expects to close on its previously announced SPAC transaction with Abri SPAC I, Inc. (Abri), in the first quarter of 2023 (Abri Nov. 3rd filed its requisite report on Form S-4 with the SEC). Accordingly, the Company anticipates being a newly Nasdaq-listed company with a presumed cash infusion that will accelerate its M&A activity. Logiq is currently in advanced discussions for more than one business combination to broaden its services offering, expand its client base, add accretive cash flow and executive talent.
To improve operating margins, and consistent with its disciplined approach to streamline financial and operational management, Logiq is shrinking its lowest-margin, smallest-account client base through attrition as it focuses its resources on serving and building its increasingly larger and higher margin client base.
Additionally, in September the Company announced it had expanded into the home improvement vertical market via both the residential and commercial EV charger installation market as well as the roofing market – deploying its on-demand digital marketing platform system which provides Logiq clients efficient, enhanced service. Logiq remains opportunistic to capture market share of attractive verticals.
Reiterating 2022 Guidance
The Company reiterates its annualized revenue run-rate projection for 2022 in the range of
The Company will host an investor teleconference today, Tuesday, November 15 at 10:30 Eastern to discuss its third quarter report; details are provided below.
Conference Call
Event: Logiq Reports Third Quarter of 2022 Financial Results Conference Call
Date: November 15th, 2022, 10:30 a.m. Eastern Time (7:30 a.m. Pacific Time)
Audio Access Link: https://us06web.zoom.us/j/83528915312?pwd=cG5xeXJMYlNSMGl2SmRTRHNmWmMvUT09
Meeting ID: 835 2891 5312
Passcode: 274593
Dial in: +1 646 931 3860 US
US one-tap mobile dial-in: +16469313860,,83528915312#,,,,*274593#
Following the Company’s prepared remarks, management will host a question-and-answer session. Investors can begin accessing the webcast 5 minutes before the call.
A replay of the call will be available after the live call via the Investors section of the Logiq website at www.logiq.com/ir .
(financial tables follow)
| LOGIQ, INC. Consolidated Balance Sheets | ||||||||
| September 30 | December 31 | |||||||
| 2022 | 2021 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Intangible assets, net | 11,752,801 | 14,797,196 | ||||||
| Property and equipment, net | 114,832 | 153,973 | ||||||
| Goodwill | 5,577,926 | 5,577,926 | ||||||
| Total non-current assets | 17,445,559 | 20,529,095 | ||||||
| Current assets | ||||||||
| Amount due from associate | - | 7,208,700 | ||||||
| Accounts receivable | 2,955,949 | 3,966,086 | ||||||
| Right to use assets - operating lease | 52,217 | 91,571 | ||||||
| Prepayment, deposit and other receivables | 704,583 | 804,011 | ||||||
| Financial assets held for resale | - | 681 | ||||||
| Restricted cash | 20,004 | 22,513 | ||||||
| Cash and cash equivalents | 368,274 | 1,563,752 | ||||||
| Total current assets | 4,101,027 | 13,657,314 | ||||||
| Total assets | $ | 21,546,586 | $ | 34,186,409 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | 3,782,823 | 2,293,858 | ||||||
| Accruals and other payables | 3,290,613 | 1,804,131 | ||||||
| Deferred revenue | 705 | 10,500 | ||||||
| Lease liability - operating lease | 52,217 | 91,571 | ||||||
| Deposits received for share to be issued | 188,250 | 401,028 | ||||||
| Total current liabilities | 7,314,608 | 4,601,088 | ||||||
| Non-Current Liabilities | ||||||||
| Other loan | 10,000 | 10,000 | ||||||
| Total non-current liabilities | 10,000 | 10,000 | ||||||
| Total liabilities | $ | 7,324,608 | $ | 4,611,088 | ||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock, | 3,685 | 2,635 | ||||||
| Additional paid-in capital | 89,592,945 | 82,473,004 | ||||||
| Capital reserves | 25,011,625 | 29,349,795 | ||||||
| Accumulated deficit brought forward | (100,386,277 | ) | (82,250,113 | ) | ||||
| Total stockholder's equity | 14,221,978 | 29,575,321 | ||||||
| Total liabilities and stockholders' equity | $ | 21,546,586 | $ | 34,186,409 | ||||
| LOGIQ, INC. Consolidated Statements of Operations | ||||||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Service Revenue | $ | 4,100,373 | $ | 7,826,249 | $ | 17,155,733 | $ | 24,210,548 | ||||||||
| Cost of Service | 2,792,499 | 5,520,862 | 11,823,582 | 17,230,056 | ||||||||||||
| Gross Profit | 1,307,874 | 2,305,387 | 5,332,151 | 6,980,492 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Depreciation and amortization | 1,021,676 | 1,030,932 | 3,083,536 | 2,751,208 | ||||||||||||
| General and administrative | 7,265,372 | 5,159,813 | 16,504,135 | 14,296,952 | ||||||||||||
| Sales and marketing | 394,628 | 477,226 | 1,266,029 | 1,198,479 | ||||||||||||
| Research and development | 321,000 | 1,447,567 | 2,617,178 | 4,010,239 | ||||||||||||
| Total Operating Expenses | 9,002,676 | 8,115,538 | 23,470,878 | 22,256,878 | ||||||||||||
| (Loss) from Operations | (7,694,802 | ) | (5,810,151 | ) | (18,138,727 | ) | (15,276,386 | ) | ||||||||
| Other (Expenses)/Income, net | 3 | 36,740 | 2,563 | 456,032 | ||||||||||||
| Net (Loss) before income tax | (7,694,799 | ) | (5,773,411 | ) | (18,136,164 | ) | (14,820,354 | ) | ||||||||
| Income tax (Corporate tax) | - | - | - | (10,441 | ) | |||||||||||
| Net (Loss) | $ | (7,694,799 | ) | $ | (5,773,411 | ) | $ | (18,136,164 | ) | $ | (14,830,795 | ) | ||||
| Net (Loss) profit per common share - basic and fully diluted: | (0.2221 | ) | (0.2471 | ) | (0.5808 | ) | (0.7623 | ) | ||||||||
| Weighted average number of basic and fully diluted common shares outstanding | 34,645,067 | 23,365,486 | 31,241,330 | 19,455,335 | ||||||||||||
About Logiq
Logiq Inc. is a U.S.-based 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.
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 ability to consummate the SPAC transaction with Abri, 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.
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.
Media & Investor Contact
ir@logiq.com
FAQ
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