ACCESS Newswire

Perk Labs Inc.

Share
Perk Labs Reports Second Quarter 2021 Results

This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated February 17, 2021 to its short form base shelf prospectus dated July 17, 2020.

VANCOUVER, BC / ACCESSWIRE / July 29, 2021 / Perk Labs Inc. (CSE:PERK)(OTCQB:PKLBF)(FKT:PKLB) ("Perk Labs" or the "Company") the parent company of Perk Hero, the mobile commerce platform with exclusive perks on curated lifestyle products and digital gift cards, today announced financial results for the second quarter ended May 31, 2021.

Overview
During the second quarter, Perk Hero iterated on its platform with the release of a universal shopping cart, a proprietary payout system and multiple optimizations for users. These upgrades were a top priority for the Company in order to allow customers to shop simultaneously from a variety of brands and retailers on Perk Hero and to improve controls, insights and reporting functionality with respect to merchant payouts. A number of user interface upgrades were made to optimize navigation and checkout functionality.

The Company also hired Michelle Berg as Director of Marketing to help scale customer demand and acquisition as well as lead the Company's branding, messaging and communications strategy. Previously, she was a group lead at Major Tom, an industry leading marketing agency.

"Perk Hero has a unique marketplace with products and gamified digital rewards that appeals to today's shoppers," said Ms. Berg. "I am excited to help build the Perk Hero brand and raise awareness to this new marketplace through data-driven digital marketing campaigns."

The Company continues to prudently manage its working capital with $1.9 million cash on its balance sheet and $2.0 million in marketable securities. This has allowed us to invest more into research and development and accelerate our marketing efforts which we will continue to optimize in the coming quarters.

"We enter the second half of 2021 with a significantly improved and upgraded platform that empowers eCommerce merchants and restaurants with an omnichannel ecosystem that connects their offline business to their digital operations in a simplified way", said Jonathan Hoyles, CEO, Perk Labs. "One of our top priorities now is to grow customer demand for our merchants by providing consumers with a convenient and highly incentivized way to earn cryptocurrency by simply making purchases through our platform. We are also excited with the prospects of new revenue opportunities such as the licensing agreement with Century Services, which we believe provides a model we can replicate in other cities to expand our business across North America."

As at May 31, 2021, Perk Hero had 109 restaurants and 128 third-party sellers on its platform with a total of 7,382 products and 91 gift card brands for sale.

2021 Q2 Financial Highlights:

  • Working capital of $3.0M in Q2 2021 compared to $1.9M in Q2 2020 and $792k in Q4 2020.
  • Net loss of $1.3M in Q2 2021 compared to a net loss of $1.2M in Q2 2020.
  • Revenue of $1,085 in Q2 2021 compared to revenue of $1,811 in Q2 2020. Revenue in Q2 2021 consisted primarily of third-party seller transactions which is recognized on a net basis as compared to prior quarters in which the Company sold products from inventory which is recognized on a gross basis. For Q2 2021, the Company's focus was on improving its platform and checkout process and working on a number of overall quality improvements that were required after implementing upgrades. As such, consumer marketing initiatives were delayed to subsequent quarters until the upgrades and enhancements were complete.
  • General and administration expenses decreased 24% to $295k in Q2 2021 compared to $386k in Q2 2020 as the Company continued to practise cost discipline.
  • Research and development expenses increased 16% to $204k in Q2 2021 compared to $176k in Q2 2020 as the Company continues to invest in its technology platform.
  • Sales and marketing expenses increased 8% to $184k in Q2 2021 compared to $170k in Q2 2020 as the Company continues to test and refine its marketing efforts to maximize return on ad spend.

2021 Q2 Operational Highlights

  • Strengthened the balance sheet: During the six months ended May 31, 2021, the Company issued 15,641,000 common shares through its at-the-market offering filed July 29, 2020 at an average price of $0.10 per share for gross proceeds of $1,570,780. Commissions paid were $47,123 for net proceeds of $1,523,657.

The Company also issued 6,072,000 common shares through its at-the-market offering filed February 17, 2021 at an average price of $0.12 for gross proceeds of $709,085 and net proceeds of $687,813. As part of the offering, the Company paid commissions of $21,272.

  • Expanded relationship with InComm: The Company signed an agreement with InComm Payments to distribute digital gift cards in the United States. Gift card categories available through the Perk Hero app in the US include online shopping, streaming services, gaming, home improvement and major restaurant chains. Perk has developed an innovative platform for the sale of digital gift cards, allowing users to buy for themselves, send to friends as gifts, save the digital gift card in the Perk digital wallet as stored value, earn cash back rewards on the purchase of digital gift cards, and earn rewards for referring digital gift cards to friends and family.

Highlights Subsequent to 2021 Q2

  • Implemented a merchant referral program and streamlined merchant onboarding : The Company implemented a merchant referral program whereby people could receive a referral bonus for each successful merchant added to Perk Hero. Paired with Perk Hero's streamlined onboarding process, this will enable the Company to add additional merchants to its platform more quickly.
  • Initiated development of web-based portal : The Company initiated development of a new web-based internal administration portal that provides its team with more advanced reporting and data analytics and allows it to strengthen and broaden Perk's internal controls. This is an important tool to be able to analyze the growth of Perk's business and will be used to configure promotions and the way products and brands are displayed on the app. This internal web-based tool will also form the foundation for a new web-based merchant tool that will provide third-party sellers and restaurants on Perk's platform with data analytics, catalogue management, and other promotional and sales features.
  • Launched a new channel partner program : Perk Labs signed a reseller agreement with Century Services as its first partner in the program. Under the terms of the agreement, the Company will receive a recurring annual fee in addition to a percentage share of transaction fees. Century will have exclusive reseller rights for the restaurant vertical in the Greater Vancouver region and Perk will provide technical support. To support this new channel partner program, the Company has begun development of a new web-based restaurant ordering tool that is expected to be in high demand from restaurants, many of which are currently experiencing labour shortages.

Outlook

The Company's strategic priorities for the remainder of 2021 include:

  • Consumer marketing initiatives including digital marketing through programmatic advertising, search engine marketing, improving SEO, advertising on social media channels, influencer marketing, promoting special offers through email, push notifications, and SMS, exhibiting at special events, pop up shop, and product led growth initiatives including Perk Coin incentives for referrals, brand and product reviews, leaderboard status and badges.
  • Continued development of the Perk Hero product through a series of build-measure-learn iterations and expanding upon its omnichannel commerce capabilities.
  • Investor relations initiatives including video updates for investors, hosting investor webinars, taking part in roadshows to meet new investors and attending industry events.
  • Continuing to add useful spending tools that build upon Perk's existing platform, including enabling customers to make purchases using digital wallets and cryptocurrency.
  • Developing Perk Coin as a blockchain-based digital loyalty reward currency and exploring the conditions and requirements to distribute Perk Coin as a cryptocurrency.

The Company's complete financial results are available in its Consolidated Financial Statements and Management's Discussion and Analysis for the quarter ended May 31, 2021, each filed with Canadian securities regulators at www.sedar.com .

IFRS
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 Inc. is the owner of Perk Hero , a digital loyalty management platform that enables merchants to provide their customers with digital rewards and a more engaging and convenient customer experience.

For more information about Perk Labs, please visit www.perklabs.io. Visit Perk Hero at www.perkhero.com.

For more information, please contact:
Norman Tan
Chief Financial Officer
norman@perkhero.com
833-338-0299
investors@perklabs.io

CHF Capital Markets
Iryna Zheliasko, Manager, Corporate Communications
416-868-1079 x 229
iryna@chfir.com

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.

Forward-Looking Statements
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 will provide consumers with a convenient and highly incentivized way to earn cryptocurrency by simply making purchases through its platform, the prospects of new revenue opportunities such as the licensing agreement with Century Services, and that it can provide a model to be replicated in other cities to expand the Company's business across North America, that the new merchant referral program paired with Perk Hero's streamlined onboarding process, will enable the Company to add additional merchants to its platform more quickly, that the new web-based portal will be used to configure promotions and the way products and brands are displayed on the app, that the internal web-based tool will also form the foundation for a new web-based merchant tool that will provide third-party sellers and restaurants on Perk's platform with data analytics, catalogue management, and other promotional and sales features, that the Company's new web-based restaurant ordering tool is expected to be in high demand from restaurants, the Company's planned marketing and investor relations initiatives, the continued development of the Perk Hero product through a series of build-measure-learn iterations, that the Company will build an exceptional and world-class brand, that the Company will increase the number of users and merchants using the Perk Hero platform, that the Company will ramp up sales and revenue generation, and the development of Perk Coin as a blockchain-based digital loyalty reward currency and that the Company will explore the conditions and requirements to distribute Perk Coin as a cryptocurrency. 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.sedar.com. 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.

SOURCE: Perk Labs Inc.



View source version on accesswire.com:
https://www.accesswire.com/657562/Perk-Labs-Reports-Second-Quarter-2021-Results

To view this piece of content from www.accesswire.com, please give your consent at the top of this page.

About ACCESS Newswire

DK

Subscribe to releases from ACCESS Newswire

Subscribe to all the latest releases from ACCESS Newswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from ACCESS Newswire

Loar Holdings Inc. Announces Date and Time for Third Quarter 2025 Earnings Conference Call5.11.2025 14:00:00 CET | Press release

WHITE PLAINS, NEW YORK / ACCESS Newswire / November 5, 2025 / Loar Holdings Inc. (NYSE:LOAR), will report Q3 2025 earnings before the market opens on Wednesday, November 12, 2025. A conference call will follow at 10:00a.m., Eastern Time. To participate in the call telephonically please dial +1 877-407-0670 / +1 215-268-9902. International participants can find a list of toll-free numbers here. A live audio webcast will also be available at the following link as well as through the Investor section of Loar Holdings website; https://ir.loargroup.com The webcast will be archived and available for replay later in the day. About Loar Holdings Inc. Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Loar has established relationships across leading aerospace and defense original equipment manufacturers and Tier Ones worldwide. Contact Ian McKillop Loar Holdings Inc.

New GA-ASI Gambit 6 UCAV Adds Air-To-Ground Operations for International CCA4.11.2025 16:00:00 CET | Press release

SAN DIEGO, CALIFORNIA / ACCESS Newswire / November 4, 2025 / The latest iteration of the innovative Gambit Series of unmanned combat air vehicles (UCAV) from General Atomics Aeronautical Systems, Inc. (GA-ASI) is Gambit 6, a collaborative combat aircraft (CCA) that adds air-to-ground operations to its already proven air-to-air capability. The multi-role platform is optimized for roles such as electronic warfare, suppression of enemy air defenses (SEAD), and deep precision strike, making it a versatile option for evolving defense needs. Air forces throughout the world are looking to air-to-ground-capable CCAs to enhance operational capabilities and address emerging threats in a denied environment. Gambit 6 is being developed to meet the corresponding need for adaptability, scalability, and mission-specific performance. "These are real threats, and they require real solutions," said GA-ASI President David R. Alexander. "The modular architecture and signature-reducing internal weapons bay

FiberCop and FMC GlobalSat/MTN Seal Strategic Partnership to Develop Hybrid Terrestrial-satellite Network Architectures in Italy4.11.2025 13:00:00 CET | Press release

The two companies have signed a strategic partnership aimed at offering high-speed connectivity across Italy, enabling high-performance backhaul and last-mile services by integrating satellite backhaul and fiber access in remote areas. ROME, ITALY AND FORT LAUDERDALE, FL / ACCESS Newswire / November 4, 2025 / FiberCop, the company running Italy's most advanced, extensive and widespread digital network infrastructure has signed a strategic partnership with FMC GlobalSat and its 100% owned subsidiary MTNSat "MTN", a world-class satellite network operator, to develop cutting-edge hybrid terrestrial-satellite solutions to deliver stable connectivity in remote areas across Italy. This agreement represents one of the first architectures of its kind developed worldwide over Low Earth Orbit (LEO) satellite networks. Altogether, both companies have successfully completed tests with hybrid network architectures that integrate LEO satellite services into terrestrial infrastructures, specifically

Sauce Labs Introduces Sauce AI for Insights: Purpose-Built AI Agents That Transform Software Quality Data Into Instant Engineering Intelligence3.11.2025 16:00:00 CET | Press release

Purpose-Built AI Agents Eliminate Hours of Manual Test Analysis, Accelerating Release Cycles and Empowering Engineering Teams to Ship High-Quality Applications with Unprecedented Speed and Confidence SAN FRANCISCO, CA / ACCESS Newswire / November 3, 2025 / Sauce Labs, the leading platform for continuous quality, today announced Sauce AI for Insights, a groundbreaking suite of AI-powered data and analytics capabilities that fundamentally transforms how engineering teams analyze, understand, and act on real-time test execution and runtime data to deliver quality releases at speed - while offering enterprise-grade rigorous security and compliance controls. As the industry's first AI agent purpose-built for software quality intelligence, Sauce AI for Insights converts one of the most critical bottlenecks in modern software development into a strategic advantage: the overwhelming volume of test data that slows decision-making and delays releases now accelerates developer productivity and en

Affiliate of Pacific Avenue Capital Partners Completes Acquisition of FLSmidth Cement from FLSmidth & Co. A/S3.11.2025 16:00:00 CET | Press release

LOS ANGELES, CA / ACCESS Newswire / November 3, 2025 / Pacific Avenue Capital Partners ("Pacific Avenue"), a leading global private equity firm focused on corporate carve-outs and other complex situations in the middle market, today announced it has completed the acquisition of FLSmidth Cement A/S ("FLSmidth Cement" or "Company"), from FLSmidth & Co. A/S (CPH:FLS) ("FLSmidth"). With the completion of the transaction, FLSmidth Cement will operate under the new name Fuller Technologies ("Fuller"), marking the beginning of its next chapter as an independent, technology-driven leader serving the global cement sector. Fuller is a leading solutions provider for the cement production industry focused on providing aftermarket parts and services to as well as new and replacement equipment for cement plants around the globe. The Company has manufacturing locations in North America, Europe, and Asia, and its global installed base spans over 1,400 of the world's approximate 2,700 cement plants. Wi

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom
World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye