-Company reports 164% Year over Year growth
in Revenue-
CALGARY, Aug. 29, 2016 /CNW/ - Zaio Corporation (TSXV:
ZAO) (the "Company" or "Zaio"), today announced its second quarter
(Q2) financial results for the three months ended June 30, 2016.
"We are incredibly pleased with our performance this quarter,"
said Shane Copeland, CEO of Zaio
Corporation. "As evident by the 164% year over year growth in our
top line, we are starting to see the result from our strategy to
disrupt a still nascent real estate appraisal market being
executed. We have been aggressively capturing market share with our
industry leading Clarocity Platform and our highly innovative next
generation valuation products such as MVPro appraisal and BPO
Merge. Through successful implementation, testing and actual
production with several lenders, servicers and GSE clients, our
innovative products are outperforming traditional appraisal while
greatly reducing cost in time and in dollars. We are just getting
started as next generation appraisal and valuation product
acceptance continues to accelerate in the U.S. Lending Market."
Financial Highlights
- Total revenue was $1,250,174 for
the three months ended June 30, 2016,
compared to $472,926 for the same
period in 2015, a 164% increase. For the six months ended
June 30, 2016, revenue totalled
$3,040,215 compared to $537,406 for the same period in 2015, a 466%
increase.
- Total cost of sales for the three months ended June 30, 2016 was $670,658 compared to $281,574 for the same period in 2015. Total cost
of sales for the six months ended June 30,
2016 was $1,652,992 compared
to $281,573 for the same period in
2015.
- Total operating expenses were $2,597,726 for the three months ended
June 30, 2016, compared to
$2,738,860 for the same period in
2015. Total operating expenses were $5,277,863 for the six months ended June 30, 2016 compared to $4,426,062 for the same period in 2015.
- Net loss of $2,030,735
($0.01 per share) for the three
months ended June 30, 2016, compared
to a net loss of $2,547,508
($0.02 per share) for the same period
in 2015, a decrease in loss of 6%. Net loss for the six months
ended June 30, 2016 $4,150,331 ($0.02
per share) compared to $9,207,029
($0.06) for the same period last
year, a decrease of 55%.
- As at June 30, 2016, the
Company's cash position was $568,883,
compared to a cash position of $171,995 on March 31,
2016.
Operational Highlights
- During the quarter:
- The Company announced ZDS private placement subscription and
early termination of ZDS warrants. ZDS agreed to terminate warrants
and purchase 451,520 common shares of Zaio at a price of
$0.11.
- Zaio Corporation and The Keylink Family of Companies extended
the Clarocity technology platform to include GSE asset
inspections.
- The Company was engaged by Morningstar Credit Ratings to
perform rankings of residential vendors.
- The Company completed a second tranche of debenture financing
for gross proceeds of $2.36million.
- Subsequent to the quarter:
- The Company approved debenture interest payments in the form of
shares.
- Zaio Corporation acquired appraisal management company Valued
Veterans.
About Zaio Corporation
Zaio Corporation was founded on the simple premise that current
real estate valuation technologies lacked the information and
technology necessary to deal with today's dynamic housing market.
Zaio is disrupting an industry that was once thought not possible
through its proprietary valuation solutions. Every day our
GSE, banking, and investor clients rely on our proprietary
solutions to fund loans and value assets. At Zaio, our mission is
to ensure that our solutions provide businesses and consumers
unparalleled insight into their real estate assets. For more
information, visit www.zaio.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Information
This news release contains forward-looking statements which may
include financial and business prospects, as well as statements
regarding the Company's future plans, objectives or economic
performance and financial outlooks. Such statements are subject to
risk factors associated with the real estate industry, the overall
economy in both Canada and
the United States. Forward-looking
information in this press release, includes, among other things,
information relating to any applicable approvals required in order
to complete the warrant surrender and share subscription which may
include, but is not limited to, the approval of the TSX Venture
Exchange. The Company believes that the expectations reflected in
this news release are reasonable but actual results may be affected
by a variety of variables and may be materially different from the
results or events predicted in the forward-looking statements.
Readers are therefore cautioned not to place undue reliance on
these forward-looking statements. In evaluating forward-looking
statements readers should consider the risk factors which could
cause actual results or events to differ materially from those
indicated by such forward-looking statements. These forward-looking
statements are made as of the date hereof, and unless otherwise
required by applicable securities laws, the Company does not intend
nor does it undertake any obligation to update or revise any
forward-looking statements.
This news release does not constitute an offer to sell or
a solicitation of an offer to buy any of the securities in
the United States.
The securities of the Company will not be registered under
the United States Securities Act of 1933, as amended (the
"U.S. Securities Act, and may not be offered or sold
within the United States or to, or
for the account or benefit of U.S. persons except in
certain transactions exempt from the registration requirements of
the U.S. Securities Act)
SOURCE Zaio Corporation