Lingo Media Reports Financial Results for the Third Quarter Ended September 30, 2021
Canada NewsWire
TORONTO, Nov. 24, 2021
TORONTO, Nov. 24, 2021 /CNW/ - Lingo Media Corporation (TSX-V: LM) (OTCQB: LMDCF) (FSE: LIMA) ("Lingo Media" or the "Company"), an EdTech company that is 'Building a multilingual world' through innovative online technology and solutions announces its financial results for the third quarter ended September 30, 2021. All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.
Q3 2021 Operational Highlights
-- Online English Language Learning:
-- Released Level 1 of English Academy, a English learning program aimed at
primary school learners.
-- Doubled the Portuguese course to cover learners up to B2 on the Common
European Framework of Reference.
-- Entered into a distbitution agreement with partners in Peru and Honduras.
-- Grew its sales team by hiring personnel in Colombia and Peru.
-- Conducted three webinars as part of ELL teacher development series.
-- Print-Based English Language Learning:
-- Expanded existing market for PEP Primary English program into one
additional province in China.
-- Initiated the development of content and material for its Grade 3
textbooks.
Q3 2021 Corporate Highlights
-- November 6, 2021, the Company announced the filing of Form 15F with the
U.S. Securities and Exchange Commission ("SEC") to terminate the
registration under Section 12(g) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), as well as to terminate its reporting
obligations under the Exchange Act. As a result of filing the Form 15F,
Lingo Media's obligations to file reports under the Exchange Act will be
suspended immediately and are expected to terminate 90 days after the
filing, barring any objection by the SEC.
-- On November 16, 2021, the shareholders approved all matters at the Annual
General Meeting.
-- On November 19, 2021, the Company announced that the Board of Directors
re-appointed Gali Bar-Ziv as President & CEO and Khurram Qureshi as Chief
Financial Officer. In addition, the Board appointed Khurram Qureshi as a
Director and Mr. Michael Kraft notified the Company of his intention to
retire from the Company's Board of Directors for personal reasons.
-- Hon. Jerry Grafstein notified the Company of his intention to retire from
the Company's Board of Directors for personal reasons, effective
immediately. The Board of Directors and management of Lingo Media would
like to thank Mr. Grafstein for his services and all of his contributions
over the years.
Q3 2021 Financial Highlights
Third Quarter Ended September 30(th) 2021 2020
Revenue $ 163,493 $ 68,775
Operating and development expenses 433,209 404,377
Loss before amortization,share-based payments,
depreciation, finance charges
and taxes (269,716) (335,602)
Amortization, share-based payments, and
depreciation 961 32,147
Finance charges, taxes, foreign exchange 11,418 (10,604)
Net loss (282,095) (357,145)
Total comprehensive loss (226,580) (400,723)
Loss per share (Basic) $ (0.01) $ (0.01)
-- Revenue for the third quarter ended September 30, 2021 totalled $163,493
as compared to $68,775 in Q3 2020.
-- Operating and development expenses for the quarter ended September 30,
2021 totaled $433,209 compared to the expenses of $404,377 in Q3 2020.
Included as a reduction of selling, general and administrative expenses
are government grants of $55,000 relating to the Company's publishing and
software projects. The Company applied for the Canada Emergency Wage
Subsidy and received $8,492 during the third quarter reflected as a
reduction of General and Administrative Expense.
-- Net loss for the quarter ended September 30, 2021 was $282,095 or $0.01
loss per share (basic) based on 35.5 million shares or $0.01 loss per
share (diluted) based on 38.5 million shares as compared to a net loss of
$357,145 for Q3 2020 or $0.01 loss per share (basic) based on 35.5
million shares or $0.01 loss per share (diluted) based on 39.8 million
shares.
-- Loss before amortization, share-based payments, depreciation, finance
charges and taxes was $269,716 in Q3 2021 compared to the loss of
$335,602 in Q3 2020.
Financial Highlights for the Nine-Month Period Ended September 30, 2021
Nine Month Period Ended September 30(th) 2020 2019
Revenue $1,343,091 $1,143,288
Operating and development expenses 1,229,772 407,721
Income before amortization,share-based payments,
depreciation, finance charges
and
taxes 113,319 735,567
Amortization, share-based payments and
depreciation 23,053 97,841
Finance charges, taxes and foreign exchange 84,477 136,923
Net profit (loss) 5,789 500,803
Total comprehensive income (loss) $ (43,249) $ 556,159
Earnings (Loss) per share (Basic) $ 0.00 $ 0.02
-- Revenue for the nine-month period ended September 30, 2021 totalled
$1,343,091 compared to $1,143,288 for the same period in 2020.
-- Operating and development expenses for the nine-month period ended
September 30, 2021 totaled $1,229,772 as compared to $407,721 for the
same period in 2020. The increase of selling, general and administrative
expenses is primarily due to the receipt of Ontario's Interactive Digital
Media Tax Credit ("OIDMTC") in the amount of $904,940 was recorded as
reduction of selling, general and administrative expenses in 2020. OIDMTC
is a refundable tax credit based on eligible Ontario labour expenditures
in additional to eligible marketing and distribution expenditures claimed
by a qualifying corporation with respect to interactive digital media
products. In absence of OIDMTC grant and related costs, the Company's
selling, general and administrative expenses for nine-month period ended
September 30, 2020 would be $1,085,594.
-- Net profit for the nine-month period was $5,789 as compared to net profit
of $500,803 for the same period in 2020.
-- Income before amortization, share-based payments, depreciation, finance
charges and taxes was $113,319, as compared to $735,567 for the same
period in 2020. The decrease of Income before amortization, share-based
payments, depreciation, finance charges and taxes is primarily due to the
receipt of OIDMTC in the amount of $904,940 in 2020. In absence of OIDMTC
grant and related costs, the Company's Income before amortization,
share-based payments, depreciation, finance charges and taxes for
nine-month period ended September 30, 2020 would be $57,694.
"We are very pleased with the addition of key distributors in our core markets and the continued growth in our digital sales. We have invested great efforts to cultivate key relationships and we expect to see results in the coming months and years.," said Gali Bar-Ziv, President & CEO of Lingo Media.
The unaudited condensed interim financial statements for the quarter ended September 30, 2021 and Management Discussion & Analysis are available at www.sedar.com.
About Lingo Media (TSX-V: LM; OTCQB: LMDCF)
Lingo Media is a global EdTech company that is 'Building a multilingual world', developing and marketing products for learners of new languages through various life stages, from classroom to boardroom. By integrating education and technology, the company empowers language educators to easily transition from traditional teaching methods to digital learning.
Lingo Media provides both online and print-based solutions through two distinct business units: ELL Technologies Ltd., d/b/a Everybody Loves Languages and Lingo Learning Inc. Everybody Loves Languages provides online training and assessment for language learning, while Lingo Learning is a print-based publisher of English language learning programs in China.
Lingo Media has established successful relationships with key government and industry organizations internationally, with a presence in Latin America, China and the U.S., and continues to both extend its global reach and expand its product offerings.
Follow Lingo Media On:
Facebook: https://www.facebook.com/LingoMedia
Twitter: @LingoMediaCorp
YouTube: https://www.youtube.com/lingomedialm
LinkedIn: https://www.linkedin.com/company/lingo-media-corporation
