TORONTO, ONTARIO -- (Marketwired) -- 05/15/17 -- Zoompass Holdings Inc. ("Zoompass" or the "Company") (OTCQB: ZPAS) announces that it has filed its 10-Q report with the SEC for the period ended March 31, 2017. During the period the Company reported net revenue of $254,683, gross margin(i) of $37,659 and a net loss of $635,168 or $0.02 per share. Included in the net loss for the period was $104,722 related to non-cash expenses(ii).
The Company was extremely pleased to report a positive trend in net revenue which was up 191% in the first quarter of 2017, compared with the net revenue for the quarter ended December 31, 2016 and 290% compared with the quarter ended September 30, 2016(iii). The Company believes that the increasing trend in net revenue was a result of the Company's efforts to gaining traction in the Company's prepaid card solutions as well as revenue from the launch of the Company's mobility solutions. The Company believes that additional traction from the mobility solutions, the launch of the Company's Mobile Money Platform and the business from the previously announced agreements should continue to drive the Company's results for the months ahead.
Rob Lee, Chief Executive Officer of the Company, commented, "We are extremely pleased with the direction the Company is headed and believe it is a direct result of the efforts of Zoompass' employees and business partners. We believe the launch of our new revenue pillars, the continued traction across our existing revenue pillars, as well as potential synergies across our financial solutions offerings, will have a positive impact on the Company's results and ultimately shareholder value."
About Zoompass is a leading financial services technology company with a unique place in the Fintech space as both a financial platform provider with divisions in physical prepaid cards, financing enablement, and mobility products. Zoompass provides businesses and government tailored solutions to help digitize their financial transactions. In the card sector, Zoompass offers complete program management services for a wide range of open loop Visa® and MasterCard® prepaid and virtual card accounts. Zoompass enables businesses to provide their customers with a number of open loop card choices including, gift card, incentive cards, check replacement cards and online virtual card accounts. The company also provides advanced mobile technology, enabling businesses to provide their customers with a white label mobile wallet solution, like Zoompass, with the ability to manage their card balances, bill pay, transfer funds and perform card to card money transfers in real time using their mobile devices. Zoompass's mobile device division helps carriers and mobile device manufacturers integrate the financial platform technology into their offerings. For more information about Zoompass, visit www.zoompass.com.
(i) Gross margin is not a defined term as per GAAP and is calculated as net revenue less processing and card fees and mobility cost of goods sold.
(ii) Non-cash expenses includes share-based payment expense and foreign exchange.
(iii) Results for the period ended March 31, 2016, are not available as the operating entity, Zoompass Inc. was only incorporated in June 2016.
From time to time, the Company may issue news releases that contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. Forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause actual financial or operating results, performances or achievements expressed or implied by such forward-looking statements not to occur or be realized. Forward-looking statements made in this press release generally are based on our best estimates of future results, performances or achievements, predicated upon current conditions and the most recent results of the companies involved and their respective industries. Forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "could", "should", "project", "expect", "believe", "estimate", "anticipate", "intend", "continue", "potential", "opportunity" or similar terms, variations of those terms or the negative of those terms or other variations of those terms or comparable words or expressions. Potential risks and uncertainties include, among other things, such factors a general economic conditions, the fulfillment of sales orders, delivery of product, the impact of legislation and the competition within our industry.
Rob Lee, Steve Roberts, Brian Morales
Source: Zoompass Holdings Inc.