Montreal – (TheNewswire) – April 29th, 2021 – ATW Tech Inc. (the « Company » or « ATWTech ») (TSX-V: ATW) reports today its earnings for the fiscal year, which ended on December 31st, 2020.

• The Company reported revenue of $2.3M in 2020 compared to $5.7M in 2019, a drop of $3.4M attributable predominantly to the customer remediation exercise (costly compliance exercise) and the asset sale of VuduMobile Inc;
• Cost of sales amounted to $2.1M in 2020 as opposed to $5.0M in 2019, a 2.9M drop representing a margin of $231k in 2020 compared to $683k in 2019;
• SG&A expenses were down $511k and $760k respectively compared to the same period in 2019;
• G5 Management Group Inc. successfully converted its $2,000,000 convertible loan into 20,000,000 common shares of the Company on February 11th, 2020, resulting in an annual interest savings of $200,000;
• On February 12th, 2020, the Company also announced the nomination of two new directors on the Board of Directors, Mr. Louis Lessard and Mr. Carlos Bedran;
• On November 9th, 2020, the Company was able to close a $1,500,000 private placement through the issuance of 30,000,000 shares of the Company’s common stock at $0.05 per common share;
• On November 9th, 2020, the Company acquired 100% of the outstanding shares of Seméon Analytique Inc. (« Seméon ») by issuing 59,100,000 common shares of the Company valued at $3,250,500.
• On March 1st, 2021, the Board confirmed the nomination of Mr. Christian Trudeau as Chairman of the Board of Directors of the Company, a position previously filled by Mr. Michel Guay, Acting President and Chief Executive Officer of ATW Tech Inc.

Insights

In the face of a challenging economic climate due to Covid-19, which remains as of the date hereof, the year 2020 was a milestone year in which the Company made progress on multiple levels. The Company was able to secure important transactions that strengthened its balance sheet, improved its outlook, and pursued its growth strategy to maximize shareholder value.

While its operations have declined since the onset of the crisis and, consequently, its revenues, the Company has responded quickly to the situation by implementing many targeted measures, such as tighter expense management, obtaining the Canada Emergency Wage Subsidy (« CEWS »), reducing the number of management of its expenses, obtaining the Canada Emergency Wage Subsidy (« CEWS »), the Canada Emergency Rent Grant (CERG) and the emergency loan. All of these measures have allowed the Corporation to limit the impact of this crisis on its cash flow.

During Q1 2020, the Company proceeded with the conversion of its convertible debenture, allowing the elimination of this debt from its balance sheet and saving $200,000 in interest per annum. This conversion has significantly improved our financial position and provided us with more financial flexibility for new development and acquisition projects.

In addition, 2020 marked the finalization and launch of its premium Option.vote platform  (www.option.vote.com), which started generating revenues in the last quarter. Option.vote offers a multi-method voting system designed for unions, political parties, professional associations, and others seeking a secure way to reduce their voting costs and improve their voter participation. Marketing efforts will be deployed during 2021 to drive revenue growth for the Company and improve profitability as these services offer higher profit margins.

Last but not least, in November 2020, the Company closed a private placement of $1.5M and acquired Seméon Analytique Inc. The proceeds of the private placement allowed the Company to considerably reduce its indebtedness and the acquisition of Seméon (www.semeon.com), an artificial intelligence (A.I.) company, which will increase the Company’s ability to offer its clients services in a synergistic manner with Option.vote in SaaS mode, thus allowing us to have access to international markets

The year 2020 has been marked by ongoing innovation and has brought our intellectual property (IP) portfolio to a new plateau, thus allowing us to pursue our growth initiatives through organic development and future acquisitions” said Michel Guay, President and Chief Executive Officer of ATW Tech Inc. The data disclosed herein is a summary of the top highlights. For further information, please refer to the Company’s consolidated financial reports and Management’s Discussion and Analysis for the year ending December 31st, 2020 on the following URL: www.sedar.com.

ATW Tech’s profile

ATW Tech (TSX-V: ATW) is a technology company, owner of several recognized technology platforms such as VoxTel, Option.vote, Bloomed and Semeon. VoxTel specializes in telephone billing and alternative payment solutions for fixed and mobile lines. Option.vote offers a customized multi-method voting system for unions, political parties, professional associations and anyone looking for a secure way to reduce their voting costs and improve their participation rate. Bloomed is a cloud computing platform for managing smart data on consumers and their behaviors for both business and consumer-oriented campaigns. Semeon is a highly accurate and flexible text analysis platform for customer reviews, Semeon uses a unique combination of machine learning and Natural Language Processing (NLP) to discover significant trends in  customer reviews across all channels.

Source

ATW Tech Inc.