12 ReTech Corporation Discusses Recent Business Progress and Releases Third Quarter FY2018 Financial Results
Las Vegas, NV & Hong Kong, Nov. 20, 2018 (GLOBE NEWSWIRE) -- 12 ReTech Corporation (OTCQB: RETC) has accomplished several milestones since the beginning of their FY2018 Third Quarter.
First, the R&D efforts to produce the second generation of the major components of our 12 Technology Suite have been successful. We have recently released new software for the 12Mirror and the 12AdScreen. We are expecting to launch the new 12Mobile APP in the next few weeks.
Angelo Ponzetta, 12 ReTech’s CEO commented, “The release of our new technologies has allowed us to approach merchant clients in our major markets. American, European and Japanese clients have seen the new technologies and have confirmed their interest to move forward. We expect to announce some of these developments in FY2019 1st quarter. In the retail industry, November and December are the busiest months of the year for retailers and while we believe their interest is high, they need to take care of operations first.”
Second, we continue to make progress in the US market with our wholly owned subsidiary Emotion Fashion Brands, Inc. D/B/A “Emotion Fashions”. Production is increasing at our factory and we are making headway in both wholesale and online sales efforts. Sales efforts yielded $19,600 in the third quarter of FY2018. We expect sales to keep improving as we recruit additional wholesale customers for our Emotion Fashions and our Lexi-Luu Dancewear brands.
CEO, Ponzetta, continued, “We are also making progress in our direct sales to consumer operations through two proprietary online sites, www.emotionapparelinc.com and www.lexiluudancewear.com. Through the use of social media tools such as Instagram® and Facebook®, we are beginning to see our client lists grow on both brands. As we continue to innovate and add our “12 Online Solutions” to our e-commerce sites, we hope to accelerate the addition of new customers to our marketing database.”
Third, the Company has made progress on the acquisition front. While the three acquisition targets announced in 2017 are still on hold, we have approached several new targets that could prove to be strategic for increasing the capacity of our manufacturing operations and to adding brands that already have proven traction in the marketplace. Every one of the candidates would like to bring their operations to the next level of success by expanding their sales channels, including their online presence. We hope to have concrete news to talk about in the first quarter, 2019.
Fourth, the 12 Technology Suite showrooms in Zurich and Salt Lake City are now ready. We plan to use both facilities to demonstrate our technology to retailers who are interested in getting more shoppers into their properties and converting them into buyers.
CEO, Ponzetta continued, “Our focus is not just about giving the shopper a better experience inside the retailer store, much of the value proposition that we offer is to give the merchant a better insight into what the shoppers are interested in through the data analytics capabilities that are built into our technology. Better insights on shopper’s reactions to merchandising can help retailers to increase their sales.”
Fifth, there is exciting recent progress in Zurich, Switzerland, with our 12Sconti APP which we plan to discuss in greater detail in the next few weeks.
Management believes that the Company’s activities during FY2018 Third Quarter were designed to prepare us for future growth in our technology business as well as in our consumer products business. We plan to continue to invest in Research and Development and Brand Marketing for both technology and consumer products.
Mr. Ponzetta commented further, “Our Company continues to make progress on executing our business plan in a number of areas. I am pleased to tell you that Itoya, our first client in Japan, has chosen to expand their usage of our technology. I am also very pleased with the reception we are receiving from world class retailers — the fruit of relationships cultivated with the industry over the past two years.”
In the third quarter (“Q3:FY2018”) ended September 30, 2018, the Company posted revenues of $48,102 an increase of $31,420 (288%) over the 2nd quarter of the year and a GAAP Net Loss of $1,768,823 compared to $1,714,346 for the 2nd quarter of 2018.
While our published SEC Form 10-Q will provide a comparison for Q3:FY2018 against the prior year’s comparable period, Management believes that a better analysis can be had compared against the prior sequential period (“Q2:FY2018”) as the Company incurred public entity expenses in both periods.
In Q3:FY2018, the Company saw an increase in revenues over the prior sequential period due to the deployment of 12 Technology Suite at a second Itoya location in Japan and to a lesser extent, the successful buildup at Emotion Fashions, our consumer products operation. The total Q3:FY2018 revenues of $48,102 include $28,460 from 12 Japan’s Itoya Operations and a $19,642 revenue contribution from Emotion. The revenue increase of $31,420 quarter over quarter represents an 288% improvement.
Excluding the non-cash finance expenses associated with Derivative Liabilities which emanate from our convertible debt and convertible preferred shares and represent a change in accounting treatment, the added net Stock Compensation Expense and the finance related amortization of debt discount, the Company experienced an Adjusted Cash Net Loss of $732,650 for the just reported period versus an Adjusted Cash Net Loss of $924,463 in the second quarter of the year. This represents a improvement (reduction) of $191,813 in Adjusted Cash Net Loss, when compared period over period.
CEO Ponzetta, finished, “We continue to add valuable partners whose technology complements our own 12 Technology Suite. I am pleased with the progress that we are making on all of our various business activities. I believe that each separate business activity will provide us with a foundation to produce revenues and earnings for our shareholders in the future, and we believe that each segment will complement the other for the benefit of our shareholders.”
The figures referenced above are not audited, readers are advised to consider these figures along with footnotes and any other accompanying information that is contained in the Company’s Form 10-Q as well as all of the filings that the Company has previously filed with the U.S. Securities and Exchange Commission.
About 12 ReTech Corporation:
At our core, we are a software company whose technology allows retailers to combat the dual threats of Walmart and Amazon — both online and in physical stores. Our microbrand rollup acquisition strategy allows us to demonstrate the effectiveness of our software, devise and test new products, while providing shareholder value through immediate revenue and earnings growth. The Company operates through our subsidiaries on three continents: 12 Hong Kong, Ltd., 12 Japan, Ltd., 12 Europe A.G., 12 Retail Corporation (and its subsidiaries in North America, including Emotion Fashion Group, Inc.). For more information please visit our website at www.12ReTech.com.
12 ReTech Corporation is publicly listed on the OTCQB Markets under the symbol RETC.
Safe Harbor: This document contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words “estimate,” “anticipate,” “expect,” “believe,” and similar expressions are intended to be forward-looking statements.
Investors Relations Contacts:
Mark GilbertMagellan FIN, LLC email@example.com 317-361-2392 (USA)