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Lingo Media Reports Financial Results for the Third Quarter Ended September 30, 2019

TORONTO , Nov. 29, 2019 /CNW/ - Lingo Media Corporation (TSX-V: LM) ("Lingo Media" or the "Company"), an EdTech company that is 'Changing the way the world learns English' through innovative online and print-based technologies and solutions, announces its financial results for the third quarter ended September 30, 2019 . All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Q3 2019 Operational Highlights

  • Online English Language Learning:
  • Print-Based English Language Learning:


Q3 2019 Financial Highlights

Third Quarter Ended September 30th

2019

2018

Revenue

$

117,545

$

186,518

Operating and development expenses

310,853

297,242

Loss before amortization,

share-based payments, depreciation, finance charges and taxes

(193,308)

(110,724)

Amortization, share-based payments, and depreciation

71,590

16,012

Finance charges, taxes, foreign exchange

77,284

29,814

Total expenses

459,727

343,068

Net loss

(342,182)

(156,550)

Total comprehensive loss

$

(320,519)

$

(160,775)

Loss per share

$

(0.01)

$

(0.00)

 

  • Revenue for the quarter ended September 30, 2019 totalled $117,545 as compared to $186,518 in Q3 2018.
  • Operating and development expenses for the quarter ended September 30, 2019 totalled $310,853 compared to $297,242 in Q3 2018.
  • Depreciation expense for the quarter was $47,234 as compared to $1,544 in 2018. The increase is due to changes in IFRS where the office lease is has now being capitalized as a Right of Use Asset and is being amortized over the term of lease.
  • Net loss for the quarter ended September 30, 2019 was $(342,182) or $(0.01) loss per share (basic) based on 35.5 million weighted average number of common shares as compared to net loss of $(156,550) for Q3 2018 or $(0.00) loss per share (basic) based on 35.5 million weighted average number of common shares.
  • Loss before amortization, share-based payments, depreciation, finance charges and taxes was $(193,308) compared to $(110,724) in Q3 018.


Financial Highlights for the Nine-Month Period Ended September 30, 2019

Nine Month Period Ended September 30

2019

2018

Revenue

$

1,124,714

$

1,227,032

Operating and development expenses

920,885

1,209,469

Income before amortization,

share-based payments, depreciation, finance charges and taxes

203,829

17,563

Amortization, share-based payments and depreciation

223,285

92,300

Finance charges, taxes and foreign exchange

206,597

148,698

Total expenses

1,350,767

1,450,467

Net loss

(226,053)

(223,435)

Total comprehensive loss

$

(231,276)

$

(227,014)

Loss per share

$

(0.01)

$

(0.01)

 

  • Revenue for the nine-month period ended September 30, 2019 totalled $1,124,714 compared to $1,227,032 for the same period in 2018.
  • Operating and development expenses for the nine-month period ended September 30, 2019 totalled $920,885 as compared to $1,209,469 for the same period in 2018.
  • Depreciation expense for the nine-month period was $142,170 as compared to $4,761 in 2018. The increase is due to changes in IFRS where the office lease is has now being capitalized as a Right of Use Asset and is being amortized over the term of lease.
  • Net loss for the nine-month period was $(226,053) as compared to net loss $(223,435) for the same period in 2018.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $203,829 , as compared to $17,563 for the same period in 2018.


"During the 3rd quarter, we have implemented a number of functionality and feature upgrades to our platform which provides us with greater flexibility and expanded offering to teachers and students. We have been working with our channel partners to renew existing contracts and to build new business. In addition, we have expanded our distribution network and we expect these new relationships to materialize into sales contracts in 2020", said Gali Bar-Ziv , President & CEO of Lingo Media.

The condensed consolidated interim financial statements for the quarter ended September 30, 2019 and Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media (TSX-V: LM)

Lingo Media is a global EdTech company that is 'Changing the way the world learns English', developing and marketing products for learners of English through various life stages, from classroom to boardroom.  By integrating education and technology, the company empowers English 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 and Lingo Learning.  ELL Technologies provides online training and assessment for English language learning, while Lingo Learning is a print-based publisher of English language learning programs in China .

Lingo Media has formed successful relationships with key government and industry organizations internationally, with a particularly strong presence in Latin America and China 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
RSS:         http://feeds.feedburner.com/LingoMedia

Portions of this press release may include "forward-looking statements" within the meaning of securities laws.  These statements are made in reliance upon Sections 21E and 27A of the Securities Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. These statements are based on management's current expectations and involve certain risks and uncertainties.  Actual results may vary materially from management's expectations and projections and thus readers should not place undue reliance on forward-looking statements. Lingo Media has tried to identify these forward-looking statements by using words such as "may," "should," "expect," "hope," "anticipate," "believe," "intend," "plan," "estimate" and similar expressions. Lingo Media's expectations, among other things, are dependent upon general economic conditions, the continued and growth in demand for its products, retention of its key management and operating personnel, its need for and availability of additional capital as well as other uncontrollable or unknown factors. No assurance can be given that the actual results will be consistent with the forward-looking statements. Except as otherwise required by US Federal securities laws, Lingo Media undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.  Certain factors that can affect the Company's ability to achieve projected results are described in the Company's filings with the Canadian and United States securities regulators available on www.sedar.com or www.sec.gov/edgar.shtml.

NEITHER THE 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

SOURCE Lingo Media Corporation


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