Perk Inc. Reports 2016 Third Quarter Financial Results Highlighted by a 41% Increase in Revenues

Austin, Texas, November 14, 2016 – Perk Inc. (TSX: PER) (“Perk” or “the Company”), the Rewarded Engagement Platform that connects brands with consumers, reported today its operating and financial results for the third quarter and nine-month period ended September 30, 2016. Unless otherwise noted, all amounts are in US dollars.

2016 Third Quarter Highlights (all comparisons to the same prior year period)

  • Total revenue increased approximately 41% to $18.7 million.
  • Gross Profit was $7.3 million, or 39% of total revenue.
  • Net income was approximately $2.8 million as compared to a net loss of $0.9 million.
  • Earnings of $0.12 per share, as compared to a loss per share of $0.05.
  • Excluding the results of Corona Labs Inc. (“Corona”) (which was disposed of in the quarter), Adjusted EBITDA (as defined below) was $2.8 million compared to $2.3 million of Adjusted EBITDA for the prior year period. See the table “Reconciliation of net income (loss) to Adjusted EBITDA” at the end of this release.

2016 Year-to-Date Highlights (all comparisons to the same prior year period)

  • Total revenue increased 67% to $52.8 million for the nine months ended September 30, 2016.
  • Gross Profit was $23.2 million, or 44% of total revenue.
  • Net income was approximately $0.02 million, as compared to a net loss of $18.3 million.
  • Excluding the results of Corona, Adjusted EBITDA of $5.9 million, compared to Adjusted EBITDA of $4.0 million for the same period of the prior year.

Management Commentary

Ted Hastings, Chief Executive Officer of Perk commented, “We reported a 41% increase in revenue, maintained our strong capital position and achieved Adjusted EBITDA of $2.8 million excluding the results of Corona which we disposed of in the quarter. We also closed two significant transactions that resulted in the buyback of approximately 18% of the Company’s stock and we utilized our strong cash position to eliminate obligations from our balance sheet that will allow us to retain 100% of the EBITDA generated going forward. We believe that the transactions that occurred demonstrate management’s confidence in the future and belief in the true value of the Company.”

Mr. Hastings continued, “In addition, during the third quarter we developed and launched Perk IQ™, an analytics platform that puts us ahead of the competition by delivering targeted advertising for our brands and having the capability to measure a brand’s campaigns performance with tailored research and pre and post-campaign studies.”

2016 Third Quarter Operational Review

  • The Company launched Perk IQ, an advanced audience targeting and insight solution that enables advanced segmentation and audience targeting across Perk properties to help brands target consumers.
  • During the quarter, the Company bought out the remaining EBITDA based earn-out obligations owed to Orion Foundry (Canada) Inc. (“Orion”) pursuant to the asset purchase agreement entered into between the Company’s subsidiary, Perk Canada, and Orion on April 13, 2015. The Company paid $1.8 million to buy out the remaining earn-out obligations.
  • Perk increased its credit facility with present lender, Silicon Valley Bank, from $4.5 million to $17.3 million. The Company used a portion of the facility to fund the Orion EBITDA buyout.
  • The Company completed the sale of Corona to Roj Niyogi, Chief Executive Officer of Corona. In consideration of the purchase, Mr. Niyogi returned to Perk for cancellation 1,879,532 common shares and 1,505,972 Class A restricted voting shares in the capital of Perk, representing all of the shares held by Mr. Niyogi in Perk, and Perk paid to Mr. Niyogi aggregate cash proceeds of $1.75 million. Additionally, over the 12-month period following closing of the transaction, Perk will pay up to a maximum of $0.75 million to help facilitate the transition of Corona’s operations to Mr. Niyogi. Mr. Niyogi also resigned as a Director and the President of Perk in conjunction with this transaction.
  • Perk closed a securities repurchase transaction with Function(X), Inc. (formerly Viggle Inc.) (“FNCX”) resulting in the repurchase for cancellation of 1,012,968 Perk securities held by FNCX (the “Repurchased Securities”) in exchange for payment to FNCX of aggregate cash proceeds of $1.3 million. The Repurchased Securities were previously issued to FNCX on February 8, 2016 in connection with the purchase by Perk of all of FNCX’s interests in the Viggle App, including its rights to the Viggle name and brand.

2016 Restatement

  • The Company retroactively restated its previously issued unaudited interim condensed consolidated statement of operations and comprehensive loss to reflect the following:
    • On November 25, 2015, Perk acquired the shares of Playerize Network Inc. After reviewing the operations of Playerize, Management determined that Playerize is acting as an agent when conducting certain direct payment and performance advertising platform transactions and revenues generated must be recorded net of the related revenue share payments made to third party publishers in accordance with applicable International Financial Reporting Standards. This change was implemented effective July 1, 2016 and the Company has retroactively restated the related revenue and cost of revenue for the three months ended March 31, 2016 and June 30, 2016 to reflect the updated revenue recognition policy. The change in accounting policy results in an equivalent reduction in revenue and cost of revenue of $1.2 million and $1.5 million for the three months ended March 31, 2016 and June 30, 2016, respectively. This change in accounting policy did not have a material impact on the Company’s annual audited financial statements for the year ended December 31, 2015. These adjustments did not have an impact on the Company’s Adjusted EBITDA, gross profit, comprehensive loss, income tax payable, cash flow, deferred tax liabilities, current or deferred income tax expense (recovery); and
    • A reduction in revenue from advertising barter transactions of $0.9 million with an equivalent decrease in marketing and user acquisition expense for the three months ended March 31, 2016. These reductions were necessary to accurately reflect advertising rates used in accounting for barter transactions. These adjustments did not have an impact on the Company’s Adjusted EBITDA, comprehensive loss, income tax payable, deferred income tax liabilities, current or deferred income tax expense (recovery).
  • For more information regarding the restatement please see the “Restatement of 2016 Unaudited Interim Condensed Consolidated Financial Statements” section of this MD&A and Note 2 to the Company’s unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2016.

2016 Third Quarter Financial Review

  • Total revenue for the third quarter of 2016 increased 41% to $18.7 million, as compared to $13.3 million during the third quarter of 2015. Excluding the impact from the Acquisitions, which excludes the results from the AppRedeem acquisition, the Playerize acquisition, the Corona acquisition and the Viggle acquisition (collectively the “Acquisitions”), revenue in the third quarter of 2016 increased 22% to $16.1 million, compared to $13.3 million during the same period in 2015. The increase in advertising revenues is a result of an increase in traffic and monetization of Perk’s mobile web and desktop properties which helped to offset lower fill rates from third party ad networks partners.
  • Perk reported cost of revenue, which is comprised of the costs of the rewards provided to users, platform fees, and traffic acquisition costs to its desktop and mobile websites and revenue sharing commissions, for the three months ended September 30, 2016 of $11.4 million compared to $7.0 million during the same period in 2015. Excluding the impact of the Acquisitions, cost of revenue as a percentage of revenue earned was 66% compared to 53% for the same period in 2015. The increase in cost of revenue was the result of growth of the business and monetization opportunities across the Company’s mobile web and desktop properties.
  • Gross profit for the three months ended September 30, 2016 was approximately $7.3 million, or 39% of revenues, compared to approximately $6.3 million, or 47% of revenues, for the third quarter of 2015. The reduction in gross margin as a percentage of revenue was the result of the growth in monetization opportunities on the Company’s owned and operated mobile web and desktop properties which typically generate margins on revenue at a lower rate than the Company’s mobile apps business.
  • Net income for the three months ended September 30, 2016 was $2.8 million compared to a net loss of $0.9 million for the same period during 2015.
  • Excluding the results of Corona, Adjusted EBITDA was approximately $2.8 million for the three months ended September 30, 2016, as compared to approximately $2.3 million of Adjusted EBITDA generated in the three months during the same period of the prior year.

2016 Year-to-Date Financial Review

  • Total revenue for the nine months ended September 30, 2016 was $52.8 million compared to $31.6 million during the same period in 2015. Perk’s revenue, excluding the impact of the Acquisitions, increased by $14.4 million to $45.6 million for the nine-month period ended September 30, 2016, as compared to the same period of the prior year.
  • Perk reported cost of revenue for the nine months ended September 30, 2016 of approximately $29.5 million compared to $17.3 million for the same prior year period. Excluding cost of revenue from the Acquisitions cost of revenue increased for the nine months ended September 30, 2016 by $10.9 million from the same prior year period.
  • Gross profit for the nine months ended September 30, 2016 was approximately $23.2 million, or 44% of revenues, compared to approximately $14.3 million, or 45% of revenues, for the same prior year period.
  • Net income for the nine months ended September 30, 2016 was approximately $0.02 million compared to a net loss of $18.3 million during the same prior year period.
  • For the nine months ended September 30, 2016, Adjusted EBITDA was approximately $3.4 million compared to $4.0 million during the same period in 2015. Excluding the Adjusted EBITDA loss of $1.4 million generated by the Acquisitions during the first nine months of 2016, Adjusted EBITDA was $4.8 million as compared to $4.0 million during the first nine months of 2015. For the nine months ended September 30, 2016, the Corona acquisition generated a $2.5 million Adjusted EBITDA loss, which was partially offset by positive Adjusted EBITDA from the other Acquisitions.

Balance Sheet Summary

  • Perk had cash and restricted marketable securities of approximately $10.7 million at September 30, 2016 compared with approximately $17.5 million at December 31, 2015.
  • At September 30, 2016, shareholders’ equity was approximately $32.2 million, compared to approximately $32.1 million at December 31, 2015.
  • At November 11, 2016, the Company had 18,654,408 common shares and 652,502 restricted common shares issued and outstanding.

Conference Call Details

Date/Time: Monday, November 14, 2016 at 12 pm ET

Live Participant Dial-In (Toll-Free US & Canada):  877-407-9711

Live Participant Dial-In (International):  412-902-1014

Webcast

The call will also be simultaneously webcast over the Internet via the “Investor Relations” section of Perk’s website at ir.perk.com or by clicking on the conference call link:  http://perk.equisolvewebcast.com/q3-2016.

About Perk Inc.

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: www.ir.perk.com.

Financial Information

A copy of Perk’s unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2016, which are prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”) and Perk’s Management’s Discussion & Analysis, will be available on or before the date of this release via the Canadian Securities Administrators’ website at www.sedar.com or through the Company’s website at www.ir.perk.com.

Non-IFRS Measures

The Company defines Adjusted EBITDA as net income (loss) from operations before: (a) depreciation of property and equipment and amortization of intangible assets; (b) share-based compensation; (c) income tax expense (recovery); and (d) other charges, net. Management uses Adjusted EBITDA as a measure of the Company’s operating performance because it provides information related to the Company’s ability to provide operating cash flows for acquisitions, capital expenditures and working capital requirements. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry. Adjusted EBITDA should be used in addition to and in conjunction with the results presented in the Company’s unaudited interim condensed consolidated financial statements prepared in accordance with IAS 34. Management strongly encourages investors to review the Company’s financial statements in their entirety and to not rely on any single financial measure. As non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-IFRS financial measures having the same or similar names.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, including which may relate to, but which are not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to Perk’s SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; success of new products developed by Perk; Perk’s ability to retain key members of its management team; and certain other risk factors set forth in Perk’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2016. Perk does not undertake to update any forward-looking statement, except as required by law.

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Perk Inc. Named one of the 20 Most Innovative Public Canadian Listed Tech Companies

The Canadian Innovation Exchange has named Perk as one of this year’s 20 most innovative public Canadian listed tech companies. View the original article here.

cix_proudtop20_horizontalThe CIX Public Investor Day Top 20 is a unique program designed to showcase Canada’s hottest and most innovative public technology companies. This program is unique to any other showcase event in Canada as the selection committee evaluated and rated the hottest companies based primarily on their innovation, and only 20 companies have been chosen from hundreds of Canadian small and midcap tech companies. CEOs and Founders of these Top 20 companies will present for 7 minutes to an audience of Canada’s top tech investors and peers.

THE 2016 Public Investor 20

AcuityAds Inc.
Apivio Systems Inc.
BitRush Corp
C-Com Satellite Systems Inc.
CHAR Technologies Ltd.
CO2 Solutions Inc.
Deveron UAS Ltd
DIRTT Environmental Solutions Ltd.
dynaCERT Inc.
Firan Technology Group Corporation
H-Source Holdings Ltd.
HIT Technologies
Media Valet
MEMEX Inc.
Nanotech Securities
Perk Inc. (PER)
Points
Promis Neuroscience
ProntoForms Corporation
Symbility Solutions Inc.(formerly Automated Benefits Corp)

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Perk Inc. Schedules 2016 Third Quarter Financial Results and Conference Call

Austin, Texas, November 07, 2016 – Perk Inc. (TSX: PER) (“Perk” or “the Company”), announced today that it expects to release its financial results for the third quarter ended September 30, 2016 on Monday, November 14, 2016.

Perk will conduct its quarterly conference call to discuss these results later that day at 12:00 p.m. ET.

The dial-in numbers are:

Live PARTICIPANT Dial-In (Toll-Free US & Canada):  877-407-9711

Live PARTICIPANT Dial-In (International):  412-902-1014

To listen to the live webcast, please go to: http://perk.equisolvewebcast.com/q3-2016.

About Perk Inc.

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

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Perk Inc. Partners with Fortune 500 Company to Drive Increases in Purchase Intent and In-Store Conversion

Perk IQ Study Concludes that Partnership Fueled a 22% Increase in Purchases.

AUSTIN, Texas–October 12, 2016 – Perk Inc. (TSX: PER) (“Perk” or “the Company”), the Rewarded Engagement Platform that connects brands with consumers, today announces the results of a new brand study. The study was conducted for a Fortune 500 company’s campaign on Perk’s Viggle app, and found a 22% increase in purchases for the brand over the past thirty days.

The household products brand and Perk launched a second-screen engagement campaign corresponding to the hit television program, The Bachelorette. Using an interactive game and mobile ads on Perk’s Viggle app, the brand encouraged its target audience to engage with the show and its products. In addition, the brand employed Viggle’s geo-targeting capabilities to serve timely in-store promotions when users were within 200 feet of a designated retailer.

As a result, Perk IQ™ determined that the campaign achieved:

  • 22% increase in consumers who purchased the brand’s products in the past month
  • 25% increase in consumers very likely to purchase the brand’s products in the next month
  • Among users who participated in the geo-targeting promotion, 48% purchased the brand’s products

“We are proud to drive incredible results and engaging campaigns for our brand partners,” says Ted Hastings, CEO at Perk. “The biggest challenge for advertisers and brands is to get people to actively engage and take action. By utilizing second-screen engagement strategies and Perk IQ, we are able to drive specific actions and encourage consumers to interact with brands via exclusive content offered through the Perk Rewarded Engagement Platform.”

Perk recently announced the launch of Perk IQ, which offers brand and agency partners advanced audience targeting and insights capabilities. Partners are able to obtain insights throughout the entire buyer’s journey, including the ability to tie content and advertising engagement to in-store visits, brand lift, and purchase behavior. Pre-campaign and post-campaign studies are available for all Perk media partners.

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including which may relate to, but which may not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; and the success of new products developed by Perk; Perk’s ability to retain key members of its management team. Perk does not undertake to update any forward-looking statement, except as required by law.

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Perk Releases 2016 Holiday Shopping Season Perk IQ Study

AUSTIN, Texas–October 12, 2016 – Perk Inc. (TSX: PER) (“Perk” or “the Company”), the Rewarded Engagement Platform that connects brands with consumers, today announces the results of a 2016 consumer holiday shopping study conducted through Perk IQ™, a built-in analytics solution which offers advanced audience targeting and insights capabilities.

The Perk IQ study collected opinions about holiday shopping plans through Perk’s panel of members. According to the study:

  • 89% of shoppers still do not know where they will do all their holiday shopping this year
  • Online research was the top source of holiday shopping influence in 2015, followed very closely by TV ads, word of mouth, and online ads.
  • 68% of shoppers claimed that online ads would be helpful to think of new gift ideas or shopping locations this year
  • 9 out of 10 people who plan to shop exclusively online said that a discount or promotion would convince them to shop in a store

Joe Tartaglia, VP of Sales and Strategic Partnerships, says, “The holidays are an important time for our brand and retail partners, and this year will be no exception. Our study shows that shoppers will be looking both online and on TV for holiday shopping ideas and deals this year, with online’s influence bigger than it ever has been before. We look forward to using the insights from this Perk IQ study to help our brand partners create and run successful campaigns in the upcoming holiday season and beyond.”

This Perk IQ study was conducted via an online survey of Perk users during Q3 2016. The full report on the results of this study can be accessed here.

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including which may relate to, but which may not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; and the success of new products developed by Perk; Perk’s ability to retain key members of its management team. Perk does not undertake to update any forward-looking statement, except as required by law.

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[New Report] 89% Don’t Know Where They’ll Shop For Holiday 2016

It’s that time again! The holidays and the holiday shopping season are fast approaching.

But even though Santa’s global journey is still about three months away, shoppers are gearing up for an early holiday shopping season.

In a new Perk IQTM survey, over half of respondents claimed that all their holiday shopping would be completed by the first week of December. Only one in three shoppers will be making any purchases in the week before the holidays.

So savvy brands and retailers will get their messages out early. And there’s a clear advantage to those holiday marketing early birds.

Even though people know when they will do their shopping, they’re still not sure where. Only 11% have decided where they will do all their shopping this holiday, meaning that nine in ten people still have decisions to make.

How do you get them to buy their gifts from you?

It’s important to consider which messaging channels work during the holidays. Gift ideas come from a number of sources, but there were clear leaders of the pack last year. Online research was the top source of holiday shopping influence in 2015, followed very closely by TV ads, word of mouth, and online ads.

screen-shot-2016-10-12-at-10-33-04-am

We don’t have to tell you how important the internet is for shopping. But just in case you needed a reminder, did you notice how both online research and paid online ads topped the list?

68% of respondents claimed that online ads would be helpful to think of new gift ideas or shopping locations this year. We expect holiday shoppers to research and buy online in record numbers this year. Make sure your online and mobile messaging is ready to meet your shoppers where they are.

Interesting in-store insights emerged too. If your goal is to get shoppers into brick-and-mortar this holiday, 9 out of 10 people who plan to shop exclusively online said that a discount or promotion would convince them to shop in a store. Ease of shopping and a large in-stock selection are also motivators, reaching 55% and 49% respectively.

To view the full results of the Perk IQ holiday survey, click here to get the PDF.

report_cta

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Perk Buys Back Entirety of Perk Securities From Function(X), Inc.

AUSTIN, Texas–September 29, 2016–Perk Inc. (TSX: PER) (“Perk” or the “Company”), the Rewarded Engagement Platform that connects brands with consumers, today announced that it has repurchased for cancellation certain Repurchased Securities (as defined below) from Function(X), Inc. (formerly Viggle Inc.) (“FNCX”) in exchange for payment to FNCX of aggregate cash proceeds of USD $1,300,000 (the “Transaction”). Perk and FNCX entered into a securities purchase agreement (the “Agreement”) earlier today in respect of the Transaction and the Transaction closed concurrently upon signing the Agreement.

The Repurchased Securities were issued to FNCX on February 8, 2016 in connection with the purchase by Perk of all of FNCX’s interests in the Viggle App (the “Viggle Acquisition”), including its rights to the Viggle name and brand and such Repurchased Securities consist of the following:

  • 1,012,968 Perk common shares, of which 562,500 shares were being held in escrow until February 8, 2017 as security for FNCX’s indemnification obligations pursuant to the Viggle Acquisition
  • 1,000,000 warrants to purchase Perk common shares exercisable at CDN $6.25 per share if the Perk common shares trade above CDN $12.50 for 20 consecutive trading days in the two year period following February 8, 2016
  • 1,000,000 warrants to purchase Perk common shares exercisable at CDN $6.25 per share if the Perk common shares trade above CDN$18.75 for 20 consecutive trading days in the two year period following February 8, 2016
  • FNCX’s right to be issued 2,000,000 Perk common shares if Perk’s total revenue exceeds USD $130,000,000 in 2016 or 2017

As of the date hereof, after taking into account the Transaction, FNCX no longer holds any securities or rights to acquire securities, in Perk and there are 18,564,408 common shares and 652,502 Class A restricted voting shares in the capital of Perk issued and outstanding. Since June 30, 2016, and after taking into account this Transaction and the completion of the purchase for cancellation of all shares of Perk held by Mr. Roj Niyogi on September 15, 2016, Perk’s outstanding shares (including its Class A restricted voting shares) has been reduced by 17.6%.

Management Commentary

Ted Hastings, Chief Executive Officer of Perk, stated: “We are very pleased to close this Transaction with FNCX, which serves as a mutually beneficial transaction for Perk and FNCX and their respective shareholders. FNCX has completed a liquidity event that it was seeking to complete and Perk is able to both simplify its capital structure and enhance earnings potential through the reduction of its outstanding shares. We believe our current share price does not accurately reflect the value of the Company and this Transaction allows us to buyback Perk securities at a fair discount to current market prices given our average daily trading volumes. This Transaction reflects management’s confidence in the value of the Company as we head into Q4, our seasonally best quarter of the year.”

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including which may relate to, but which may not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; and the success of new products developed by Perk; Perk’s ability to retain key members of its management team. Perk does not undertake to update any forward-looking statement, except as required by law.

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Two Perk Apps Rank in the Top Ten Most Addictive According to New Research

AUSTIN, Texas–September 21, 2016–Perk Inc. (TSX: PER) (“Perk” or “the Company”), the Rewarded Engagement Platform that connects brands with consumers, today announces that two of its apps, Unlock and Win! and Viggle, have ranked in the top ten in a SurveyMonkey study of the 101 Most Addictive Apps on Mobile.

The 101 Most Addictive Apps on Mobile ranking was published by SurveyMonkey. The ranking was determined using data on the average number of days per week people used apps on iOS and Android in the U.S. as of mid-2016.

Perk’s Unlock and Win! App ranked as the #3 most addictive among the top 101, averaging 5.4 days of use per week. Perk’s Viggle App ranked as the #6 most addictive among the top 101, averaging 5.1 days of use per week. These surpassed large mobile players including Snapchat (#13) and Instagram (#30).

“Seeing two Perk apps at the top of the 101 Most Addictive Mobile Apps ranking validates our platform and apps as highly engaging experiences for our users,” says Ted Hastings, CEO of Perk. “The fact that Unlock and Win! and Viggle users interact more days per week than some of the biggest names in the mobile ecosystem proves that Perk provides valuable opportunities for our brand advertisers and is a valuable part of our users’ lives.”

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

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Perk Reports Surojit Niyogi – Holdings in Perk Inc.

AUSTIN, Texas–September 20, 2016–Perk Inc. (TSX:PER) (“Perk” or “the Company”) today announced that on September 15, 2016, Mr. Surojit Niyogi, in a series of transactions pursuant to which he purchased all of the issued and outstanding shares of Corona Labs Inc. (“Corona”) from Perk disposed of all his shareholdings in Perk consisting of 1,879,532 Perk common shares and 1,505,972 Perk Class A Restricted Voting Shares. In connection with the transactions Mr. Niyogi was also paid USD$1,750,000 by Perk, and over the 12 month period following closing of the transactions, Perk will pay up to a maximum of USD$750,000 in services to help facilitate the transition of Corona’s operations to Mr. Niyogi.

As a result of the transactions, Mr. Niyogi no longer holds any shares in the capital of Perk.

A copy of the early warning report to be filed by Mr. Niyogi in connection with the transactions referred to in this press release is available as www.SEDAR.com or by calling Perk’s general counsel at (519) 827-1999 x2014.

Mr. Niyogi’s address is:

c/o Corona Labs Inc.
1900 Embarcadero Road, Suite 207
Palo Alto, California 94303

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

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Perk Sells Corona Labs, Retains Exclusive Rewards Platform Relationship

AUSTIN, Texas–September 15, 2016–Perk Inc. (TSX: PER) (“Perk” or “the Company”), the Rewarded Engagement Platform that connects brands with consumers, today announced that pursuant to a series of transactions it has completed the sale of Corona Labs Inc. (“Corona”) to Roj Niyogi, Chief Executive Officer of Corona, and the purchase for cancellation of all of the shares of Perk held by Mr. Niyogi (collectively, the “Transaction”). Perk and Mr. Niyogi entered into a stock purchase agreement earlier today in respect of the Transaction (the “Agreement”) and the Transaction closed concurrently upon signing of the Agreement.

In connection with the completion of the Transaction, Mr. Niyogi returned to Perk for cancellation 1,879,532 common shares and 1,505,972 Class A restricted voting shares in the capital of Perk representing all of the shares held by Mr. Niyogi in Perk and Perk paid to Mr. Niyogi aggregate cash proceeds of USD$1,750,000. Additionally, over the 12 month period following closing of the Transaction, Perk will pay up to a maximum of USD$750,000 in services to help facilitate the transition of Corona’s operations to Mr. Niyogi.

Mr. Niyogi has further announced that he has stepped down from his roles as President and Board Member of Perk effective today to focus on leading Corona. In connection with his resignation, the 410,000 options to acquire common shares in the capital of Perk held by Mr. Niyogi pursuant to Perk’s employee stock option plan have been cancelled.

As of the date hereof, after taking into account the Transaction, there are 19,475,349 common shares and 652,502 Class A restricted voting shares in the capital of Perk issued and outstanding.

Ted Hastings, Chief Executive Officer of Perk, stated: “We acquired Corona last year with the goal of getting access to a large pool of third-party app developers to rapidly extend our Perk platform. We integrated our platform earlier in 2016 and as the competition for mobile development engines accelerated we looked at strategic options that would allow both Perk and Corona to thrive given the increased investment required for Corona. We are very pleased with the agreement we completed with Roj for several reasons – most importantly it will allow both Perk and Corona to focus and invest appropriately. Perk is able to continue to distribute our rewards platform through Corona through an exclusive partnership while redeploying the previous investment in Corona, which was in excess of USD$1,000,000 on a quarterly basis, towards accelerated sales and marketing efforts that will improve Perk’s business fundamentals. I’d like to thank Roj for his contribution to Perk from co-founding the business to leading Corona as a global mobile development engine.”

Perk retains a strategic relationship with Corona Labs, as the exclusive rewards platform for Corona’s community of 300,000+ developers worldwide.

Mr. Niyogi stated: “I’m excited for the next chapter in building Corona and also for the ongoing partnership with Perk. It has been an amazing experience from co-founding Perk, taking it public on the TSX, and now focusing on Corona.”

Additional information regarding the Transaction can be found in the Material Change Report filed by the Corporation in respect of the Transaction, which is available on SEDAR.

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

About Corona Labs

Corona is the leader in 2D game and app development and is reinventing how the world builds apps and games for mobile, connected TV, and desktop platforms. Corona’s flagship product, Corona SDK, is the world’s most advanced development platform, empowering developers to build apps faster for iOS, Android, tvOS, OS X, and Windows – all with a single code base. Experienced by more than 300,000 developers around the globe and with hundreds more signing up daily, apps built with the Corona platform enjoy a combined total of over 1.6 billion user sessions each month.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including which may relate to, but which may not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; and the success of new products developed by Perk; Perk’s ability to retain key members of its management team. Perk does not undertake to update any forward-looking statement, except as required by law.

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