Source: RIWI Corp.
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  • RIWI (RIWI) provides updates on subscription sales, ROM acquisition and Q2 financials
  • RIWI (RIWI) is a global trend-tracking and prediction technology firm
  • RIWI (RIWI) is down today trading at C$0.65 per share at 4:26 pm ET

RIWI (RIWI) has updated its subscription sales, ROM acquisition and Q2 financials.

Acquisition of Research on Mobile (ROM)

Research on Mobile (ROM) is a research platform that profiles survey respondents and matches them to global research marketplaces (where commercial customers buy data). The acquisition of ROM includes a purchase price of US$525,000 cash, with $125,000 going towards expenses related to post-closing adjustments. As part of the agreement, the previous owner of ROM may be entitled to earn-out payments (depending on revenue, profitability targets and employee retention targets) until 2024.

Client contracts

RIWI signed 12 new client contracts in 2nd quarter, including contract signings with three new RIWI customers.

Q2 financials

RIWI earned $368,680 in revenues in Q2 (compared to $1,260,250). This is part of the company’s strategic plan to focus on the acquisition of ROM. RIWI’s year-over-year decrease in revenue for Q2 is partially due to the transition away from shorter-term, project-based initiatives, offering immediate profit.

There is no ROM revenue included in these financials, however, there are $78,375 costs included as part of the transaction. ROM-related payments will be included in the company’s results next quarter. The decline in revenue was also affected by a delay in revenue recognition of approximately $400,000, which, historically, has been recognized by the company in the 2nd quarter, but this year did not meet the IFRS revenue recognition criteria. The decrease is also a result of the departure from salespeople selling mainly professional services projects; the company continues to recruit new sales, and technical personnel focused on selling data products and subscriptions and resulting in a net loss of $658,318 for Q2, as compared to a net profit of $45,241 for the previous quarter.

Q2 total cash and cash equivalents were $3,235,078, compared to $3,257,147 for the previous quarter, representing a year-over-year decrease of $22,069, a decrease of less than 1 percent. Prepaid expenses and other current assets include an amount of $379,604 wired for the upfront payment of ROM on July 1, 2022.

RIWI received a substantial increase in high-profile international recognition (peer-reviewed academic journals, client reports and international media) for its innovative technology, data quality, and access to global data. This external recognition includes validating RIWI’s technology as an effective system to collect Covid-19 vaccination rates in real-time across the U.S, co-authored by researchers at Johns Hopkins University and Emory University, and many publications from reputable journals throughout the medical industry.

RIWI (RIWI) is a global trend-tracking and prediction technology firm. On a monthly or annual subscription basis, RIWI offers its clients tracking surveys, continuous risk monitoring, predictive analytics and ad effectiveness tests in all countries – without collecting any personally identifiable data.

RIWI (RIWI) is down today trading at C$0.65 per share at 4:26 pm ET.

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