Iota Communications Reports 2019 Fiscal Year End Financial Results and Provides Corporate Update
NEW HOPE, PA / ACCESSWIRE / September 13, 2019 / Iota Communications, Inc. (OTCQB:IOTC), a wireless network carrier and software service company that provides Internet of Things solutions that optimize energy efficiency, sustainability and operations for commercial facilities, today announced its financial results for the 2019 fiscal year ended May 31, 2019.
Fiscal Year 2019 Summary:
- Completion of the Merger between Solbright and M2M to form Iota Communications: We closed the merger with Solbright on September 5, 2018 with the goal of creating a pure-play, vertically integrated Internet of Things business combining a unique, carrier grade wireless network purpose-built for the Internet of Things with an emerging commercial and industrial IoT software applications company. We believe the combined company can fill a gaping hole in the market for reliable, cost effective, secure and valuable commercial and industrial applications.
- Launch of Iota Spectrum Partners: On April 24, 2019 we launched Iota Spectrum Partners, LP with the purpose of owning the FCC spectrum licenses that we currently lease as well as to hold the Company’s spectrum licenses. As lessors exchange their licenses for LP units, the result is a reduction in the revenue-based notes obligation. These exchanges began in mid-August and signed agreements as of today’s date would represent a decrease of approximately $37.3 million in revenue-based note liabilities.
- Key Management Appointments: On May 20, 2019, we announced several executive promotions that led to a restructuring of our workforce that we believe will help us scale our business in the next phase of our growth.
- Financial Results: Total revenue for the company’s fiscal year ended May 31, 2019 increased to $2,305,144 compared to $290,491 for the comparable year ago period. This increase is largely related to the addition of the former Solbright business. Our net loss increased to $56,777,401 from $16,486,146 for the comparable period last year. The increase is significantly in connection with one-time goodwill impairment and merger-related costs. The Company’s financing activities netted $25,300,928 in cash to cover our operating loss and finance our growth.
Terrence DeFranco, President & CEO of Iota, commented, “Fiscal year 2019 was a transitional and transformational year for our Company. As a result of the merger, Iota is significantly positioned to exploit huge opportunities in the Internet of Things market in a very unique way. The foundation of our spectrum assets in Iota Spectrum Partners, our crown jewel, has tremendous asset value and differentiates us from much of the competition. To us, this is the beach front property on which to build a great business. Our network platform in Iota Networks is expected to be a one-of-a-kind wireless connectivity enabler for all types of commercial and industrial IoT applications with reliable, ubiquitous and secure coverage for a fraction of the cost of other solutions. Lastly, Iota Commercial Solutions is positioned to drive revenue and eventually adoption for our network and our own applications, which we believe will demonstrate the value of the network for third party applications. All in all, fiscal 2019 was not an easy year for us, but we accomplished a lot for our stakeholders and expect significant progress towards our goals for the coming fiscal year and beyond.”
The company’s Annual Report on Form 10-K for the period ended May 31, 2019 is on file with Securities and Exchange Commission and can also be found on the company’s website https://www.iotacommunications.com/sec-filings/.
About Iota Communications, Inc.:
Iota is a wireless network carrier system and software applications platform dedicated to the Internet of Things. Iota sells recurring-revenue solutions that optimize energy usage, sustainability and operations for commercial and industrial facilities both directly and via third-party relationships. Iota also offers important ancillary products and services which facilitate the adoption of its subscription-based services, including solar energy, LED lighting, and HVAC implementation services.
This press release may contain “forward-looking statement” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include, but are not limited to,: risks related to the acquisition and integration of the assets we acquired from Solbright Group, Inc., risks related to our growth strategy; risks relating to the results of research and development activities; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; our dependence on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.
Iota Communications, Inc.
540 Union Square
New Hope, PA 18938
Attn: Investor Relations
Public Relations Contact:
Greg Lutowsky, SVP, Corporate Communications
SOURCE: Iota Communications, Inc.
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