TSX VENTURE : SLC
FRANKFURT : 06O1
February 19, 2015 18:29 ET
Slyce Reports 2014 Year End and Fourth Quarter Results
TORONTO, ONTARIO--(Marketwired - Feb. 19, 2015) - Visual product search platform Slyce Inc. (TSX VENTURE:SLC)(FRANKFURT:06O1) ("Slyce" or the "Company") today announced its financial results for the year and 4th quarter ended October 31, 2014.
"This past year marked a huge leap forward for Slyce in our growth as a company and our technological breadth," said Mark Elfenbein, President and CEO of Slyce. "The Company made multiple acquisitions during 2014 which brought in exceptional talent and innovative technology. This in turn helped Slyce accelerate its product development schedule and enable it to offer customers sophisticated real-world commerce solutions more quickly.
Slyce has integrated its visual product search capabilities into consumer facing application Pounce making it the first app in the marketplace to facilitate real-world visual search and 1-Tap purchasing across fashion, home décor, hardware, consumer electronics, toys and several other categories via multiple brands and retailers. The Company has also delivered image recognition as a service to clients through its commercial Application Programming Interface ("API") for mobile object recognition. It is expected that several third party branded products with integrated with Slyce technology will launch in the marketplace during 2015.
Slyce continues development on Android versions of its applications and technologies and on its publisher widget. The Company's mobile camera software development kit was launched during 2014 making it easier for retailers to integrate the Slyce image recognition service - via mobile phone camera - into their existing shopping platforms. Already in 2015, the Company has continued on its fast-growth trajectory with the acquisition of US mobile couponing app SnipSnap, announced on January 27, 2015. With the acquisition, Slyce has further expanded its consumer engagement platform for major retailers and brands, both in and out of store."
During the fiscal year ended October 31, 2014, the Company achieved the following business highlights, business development milestones and technological developments:
2014 Business Highlights
October 28 - Neiman Marcus announced its partnership with Slyce to introduce single-tap visual search technology to power its 'Snap. Find. Shop' initiative. The state of the art visual search technology allows NM app users to simply snap an image of fashion items and instantly be provided with all close-matching products currently available from www.neimanmarcus.com. This was a first in the luxury retail sector, and is part of a white label arrangement between the companies.
October 21 - Slyce acquired mobile app agency Drivetrain in a deal worth approximately US$3.5MM. Drivetrain is a prominent mobile app development agency that builds customized apps for leading enterprise and consumer brands. Drivetrain founder and CEO Daniel Grigsby, was named Slyce's CTO.
September 16 - Slyce acquired mobile commerce company BuyCode, Inc and its Pounce mobile payments platform for approximately US$5MM. The Pounce app allows for a single swipe payment transaction across multiple vendors. It is available both directly to consumers and as a private label solution to retail partners and was relaunched with integrated real-world visual product search on November 25.
July 24 - Slyce announced an exclusive agreement with The Purchase Decision Network (PDN), to provide visual product search services for their own "Shopper" app (www.myshopperapp.com) and other 3rd party shopping apps within their network. PDN currently powers 10MM shopping trips by 2MM shoppers monthly across the different shopping experiences provided by its publishing partners.
Recent Technological Developments
Slyce has developed technology for the various aspects of its principal service offering, starting from image recognition modules that allow merchants to make any products in their inventories, websites or catalogues purchasable simply by taking a picture of that item or a similar item.
The technology developed by Slyce comprises four distinct items, as follows:
Image recognition as a service - Our clients are presently able to leverage our commercial Application Programming Interface ("API") for mobile object recognition using our image recognition technology. All technical documentation has been created for the architecture and deployment of the service.
Direct to Consumer App ("DCA") - DCA is Slyce's proprietary shopping application. It is currently in beta testing with a full Graphical User Interface ("GUI"), system architecture documents, and a deployable Android Application Package ("APK") file available for testing and review purposes.
Mobile camera Software Development Kit ("SDK") - Slyce has built a custom mobile SDK for both iOS and Android. This customer SDK is necessary for our clients to use our image recognition service via the camera feature of the mobile phones on the market. The camera SDK is currently commercially available.
Publisher Widget - The publisher widget is currently in a beta stage for internal testing purposes. Although GUI design and preliminary system architecture documents are available, it is not yet at a state of commercial scalability.
Financial Highlights for the Year Ended October 31, 2014
Note: All figures below are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.
Year Ended October 31 2014 2013
Operating Revenue $ 31,627 $ -
Other income 58,176 -
Operating expenses 6,902,081 2,943,750
Amortization, share-based payments and depreciation 929,366 332,638
Listing and other expense 8,861,056 9,947
Total expenses 16,692,503 3,286,335
Net loss (16,602,700 ) (3,286,335 )
Total non-cash expenses of $9,778,982 are Included in the above expenses.
Fourth Quarter Ended October 31 2014 2013
Operating revenue $ 20,384 $ -
Other income 58,176 1,480,144
Operating expenses 1,803,616 1,480,144
Amortization, share-based payments and depreciation 1,416,789 313,067
Listing and other expense 52,694 9,947
Total expenses 3,273,099 1,803,158
Net and comprehensive loss 3,194,539 1,803,158
The financial statements for the year ended October 31, 2014 and Management Discussion & Analysis are available at www.sedar.com.
The Corporation is a visual search technology company based in Toronto, Ontario and is engaged in the business of providing advanced visual search software that allows consumers to purchase products at the moment they discover them - in the real world and online. Slyce powers mobile visual search for several leading retailers including Neiman Marcus and Tilly's.
Slyce has developed an advanced visual search platform that integrates with retail brands and digital content providers to give their customers the ability to instantly discover and purchase products that inspire them by simply snapping photographs with their smartphones or 'clicking' images on either their smartphones (mobiles) or desktop web browsers.
Slyce's strategy is to position itself as a pivotal player in the emerging visual web. Slyce will provide its technology to retailers, brands, app developers and digital publishers, enabling their apps to recognize products for instant purchase. Slyce will provide its technology in exchange for integration, licensing and per search fees, percentage sales splits and big data provision and analysis. Slyce is currently working with a growing list of fortune 1000 brands and companies as well as multiple innovative developers.
Slyce is also listed on the Frankfurt exchange trading under (FRANKFURT:06O1)
For image download and further company information please click for the Slyce Media Kit
The TSX-V has in no way approved nor disapproved the contents of this press release.
Statements in this press release contain forward-looking information including, without limitation, Slyce's business plan, strategy and related milestones, Slyce's suggestions of future outcomes, the future use and development of its technology, future customers and business partners. The words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Slyce.
Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Slyce.
Slyce does not undertake any obligation to update or revise any forward-looking statements except as expressly required by applicable securities laws.
None of the information contained on, or connected to, Slyce's website is incorporated by reference herein.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.