PRESS RELEASES

Kidoz Inc. Announces Q1 2019 Results

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ANGUILLA, B.W.I., May 15, 2019 – Kidoz Inc. (TSXV:KIDZ) (previously Shoal Games Ltd.) (the “Company”), kid-tech software developer, owner of the KIDOZ content discovery network, the KIDOZ Kid-Mode Operating System (www.kidoz.net), the Rooplay edu-games platform (www.rooplay.com), and publisher of the Rooplay Originals games library, announced today its unaudited financial results for the first quarter ended March 31, 2019. All amounts are presented in United States dollars and are in accordance with United States Generally Accepted Accounting Principles.

Recent Kidoz Inc. highlights include:

  • Revenue increase to $305,956 for the first quarter of fiscal 2019
  • Completed the acquisition of Kidoz Ltd.
  • Closed a private placement of US$2,000,000
  • Completed Company name change to Kidoz Inc.
  • Changed TSX Venture Exchange stock ticker symbol to KIDZ
  • Implemented the Direct Registration System (DRS) service for shareholders

“The combination of KIDOZ and Shoal Games has created a unique Company in the KidTech market,” commented Jason Williams, KIDOZ Co-CEO.  “The Acquisition enables the global reach of the KIDOZ content discovery network to be efficiently combined with the Rooplay subscription OTT platform and Rooplay Original games. The combined company is positioned to grow through our exclusive ownership of both content and distribution.  The KIDOZ network reaches tens of millions of kids each month attracting top advertisers and allowing the insertion of our proprietary OTT subscription platform which we intend to scale globally.  Media budgets continue to shift from Linear TV to digital platforms like KIDOZ as brands seek to engage their customers where kids spend most of their screen time.  Digital media buying in the kids market is constrained by the requirement imposed on companies by regulators for the content to be COPPA (in the US) and GDPR-K (in Europe) compliant. The KIDOZ business has been focused, since inception, to meet these stringent requirements thereby making it one of the most respected and safe kids solution providers in the market.  KIDOZ management believes that with the further development of both the Rooplay and KIDOZ platforms, and the integration of EdTech content into our global network, that we can create a unique and defensible position in the market.”

First Quarter Financial Results

Total Current Assets as at March 31, 2019 were $3,033,657 and Total Current Liabilities were $789,985.

Total revenue, net of platform fees to Apple, Google and Amazon, for the quarter ended March 31, 2019, increased to $305,956, an increase from revenue of $17,342, in the fourth quarter of 2018 and an increase from revenue of $24,351 for first quarter of 2018. Ad Tech advertising revenue was $230,862 for the quarter ended March 31, 2019. Content revenue increased to $75,094 for the quarter ended March 31, 2019, an increase from revenue of $17,342, in the fourth quarter of 2018 and an increase from revenue of $24,351 in the first quarter of 2018. The increase in total revenue compared to the first and fourth quarter of fiscal 2018, is due to acquisition of Kidoz Ltd.

Sales and marketing expenses were $86,352 for the quarter ended March 31, 2019, an increase of 99% from sales and marketing expenses of $43,291 in the fourth quarter of fiscal 2018 and a decrease of 45% over expenses of $157,184 in the first quarter of fiscal 2018. The increase in sales and marketing expenses compared to the fourth quarter of fiscal 2018 is due to the acquisition of Kidoz Ltd. in the quarter ended March 31, 2019. The decrease in sales and marketing expenses in the quarter ended March 31, 2019, compared to the first quarter of fiscal 2018 was due to reduced marketing campaigns in the first quarter of fiscal 2019, due to delays in launching Rooplay on additional platforms. Selling and marketing expenses principally include sales staff and the publishing services and user acquisition costs to acquire players.

General and administrative expenses consist primarily of premises costs for our offices, legal and professional fees, and other general corporate and office expenses. General and administrative expenses increased to $105,928 for the quarter ended March 31, 2019, an increase of 51% from costs of $70,087 in the fourth quarter of 2018 and an increase of 27% from costs of $83,708 for the first quarter of fiscal 2018. The increase in general and administrative expenses compared to the first and fourth quarter of fiscal 2018, is due to the acquisition of Kidoz Ltd. and costs incurred to change the name of the Company to Kidoz Inc. in the quarter ended March 31, 2019.

Salaries, wages, consultants, and benefits increased to $288,663 for the quarter ended March 31, 2019, an increase of 99%, over salaries, wages, consultants, and benefits of $145,169 in the fourth quarter of 2018 and an increase of 79% compared to salaries, wages, consultants, and benefits of $161,422 in the first quarter of 2018. This increase compared to the first and fourth quarter of fiscal 2018, is due to the acquisition of Kidoz Ltd. and higher consulting charges incurred for the Company.

The Company does not capitalize its development costs. The Company expensed $254,457 in content and software development costs during the quarter ended March 31, 2019, an increase of 24% in content and software development costs of $204,787 expensed during the fourth quarter of 2018 and a decrease of 6% in content and software development costs compared to content and software development costs of $270,619 expensed during the first quarter of fiscal 2018. The increase in content and software development expenses compared to the fourth quarter of fiscal 2018 is due to greater software development expenses, particularly development staff, incurred in the development of Rooplay Originals and related technology. The decrease compared to the first quarter of fiscal 2018 is due to less development staff incurred in the development of Rooplay Originals and related technology in the first quarter of fiscal 2018 which is offset by the acquisition of Kidoz Ltd. and the development of the Kidoz Ltd technology.

The net loss after taxation for the quarter ended March 31, 2019, amounted to ($826,304), a loss of ($0.01) per share, compared to a net loss of ($370,814), or ($0.01) per share in the fourth quarter of fiscal 2018 and compared to a net loss of ($835,368) or ($0.01) per share in the quarter ending march 31, 2018.  This increase in total loss for the quarter compared to the fourth quarter of fiscal 2018 includes the one-time restructuring and acquisition costs of Kidoz Ltd.

During the quarter ended March 31, 2019, we used cash of ($608,546) in operating activities compared to using cash of ($356,011) in the fourth quarter of 2018 and compared to cash used in operating activities of ($657,412) in the same period in the prior year.

Net cash generated by financing activities was $1,616,678 in the quarter ended March 31, 2019, which compares to cash used by financing activities of $734 in the fourth quarter of fiscal 2018 and to cash generated by financing activity of $2,286,742 in the same period in the prior year.

We had cash and cash equivalents of $1,831,085 and working capital of $2,278,297 at March 31, 2019.  This compares to cash and cash equivalents of $641,536 and working capital of $662,573 at December 31, 2018

For full details of the Company’s operations and financial results, please refer to the Securities and Exchange Commission website at www.sec.gov or the Kidoz Inc. corporate website at https://investor.kidoz.net or on the www.sedar.com website.

About Kidoz Inc.

KIDOZ Inc. (TSXV:KIDZ) (www.kidoz.net) is the Internet of Kids (IoK).  Engaging more than 50 million kids a month across the leading mobile KidTech network, KIDOZ provides an essential suite of services that unites kids brands, content publishers and families. Trusted by Disney, Hasbro, Nintendo, Lego and more, the KIDOZ Network helps the world’s largest brands to safely reach and engage kids across thousands of mobile apps and sites. The KIDOZ OS solution helps carriers and brands such as Lenovo, Acer, and PBS Kids bring a kid-focused experience to their family devices, in a fully GDPR and COPPA compliant way.  KIDOZ’s Rooplay (www.rooplay.com) offers an interactive learning experience worldwide with original content featuring Garfield, Moomin, Mr. Men, Little Miss, Mr. Bean and hundreds more kid-focused learning games.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements.  Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to anticipated future success of the company.  Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company.  For a description of additional risks and uncertainties, please refer to the company’s filings with the Securities and Exchange Commission.  Specifically, readers should read the Company’s Annual Report on Form 10-K, filed with the SEC on March 21, 2019, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005 and the SB2 filed July 17, 2007, and the TSX Venture Exchange Listing Application for Common Shares filed on June 29, 2015 on SEDAR, for a more thorough discussion of the Company’s financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Shoal Games Ltd.

For more information contact:

Henry Bromley
CFO
ir@kidoz.net
(888) 374-2163

KIDOZ Operational Integrations and Corporate Merger Now Complete

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ANGUILLA, B.W.I., May 2, 2019 – KIDOZ Inc. (TSXV:KIDZ) (the “Company”), kid-tech software developer, owner of the KIDOZ content discovery network, the KIDOZ Kid-Mode Operating System (www.kidoz.net), the Rooplay edu-games platform (www.rooplay.com), , and publisher of the Rooplay Originals games library, announced today that it has completed its restructuring, launched a revised version of its corporate website www.kidoz.net, and  has returned focus to the sales, marketing, and development of its suite of products.

Since the Shoal Games Ltd. acquisition of Kidoz Ltd. of Israel was completed on March 4, 2019, the Company has changed its name to Kidoz Inc.; changed its ticker symbol on its main trading exchange, the TSX.V, to KIDZ; changed its ticker symbol on the OTCQB to KDOZF for US priced quotes and information purposes; and completed the evaluation and implementation of the technical, accounting, and operational processes at the two Companies.

Significant advancements have been made in the combined Company’s accounting processes to ensure that the tight public company reporting requirements can be met by all of the KIDOZ operating units. Further, KIDOZ has unified its communication, development, and sales operations to ensure visibility across the Company’s multiple offices. The installation of collaboration tools to foster remote co-working and increase transparency between the previously separate companies is helping to increase productivity and advance the capacity of the sales pipelines at KIDOZ. By completing the detailed business and technical evaluations prior to closing March 4, management was able to determine the preferred solutions and complete the system migrations successfully over the past few weeks.

The Company website located at www.kidoz.net was updated to include an introduction of a dedicated investor area (http://investor.kidoz.net). A second phase of website development is underway to promote the synergies between the merged companies. These synergies include the unification of the KIDOZ OS and Rooplay original content more closely which, once complete, provide an end-to-end kids content and operating system solution to OEMs and mobile carriers. An additional synergy is the Rooplay Original games library and our content development studios which empower the KIDOZ media sales team to create special “playable” ads that are becoming one of the most effective and requested campaign types by kids brands. As KIDOZ is the world’s most popular kids focused mobile SDK, brands are benefiting from the high impact and engagement that these special campaigns can offer.

Media sales on the KIDOZ network have been strong during the quarter and the Company’s business plan is  progressing on schedule. While the first quarter of 2019 will have less than 30 days of revenues from the Kidoz Ltd. network and contain all of the one-time expenses associated with the merger, the KIDOZ team anticipates a record year of sales as media budgets continue to shift from Linear TV to digital platforms like KIDOZ as brands seek to engage their customers where they spend most of their screen time. Digital media buying by kids brands is expected to pass 1 billion dollar this year, and KIDOZ is considered one of the most respected and known brands in the market.

About KIDOZ

KIDOZ Inc. (TSXV:KIDZ) (www.kidoz.net) is the Internet of Kids (IoK). Engaging more than 50 million kids a month across the leading mobile KidTech network, KIDOZ provides an essential suite of services that unites kids brands, content publishers and families. Trusted by Disney, Hasbro, Nintendo, Lego and more, the KIDOZ Network helps the world’s largest brands to safely reach and engage kids across thousands of mobile apps and sites. The KIDOZ  OS solution helps carriers and brands such as Lenovo, Acer, and PBS Kids bring a kid-focused experience to their family devices, in a fully GDPR and COPPA compliant way. KIDOZ’s Rooplay (www.rooplay.com) offers an interactive learning experience worldwide with original content featuring Garfield, Moomin, Mr. Men, Little Miss, Mr. Bean and hundreds more kid-focused learning games.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in
this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains
statements that are forward-looking, such as statements relating to anticipated future success of the company. Such forward-looking  information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company’s filings with the Securities and Exchange Commission. Specifically, readers should read the Company’s Annual Report on Form 10-K, filed with the SEC on March 21, 2019, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005 and the SB2 filed July 17, 2007, and the TSX Venture Exchange Listing Application for Common Shares filed on June 29, 2015 on SEDAR, for a more thorough discussion of the Company’s financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Shoal Games Ltd.

For more information contact:
Henry Bromley
CFO
ir@kidoz.net
(888) 374-2163

Shoal Games Ltd. Announces Proposed Change of Name to “Kidoz Inc.”

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ANGUILLA, B.W.I., March 22, 2019 – Shoal Games Ltd. (TSXV: SGW) (the “Company”), kid-tech software developer, owner of the Rooplay edu-games platform (www.rooplay.com), owner of the Kidoz content discovery network (www.kidoz.net), owner of the Kidoz safe operating system, and publisher of the Rooplay Originals games library, announced today that its shareholders, by written consent of the holders of 70.6 % of the issued and outstanding common shares of the Company, which exceeds the minimum shareholding required under the by-laws of the Company for shareholder action in writing, have resolved to change the name of the Company to “Kidoz Inc.” and amend the articles of incorporation of the Company accordingly, subject to approval and acceptance by the TSX Venture Exchange.

“Management decided to make the name change to better reflect the Company’s strategy and focus on kid technology,” commented Jason Williams, Co-CEO of Shoal Games.  “Kidoz is a powerful brand that has excellent awareness in the market and established trust with our brand partners and customers.  We are committed to bringing safe and engaging content and systems to our clients and the name Kidoz best reflects this mission.”

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Shoal Games Ltd. Announces Fiscal 2018 Financial Results

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ANGUILLA, B.W.I., March 21, 2019 / Shoal Games Ltd. (TSXV:SGW) http://www.shoalgames.com (“the Company”), kid-tech software developer, owner of the Rooplay edu-games platform (www.rooplay.com), owner of the Kidoz content discovery network (www.kidoz.net), owner of the Kidoz safe operating system, and publisher of the Rooplay Originals games library, today announced its audited financial results for the Year ended December 31, 2018. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

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Shoal Games Completes Acquisition of Kidoz Ltd.

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Shoal Games’    Rooplay OTT System and the Kidoz Network will Reach 50 Million Kids a Month with a Premium Subscription System Offering

ANGUILLA, B.W.I., March 4, 2019 – Shoal Games Ltd. (TSXV: SGW) (“Shoal Games” or the “Company”), mobile software developer, owner of the Rooplay edu-games platform (www.rooplay.com) and publisher of the Rooplay Originals games library, has successfully completed its acquisition of all of the issued and outstanding shares of Kidoz Ltd. (“Kidoz”), the Israel-based industry-leader in the global kids’ content distribution and monetization marketplace (the “Acquisition”), as previously announced in the Company’s news release dated December 28, 2018.

The Acquisition enables the global reach of Kidoz’s content network to be efficiently combined with Shoal Games’ Rooplay subscription OTT platform, to create a unique player in the high growth digital kids market.  The combined company is positioned to grow through exclusive ownership of content which the Kidoz network will make accessible to tens of millions of kids each month, utilizing a proprietary OTT subscription platform and a kid-safe monetization platform to attract top kids advertisers.

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