For the year ending Dec. 31, 2021, revenue slipped 8.5% below full-year 2020 revenue, but GAAP net loss fell from $21.7 million to $5.3 million , an improvement of 75.9%.
Las Vegas, NV, April 01, 2022 (GLOBE NEWSWIRE) — 12 ReTech Corporation (OTC: RETC), today announced that it has filed its Form 10-K with the United States Securities and Exchange Commission for the fiscal year ended December 31, 2021, which includes its financial results for the combined operations of the Company and its subsidiaries for its fiscal year ended December 31, 2021.
For the full fiscal year ended December 31, 2021, the Company reported revenue of $660,206 compared to $721,312 for its prior fiscal year of 2020. This represents a revenue decline of $61,106 or 8.5%. Revenue in 2020, a year of the COVID-19 pandemic, represents business generated in the first two months of this year for all stores, then one store in the last four months of 2020 at the Mohegan Sun complex. From March 2020 to August 2020, our store operations at the Mohegan Sun complex were closed by local government mandate. After February 2020, the rest of our airport stores were closed and this continues until today as we have not reopened any of the airport stores yet. Revenue from our Rune NYC, LLC fashion apparel business was negatively impacted similarly to the fashion boutiques of other Rune customers which faltered during the pandemic.
In September 2020 we re-opened our store at Mohegan Sun Resort which operated at a much reduced level compared to previous years. In-store traffic compared to previous years has dropped significantly since our reopening. This continued throughout 2021 as we saw a decline in operating results throughout the year. To date, we have not reopened any of our airport stores. Rune NYC, LLC’s fashion apparel business suffered a similar fate in 2021.
For the full year ending December 31, 2021, the Company’s net loss was $5,236,605 compared to a net loss of $21,718,593 in 2020. This represents an improvement of $16,481,988 or 75.9%. for the twelve months of 2021 compared to the results of the previous year. Almost all improvements were non-operational in nature. There have been substantial improvements in the “Other income (expenses)” categories which are presented in the table below.
The following is a summary of our financial results. A full copy of our 2021 balance sheet and income statement is attached at the bottom of this press release.
12 ReTech Corporation GAAP Consolidated Statements of Income (Audited)
Angelo Ponzetta, CEO of 12 ReTech Corporation, said, “Our fiscal 2021 results, while improved, are not where we want to be. We are recovering from a two-year pandemic where most of our operational activities have been severely impacted since the start of 2020. We believe this pandemic has permanently changed the way people shop and interact with merchants, we So let’s change direction and have invested in reshaping our business for the future.
Mr. Ponzetta continued, “During the last quarter, we briefly discussed a new effort to create a social shopping mobile app. I would like to reiterate our efforts here.
“We are investing in and developing a mobile social shopping app, which we plan to beta test in the second half of 2022. This app will be designed to bring consumers to small mom-and-pop retailers that compete with large retailers such as Walmart and Amazon. We anticipate that these smaller retailers, who have physical commerce and e-commerce businesses, should receive new customers by joining our network. We think they will be willing to pay us a commission when they sell something to their new customers. Small retailers generally do not have the resources to compete with large retailers who have the resources to corner a large portion of the retail channel. Today, without our app, smaller retailers could partner with their larger competitors, only to have their ideas cannibalized through the same channels they use for marketing. Retailers in our network will pay us a fee when they receive a completed sale transaction. They won’t have to pay us for “looky-loos”. We will communicate to investors as milestones are reached, but we are very excited about the potentially game-changing nature of our new app. »
“Non-GAAP Discussion of 2021 Financial Results”
On a non-GAAP basis, excluding non-cash financing costs, non-cash reserve expenses and any changes in derivative liabilities, the Company’s non-GAAP net loss in 2021 was 1,345 $155, compared to a non-GAAP net loss of $1,894,897 in 2020. This represents an improvement of $549,702. or29.0% non-GAAP net loss in 2021 when measured against 2020. , 2021.
12 ReTech Corporation Comparison between GAAP and non-GAAP income statements
Please note that all references to Form 10-Kare figures or data are limited or summarized for discussion purposes. For accurate and complete figures, data and disclosures, reference is made to the 2021 Actual Fiscal Year 10-Kon File with the SEC and available for viewing at www.sec.gov.
Angelo Ponzetta concluded: “We need to change our path following the changes in buyers and traders that have occurred during the pandemic. Therefore, we are investing in our mobile application. Our belief is that the world of shopping is constantly changing and that is what we are aiming our efforts towards in the future.
About 12 ReTech Corporation:
12 ReTech Corporation is primarily a technology company focused on the retail experience, both online and in physical stores, for consumers and small merchants.
Our software, both deployed and in development, is designed to enable small merchants to effectively compete with retail giants like Walmart and Amazon, and to attract, retain and delight consumers online and in physical stores, without depending on Google, Facebook/Instagram and Amazon.
Our AI Social Shopping platform app, which is currently in development, will allow merchants to connect directly with consumers and provide merchants with tools to protect their brand and reduce their marketing costs that will be results-driven, not only on the “looky-loos”.
For consumers, the APP allows them to support their favorite local businesses and find new merchants they might be interested in, while earning money through their social communications and posts.
The Company has also acquired retail and wholesale operating companies that will allow us to test our technology on real consumers and demonstrate their success to other merchants while generating revenue for the Company.
As an innovative retail technology company that has been built through acquisitions and insights, we will continue to seek additional synergistic acquisitions that will bring incremental revenue and profitability, as well as access to products that will inspire merchants and consumers to quickly adopt our social shopping app.
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as: “anticipate”, “intend of”, ” “plan”, “goal”, “seek”, “believe”, “project”, “estimate”, “expect”, “strategy”, “future”, “probable”, “may” , “should”, “will”, and similar references to future periods.
Forward-looking statements are neither historical facts nor guarantees of future performance. Instead, they are based solely on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are beyond our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Accordingly, you should not rely on any such forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those set forth in the forward-looking statements include, among others, the following: the Company’s ability to successfully implement its recovery strategy, changes in raw material costs, labor and benefits, as well as general market conditions, competition and prices
Any forward-looking statement we make in this press release is based solely on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to update publicly any forward-looking statements, written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Investor Relations Contacts:
Mark Gilbert Magellan FIN, LLC [email protected] 317-361-2392 (US)
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