Lateral posts 1H loss of $634K after August listing

Lateral posts 1H loss of $634K after August listing, still raising capital

By Paul McBeth

Dec. 12 (BusinessDesk) - Lateral Corp, the mobile technology developer, posted a first-half loss in its first earnings result since listing on the NZX Alternative Index in August, and has launched a capital raising programe to fund customer acquisition across the UK, Australia and the US.

The Auckland-based company reported a loss of $633,600 in the six months ended Sept. 30, on revenue of $152,100, it said in a statement. The company increased its Australian subscriber numbers to more than 3,000 in recent months from 700. It is focusing on growing its Australia and UK subscription business, which directly charges services to a customer's phone bill rather than their credit card, and implementing that business in North America.

"Operation costs increased during the first six months of this year, due to the one-off costs of listing and the ramping up of internal resources to meet future growth needs," the company said. "The listing and associated costs are now complete and ongoing operational costs are expected to be relatively stable during the upcoming period of growth."

Lateral listed in August to give it easier access to capital as it looks to build its markets, and signalled plans to raise $2.65 million through private placements and a share purchase plan.

The company had raised $110,000 before the Sept. 30 balance date, and held cash and equivalents of about $64,000 at the end of the period.

"The company will require additional funds for its planned expansion programme," Lateral said in its report. "Subsequent to the end of the period the company is continuing capital raising to fund activities."

Lateral said new capital raised will be used to invest in the acquisition of subscribers in large global markets through the company's network of affiliates and partners.

The shares were unchanged at 28 cents, above the 20 cents listing price, and valuing the firm at almost $6 million.

(BusinessDesk)

© Scoop Media