Vogogo Releases 2019 First Quarter Financial Results
VOGOGO RELEASES 2019 FIRST QUARTER FINANCIAL RESULTS
TORONTO, Ontario, May 30, 2019 -- Vogogo Inc. (“Vogogo” or the “Company”) (CSE:VGO) today
announces its financial results for the quarter ended March 31, 2019. Selected financial information of
the Company for the three months ended March 31, 2019 and 2018 and the year ended December 31,
2018 is set forth below:
Vogogo mined a total of 1,056 Bitcoin in the three months ended March 31, 2019, at an average price per
Bitcoin for the quarter of $5,054. The Company achieved an Adjusted EBITDA1 of $0.9 million, or $0.07
per outstanding share, resulting in an Adjusted EBITDA Margin1 of 17% for the three months ending
March 31, 2019. The Company’s cost of revenue, which includes electricity cost, contractors’ fees and
general facility operating costs, but excludes non-cash depreciation of mining and infrastructure
equipment, resulted in an average cost per Bitcoin mined of $3,712, a decrease of $974 or 21% from
$4,686 for the three months ended December 31, 2018. The decrease in the cost of mining a Bitcoin is
attributable to the adoption of IFRS 16 Leases which classifies the present value of lease payments as
depreciation expense against right-of-use assets. The cash amount of lease obligations related to mining
was $490,000 which would account for an increase in site operating costs of $132 per coin. A decrease
in the average Bitcoin network difficulty of approximately 9% from the previous quarter increased the
number of Bitcoin mined by the Company and consequently reduced the cost per Bitcoin mined.
The Company reported a net loss of $3.1 million for quarter on revenue of $5.3 million, compared to a
loss of $0.2 million and revenue of nil in the same quarter of the prior year.
The financial statements for the three months ended March 31, 2019 and the related management’s
discussion and analysis (“MD&A”) are available on Vogogo’s SEDAR profile at www.sedar.com.
For information or interview please contact:
Jordan Greenberg
Chief Financial Officer
(647) 715-3707
1 Refer to the “Non-IFRS Measures” section of this news release.
Three Months Ended March 31, Year ended December 31,
2019 2018 2018
Revenue $ 5,339,210 $ — $ 18,079,005
Net loss and comprehensive loss (3,124,358 ) (152,778 ) (74,252,959 )
Adjusted EBITDA 907,318 (122,165 ) 5,018,658
Adjusted EBITDA margin 17 % — 28 %
Adjusted EBITDA per share 0.07 (0.03 ) 0.84
Total assets 23,425,111 17,973,697 17,973,697
Total liabilities 38,235,186 29,710,012 29,710,012
Basic and diluted net loss and
comprehensive loss per common share $ (0.25 ) $ (0.03 ) $ (12.98 )
About Vogogo Inc.
Vogogo currently operates its cryptocurrency mining activities in Québec. This includes mining for
cryptocurrencies for its own account and within mining pools. Vogogo continues to explore opportunities
in all aspects of the cryptocurrency segment.
Cautionary Note Regarding Forward-Looking Information
Certain statements in this press release, including statements with respect to the Company ’s position to
enter other aspects of cryptocurrency mining, contain forward-looking information which can be identified
by the use of forward looking terminology such as "believes", "expects", "may", "desires", "will", "should",
"projects", "estimates", "contemplates", "anticipates", "intends", or any negative such as "does not
believe" or other variations thereof or comparable terminology. No assurance can be given that potential
future results or circumstances described in the forward-looking statements will be achieved or will occur.
By their nature, these forward-looking statements necessarily involve risks and uncertainties, including
the risk that costs will be higher than anticipated reducing margins, that expense reductions will not be
realized, the risk that the price of power to the Company increases and other risks and uncertainties
discussed herein, that could cause actual results to significantly differ from those contemplated by these
forward-looking statements. Such statements reflect the view of the Company with respect to future
events and are based on information currently available to the Company and on assumptions, which it
considers reasonable. Management cautions readers that the assumptions relative to the future events,
several of which are beyond management's control, could prove to be incorrect, given that they are
subject to certain risk and uncertainties, and that actual results may differ materially from those projected.
Other factors which could cause results or events to differ from current expectations include, among other
things, the impact of general economic, industry and market conditions. Management disclaims any
intention or obligation to update or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking information. The Canadian Securities
Exchange has not reviewed, approved or disapproved the content of this news release.
Non-IFRS Measures
Certain terms used in this press release, such as Adjusted EBITDA and Adjusted EBITDA Margin, are not
measures defined under International Financial Reporting Standards (“ IFRS”) as prescribed by the
International Accounting Standards Board, do not have standardized meanings prescribed by IFRS and
should not be compared to or construed as alternatives to profit/loss or other measures of financial
performance calculated in accordance with IFRS. Adjusted EBITDA and Adjusted EBITDA Margin as
computed by the Company may not be comparable to similar measures presented by other issuers. The
Company uses these measures to better assess the Company’s underlying performance and provides
these additional measures so that investors may do the same. Further details on non-IFRS measures are
set out in the Company’s MD&A, which is available on the Company’s SEDAR profile at www.sedar.com.