23rd Mar 2016 09:50
LONDON (Alliance News) - CloudTag Inc on Wednesday said its loss widened in 2015 after it increased spending in the year, and said that although the company is on "solid financial foundations" it may need to raise further funds before it begins to breakeven.
The developer of personal performance monitoring for the health and fitness markets reported a pretax loss of GBP2.0 million in the year to the end of September, widening from the GBP1.3 million loss booked in 2014 as costs increased.
CloudTag, which does not generate any revenue, said costs increased as a result of increased spending on product development to GBP698,000 from GBP629,000, whilst other administrative expenses also increased to GBP846,000 from GBP830,000.
Since the end of the financial year, CloudTag has launched its first product pair, CloudTag Track and the beatSMART Clip, after presenting it at the Consumer Electronics show in Las Vegas in the US.
"CloudTag has developed ahead of my planned strategy, and recently launched what we believe will be a leading product in our market, with capabilities which simply cannot be found anywhere else. It is now up to us to ensure that this product is adopted on as wide a scale as possible, to grow revenues and generate value for our loyal shareholders," said Chief Executive Amit Ben-Haim.
Chairman Anthony Reeves said the company is now on "solid financial foundations" following the fundraising after the end of the year and following the GBP1.3 million debt facility being obtained, which was also after the end of September.
CloudTag had a cash balance of just GBP16,000 at the end of September, but that has since been boosted by the debt facility and the GBP983,400 raised from the share issue.
However, Reeves said "more funding may be required" before CloudTag begins to breakeven, but said he hopes that achieving key milestones can facilitate further funding.
CloudTag shares were down 3.6% to 2.99 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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