LINGO MEDIA REPORTS Q4 2021 & FISCAL 2021 FINANCIAL RESULTS

Toronto, CanadaMay 2, 2022 – Lingo Media Corporation (TSXV: LM); (OTC: LMDCF); (FSE: LIMA) (“Lingo Media” or the “Company“), an EdTech company that is ‘Building a Multilingual World’ through innovative online technology and solutions, announces its financial results for the fourth quarter and year ended December 31, 2021.  All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Operational Highlights – 2021
  • ELL Technologies was rebranded and is doing business as “Everybody Love Languages”, including redesign of its logo, website (www.elltechnologies.com) and platform
  • launched brand new Speak2Me for desktop learning
  • launched Ola App, allowing students to access hundreds of hours of speaking and pronunciation practice from their smartphones with Speak2Me and Studio features
  • redesigned and refreshed the product design for English, Spanish, French, Mandarin, and Business programs
  • added sales personnel for LATAM and APAC markets
  • developed new reports for students and classes which provide further analysis and overview of students’ accomplishment and progress
  • released Level 1 of English Academy, an English learning program aimed at primary school learners.
  • doubled the Portuguese course content to cover learners up to B2 on the Common European Framework of Reference (“CEFR”)
  • entered into distribution agreements with partners in LATAM and APAC markets
  • expanded existing market for PEP Primary English program into one additional province in China
  • initiated the development of content and material for its Grade 3 textbooks for China market
Financial Highlights for the Year Ended December 31, 2021

Year Ended December 31st

2021

2020

Revenue

$

2,639,850

$

2,102,054

Operating and development expenses

1,596,845

669,979

Bad debt expense (recovery)

32,386

Income before amortization, share-based
     payments, depreciation, finance charges and
     taxes

1,043,005

1,399,689

Sharebased payments and depreciation

55,932

54,336

Finance charges, taxes and foreign exchange

185,636

234,974

Net profit

779,093

1,110,379

Total comprehensive income

726,573

1,077,609

Earnings per share (basic)

$

0.02

$

0.03

Earnings per share (fully diluted)

$

0.02

$

0.02

  • Revenue for the year ended December 31, 2021, totalled $2,693,850 as compared to $2,102,054 in 2020
  • Operating and development expenses for the year ended December 31, 2021, totalled $1,596,845 compared to $669,979 in 2020. In 2020, the Company received an Ontario Interactive Digital Media Tax Credit (“OIDMTC”) of $904,940 which was recorded as reduction of Selling, General and Administrative Expenses.
  • Net profit for the year ended December 31, 2021, totalled $779,093 or $0.02 earnings per share (basic) based on 35.5 million shares and $0.02 earnings per share (fully diluted) based on 36.7 million shares as compared to a net profit of $1,110,379 for 2020 or $0.03 earnings per share (basic) based on 35.5 million shares and $0.03 earnings per share (fully diluted) based on 39.5 million shares.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $1,043,005 compared to $1,399,689 in 2020.
Financial Highlights for the Fourth Quarter Ended December 31, 2021

Fourth Quarter Ended December 31st

2021

2020

Revenue

$

1,296,759

$

958,766

Operating and development expenses

367,073

294,644

Bad debt expense (recovery)

Income before amortization, share-based
payments, depreciation, finance charges and
taxes

929,686

664,122

Share-based payments, depreciation

55,223

(43,505)

Finance charges, taxes and foreign exchange

101,159

98,051

Net profit

773,304

609,576

Total comprehensive income

769,822

521,450

Earnings per share (basic)

$

0.02

$

0.02

Earnings per share (fully diluted)

$

0.02

$

0.01

  • Revenue for the fourth quarter ended December 31, 2021, totalled $1,296,759 compared to $958,766 for the same period in 2020.
  • Operating and development expenses for the quarter ended December 31, 2021, totalled $367,073 as compared to $294,644 in 2020.
  • Net profit for the quarter was $773,304 or $0.02 earnings per share (basic) based on 35.5 million shares and $0.02 earnings per share (fully diluted) based on 36.7 million shares as compared to $609,576 for the same period for 2020 or $0.02 earnings per share (basic) based on 35.5 million shares and $0.01 earnings per share (fully diluted) based on 39.1 million shares.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $929,686 compared to $664,122 in 2020.

“We continue to focus on growth and profitability while continuing to invest in our product portfolio and more over grow our sales and marketing teams. We aim to offer better products and solutions and growing our business further.” said Gali Bar-Ziv, President & CEO of Lingo Media. “We intend to pursue more partnerships and expanding our reach to gain greater growth opportunities for the upcoming years.”

The audited financial statements for the year ended December 31, 2021, and Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media TSXV: LM); (OTC: LMDCF)

Lingo Media is a global EdTech company that is ‘Building a Multilingual World’, developing and marketing products for learners of new languages through various life stages, from classroom to boardroom. By integrating education and technology, the company empowers language educators to easily transition from traditional teaching methods to digital learning.

Lingo Media provides both online and print-based solutions through two distinct business units: ELL Technologies Ltd., d/b/a Everybody Loves Languages and Lingo Learning Inc. Everybody Loves Languages provides online training and assessment for language learning, while Lingo Learning is a print-based publisher of English language learning programs in China.

Lingo Media has established successful relationships with key government and industry organizations internationally, with a presence in Latin AmericaChina and the U.S., and continues to both extend its global reach and expand its product offerings.

Follow Lingo Media On:

Facebook: https://www.facebook.com/LingoMedia
Twitter:      @LingoMediaCorp
YouTube:  https://www.youtube.com/lingomedialm 
LinkedIn:   https://www.linkedin.com/company/lingo-media-corporation
RSS:         http://feeds.feedburner.com/LingoMedia

Portions of this press release may include “forward-looking statements” within the meaning of securities laws. These statements are made in reliance upon Sections 21E and 27A of the Securities Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. These statements are based on management’s current expectations and involve certain risks and uncertainties.  Actual results may vary materially from management’s expectations and projections and thus readers should not place undue reliance on forward-looking statements.  Lingo Media has tried to identify these forward-looking statements by using words such as “may,” “should,” “expect,” “hope,” “anticipate,” “believe,” “intend,” “plan,” “estimate” and similar expressions. Lingo Media’s expectations, among other things, are dependent upon general economic conditions, the continued and growth in demand for its products, retention of its key management and operating personnel, its need for and availability of additional capital as well as other uncontrollable or unknown factors. No assurance can be given that the actual results will be consistent with the forward-looking statements. Except as otherwise required by US Federal securities laws, Lingo Media undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.  Certain factors that can affect the Company’s ability to achieve projected results are described in the Company’s filings with the Canadian and United States securities regulators available on www.sedar.com or www.sec.gov/edgar.shtml.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

For further information: Lingo Media, Khurram Qureshi, CFO, Tel: (647) 831-1462, Email: investors@lingomedia.com; To learn more, visit us at www.lingomedia.com