Lingo Media Reports Financial Results for the Second Quarter ended June 30, 2022

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Toronto, Canada, August 29, 2022 – Lingo Media Corporation (TSX-V: LM; OTCQB: 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 second quarter ended June 30, 2022. All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Q2 2022 Operational Highlights

  • Online English Language Learning:
  • added security features and tools for its assessment and testing platform;
  • enhanced the speed of its platform by optimizing download time;
  • added SSO for its LTI (Learning Tools Interoperability);
  • initiated development of lesson exercises for its Ola App;
  • advanced the development of its analytics databases;
  • designed gamification tools to improve engagement for its primary school product;
  • launched email campaigns to teachers, subscribers, distributors, and direct customers which resulted in increased engagement and sales inquiries and expansion of sales pipeline; and
  • updated its www.elltechnologies.com website to include content and marketing sections in Spanish
  • Print-Based English Language Learning:
  • Initiated the development of content and material for its grade three and four textbooks.

Q2 2022 Financial Highlights

Second Quarter Ended June 30st  20222021
Revenue$ 980,664$1,030,518
Operating and development expenses434,834403,958
Income before amortization, share-based payments, depreciation, finance charges and taxes545,830626,560
Amortization, share-based payments, and depreciation20,2081,019
Finance charges, taxes, foreign exchange(26,657)(82,020)
Net profit552,278707,561
Total comprehensive income536,024451,588
Earnings per share$ 0.02$ 0.02
  • Revenue for the second quarter ended June 30, 2022, totaled $980,664 as compared to $1,030,518 in Q2 2021.
  • Operating and development expenses for the quarter ended June 30, 2022, totaled $434,834 compared to $403,958 in Q2 2021. Included as a reduction of selling, general and administrative expenses are government grants of $55,221 relating to the Company’s publishing and software projects, $45,000 relating to the Company’s publishing business development, and $7,500 from Career Ready Program, a part of Government of Canada’s Student Work Placement Program (SWPP).
  • Net profit for the quarter ended June 30, 2022, was $552,278 or $0.02 earnings per share (basic) based on 35.5 million shares or $0.02 earnings per share (diluted) based on 36.1 million shares as compared to a net profit of $707,561 for Q2 2021 or $0.02 earnings per share (basic) based on 35.5 million shares or $0.02 earnings per share based on 39.8 million shares.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $545,830 in Q2 2022 compared to the income of $626,560 in Q2 2021.

Financial Highlights for the Six-Month Period Ended June 30, 2022

Six Month Period Ended June 3020222021
Revenue$1,139,810$1,179,598
Operating and development expenses846,233796,563
Income before amortization, share-based payments, depreciation, finance charges and taxes293,577383,035
Amortization, share-based payments and depreciation53,30522,092
Finance charges, taxes and foreign exchange22,16973,059
Net profit218,102287,884
Total comprehensive income$209,186$183,331
Earnings per share$ 0.01$ 0.01
  • Revenue for the six-month period ended June 30, 2022, totaled $1,139,810 compared to $1,179,598 for the same period in 2021.
  • Operating and development expenses for the six-month period ended June 30, 2022, totaled $846,233 as compared to $796,563 for the same period in 2021. Included as a reduction of selling, general and administrative expenses are government grants of $115,097 relating to the Company’s publishing and software projects, $45,000 relating to development of the Company’s publishing business, and $15,000 from Career Ready Program.
  • Net profit for the six-month period was $218,102 as compared to net profit of $287,884 for the same period in 2021.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $293,577, as compared to $383,035 for the same period in 2021. 

“We continue to enhance and improve our solutions and offerings while we have added resources in marketing, and sales. We are committed to expanding our product offerings which will provide Lingo Media with a distinct competitive advantage in the marketplace and better position the company for sales growth”, said Gali Bar-Ziv, President & CEO of Lingo Media.

The unaudited condensed interim financial statements for the quarter ended June 30, 2022, and Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media (TSX-V: LM; OTCQB: LMDCF)

Lingo Media is a 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:  Everybody Loves Languages Inc. 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 America and China and emerging in 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

For further information, contact:          

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

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 statementsLingo 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.

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ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE