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HAL Halosource CP S

0.55
0.00 (0.00%)
26 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Halosource CP S LSE:HAL London Ordinary Share VGG425271126 ORD USD0.0001 (REG S) (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.55 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

HaloSource Corporation Preliminary Results (4660N)

09/05/2018 7:01am

UK Regulatory


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TIDMHAL TIDMHALO

RNS Number : 4660N

HaloSource Corporation

09 May 2018

9 May 2018

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

HaloSource, Corporation

("HaloSource" or the "Company")

Preliminary Results for the year ended 31 December 2017

HaloSource Corporation (HAL.LN, HALO.LN), the global clean water technology company traded on London's AIM, today announces its preliminary results for the financial year ended 31 December 2017.

Financial Highlights

-- Consolidated revenues of $2.0 million (2016: $2.1 million), excluding $0.6 million of expected sales to Perfect and JiuBan that were to form part of 2017 sales but instead will be required to be recognized in 2018

   --      Operating expenses of $6.3 million (2016: $10.3 million) 

-- Income (loss) from discontinued operations, the Company's Recreational and Environmental Water segments disposed in 2016, was ($0.1) million (2016: $0.4 million), including a gain on the sale of the two segments of $0.1 million (2016: $1.5 million)

   --      Net loss of $5.7 million (2016: net loss of $10.7 million) 

-- Total cash at year-end of $1.2 million, which included $0.9 million of the total $3.5 million equity capital proceeds (net of costs) announced on 15 December 2017, with the balance of $2.6 million net proceeds being received subsequent to the year end

Operational Highlights

-- Initial pilot production of the Company's lead reduction technology, with the first commercial production of the technology completed as previously announced on 12 January 2018

-- Appointment of a Hydration Advisory Board, as previously announced on 17 October 2017, to guide the Company's global rollout of its astrea(TM) brand of reusable water bottles and pitchers containing the Company's lead reduction and/or disinfection technologies

-- Successful test launch in Q1 2018, via crowdfunding on Indiegogo, of the Company's lead reduction bottle in the United States; the first bottle of its kind to exceed the NSF 53 standard to address the issue of lead contamination in drinking water, which has become a serious concern in the United States in recent years

-- Renewal of the Company's exclusivity agreement with Perfect to continue to supply Perfect with cartridges containing HaloPure(R) disinfection technology over the next three years

-- Completion of an agreement with JiuBan to sell filtering water pitchers and bottles via e-commerce in China under the HaloPure(R) and astrea(TM) brands

James Thompson, Chief Executive Officer of HaloSource, said:

"As we communicated in our last half-yearly report, HaloSource has made significant strategic changes over the past two years to more effectively exploit our class-leading technologies and generate more value for our offerings. The single most significant change includes launching our own brand of hydration products based on our new heavy metal remediation technology, offering a "one-of-a-kind" in design, performance and regulatory approvals. In the last twelve months we have scaled up our technology manufacturing in Italy with our partner, Chematek; launched the astrea(TM) brand in India, proved the performance of our heavy metal remediation technology at third-party labs and, on 22 March (World Water Day) launched our new line of reusable filtering water bottles via an Indiegogo campaign in the US. The response to this campaign has exceeded our expectations, including exceeding 50% of our goal on the first day of the launch, and provides evidence that there is a significant market for our technology in the US market.

While our supply chain in China faced challenges in Q4 2017 due to government-ordered shutdowns, our OEM business continued to expand the number of partners using our technology in 2017. We renewed our partnership with Perfect, expanded our business with Lonsid and added two new partners JiuBan and Seven Steps.

We are now a smaller, leaner team with costs and cash burn rates much lower compared to 2016. We expect the lift from our commercial activities, supported by lower costs, will continue to lead us on a path to profitability."

Enquiries:

 
 HaloSource Corporation 
 James Thompson, Chief Executive 
  Officer                           +1 425 419 2258 
 Craig Crowell, Chief Financial 
  Officer                           +1 425 419 2248 
 
 Cantor Fitzgerald Europe (NOMAD 
  and Broker) 
 David Foreman, Richard Salmond     +44 207 894 7000 
 

About HaloSource

HaloSource Corporation innovates and integrates technologies to deliver clean drinking water solutions to partners with trusted brands around the world. The Company works with scientists and industry experts across the globe in search of new ways to improve drinking water quality and has been awarded more than 30 patents for its ground-breaking chemistries, which provide safe drinking water for more than 10 million consumers globally. The Company's class-leading HaloPure(R) Drinking Water technology has the highest global certifications, including registration with the US EPA.

Founded in Seattle, Washington, HaloSource has grown to become an influential leader in drinking water purification. HaloSource is headquartered in the British Virgin Islands, with operations in the United States, China and India. Learn more about the Company's research and development and future cutting edge technologies by visiting www.halosource.com or www.astreawater.com.

The HaloPure(R) and astrea(TM) brands are trademarks of HaloSource Corporation. All other trademarks, brand names or product names belong to their respective holders.

This document contains certain forward-looking statements relating to the Company. The Company considers any statements that are not historical facts as "forward-looking statements". They relate to events and trends that are subject to risk and uncertainty that may cause actual results and the financial performance of the Company to differ materially from those contained in any forward-looking statement. These statements are made by management in good faith based on information available to them and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

JOINT STATEMENT BY THE CHIEF EXECUTIVE OFFICER AND CHAIRMAN

During 2017, the Company began to see the benefits from focusing on our Drinking Water business that began with our decision in 2016 to exit our other two water technology businesses. We have renewed and expanded partnerships in our OEM channel, primarily in China, expanded our disinfection technology offering to include heavy metal reduction and launched our own hydration offerings in the US and India under our own, new, astrea(TM) brand.

OEM Channel

Historically we have gone to market with and through partners primarily in the developing world, with a heavy focus on China. These partners use our technologies and imbed them in their end-products to improve performance and differentiate their offerings to consumers. During 2017 we continued to grow the list of multinational corporations deploying our unique HaloPure(R) technology, signing new partnership agreements with JiuBan and Seven Steps in China, and as announced on 21 December 2017, renewed our partnership agreement with Perfect, our largest customer.

Perfect, one of China's largest direct sales organisations, continues to be the largest revenue contributor to Drinking Water, with more than 1 million cartridges shipped since launching the JWL 7-stage water purifier in 2013. There are now over 700,000 JWL units in homes in China, each requiring an annual cartridge replacement. We continue to engage with Perfect on promotional activities to improve replacement rates and increase the Company's revenues accordingly. We also continue to work with Perfect's technical staff on the next generation of the JWL purifier, along with introduction of a HaloPure(R) powered, Perfect branded, pitcher.

Our other significant customer in 2017, Lonsid remains our second largest contributor to revenues. Lonsid has now deployed HaloPure(R) water purification technology into four of their reverse osmosis systems, an increase from three systems in the previous year. We expect Lonsid to continue to expand the number of their products including HaloPure(R) technology in 2018.

Hydration

In early 2017 we proved that our new heavy metal removal technology could achieve the all-important NSF 53 standard for the removal of lead, at a lab scale. Heavy metal (primarily lead) in water has become a significant issue since the Flint, Michigan water incident occurred in 2015, with awareness of the negative health effects of heavy metals and the presence of these toxins in public drinking water systems building across the US since then. The awareness of infrastructure decay has become well understood and we now see regular press coverage throughout many communities across the US and EU. We believed that if we could offer both world-class performance in heavy metal reduction along with consumer friendly design, the opportunity existed to build a profitable hydration business.

Powered by this new technology we are now able to offer a one-of-a-kind, proprietary, heavy-metal removal bottle. Given this proprietary position we decided to launch this technology under our own brand, astrea(TM) , named after the Greek goddess of purity. Launching this new technology under our own brand enables us to both control the commercialization effort and garner much more value for our technology offerings. To help guide this consumer-focused effort, we formed a Hydration Advisory Board including consumer marketing experts with previous experience at companies including Nike, Starbucks, LuluLemon and Phillips. These individuals meet monthly with management to review our strategic and tactical plans for the Hydration business. From design to e-commerce to channel building to strategy, these advisors have been invaluable to the progress of our Hydration plan to date.

In mid-2017 we launched the astrea(TM) "mobi-pure" line of disinfection hydration products (both bottles and pitchers) via e-commerce in India. On World Water Day 2018 (March 22) we also launched the world's first heavy metal removal bottle certified to the NSF 53 standard via a crowdfunding campaign on Indiegogo. The results from this campaign have exceeded plan, with over 50% of the Company's goal ($50,000 in sales) achieved on the very first day.

From these results, we have received interest from both specialty retail and the corporate gifting channels. In 2018, we will begin sales of the heavy metal removal bottle in the US, first via e-commerce, followed by sales to high-end specialty retail in the following year.

Financial Review

Company revenue for the year to 31 December 2017 was $2.0 million (2016: $2.1 million). While sales were essentially flat, an additional $0.6 million of sales to Perfect and JiuBan shipped late in 2017, but were determined not to meet the criteria for revenue recognition until early 2018, therefore they will be included in 2018 revenue. Actual recognized revenue in the second half of 2017 was $1.1 million versus $0.9 million in the first half of 2017 and $0.7 million in the second half of 2016.

Gross loss from continuing operations decreased by $0.3 million compared to the prior year. Our gross margins improved in 2017 primarily due to reductions in fixed production overhead from the closure of our manufacturing facility in India that occurred late in 2016. We expect further improved margin performance in 2018 as revenues increase and our higher margin astrea(TM) branded products become a more substantial part of our sales mix.

Operating expenses declined significantly in 2017 to $6.3 million (2016: $10.3 million) primarily as a result of reduced headcount reductions arising from the focus on our Drinking Water business that began with the sale of our other two business segments in 2016. In addition, reduced travel expenses, as well as the closure of a corporate office in China and our pilot production facility in the United States during the year, resulted in lower operating costs.

Employee headcount at the beginning of 2017 was 60 and as of 31 December 2017 stood at 51. The decrease in headcount from the prior year is primarily due to reductions in our corporate office staff. To date in 2018, we have maintained headcount similar to that at the end of 2017.

Net loss for the year decreased to $5.7 million (2016: $10.7 million) primarily due to the reduction in operating expenses, as described above. In addition, the net loss included an exceptional gain of $1.0 million in 2017 relating to proceeds of corporate owned life insurance on our former Chief Executive Officer, who passed away during the year.

As at 31 December 2017, the Company had a total of $1.2 million in cash, including $0.9 million of the total $3.5 million equity capital proceeds (net of costs) announced on 15 December 2017, with the balance of $2.6 million being received subsequent to the year-end.

The Company expects to increase sales and gross profits, thereby reducing the net loss and cash used by operations in 2018 as compared to 2017. In order to generate sufficient revenue to achieve profitability, the Company must successfully maintain its existing relationships and build new relationships with its customers to develop the reach and application of the Company's technologies. The Company continues to face significant risks associated with successful execution of its strategy. These risks include, but are not limited to, technology and product development, introduction and market acceptance of new products and services, changes in the marketplace, competition from existing and new competitors which may enter the marketplace, and retention of key personnel. There can be no assurance that these efforts will be successful.

The ability of the Company to continue as a going concern remains dependent on the Company obtaining financing to fund operating losses until it becomes profitable. The Company can give no assurances that any additional financing that it is able to obtain, if any, will be sufficient to meet its needs, or that any such financing will be available on acceptable terms. If the Company is unable to obtain adequate financing, it could be forced to cease operations or substantially curtail its commercial activities. This situation indicates that there is substantial doubt about the Company's ability to continue as a going concern within one year after the date the financial statements of the Company are issued. However, the Directors note, having considered these risks, they felt it appropriate to prepare these financial statements on a going concern basis.

Market

The global residential water treatment market was valued at over $12.5 billion in 2016, and is expected to see double-digit growth over the next 5 to 7 years (Source: 2016 Verify Markets Report). In 2016, some of the largest markets were the United States, China and India. China is the fastest growing market in the world and is expected to record a compound annual growth rate of 18.3%, followed by India at 13.0%. Poor water quality, rising disposable incomes, and increasing awareness are expected to drive these two fast-growing markets.

Since the Flint, Michigan lead crisis began in 2015, the awareness and concern over lead in US drinking water has continued to grow as more testing is occurring at schools and in homes. Lead in drinking water usually comes from the corrosion of older fixtures and solder that connect pipes. A 2016 USA TODAY report "identified almost 2,000 water systems spanning all 50 states where testing has shown excessive levels of lead contamination over the past four years". An April 2018 Chicago Tribune article reported "lead was found in water drawn from nearly 70 percent of the 2,797 homes tested during the past two years." The EPA estimates that there are 7-11 million lead service lines still in service in US water infrastructure and that it would take more than $30B-$50B to replace all of them.

The launch of the Company's astrea(TM) consumer brand, which utilizes the Company's own class-leading lead reduction technology, gives HaloSource its own entrée into the $8B global reusable bottle market (Source: Snovus Consulting 2016 Report). The astrea(TM) bottle provides families with a solution at home and away from home for protection from this harmful contaminant, as well as other common heavy metals.

Outlook

Our focus for 2018 and beyond remains to grow our business to a profitable scale as quickly as possible. The launch of our astrea(TM) heavy metal reduction bottle for the hydration market in the US in the past few weeks, along with the growing awareness of the seriousness of heavy metal contamination in drinking water, provides confidence that this product will be a commercial success. The phasing of our OEM sales and cash collection in 2018 to date is more skewed to Q2 and the second half of the year than originally anticipated, putting pressure on our working capital position. Together with the strategic aim of developing our new hydration business with its current momentum, this means that we will seek additional working capital financing in the near term. Our cost base remains tightly controlled and is in line with our expectations at a spending level lower than the previous year to date.

Despite softer sales than anticipated to date in 2018, the Board expect the Group's trading results for H1 2018 to be improved over H1 2017 and at this time the Board believes the Group's trading results for 2018 as a whole will be in line with market expectations. However, this is dependent on generation of significant H2 2018 sales, which were always weighted significantly towards the second half of the year.

 
 HaloSource, Inc. and Subsidiaries 
 Consolidated Statements of Operations 
  and Comprehensive Loss 
  (US $000's, except per share data) 
------------------------------------------------------   ------------  ----------- 
 Years ended December 31,                                        2017         2016 
                                                               US$000       US$000 
                                                          (Unaudited)    (Audited) 
------------------------------------------------------   ------------  ----------- 
 
 Revenue - net                                                  1,969        2,055 
 
 Cost of goods sold                                             2,398        2,832 
------------------------------------------------------   ------------  ----------- 
 
 Gross loss                                                     (429)        (777) 
 
 Operating expenses 
 Research and development                                       1,201        1,535 
 Selling, general, and administrative                           5,130        8,207 
 Goodwill impairment                                                -          518 
------------------------------------------------------   ------------  ----------- 
 Total operating expenses                                       6,331       10,260 
------------------------------------------------------   ------------  ----------- 
 
 Operating loss                                               (6,760)     (11,037) 
 
 Other income (expense), net                                    1,104        (166) 
------------------------------------------------------   ------------  ----------- 
 
 Loss before income taxes                                     (5,656)     (11,203) 
 Income tax benefit                                                 -          109 
------------------------------------------------------   ------------  ----------- 
 Loss from continuing operations                              (5,656)     (11,094) 
 
 Income (loss) from discontinued operations, 
  net of tax                                                     (63)          387 
------------------------------------------------------   ------------  ----------- 
 
 Net loss                                                     (5,719)     (10,707) 
 
 Other comprehensive income (loss) 
 Unrealized gain (loss) on available-for-sale 
  investments                                                       -            2 
 Foreign currency translation adjustments                        (63)         (56) 
------------------------------------------------------   ------------  ----------- 
 Other comprehensive loss                                        (63)         (54) 
------------------------------------------------------   ------------  ----------- 
 
 Comprehensive loss                                           (5,782)     (10,761) 
------------------------------------------------------   ------------  ----------- 
 
 Continuing operations                                         (0.02)       (0.05) 
 Discontinued operations                                       (0.00)       (0.00) 
------------------------------------------------------   ------------  ----------- 
 Basic and diluted net loss per share                          (0.02)       (0.05) 
------------------------------------------------------   ------------  ----------- 
 
 Shares used to compute basic and diluted 
  loss per share (000's)                                      281,865      220,278 
 
 See accompanying notes to consolidated 
  financial statements. 
 
 HaloSource, Inc. and Subsidiaries 
  Consolidated Balance Sheets 
---------------------------------------------------------------------  ----------- 
 As of December 31,                                              2017         2016 
                                                               US$000       US$000 
                                                          (Unaudited)    (Audited) 
----------------------------------------------   ----   -------------  ----------- 
 ASSETS 
 
 Current assets 
   Cash and cash equivalents                                    1,209        1,117 
   Short-term investments                                           -          968 
   Accounts receivable, less allowance 
    for doubtful 
   accounts of $317 in 2017 and $302 
    in 2016                                                       720        1,016 
   Inventories - net                                            1,114        1,388 
   Prepaid expenses and other current 
    assets                                                        626          971 
-------------------------------------------------------  ------------  ----------- 
 
 Total current assets                                           3,669        5,460 
 
   Property and equipment - net                                 1,040        1,201 
   Deposits                                                       121          233 
   Other noncurrent receivables                                   117          149 
   Deferred rent asset                                             47            - 
 
 Total assets                                                   4,994        7,043 
-------------------------------------------------------  ------------  ----------- 
 
 LIABILITIES AND STOCKHOLDERS' 
  EQUITY 
 
 Current liabilities 
   Accounts payable                                             1,583          619 
   Accrued expenses and other current 
    liabilities                                                   627          441 
   Salaries and benefits payable                                  162          202 
   Current portion of debt and capital 
    lease obligations                                               -            6 
-------------------------------------------------------  ------------  ----------- 
 
 Total current liabilities                                      2,372        1,268 
 
   Common stock subscriptions received                            880            - 
   Deferred rent and sublease liability                           601          819 
   Deferred tax liabilities                                         -            - 
----------------------------------------------    -----  ------------  ----------- 
 
 Total liabilities                                              3,853        2,087 
-------------------------------------------------------  ------------  ----------- 
 
 Commitments and contingencies 
 
 Stockholders' equity 
 
 Common stock, no par value; 400,000,000 
  shares authorized; 
   337,970,964 and 220,278,404 issued 
    and outstanding                                           143,622      141,651 
 Accumulated other comprehensive 
  income (loss)                                                  (49)           18 
 Accumulated deficit                                        (142,432)    (136,713) 
-------------------------------------------------------  ------------  ----------- 
 
 Total stockholders' equity                                     1,141        4,956 
-------------------------------------------------------  ------------  ----------- 
 
 Total liabilities and stockholders' 
  equity                                                        4,994        7,043 
-------------------------------------------------------  ------------  ----------- 
 
 See accompanying notes to consolidated financial 
  statements. 
 
 
 
 
 HaloSource, Inc. and Subsidiaries 
  Consolidated Statements of Cash Flows 
------------------------------------------------------------------------------- 
 Years ended December 31,                                    2017        2016 
                                                           US$000      US$000 
                                                      (Unaudited)   (Audited) 
---------------------------------------------------  ------------  ---------- 
 Cash Flows From Operating Activities 
   Net loss                                               (5,719)    (10,707) 
   Adjustments to reconcile net loss 
    to net cash used in operating activities: 
      Depreciation and amortization                           274         476 
      Goodwill impairment                                       -         518 
      Impairment of long-lived assets                           -         250 
      Allowance for inventory, sales returns 
       and bad debts                                        (265)         286 
      Share-based compensation                                 62         158 
      Loss on disposal of property, equipment 
       and other assets                                        26           2 
      Gain on sale of discontinued operations                (90)     (1,519) 
      Gain from company owned life insurance              (1,000)           - 
      Loss on lease obligation                                  -         116 
      Deferred income taxes                                     -       (174) 
      Changes in operating assets and liabilities: 
          Accounts receivable                                 269       5,436 
          Inventories                                         603       (623) 
          Prepaid expenses and other assets                   454         326 
          Accounts payable                                    775     (2,320) 
          Accrued expenses and other current 
           liabilities                                        158       (842) 
          Salaries and benefits payable                      (50)       (380) 
          Deferred rent                                     (364)       (195) 
---------------------------------------------------  ------------  ---------- 
 
 Net Cash Used in Operating Activities                    (4,867)     (9,192) 
---------------------------------------------------  ------------  ---------- 
 
 Cash Flows From Investing Activities 
   Proceeds on disposal of discontinued 
    operations                                                290       7,023 
   Purchase of property and equipment                       (150)       (160) 
   Purchase of short-term investments                         (1)     (4,262) 
   Sales of short-term investments                            970       4,800 
   Proceeds from sale of property and 
    equipment                                                  41          44 
   Proceeds from company owned life 
    insurance                                               1,000           - 
---------------------------------------------------  ------------  ---------- 
 
 Net Cash Provided By Investing Activities                  2,150       7,445 
---------------------------------------------------  ------------  ---------- 
 
 Cash Flows from Financing Activities 
   Repayments of debt and capital lease 
    obligations                                               (6)        (98) 
   Proceeds from public offerings, net 
    of offering costs of $321                               1,909           - 
   Common stock subscriptions received, 
    net of offering costs of $45                              880           - 
---------------------------------------------------  ------------  ---------- 
 
 Net Cash Provided By (Used In) Financing 
  Activities                                                2,783        (98) 
---------------------------------------------------  ------------  ---------- 
 
 Effect of exchange rate changes on 
  cash                                                         26        (90) 
---------------------------------------------------  ------------  ---------- 
 Net Increase (Decrease) in Cash and 
  Cash Equivalents                                             92     (1,935) 
 
 Cash and Cash Equivalents, beginning 
  of year                                                   1,117       3,052 
---------------------------------------------------  ------------  ---------- 
 Cash and Cash Equivalents, end of 
  year                                                      1,209       1,117 
---------------------------------------------------  ------------  ---------- 
 
 
 
 Supplemental disclosures of cash 
  flow information: 
   Cash paid for interest                   2    1 
   Cash paid for income taxes               2    4 
 
 See accompanying notes to consolidated 
  financial statements. 
 
 

Note 1 - Basis of Preparation

The financial information set out in this document does not constitute the Company's financial statements for years to 31 December 2017 and 2016. The results for 31 December 2017 are unaudited. Financial statements for the year ended 31 December 2017 will be finalized based on the information presented in this announcement. The independent auditor's report will be based on those financial statements once they are complete.

Financial statements for the year ended 31 December 2016 have been reported on by the Independent Auditor. The Independent Auditor's report on the financial statements for 2016 was unqualified however it included an emphasis of matter indicating substantial doubt regarding the Company's ability to remain a going concern.

The financial information set out in these preliminary results has been prepared using accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accounting policies adopted in these preliminary results have been consistently applied to all the years presented and are consistent with the policies used in the preparation of the statutory accounts for the period ended 31 December 2017. The principal accounting policies adopted are unchanged from those used in the preparation of the statutory accounts for the period ended 31 December 2016. New standards, amendments and interpretations to existing standards, which have been adopted by the Group for the year ended December 31 2017, have not been listed, since they have no material impact on the financial statements.

Note 2 - Liquidity and Going Concern

The Company has continued to implement certain cost savings measures and implemented other plans that are expected to reduce the net loss and cash used by operations in 2018 as compared to 2017. In order to generate sufficient revenue to achieve profitability, the Company must successfully maintain its existing relationships and build new relationships with its customers to develop the reach and application of the Company's technologies. The Company continues to face significant risks associated with successful execution of its strategy. These risks include, but are not limited to, technology and product development, introduction and market acceptance of new products and services, changes in the marketplace, liquidity, competition from existing and new competitors which may enter the marketplace, and retention of key personnel. There can be no assurance that these efforts will be successful.

The ability of the Company to continue as a going concern is dependent on the Company obtaining additional capital to fund operating losses until it becomes profitable. The Company can give no assurances that any additional capital that it is able to obtain, if any, will be sufficient to meet its needs, or that any such financing will be obtainable on acceptable terms. If the Company is unable to obtain adequate capital, it could be forced to cease operations or substantially curtail its commercial activities. This situation indicates that there is substantial doubt about the Company's ability to continue as a going concern within one year after the date the financial statements of the Company are issued. The financial statements do not include the adjustments that would result if the Company was unable to continue as a going concern.

Cautionary Statement:

This press release contains certain forward-looking statements. All statements contained in this press release that do not relate to matters of historical facts should be considered forward-looking statements. Forward-looking statements include statements with respect to the operations, performance and financial condition of the Company, including, but not limited to, cash consumption and sufficiency of capital, the available opportunities, markets for and benefits of its products and services, the Company's innovation and deployment of new products, the improvements to and expanded deployment of existing products, the potential benefits of business relationships with third parties, and the Company's plans and strategies for and expected future growth. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this press release and the Company undertakes no obligation to update these forward-looking statements. Nothing in this press release should be construed as a profit forecast. These statements about future events are subject to risks and uncertainties that could cause HaloSource's actual results to differ materially from those that might be inferred from the forward-looking statements. HaloSource can make no assurance that any forward-looking statements will prove correct.

General Information:

The Company is incorporated and domiciled in the British Virgin Islands. The address of its registered office is Nerine Chambers, PO Box 905, Road Town, Tortola, British Virgin Islands. The Company has its primary listing on the Alternative Investment Market ("AIM"), a sub-market of the London Stock Exchange.

The 2017 unaudited preliminary results announcement was prepared under U.S. GAAP and was approved for issue on 8 May 2018. The Company anticipates its 2017 audited consolidated financial statements and 2018 Annual Report will be available to shareholders as soon as practicable.

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR LIFSEEEIAIIT

(END) Dow Jones Newswires

May 09, 2018 02:01 ET (06:01 GMT)

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