ALY AnalytixInsight Inc

Artificial Intelligence company, AnalytixInsight Inc. (“AnalytixInsight”, or the “Company”) (TSX-V: ALY; OTCQB: ATIXF), reports its financial results for the second quarter ended June 30, 2020.

Highlights

• The Company’s CapitalCube AI-driven research distribution agreement with Refinitiv continued to witness strong readership during the quarter as users embrace the use of AI in fundamental financial analysis. The growth of content disseminated through Refinitiv’s Eikon platform was the strongest in its operating history.
• Initiated development of robo-based ETF and equity analysis to create and develop proprietary indices to be featured in a new version of index driven products in CapitalCube.
• Offered free access to CapitalCube financial analytics platform in support of investors and investment professionals working from home during the COVID-19 pandemic.
• The Company continued to advance its Workforce Optimization initiative and is actively working to deliver new solutions for the opportunities emerging due to COVID-19 impacts on certain industries. The Company is pursuing strategic transformation in this rapidly growing business opportunity and is preparing to offer a unique product suite incorporating data analytics and machine learning, in addition to its IFS and Salesforce systems integration expertise.
• MarketWall has established a new operating subsidiary, InvestoPro, in continued advancement of its digital discount brokerage platform as it prepares to become a European online financial broker. InvestoPro has been constituted with a seven-member board of directors.
• MarketWall made additional investments in its operations relating to the development of InvestoPro to also allow options & derivative trading and is undertaking plans to make the platform live and operational.
• MarketWall deployed a new version 6.6 of its stock quotation platform with several new features.
• AnalytixInsight’s revenue for the three and six month periods ended June 30, 2020, was $0.8 million and $1.4 million, respectively, and net loss was $0.4 million and $0.9 million, respectively.
• MarketWall continued to remain profitable and revenue for the six-month period ended June 30, 2020, was $2.9 million, with a net income of $0.7 million. (MarketWall is 49% owned by AnalytixInsight and not consolidated in AnalytixInsight’s financial results).

Management Commentary

Prakash Hariharan, President & CEO of AnalytixInsight, commented: “COVID-19 has reshaped consumer behavior trends toward increased online channel usage and our strategic initiatives are well aligned in this shift.  We are also pleased with the development progress that our subsidiary, MarketWall, has made in building its European online financial broker and we look forward to its completion.”

AnalytixInsight Selected Financial Information:

AnalytixInsight$ Canadian (unaudited)	Six months ended June 30, 2020	Six months ended June 30, 2019
Revenue	1,395,380	2,097,474
Basic net loss per share	(0.01)	(0.01)
	June 30, 2020	December 31, 2019
Total assets	5,262,370	5,546,267
Total liabilities	924,877	523,853

MarketWall Selected Financial Information:

AnalytixInsight owns 49% of MarketWall which is considered an associated company as its financial results are not consolidated in AnalytixInsight’s financial results.

MarketWall (Associated investment of AnalytixInsight, $ Canadian)	Six months ended June 30, 2020	Six months ended June 30, 2019
Revenue	2,913,694	2,588,742
Net income	658,334	691,302
	June 30, 2020	December 31, 2019
Total assets	5,649,066	5,206,824
Total liabilities	1,760,445	2,139,151

CapitalCube

AnalytixInsight is an established AI-driven content supplier with ability to offer research content on small & mid-cap companies worldwide through its CapitalCube platform which delivers scalable, machine-created content. Its powerful analytics engine is capable of 100 billion daily computations and currently provides analysis on approximately 50,000 worldwide stocks and North American ETFs.  

CapitalCube provides AI-driven research to Refinitiv on North American pre-revenue companies and dividend-paying companies worldwide. CapitalCube’s dividend analysis report provides powerful insights, analysis and scoring regarding a company’s dividend quality, yield, coverage, flexibility, payment history, peer comparisons and sustainability.  Report readership continued to increase during the quarter as users rapidly embrace the use of AI in fundamental financial analysis.

AnalytixInsight believes that its ability to create scalable financial content on companies worldwide is being recognized with increasing importance as global industry leaders embrace analytics within the financial industry. On August 1, 2019, the London Stock Exchange agreed to buy Refinitiv in a US$27 billion transaction to create a global financial markets infrastructure provider with leading data and analytics to Refinitiv’s 40,000 institutions in over 190 countries.

During the quarter, CapitalCube initiated development of robo-based ETF and equity analysis designed to develop proprietary indices and specialized portfolio criteria selection based on Efficient Frontier computations. The Company is engaged in discussions with professional portfolio managers relating the use of CapitalCube’s robo-analysis and AI to be featured in new versions of index-driven products in CapitalCube.

Workforce Optimization

AnalytixInsight’s Workforce Optimization division joined the IFS Partner Network in 2018 and the Company is advancing its sales initiatives in this market. IFS is a world leader in developing workforce optimization enterprise software for global customers who manage service-focused operations. AnalytixInsight plans to explore opportunities with IFS to jointly develop machine intelligence solutions to help organizations maximize operational efficiency, increase revenue, reduce costs, and improve customer satisfaction.

The COVID-19 pandemic has disrupted many North American businesses and is disrupting the traditional operations of service-based organizations. They are now seeking innovative solutions for field dispatch, job tracking, and workflow efficiency. Data analytics plays an important role in this shift, which is more easily enabled now that most service technicians use digital-based solutions.

The Company’s Workforce Optimization division is a highly skilled systems integration team experienced in integration of IFS and Salesforce field management solutions. The Company will apply an increased focus on this initiative with new solutions and strategies that are emerging as a result of COVID-19.

MarketWall

MarketWall is 49%-owned by AnalytixInsight and is a FinTech online digital solutions provider for major financial services firms. The Company believes the need for online banking and online trading platforms will increase because of consumer behavior shifts caused by the COVID-19 pandemic and expects MarketWall’s business will additionally benefit from this trend shift.

During the quarter MarketWall structured InvestoPro as its wholly-owned online brokerage initiative, constituted with a seven-member board: three by Intesa Sanpaolo, two by AnalytixInsight and two by MarketWall. The development of InvestoPro is proceeding well and InvestoPro will also now be offering options & derivatives trading in addition to stock trading.

InvestoPro will be an online stock and options trading platform that will also provide research content and financial education on multi-device trading platforms (e.g., mobile, wearables, smart-TV). InvestoPro will be offered initially in Italy with intentions to expand to other European countries, using Intesa Sanpaolo as its execution broker. InvestoPro will offer discounted stock trading commissions and other services that are designed to give individual investors greater control over their investments and trading.

During the quarter, MarketWall deployed a new version 6.6 of its stock quotation platform which is available for download at Apple App Store and Google Play Store, and to all users at www.marketwall.com. The new comprehensive version improves stock quotation features and now includes peer group comparisons, fundamental analysis chart and scores, shareholder ownership reporting, rating reporting, target price consensus, valuation analysis, real-time quotes, news, MarketWall editorial video content, and more. MarketWall.com draws an audience of over 2 million monthly views across its digital channels. As a Samsung Electronics partner, MarketWall’s financial app is pre-loaded on certain devices such as Smart TVs.

MarketWall’s editorial team is now producing “Trading Ideas” content which is designed to educate investors by offering weekly stock market summaries, worldwide financial market outlooks, educational content for stocks, bonds, currencies, new emerging industry trend analysis, and more.

MarketWall has already developed “Investo” which is the stock trading component of the Intesa Sanpaolo App, ranked top 4th App in Europe by Forrester Digital Wave. During its first quarter, Intesa Sanpaolo reported an increase of approximately 300,000 App users to 5.8 million. The bank also reported a 60% increase in Market Hub trading orders during its first quarter. Market Hub will be the execution broker for InvestoPro, when launched.

Following the completion of MarketWall’s online brokerage initiative InvestoPro, MarketWall expects to initiate a valuation process to determine its appropriate valuation within a peer-based context of online brokerage firms with partnerships with world-leading banks. Completion of this process will allow AnalytixInsight to move forward with a spinout to unlock the value of its MarketWall holdings in an IPO or other such strategies.

MarketWall has also developed GlobalMarket, a trading & research platform offering analyst research and stock trading in one common enterprise digital platform. It is marketed and sold by a leading investment research provider and has already been installed by a leading bank in Western Europe for their approximately 4,000 professional users.

Intesa Sanpaolo owns 33% of MarketWall and is one of the top banking groups in Europe with approximately 11.8 million customers and approximately 3,700 branches throughout Italy. It has emerged as Italy's first digital bank and is investing 2.8 billion euros in a strategic plan to increase the bank’s digitized business to 70%, with mobile being at the heart of the digital ecosystem.  S&P Global ranks Intesa Sanpaolo as the 27th largest bank in the world by total assets.

Complete details of the Company’s financial and operating results are available under the Company’s profile at www.SEDAR.com.

The Company has granted a total of 650,000 stock options to certain members of management and consultants pursuant to its stock option plan.  The options may be exercised at a price of $0.57 per option for a period of five years from the date of grant. The grant of options remains subject to the approval of the TSX Venture Exchange. CONTACT INFORMATION:

Scott UrquhartVP Corporate DevelopmentScott.Urquhart@AnalytixInsight.comTel: (416) 522-3975

ABOUT ANALYTIXINSIGHT INC.

AnalytixInsight Inc. is an Artificial Intelligence, machine-learning company. AnalytixInsight’s financial analytics platform CapitalCube.com algorithmically analyzes market price data and regulatory filings to create insightful actionable narratives and research on approximately 50,000 global companies and ETFs, providing high-quality financial research and content for investors, information providers, finance portals and media. AnalytixInsight also designs and implements Workforce Optimization solutions for large global enterprises. AnalytixInsight holds a 49% interest in MarketWall, a developer of FinTech solutions for financial institutions. For more information, visit AnalytixInsight.com.

Regulatory Statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the growth of the Company’s business operations; the impact of COVID-19 on the Company’s operations; the Company’s financial results; the adoption of AI in various industries; the Company’s ability to spin out or monetize its interest in MarketWall, the valuation of MarketWall, MarketWall’s ability to raise adequate capital, MarketWall’s ability to obtain a brokerage licence; the Company’s financial results; the use of the Company’s content by various parties; the impact of the distribution agreement with Refinitiv;  the Company’s ongoing relationship  with IFS and the Company’s ability to enter into commercial transactions with members thereof; the Company’s ability to expand its content distribution; MarketWall’s and Intesa Sanpaolo’s future performance; and the Company’s future performance. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of AnalytixInsight Inc., as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the Company’s technology and revenue generation; risks associated with operation in the technology sector; ability to successfully integrate new technology and employees; foreign operations risks; and other risks inherent in the technology industry. Although AnalytixInsight has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. AnalytixInsight does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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