Lingo Media Reports Financial Results for the Third Quarter Ended September 30, 2020

TORONTO, Nov. 27, 2020 /CNW/ - Lingo Media Corporation (TSXV: LM) (OTCQB: LMDCF) (FSE: LIMA) ("Lingo Media" or the "Company"), an EdTech company that is 'Changing the way the world learns languages' through innovative online and print-based technologies and solutions, announces its financial results for the third quarter ended September 30, 2020.  All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Q3 2020 Operational Highlights

• Online English Language Learning:
• added content focusing on basic level for English for Success product (Pre-A1)
• added content focusing on basic level for Campus product (Pre-A)
• initiated development of a new achievement test
• continued development of its new mobile APP
• provided teachers access to its library of 1800 hours of learning to be assigned to students
• signed a new distributor in China
• Print-Based English Language Learning:
• working on a series of how-to training videos for teachers in China to use Lingo Learning's books more effectively

Q3 2020 Financial Highlights

• Revenue for the third quarter ended September 30, 2020 totalled $68,775 as compared to $117,545 in Q3 2019.
• Operating and development expenses for the quarter ended September 30, 2020 totaled $404,377 compared to the expenses of $310,853 in Q3 2019. Included as a reduction of selling, general and administrative expenses are government grants of $55,691 relating to the Company's publishing and software projects. The Company applied for the Canada Emergency Wage Subsidy ("CEWS") and received $50,137 during the third quarter reflected as a reduction of General and Administrative Expense.
• Net loss for the quarter ended September 30, 2020 was $400,723 or $0.01 loss per share (basic) based on 35.5 million shares or $0.01 loss per share (diluted) based on 39.8 million shares as compared to a net loss of $320,519 for Q3 2019 or $0.01 loss per share (basic) based on 35.5 million shares or $0.01 loss per share (diluted) based on 41.5 million shares.
• Loss before amortization, share-based payments, depreciation, finance charges and taxes was $335,602 in Q3 2020 compared to the loss of 193,308 in Q3 2019.

Financial Highlights for the Nine-Month Period Ended September 30, 2020

• Revenue for the nine-month period ended September 30, 2020 totalled $1,143,288 compared to $1,124,714 for the same period in 2019.
• Operating and development expenses for the nine-month period ended September 30, 2020 totaled $407,721 as compared to $920,885 for the same period in 2019. The reduction of selling, general and administrative expenses is primarily due to the receipt of government grants of $279,017 relating to the Company's publishing and software projects and a one-time refundable tax credit, Ontario Interactive Digital Media Tax Credit, in the amount of $904,940 related to the Company's investment in digital products in 2016. The Company applied for the Canada Emergency Wage Subsidy ("CEWS") and received $151,445 during the period as a reduction of selling, general and administrative expenses.
• Net profit for the nine-month period was $500,803 as compared to net loss of $226,053 for the same period in 2019.
• Income before amortization, share-based payments, depreciation, finance charges and taxes was $735,567, as compared to $203,829 for the same period in 2019.

The unaudited condensed interim financial statements for the quarter ended September 30, 2020 and Management Discussion & Analysis are available at www.sedar.com.

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

Lingo Media is a global EdTech company that is 'Changing the way the world learns language', developing and marketing products for learners of English through various life stages, from classroom to boardroom.  By integrating education and technology, the company empowers English 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 and Lingo Learning.  ELL Technologies 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 formed successful relationships with key government and industry organizations internationally, with a particularly strong presence in Latin America and China 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

SOURCE Lingo Media Corporation