Logiq (OTC:LGIQ) preannounced Q4 revenues of $12.3 million, coming in well above our November estimate of $8.8 million. Although company did not give the breakdown between AppLogiq and DataLogiq, we believe both businesses had a strong quarter. For one, we know that DataLogiq had great results in providing Medicare sales leads and is even working to expand the sales leads business, investigating adding call center capabilities. In addition, the company announced it had achieved gross margins in excess of 34% for the quarter. These results show year over year revenue growth of 87% and a doubling of gross margin dollars.
For the year Logiq will report revenues of approximately $36.5 million a decline of 3.7% and a double of its gross margin to approximately 30.6% versus 16.8% in 2020. As a result we are raising 2021 numbers as well as 2022. For 2022 we are increasing to $44 million in sales while keeping the loss the same. We will revisit estimates when the financials for the spin out are released.
Recap of AppLogiq Spin Out
Logiq is transferring AppLogiq assets into Lovarra, the U.S. public company listed on the OTC Markets before the end of the year. It originally expected to have its shareholder vote on December 18th to approve the transaction, but it was pushed to January 18th, as it could not reach a quorum in December. It applied to FINRA to change the name of Lovarra to GoLogiq™ and obtain a new trading symbol, which it expects will take several weeks. Logiq shareholders of record on December 30, 2021 will receive shares in GoLogiq on a proportionate basis. This distribution is planned to occur on or about June 30, 2022. The AppLogiq assets include CreateApp, its SaaS platform that enables small and medium businesses to create and deploy a native mobile app for their business. AppLogiq also has platforms for mobile payments and food delivery, and licenses of its technologies to third parties. Logiq also plans to transfer to GoLogiq its 31% beneficial stake in PT Weyland Indonesia Perkasa (WIP). WIP is the operator of the AtozGo™ food delivery service and AtozPay™ mobile e-wallet in Southeast Asia, which uses mobile transaction technology licensed from Logiq. The transfer of WIP is subject to the completion of related financial statements and customary conditions and approvals, which is expected to be completed by February 2022. Lovarra/GoLogiq plans to acquire the remaining 69% stake in WIP at the same time.
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