/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 03/01/16 -- Leading visual search platform Slyce Inc. (TSX VENTURE: SLC) ("Slyce" or the "Company") today announced its financial results for the year and fourth quarter ended October 31, 2015.

The financial statements and Management Discussion and Analysis for the year ended October 31, 2015 are available at www.SEDAR.com.

Business Highlights

Key customer announcements during the three-month period ended October 31, 2015 include the following:

--  On August 12, 2015, Slyce announced a partnership with SHOES.COM, the
    world's fastest growing online footwear retailer, and owner of the
    leading North American shoe-retailing group, which also includes
    SHOEme.ca and OnlineShoes.com. Slyce's mobile image recognition platform
    enables mobile visitors, to SHOEme.ca, to snap pictures of any women's
    footwear, either in the real world or from sources such as magazines,
    and be presented with all direct and closely matching products from the
    extensive SHOEme.ca product line, which can then be purchased with just
    a few taps.
--  On August 26, 2015, Slyce announced that Neiman Marcus had expanded the
    deployment of Slyce technology to all of its product lines. The
    significantly expanded, 'Snap. Find. Shop.' feature, available in Neiman
    Marcus's top rated NM app and powered by Slyce, enables shoppers to snap
    3D images of items across any category -- women's apparel, shoes,
    handbags, jewellery, home furnishings, children's items, pet accessories
    and men's fashion -- and receive direct or closely matching items from
    Neiman Marcus's product offering, which can be purchased easily at the
    point of inspiration.
--  On October 6, 2015, specialty retailer Urban Outfitters signed a
    contract with Slyce to power visual search for mobile commerce. Founded
    in 1970, Urban Outfitters has more than 230 stores in the United States,
    Canada and Europe, and operates as a division of Urban Outfitters, Inc.,
    a leading lifestyle specialty retail company that also comprises the
    Anthropologie, Bhldn, Free People and Terrain brands.
--  On October 22, 2015, Slyce and Shoe Carnival announced a signed
    agreement to integrate Slyce technology.

Financing Update

On February 10, 2016, Slyce terminated its short-form prospectus offering and proceeded with a private placement financing of up to $7 million following agreement with a lead investor to subscribe for up to $5 million in units of the Company. On February 12, 2016, the lead investor subscribed for an aggregate of $1.6 million in 6% interest bearing unsecured promissory notes, which notes have been converted as a subscription for units pursuant to the terms of the Private Placement. As of February 29, 2016, the lead investor subscribed for an additional $1.9 million in units of the Company to bring the current lead investor aggregate subscriptions to $3.5 million in units of the Company. The Company is accepting further subscriptions from the lead investor, and others, and is now moving to close the remainder of the financing.

Technical Highlights

Slyce's main product development focuses during 2015 were adding robustness around its core visual search offering, and introducing new use cases for visual search. Significant attention was paid to creating a system that enables easy onboarding by minimizing the integration efforts required of new customers. This was achieved by expanding automation of product feeds and packaging our products to enable various capabilities within unified Software Development Kits ("SDKs").

Specific technology achievements included the following:

--  Universal Scanner - On October 5, 2015, Slyce announced a new set of
    mobile visual search products. A core product of that suite is the
    Universal Scanner -- an integrated solution for retailers enabling
    automated recognition of any type of object such as: physical objects,
    non-watermarked printed material (catalogues, flyers, in-store signage),
    and all types of barcodes. The Universal Scanner is embedded in
    retailers' apps as a native SDK for both iOS and Android, and provides a
    single camera interface for all types of detections. In addition, Slyce
    developed a mobile web SDK that enables the Universal Scanner
    capabilities within mobile browsers. This allows clients to add object-
    scanning capabilities to their mobile websites by integrating only a few
    lines of code into their existing website. The User Interface of both
    the native, and the mobile web SDKs, is fully customizable, and can be
    adjusted to align with the look and feel of individual clients' apps.
--  Slyce Link - On November 25, 2015, Slyce launched its proprietary retail
    technology solution, Slyce Link, a purpose-built platform that has been
    in development for over a year and is currently in beta testing with its
    first major retail customer. Slyce Link is a visual product
    recommendation system that increases shopping conversions on e-commerce
    websites. The system enables retailers to show visually similar products
    to their customers at highly strategic points in the online purchasing
    journey in order to increase sales, and mitigate cart abandonment. The
    system is delivered to retailers in the form of JavaScript and native
    SDKs for both iOS and Android. By embedding a few lines of code, a
    retailer can add a full visual recommendation experience to their
    existing website. The User Interface is customizable according to
    customer needs. At the back end of the system, there is a product feed
    processing mechanism, image matching engine, and search logic that
    ensures data consistency between the search results and the product
    catalogue in the retailer's website. Meta-data filtering is enabled in
    addition to visual relevancy (e.g. filter according to stock
    availability, price range, size, product ratings).
--  Enhanced 3D Object Recognition - During 2015, Slyce introduced a full 3D
    object recognition solution that can detect products in any category
    from retailer catalogues. Slyce launched the solution with retailers
    operating in verticals such as: fashion, electronics, home decor, tools,
    and appliances. To enable recognition of specific products in User
    Generated Content ("UGC") images, Slyce built a system that combines
    fully automated image recognition flows alongside human-assisted flows.
    In a typical use case, the recognition process starts with a fully
    automated attempt to detect the product and, if a match is not
    identified, the search proceeds to human-assisted flow where "hints" to
    the algorithms are proven, in real time, such that the most relevant set
    of products can be matched to the reference image.
    The fully automated flow utilizes a statistical matching approach, where
    the reference image is compared against a large database of pre-indexed
    images (including multiple images of the same item taken at different
    angles). The human-assisted flow utilizes the retailer's existing search
    mechanism to pull a set of potentially relevant items in real time, and
    then performs a "refinement" process to pinpoint the most similar items.
    The combined approach enables Slyce to find similar products
    corresponding to a UGC image within a retailer catalogue, in almost any
    retail category.
--  2D Content Management System - One of the capabilities of the Universal
    Scanner is detecting images in printed media such as: catalogues,
    flyers, and in-store signage. The detection is performed on a mobile
    device and is a 1:1 image matching against pre-indexed image data. The
    use case for this content activation is typically campaign based, where
    new material is published on a periodic basis. Slyce created a content
    management system to automate new content activation in an ongoing
    manner, eliminating the need to change anything on the client's app or
    website. Clients simply send any print material to be activated in a
    digital format and the activation proceeds seamlessly without any
    further action by the client.
--  Coupon Author - On August 4, 2015, Slyce launched its enterprise level
    coupon management platform for retailers -- Coupon Author. Coupon Author
    enables retailers and agencies to create coupons optimized for mobile
    redemption, distribute them at scale, and enable their consumers to
    easily find, and save such offers. Retailers can target special offers
    to specific customer segments depending on their loyalty or affinity to
    certain brands. The platform has been adopted by retail giants Toys "R"
    Us, and BazaarVoice to power all of their digital and mobile coupons.

Other technology developments included the following:

--  On July 14, 2015, Slyce launched its latest visual search enabled
    consumer app, 'Craves', a boutique, fashion focused shopping app,
    available for iOS in US and Canadian iTunes stores.
--  On August 13, 2015, Slyce expanded its 3D visual shopping app 'Pounce'
    to the Android platform.
--  On September 17, 2015, Slyce introduced Slyce Insights, a new analytics
    platform for retailers. The system is capable of collecting data related
    to visual search from various sources such as the Universal Scanner and
    Link, and providing detailed Key Performance Indicators ("KPIs") to
    retailers.
--  On October 28, 2015, Slyce introduced a new money-saving concierge
    service, Scout, into its leading coupons app SnipSnap.

Financial Highlights for the Year Ended October 31, 2015

----------------------------------------------------------------------------
For the year ended October 31,                        2015             2014
----------------------------------------------------------------------------
Revenue:
  Services rendered                          $   1,417,872    $      31,627
  Other income                                     274,420           58,176
                                             -------------------------------
                                                 1,692,292           89,803
                                             ===============================
Expenses:
Business development                               795,170          327,124
Consulting fees                                  1,605,186        2,336,086
General and admin and filing fees                8,093,620        3,285,603
Professional fees                                1,145,454          951,497
Amortization, share based payments,
 deferred tax and other                          2,122,328       10,766,069
                                             -------------------------------
                                                13,761,758       17,666,379
----------------------------------------------------------------------------
Net Loss                                     $ (12,069,466)   $ (17,576,576)
============================================================================

--  Revenue for the year ended October 31, 2015 totalled $1,692,292 compared
    to $89,803 for the year ended October 31, 2014, a 1784% increase.
    Recurring revenue follows client integration and deployment, and is now
    beginning to expand as a percentage of total revenue. Recurring revenue
    increased to $408,595 in the quarter.
--  Operating expenses for the year ended October 31, 2015 totalled
    $11,639,430 as compared to $6,900,310 for the year ended October 31,
    2014. The increase in expenses is primarily due to expanded operations
    as a result of acquisitions and increased sales and marketing
    initiatives.
--  Net loss for the year ended October 31, 2015 was $12,069,466 as compared
    to $17,576,576 for the year ended October 31, 2014.
--  Total comprehensive loss for the year ended October 31, 2015 was
    $12,065,685 or $0.09 loss per share based on 129 million shares,
    compared to a total comprehensive loss of $17,578,347 or $0.29 loss per
    share based on 60 million shares for the previous year.
--  Loss before amortization, share-based payments, depreciation, and other
    expenses was $9,947,138 for the year ended October 31, 2015 compared to
    $6,810,507 in 2014.

Financial Highlights for the Fourth Quarter Ended October 31, 2015

----------------------------------------------------------------------------
For the quarter ended October 31,                  Q4-2015          Q4-2014
----------------------------------------------------------------------------
Revenue:
  Services rendered                          $     483,595    $      27,127
  Other income                                     177,863           51,433
                                             -------------------------------
                                                   661,458           78,560
                                             ===============================
Expenses:
Business development                               173,049          327,124
Consulting fees                                    306,357          695,661
General and admin and filing fees                1,954,199          939,650
Professional fees                                  513,107           38,625
Amortization, share based payments,
 deferred tax and other                           (815,821)       1,394,497
                                             -------------------------------
                                                 2,130,891        3,395,557
----------------------------------------------------------------------------
Net Loss                                     $  (1,469,433)   $  (3,316,997)
============================================================================

--  Revenue for the quarter ended October 31, 2015 totalled $661,458
    compared to $78,560 for the quarter ended October 31, 2014, a 1683%
    increase.
--  Revenue for the quarter ended October 31, 2015 totalled $661,458
    compared to $518,823 for the third quarter ended July 31, 2015, a 27%
    increase.
--  Operating expenses for the quarter ended October 31, 2015 totalled
    $2,946,712 as compared to $2,001,060 for the quarter ended October 31,
    2014. The increase in expenses is primarily due to expanded operations
    as a result of acquisitions and increased sales and marketing
    initiatives.
--  Loss before amortization, share-based payments, depreciation, and other
    comprehensive expenses was $2,285,254 for the quarter ended October 31,
    2015 compared to $1,922,500 in 2014.

CEO Comment

Mark Elfenbein, CEO, commented, "Growing retailer interest in visual product search and acknowledgement of Slyce as an emerging visual search leader reinforces our confidence in the Company's potential. Revenue growth continued in the fourth quarter. Based on experience gained during the initial months of commercial operation, we are now vigorously refining our sales process and expense stewardship. Despite investor interest, securing additional financing in the current market environment proved challenging and the recently announced private placement financing enables continued execution of Slyce's strategy."

Conference Call

On March 1, 2016 at 4:00 PM EST, the company will be hosting a conference call to discuss this news, featuring a live Q&A session. Access to the live conference call will be available by registering at the following web link. Once registered, participants will be emailed their call-in information and access code to the call. The conference call is open to any investor or stakeholder, including shareholders, broker-dealers and other securities professionals. The call will be recorded and available for review at www.slyce.it. Slyce will be hosting and moderating a Q&A period on the call. Participants will be able to enter a moderated queue to ask a question live on the call, or to submit a question via email. To submit one or more questions to the CEO, please email your question to Roy@slyce.it with the words "Investor Question for Conference Call" in the subject line. Slyce management will endeavour to address as many questions as possible in the hour allocated to the call.

About Slyce Inc.

Slyce, based in Toronto, ON, delivers sophisticated visual search technologies and is currently focused on enabling a powerful sales channel for major retailers and their customers. Consumers, wherever they are, can conveniently engage with retailers by taking pictures of desired products using their mobile devices, thereby initiating the visual search service with near-instant product recognition capability. The Company delivers its technology both as a white-label visual search platform and as a suite of consumer mobile apps. Slyce's technology is used by large retail brands such as Neiman Marcus, Tilly's, J.C. Penney, Urban Outfitters, and Home Depot.

Slyce's business model features multiple revenue streams arising from its visual search platform and consumer apps. The revenue streams include fees for software licensing, integration, purchase transactions, and program promotions.

For image download and further Company information please click for the Slyce Media Kit.

READER ADVISORY

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Statements in this press release contain forward-looking information including, without limitation, Slyce's business plan, strategy and related milestones, Slyce's suggestions of future outcomes, the future use and development of its technology, future customers and business partners. The words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Slyce.

Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Slyce.

Slyce does not undertake any obligation to update or revise any forward-looking statements except as expressly required by applicable securities laws.

None of the information contained on, or connected to, Slyce's website is incorporated by reference herein.

Contacts:
Slyce
Mark Elfenbein
Mark@slyce.it
T. (587) 897-0993

Slyce
Roy Roman
Roy@slyce.it
T. (647) 464-6200

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