12 ReTech Corporation Releases Its Annual Report For The Year Ended December 31, 2017.

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Carson City, NV & Hong Kong, April 16, 2018 (GLOBE NEWSWIRE) -- 12 ReTech Corporation (OTC: RETC), announced today that it has filed its annual Form 10-K with the United States Securities and Exchange Commission for the period ended December 31, 2017.  These financial results represent the combined operations of 12 Hong Kong, Ltd., 12 Japan, Ltd. and 12 Europe AG. (“2017 Acquisitions”) during the 12 months ended December 31, 2017 and also include the financial results for the 12 months ended December 31, 2016. They are not comparable to the financial results posted by the Company in previous Form 10-K filings that details the operations of the company before the reverse-merger, formerly known as Devago, Inc.

For the 12-month period ended December 31, 2017, the Company reported gross sales of $60,787 vs. $119,989 for the same period in 2016. This represents a decrease of $59,202 or 49.3%. These results are consistent with the fact that the Company currently has one customer in Tokyo, Japan and the revenues represent mainly licensing fees for the Company’s technology. Being a startup, Management believes that the results for both FY2017 and FY2016 will be judged insignificant in the future, as the Company begins to realize the results of its business model which is designed for high growth, going forward.

For the 12-month period ended December 31, 2017 the Company's Net Loss was $1,418,755 vs. $181,040 for the same period in 2016. This represents an increase of $1,237,715 or 683.7% in the Net Loss in FY2017 when measured against FY2016’s results.  Management believes the larger loss — caused by investing in software development, raising working capital, pursuing Investor Relations and being a publicly listed entity — is significant but warranted as the Company executes its business plan which, if successful, should rapidly increase shareholder value in the future.

Cost of Revenue for the 12-month period ended December 31, 2017 was $49,586 compared to $13,130 in the same period in 2016 which is a increase of 277.6%.  The increase is due to the write-off of obsolete inventory of 12Mirrors in Hong Kong.  The costs of revenues for licensing fees in Japan are NIL.

Total Operating Expenses for the 12-month period ended December 31, 2017 were $1,370,715 vs. $287,899 in the same period in 2016, which is an increase of 376.1%. It is worth noticing that of the Operating Expenses recorded in 2017, $474,000 or 34.6% were non-cash transactions, which lowered the cash, burn rate of the Company.

The Weighted Average Number of Common Shares Outstanding as of December 31, 2017 is calculated at 111,433,488 which is larger than the December 31, 2017 Common Shares Outstanding of 82,200,000 shares because the Company executed a forward split of the Company’s stock on June 27, 2017 as a requirement of the reverse merger of the Company with 12 Hong Kong, Ltd. and then retired 19,800,000 shares belonging to prior management of the public entity.  The Weighted Average is calculated as if the original 20,000,000 shares of the former Devago, Inc. which were outstanding during the period of January 1, 2017 through June 27, 2017 existed in post forward split quantities and are counted as 120,000,000 shares during that period.

Angelo Ponzetta, Founder and CEO of 12 ReTech stated, "While we accomplished much in 2017 with our three acquisitions (12 Hong Kong, 12 Japan and 12 Europe) as well as the founding of 12 Retail in the U.S., it was a mainly a setup year for us. We established our footprint on three continents, initiated relationships with multiple retailers interested in our technology solutions and in March 2018 made our first microbrand acquisition: E-motion Apparel Inc."

Angelo Ponzetta, CEO of 12 ReTech, emphasized, “We continue working very hard to execute our business model which has been recording revenues in Asia, adapting our software technology to the European and North American markets, introducing new proprietary software products and applications to merchant clients and executing the acquisitions of microbrands previously announced over the course of the last six months. In addition, we are negotiating with several additional microbrand and technology parties to either acquire or create joint-ventures. All of today's present leaders in their fields, like Amazon, Google and others took a considerable amount of time to build their momentum, and it required a lot of cash to get them to where they are today. That's one of the reasons we are pursuing our microbrand acquisition strategy. We anticipate that a successful microbrand acquisition strategy would allow us to produce significant revenue and earnings before projected income from our high growth business model based on our proprietary technology products kicks in."

Angelo Ponzetta, concluded, “With the filing of our Form 10-K we are now able to resubmit our application to OTC Markets for up-listing to the OTCQB. We are now able to show that our shareholder base exceeds 700 shareholders, something we could not do previously. We look forward to working with OTC Markets to join the future ranks of their OTCQB members.”

At our core, we are a software company whose technology allows retailers to combat the dual threats of Walmart and Amazon — both online and in physical stores. Our microbrand rollup acquisition strategy allows us to demonstrate the effectiveness of our software, devise and test new products, while providing shareholder value through immediate revenue and earnings growth. The Company operates through our subsidiaries on three continents: 12 Hong Kong, Ltd., 12 Japan, Ltd., 12 Europe A.G., 12 Retail Corporation (and its subsidiaries in North America, E-Motion Apparel, Inc.). For more information please visit our website at

12 Retech Corporation is publicly listed on the OTC Markets under the symbol RETC.

 

Tom Nelson
Ten Associates, LLC
Tenassociates33@gmail.com
480-326-8577 (USA)

Mark Gilbert
Magellan FIN, LLC
mgilbert@magellanfin.com
317-361-2392 (USA)

Investor Relations

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Globe Newswire: 21:30 GMT Monday 16th April 2018

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