D-BOX is gradually resuming operations after a ransomware attack against internal computer systems was announced on July 14, 2021. All major computer systems have been restored and restoration work is expected to be completed in the coming weeks. Production did not stop completely and began to restore various internal computer systems. Although the publication of the interim, condensed, unaudited consolidated financial statements and the Company’s management report for the quarter ending June 30, 2021 (the “Financial Reports”) has been postponed, the Company is in a position to announce its forecast, on an interim basis, of estimated revenue of $3.1 million for the quarter. The first ended June 30, an increase of nearly 40% compared to the same quarter last year.
D-BOX has always maintained a clear separation between its internal IT systems and its partners’ customized services. The company believes that the impact of the cyber attack, according to a report by a third-party company that specializes in cyber incidents, was limited to internal systems, and that its services for studios and movie operators were not affected. In addition, the analyzes show that their clients’ systems were not compromised or affected during the cyberattack. D-BOX therefore does not expect that there will be any security patches for its services or software updates required from its partners as a result of the cyber attack. In addition, the company has provided all of its employees and managers with proactive protection against identity theft and fraud through Equifax for a period of 12 months.
“Safety is a top priority and D-BOX is committed to continuing to take all appropriate measures to ensure the highest level of safety for all of our systems,” said Sebastian Maillhout, President and CEO of D-BOX. “I am proud of the efforts of our IT team and our external consultants as they mitigated the attack and did the massive work required to resume operations. D-BOX is committed to continuing direct communication with all of its customers and partners, whom we thank for their patience while resolving this situation. The company believes that the financial impact For this cyberattack on results should be minimal.”
As a result of the cyber attack, the publication of financial reports will be postponed to a date later than the deadline of August 14, 2021. Management will work to release the financial reports as soon as possible, but the delay may be two to four weeks.
The Company has applied to the relevant Canadian Securities Regulatory Authorities for an Executive Limit (“IOLD”). There is no certainty that IOLD will be granted. Until the financial reports are submitted, the Company intends to comply with the provisions of the Alternative Disclosure Guidelines as per General Instructions 12-203 on Limitations on Limited Transactions to Executives by issuing bi-monthly status reports in the form of press releases.
Competent Canadian securities regulators may issue a general prohibition on securities transactions against a company for failure to file financial reports within or earlier if the company does not submit its status report within the time limit. The Company is not subject to any bankruptcy proceedings and there is no other material information relating to the affairs of the Company not previously disclosed.
D-BOX redefines and creates realistic, immersive, and tactile entertainment experiences by providing whole-body feedback and stimulating the imagination through the effects of motion, vibration and texture. Basically, haptic touches allow one to experience sensations that can be perceived if the body interacts directly with physical objects. This expertise explains why D-BOX collaborates with the world’s best companies to tell compelling stories. Whether it’s movies, video games, music, relaxation, virtual reality applications, themed entertainment or professional simulation, D-BOX’s mission is to bring the world to life and excite it like never before. D-BOX Technologies Inc. (TSX: DBO) is headquartered in Montreal, Canada, with offices in Los Angeles, the United States, and Beijing, China. D-Box.com
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Caution regarding forward-looking information
Certain information in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements may include, but are not limited to, statements about the Company, its plans, activities, objectives, operations, strategy, business prospects, financial results, financial position, or underlying assumptions therefor. In this press release, there are terms such as “may,” “likely,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” and similar expressions. or conditional or future position, and the negative form, to designate forward-looking statements. Forward-looking statements should not be construed as a guarantee of future performance or results and do not necessarily indicate precisely whether or how and when such future performance will materialize. By their nature, forward-looking statements are subject to many risks and uncertainties and are based on numerous assumptions that give rise to the possibility that actual results may differ materially from the Company’s expectations expressed or implied in such statements. No guarantee can be given that events anticipated from the forward-looking statements will occur, including, but not limited to, the timing of the investigation and recovery process, the impact on D-BOX’s business operations, projects, activities, objectives, operations, strategy and business outlook, financial results and financial position. .
Forward-looking statements are made in this press release to provide information about management’s current expectations and plans and to provide investors and others with a better understanding of the environment in which the Company operates. However, readers are cautioned that these forward-looking statements may not be suitable for other purposes.
These forward-looking statements are based on information available at that time and/or on management’s good faith beliefs regarding future events. They are subject to known and unknown risks, uncertainty and other unexpected factors, many of which are beyond D-BOX’s control.
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