BuildDirect Reports Second Quarter 2024 Financial Results
August 28, 2024 6:30 AM EDT | Source: BuildDirect.com Technologies, Inc.
Delivered adjusted EBITDA of $0.6 million for Q2 2024; the Company has delivered 10 consecutive quarters of positive adjusted EBITDA.
Delivered revenue and gross profit of $16.2 million and $6.2 million or 38.2%, respectively, in Q2 2024 vs $19.1 million and $7.6 million or 39.7%, respectively in Q2 2023; this represents a reduction in revenue and gross profit of $2.9 million and $1.4 million or 150 bps, respectively, year-over-year.
Working capital increased $0.6 million to $2.9 million at June 30, 2024 from $2.3 million at March 31, 2024.
Company to host Second Quarter 2024 earnings conference call on Wednesday, August 28, 2024 at 1:30 PM (PDT) / 4:30 PM (EDT)
BuildDirect reports in United States ("US") dollars and in accordance with IFRS, unless otherwise noted. All references to dollars herein are in US dollars ($) unless otherwise specified.
Vancouver, British Columbia--(Newsfile Corp. - August 28, 2024) - BuildDirect.com Technologies Inc. (TSXV: BILD) ("BuildDirect" or the "Company") a leading omnichannel building material retailer, today announced its financial results for the Second Quarter Ended June 30, 2024 ("Q2 2024").
"During Q2 2024, the Company reported an adjusted EBITDA of $0.6 million and continued to improve its operational economics," said Shawn Wilson, CEO of BuildDirect. "We're assembling a team and building operations with strong scalability potential, always keeping our growth strategies in focus," he continued.
Shawn also noted, "The Company now operates six Pro Centers in addition to its e-commerce business and is strategically positioned to pursue expansion opportunities across North America with our omni-channel approach. Currently, our Pro Centers are present in only two of the top 50 markets in North America, underscoring substantial growth opportunities. Our business model is focused on careful execution, smart capital allocation, and the establishment of attractive unit economics. As we continue to advance, we are actively working on strategies to scale our Pro Center growth-both through developing organic locations and exploring strategic acquisition opportunities."
Kerry Biggs, the new CFO of BuildDirect, added, "We are focused on ensuring that our financial strategies align with the company's growth objectives. Whether through organic expansion or acquisitions, we are committed to smart capital allocation and pursuing opportunities for long-term value for our shareholders."
Q2 2024 Financial Results Conference Call
The Company will host a conference call to discuss the Company's financial results.
Time: 1:30 PM (PDT) / 4:30 PM (EDT)
Date: Wednesday, August 28, 2024
Register: https://builddirect.zoom.us/meeting/register/tZEqduCprT0tHtxdP0sB0z6b1vdio5vCA_FH
The replay will be available approximately 24 hours after the completion of the conference call. In addition, an archived replay will be available on the Investor Relations section of the Company's website at https://ir.builddirect.com/events-and-presentation.
Among other things, the Company will discuss the long-term financial outlook on the conference call and related materials will be available on the Company's website at https://ir.builddirect.com/events-and-presentation. Investors should carefully review the factors, assumptions, risks, and uncertainties included in such related materials concerning such as the long-term financial outlook.
Second Quarter 2024 Financial Highlights
- Financial Position
The following table summarizes the Company's financial position at June 30, 2024 and December 31, 2023.
As at | As at | ||||||||
June 30, | December 31, | ||||||||
2024 | 2023 | Change | |||||||
Cash and cash equivalents | $ | 2,323,515 | $ | 2,601,893 | $ | (278,378 | ) | ||
Working capital (1) | 2,906,173 | 2,824,829 | 81,344 | ||||||
Total assets | 22,987,485 | 25,357,709 | (2,370,224 | ) | |||||
Total liabilities | 19,767,631 | 21,174,177 | (1,406,546 | ) | |||||
Total shareholders' equity | 3,219,854 | 4,183,532 | (963,678 | ) | |||||
| |||||||||
Common shares outstanding | 42,032,706 | 41,941,535 | 91,171 | ||||||
1A non-IFRS measure. See "Non-IFRS measures" for definitions and reconciliation non-IFRS measures to the relevant IFRS measures. |
- Financial Results
The following tables summarize the Company's selected financial results for the three and six months ended June 30, 2024, and 2023.
Three months ended | Three months ended | ||||||||
June 30, | June 30, | ||||||||
2024 | 2023 | Change | |||||||
Revenue | $ | 16,182,846 | $ | 19,104,525 | $ | (2,921,679 | ) | ||
Loss from operations | (227,626 | ) | (93,477 | ) | (134,149 | ) | |||
Comprehensive loss | (517,029 | ) | (975,778 | ) | 458,749 | ||||
Adjusted EBITDA (1) | 578,326 | 1,064,555 | (486,229 | ) | |||||
Basic and diluted loss per share | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.01 | |
Six months ended | Six months ended | ||||||||
June 30, | June 30, | ||||||||
2024 | 2023 | Change | |||||||
Revenue | $ | 31,772,698 | $ | 36,950,824 | $ | (5,178,126 | ) | ||
Loss from operations | (544,607 | ) | (73,004 | ) | (471,603 | ) | |||
Comprehensive loss | (1,106,353 | ) | (1,319,440 | ) | 213,087 | ||||
Adjusted EBITDA(1) | 1,082,567 | 2,107,011 | (1,024,444 | ) | |||||
Basic and diluted loss per share | $ | (0.03 | ) | $ | (0.03 | ) | $ | 0.01 | |
1 A non-IFRS measure. See "Non-IFRS measures" for definitions and reconciliation non-IFRS measures to the relevant IFRS measures. |
- Revenue and Gross Profit per Segment
The Company reports results in two segments: (1) BuildDirect and (2) Acquired Retailers ("Retailers"). We measure each reportable operating segment's performance based on Revenue. Our BuildDirect segment comprises revenue through our BuildDirect e-commerce and brick and mortar operations. The Retailers segment comprises revenue of flooring building materials through our acquired brick and mortar locations and include installation services. The BuildDirect and Retailers segments contributed 20% and 80% of the Company's revenue respectively in Q2 2024 compared to 31% and 69% of the Company's revenue, respectively, in the three months ended June 30, 2023 "Q2 2023". Likewise, the BuildDirect and Retailers segments contributed 22% and 78% of our sales respectively in the six months period ended June 30, 2024 "H1 2024" compared to 30% and 70% of our sales, respectively, in the six months ended June 30, 2023 "H1 2023".
The following table summarizes revenue and gross profit per Segment for Q2 2024 and Q2 2023:
Three months ended June 30, 2024 | |||||||||
| |||||||||
BuildDirect | Retailers | Total | |||||||
Revenue | 3,267,898 | 12,914,948 | 16,182,846 | ||||||
Cost of goods sold | 1,558,517 | 8,439,573 | 9,998,090 | ||||||
Gross profit | 1,709,381 | 4,475,375 | 6,184,756 | ||||||
Gross profit % | 52.3% | 34.7% | 38.2% | ||||||
| |||||||||
| |||||||||
Three months ended June 30, 2023 | |||||||||
| |||||||||
BuildDirect | Retailers | Total | |||||||
Revenue | 5,883,590 | 13,220,935 | 19,104,525 | ||||||
Cost of goods sold | 3,103,276 | 8,425,779 | 11,529,055 | ||||||
Gross profit | 2,780,314 | 4,795,156 | 7,575,470 | ||||||
Gross profit % | 47.3% | 36.3% | 39.7% | ||||||
|
Overall, revenue in Q2 2024 was $16.2 million compared to $19.1 million in Q2 2023 for a decrease of $2.9 million or 15.3%.
Revenue in Q2 2024 for the BuildDirect segment was $3.3 million compared to $5.9 million for the same period in the prior year, a decrease of $2.6 million or 44.5%. The decrease can be attributed to the Company's strategy to shift its e-commerce product mix to higher gross margin direct-sourced products and the timing around building stronger inventory levels to support the strategic shift.
Revenue in Q2 2024 for Retailers was $12.9 million compared to $13.2 million for the same period in the prior year for a decrease of $0.3 million or 2.3%. This decrease can be attributed to weaker housing remodeling and new construction activities, posited to be driven by higher mortgage interest rates.
Gross profit in Q2 2024 was $6.2 million compared to $7.6 million in Q2 2023 for a decrease of $1.4 million or 18.4%. The decrease can be attributed to the lower revenue noted earlier for the BuildDirect and Retailers segments. In addition, gross profit as a percentage of revenue decreased slightly from 39.7% in Q2 2023 to 38.2% in Q2 2024. The decrease was due mainly to gross profit as a percentage of revenue in the Retailers segment decreasing to 34.7% from 36.3% in Q2 2024 vs Q2 2023, respectively. Although, this decrease was offset by an increase in gross profit as a percentage of revenue in the BuildDirect segment in Q2 2024 vs Q2 2023 to 52.3% from 47.3%, respectively.
- Working capital1
The following table summarizes Working Capital on June 30, 2024, and December 31,2023.
June 30, | December 31, | |||||
2024 | 2023 | |||||
Total current assets | $ | 13,585,174 | $ | 14,603,934 | ||
Total current liabilities | 10,679,001 | 11,779,105 | ||||
Working capital | 2,906,173 | 2,824,829 | ||||
|
Current assets include cash and cash equivalents of $2.3 million on June 30, 2024, compared to $2.6 million at December 31, 2023 for a decrease of $0.3 million.
1A non-IFRS measure. See "Non-IFRS measures" for definitions and reconciliation non-IFRS measures to the relevant IFRS measures.
E. Quarterly Financial Information
The below table summarizes the results of operations for the eight most recently completed fiscal quarters. The information has been prepared in accordance with IFRS Accounting Standards and is unaudited quarterly information.
USD | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Revenue | 16,182,846 | 15,589,852 | 16,916,952 | 18,411,622 | 19,104,525 | 17,846,299 | 21,694,512 | 22,007,379 | ||||||||||||||||
Gross Profit | 6,184,756 | 6,090,951 | 5,957,814 | 7,321,604 | 7,575,470 | 6,992,441 | 7,897,610 | 6,921,305 | ||||||||||||||||
Gross Margin % | 38.2% | 39.1% | 35.2% | 39.8% | 39.7% | 39.2% | 36.4% | 31.4% | ||||||||||||||||
Net Loss | (517,029 | ) | (589,324 | ) | (1,971,942 | ) | (480,818 | ) | (975,778 | ) | (343,661 | ) | (4,658,265 | ) | (893,206 | ) | ||||||||
Net Loss per Share: | ||||||||||||||||||||||||
Basic Loss per Share | (0.01 | ) | (0.01 | ) | (0.05 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.15 | ) | (0.03 | ) | ||||||||
Diluted Loss per Share | (0.01 | ) | (0.01 | ) | (0.05 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.15 | ) | (0.03 | ) | ||||||||
EBITDA (1) | 573,376 | 486,772 | (757,295 | ) | 976,906 | 636,355 | 1,280,844 | (3,968,016 | ) | 802,084 | ||||||||||||||
Adjusted EBITDA (1) | 578,326 | 504,230 | 73,069 | 1,370,956 | 1,064,555 | 1,042,456 | 411,651 | 294,559 | ||||||||||||||||
1A non-IFRS measure. See "Non-IFRS measures" for definitions and reconciliation non-IFRS measures to the relevant IFRS measures. |
The preceding table provides certain quarterly financial information that is unaudited, but reflects all adjustments of a normal, recurring nature which are, in the Company's opinion, necessary to present a fair statement of the results of operations for the periods presented. Quarter-to-quarter comparisons of our financial results are not necessarily meaningful and should not be relied upon as an indication of future performance.
The Company has maintained positive Adjusted EBITDA through changing its strategy to focus on the more profitable Pro Customer base, scale down e-commerce operations and reduce operating expenses.
Subsequent events to Q2 2024
On July 3, 2024, the Company announced the appointment of Kerry Biggs as the Company's new Chief Financial Officer and the corresponding resignation of Marshall Rosichuk as Interim-CFO effective July 22, 2024 and July 21, 2024 respectively.
Actual results may differ materially from the Company's financial outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below. The Company's unaudited condensed interim consolidated financial statements and accompanying notes and the Management's Discussion and Analysis for the three and six-months ended June 30, 2024 and June 30, 2023 are available on the Company's website at www.BuildDirect.com and on the Company's SEDAR+ profile available at www.sedarplus.ca.
About BuildDirect
BuildDirect is a growing omnichannel building material retailer. BuildDirect connects North American home improvement B2B and B2C organizations, and homeowners with quality building materials and services through its robust global supply chain network. BuildDirect's growth trajectory, strong product offering, and proprietary heavyweight delivery network are delivering value today, solidifying its position as an innovative player in the home improvement industry. For more information, visit www.BuildDirect.com.
Forward-Looking Information:
This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. These statements reflect management's current beliefs and expectations and are based on information currently available to management as at the date hereof.
Forward-looking statements in this press release may include, without limitation, statements relating to the Company being strategically positioned to pursue expansion opportunities across North America, substantial growth opportunities for the Company's Pro Centers and the Company actively working on strategies to scale its Pro Center growth-both through developing organic locations and exploring strategic acquisition opportunities, the Company's business model focused on careful execution, smart capital allocation and the establishment of attractive unit economics, the alignment of the Company's financial strategies with the Company's growth objectives, pursuing opportunities for long-term value for the Company's shareholders, the profitability of the Company's Pro Customer base and the delivery of positive Adjusted EBITDA results.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Among those factors are changes in consumer spending, inflation, availability of mortgage financing and consumer credit, changes in the housing market, changes in trade policies, tariffs or other applicable laws and regulations both locally and in foreign jurisdictions, availability and cost of goods from suppliers, fuel prices and other energy costs, interest rate and currency fluctuations, retention of key personnel and changes in general economic, business and political conditions and other factors referenced under the "Risks and Uncertainties" section of our Management Discussion & Analysis. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions.
These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release reflect the Company's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and BuildDirect assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
Non-IFRS Measures:
Reference is made in this press release to the following non-GAAP measures: Adjusted EBITDA and Working Capital. These non-GAAP measures are commonly used by investors and other interested parties to evaluate the Company's financial performance and are employed by the Company to measure its operating and economic performance and to assist in business decision-making. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. These measures are provided as additional information to complement those IFRS measures by providing further understanding of the results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the financial information reported under IFRS. Refer also to appendix tables and the "Second Quarter 2024 Financial Highlights" of this press release as well as our Management's Discussion and Analysis (for the three and six months ended June 30, 2024, and June 30, 2023) for definitions and reconciliations of non-IFRS measures to the nearest IFRS measures. The disclosure under such Management's Discussion and Analysis is incorporated by reference into this news release.
We define EBITDA as net income or loss before interest, income taxes and amortization. Adjusted EBITDA removes fair value adjustment of convertible debt and warrants, fair value adjustment of inventory, restructuring expenses, non-recurring bad debt expense, foreign exchange gains and losses, and share-based compensation items from EBITDA. Further, we define working capital as current assets less current liabilities.
We are presenting these measures because we believe that our current and potential investors, and many analysts, use them to assess our current and future operating results and to make investment decisions. Management uses these measures in managing the business and making decisions. EBITDA and adjusted EBITDA are not intended as substitutes for IFRS measures.
Non-IFRS Measures (continued):
Three months ended | Three months ended | |||||
June 30, | June 30, | |||||
2024 | 2023 | |||||
Total loss and comprehensive loss for the period | (517,029 | ) | (975,778 | ) | ||
Add: | ||||||
Interest Expense, Net | 306,471 | 498,098 | ||||
Income Tax Expense | 84,375 | 195,000 | ||||
Depreciation and amortization | 699,559 | 919,035 | ||||
EBITDA | 573,376 | 636,355 | ||||
EBITDA - % (1) | 3.5% | 3.3% | ||||
| ||||||
Add (deduct): | ||||||
Stock-based compensation | 51,112 | 74,286 | ||||
Change in fair value of warrants | (24,275 | ) | 153 | |||
Finance fee | 20,000 | - | ||||
Foreign exchange (gain) loss | (41,887 | ) | 250,720 | |||
Software implentation expenses | - | 103,042 | ||||
Adjusted EBITDA | 578,326 | 1,064,556 | ||||
Adjusted EBITDA - % (2) | 3.6% | 5.6% | ||||
| ||||||
1 EBITDA % is a ratio of EBITDA divided by Total Revenue 2 Adjusted EBITDA % is a ratio of Adjusted EBITDA divided by Total Revenue |
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.
For further information:
Shawn Wilson, CEO,
1.778.382.7748;
BuildDirect Investor Relations
ir@builddirect.com
Condensed Consolidated Interim Statements of Financial Position
(Unaudited)
(Expressed in United States dollars)
As at June 30, 2024 | As at December 31, 2023 | ||||||
$ | $ | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | 2,323,515 | 2,601,893 | |||||
Short-term investments | 445,415 | 445,415 | |||||
Trade and other receivables (note 3) | 3,541,045 | 4,152,899 | |||||
Inventories (note 4) | 5,571,122 | 6,174,201 | |||||
Prepaid materials, expenses, and deposits | 1,704,077 | 1,229,526 | |||||
Total current assets | 13,585,174 | 14,603,934 | |||||
Non-current assets: | |||||||
Property and equipment (note 5) | 578,793 | 563,231 | |||||
Intangible assets (note 6) | 2,703,614 | 3,525,883 | |||||
Right-of-use assets (note 7) | 1,615,943 | 2,160,700 | |||||
Non-current deposits | 434,040 | 434,040 | |||||
Goodwill (note 6 | 2,530,622 | 2,530,622 | |||||
Deferred tax asset | 1,539,299 | 1,539,299 | |||||
Total non-current assets | 9,402,311 | 10,753,775 | |||||
Total Assets | 22,987,485 | 25,357,709 | |||||
| |||||||
Liabilities and Shareholders' Equity | |||||||
| |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities (note 8) | 5,434,947 | 5,895,863 | |||||
Income taxes payable | 361,214 | 210,339 | |||||
Current portion of lease liabilities (note 9) | 1,187,341 | 1,319,526 | |||||
Deferred revenue (note 10) | 1,573,420 | 1,559,755 | |||||
Current portion of loan payable (note 11) | 949,806 | 982,912 | |||||
Current portion of promissory note (note 13) | 1,172,273 | 1,135,710 | |||||
Current portion of deferred consideration payable (note 14) | - | 675,000 | |||||
Total current liabilities | 10,679,001 | 11,779,105 | |||||
Non-current liabilities: | |||||||
Lease liabilities (note 9) | 744,225 | 1,310,248 | |||||
Loan payable (note 11) | 7,397,779 | 6,514,693 | |||||
Warrants (note 12) | 47,910 | 75,224 | |||||
Promissory note (note 13) | 898,716 | 1,494,907 | |||||
Total non-current liabilities | 9,088,630 | 9,395,072 | |||||
| |||||||
Shareholders' equity: | |||||||
Share capital (note 15) | 123,136,971 | 123,109,599 | |||||
Share based payment reserve | 11,438,883 | 11,323,580 | |||||
Deficit | (131,356,000 | ) | (130,249,647 | ) | |||
Total Shareholders' equity | 3,219,854 | 4,183,532 | |||||
Total Liabilities and Equity | 22,987,485 | 25,357,709 | |||||
| |||||||
Going Concern (note 2(b)); Commitments and contingencies (note 18) See accompanying notes to Condensed Consolidated Interim Financial Statements. |
Condensed Consolidated Interim Statements of Operations and Comprehensive Loss
(Unaudited)
(Expressed in United States dollars)
For the three months ended June 30 | For the six months ended June 30 | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
| ||||||||||||||
Revenue (note 16) | $ | 16,182,846 | $ | 19,104,525 | $ | 31,772,698 | $ | 36,950,824 | ||||||
| ||||||||||||||
Cost of goods sold (note 5) | 9,998,090 | 11,529,055 | 19,496,991 | 22,382,913 | ||||||||||
| ||||||||||||||
Gross Profit | 6,184,756 | 7,575,470 | 12,275,707 | 14,567,911 | ||||||||||
| ||||||||||||||
Operating expenses: | ||||||||||||||
Fulfillment costs | 1,007,785 | 1,404,869 | 2,005,552 | 2,564,525 | ||||||||||
Selling and marketing | 1,384,578 | 1,390,105 | 2,747,135 | 2,721,915 | ||||||||||
Administration | 3,214,579 | 3,804,933 | 6,453,053 | 7,244,968 | ||||||||||
Research and development | 105,881 | 150,005 | 214,179 | 272,603 | ||||||||||
Depreciation and amortization | 699,559 | 919,035 | 1,400,395 | 1,836,904 | ||||||||||
6,412,382 | 7,668,947 | 12,820,314 | 14,640,915 | |||||||||||
| ||||||||||||||
Loss from operations | (227,626 | ) | (93,477 | ) | (544,607 | ) | (73,004 | ) | ||||||
| ||||||||||||||
Other income (expense): | ||||||||||||||
Interest income | 15,274 | 20,852 | 37,376 | 35,980 | ||||||||||
Interest expense | (321,745 | ) | (518,950 | ) | (651,607 | ) | (1,045,714 | ) | ||||||
Rental income | 55,281 | 61,670 | 111,476 | 123,340 | ||||||||||
Fair value adjustment of warrants (note 13) | 24,275 | (153 | ) | 27,314 | 21,551 | |||||||||
Finance fee (note 11) | (20,000 | ) | - | (20,000 | ) | - | ||||||||
Foreign exchange gain | 41,887 | (250,720 | ) | 85,570 | 8,407 | |||||||||
(205,028 | ) | (687,301 | ) | (409,871 | ) | (856,436 | ) | |||||||
| ||||||||||||||
Loss before income taxes | (432,654 | ) | (780,778 | ) | (954,478 | ) | (929,440 | ) | ||||||
| ||||||||||||||
Income tax expense | (84,375 | ) | (195,000 | ) | (151,875 | ) | (390,000 | ) | ||||||
| ||||||||||||||
Total loss and comprehensive loss for the period | $ | (517,029 | ) | $ | (975,778 | ) | $ | (1,106,353 | ) | $ | (1,319,440 | ) | ||
| ||||||||||||||
Deficit, beginning of period | $ | (130,838,971 | ) | $ | (126,821,109 | ) | $ | (130,249,647 | ) | $ | (126,477,447 | ) | ||
| ||||||||||||||
Deficit, end of period | $ | (131,356,000 | ) | $ | (127,796,887 | ) | $ | (131,356,000 | ) | $ | (127,796,887 | ) | ||
| ||||||||||||||
Loss per share: | ||||||||||||||
Basic and diluted loss per share (note 21) | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.03 | ) | ||||||
See accompanying notes to Condensed Consolidated Interim Financial Statements.
Condensed Consolidated Interim Statement of Changes in Equity (Deficiency)
(Unaudited)
(Expressed in United States dollars)
For the six months ended June 30, 2024 and 2023
Common Shares | Share based payment reserve | |||||||||||||||
Number | Amount | Deficit | Total | |||||||||||||
$ | $ | $ | $ | |||||||||||||
| ||||||||||||||||
Balance - December 31, 2022 | 40,819,913 | 122,803,204 | 11,121,785 | (126,477,447 | ) | 7,447,542 | ||||||||||
Issuance of share capital (note 15) | 1,121,622 | 306,395 | - | - | 306,395 | |||||||||||
Loss and comprehensive loss for the year | - | - | - | (1,319,440 | ) | (1,319,440 | ) | |||||||||
Share-based payment expense (note 15) | - | - | 116,729 | - | 116,729 | |||||||||||
Balance - June 30, 2023 | 41,941,535 | 123,109,599 | 11,238,514 | (127,796,887 | ) | 6,551,226 | ||||||||||
| ||||||||||||||||
Balance - December 31, 2023 | 41,941,535 | 123,109,599 | 11,323,580 | (130,249,647 | ) | 4,183,532 | ||||||||||
Issuance of share capital (note 15) | 91,171 | 27,372 | - | - | 27,372 | |||||||||||
Loss and comprehensive loss for the year | - | - | - | (1,106,353 | ) | (1,106,353 | ) | |||||||||
Share-based payment expense (note 15) | - | - | 115,303 | - | 115,303 | |||||||||||
Balance - June 30, 2024 | 42,032,706 | 123,136,971 | 11,438,883 | (131,356,000 | ) | 3,219,854 | ||||||||||
See accompanying notes to Condensed Consolidated Interim Financial Statements
Condensed Consolidated Interim Statement of Cash Flows
(Unaudited)
(Expressed in United States dollars)
For the three months ended June 30 | For the six months ended June 30 | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
| ||||||||||||
Cash provided by (used in): | ||||||||||||
| ||||||||||||
Operating activities: | ||||||||||||
Loss for the period | $ | (517,029 | ) | $ | (975,778 | ) | $ | (1,106,353 | ) | $ | (1,319,440 | ) |
Add (deduct) adjustments and items not affecting cash: | ||||||||||||
Depreciation | 699,559 | 919,037 | 1,400,395 | 1,836,906 | ||||||||
Income tax expense | 84,375 | 195,000 | 151,875 | 390,000 | ||||||||
Stock-based compensation expense | 51,122 | 74,286 | 115,303 | 116,729 | ||||||||
Other interest and finance cost | 292,700 | 465,655 | 587,875 | 933,641 | ||||||||
Interest paid on leases | 27,263 | 53,296 | 61,950 | 112,075 | ||||||||
Interest earned on lease receivables and other | (15,278 | ) | (20,852 | ) | (37,376 | ) | (35,980 | ) | ||||
Finance fee | 20,000 | - | 20,000 | - | ||||||||
Fair value adjustment on convertible debt and warrants | (24,275 | ) | 153 | (27,314 | ) | (21,551 | ) | |||||
Unrealized foreign exchange (gain) loss | (39,698 | ) | 15,556 | (79,497 | ) | 13,101 | ||||||
578,739 | 726,351 | 1,086,858 | 2,025,481 | |||||||||
| ||||||||||||
Income taxes paid | - | (194,500 | ) | (1,000 | ) | (194,500 | ) | |||||
Changes in non-cash operating working capital: | ||||||||||||
Trade and other receivables | 176,350 | (595,478 | ) | 469,152 | (449,985 | ) | ||||||
Inventories | 375,066 | (713,767 | ) | 603,079 | (535,914 | ) | ||||||
Prepaid materials, expenses, and deposits | 2,768 | 628,165 | (474,551 | ) | 286,655 | |||||||
Accounts payable and accrued liabilities | (1,033,754 | ) | 847,500 | (436,602 | ) | 870,264 | ||||||
Deferred revenue | (10,461 | ) | (663,158 | ) | 13,665 | 173,137 | ||||||
Total operating activities | 88,708 | 35,113 | 1,260,601 | 2,175,138 | ||||||||
| ||||||||||||
Investing activities: | ||||||||||||
Purchase of property and equipment | (19,600 | ) | (17,067 | ) | (48,929 | ) | (23,801 | ) | ||||
Principal received on lease receivables | 72,151 | 65,963 | 142,702 | 130,464 | ||||||||
Total investing activities | 52,551 | 48,896 | 93,773 | 106,663 | ||||||||
| ||||||||||||
Financing activities: | ||||||||||||
Proceeds from exercise of options | 23,652 | - | 27,372 | 306,395 | ||||||||
Interest paid | (86,992 | ) | (260,923 | ) | (186,758 | ) | (496,998 | ) | ||||
Principal lease payments | (350,728 | ) | (356,897 | ) | (698,207 | ) | (707,865 | ) | ||||
Promissory note repayment | (311,250 | ) | (311,250 | ) | (622,500 | ) | (622,500 | ) | ||||
Deferred consideration repayment | - | - | (675,000 | ) | (675,000 | ) | ||||||
Loan repayment | (238,322 | ) | (189,193 | ) | (477,815 | ) | (416,898 | ) | ||||
Loan proceeds | 1,000,000 | - | 1,000,000 | - | ||||||||
Total financing activities | 36,360 | (1,118,263 | ) | (1,632,908 | ) | (2,612,866 | ) | |||||
Effects of currency translation on cash and cash equivalents | 244 | - | 156 | - | ||||||||
Increase/(Decrease) in cash and cash equivalents | 177,863 | (1,034,254 | ) | (278,378 | ) | (331,095 | ) | |||||
Cash and cash equivalents, beginning of period | 2,145,652 | 4,810,913 | 2,601,893 | 4,107,754 | ||||||||
Cash and cash equivalents, end of period | $ | 2,323,515 | $ | 3,776,659 | $ | 2,323,515 | $ | 3,776,569 | ||||
See accompanying notes to Condensed Consolidated Interim Financial Statements
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/221352