Highlights of financial results for three months ended
Inc./(Dec) | ||||||
Revenues | $ | 584,837 | $ | 373,297 | $ | 211,540 |
Direct expenses | ||||||
Costs of loyalty rewards, and marketing in connection with Advantex's merchant | $ | 164,996 | $ | 138,171 | $ | 26,825 |
Expense for provision against delinquent accounts, credit/collection expense | $ | 6,180 | $ | 1,466 | $ | 4,714 |
Gross profit | $ | 413,661 | $ | 233,660 | $ | 180,001 |
Selling and General & administrative expenses | $ | 421,020 | $ | 450,506 | $ | (29,487) |
Federal Covid-19 wage and rent subsidies | $ | (1,888) | $ | (101,000) | $ | (99,113) |
(Loss) from operations before depreciation, amortization and interest | $ | (5,471) | $ | (115,846) | $ | (110,375) |
Stated interest expense - loan payable, and 9% non convertible debentures payable | $ | 314,077 | $ | 244,207 | $ | 69,870 |
(Loss) from operations before depreciation, amortization, non cash interest and | $ | (319,548) | $ | (360,053) | $ | (40,505) |
Interest - Lease | $ | 180 | $ | 2,172 | $ | (1,992) |
Non-cash interest expense - accretion charges, restructuring bonus and amortization of | $ | 211,676 | $ | 194,183 | $ | 17,493 |
Net (loss) and comprehensive (loss) | $ | (531,404) | $ | (556,408) | $ | (25,004) |
The above tabulation is a non-GAAP presentation and is provided to assist readers in understanding Advantex's financial performance. The information is extracted from consolidated financial statements for three months ended
Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn Aeroplan points at participating merchants.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information go to Advantex's profile on www.sedar.com
Consolidated Statements of Financial Position (unaudited)
(expressed in Canadian dollars)
Note |
|
| |
$ | $ | ||
Assets | |||
Current assets | |||
Cash | $ 156,938 | $ 93,185 | |
Accounts receivable | 73,103 | 83,320 | |
Transaction credits | 5 | 1,639,763 | 3,312,268 |
Prepaid expenses and sundry assets | 1,589 | 41,589 | |
$ 1,871,393 | $ 3,530,362 | ||
Total assets | $ 1,871,393 | $ 3,530,362 | |
Liabilities | |||
Current liabilities | |||
Loan payable | 6 | $ 2,420,240 | $ 4,019,685 |
Lease liability | 15 | - | 12,768 |
Loan | 16 | 60,000 | 60,000 |
Accounts payable and accrued liabilities | 2,896,743 | 2,825,914 | |
$ 5,376,983 | $ 6,918,367 | ||
Non-current liabilities | |||
9% non convertible debentures payable | 7 | $ 7,367,697 | $ 6,953,878 |
$ 7,367,697 | $ 6,953,878 | ||
Total liabilities | $ 12,744,680 | $ 13,872,245 | |
Shareholders' deficiency | |||
Share capital | 8 | $ 24,530,555 | $ 24,530,555 |
Contributed surplus | 7,742,802 | 7,742,802 | |
Accumulated other comprehensive loss | (47,383) | (47,383) | |
Deficit | (43,099,261) | (42,567,857) | |
Total deficiency | $ (10,873,287) | $ (10,341,883) | |
Total liabilities and deficiency | $ 1,871,393 | $ 3,530,362 | |
Going concern (note 2) and Commitments and contingencies (note 11) | |||
The accompanying notes are an integral part of these consolidated financial statements | |||
Approved by the Board | |||
Director: Signed "Marc Lavine" | Director: Signed "Kelly Ambrose" | ||
| | ||
Consolidated Statements of Loss and Comprehensive Loss (unaudited)
For the three months ended
(expressed in Canadian dollars)
Note | 2022 | 2021 | |
$ | $ | ||
Revenues | 14 | ||
Marketing activities | $ 216,577 | $ 197,468 | |
Interest income | 368,260 | 175,829 | |
$ 584,837 | $ 373,297 | ||
Direct expenses | 13/14 | 171,176 | 139,637 |
413,661 | 233,660 | ||
Operating expenses | |||
Selling and marketing | 13/14 | 134,747 | 147,898 |
General and administrative | 13/14 | 284,385 | 201,608 |
(Loss) from operations before depreciation, amortization and interest | (5,471) | (115,846) | |
Stated interest expense - loan payable, and 9% non convertible debentures payable | 6/7 | 314,077 | 244,207 |
Interest - Lease | 15 | 180 | 2,172 |
Non-cash interest expense - accretion charges, restructuring bonus and amortization of transaction costs | 7 | 211,676 | 194,183 |
Net (loss) and comprehensive (loss) | $ (531,404) | $ (556,408) | |
(Loss) per share | |||
Basic and Diluted | 12 | $ (0.00) | $ (0.01) |
The accompanying notes are an integral part of these consolidated financial statements |
Consolidated Statements of Changes in Shareholders' Deficiency (unaudited)
For the three months ended
(expressed in Canadian dollars)
Class A | Common | Contributed | Accumulated | Deficit | Total | |
$ | $ | $ | $ | $ | $ | |
Balance at | $ 3,815 | $ 24,526,740 | $ 7,364,720 | $ (47,383) | $ (39,860,019) | $ (8,012,127) |
Issuance of 9% non convertible debentures payable (note 7) | - | - | 402,725 | - | - | 402,725 |
Net (loss) and comprehensive (loss) | - | - | - | - | (556,408) | (556,408) |
Balance at | $ 3,815 | $ 24,526,740 | $ 7,767,445 | $ (47,383) | $ (40,416,427) | $ (8,165,810) |
Balance at | $ 3,815 | $ 24,526,740 | $ 7,742,802 | $ (47,383) | $ (42,567,857) | $ (10,341,883) |
Net (loss) and comprehensive (loss) | - | - | - | - | (531,404) | (531,404) |
Balance at | $ 3,815 | $ 24,526,740 | $ 7,742,802 | $ (47,383) | $ (43,099,261) | $ (10,873,287) |
The accompanying notes are an integral part of these consolidated financial statements |
Consolidated Statements of Cash Flow (unaudited)
For the three months ended
(expressed in Canadian dollars)
Note | 2022 | 2021 | |
$ | $ | ||
Operational activities | |||
Net (loss) for the period | $ (531,404) | $ (556,408) | |
Adjustments for: | |||
Accrued and unpaid 9% non convertible debentures payable interest | 7 | 202,143 | 173,506 |
Interest - Lease | 15 | 180 | 2,172 |
Accretion charge - 9% non convertible debentures payable | 7 | 187,360 | 173,944 |
Restructuring bonus - 9% non convertible debentures payable | 7 | 19,304 | 18,749 |
Amortization of transaction costs - 9% non convertible debentures payable | 7 | 5,012 | 1,490 |
(117,405) | (186,547) | ||
Changes in items of working capital | |||
Accounts receivable | 10,217 | (8,386) | |
Transaction credits | 1,672,505 | (1,154,293) | |
Prepaid expenses and sundry assets | 40,000 | (1,998) | |
Accounts payable and accrued liabilities | 70,829 | (10,694) | |
1,793,551 | (1,175,371) | ||
Net cash generated/(used) - operating activities | $ 1,676,146 | $ (1,361,918) | |
Financing activities | |||
Gross proceeds - 9% non convertible debentures payable | 7 | $ - | $ 1,000,000 |
Transaction costs - 9% non convertible debentures payable | 7 | - | (77,501) |
Payment for lease | 15 | (12,948) | (19,419) |
Proceeds of loan payable | 6 | 628,452 | 2,190,551 |
(Repayment) of loan payable | (2,227,897) | (1,178,917) | |
Net cash generated/(used) - financing activities | $ (1,612,393) | $ 1,914,714 | |
Increase in cash during the period | $ 63,753 | $ 552,796 | |
Cash at beginning of the period | 93,185 | 82,606 | |
Cash at end of the period | $ 156,938 | $ 635,402 | |
Additional information | |||
Interest paid | $ 111,934 | $ 70,701 | |
The accompanying notes are an integral part of these consolidated financial statements |
SOURCE
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