All dollar amounts in this press release are expressed in the Canadian dollars.
Q3 2024 Highlights
- Revenue decreased by
$1.33 million , reflecting an 87% drop in the three month period endedDecember 31, 2023 as compared to the corresponding period in the prior year. Total revenue decreased by$4.80 million , or 77%, in the nine month period endedDecember 31, 2023 as compared to the same period in the prior year. The decreases can be attributed to the termination of the trademark license agreement between Eastman Kodak Company and the Company, which ended the sales of Kodak products, lower Business to Consumer ("B2C") sales of Motorola watches on e-commerce platforms in the first fiscal quarter of 2024 (April 2023 toJune 2023 ) and no B2C sales thereafter. - Gross profit was
$0.03 million in the three months endedDecember 31, 2023 , a$2.83 million improvement to the same period in the prior year. The improvement is due to sales of the Moto 70 and Moto 40 watches during the three month period endedDecember 31, 2023 , both bearing higher gross profit ratios than compared to Kodak products, which held a considerable portion of sales during the three month period endedDecember 31 , 2022.As compared to the gross loss of$1.73 million during the nine months ended December 31,2023,the entity made a gross profit of$0.57 million . This was driven by the fact that multiple inventory write offs took place in December, 2022, whereas, no such write offs took place during the nine month period endedDecember 31, 2023 . - There was a net loss of approximately
$1.14 million for the three month period endedDecember 31, 2023 , which represents an 81% improvement compared to the$6.06 million net loss for the corresponding period in the prior year. The decrease in net loss was due to lower operating expenditures and comparative increase in gross profit ratio for the three months endedDecember 31, 2023 .
"Our improved capital structure and lower debt costs, alongside strengthened relationships with suppliers and customers, are driving positive momentum." said Kalvie Legat, Interim Chief Executive Officer of
About
Neither the
Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. In general, forward-looking information is disclosure about future conditions, courses of action, and events, including information about prospective financial performance or financial position. The use of any of the words "anticipates", "believes", "expects", "intends", "plans", "will", "would", and similar expressions are intended to identify forward-looking information.
By its nature, forward-looking information is subject to various risks, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed in this document. Please refer to the Company's
Readers are cautioned not to place undue reliance on forward-looking information, which is given as of the date of this press release, and to not use such forward-looking information other than for its intended purpose.
Further Information
For further information about
Kalvie Legat
Interim Chief Executive Officer
+1 403 560-9635
ir@cebrands.ca
SOURCE
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