The audited year end financial statements were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the
SUMMARY OF FINANCIAL PERFORMANCE
Year ended | 2023 | 2022 | 2021 | ||||||
Revenues | $ | 10,819,916 | $ | 10,931,188 | $ | 7,425,707 | |||
Gross profit | $ | 4,582,447 | $ | 4,908,996 | $ | 3,196,492 | |||
Gross profit margin | 42% | 45% | 43% | ||||||
Operating expenses | $ | 5,878,723 | $ | 6,126,992 | $ | 6,254,981 | |||
Taxes | $ | 170,475 | $ | 166,031 | $ | 172,639 | |||
Net income (loss) | $ | (2,101,886) | $ | (1,355,417) | $ | (2,758,567) | |||
Basic and diluted earnings (loss) per share | $ | (0.04) | $ | (0.02) | $ | (0.05) | |||
Non-cash recoveries and expenses | $ | 1,085,924 | $ | 1,271,842 | $ | 549,612 | |||
Adjusted EBITDA (Loss) (1) | $ | (845,487) | $ | (83,575) | $ | (1,436,435) | |||
Liquidity and Capital Resources | |||||||||
Working capital | $ | 5,026,580 | $ | 7,000,568 | $ | 8,670,165 | |||
Cash | $ | 1,433,838 | $ | 2,712,446 | $ | 3,377,464 | |||
Accounts receivable | $ | 1,065,411 | $ | 1,381,979 | $ | 807,009 | |||
Net equity | $ | 8,720,248 | $ | 10,781,672 | $ | 12,055,113 | |||
Total assets | $ | 9,703,271 | $ | 12,147,143 | $ | 13,728,510 | |||
Common shares outstanding | 54,443,422 | 54,320,086 | 54,320,086 | ||||||
(1) Adjusted EBITDA for the year ended |
Year ended | |||||||||
2023 | 2022 | 2021 | |||||||
Net income (loss) | $ | (2,101,886) | $ | (1,355,417) | $ | (2,758,567) | |||
Unrealized foreign exchange loss (gain) | $ | 1,154 | $ | (31,648) | $ | (26,409) | |||
Amortization | $ | 785,505 | $ | 1,044,222 | $ | 1,573,091 | |||
Income taxes | $ | 170,475 | $ | 166,031 | $ | 172,639 | |||
Gain on revaluation of derivative warrant liability | $ | (3,665) | $ | (263,446) | $ | (658,626) | |||
Gain on repurchase of RSU’s | $ | (40,785) | $ | (45,806) | $ | - | |||
Write down of inventory | $ | 214,225 | $ | 260,040 | $ | 117,403 | |||
Gain (loss) on sale of property, plant and equipment | $ | - | $ | (20,602)- | $ | 8,389 | |||
Share based expense | $ | 129,490 | $ | 163,051 | $ | 133,645 | |||
Bad debt recovery | $ | - | $ | - | $ | 2,000 | |||
Adjusted EBITDA (Loss) | $ | (845,487) | $ | (83,575) | $ | (1,436,435) | |||
Adjusted EBITDA (loss) represents net earnings or loss for the year ended
Readers are cautioned that Adjusted EBITDA should not be construed as an alternative to net income as determined under IFRS; nor as an indicator of financial performance as determined by IFRS; nor a calculation of cash flow from operating activities as determined under IFRS; nor as a measure of liquidity and cash flow under IFRS. The Company's method of calculating Adjusted EBITDA may differ from methods used by other issuers and, accordingly, the Company's Adjusted EBITDA may not be comparable to similar measures used by any other issuer.
LIQUIDITY AND CAPITAL RESOURCES
As at
The Company had income tax payable of
The working capital position of the Company as at
Total assets of the Company were
OUTLOOK
During Fiscal 2023, Kelso continued to strengthen the portfolio of its rail products by closely monitoring those products near completion of the required AAR service trial period. The strategic focus is to obtain full AAR approvals in 2024 for our entire portfolio of rail pressure car products to better grow our financial performance in a sustainable meaningful way. This has been the Company’s core branding ambition over the past fourteen years and it is now close to fruition in 2024.
Rail operations in our
Financial performance has fallen short of original expectations with our 5 year average at
Key to the development of the Company’s rail revenue growth ambitions in 2024 is the full AAR approval of our pressure car package. This package sells at a much higher tank car unit value. It is expected to grow rail car revenue from an average of
Since mid 2021 the Company’s automotive innovation development operations have been heavily engaged in creating a unique fully automated “center-of-gravity” oriented Advanced Driver-Assistance System (“ADAS”) designed specifically for wilderness travel. In 2023 the Company confirmed that it had created the first “field-tested” automated suspension-based ADAS for emergency and commercial mission-critical wilderness operations. Our ADAS technologies are specifically designed to address the challenging issues of worker well being and safety as well as ecological protection while delivering effective and efficient operational advantages to wilderness operating stakeholders. The innovation design objectives are to create products that diminish the potentially dangerous effects of human and technology error through the use of the Company’s proprietary engineered solutions.
On
In the automotive industry, ADAS refers to specialized automated technical features that are designed to increase the safety of operating motor vehicles on existing roadways. Current automotive industry design ambitions are to use human-machine interfaces that can assist a driver’s ability to react to dangers on established roads. Upon extensively field testing the unique Method, Kelso’s intelligence supports that the Company is the first enterprise to demonstrate a functional automated suspension-specific ADAS for commercial wilderness applications. This is a major technology development advantage for the Company to grow future revenues from specialized automotive markets.
Very little emphasis, if any, by the automotive world has addressed ADAS requirements in wilderness operations. Our strategic business objectives are to lead the way on ADAS for no-road environments for emergency responders, commercial/industrial stakeholders and humanitarian aide and defense customers. Our business ambition is to participate in the emerging global ADAS software market which is estimated to reach the
In
The Method is now regulatory compliant for sales to commercial wilderness operations including existing forestry roads. The KXI equipped vehicle is compliant for operation on all resource and private roads through an all-terrain vehicle insurance policy. The ambition is to obtain the necessary federal and regional compliance approvals to enable the technology to operate on all roadways as early as 2025.
The low capital investment reflects the ease of conversion of the “host” vehicle to the Method system in order to minimize the costs of the final salable vehicle. Management is currently developing longer-term scheduling logistics, supply chain procurement systems, optimal inventory levels, labor and staffing needs and product design enhancements, continuing R&D needs, advancing engineering quality controls and general risk management controls.
Once completed the Phase-One facility is expected to have the potential to generate approximately
The Company will concentrate its production resources on delivering safety enhancing technology solutions for customers in, but not limited to, disaster response, wilderness fire fighting, mobile medical treatment, evacuation and emergency response, mining and exploration, energy transmission, civil engineering projects, telecommunications and geographic/environmental data systems.
In 2023, the Company made considerable progress in its research and development to create new innovative products. Timing of required regulatory approvals on new rail and automotive products and corresponding revenue streams remains unpredictable and cannot be guaranteed to be successful.
The Company feels it is on course for new value creation as we look forward to new business success in both rail and automotive markets. Management has determined a clear path for the commercialization of our new products in order to provide longer-term profitable revenue growth. With no interest-bearing long-term debt to service and improved sales prospects from larger diverse markets, Kelso can focus on the growth of its equity value from financial performance generated from a wider range of new proprietary products.
About
Kelso is a diverse engineering company that specializes in the creation, production, sales and distribution of proprietary products used in rail and automotive transportation. The Company’s rail engineering business has been developed as a designer and reliable domestic supplier of unique high-quality rail tank car valves that provide for the safe handling and containment of hazardous and non-hazardous commodities during rail transport. The automotive division of the Company has created the first proven automated suspension-based Advanced Driver Assistance System for commercial mission-critical wilderness operations. All Kelso products are specifically designed to address the challenging issues of public safety, worker well being and potential environmental harm while providing effective and efficient operational advantages to customers. Kelso’s innovation objectives are to create products that diminish the potential dangerous effects of human and technology error through the use of the Company’s portfolio of proprietary products.
For a more complete business and financial profile of the Company, please view the Company's website at www.kelsotech.com and public documents posted under the Company’s profile on SEDAR at www.sedarplus.ca in
On behalf of the Board of Directors,
Legal Notice Regarding Forward-Looking Statements: This news release contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include that our new rail products can sell for much higher unit values and are expected to grow our rail car revenue from an average of
For further information, please contact:
Corporate Address: | ||
Email: bond@kelsotech.com | Email: lee@kelsotech.com | 13966 - 18B Avenue www.kelsotech.com |
Source:
2024 GlobeNewswire, Inc., source