Q2 2020 highlights:
- Revenue grows 290% to
$3.5 million - Gross Profit grows 484% to
$2.1 million with a 61% margin - Working Capital of
$5.6 million - Total Bookings
$3.7 million - Full report has been filed and is available on SEDAR
Q2 earnings will be released after the close today at
Conference ID: 597-9019
Dial in: +1 (435) 777-2200
Toll-Free + 1 (800) 309-2350
Condensed Consolidated Interim Statements of Financial Position
(Unaudited - Expressed in Canadian dollars)
$ | $ | ||||
ASSETS | |||||
Current assets | |||||
Cash | 6,282,197 | 2,849,344 | |||
Receivables (Note 4) | 264,104 | 403,651 | |||
Prepaid expenses and deposits | 195,990 | 200,650 | |||
Inventory | 1,681,465 | 1,353,584 | |||
Total current assets | 8,423,756 | 4,807,229 | |||
Non-current assets | |||||
Equipment (Note 5) | 242,303 | 146,555 | |||
Intangible assets (Note 6) | 2,250,734 | 1,420,552 | |||
3,997,440 | 2,262,527 | ||||
Total non-current assets | 6,490,477 | 3,829,634 | |||
TOTAL ASSETS | 14,914,233 | 8,636,863 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
LIABILITIES | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities (Note 7) | 1,748,473 | 1,243,528 | |||
Other payables (Note 8) | - | 230,174 | |||
Contingent consideration (Note 3) | 1,067,181 | - | |||
Total current liabilities | 2,815,654 | 1,473,702 | |||
Long-term liabilities | |||||
Deferred income tax liability | 48,478 | 96,956 | |||
Total Long-term liabilities | 48,478 | 96,956 | |||
TOTAL LIABILITIES | 2,864,132 | 1,570,658 | |||
EQUITY | |||||
Share capital (Note 10) | 23,562,376 | 15,210,041 | |||
Convertible debentures (Note 9) | - | 1,025,595 | |||
Reserves (Note 10) | 2,565,234 | 1,407,330 | |||
Deficit | (14,077,509 | ) | (10,576,761 | ) | |
TOTAL SHAREHOLDERS’ EQUITY | 12,050,101 | 7,066,205 | |||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 14,914,233 | 8,636,863 |
Condensed Consolidated Interim Statements of Comprehensive Loss
For the three and six months ended
(Unaudited - Expressed in Canadian dollars)
For the three months ended | For the six months ended | |||||||
2020 | 2019 | 2020 | 2019 | |||||
$ | $ | $ | $ | |||||
Revenue | 3,529,029 | 905,915 | 6,021,014 | 1,807,025 | ||||
Cost of sales | (1,359,294 | ) | (534,094 | ) | (2,503,430 | ) | (1,068,187 | ) |
Gross profit | 2,169,735 | 371,821 | 3,517,584 | 738,838 | ||||
Operating expenses | ||||||||
Sales and marketing | 1,547,995 | 558,743 | 3,047,310 | 1,255,695 | ||||
General and administrative | 1,927,105 | 462,116 | 2,690,187 | 844,170 | ||||
Research and development | 563,671 | 164,867 | 937,002 | 748,776 | ||||
Amortization (Note 6) | 132,458 | 31,476 | 220,711 | 62,951 | ||||
Depreciation (Note 5) | 17,434 | 8,249 | 27,283 | 24,342 | ||||
Foreign exchange loss (gain) | 6,283 | 70,334 | 7,977 | 27,352 | ||||
Total operating expenses | 4,194,946 | 1,295,785 | 6,930,470 | 2,963,287 | ||||
Operating loss | (2,025,211 | ) | (923,964 | ) | (3,412,886 | ) | (2,224,449 | ) |
Loss before income taxes | (2,025,211 | ) | (923,964 | ) | (3,412,886 | ) | (2,224,449 | ) |
Deferred income tax recovery | 24,239 | - | 48,478 | - | ||||
Net loss | (2,000,972 | ) | (923,964 | ) | (3,364,408 | ) | (2,224,449 | ) |
Other comprehensive income (loss) | ||||||||
Exchange differences on translating foreign operations | (308,552 | ) | - | 179,764 | - | |||
Total comprehensive loss | (2,309,524 | ) | (923,964 | ) | (3,184,644 | ) | (2,224,449 | ) |
Loss per common share | ||||||||
Basic and diluted loss per common share | (0.04 | ) | (0.02 | ) | (0.05 | ) | (0.04 | ) |
Weighted average number of common shares outstanding | 65,713,035 | 53,790,361 | 63,147,313 | 52,356,663 |
Condensed Consolidated Interim Statements of Changes In Shareholders' Equity
For the six months ended
(Unaudited - Expressed in Canadian dollars)
Number of shares | Share capital | Equity portion of convertible debenture | Reserves | Deficit | Total | |||||||||||
$ | $ | $ | $ | $ | ||||||||||||
Balance, | 43,687,872 | 6,365,393 | - | 423,463 | (2,345,482 | ) | 4,443,374 | |||||||||
Partial escrow cancellation | (400,000 | ) | - | - | - | - | - | |||||||||
Acquisition of | 2,000,000 | 1,620,000 | - | - | - | 1,620,000 | ||||||||||
Shares released from escrow for services | - | 60,000 | - | - | - | 60,000 | ||||||||||
Shares issued for exercise of warrants | 8,461,500 | 2,605,750 | - | - | - | 2,605,750 | ||||||||||
Shares issued for acquisition payable | 100,000 | 66,630 | - | - | - | 66,630 | ||||||||||
Private placement | 566,000 | 339,600 | - | - | - | 339,600 | ||||||||||
Stock-based compensation | - | - | - | 523,702 | - | 523,702 | ||||||||||
Net loss | - | - | - | - | (2,224,449 | ) | (2,224,449 | ) | ||||||||
Balance, | 54,415,372 | 11,057,373 | - | 947,165 | (4,569,931 | ) | 7,434,607 | |||||||||
Balance, | 60,509,250 | 15,210,041 | 1,025,595 | 1,407,330 | (10,576,761 | ) | 7,066,205 | |||||||||
Convertible debentures | 1,910,163 | 1,161,935 | (1,025,595 | ) | - | (136,340 | ) | - | ||||||||
Shares issued for exercise of warrants | 2,057,504 | 1,734,861 | - | - | - | 1,734,861 | ||||||||||
Shares issued for exercise of options | 1,195,666 | 381,600 | - | - | - | 381,600 | ||||||||||
Shares issued for purchase of Jolokia | 1,000,000 | 1,491,889 | - | - | - | 1,491,889 | ||||||||||
Shares issued to settle related party liability | 47,799 | 38,239 | - | - | - | 38,239 | ||||||||||
Share-based payment | 810,006 | 648,005 | - | 864,899 | - | 1,512,904 | ||||||||||
Private placement | 1,528,036 | 3,208,876 | - | - | - | 3,208,876 | ||||||||||
Share issuance costs | - | (313,070 | ) | - | 113,241 | - | (199,829 | ) | ||||||||
Net loss | - | - | - | - | (3,364,408 | ) | (3,364,408 | ) | ||||||||
Translation of foreign operations | - | - | - | 179,764 | - | 179,764 | ||||||||||
Balance as at | 69,058,424 | 23,562,376 | - | 2,565,234 | (14,077,509 | ) | 12,050,101 |
Condensed Consolidated Interim Statements of Cash Flows
For the three and six months ended
(Unaudited - Expressed in Canadian dollars)
For the three months ended | For the six months ended | |||||||
2020 | 2019 | 2020 | 2019 | |||||
OPERATING ACTIVITIES | ||||||||
Net loss | (2,000,972 | ) | (923,964 | ) | (3,364,408 | ) | (2,224,449 | ) |
Items not affecting cash: | ||||||||
Amortization of intangible assets | 132,458 | 31,476 | 220,711 | 62,951 | ||||
Deferred income tax recovery | (24,239 | ) | - | (48,478 | ) | - | ||
Depreciation of property and equipment | 17,434 | 8,249 | 27,283 | 24,342 | ||||
Shares issued to settle related party liability | - | - | 38,239 | |||||
Share-based payments | 861,958 | 161,851 | 1,512,904 | 523,702 | ||||
Shares released from escrow for services | - | - | - | 60,000 | ||||
Option and warrant exercised shares outstanding | (183,737 | ) | - | (183,737 | ) | - | ||
Changes in non-cash working capital items | ||||||||
Receivables | 356,792 | (262,168 | ) | 139,547 | (475,643 | ) | ||
Prepaid expenses and deposits | 23,735 | (237,958 | ) | 4,660 | (647,845 | ) | ||
Inventory | (83,071 | ) | (399,609 | ) | (327,881 | ) | (667,458 | ) |
Accounts payable and accrued liabilities | 673,907 | (709,979 | ) | 480,787 | (879,459 | ) | ||
Other payables | (97,771 | ) | - | (230,174 | ) | - | ||
Net cash used in operating activities | (323,506 | ) | (2,332,103 | ) | (1,730,547 | ) | (4,223,858 | ) |
INVESTING ACTIVITIES | ||||||||
Cash acquired in a business combination | - | - | - | 128,670 | ||||
Cash paid for acquisition of HootView | - | - | - | (85,664 | ) | |||
Purchase of equipment | - | - | - | (12,125 | ) | |||
Net cash used in investing activities | - | - | - | 30,881 | ||||
FINANCING ACTIVITIES | ||||||||
Proceeds from exercise of options and warrants | 1,404,022 | - | 2,116,461 | 2,605,750 | ||||
Net proceeds from private placement | 3,009,047 | 339,600 | 3,009,047 | 339,600 | ||||
Net cash provided by financing activities | 4,413,069 | 339,600 | 5,125,508 | 2,945,350 | ||||
Foreign exchange | (117,022 | ) | (266,280 | ) | 37,892 | (170,541 | ) | |
Net change in cash | 3,972,541 | (2,258,782 | ) | 3,432,853 | (1,418,168 | ) | ||
Cash, beginning | 2,309,656 | 2,487,471 | 2,849,344 | 1,646,858 | ||||
Cash, ending | 6,282,197 | 228,689 | 6,282,197 | 228,689 |
(Above excerpts from the condensed consolidated interim financial statements should be read in conjunction with the financial statement notes).
Non-IFRS Measures
This News Release makes reference to certain non-IFRS measures such as “Total Bookings” and “Backlog”. These non-IFRS measures are not recognized, defined or standardized measures under IFRS. Our definition of Total Bookings and Backlog will likely differ from that used by other companies and therefore comparability may be limited.
Total Bookings and Backlog should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS. These non-IFRS measures should be read in conjunction with our condensed consolidated interim financial statements and the related notes thereto as at and for the three and six months ended
Three months ended | Six months ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Total Bookings | $ | 3,680,111 | $ | 905,915 | $ | 6,239,291 | $ | 1,807,025 | |||||||
Total Revenue | 3,529,029 | 905,915 | 6,021,014 | 1,807,025 | |||||||||||
Adjustment for bookings | 151,082 | - | 218,277 | - | |||||||||||
Adjustment for backlog | (51,000 | ) | - | (118,195 | ) | - | |||||||||
Backlog | $ | 100,082 | $ | - | $ | 100,082 | $ | - |
About NexTech AR
The company is pursuing four verticals:
InfernoAR: An advanced Augmented Reality and Video Learning Experience Platform for Events, is a SaaS video platform that integrates Interactive Video, Artificial Intelligence and Augmented Reality in one secure platform to allow enterprises the ability to create the world’s most engaging virtual event management and learning experiences. Automated closed captions and translations to over 64 languages. According to
ARitize™ For eCommerce: The company launched its SaaS platform for webAR in eCommerce early in 2019.
ARitize™ 3D/AR Advertising Platform: Launched in Q1 2020 the ad platform will be the industry's first end-to-end solution whereby the company will leverage its 3D asset creation into 3D/AR ads. In 2019, according to IDC, global advertising spend will be about
ARitize™ Hollywood Studios: The studio is in development producing immersive content using 360 video, and augmented reality as the primary display platform.
To learn more, please follow us on Twitter, YouTube, Instagram, LinkedIn, and Facebook, or visit our website: https://www.nextechar.com.
On behalf of the Board of
“
CEO and Director
For further information, please contact:
Chief Executive Officer
info@nextechar.com
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, “will be”, “looking forward” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements regarding the Company increasing investors awareness are based on the Company’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of
Source:
2020 GlobeNewswire, Inc., source