Edge Total Intelligence Inc. Reports Results for First Quarter 2022
May 30 2022 - 10:10PM
Edge Total Intelligence Inc. (TSXV: CTRL/ FSE:Q5i) (“edgeTI”, “we”,
“our” or the “Company”), a leader in real-time digital operations,
announces operating and consolidated results for the first quarter
2022. Financial information is expressed in United States (US)
dollars unless otherwise indicated. The Company’s related
financials and management discussion and analysis for the first
quarter, 2022 are posted on its profile on SEDAR (www.sedar.com).
Financial Highlights
- Total revenue
increased to $956,521 in Q1 2022 from $890,213 in Q4 2021, an
increase of 7.4% over the prior quarter due to increases in
subscription revenues
- Monthly
recurring revenue (MRR) grew to reach $307,596 in Q1 2022 from
$305,653 in Q4 2021.
- Gross margin
returned to 75% versus 58% in Q4 2021
- edgeTI commenced
trading on TSX-V under the symbol CTRL and began cross-listing on
the Frankfurt Stock Exchange as FSE:Q5i in March
Selected Financial Information |
Q1 2022 |
Q1 2021 |
Change |
Q1'2022 to Q1'2021 Comparison |
Revenue |
$ |
956,521 |
|
$ |
1,223,590 |
|
$ |
(267,069 |
) |
Cost of revenue |
|
235,822 |
|
|
345,665 |
|
|
(109,843 |
) |
Gross profit |
$ |
722,699 |
|
|
877,925 |
|
|
(157,226 |
) |
Gross margin % |
|
75 |
% |
|
72 |
% |
|
3 |
% |
|
|
|
|
Selling and marketing expenses |
|
391,888 |
|
|
402,880 |
|
|
(10,992 |
) |
Administrative expenses |
|
731,462 |
|
|
436,677 |
|
|
294,785 |
|
Research and development expenses |
|
419,442 |
|
|
283,297 |
|
|
136,145 |
|
Other (income) expenses |
|
107,192 |
|
|
(429,676 |
) |
|
536,868 |
|
Operating Expense |
$ |
1,649,984 |
|
$ |
693,178 |
|
|
956,806 |
|
Operating income (loss) |
|
(928,285 |
) |
|
184,747 |
|
|
(1,114,032 |
) |
Interest |
|
233,877 |
|
|
269,777 |
|
|
(35,900 |
) |
Change in fair value of warrant liability |
|
164,092 |
|
|
- |
|
|
164,092 |
|
Foreign exchange loss |
|
39,626 |
|
|
- |
|
|
39,626 |
|
Loss before income taxes |
$ |
(1,366,880 |
) |
$ |
(85,030 |
) |
$ |
(1,281,850 |
) |
Income tax expense |
|
- |
|
|
- |
|
|
- |
|
Net loss |
$ |
(1,366,880 |
) |
$ |
(85,030 |
) |
$ |
(1,281,850 |
) |
Assets, Cash Flows, & Non IFRS Measures
Assets /Liabilities |
Q1 2022 |
Q1 2021 |
Change |
Total assets |
$ |
8,077,895 |
|
$ |
9,985,779 |
|
$ |
(1,907,884 |
) |
Total non-current liabilities |
|
7,415,953 |
|
$ |
7,498,466 |
|
$ |
(82,513 |
) |
|
|
|
|
Cash Flows |
Q1 2022 |
Q1 2021 |
Change |
Cash flow (used in) from operating activities |
$ |
(1,046,183 |
) |
$ |
468,326 |
|
$ |
(1,514,509 |
) |
Cash flows (used in) from financing activities |
|
(753,594 |
) |
|
942,060 |
|
|
(1,695,654 |
) |
Cash used in investing activities |
|
(138,751 |
) |
|
(243,610 |
) |
|
104,859 |
|
|
|
|
|
Non- IFRS Measures |
Q1 2022 |
Q4 2021 |
Change |
Monthly Recurring Revenue (MRR) |
$ |
307,596 |
|
$ |
305,653 |
|
$ |
1,943 |
|
|
|
|
|
|
Q1 2022 |
Q4 2021 |
Change |
Adjusted EBITDA |
$ |
(523,226 |
) |
$ |
558,169 |
|
$ |
(1,081,395 |
) |
Operational Highlights
- The Company
identified several new revenue growth opportunities by attending
the AFCEA West in-person trade conference which focused on Sea
Services operations of U.S Navy, U.S. Marine Corps, and U.S. Coast
Guard
- The Company
continues to make progress on strategic partnerships, which will
aid future revenue growth performance
- Development
efforts focused on further “low-code” features to accelerate time
to value and expand automation capabilities which are projected to
increase business agility and returns on investments for its
customers
Outlook
Commenting on the Company's outlook, Jim
Barrett, Chief Executive Officer, said:
"Ongoing global challenges create a dynamic
business environment that is disrupting established global supply
lines and processes with broad reaching consequences according to
industry leaders of prospects and customers as well as industry
analysts. We intend to make our solutions even more relevant to
these evolving challenges as our software helps leaders see issues
and opportunities in real-time that uncover new opportunities while
accelerating others. As leaders search for insights and early
warnings with the ability to empower action, these new requirements
are driving new sales and better yet, positive customer results. As
such, we remain focused on our growth strategy by: 1) adding
strategic partnerships to unite expertise with our capabilities; 2)
increasing awareness across our industry and investors through
market analysts and marketing activities; 3) continuing to make our
product easy to use in order to promote adoption and accelerate
achievement of customer value; and 4) being mindful of customer
challenges and their needs to solve them with our software.”
Events subsequent to the First Quarter
- April 4th edgeTI
demoed at Smart Cities Connect 2022 Spring Conference
- April 11th
edgeTI and SD3IT teamed up to present at the TechNet Indo-Pacific
Spring 2022
- As previously
disclosed, on April 25th edgeTI entered into a credit and
convertible note agreement with Lotus Domain III, L.P. ("Lotus"), a
related party of the Company, under which $700,000 plus accrued
interest of $74,602.74 was converted to 1,577,815 subordinate
voting shares of the Company (the "Conversion")
About edgeTI
edgeTI helps customers achieve the impossible
with its real-time digital operations software, edgeCore™. Global
enterprises, service providers, and governments are more profitable
when insight and action are united to deliver fluid experiences via
the platform's low-code development capability. With edgeTI,
customers improve their margins and agility by rapidly transforming
siloed systems and data across evolving situations in business,
technology, and cross-domain operations. Traded on: TSXV: CTRL FSE:
Q5i
Learn more at https://edgeti.com.
For further Information contact:
Nick BrigmanPhone: 888-771-3343 Email:
ir@edgeti.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward-Looking Information and
Statements
Certain statements in this news release are
forward-looking statements or information for the purposes of
applicable Canadian and US securities law, including statements
regarding customer impacts of product development, the execution of
the Company's growth and marketing strategies, the Company's
expectations for its 2022 MRR and ARR, the Company's ability to
enter into strategic partnerships and continue to develop easy to
use products, and other matters. Forward-looking statements consist
of statements that are not purely historical, including any
statements regarding beliefs, plans, expectations or intentions
regarding the future. Such information can generally be identified
by the use of forwarding-looking wording such as "may", "expect",
"estimate", "anticipate", "intend", "believe" and "continue" or the
negative thereof or similar variations. The reader is cautioned
that assumptions used in the preparation of any forward-looking
information may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted, as
a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company,
including but not limited to, business, economic and capital market
conditions.
Such statements and information are based on
numerous assumptions regarding present and future business
strategies and the environment in which the Company will operate in
the future, including the demand for its products, anticipated
costs, and the ability to achieve goals. Factors that could cause
the actual results to differ materially from those in
forward-looking statements include, the continued availability of
capital and financing, the impact of Covid-19 or other viruses and
diseases on the Company's ability to operate, competition and
general economic, market or business conditions. Forward-looking
statements contained in this news release are expressly qualified
by this cautionary statement. The reader is cautioned not to place
undue reliance on any forward-looking information. The
forward-looking statements contained in this news release are made
as of the date of this news release. Except as required by law, the
Company disclaims any intention and assumes no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
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