TORONTO, May 30, 2022
/CNW/ - Eddy Smart Home Solutions Ltd. (formerly Aumento Capital
VIII Corp.) ("Eddy" or the "Company") (TSXV: EDY) released its
unaudited financial statements for the three months ended
March 31, 2022.
Operational Update for Eddy
Leveraging a significant sales and operational investment in
2021, Eddy entered the year poised for growth. During the first
quarter of 2022, Eddy attained meaningful expansion in all aspects
of the organization, further solidifying Eddy's position as a North
American leader in intelligent water management and leak
protection. During the first quarter of 2022, sales efforts added 9
new buildings into our backlog, accounting for nearly 1,400 new
subscribers and approximately $3.4MM
in additional future contracted revenue, bringing Eddy's total
future contracted revenue to approximately $17MM. Eddy earns
revenue over the term of its contracts, beginning on a
straight-line basis with commences upon installation. The term of
the contracts are typically 84 months.
Subsequent to the close of the first quarter, 2022, Eddy's Sales
team landed several key contracts, taking our backlog to
approximately $26MM, demonstrating a 100% increase and significant
sales momentum for the remainder of the year.
Revenue
Revenue for the three months ended March
31, 2022, increased by $23,383
to $382,805, as compared to
$359,422 reported for the comparable
period in 2021.
Net Loss
Net loss for the three months ended March
31, 2022, increased to ($4,688,594), as compared to ($1,270,853) reported for the three months ended
March 31, 2021. Excluding the
non-recurring, non-cash items related to the TSX-V listing, which
amounted to $2,406,778 (consisting of
the listing expense of $858,118, the
issuance of common shares of the Company of $872,260 and the issuance of warrants of the
Company of $676,400), the adjusted
net loss for the three months ended March
31, 2022 was ($2,281,816).
Basic and Diluted Loss per Share
Basic and diluted loss per share for the three months ended
March 31, 2022 was ($0.08), as compared to ($0.04) reported in the same period in 2021.
For further information on the financial results of the Company,
please review the Company's unaudited consolidated condensed
interim financial statements and management's discussion and
analysis of the financial condition and results of operations for
the three months ended March 31,
2022, available on the Eddy's SEDAR website at
www.sedar.com. In addition, supplemental information is
available on the Eddy's website at
www.eddysolutions.com/investors
Subsequent Events
On May 4, 2022, the Company
announced the successful closing of the previously announced
acquisition on March 25, 2022, of all
the issued and outstanding common shares of Reed Controls Inc. (dba
Reed Water) ("Reed"). The
total purchase price for the transaction was C$7,359,600 paid in Common Shares of the Company
at a price of $0.60 per Common Share
with 12,266,000 Common Shares being issued in aggregate (the "Share
Consideration"). The Share Consideration is subject to a
twenty-four (24) month lock-up period, provided that the Share
Consideration will be released from the lock-up requirements on the
first business day following each of the four, six, nine, twelve,
fifteen, eighteen and twenty-one month anniversaries of the closing
date, and such other terms, as may be imposed by the Exchange. The
Share Consideration will also be subject to a statutory four month
hold period. Upon the closing of the transaction, Reed's
founders joined the Company's leadership team. Reed has also
been granted a right to nominate a director to serve on the
Company's board of directors (the "Board"), and a Board
observer.
"Eddy's progress in Q1 of 2022 is strategically in line with our
objectives," said Travis Allan, CEO
of Eddy. "The recently completed acquisition of Reed optimizes
operations with an expanded product portfolio and further
strengthens the management team, solidifying Eddy's position as a
North American leader in water management."
Currency
In this news release, references to "$" are to Canadian dollars.
Dollar amounts are presented herein in Canadian currency unless
otherwise indicated.
About Eddy
Eddy is a North American provider and developer of residential
and commercial smart water metering products and monitoring
services, helping property owners protect, control, and conserve
water usage by combining water sensing devices with behavioural
learning software. For more detail on the Company's products or
corporate information please visit www.eddysolutions.com.
Forward-Looking Information and Statements
This news release contains forward-looking statements within the
meaning of applicable securities laws including, among others,
statements concerning our objectives, our strategies to achieve
those objectives, our performance, as well as statements with
respect to management's beliefs, estimates, and intentions, and
similar statements concerning anticipated future events, results,
circumstances, performance, or expectations that are not historical
facts. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as "outlook",
"objective", "may", "will", "expect", "intent", "estimate",
"anticipate", "believe", "should", "plans", or "continue", or
similar expressions suggesting future outcomes or events. Such
forward-looking statements reflect management's current beliefs and
are based on information currently available to management. Forward
looking information in this news release includes information
regarding additional future contracted revenue, the Company's
leadership position in intelligent water management and leak
protection and the expectation of future sales momentum. These
statements are not guarantees of future performance and are based
on our estimates and assumptions that are subject to risks and
uncertainties, including those described under the heading "Risk
Factors" in the Company's filing statement dated January 6, 2022 "(a copy of which can be obtained
at www.sedar.com), which could cause our actual results and
performance to differ materially from the forward-looking
statements contained in this news release.
All forward-looking statements in this news release are
qualified by these cautionary statements. Except as required by
applicable law, the Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Eddy Smart Home Solutions Ltd.