Advantex Announces Fiscal 2021 Results
TORONTO, Oct. 28, 2021 /CNW/ - Advantex Marketing International Inc. (CSE: ADX) ("Advantex"), a leader in the merchant cash advance and loyalty marketing products for merchants, announced its results for twelve months ended June 30, 2021.
Highlights of financial results for twelve months ended June 30, 2021 compared to twelve months ended June 30, 2020:
Fiscal 2021 |
Fiscal 2020 |
Inc./(Dec) |
Inc./(Dec) |
|||||||
$ |
$ |
$ |
% |
|||||||
Revenues |
$ |
1,229,880 |
$ |
2,609,542 |
$ |
(1,379,662) |
-52.9% |
|||
Direct expenses |
||||||||||
Costs of loyalty rewards, and marketing in connection with Advantex's merchant based loyalty |
$ |
293,167 |
$ |
387,027 |
$ |
(93,860) |
||||
Expense for provision against delinquent accounts |
$ |
75,483 |
$ |
1,022,015 |
$ |
(946,532) |
||||
Gross profit |
$ |
861,230 |
$ |
1,200,500 |
$ |
(339,270) |
-28.3% |
|||
Selling and General & Administrative expenses |
$ |
1,285,744 |
$ |
2,065,763 |
$ |
(780,019) |
||||
(Loss) from operations before depreciation, amortization and interest |
$ |
(424,514) |
$ |
(865,263) |
$ |
(440,749) |
-50.9% |
|||
Stated interest expense - loan payable, and 9% non convertible debentures payable |
$ |
910,874 |
$ |
1,319,950 |
$ |
(409,076) |
||||
(Loss) from operations before depreciation, amortization, non cash interest and non cash items |
$ |
(1,335,388) |
$ |
(2,185,213) |
$ |
(849,825) |
-38.9% |
|||
Interest - Lease |
$ |
13,219 |
$ |
19,904 |
$ |
(6,685) |
||||
Interest expense - Accretion charges, restructuring bonus and amortization of transaction costs |
$ |
644,798 |
$ |
598,733 |
$ |
46,065 |
||||
Depreciation of right of use asset |
$ |
45,490 |
$ |
65,336 |
$ |
(19,846) |
||||
Depreciation of property, plant and equipment |
$ |
- |
$ |
15,210 |
$ |
(15,210) |
||||
Impairment of right of use asset |
$ |
53,072 |
$ |
43,000 |
$ |
10,072 |
||||
Net (loss) and comprehensive (loss) |
$ |
(2,091,967) |
$ |
(2,927,396) |
$ |
(835,429) |
-28.5% |
|||
Fuller details available in the Consolidated Financial Statements and MD&A available under Advantex's profile on www.sedar.com |
||||||||||
The above tabulation is a non-GAAP presentation and is provided to assist readers in understanding Advantex's financial performance. The information is extracted from consolidated financial statements for twelve months ended June 30, 2021.
About Advantex:
Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn Aeroplan points at participating merchants.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information go to Advantex's profile on www.sedar.com
Advantex Marketing International Inc.
Consolidated Statements of Financial Position
(expressed in Canadian dollars)
Note |
June 30, |
June 30, |
||||
$ |
$ |
|||||
Assets |
||||||
Current assets |
||||||
Cash |
$ |
82,606 |
$ |
166,601 |
||
Accounts receivable |
10 a |
93,090 |
118,901 |
|||
Transaction credits |
10 a |
1,726,663 |
3,923,917 |
|||
Prepaid expenses and sundry assets |
43,675 |
58,781 |
||||
$ |
1,946,034 |
$ |
4,268,200 |
|||
Non-current assets |
||||||
Right of use asset |
17 |
$ |
- |
$ |
98,562 |
|
$ |
- |
$ |
98,562 |
|||
Total assets |
$ |
1,946,034 |
$ |
4,366,762 |
||
Liabilities |
||||||
Current liabilities |
||||||
Loan payable |
5 |
$ |
2,387,439 |
$ |
4,369,006 |
|
Lease liability |
17 |
71,910 |
64,452 |
|||
Loan |
18 |
60,000 |
40,000 |
|||
Accounts payable and accrued liabilities |
2,731,158 |
2,364,759 |
||||
9% non convertible debentures payable |
6 |
- |
6,611,576 |
|||
$ |
5,250,507 |
$ |
13,449,793 |
|||
Non-current liabilities |
||||||
9% non convertible debentures payable |
6 |
4,694,885 |
- |
|||
Lease liability |
17 |
$ |
12,769 |
$ |
84,679 |
|
$ |
4,707,654 |
$ |
84,679 |
|||
Total liabilities |
$ |
9,958,161 |
$ |
13,534,472 |
||
Shareholders' deficiency |
||||||
Share capital |
7 |
$ |
24,530,555 |
$ |
24,530,555 |
|
Contributed surplus |
7,364,720 |
4,117,170 |
||||
Accumulated other comprehensive loss |
(47,383) |
(47,383) |
||||
Deficit |
(39,860,019) |
(37,768,052) |
||||
Total deficiency |
$ |
(8,012,127) |
$ |
(9,167,710) |
||
Total liabilities and deficiency |
$ |
1,946,034 |
$ |
4,366,762 |
||
Going concern (note 2a) and Commitments and contingencies (note 12) |
|||
The accompanying notes are an integral part of these consolidated financial statements |
|||
Approved by the Board |
|||
Director:Signed "Marc Lavine" |
Director:Signed "Kelly Ambrose" |
||
Marc Lavine |
Kelly Ambrose |
||
Advantex Marketing International Inc.
Consolidated Statements of (Loss) and Comprehensive (Loss)
For the years ended June 30, 2021 and 2020
(expressed in Canadian dollars)
Note |
2021 |
2020 |
||||
$ |
$ |
|||||
Revenues |
16 |
|||||
Marketing activities |
$ |
484,099 |
$ |
718,690 |
||
Interest income |
745,781 |
1,890,852 |
||||
1,229,880 |
$ |
2,609,542 |
||||
Direct expenses |
15/16 |
368,650 |
1,409,042 |
|||
861,230 |
1,200,500 |
|||||
Operating expenses |
||||||
Selling and marketing |
15/16 |
496,853 |
718,267 |
|||
General and administrative |
15/16 |
788,891 |
1,347,496 |
|||
(Loss) from operations before depreciation, amortization and interest |
(424,514) |
(865,263) |
||||
Stated interest expense - loan payable, and 9% non convertible debentures payable |
5/6 |
910,874 |
1,319,950 |
|||
Interest - Lease |
17 |
13,219 |
19,904 |
|||
Non-cash interest expense - accretion charges, |
6 |
644,798 |
598,733 |
|||
Depreciation of right of use asset |
17 |
45,490 |
65,336 |
|||
Depreciation of property, plant and equipment |
4 |
- |
15,210 |
|||
Impairment of right of use asset |
17 |
53,072 |
43,000 |
|||
Net (loss) and comprehensive (loss) |
$ |
(2,091,967) |
$ |
(2,927,396) |
||
(Loss) per share |
||||||
Basic and Diluted |
14 |
$ |
- |
$ |
- |
|
The accompanying notes are an integral part of these consolidated financial statements |
||||||
Advantex Marketing International Inc.
Consolidated Statements of Changes in Shareholders' Deficiency
For the years ended June 30, 2021 and June 30, 2020
(expressed in Canadian dollars)
Class A preference shares |
Common shares |
Contributed surplus |
Accumulated other comprehen - sive loss |
Deficit |
Total |
||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||
Balance - July 1, 2019 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(34,840,656) |
$ |
(6,267,102) |
|||||
Issuance of 9% non convertible debentures payable (note 6) |
- |
- |
26,788 |
- |
- |
26,788 |
|||||||||||
Net (loss) and comprehensive (loss) |
- |
- |
- |
- |
(2,927,396) |
(2,927,396) |
|||||||||||
Balance - June 30, 2020 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,117,170 |
$ |
(47,383) |
$ |
(37,768,052) |
$ |
(9,167,710) |
|||||
Balance - July 1, 2020 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,117,170 |
$ |
(47,383) |
$ |
(37,768,052) |
$ |
(9,167,710) |
|||||
Issuance of 9% non convertible debentures payable (note 6) |
- |
- |
3,247,550 |
- |
- |
3,247,550 |
|||||||||||
Net (loss) and comprehensive (loss) |
- |
- |
- |
- |
(2,091,967) |
(2,091,967) |
|||||||||||
Balance - June 30, 2021 |
$ |
3,815 |
$ |
24,526,740 |
$ |
7,364,720 |
$ |
(47,383) |
$ |
(39,860,019) |
$ |
(8,012,127) |
|||||
The accompanying notes are an integral part of these consolidated financial statements |
|||||||||||||||||
Advantex Marketing International Inc.
Consolidated Statements of Cash Flow
For the years ended June 30, 2021 and 2020
(expressed in Canadian dollars)
Note |
June 30, |
June 30, |
||||
$ |
$ |
|||||
Operational activities |
||||||
Net (loss) for the year |
$ |
(2,091,967) |
$ |
(2,927,396) |
||
Adjustments for: |
||||||
Accrued and unpaid 9% non convertible debentures payable interest |
6 |
554,888 |
512,761 |
|||
Interest - Lease |
17 |
13,219 |
19,904 |
|||
Depreciation of right of use asset |
17 |
45,490 |
65,336 |
|||
Depreciation of property, plant and equipment |
4 |
- |
15,210 |
|||
Impairment of right of use asset |
17 |
53,072 |
43,000 |
|||
Loss on disposal of property, plant & equipment |
- |
45 |
||||
Accretion charge - 9% non convertible debentures payable |
6 |
453,036 |
327,181 |
|||
Restructuring bonus - 9% non convertible debentures payable |
6 |
178,455 |
259,028 |
|||
Amortization of transaction costs - 9% non convertible debentures payable |
6 |
13,307 |
12,524 |
|||
(780,500) |
(1,672,407) |
|||||
Changes in items of working capital |
||||||
Accounts receivable |
25,811 |
(8,271) |
||||
Transaction credits |
2,197,254 |
5,550,082 |
||||
Prepaid expenses and sundry assets |
15,106 |
(6,549) |
||||
Accounts payable and accrued liabilities |
366,399 |
109,554 |
||||
2,604,570 |
5,644,816 |
|||||
Net cash generated - operating activities |
$ |
1,824,070 |
$ |
3,972,409 |
||
Financing activities |
||||||
Gross proceeds - 9% non convertible debentures payable |
6 |
$ |
250,000 |
$ |
200,000 |
|
Transaction costs - 9% non convertible debentures payable |
6 |
(118,827) |
(40,703) |
|||
Payment for lease |
(77,671) |
(77,671) |
||||
Proceeds from loan - Canada Emergency Business Account |
18 |
20,000 |
40,000 |
|||
(Decrease) of loan payable |
5 |
(1,981,567) |
(4,047,070) |
|||
Net cash (used) - financing activities |
$ |
(1,908,065) |
$ |
(3,925,444) |
||
Increase/(Decrease) in cash during the year |
$ |
(83,995) |
$ |
46,965 |
||
Cash at beginning of the year |
166,601 |
119,636 |
||||
Cash at end of the year |
$ |
82,606 |
$ |
166,601 |
||
Additional information |
||||||
Interest paid |
$ |
355,986 |
$ |
807,189 |
||
Cash |
$ |
82,606 |
$ |
166,601 |
||
The accompanying notes are an integral part of these consolidated financial statements |
||||||
SOURCE Advantex Marketing International Inc.
Mukesh Sabharwal, Vice-President and Chief Financial Officer, Tel: 416-560-5173, Email: [email protected]
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