Advantex Announces Fiscal 2022 Results

TORONTO, Oct. 20, 2022 /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, 2022.

Highlights of financial results for twelve months ended June 30, 2022 compared to twelve months ended June 30, 2021 are as follows:

	Fiscal 2022			Fiscal 2021
Revenues	$	1,739,697		$	1,229,880
Direct expenses
Costs of loyalty rewards, and marketing  in connection with Advantex's merchant based loyalty program	$	416,483		$	293,167
Expense for provision against delinquent accounts, credit/collection expense	$	325,326		$	75,483
Gross profit	$	997,888		$	861,230
Selling and General & administrative expenses	$	1,802,346		$	1,833,766
Federal Covid-19 wage and rent subsidies	$	(152,032)		$	(548,022)
(Loss) from operations before depreciation, amortization and interest	$	(652,426)		$	(424,514)
Stated interest expense - loan payable, and 9% non convertible debentures payable	$	1,250,694		$	910,874
(Loss) from operations before depreciation, amortization, non cash interest and non cash items	$	(1,903,120)		$	(1,335,388)
Interest - Lease	$	5,760		$	13,219
Non-cash interest expense - accretion charges, restructuring bonus and amortization of transaction costs related to 9% non-convertible debentures payable	$	798,958		$	644,798
Depreciation of right of use asset	$	-		$	45,490
Impairment of right of use asset	$	-		$	53,072
Net (loss) and comprehensive (loss)	$	(2,707,838)		$	(2,091,967)
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, 2022.

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, 2022		June 30, 2021
		$		$
Assets
Current assets
Cash		$                   93,185		$                   82,606
Accounts receivable	10 a	83,320		93,090
Transaction credits	10 a	3,312,268		1,726,663
Prepaid expenses and sundry assets		41,589		43,675
		$             3,530,362		$             1,946,034
Total assets		$             3,530,362		$             1,946,034
Liabilities
Current liabilities
Loan payable	5	$             4,019,685		$             2,387,439
Lease liability	17	12,768		71,910
Loan	18	60,000		60,000
Accounts payable and accrued liabilities		2,825,914		2,731,158
		$             6,918,367		$             5,250,507
Non-current liabilities
9% non convertible debentures payable	6	$             6,953,878		$             4,694,885
Lease liability	17	-		12,769
		$             6,953,878		$             4,707,654
Total liabilities		$           13,872,245		$             9,958,161
Shareholders' deficiency
Share capital	7	$           24,530,555		$           24,530,555
Contributed surplus		7,742,802		7,364,720
Accumulated other comprehensive loss		(47,383)		(47,383)
Deficit		(42,567,857)		(39,860,019)
Total deficiency		$         (10,341,883)		$           (8,012,127)
Total liabilities and deficiency		$             3,530,362		$             1,946,034
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, 2022 and 2021
(expressed in Canadian dollars)

	Note	2022		2021
		$		$
Revenues	16
Marketing activities		$                571,699		$                484,099
Interest income		1,167,998		745,781
		1,739,697		1,229,880
Direct expenses	15/16	741,809		368,650
		997,888		861,230
Operating expenses
Selling and marketing	15/16	569,827		496,853
General and administrative	15/16	1,080,487		788,891
(Loss) from operations before depreciation, amortization and interest		(652,426)		(424,514)
Stated interest expense - loan payable, and 9% non convertible debentures payable	5/6	1,250,694		910,874
Interest - Lease	17	5,760		13,219
Non-cash interest expense - accretion charges, restructuring bonus and amortization of transaction costs related to 9% non-convertible debentures payable	6	798,958		644,798
Depreciation of right of use asset	17	-		45,490
Impairment of right of use asset	17	-		53,072
Net (loss) and comprehensive (loss)		$           (2,707,838)		$           (2,091,967)
(Loss) per share
Basic and Diluted	14	$                    (0.01)		$                    (0.07)
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, 2022 and June 30, 2021
(expressed in Canadian dollars)

	Class A preference shares		Common shares		Contributed surplus		Accumulated other comprehensive loss		Deficit		Total
	$		$		$		$		$		$
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)
Balance - July 1, 2021	$              3,815		$    24,526,740		$       7,364,720		$          (47,383)		$   (39,860,019)		$     (8,012,127)
Issuance of 9% non convertible debentures payable (note 6)	-		-		378,082		-		-		378,082
Net (loss) and comprehensive (loss)	-		-		-		-		(2,707,838)		(2,707,838)
Balance - June 30, 2022	$              3,815		$    24,526,740		$       7,742,802		$          (47,383)		$   (42,567,857)		$   (10,341,883)
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, 2022 and 2021
(expressed in Canadian dollars)

	Note	June 30, 2022		June 30, 2021
		$		$
Operational activities
Net (loss) for the year		$            (2,707,838)		$            (2,091,967)
Adjustments for:
Accrued and unpaid 9% non convertible debentures payable interest	6	773,733		554,888
Interest - Lease	17	5,760		13,219
Depreciation of right of use asset	17	-		45,490
Impairment of right of use asset	17	-		53,072
Accretion charge - 9% non convertible debentures payable	6	710,452		453,036
Restructuring bonus - 9% non convertible debentures payable	6	73,063		178,455
Amortization of transaction costs - 9% non convertible debentures payable	6	15,443		13,307
		(1,129,387)		(780,500)
Changes in items of working capital
Accounts receivable		9,770		25,811
Transaction credits		(1,585,605)		2,197,254
Prepaid expenses and sundry assets		2,086		15,106
Accounts payable and accrued liabilities		94,756		366,399
		(1,478,993)		2,604,570
Net cash (used)/generated - operating activities		$           (2,608,380)		$             1,824,070
Financing activities
Gross proceeds - 9% non convertibles debentures payable	6	$             1,150,000		$                250,000
Transaction costs - 9%  non convertible debentures payable	6	(85,616)		(118,827)
Loan - Canada Emergency Bank Account		-		20,000
Payment for lease		(77,671)		(77,671)
Proceeds of loan payable	5	8,868,861		2,389,750
(Repayment) of loan payable		(7,236,615)		(4,371,317)
Net cash generated/(used) - financing activities		$              2,618,959		$            (1,908,065)
Increase/(Decrease) in cash during the year		$                   10,579		$                 (83,995)
Cash at beginning of the year		82,606		166,601
Cash at end of the year		$                   93,185		$                   82,606
Additional information
Interest paid		$                 476,961		$                 355,986
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: [phone], Email: [email protected]