Advantex Announces Fiscal 2022 Second Quarter Results

News provided by

Advantex Marketing International Inc.

Feb 28, 2022, 16:05 ET

TORONTO, Feb. 28, 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 three and six months ended December 31, 2021.

Highlights of financial results for three and six months ended December 31, 2021 compared to the corresponding periods in the previous year are as follows:

Three months ended December 31

Six months ended December 31

December 2021

December 2020

Inc./(Dec)

December 2021

December 2020

Inc./(Dec)

$

$

$

$

$

$












Revenues

$

367 196

$

386 926

$

(19 730)

$

740 493

$

698 698

$

41 795

Direct expenses











Costs of loyalty rewards, and marketing  in connection with Advantex's merchant based loyalty program

$

74 945

$

122 133

$

(47 188)

$

213 116

$

183 850

$

29 266

Expense for provision against delinquent accounts, credit/collection expense

$

4 457

$

44 015

$

(39 558)

$

5 923

$

72 742

$

(66 819)

Gross profit

$

287 794

$

220 778

$

67 016

$

521 454

$

442 106

$

79 348

Selling and General & Administrative expenses

$

451 144

$

330 348

$

120 796

$

800 650

$

640 210

$

160 440

(Loss) from operations before depreciation, amortization and interest

$

(163 350)

$

(109 570)

$

53 780

$

(279 196)

$

(198 104)

$

81 092

Stated interest expense - loan payable, and 9% non convertible debentures payable

$

323 441

$

225 124

$

98 317

$

567 648

$

471 965

$

95 683

(Loss) from operations before depreciation, amortization, non cash interest and non cash items

$

(486 791)

$

(334 694)

$

152 097

$

(846 844)

$

(670 069)

$

176 775

Interest - Lease

$

1 692

$

3 532

$

(1 840)

$

3 864

$

7 492

$

(3 628)

Interest expense - Accretion charges,  restructuring bonus and amortization of transaction costs related to 9% non convertible debentures payable

$

194 302

$

159 539

$

34 763

$

388 485

$

317 652

$

70 833

Depreciation of right of use asset

$

-

$

11 373

$

(11 373)

$

-

$

22 746

$

(22 746)

Net (loss) and comprehensive (loss)

$

(682 785)

$

(509 138)

$

173 647

$

(1 239 193)

$

(1 017 959)

$

221 234






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 three and six months ended December 31, 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 (unaudited)
(expressed in Canadian dollars)

Note

December 31,
2021

June 30,
2021




$

$

Assets






Current assets






Cash 

$

148 148

$

82 606

Accounts receivable


53 209

93 090

Transaction credits 

5

4 869 486

1 726 663

Prepaid expenses and sundry assets


44 258

43 675



$

5 115 101

$

1 946 034








Total assets

$

5 115 101

$

1 946 034








Liabilities






Current liabilities






Loan payable 

6

$

5 250 429

$

2 387 439

Lease liability

15

49 706

71 910

Loan

16

60 000

60 000

Accounts payable and accrued liabilities


2 627 856

2 731 158

9% non convertible debentures payable

7

5 975 705

-



$

13 963 696

$

5 250 507








Non-current liabilities






9% non convertible debentures payable

7

$

-

$

4 694 885

Lease liability

15

-

12 769



$

-

$

4 707 654








Total liabilities

$

13 963 696

$

9 958 161








Shareholders' deficiency






Share capital 

8

$

24 530 555

$

24 530 555

Contributed surplus


7 767 445

7 364 720

Accumulated other comprehensive loss


(47 383)

(47 383)

Deficit


(41 099 212)

(39 860 019)

Total deficiency

$

(8 848 595)

$

(8 012 127)








Total liabilities and deficiency

$

5 115 101

$

1 946 034

Going concern (note 2) and Commitments and contingencies (note 11)

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 (unaudited)
For the three and six months ended December 31, 2021 and 2020
(expressed in Canadian dollars)

3 months ended December 31

6 months ended December 31

Note

2021

2020

2021

2020




$

$

$

$














Revenues

14











Marketing activities

$

91 599

$

194 122

$

289 067

$

307 080

Interest income 


275 597

192 804

451 426

391 618



$

367 196

$

386 926

$

740 493

$

698 698

Direct expenses

13/14

79 402

166 148

219 039

256 592




287 794

220 778

521 454

442 106

Operating expenses












Selling and marketing

13/14

153 176

109 795

301 074

256 960

General and administrative

13/14

297 968

220 553

499 576

383 250

(Loss) from operations before depreciation, amortization and interest


(163 350)

(109 570)

(279 196)

(198 104)














Stated interest expense - loan payable, and 9% non convertible debentures payable

6/7

323 441

225 124

567 648

471 965

Interest - Lease

15

1 692

3 532

3 864

7 492

Non-cash interest expense - accretion charges, restructuring bonus and amortization of transaction costs related to 9% non convertible debentures payable

7

194 302

159 539

388 485

317 652

Depreciation of right of use asset

15

-

11 373

-

22 746

Net (loss) and comprehensive (loss)

$

(682 785)

$

(509 138)

$

(1 239 193)

$

(1 017 959)














(Loss) per share












Basic and Diluted

12

$

(0.00)

$

(0.00)

$

(0.00)

$

(0.00)














The accompanying notes are an integral part of these consolidated financial statements

Advantex Marketing International Inc.
Consolidated Statements of Changes in Shareholders' Deficiency (unaudited)
For the three and six months ended December 31, 2021 and 2020
(expressed in Canadian dollars)

Class A
preference
shares

Common
shares

Contributed
surplus

Accumulated
other
comprehen -
sive loss

Deficit

Total

$

$

$

$

$

$












Balance - July 1, 2020

$               3 815

$     24 526 740

$       4 117 170

$           (47 383)

$   (37 768 052)

$     (9 167 710)

Net (loss) and comprehensive (loss)

-

-

-

-

(1 017 959)

(1 017 959)

Balance - December 31, 2020

$               3 815

$     24 526 740

$       4 117 170

$           (47 383)

$   (38 786 011)

$   (10 185 669)
























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 7)

-

-

402 725

-

-

402 725

Net (loss) and comprehensive (loss)

-

-

-

-

(1 239 193)

(1 239 193)

Balance - December 31, 2021

$               3 815

$     24 526 740

$       7 767 445

$           (47 383)

$   (41 099 212)

$     (8 848 595)












The accompanying notes are an integral part of these consolidated financial statements

Advantex Marketing International Inc.
Consolidated Statements of Cash Flow (unaudited)
For the three and six months ended December 31, 2021 and 2020
(expressed in Canadian dollars)

Note

2021

2020




$

$

Operational activities






Net (loss) for the period

$

(1 239 193)

$

(1 017 959)

Adjustments for:






Accrued and unpaid 9% non convertible debentures payable interest 

7

372 561

260 571

Interest - Lease

15

3 864

7 492

Depreciation of right of use asset

15

-

22 746

Accretion charge - 9% non convertible debentures payable

7

346 271

174 404

Restructuring bonus - 9% non convertible debentures payable

7

36 254

133 855

Amortization of transaction costs - 9% non convertible debentures payable

7

5 960

9 393




(474 283)

(409 499)

Changes in items of working capital






Accounts receivable


39 881

(109 992)

Transaction credits 


(3 142 823)

1 673 128

Prepaid expenses and sundry assets


(583)

1 398

Accounts payable and accrued liabilities


(103 302)

261 902




(3 206 827)

1 826 436

Net cash (used)/generated - operating activities

$

(3 681 110)

$

1 416 937








Financing activities






Gross proceeds - 9% non convertible debentures payable

7

$

1 000 000

$

-

Transaction costs - 9%  non convertible debentures payable

7

(77 501)

-

Proceeds from loan - Canada Emergency Business Account 

-

20 000

Payment for lease


(38 837)

(38 836)

Increase/(Decrease) of loan payable

6

2 862 990

(1 525 117)

Net cash generated/(used) - financing activities

$

3 746 652

$

(1 543 953)








Increase/(Decrease) in cash during the period

$

65 542

$

(127 016)

Cash at beginning of the period


82 606

166 601

Cash at end of the period

$

148 148

$

39 585








Additional information






Interest paid 

$

195 087

$

211 394








Cash 

$

148 148

$

39 585








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]

Organization Profile

Advantex Marketing International Inc.