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Delota Reports Third Quarter Revenue of $10.3 Million; $29.9 Million for the Nine Months Ended 2025 and Third Consecutive Quarter of Positive Adjusted EBITDA
Total revenue of $10.3 million for Q3 2025, reflecting YoY growth of 27% from the comparative quarter
37% gross profit margin for Q3 2025
Positive Adjusted EBITDA of $380,110 for Q3 2025
Total revenue of $29.9 million for the Nine Months Ended 2025, reflecting YoY growth of 25% from the comparative period
39% gross profit margin for the Nine Months Ended 2025
Positive Adjusted EBITDA of $827,258 for the Nine Months Ended 2025
Segmented revenue for the Nine Months Ended 2025:
Vape - B2C: $23.5 million, B2B: $3.7 million
Cannabis - B2C: $2.7 million
Continues to execute on defined expansion plan with aggressive M&A strategy; retail presence of 31 locations across Ontario and plans to expand in major cities across Canada
Increased registered customer base to over 257,000 accounts across online and brick-and-mortar platforms
Vaughan, Ontario--(Newsfile Corp. - January 2, 2025) - Delota Corp. (CSE: NIC) (FSE: S62) ("Delota" or the "Company"), a leading Canadian omni-channel retailer of nicotine vape and alternative tobacco products, is pleased to report it has filed its quarterly financial statements, management discussion and analysis, and associated certifications (collectively, the "Quarterly Filings") for the three and nine months ended October 31, 2024. The Quarterly Filings may be accessed under the Company's SEDAR+ profile at www.sedarplus.ca.
Cameron Wickham, CEO of Delota, commented, "Our third quarter financial results reflect consistent and stable growth having generated approximately $30 million in revenue for the nine months ended October 31, 2024 with three consecutive quarters of positive Adjusted EBITDA, totaling approximately $830,000 during this period. We remain on track of exceeding our run rate revenue target of $40 million for the full year. We are also looking to expedite our expansion plans in 2025 through strategic M&A opportunities that we have identified and are currently evaluating. Looking forward, we will continue to expand our footprint in Ontario, and strategically in major cities on the west coast. We will focus on growing our registered customer base and will look to unlock monetization opportunities from our platform. Our financial priorities include adding meaningful revenue to our topline through organic growth and M&A, as well as driving positive cash flow and margin expansion. Overall, I am very pleased with our third quarter results and look forward to providing further updates on our business."
Financial Highlights:
Total revenue of $10,285,372 for the three months ended October 31, 2024 ("Q3 2025") reflecting YoY growth of 27% as compared to the three months ended October 31, 2023.
37% gross profit margin for Q3 2025
Positive Adjusted EBITDA of $380,110 for Q3 2025
Total revenue of $29,927,038 for the nine months ended October 31, 2024 ("Nine Months Ended 2025"), reflecting YoY growth of 25% as compared to the nine months ended October 31, 2023.
39% gross profit margin for the Nine Months Ended 2025
Positive Adjusted EBITDA of $827,258 for the Nine Months Ended 2025
Segmented revenue for the Nine Months Ended 2025:
Vape - B2C: $23.5 million, B2B: $3.7 million
Cannabis - B2C: $2.7 million
Other Highlights:
On August 26, 2024, the Company opened an additional 180 Smoke Vape Store located at 499 Main Street South, Unit 60D, Shoppers World, Brampton, expanding 180 Smoke's brick-and-mortar presence to 31 locations across Ontario.
On July 25, 2024, the Company opened a 180 Smoke Vape Store located at 70 Joseph Street, Parry Sound.
On April 11, 2024, the Company provided a corporate update on its significant growth and progress.
On April 2, 2024, the Company changed its stock symbol from "LOTA" to "NIC" on the Canadian Securities Exchange. The new stock symbol is intended to better align with its mission of becoming the largest national specialty retailer of nicotine vape and alternative tobacco products.
On February 5, 2024, the Company completed debt settlements in the amount of $215,000 with certain creditors of the Company to preserve cash for working capital through the issuance of 1,535,715 units of the Company at a price of $0.14 per unit.
Select Financial Information
The following selected financial information as at and for the nine months ended October 31, 2024 and the year ended January 31, 2024 are derived from the Company's consolidated financial statements.
Nine Months Ended October 31, 2024
Year Ended January 31, 2024
$
$
Revenue
29,927,038
34,069,680
Net income (loss)
307,912
(1,992,576
)
Net earnings (loss) per share - basic and diluted
0.01
(0.07
)
Working capital (deficit)
(790,654
)
(771,198
)
Total assets
15,005,151
13,735,729
Total non-current liabilities
5,968,005
6,565,672
Total liabilities
14,073,814
13,351,331
Capital stock
7,832,560
7,592,481
Warrant reserve
99,398
99,398
Contributed surplus
505,953
507,005
Accumulated deficit
(7,506,574
)
(7,814,486
)
Shareholders' equity (deficiency)
931,337
384,398
Adjusted EBITDA
The Company's "Adjusted EBITDA" is a non-IFRS metric used by management that does not have any standardized meaning prescribed by IFRS and may not be fully comparable to similar measures presented by other companies. Management defines Adjusted EBITDA as the net income (loss) reported, before income taxes and other expense (income) items such as finance costs, finance income, gains and losses related to derivative liability valuations, and adjusted for share-based compensation, depreciation and amortization expenses, gains and losses related to the revaluations of its right-of-use assets and lease liabilities and foreign exchange differences.
The reconciliation of net income (loss) to Adjusted EBITDA is presented below.
Three Months Ended October 31, 2024
Three Months Ended October 31, 2023
Nine Months Ended October 31, 2024
Nine Months Ended October 31, 2023
$
$
$
$
Net income (loss) for the period - as reported
474,928
(545,828
)
307,912
(1,033,001
)
Depreciation and amortization
129,806
145,343
393,698
437,443
Interest and accretion expenses
203,876
31,214
611,721
93,302
Stock-based compensation
2,460
-
10,277
218,981
Fair value adjustment of derivative liabilities
(417,743
)
-
(464,882
)
-
Deferred tax recovery
(15,945
)
(15,945
)
(47,833
)
(47,833
)
Lease adjustments
(2,592
)
476,435
(5,184
)
235,933
Foreign exchange loss
5,320
7,058
21,549
20,387
Adjusted EBITDA
380,110
98,277
827,258
(74,788
)
About Delota Corp.
Delota is the largest omni-channel specialty vape retailer in Ontario with a mission of becoming one of the largest national specialty retailers of nicotine vape and alternative tobacco products. The Company's growth strategy includes aggressively growing its flagship brand, 180 Smoke Vape Store, by expanding its retail footprint organically in Ontario and select provinces across Canada, strengthening its national e-commerce platform, and through strategic M&A to accelerate growth and market consolidation. The Company is committed to expanding its nicotine product assortment, enhancing customer experience, and growing its registered customer base, which now exceeds 257,000 accounts.
Investors interested in learning more about Delota can visit www.delota.com.
For further information, please contact:
Delota Corp.
Julia Becker Capital Markets T: (604) 785-0850 E: ir@delota.com
Cameron Wickham Executive Vice Chair and CEO T: (905) 330-1602 E: info@delota.com
Cautionary Statements
This press release contains "forward-looking statements or information". Forward-looking statements can be identified by words such as: anticipate, intend, plan, goal, seek, believe, project, estimate, expect, strategy, future, likely, may, should, will and similar references to future periods. Examples of forward-looking statements in this press release include statements made regarding information about future plans, expectations and objectives of the Company overall.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The Company may not actually achieve its plans, projections, or expectations. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the adequacy of our cash flow and earnings, the availability of future financing and/or credit, developments and changes in laws and regulations, consumer sentiment towards the Company's products, failure of counterparties to perform their contractual obligations, government regulations, competition, loss of key employees and consultants, and general economic, market or business conditions, the impact of technology and social changes on the products and industry, as well as those risk factors discussed or referred to in disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
