ARLINGTON, Va., May 30, 2022 (GLOBE NEWSWIRE) -- Edge Total Intelligence Inc. (TSXV: CTRL/ FSE:Q5i) (“edgeTI”, “we”, “our” or the “Company”), a leader in real-time digital operations, announces operating and consolidated results for the first quarter 2022. Financial information is expressed in United States (US) dollars unless otherwise indicated. The Company’s related financials and management discussion and analysis for the first quarter, 2022 are posted on its profile on SEDAR (www.sedar.com).
Financial Highlights
Total revenue increased to $956,521 in Q1 2022 from $890,213 in Q4 2021, an increase of 7.4% over the prior quarter due to increases in subscription revenues
Monthly recurring revenue (MRR) grew to reach $307,596 in Q1 2022 from $305,653 in Q4 2021.
Gross margin returned to 75% versus 58% in Q4 2021
edgeTI commenced trading on TSX-V under the symbol CTRL and began cross-listing on the Frankfurt Stock Exchange as FSE:Q5i in March
Selected Financial Information
Q1 2022
Q1 2021
Change
Q1'2022 to Q1'2021 Comparison
Revenue
$
956,521
$
1,223,590
$
(267,069
)
Cost of revenue
235,822
345,665
(109,843
)
Gross profit
$
722,699
877,925
(157,226
)
Gross margin %
75
%
72
%
3
%
Selling and marketing expenses
391,888
402,880
(10,992
)
Administrative expenses
731,462
436,677
294,785
Research and development expenses
419,442
283,297
136,145
Other (income) expenses
107,192
(429,676
)
536,868
Operating Expense
$
1,649,984
$
693,178
956,806
Operating income (loss)
(928,285
)
184,747
(1,114,032
)
Interest
233,877
269,777
(35,900
)
Change in fair value of warrant liability
164,092
-
164,092
Foreign exchange loss
39,626
-
39,626
Loss before income taxes
$
(1,366,880
)
$
(85,030
)
$
(1,281,850
)
Income tax expense
-
-
-
Net loss
$
(1,366,880
)
$
(85,030
)
$
(1,281,850
)
Assets, Cash Flows, & Non IFRS Measures
Assets /Liabilities
Q1 2022
Q1 2021
Change
Total assets
$
8,077,895
$
9,985,779
$
(1,907,884
)
Total non-current liabilities
7,415,953
$
7,498,466
$
(82,513
)
Cash Flows
Q1 2022
Q1 2021
Change
Cash flow (used in) from operating activities
$
(1,046,183
)
$
468,326
$
(1,514,509
)
Cash flows (used in) from financing activities
(753,594
)
942,060
(1,695,654
)
Cash used in investing activities
(138,751
)
(243,610
)
104,859
Non- IFRS Measures
Q1 2022
Q4 2021
Change
Monthly Recurring Revenue (MRR)
$
307,596
$
305,653
$
1,943
Q1 2022
Q4 2021
Change
Adjusted EBITDA
$
(523,226
)
$
558,169
$
(1,081,395
)
Operational Highlights
The Company identified several new revenue growth opportunities by attending the AFCEA West in-person trade conference which focused on Sea Services operations of U.S Navy, U.S. Marine Corps, and U.S. Coast Guard
The Company continues to make progress on strategic partnerships, which will aid future revenue growth performance
Development efforts focused on further “low-code” features to accelerate time to value and expand automation capabilities which are projected to increase business agility and returns on investments for its customers
Outlook
Commenting on the Company's outlook, Jim Barrett, Chief Executive Officer, said:
"Ongoing global challenges create a dynamic business environment that is disrupting established global supply lines and processes with broad reaching consequences according to industry leaders of prospects and customers as well as industry analysts. We intend to make our solutions even more relevant to these evolving challenges as our software helps leaders see issues and opportunities in real-time that uncover new opportunities while accelerating others. As leaders search for insights and early warnings with the ability to empower action, these new requirements are driving new sales and better yet, positive customer results. As such, we remain focused on our growth strategy by: 1) adding strategic partnerships to unite expertise with our capabilities; 2) increasing awareness across our industry and investors through market analysts and marketing activities; 3) continuing to make our product easy to use in order to promote adoption and accelerate achievement of customer value; and 4) being mindful of customer challenges and their needs to solve them with our software.”
Events subsequent to the First Quarter
April 4th edgeTI demoed at Smart Cities Connect 2022 Spring Conference
April 11th edgeTI and SD3IT teamed up to present at the TechNet Indo-Pacific Spring 2022
As previously disclosed, on April 25th edgeTI entered into a credit and convertible note agreement with Lotus Domain III, L.P. ("Lotus"), a related party of the Company, under which $700,000 plus accrued interest of $74,602.74 was converted to 1,577,815 subordinate voting shares of the Company (the "Conversion")
About edgeTI
edgeTI helps customers achieve the impossible with its real-time digital operations software, edgeCore™. Global enterprises, service providers, and governments are more profitable when insight and action are united to deliver fluid experiences via the platform's low-code development capability. With edgeTI, customers improve their margins and agility by rapidly transforming siloed systems and data across evolving situations in business, technology, and cross-domain operations. Traded on: TSXV: CTRL FSE: Q5i
Nick Brigman Phone: 888-771-3343 Email: ir@edgeti.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information and Statements
Certain statements in this news release are forward-looking statements or information for the purposes of applicable Canadian and US securities law, including statements regarding customer impacts of product development, the execution of the Company's growth and marketing strategies, the Company's expectations for its 2022 MRR and ARR, the Company's ability to enter into strategic partnerships and continue to develop easy to use products, and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions.
Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include, the continued availability of capital and financing, the impact of Covid-19 or other viruses and diseases on the Company's ability to operate, competition and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
