Verification Fee Revenue increased by 65% in the 15-month period. Operating Expenses increased by 0.31% over the same period. Federal Government disclosed in its 2024 budge, Canada's inaugural open banking framework to be introduced in 2024.
Vancouver, British Columbia--(Newsfile Corp. - July 29, 2024) - Inverite Insights Inc. (CSE: INVR) (OTC Pink: INVRF) (FSE: 2V0) ("Inverite") , a leading AI-driven software provider utilizing real-time financial data to empower businesses to transact more effectively with consumers announces its 15-month audited financial results for the period ended March 31, 2024 and the year ended December 31, 2022. In December 2023, the company changed its fiscal year-end to March 31, 2024. The Company's focus on growing revenue while minimizing costs continues towards the path of financial sustainability. With the Federal Government's introduction in the 2024 budget of its intention to introduce legislation to establish Canada's inaugural open banking framework later in 2024, Inverite is well positioned to capitalize on this enormous opportunity with the financial institutions offering credit in Canada.
Key financial highlights for the fifteen-month period ended March 31, 2024, include:
During the fifteen-month period ending March 31, 2024, Inverite saw continued revenue growth with its opening banking platform, along with cost efficiencies in both operating expenses and financing costs.
The Company increased total revenues by 42% to $1,554,062 (2022 - $1,091,255).
The Company increased verification fee revenue by 65% to $1,204,267 (2022 - $728,503). Inverite continues to see its transaction volumes increase which contributed to the increase in verification fee revenues over the comparative period in 2022.
The Company generated marketing service fees of $105,931 (2022 - $53,630) related to Accumulate.ai business assets acquired in October 2022.
The Company generated interest revenue from its loan portfolio of $153,236 (2022 - $201,630). The decrease is primarily due to lower number of loans with no new Fast-Track loans granted in the period. The Company no longer offers Fast-Track loans but continues to manage its existing loan portfolio.
The Company generated subscription fees of $89,571 (2022 - $94,300) from MyMarble subscriptions and Boost loans. The decrease of $4,729 is primarily due to lower subscriptions of MyMarble and Boost Loans. The Company has permanently stopped offering MyMarble subscriptions and Boost loans.
The Company saw operating expenses increase by 0.31% or $15,470 to $5,120,493 (2022 - $5,105,023) as the Company continues improve efficiencies and streamlining operations.
The Company saw administration costs decrease by 62% or $401,879 to $250,767 (2022 - $652,646) due to ongoing cost management measures.
Bad debts expense and allowance for loan impairment of $69,895 (2022 - $289,594) decreased by $219,699 or 76% due to lower loan loss provisions associated with a lower loan portfolio value for its inactive Fast-Track loan program.
The Company saw consulting fees increase by 7% or $49,054 to $798,510 (2022 - $749,456) related to the use of outside consultants.
The Company saw salaries and benefits costs decrease by 8% or $165,106 to $1,789,232 (2022 - $1,954,338) due to reduction of employees.
Software and platform technology services of $773,405 (2022 - $401,302) increased by $372,103 or 93% related to higher technology and software costs associated with providing the Company's products and services and higher Inverite Verification transaction volumes.
Investor relations expense of $154,049 (2022 - $139,899) increased by $14,150 or 10% relating to investor relations activities.
The Company saw interest expenses decrease by 43% or $284,182 to $369,453 (2022 - $653,635), due primary to bonds, convertible debentures and loans which were settled through debt settlement agreements that the Company entered effective April 6, 2023, in relation to the TPF bonds outstanding, resulting in the cessation of bond interest obligations since that time.
The Company recorded a net loss of $1,004,920 (2022 - $5,292,281). The reduced net loss resulted primarily from the gain on settlement of bonds and lower overall operating expenses and lower finance costs between the periods.
Key financial highlights for the three-month period ended March 31, 2024, include:
Inverite's decreased total revenue by 10% to $293,663 (March 31, 2023 - $324,910), over the comparable period and was mainly due to lower revenue generated from the Company's other revenue generating products.
The Company generated verification fee revenue of $267,931 (March 31, 2023 - $229,032) representing an increase of 17% and was mainly due to increased transaction volumes on the platform.
The Company generated interest revenue from its loan portfolio of $18,647 (March 31, 2023 - $43,175) The decrease of $24,528 is primarily due to a lower number of consumer loans during the period. The Company no longer offers new Fast-Track loans but continues to manage its existing loan portfolio.
Operating Expenses for the three-month period ended March 31, 2024, decreased by $19,897 or 2% to $1,101,948 (March 31, 2023 - $1,345,410), due to continued focus on efficiencies and cost reduction.
The Company provides the following detailed information on variances and components of Operating Expenses for the period:
Administration costs of $53,227 (March 31, 2023 - $61,348) decreased by $8,121 or 13% due to streamlining costs and improved efficiencies implemented by management. Administration costs are largely comprised of office expenses, loan issuance costs, professional fees, telephone and utilities.
Bad debts and allowances for loan impairment of reversal of $11,434 (March 31, 2023 - $26,487) decreased by $15,053 or 57% due to lower loan loss provisions associated with a lower loan portfolio value for its inactive Fast-Track loan program.
Consulting fees of $142,091 (March 31, 2023 - $26,476) increased by $13,092 or 8% due to reduced use of consultants.
Investor relations fees of $51,018 (March 31, 2023 - $139,899) increased by $24,542 or 93% relating to investor relations activities.
Salaries and benefits of $327,650 (March 31, 2023 - $430,678) decreased by $103,028 or 24% as the Company had fewer employees.
Software and platform technology services of $126,557 (March 31, 2023 - $206,902) a decrease of $80,345 or 39% due to the Company suspending other revenue generating products.
The Company incurred interest expense of $68,048 (March 31, 2023 - $157,114) a decrease of $88,066 or 56% is due primarily related to the TPF bonds interest expense decreased because of the shares for debt settlement of the outstanding bonds which eliminated the bond interest after April 6, 2023.
The Company recorded net loss of $803,008 (March 31, 2023 - $956,205). The decrease in the net loss was primarily due to lower overall operating expenses and finance costs compared to 2023.
Karim Nanji, CEO of Inverite, adds, "We are pleased to report a significant increase in our verification fee revenue by 65% for the fifteen-month period ending March 31, 2024. This growth reflects the robust demand for our AI-driven software solutions and the value they bring to our clients. Despite a modest rise in operating expenses, we have successfully streamlined our operations, achieved cost efficiencies and reduced our net loss substantially. In a challenging macroeconomic environment for micro and small-cap public companies, our ability to improve our financial results demonstrates the resilience and adaptability of our business model. With the Federal Government's commitment to introducing Canada's inaugural open banking framework, Inverite is strategically positioned to leverage this transformative opportunity, driving further growth and innovation in the financial technology sector. Our ongoing focus on financial sustainability and operational excellence underscores our commitment to delivering long-term value to our shareholders and customers."
A comprehensive discussion of Inverite's financial position and results of operations is provided in the condensed consolidated interim financial statements and management's discussion and analysis for the fifteen-month period ended March 31, 2024, are filed on SEDAR+ at www.sedarplus.ca.
About Inverite Insights Inc.
Inverite Insights Inc. (CSE: INVR) (OTC Pink: INVRF) (FSE: 2V0) ("Inverite") is a Vancouver-based, AI-driven software provider specializing in real-time financial data. With a vast database of over seven billion financial data points from more than four million unique Canadian consumers transactions, Inverite empowers businesses to transact more effectively with consumers through innovative solutions for data enrichment, identity, risk management and compliance.
For further information about Inverite, please visit: inverite.com.
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Forward-Looking Statements
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