Record Performance as Full Year Revenue Surpasses $16 Million
TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Xtract One Technologies Inc. (TSX: XTRA) (OTCQX: XTRAF) (FRA: 0PL) (“Xtract One” or the “Company”) a leading technology-driven threat detection and security solution that prioritizes the patron access experience by leveraging artificial intelligence (AI), today announced its annual results for the year ended July 31, 2024. All information is in Canadian dollars unless otherwise indicated.
“What a year it’s been! With record results across the board, we continue to make progress towards profitability through operational execution and higher top line growth,” stated Peter Evans, Chief Executive Officer of Xtract One. “Revenue for the year was $16.4 million – quadruple that of last year – while our combined backlog rose to $26.8 million, reflecting strong demand across all vertical markets. We’re positioning the Company for continued expansion going forward as we are seeing growing interest from all types of customers – stadiums and arenas to schools, business centers, and factories – putting us on track for even greater performance in fiscal 2025.”
“To add further momentum to this success, the recent introduction of Xtract One Gateway will significantly expand our addressable market, and win rate in those markets, by improving the Company’s competitive positioning. Xtract One Gateway will allow high-traffic facilities like schools, convention centers, and commercial properties to quickly screen patrons who may have laptops, tablets or other large metallic objects while still accurately detecting weapons. As the only product on the market with these capabilities, it’s clearly transformational for us and the industry.”
Fiscal 2024 Annual Highlights
Record revenue of $16.4 million for the year ended July 31, 2024 versus $4.1 million in the prior fiscal year
Gross profit margin of 63% for the year ended July 31, 2024 versus 60% in the prior fiscal year
Total contract value of new bookings1 was $29.8 million for the year ended July 31, 2024 as compared to $15.0 million during the prior fiscal year
Platform contractual backlog was $13.8 million at the end of fiscal 2024 as compared to $4.1 million at the end of fiscal 2023. This excludes an additional $13.0 million of agreements pending installation1 at the end of fiscal 2024 versus $10.4 million at the end of fiscal 2023
Loss and comprehensive loss was $11.1 million for the year ended July 31, 2024 as compared to $16.3 million for the prior year
Subsequent to July 31, 2024, the Company launched Xtract One Gateway, with advanced bi-directional configurable screening and proprietary sensors, for precise weapons detection at locations where users carry a medium volume of personal items such as laptops
Fourth Quarter Highlights
Record quarterly revenue of $5.6 million for the three months ended July 31, 2024 versus $1.8 million in the prior year period
Gross profit margin of 65% for the fourth quarter versus 70% in the prior year period
Total contract value of new bookings1 was $5.6 million for the three months ended July 31, 2024 as compared to $5.2 million for the prior year period
Loss and comprehensive loss was $2.4 million for the three months ended July 31, 2024 as compared to $3.3 million for the same period in fiscal 2023
This press release should be read in conjunction with the Company’s Annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s Management’s Discussion and Analysis for the years ended July 31, 2024 and 2023, which can be found under the Company’s profile on SEDAR+ at www.sedarplus.ca.
Conference Call Details
Xtract One will host a conference call to discuss its results on October 25, 2024 at 10:00 am ET. Peter Evans, CEO and Director, and Karen Hersh, CFO and Corporate Secretary, will provide an overview of the financial results along with management’s outlook for the business, followed by a question-and-answer period.
The webcast and presentation will be accessible on the Company’s website. The webcast can be accessed here and the telephone number for the conference call is 844-481-3016 (412-317-1881 for international callers).
About Xtract One Technologies
Xtract One Technologies is a leading technology-driven provider of threat detection and security solutions leveraging AI to deliver seamless and secure experiences. The Company makes unobtrusive weapons and threat detection systems that enable facility operators to prioritize and deliver improved “Walk-right-In” experiences while providing unprecedented safety. Xtract One's innovative portfolio of AI-powered Gateway solutions excels at allowing facilities to discreetly screen and identify weapons and other threats at points of entry and exit without disrupting the flow of traffic. With solutions built to serve the unique market needs for schools, hospitals, arenas, stadiums, manufacturing, distribution, and other customers, Xtract One is recognized as a market leader delivering the highest security in combination with the best individual experience. For more information, visit www.xtractone.com or connect on Facebook, X, and LinkedIn.
1 Supplementary Financial Measures The Company utilizes specific supplementary financial measures in this earnings release to allow for a better evaluation of the operating performance of the Company’s business and facilitates meaningful comparison of results in the current period with those in prior periods and future periods. Supplementary financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to measures presented by other companies. Supplementary financial measures presented in this earnings release include ‘Agreements pending installation’ and ‘Total contract value of new bookings.’ Agreements pending installation reflects total value of signed contracts awarded to the Company that has not been installed at the customer site. ‘Total contract value of new bookings’ is comprised of all new contracts signed and awarded to the Company, regardless of the performance obligations outstanding as of the end of the reporting period. Total contract value is the aggregate value of sales commitments from customers as at the end of the reporting period without consideration of the Company’s completion of the associated performance obligations outlined in each contract.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipates”, “expects”, “believes”, and similar expressions or the negative of these words or other comparable terminology. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include but are not limited to the risks detailed from time to time in the continuous disclosure filings made by the Company with securities regulations. 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. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law.
No securities exchange or commission has reviewed or accepts responsibility for the adequacy or accuracy of this release.
Consolidated Statements of Loss and Comprehensive Loss for the Years Ended July 31, 2024 and 2023
The following table is extracted from the Company’s consolidated financial statements and presented in Canadian dollars to demonstrate the Statements of Loss and Comprehensive loss for the years ended July 31, 2024 and 2023:
2024
2023
Revenue
Platform revenue
$
15,969,996
$
3,596,999
Xtract revenue
388,011
514,245
Total revenue
$
16,358,007
$
4,111,244
Cost of revenue
Platform cost of revenue
$
5,858,611
$
1,383,623
Xtract cost of revenue
241,377
242,724
Total cost of revenue
$
6,099,988
$
1,626,347
Gross profit
$
10,258,019
$
2,484,897
Operating expenses
Selling and marketing
$
5,593,432
$
4,566,130
General and administration
7,479,609
6,813,847
Research and development
8,265,043
7,078,280
Loss on inventory write-down
175,042
346,374
Loss on retirement of assets
95,066
181,107
Total operating expenses
$
21,608,192
$
18,985,738
Loss from operations
(11,350,173
)
(16,500,841
)
Other income (loss)
Unrealized gain on investments
-
58,333
Realized loss on investment
-
(55,082
)
Interest and other income
285,318
161,117
Loss and comprehensive loss for the year
$
(11,064,855
)
$
(16,336,473
)
Weighted average number of shares
203,820,258
176,664,492
Basic and diluted loss per share
$
(0.05
)
$
(0.09
)
Consolidated Statements of Financial Position as at July 31, 2024 and 2023
The following table is extracted from the Company’s consolidated financial statements and presented in Canadian dollars to demonstrate the Company’s financial position as at July 31, 2024 and July 31, 2023:
July 31, 2024
July 31, 2023
Assets
Current assets
Cash and cash equivalents
$
8,628,521
$
8,327,449
Receivables
3,862,199
847,429
Prepaid expenses and deposits
949,012
1,026,668
Current portion of deferred cost of revenue
371,309
-
Inventory
3,688,246
1,602,971
17,499,287
11,804,517
Property and equipment
2,135,956
2,063,817
Intangible assets
4,465,755
4,843,700
Non-current portion of deferred cost of revenue
496,868
-
Right of use assets
344,304
286,796
Total assets
$
24,942,170
$
18,998,830
Liabilities
Current liabilities
Accounts payable and accrued liabilities
$
3,991,292
$
2,519,350
Current portion of deferred revenue
3,443,524
968,509
Current portion of lease liability
190,400
232,483
7,625,216
3,720,342
Non-Current liabilities
Non-current portion of deferred revenue
3,155,579
411,232
Non-current portion of lease liability
190,526
124,358
$
10,971,321
$
4,255,932
Shareholders' equity
Share capital
$
144,372,452
$
135,823,337
Contributed surplus
16,163,950
14,420,259
Accumulated deficit
(146,565,553
)
(135,500,698
)
$
13,970,849
$
14,742,898
Total liabilities and shareholders' equity
$
24,942,170
$
18,998,830
Consolidated Statements of Cash Flows for the Years Ended July 31, 2024 and 2023
The following table is extracted from the Company’s consolidated financial statements and presented in Canadian dollars to demonstrate the Company’s cash flows for the years ended July 31, 2024 and 2023:
2024
2023
Cash flow used in operating activities
Loss and comprehensive loss for the year
$
(11,064,855
)
$
(16,336,473
)
Adjustment for:
Share-based compensation
1,036,744
950,536
Depreciation
1,303,571
923,764
Amortization
805,900
805,900
Finance cost
22,420
42,237
Loss on inventory
175,042
346,374
Loss on retirement of assets
95,066
181,107
Other income
-
(20,000
)
Realized loss on investments
-
55,082
Unrealized gain on investments
-
(58,333
)
(7,626,112
)
(13,109,806
)
Changes in non-cash working capital
Receivables
(3,014,770
)
1,047,727
Prepaid expenses and deposits
77,656
(358,018
)
Inventory
(4,522,739
)
(2,198,583
)
Deferred cost of revenue
250,853
-
Accounts payable and accrued liabilities
1,471,942
(99,732
)
Deferred revenue
5,219,362
1,183,090
Cash used in operating activities
(8,143,808
)
(13,535,322
)
Cash flow used in investing activities
Acquisition of intangible assets
(427,955
)
-
Acquisition of right of use asset
(1,800
)
-
Purchase of property and equipment
-
(32,539
)
Disposal of investment - Gemina Labs
-
397,001
Cash (used in) received from investing activities
(429,755
)
364,462
Cash flow from financing activities
Proceeds on issue of share capital, net of share issue costs
