Advantex Announces Fiscal 2022 First Quarter Results

Advantex Announces Fiscal 2022 First Quarter Results

Canada NewsWire

TORONTO, Nov. 25, 2021 /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 months ended September 30, 2021.

Highlights of financial results for three months ended September 30, 2021 compared to three months ended September 30, 2020:


September 2021


September 2020


Inc./(Dec)

Inc./(Dec)


$



$



$

%

Revenues

$

373,297


$

311,772


$

61,525

19.7%

Direct expenses









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

$

138,171


$

61,717


$

76,454


Expense for provision against delinquent accounts

$

1,466


$

28,727


$

(27,261)


Gross profit

$

233,660


$

221,328


$

12,332

5.6%

Selling and General & Administrative expenses

$

349,506


$

309,862


$

39,644


(Loss) from operations before depreciation, amortization and interest

$

(115,846)


$

(88,534)


$

27,312

30.8%

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

$

244,207


$

246,841


$

(2,634)


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

$

(360,053)


$

(335,375)


$

24,678

7.4%

Interest - Lease

$

2,172


$

3,960


$

(1,788)


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

$

194,183


$

158,113


$

36,070


Depreciation of right of use asset

$                    -


$

11,373


$

(11,373)


Net (loss) and comprehensive (loss)

$

(556,408)


$

(508,821)


$

47,587

9.4%







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 months ended September 30, 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

September 30,
2021


June 30,  
2021



$


$

Assets





Current assets





Cash 


$

635,402


$

82,606

Accounts receivable


101,476


93,090

Transaction credits 

5

2,880,956


1,726,663

Prepaid expenses and sundry assets


45,673


43,675



$

3,663,507


$

1,946,034






Total assets


$

3,663,507


$

1,946,034






Liabilities





Current liabilities





Loan payable 

6

$

3,399,073


$

2,387,439

Lease liability

15

67,432


71,910

Loan

16

60,000


60,000

Accounts payable and accrued liabilities


2,720,464


2,731,158



$

6,246,969


$

5,250,507






Non-current liabilities





9% non convertible debentures payable

7

$

5,582,348


$

4,694,885

Lease liability

15

-


12,769



$

5,582,348


$

4,707,654






Total liabilities


$

11,829,317


$

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


(40,416,427)


(39,860,019)

Total deficiency


$

(8,165,810)


$

(8,012,127)






Total liabilities and deficiency


$

3,663,507


$

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 months ended September 30, 2021 and 2020
(expressed in Canadian dollars)


Note

2021


2020



$


$






Revenues

14




Marketing activities


$

197,468


$

112,958

Interest income 


175,829


198,814



$

373,297


$

311,772

Direct expenses

13/14

139,637


90,444



233,660


221,328

Operating expenses





Selling and marketing

13/14

147,898


147,165

General and administrative

13/14

201,608


162,697

(Loss) from operations before depreciation, amortization and interest


(115,846)


(88,534)






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

6/7

244,207


246,841

Interest - Lease

15

2,172


3,960

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

7

194,183


158,113

Depreciation of right of use asset

15

-


11,373

Net (loss) and comprehensive (loss)


$

(556,408)


$

(508,821)






(Loss) per share





Basic and Diluted

12

$

-


$

-






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 months ended September 30, 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)

-


-


-


-


(508,821)


(508,821)

Balance - September 30, 2020

$

3,815


$

24,526,740


$

4,117,170


$

(47,383)


$

(38,276,873)


$

(9,676,531)


























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)

-


-


-


-


(556,408)


(556,408)

Balance - September 30, 2021

$

3,815


$

24,526,740


$

7,767,445


$

(47,383)


$

(40,416,427)


$

(8,165,810)













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 months ended September 30, 2021 and 2020
(expressed in Canadian dollars)


Note

2021


2020



$


$

Operational activities





Net (loss) for the period


$

(556,408)


$

(508,821)

Adjustments for:





Accrued and unpaid 9% non convertible debentures payable interest 

7

173,506


130,286

Interest - Lease

15

2,172


3,960

Depreciation of right of use asset

15

-


11,373

Accretion charge - 9% non convertible debentures payable

7

173,944


86,488

Restructuring bonus - 9% non convertible debentures payable

7

18,749


66,928

Amortization of transaction costs - 9% non convertible debentures payable

7

1,490


4,697



(186,547)


(205,089)

Changes in items of working capital





Accounts receivable


(8,386)


5,329

Transaction credits 


(1,154,293)


733,875

Prepaid expenses and sundry assets


(1,998)


6,094

Accounts payable and accrued liabilities


(10,694)


76,777



(1,175,371)


822,075

Net cash (used)/generated - operating activities


$

(1,361,918)


$

616,986







Financing activities





Gross proceeds - 9% non convertible debentures payable

7

$

1,000,000


$

-

Transaction costs - 9%  non convertible debentures payable

7

(77,501)


-

Payment for lease


(19,419)


(19,418)

Increase/(Decrease) of loan payable

6

1,011,634


(707,370)

Net cash generated/(used) - financing activities


$

1,914,714


$

(726,788)






Increase/(Decrease) in cash during the period


$

552,796


$

(109,802)

Cash at beginning of the period


82,606


166,601

Cash at end of the period


$

635,402


$

56,799






Additional information





Interest paid 


$

70,701


$

116,555






Cash 


$

635,402


$

56,799






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



 

SOURCE Advantex Marketing International Inc.

Cision View original content: http://www.newswire.ca/en/releases/archive/November2021/25/c8229.html

Copyright CNW Group 2021