Advantex Announces Fiscal 2022 Results

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TORONTO, October 20, 2022 /CNW/ – Advantex Marketing International Inc. (CSE: ADX) (“Advantex”), a leader in cash advance and loyalty marketing products for merchants, announced its results for the twelve months ended June 30, 2022.

Highlights of financial results for the twelve months ended June 30, 2022 compared to the twelve months ended June 30, 2021 are the following:

Financial year 2022

Financial year 2021

Revenue

$

1,739,697

$

1,229,880

Direct expenses

Loyalty bonus and marketing costs related to
Advantex Merchant Based Loyalty Program

$

416 483

$

293 167

Provision charge on overdue accounts,
credit/collection charges

$

325 326

$

75,483

Gross profit

$

997 888

$

861 230

Selling, general and administrative expenses

$

1 802 346

$

1,833,766

Federal Covid-19 Wage and Rental Subsidies

$

(152,032)

$

(548,022)

Operating (loss) before amortization and interest

$

(652,426)

$

(424,514)

Debt interest declared – loan payable and 9% non-convertible
debentures payable

$

1,250,694

$

910 874

Operating (loss) before depreciation, amortization, no
cash interest and non-monetary items

$

(1,903,120)

$

(1,335,388)

Interest – Rental

$

5,760

$

13,219

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

$

798 958

$

644 798

Amortization of right of use

$

$

45,490

Impairment of right to use asset

$

$

53,072

Net (loss) and overall (loss)

$

(2,707,838)

$

(2,091,967)

Further details are available in the consolidated financial statements and MD&A available under Advantex’s profile at www.sedar.com

The table above is a non-GAAP presentation and is provided to assist readers in understanding Advantex’s financial performance. The information is extracted from the consolidated financial statements for the twelve months ended June 30, 2022.

About Advantex:

Advantex provides working capital to traders. Advantex also offers specialized marketing programs that allow Aeroplan members to earn Aeroplan points at participating merchants.

Advantex shares trade on the Canadian Stock Exchange under the symbol ADX. For more information, visit Advantex’s profile at www.sedar.com

Advantex Marketing International Inc.
Consolidated Statements of Financial Position
(expressed in Canadian dollars)

To note

June 30th,
2022

June 30th,
2021

$

$

Assets

Current assets

Cash

$93,185

$82,606

Accounts Receivable

10am

83,320

93,090

Transaction Credits

10am

3,312,268

1,726,663

Prepaid expenses and miscellaneous assets

41,589

43,675

$3,530,362

$1,946,034

Total assets

$3,530,362

$1,946,034

Passives

Current liabilities

Loan payable

5

$4,019,685

$2,387,439

Rental liability

17

12,768

71,910

Ready

18

60,000

60,000

Accounts payable and accrued liabilities

2,825,914

2,731,158

$6,918,367

$5,250,507

Non-current liabilities

9% non-convertible debentures payable

6

$6,953,878

$4,694,885

Rental liability

17

12,769

$6,953,878

$4,707,654

Total responsibilities

$13,872,245

$9,958,161

Failure of shareholders

Share the capital

seven

$24,530,555

$24,530,555

Contributed surplus

7,742,802

7,364,720

Accumulated other comprehensive income

(47,383)

(47,383)

Deficit

(42,567,857)

(39,860,019)

Total deficiency

$(10,341,883)

$(8,012,127)

Total liabilities and shortfall

$3,530,362

$1,946,034

Going concern (note 2a) and Commitments and contingencies (note 12)

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

Board Approved

Director: Signed “Marc Lavine”

Director: Signed “Kelly Ambroise”

Marc Lavine

Kelly Ambroise

Advantex Marketing International Inc.
Consolidated statements of (losses) and comprehensive (losses)
For the years ended June 30, 2022 and 2021
(expressed in Canadian dollars)

To note

2022

2021

$

$

Revenue

16

Marketing activities

$571,699

$484,099

interest income

1,167,998

745 781

1,739,697

1,229,880

Direct expenses

15/16

741 809

368,650

997 888

861 230

Operating Expenses

Sales and marketing

15/16

569,827

496,853

general and administrative

15/16

1,080,487

788 891

Operating (loss) before amortization and interest

(652,426)

(424,514)

Interest expense reported – loan payable and 9% non-convertible debentures payable

5/6

1,250,694

910 874

Interest – Rental

17

5,760

13,219

Non-cash interest expense – accretion expense, restructuring premium and amortization
transaction costs related to the 9% non-convertible debentures payable

6

798 958

644 798

Amortization of right of use

17

45,490

Impairment of right to use asset

17

53,072

Net (loss) and overall (loss)

$(2,707,838)

$(2,091,967)

(Loss) per share

Basic and Diluted

14

$(0.01)

$(0.07)

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

Advantex Marketing International Inc.
Consolidated Statements of Changes in Shareholders’ Deficiency
For the years ended June 30, 2022 and June 30, 2021
(expressed in Canadian dollars)

Class A
preference
actions

Common
actions

Contributed
surplus

Accumulated
other
complete
loss

Deficit

Total

$

$

$

$

$

$

To balance – July 1, 2020

$3,815

$24,526,740

$4,117,170

($47,383)

$(37,768,052)

($9,167,710)

Issuance of 9% non-convertible debentures payable (note 6)

3,247,550

3,247,550

Net (loss) and overall (loss)

(2,091,967)

(2,091,967)

To balance – June 30, 2021

$3,815

$24,526,740

$7,364,720

($47,383)

($39,860,019)

$(8,012,127)

To 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 6)

378,082

378,082

Net (loss) and overall (loss)

(2,707,838)

(2,707,838)

To balance – June 30, 2022

$3,815

$24,526,740

$7,742,802

($47,383)

$(42,567,857)

$(10,341,883)

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

Advantex Marketing International Inc.
Consolidated statements of cash flows
For the years ended June 30, 2022 and 2021
(expressed in Canadian dollars)

To note

June 30th,
2022

June 30th,
2021

$

$

Operational activities

(Net loss) for the year

$(2,707,838)

$(2,091,967)

Adjustments for:

Accrued and unpaid interest on 9% non-convertible debentures payable

6

773 733

554,888

Interest – Rental

17

5,760

13,219

Amortization of right of use

17

45,490

Impairment of right to use asset

17

53,072

Accretion expense – 9% of non-convertible debentures payable

6

710 452

453,036

Restructuring premium – 9% non-convertible debentures payable

6

73,063

178,455

Amortization of transaction costs – 9% non-convertible debentures payable

6

15,443

13,307

(1,129,387)

(780,500)

Change in working capital items

Accounts Receivable

9,770

25,811

Transaction Credits

(1,585,605)

2,197,254

Prepaid expenses and miscellaneous assets

2,086

15 106

Accounts payable and accrued liabilities

94,756

366 399

(1,478,993)

2,604,570

Net cash (used)/generated – operating activities

$(2,608,380)

$1,824,070

Fundraising activities

Gross proceeds – 9% non-convertible debentures payable

6

$1,150,000

$250,000

Transaction costs – 9% non-convertible debentures payable

6

(85,616)

(118,827)

Ready – Canada Emergency bank account

20,000

Lease payment

(77,671)

(77,671)

Loan proceeds payable

5

8,868,861

2,389,750

(Reimbursement) of loan payable

(7,236,615)

(4,371,317)

Net cash generated/(used) – financing activities

$2,618,959

$(1,908,065)

Increase/(decrease) in cash during the year

$10,579

($83,995)

Cash at the beginning of the year

82,606

166,601

Cash at the end of the year

$93,185

$82,606

Further information

Interest paid

$476,961

$355,986

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

THE SOURCE Advantex Marketing International Inc.

© Canada Newswire, source Canada Newswire English

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