ARLINGTON, Va., Aug. 29, 2022 (GLOBE NEWSWIRE) — Edge Total Intelligence Inc. (TSXV: CTRL; FSE: Q5i) (“edgeTI,” “we,” “us,” or the “Company”), a leading operations in real time, announces its operating and consolidated results for the second quarter of 2022 (“Q2-2022”). Financial information is expressed in United States (US) dollars, unless otherwise indicated. The Company’s related financial and management commentary and analysis for the second quarter of 2022 is posted on its profile at SEDAR (www.sedar.com).
Financial Highlights for Q2-2022
- Total revenue of $951,000 compared to $961,000 for the quarter ending June 30, 2021 (“Q2-2021”), roughly stable compared to the previous quarter ending March 31, 2022 (“Q1-2022”) at $956,000.
- Subscription revenue increased 6% to $814,749 from $765,367 in Q2-2021.
- Gross profit increased 11% to $701,193 from $633,117 in Q2-2021.
- Net loss reduced by 51% or $663,000 in the second quarter of 2021 as the company strives to achieve profitable operations.
Operational Highlights for Q2-2022
- Teaming up with SD3IT, LLC for the TechNet Indo-Pacific Spring Symposium resulted in a strategic partnership for work in data transformation and led to the company being invited to the opening of the Hawai’i Indo-Pacific Innovation Campuses (HIPIC)an Independent Testing Organization (ITO) supporting U.S. Army Pacific Command.
- The Company has obtained a $1 million operating line of credit from Lotus Domaine III (“Lotus”), its major shareholder, based on the Company’s projected cash flows through the summer.
- On July 1, the company was one of 27 companies to be awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) contract by the US Air Force with a cap of $950 million through May 2025 for maturation. , demonstration and proliferation of capabilities across platforms and domains, leveraging open systems design, development of modern software and algorithms to enable joint command and control of all domains (JADC2) for the US armed forces and their allies.
- edgeTI and OnSolve have formed a strategic partnership to bring OnSolve’s AI-powered risk intelligence and critical communications into the edgeTI platform to provide complete operational visibility and control to smart cities and enterprises that seek to achieve organizational resilience in their operations, logistics and supply chain. The strategic partnership establishes reference relationships between the sales teams of each company and formalizes the integration between the products of the two companies.
- The company’s new intelligent, low-code automation capabilities have resulted in significant time and cost savings in live operational testing and are attracting strong interest from service providers, who management, will unlock further high-revenue growth opportunities for the remainder of 2022 and beyond.
- Jim Barrett, CEO, has been accepted into the Forbes Technology Council, an invitation-only community for world-class CIOs, CTOs, and technology executives that will improve executive access to a wide range of business leaders.
“We continue to build on our government program as a trusted technology provider to the U.S. government, as evidenced by our inclusion in the JADC2 contract and the creation of new partnerships with SD3IT and OnSolve,” said Jim Barrett, CEO.
“I’m proud of the work done by our development team to create new low-code and additional automation features within our edgeCore platform. Live operational trials with strategic customers have resulted in huge time and cost savings, such as accelerating existing operations by more than 80%,” said Jim Barrett. “These capabilities have not only proven beneficial to these early customers, but we believe the advancements will serve as an exciting accelerator for the company’s revenue growth going forward.”
Ongoing global business challenges and uncertainty, which are well reported, have delayed customer decisions on expansions and new projects, which impacted second quarter revenue growth. In contrast, the same business challenges and uncertainties are driving increased demand from government and service providers. National defense and smart city initiatives demonstrate an increased need to improve visualization of their real-time operations and accelerate data-driven decision-making and automation. Business process contractors and managed service providers facing growing talent shortages and inflationary costs that are shrinking their profit margins are demanding new approaches to automating business operations. Either way, the Company believes these trends will drive further pipeline development leading to further growth, while facing continued uncertainty and new challenges.
|Quarter ended June 30||Semester ended June 30|
|Second quarter and half-year ended||2022||2021||2022||2021|
|Revenue||$||951 219||$||960 585||$||1,907,740||$||2,184,175|
|Revenue cost||250,026||327 467||485,848||673 132|
|Gross profit||$||701 193||$||633 118||$||1,421,892||$||1,511,043|
|Gross margin %||74||%||66||%||75||%||69||%|
|Sales and marketing expenses||388,966||369 208||780,564||772,088|
|Administrative expenses||612 245||702 955||1,343,707||1,139,632|
|Research and development costs||359,673||295,400||779 115||578 697|
|Other (income) expenses||111,619||333 242||218,811||(96,434||)|
|Operating profit (loss)||$||(771,310||)||$||(1,067,687||)||$||(1,700,305||)||$||(882,940||)|
|Change in fair value of warrant liability||(283,362||)||–||(119,270||)|
|Exchange loss||(90 198||)||–||(50,572||)|
|Loss before income taxes||$||(627,608||)||$||(1,291,128||)||$||(1,994,198||)||$||(1,376,158||)|
|income tax expense||–||–||–||–|
|Equity||Quarter ended June 30||Semester ended June 30|
|Comparison 2022 to 2021||2022||2021||2022
|Net loss per share – basic||$||(0.03||)||$||(0.16||)||$||(0.11||)||$||(0.17||)|
|Net loss per share – diluted||$||(0.03||)||$||(0.16||)||$||(0.11||)||$||(0.17||)|
|Share capital – issued and outstanding
Single Voting Shares (SVS) – 41.7%
|Multiple Voting Shares (MVS) – 58.3%||26,600||–||26,600||–|
edgeTI helps customers maintain situational awareness and accelerate data-driven action with its real-time digital operations software, edgeCore™. Global enterprises, service providers, and governments are more profitable when vision and action are united to deliver seamless experiences through the platform’s low-code development capability and composable experiences. With edgeCore, customers improve margins and agility by rapidly transforming siled systems and data in complex and evolving situations across business, technology and cross-domain operations, helping them achieve the impossible. Traded on: TSXV: CTRL FSE: Q5i
Learn more at https://edgeti.com.
For more information, contact:
E-mail: [email protected]
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Forward-looking information and statements
Certain statements in this press release are forward-looking statements or information for purposes of applicable Canadian and United States securities laws, including statements regarding market projections, product development impacts on customers, execution of the Company’s growth and marketing strategies, the Company’s expectations for its MRR and its 2022 and 2023 revenue, the Company’s ability to enter into strategic partnerships and to continue to develop easy products to use, and other questions. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forward-looking terms such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe”, and “continue”. or the negative thereof or similar variations. Readers are cautioned that the assumptions used in preparing any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those anticipated due to numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, including, but without limitation, business risks, economic and capital market conditions.
These 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 demand for its products, expected costs and the ability to achieve objectives. Factors that could cause actual results to differ materially from those in the forward-looking statements include the continued availability of capital and financing, the impact of COVID-19 or other viruses and illnesses on the company’s ability to operate. , competition and general economics, market or business conditions. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Readers are cautioned not to place undue reliance on forward-looking information. The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.