American Aires Announces Q1 2024 Results with Strong 37% YoY Sales Growth Despite Traditionally Soft Q1 Consumer Spending
American Aires (CSE: WIFI, OTCQB: AAIRF) reported a strong Q1 2024, with sales up 37% year-over-year (YoY) to $2.0 million despite traditionally soft consumer spending. Gross margin held steady at 60%. The cash balance grew significantly from $0.03 million in Q4 2023 to $2.3 million in Q1 2024, thanks to a $4 million oversubscribed financing in February 2024. Additional financing in May 2024 raised another $3.77 million.
Key highlights include a 47% YoY order volume increase in April 2024 and a 132% YoY increase to date in May 2024. However, costs rose: advertising and promotion expenses surged 63%, marketing expenses went up 27%, and the adjusted EBITDA loss widened by 38% to $876,897. The net loss for the quarter was $1.08 million, a 26% increase YoY.
The company plans to use the raised capital to enhance marketing partnerships, build brand awareness, and expand internationally, aiming for accelerated sales growth throughout the year.
- Sales increased by 37% YoY to $2.0M.
- Gross margin remained strong at 60%.
- Cash balance improved significantly from $0.03M in Q4 2023 to $2.3M in Q1 2024.
- Successful $4M financing in February 2024 and an additional $3.77M in May 2024.
- Order volume growth in April 2024 was 47% YoY and 132% YoY for May 2024 to date.
- Stock price increased from $0.20 in January to $0.95 by May 28, 2024.
- Advertising and promotion expenses increased by 63% YoY.
- Marketing expenses rose by 27% due to a shift in payment terms with a marketing partner.
- Adjusted EBITDA loss widened by 38% to $876,897.
- Net loss increased by 26% YoY to $1.08M.
- Core net income (loss) worsened by 97%.
- Quarterly sales exceeded
$2.0M - Gross margin held strong at
60% - Cash balance grew to
$2.3M
Toronto, Ontario--(Newsfile Corp. - May 28, 2024) - American Aires Inc. (CSE: WIFI) (OTCQB: AAIRF) ("Aires" or the "Company"), a pioneer in cutting-edge technology designed to protect against electromagnetic radiation and optimize human health, is pleased to announce filing of the Company's Financial Statements and Management's Discussion & Analysis (MD&A) for Q1 2024.
Quarterly performance was in line with Aires management’s expectations, with a strong
American Aires CEO, Josh Bruni, commented: "Now that Q1 and our heavy lifting on the IR front are behind us, we're refocusing our efforts on deploying the capital we raised across 3 major fronts: forging prominent new marketing partnerships, building universal brand awareness, and expanding internationally. In other words, continuing to do what's enabled our multi-year trajectory of significant revenue growth so we can make 2024 our best year ever. With a stronger balance sheet to fuel the process, we'll scale up our growth engine's proven data-driven advertising model for greater efficiency and effectiveness. We'll also continue to create strategic marketing partnerships and seek mass media exposure that can help grow sales and build Aires Tech into a household brand, as we've already done through our partnerships with former NFL record-setter Tiki Barber, UFC star Maycee Barber, and representative of the stars WME (William Morris Endeavor), and through our coverage on Fox Business Network's popular Dr. Drew show and on Rumble's video platform featuring Russell Brand reading Aires ads. When you put it all together, our expectation is for our YoY sales growth to accelerate through the remainder of the year."
Management strategically increased its focus on capital markets initiatives during Q1 2024 to widen awareness of the Company within the investment community and to raise sufficient capital to enable future sales growth by scaling up data-driven advertising, promotion and marketing investments. Capital market initiatives included the execution of 2 equity financings; uplisting the Company's OTC listing to OTC QB to attract more US-based investors; and strategic IR campaigns and investor meetings to introduce or provide updates about the Aires story to individual investors, financial advisors and investment banks. Management will continue building on the ground gained through these initiatives though at a more measured pace.
The Aires stock price trended up strongly throughout Q1 2024, rising from
The
The
Adjusted EBITDA loss increased slightly by
Condensed Consolidated Interim Statements of Financial Position (Unaudited)
(in Canadian Dollars)
| Revenue | Q1 2024 | Q1 2023 | POP % | ||||||
| Sales | $ | 2,037,395 | $ | 1,487,372 | |||||
| Cost of sales | $ | (811,865 | ) | $ | (595,754 | ) | |||
| Gross margin | $ | 1,225,529 | $ | 891,619 | |||||
| Gross margin % | |||||||||
| Core expenses | |||||||||
| Advertising and promotion | $ | (1,083,848 | ) | $ | (663,724 | ) | |||
| Marketing | $ | (554,874 | ) | $ | (437,243 | ) | |||
| Core Net Income (Loss) | $ | (413,192 | ) | $ | (209,348 | ) | |||
| Overhead costs | |||||||||
| Office and general | $ | (130,242 | ) | $ | (77,539 | ) | |||
| Consulting and payroll | $ | (312,276 | ) | $ | (256,627 | ) | |||
| Legal and professional | $ | (21,187 | ) | $ | (91,663 | ) | - | ||
| Adjusted EBITDA | $ | (876,897 | ) | $ | (635,177 | ) | |||
| Other | |||||||||
| Investor relations consulting | $ | (127,829 | ) | $ | - | N/A | |||
| Interest charges | $ | (44,882 | ) | $ | (191,608 | ) | - | ||
| Depreciation | $ | (33,334 | ) | $ | (34,489 | ) | - | ||
| Net Income (Loss) | $ | (1,082,942 | ) | $ | (861,274 | ) |
About American Aires Inc.
American Aires Inc. is a Canadian-based nanotechnology company committed to enhancing well-being and environmental safety through science-led innovation, education, and advocacy. The company has developed a proprietary silicon-based resonator that protect against the harmful effects of electromagnetic radiation (EMR). Aires' Lifetune products target EMR emitted by consumer electronic devices such as cellphones, computers, baby monitors, and Wi-Fi, including the more powerful and rapidly expanding high-speed 5G networks. Aires is listed on the CSE under the ticker 'WIFI' and on the OTC QB under the symbol 'AAIRF'. Learn more at www.investors.airestech.com.
On behalf of the board of directors
Company Contact:
Josh Bruni, CEO
Website: www.investors.airestech.com
Email: wifi@airestech.com
Telephone: (415) 707-0102
This news release refers to certain financial performance measures that are not defined by and do not have a standardized meaning under International Financial Reporting Standards including "Adjusted EBITDA" (termed "Non-IFRS measures"). Non-IFRS measures are used by management to assess the financial and operational performance of the Company. The Company believes that these Non-IFRS measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards, enable investors to evaluate the Company's operating results, underlying performance and prospects in a similar manner to the Company's management. As there are no standardized methods of calculating these Non-IFRS measures, the Company's approach may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these Non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards. The Corporation defines EBITDA as earnings before interest tax depreciation and amortisation. Adjusted EBITDA removes irregular and non-recurring items that distort EBITDA.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position and financial measures, YoY sales growth in 2024, sales growth resulting from advertising and promotion expenses, marketing partnerships, international expansion, ability to attract US-based investors, efficiency and effectiveness of the Company's advertising model, future market position, growth, innovations, global impact, business strategy, achieving universal brand awareness and brand development, product adoption, use of proceeds, corporate vision, proposed acquisitions, strategic partnerships, joint ventures, 2024 being our best year ever, continuing our trajectory of revenue growth, relationships with athletes, celebrities and performers, the size and growth of the consumer market focused on wellbeing and EMF protection, strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions, the occurrence of force majeure events, developments and changes in laws and regulations, competitive factors, and dependence upon regulatory approvals. Certain material assumptions regarding such forward-looking statements may be discussed in this news release and the Company's annual and quarterly management's discussion and analysis filed at www.sedarplus.ca. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States, or to or for the account or benefit of any person in the United States, absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any common shares in the United States, or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. We seek safe harbour.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/210845
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