American Aires Announces Q2 2024 Results with Strong 45% YoY Sales Growth; and Engages Clarkham Capital Ltd
American Aires Inc. (CSE: WIFI) (OTCQB: AAIRF) reported strong Q2 2024 results with a 45% YoY sales growth to $2.8 million. The company's cash balance improved to $3.8 million, up from $0.03 million in December 2023. Gross profit increased by 50% YoY to $1.7 million, with gross margin improving to 61%. Despite higher marketing and overhead costs, Adjusted EBITDA loss was $0.8 million, in line with expectations.
Aires entered strategic partnerships with UFC, NHL's John Tavares, Canada Basketball, and WWE to boost brand awareness. The company also engaged Clarkham Capital for investor relations services focused on the German market. Andrew Michrowski transitioned from the Board of Directors to lead the Science Advisory Board, overseeing R&D initiatives for EMF protection technology.
American Aires Inc. (CSE: WIFI) (OTCQB: AAIRF) ha riportato risultati solidi nel secondo trimestre del 2024 con una crescita delle vendite del 45% su base annua arrivando a $2.8 milioni. Il saldo di cassa dell'azienda è migliorato a $3.8 milioni, rispetto a $0.03 milioni di dicembre 2023. Il profitto lordo è aumentato del 50% su base annua a $1.7 milioni, con un margine lordo migliorato al 61%. Nonostante un aumento dei costi di marketing e generali, la perdita di EBITDA rettificato è stata di $0.8 milioni, in linea con le aspettative.
Aires ha intrapreso partnership strategiche con UFC, John Tavares della NHL, Canada Basketball e WWE per aumentare la consapevolezza del brand. L'azienda ha anche ingaggiato Clarkham Capital per servizi di relazioni con gli investitori focalizzati sul mercato tedesco. Andrew Michrowski è passato dal Consiglio di Amministrazione a guidare il Consiglio di Consulenza Scientifica, sovrintendendo alle iniziative di R&D per la tecnologia di protezione EMF.
American Aires Inc. (CSE: WIFI) (OTCQB: AAIRF) reportó resultados sólidos en el segundo trimestre de 2024 con un crecimiento de ventas del 45% interanual alcanzando $2.8 millones. El saldo de efectivo de la empresa mejoró a $3.8 millones, en comparación con $0.03 millones en diciembre de 2023. Las ganancias brutas aumentaron un 50% interanual a $1.7 millones, con un margen bruto que mejoró al 61%. A pesar de mayores costos de marketing y generales, la pérdida ajustada de EBITDA fue de $0.8 millones, acorde a las expectativas.
Aires estableció asociaciones estratégicas con UFC, John Tavares de la NHL, Canada Basketball y WWE para aumentar el reconocimiento de la marca. La empresa también contrató a Clarkham Capital para servicios de relaciones con inversores centrados en el mercado alemán. Andrew Michrowski pasó del Consejo de Administración para liderar el Consejo Asesor Científico, supervisando las iniciativas de I+D para la tecnología de protección EMF.
American Aires Inc. (CSE: WIFI) (OTCQB: AAIRF)는 2024년 2분기 강력한 실적을 보고하며, 전년 대비 45% 매출 성장을 기록하여 280만 달러에 달했습니다. 회사의 현금 잔고는 38만 달러로 개선되었으며, 2023년 12월에는 3000달러였습니다. 총 수익은 전년 대비 50% 증가하여 170만 달러에 이르렀고, 총 마진은 61%로 향상되었습니다. 마케팅 및 경비가 증가했음에도 불구하고 조정된 EBITDA 손실은 80만 달러로 예상과 일치했습니다.
Aires는 UFC, NHL의 John Tavares, Canada Basketball 및 WWE와 전략적 파트너십을 체결하여 브랜드 인지도를 높였습니다. 회사는 또한 독일 시장을 중심으로 투자자 관계 서비스를 위해 Clarkham Capital을 고용했습니다. Andrew Michrowski는 이사 회에서 과학 자문 위원회로 옮겨 EMF 보호 기술에 대한 R&D 이니셔티브를 감독하게 되었습니다.
American Aires Inc. (CSE: WIFI) (OTCQB: AAIRF) a annoncé de solides résultats au deuxième trimestre de 2024 avec une croissance des ventes de 45% d'une année sur l'autre atteignant 2,8 millions de dollars. Le solde de trésorerie de l'entreprise a augmenté à 3,8 millions de dollars, contre 30 000 dollars en décembre 2023. Le bénéfice brut a augmenté de 50% d'une année sur l'autre pour atteindre 1,7 million de dollars, avec une marge brute améliorée, atteignant 61%. Malgré des coûts de marketing et des frais généraux plus élevés, la perte d'EBITDA ajusté était de 800 000 dollars, conforme aux attentes.
Aires a établi des partenariats stratégiques avec l'UFC, John Tavares de la NHL, Canada Basketball et la WWE pour renforcer la notoriété de la marque. L'entreprise a également engagé Clarkham Capital pour des services de relations avec les investisseurs axés sur le marché allemand. Andrew Michrowski a transitionné du conseil d'administration pour diriger le Conseil consultatif scientifique, supervisant les initiatives de R&D pour la technologie de protection EMF.
American Aires Inc. (CSE: WIFI) (OTCQB: AAIRF) berichtete von starken Ergebnissen im 2. Quartal 2024 mit einem Umsatzwachstum von 45% im Vergleich zum Vorjahr auf 2,8 Millionen Dollar. Der Bargeldbestand des Unternehmens verbesserte sich auf 3,8 Millionen Dollar, gegenüber 30.000 Dollar im Dezember 2023. Der Bruttogewinn stieg um 50% im Jahresvergleich auf 1,7 Millionen Dollar, wobei die Bruttomarge auf 61% verbessert wurde. Trotz höherer Marketing- und Gemeinkosten lag der bereinigte EBITDA-Verlust bei 800.000 Dollar, was den Erwartungen entspricht.
Aires ging strategische Partnerschaften mit UFC, NHL-Star John Tavares, Canada Basketball und WWE ein, um die Markenbekanntheit zu steigern. Das Unternehmen engagierte außerdem Clarkham Capital für Dienstleistungen im Bereich Investorenbeziehungen, die sich auf den deutschen Markt konzentrieren. Andrew Michrowski wechselte vom Board of Directors zur Leitung des Scientific Advisory Board und überwacht Forschungs- und Entwicklungsinitiativen für EMF-Schutztechnologien.
- 45% year-over-year sales growth to $2.8 million in Q2 2024
- Cash balance improved significantly to $3.8 million from $0.03 million in December 2023
- Gross profit increased by 50% year-over-year to $1.7 million
- Gross margin improved to 61% from 59% a year ago
- Strategic partnerships formed with UFC, NHL's John Tavares, Canada Basketball, and WWE
- Adjusted EBITDA loss increased to $0.8 million from $0.6 million a year ago
- Advertising and promotion expenses increased by 66% to $1.4 million
- Marketing expenses increased by 33% to $0.7 million
- Consulting and payroll expenses increased by 34% to $0.3 million
Toronto, Ontario--(Newsfile Corp. - August 26, 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 Q2 2024.
Overall, quarterly performance was in line with Aires management's expectations.
Cash and cash equivalents balance was reported at
Sales increased YoY by
During Q2/2024, the Company entered into a number of strategic marketing partnerships and increased its advertising spend to drive this strong YoY growth. The Company notes that the ramp up of each partnership is a process that takes time and preparation. Such efforts include crafting partnership strategies that connect the Aires Tech brand with peak performance and health in the minds of consumers, content capture that demonstrates that consumer connection to the brand, editing and launching ads, monitoring and optimization. Management anticipates the full benefit, greater market awareness and sales growth, to be realized over the next 6-12 months. Despite an increase in the cost of advertising associated with the upcoming presidential election in the U.S., management remains committed to its strategy of strong YoY sales growth in 2024 and beyond.
Building on the brand's momentum, Aires Tech has entered into a hallmark, multi-year global marketing partnership with Ultimate Fighting Championship ("UFC") and a marketing partnership with John Tavares of the National Hockey League's ("NHL") Toronto Maple Leafs. After the quarter end, the Company announced additional partnerships with Canada Basketball, Toronto Raptors' RJ Barrett, World Wrestling Entertainment ("WWE"), and strategic partnerships amplification firm Gray Wolf. These partnerships are intended to be used as building blocks in management's overarching strategy of supporting athletes in their pursuit of excellence while educating the public about the importance of EMF protection. Together, management aims these partnerships to position the Aires Tech brand as a recognized brand in the EMF protection and health optimization segment with access to mass markets.
"Through our strategic marketing partnerships, we've been able to grow our brand and position our products' performance benefits, including improved sleep quality, recovery times, and cognitive function, prominently with global audiences of sports fans and elite athletes," said Josh Bruni, CEO of Aires Tech. "As we scale our brand and grow sales, our alliances with top-tier performance organizations like UFC, WWE and Canada Basketball showcase the real-world applicability and effectiveness of our EMF protection technology. By showcasing these benefits in competitive environments, we validate our technology and its potential to improve lives across society."
Condensed Consolidated Interim Statements of Financial Position (Unaudited)
(in Canadian Dollars)
| Revenue | Q2 2024 | Q2 2023 | POP % | ||||||
| Sales | $ | 2,788,488 | $ | 1,925,640 | |||||
| Cost of sales | $ | (1,089,584 | ) | $ | (790,894 | ) | |||
| Gross margin | $ | 1,698,904 | $ | 1,134,746 | |||||
| Gross margin % | |||||||||
| Core expenses | |||||||||
| Advertising and promotion | $ | (1,370,616 | ) | $ | (824,196 | ) | |||
| Marketing | $ | (652,452 | ) | $ | (489,651 | ) | |||
| Core Net Income (Loss) | $ | (324,164 | ) | $ | (179,101 | ) | |||
| Overhead costs | |||||||||
| Office and general | $ | (127,124 | ) | $ | (103,231 | ) | |||
| Consulting and payroll | $ | (336,324 | ) | $ | (250,786 | ) | |||
| Legal and professional | $ | (41,334 | ) | $ | (96,387 | ) | - | ||
| Adjusted EBITDA | $ | (828,946 | ) | $ | (629,505 | ) | |||
| Other | |||||||||
| Investor relations consulting | $ | (736,782 | ) | $ | (90,000 | ) | N/A | ||
| Interest charges | $ | (46,201 | ) | $ | (263,767 | ) | - | ||
| Equity-based finance charge | $ | - | $ | (923,672 | ) | - | |||
| Depreciation | $ | (33,428 | ) | $ | (34,489 | ) | - | ||
| Net Income (Loss) | $ | (1,645,357 | ) | $ | (1,941,433 | ) | - |
Gross Profit improved
Additionally, Andrew Michrowski will resign from Aires' Board of Directors and transition to the Company's Science Advisory Board. In his new role, Michrowski will help further build Aires' Research & Development roadmap that explores additional use-cases for the Company's cutting-edge EMF diffraction technology. Michrowski will lead strategy development and oversee the scientific studies and trials that will provide the Company with a better understanding of how Aires' technology can further optimize health and performance for customers.
Lastly, the Company has also engaged Clarkham Capital Ltd. ("Clarkham") (phone: +44-20-3883-9398; address: Flat 285 - 61 Praed Street, London, W2 1NS, United Kingdom) to provide investor relations and consulting services with a focus on the German stock market and the German-speaking investor community. The services will include the preparation of articles and coverages on several financial platforms and newsletters. The services will also include the translation and distribution of news releases in Germany. The services commence on August 26, 2024 and end on October 26, 2024. The Company will pay Clarkham EUR€100,000 for its services. The Company will not issue any securities to Clarkham in consideration of the services. The Company and Clarkham deal at arm's length.
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/221141
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