Kadestone Capital Corp. Reports Q3 2024 Financial Results

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Kadestone Capital Corp (TSXV: KDSX, OTCQB: KDCCF) reported its Q3 2024 financial results, showing a net loss of $2,761,871 ($0.06 per share) for the nine months ended September 30, 2024, compared to a loss of $2,319,692 ($0.05 per share) in the same period last year. The loss was attributed to operational expenses, including consulting fees ($1,110,683), salaries ($551,012), professional fees ($478,574), share-based compensation ($243,810), and interest expense ($1,090,082). These were partially offset by income from associates ($938,728) and mortgage fund investments ($172,461). Net cash used in operations increased to $2,606,385 from $1,943,623 year-over-year.

Positive

• Income from associates of $938,728
• Additional income from mortgage fund investment of $172,461

Negative

• Net loss increased by 19% to $2.76M compared to previous year
• Higher operational cash burn at $2.61M, up 34% year-over-year
• Significant expense increase in consulting fees ($1.11M) and interest ($1.09M)

Vancouver, British Columbia--(Newsfile Corp. - November 15, 2024) - Kadestone Capital Corp. (TSXV: KDSX) (OTCQB: KDCCF) ("Kadestone" or the "Company"), a vertically integrated property company, today announced its financial results for the nine months ended September 30, 2024.

Financial Results

The Company recorded a net loss for the nine months ended September 30, 2024, of $2,761,871 or $0.06 per share compared to a net loss of $2,319,692 or $0.05 per share for the same period in the prior year. The loss was primarily due to expenses incurred for the ongoing operations of the Company which included consulting fees of $1,110,683, salaries and wages of $551,012, professional fees of $478,574 share-based compensation of $243,810 and interest expense of $1,090,082 that were partially offset by income from associates of $938,728 and income from investment in mortgage fund of $172,461. Net cash used in operating activities for the nine months ended September 30, 2024, increased to $2,606,385 compared to $1,943,623 for the nine months ended September 30, 2023.

The above unaudited financial information, including comparative information, is expressed in Canadian dollars and has been prepared in accordance with International Financial Reporting Standards, using the accounting policies and methods of application as described in notes 2 and 3 of the Company's audited consolidated financial statements for the years ended December 31, 2023 and 2022.

About Kadestone

Kadestone was established to pursue the investment in, acquisition, development and management of residential and commercial income producing properties within major urban centres and high-growth emerging markets in Canada. The Company operates complimentary business lines spanning development and construction, construction finance, asset ownership and property management. These synergistic business lines have solidified Kadestone's vision to become a market leading vertically integrated property company. Additional information can be found at www.kadestone.com.

For further information please contact David Negus, CFO, Kadestone Capital Corp., dnegus@kadestone.com, 604 671-8142

ON BEHALF OF THE BOARD

(signed) "Brent Billey"

President, CEO and Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward- Looking Statements

Certain information in this press release, including, but not limited to, the Company's ability to identify opportunities and secure additional investments in 2024 and the Company's vision to become a leading vertically integrated property company, may constitute forward looking information (collectively, "forward-looking statements"), which can be identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue" or "believe" (or the negatives) or other similar variations. Because of various risks and uncertainties, including those referenced below, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. As a result, you should not rely on such forward-looking statements. Additional information identifying assumptions, risks and uncertainties relating to Kadestone is contained in Kadestone's filings with the Canadian securities regulators available at www.sedarplus.ca. These risks include those described in the "Risk Factors" section of the Company's final prospectus dated September 2, 2020, and in the Management's Discussion and Analysis for the years ended December 31, 2023 and 2022. The forward-looking statements in this press release are applicable only as of the date of this release or as of the date specified in the relevant forward-looking statement. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230256

FAQ

What was Kadestone Capital's (KDCCF) net loss for Q3 2024?

Kadestone Capital reported a net loss of $2,761,871 ($0.06 per share) for the nine months ended September 30, 2024.

How much cash did KDCCF use in operations during Q3 2024?

Kadestone Capital used $2,606,385 in operating activities for the nine months ended September 30, 2024, an increase from $1,943,623 in the same period of 2023.

What were the main expenses contributing to KDCCF's Q3 2024 loss?

The main expenses were consulting fees ($1,110,683), salaries ($551,012), professional fees ($478,574), share-based compensation ($243,810), and interest expense ($1,090,082).