Katipult Releases 2024 Q2 Results and Provides Corporate Updates
Katipult Technology Corp. (TSXV: FUND) has released its Q2 2024 financial results. Key highlights include:
- Revenue decreased by 4.8% to $512,000 from $538,000 in Q2 2023
- Gross Profit Percentage was 81.6%, down from 84.5% in Q2 2023
- Adjusted EBITDA losses increased slightly to ($243,000) from ($239,000)
- Net income was $69,000, compared to a net loss of ($484,000) in Q2 2023
- Cash and cash equivalents balance of $0.5 million as of June 30, 2024
- Working capital declined to ($3.8 million) due to 2018 Debentures shift to current liabilities
The company faces challenges in generating sufficient sales volumes for positive cash flows and relies on external financing. Katipult is focusing on adding enterprise customers, growing MRR, and enhancing its DealFlow product to digitize private capital markets.
Katipult Technology Corp. (TSXV: FUND) ha pubblicato i risultati finanziari per il secondo trimestre del 2024. I punti salienti includono:
- I ricavi sono diminuiti del 4,8% a $512,000 rispetto a $538,000 nel secondo trimestre del 2023
- La percentuale di utile lordo è stata dell'81,6%, in calo rispetto all'84,5% nel secondo trimestre del 2023
- Le perdite dell'EBITDA rettificato sono aumentate lievemente a ($243,000) rispetto a ($239,000)
- Il reddito netto è stato di $69,000, rispetto a una perdita netta di ($484,000) nel secondo trimestre del 2023
- Il saldo di cassa e equivalenti era di $0,5 milioni al 30 giugno 2024
- Il capitale circolante è sceso a ($3,8 milioni) a causa del passaggio dei Debentures del 2018 a passività correnti
La società affronta sfide nel generare volumi di vendita sufficienti per flussi di cassa positivi e fa affidamento su finanziamenti esterni. Katipult si sta concentrando sull’aggiunta di clienti aziendali, sulla crescita del MRR e sul miglioramento del suo prodotto DealFlow per digitalizzare i mercati del capitale privato.
Katipult Technology Corp. (TSXV: FUND) ha publicado sus resultados financieros del segundo trimestre de 2024. Los puntos destacados incluyen:
- Los ingresos disminuyeron un 4,8% a $512,000 desde $538,000 en el segundo trimestre de 2023
- El porcentaje de ganancia bruta fue del 81,6%, bajando del 84,5% en el segundo trimestre de 2023
- Las pérdidas de EBITDA ajustado aumentaron ligeramente a ($243,000) desde ($239,000)
- El ingreso neto fue de $69,000, en comparación con una pérdida neta de ($484,000) en el segundo trimestre de 2023
- El saldo de efectivo y equivalentes era de $0.5 millones al 30 de junio de 2024
- El capital de trabajo disminuyó a ($3.8 millones) debido al traslado de los Debentures de 2018 a pasivos corrientes
La compañía enfrenta desafíos para generar volúmenes de ventas suficientes para flujos de caja positivos y depende de financiamiento externo. Katipult se está enfocando en agregar clientes empresariales, aumentar el MRR y mejorar su producto DealFlow para digitalizar los mercados de capital privado.
Katipult Technology Corp. (TSXV: FUND)가 2024년 2분기 재무 결과를 발표했습니다. 주요 사항은 다음과 같습니다:
- 매출은 2023년 2분기 $538,000에서 $512,000으로 4.8% 감소했습니다.
- 총 이익률은 81.6%로, 2023년 2분기 84.5%에서 하락했습니다.
- 조정 EBITDA 손실이 약간 증가하여 ($243,000)에서 ($239,000)으로 늘어났습니다.
- 순이익은 $69,000였으며, 2023년 2분기 순손실은 ($484,000)였습니다.
- 2024년 6월 30일 기준으로 현금 및 현금 등가물 잔고는 $0.5백만입니다.
- 2018년 채권의 유동부채 전환으로 인해 운전 자본은 ($3.8백만)으로 감소했습니다.
회사는 긍정적인 현금 흐름을 위한 충분한 판매량을 창출하는 데 어려움을 겪고 있으며 외부 자금 조달에 의존하고 있습니다. Katipult는 기업 고객을 유치하고, MRR을 증가시키며, 사모 자본 시장을 디지털화하기 위해 DealFlow 제품을 개선하는 데 집중하고 있습니다.
Katipult Technology Corp. (TSXV: FUND) a publié ses résultats financiers pour le deuxième trimestre de 2024. Les faits marquants incluent :
- Les revenus ont diminué de 4,8% à 512 000 $ contre 538 000 $ au deuxième trimestre 2023
- Le pourcentage de marge brute était de 81,6%, en baisse par rapport à 84,5% au deuxième trimestre 2023
- Les pertes d'EBITDA ajusté ont légèrement augmenté à (243 000 $) contre (239 000 $)
- Le revenu net était de 69 000 $, comparé à une perte nette de (484 000 $) au deuxième trimestre 2023
- Le solde de trésorerie et équivalents était de 0,5 million $ au 30 juin 2024
- Le fonds de roulement a diminué à (3,8 millions $) en raison du passage des débentures de 2018 aux passifs courants
L'entreprise fait face à des défis pour générer des volumes de ventes suffisants pour des flux de trésorerie positifs et dépend d'un financement extérieur. Katipult se concentre sur l'ajout de clients d'entreprise, l'augmentation du MRR et l'amélioration de son produit DealFlow pour numériser les marchés de capitaux privés.
Katipult Technology Corp. (TSXV: FUND) hat ihre finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht. Die wichtigsten Punkte sind:
- Der Umsatz sank um 4,8% auf $512,000 von $538,000 im zweiten Quartal 2023
- Die Bruttogewinnquote betrug 81,6%, ein Rückgang von 84,5% im zweiten Quartal 2023
- Die angepassten EBITDA-Verluste stiegen leicht auf ($243,000) von ($239,000)
- Der Nettogewinn betrug $69,000, verglichen mit einem Nettoverlust von ($484,000) im zweiten Quartal 2023
- Der Stand von Bargeld und Barmitteln betrug am 30. Juni 2024 $0,5 Millionen
- Das Working Capital fiel auf ($3,8 Millionen) aufgrund der Umstellung der 2018er Anleihen auf kurzfristige Verbindlichkeiten
Das Unternehmen steht vor Herausforderungen, ausreichende Verkaufszahlen für positive Cashflows zu generieren und ist auf externe Finanzierungen angewiesen. Katipult konzentriert sich darauf, Unternehmenskunden zu gewinnen, MRR zu steigern und sein DealFlow-Produkt zu verbessern, um die privaten Kapitalmärkte zu digitalisieren.
- Maintained consistent revenue from enterprise customers
- Gross Profit Percentage remains high at 81.6%
- Net income of $69,000 in Q2 2024, compared to a net loss in Q2 2023
- Renegotiated terms of 2018 Debentures after period end
- Revenue decreased by 4.8% year-over-year
- Adjusted EBITDA losses increased slightly
- Working capital declined significantly to ($3.8 million)
- Cash and cash equivalents balance decreased from $0.6 million to $0.5 million
- Unable to generate sales volumes required for positive cash flows
- Material uncertainty about the company's ability to continue as a going concern
Calgary, Alberta--(Newsfile Corp. - August 29, 2024) - Katipult Technology Corp. (TSXV: FUND) ("Katipult" or the "Corporation"), provider of an industry leading and award-winning cloud-based software infrastructure for powering the exchange of capital in equity and debt markets, is pleased to announce its financial results for the three-month period ended June 30, 2024.
The following provides a summary of the results for the second quarter of 2024. The full results and related management discussion and analysis are available on the Corporation's SEDAR+ profile (www.sedarplus.ca).
Q2 2024 Summary
Revenue
Revenue consists of subscription revenue which decreased by
Gross Profit Percentage (1)
Gross Profit Percentage was
Adjusted EBITDA (1)
Adjusted EBITDA losses increased to (
Net loss and comprehensive loss
Net income and comprehensive income was
Financial Position
As at June 30, 2024, the Corporation had a cash and cash equivalents balance of
Katipult is continuing to progress in enhancing and expanding functionality in its core DealFlow product. Going forward, the Corporation will focus on continuing to add enterprise customers, growing its monthly recurring revenue ("MRR") and adding new product capabilities to make private capital markets more efficient, transparent and fully digitized. The Corporation has not yet been able to generate the sales volumes required to create positive cash flows from operating activities. The Corporation has incurred operating losses since inception and has historically relied on equity and debt financings to fund its operating losses. While the Corporation has previously been successful in raising external capital to fund its operations, there is no guarantee it will be successful in its efforts to raise additional financing; or if financing is available, that it will be on terms that are acceptable to the Corporation. Due to these factors, there is material uncertainty that casts doubt on the Corporation's ability to continue as a going concern.
About Katipult
Katipult (www.katipult.com) is a provider of industry leading and award-winning software infrastructure for powering the exchange of capital in equity and debt markets. Our cloud-based platform and solutions digitize investment workflow by eliminating transaction redundancy, strengthening compliance, delighting investors, and accelerating deal flow. Katipult provides unparalleled adaptability for regulatory compliance, asset structure, business model, and localization requirements.
Neither the 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.
For further information: Katipult Technology Corp., Gord Breese, CEO, gbreese@katipult.com, +1 (604) 760-4000
Cautionary Note Regarding Forward-Looking Statements
Certain disclosure in this release, including statements regarding the recovery of capital markets investment activity, expectations regarding an increase in customer growth and with respect to repayment of the Loan constitute forward-looking statements. In making the forward- looking statements in this release, the Corporation has applied certain factors and assumptions that are based on the Corporation's current beliefs as well as assumptions made by and information currently available to the Corporation, including, but not limited to, the Corporation's anticipated cash needs, that the cash available to the Corporation is as expected, the Corporation's products will continue to operate as expected, the industry will continue to see value in the Corporation's products, the Corporation will be able to recruit talented and experienced sales, support and other individuals required to execute the Corporation's plans, that the Corporation's employees, consultants, customers, suppliers and other stakeholders will be able to manage their businesses successfully and that the Corporation will be able to repay the Loan. Although the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, the risk that cash available to the Corporation is not as expected, failure to manage growth successfully, lengthier than anticipated sales and implementation cycle, cyber risks, risks related to cloud based solutions, failure to continue to adapt to technological change and new product development, dependence on key personnel, competition, intellectual property risks, economic conditions, including any negative impacts of a slow-down in capital markets activity, privacy concerns and legislation, regulatory environment, risk associated with a change in the Corporation's pricing model, risk of defects in the Corporation's solution, dependence on market growth, operational service risk, dependence on partners and ability to obtain references, delay or failure to repay or renegotiate debt obligations, delay or failure to realize anticipated benefits of key account installations and such other risks as are noted in the Corporation's MD&A for the period ended June 30,2024. Readers are cautioned, especially in these uncertain times, not to place undue reliance on forward-looking statements. The Corporation does not intend to, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
1 Non-GAAP Financial Measures
This news release refers to certain Non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards ("IFRS"). "Gross Profit", "Gross Profit Percentage," "Working Capital", and "Adjusted EBITDA" are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of Katipult's performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. See "Non-GAAP Measures and Additional GAAP Measures" in the Corporation's June 30, 2024 MD&A available on the Corporation's SEDAR+ profile at www.sedarplus.ca for a discussion of non-GAAP measures and their reconciliations.
"Gross Profit" is used by management to analyze overall and segmented operating performance. Gross Profit is not intended to represent an alternative to net earnings or other measures of financial performance calculated in accordance with IFRS. Gross Profit is calculated from the statements of operations and comprehensive income (loss) and from the segmented information contained in the notes to the financial statements. Gross Profit is defined as revenue less cost of revenue.
"Gross Profit Percentage" is used by management to analyze overall and segmented operating performance. Gross Profit Percentage is calculated from the statements of operations and comprehensive income (loss) and from the segmented information in the notes to the financial statements. Gross Profit Percentage is defined as gross profit divided by revenue.
"Adjusted EBITDA" is a measure of the Corporation's operating profitability. Adjusted EBITDA provides an indication of the results generated by the Corporation's principal business activities prior to how these activities are financed (including mark-to-market movements of the convertible debenture value), assets are depreciated and amortized or how the results are taxed in various jurisdictions, prior to the effect of foreign exchange, other income and expenses, and non-cash share-based payment expense. Adjusted EBITDA is not intended to represent net earnings as calculated in accordance with IFRS.
Adjusted EBITDA is calculated as follows:
| For the three months ended June 30, | |||||||
| ($ thousands) | 2024 | 2023 | |||||
| Net income (loss) | 69 | (484 | ) | ||||
| Plus: | |||||||
| Depreciation and amortization | - | 1 | |||||
| Finance costs | 178 | 200 | |||||
| Unrealized gain on convertible debentures | (472 | ) | (13 | ) | |||
| Foreign exchange (gain) loss | (2 | ) | 42 | ||||
| Share-based payments | 7 | 16 | |||||
| Other income | (23 | ) | (1 | ) | |||
| Adjusted EBITDA | (243 | ) | (239 | ) | |||
"Working Capital" is used by management and the investment community to analyze the operating liquidity available to the Corporation. Working Capital is calculated based on current assets less current liabilities.
Working capital is derived from the statements of financial positions and is calculated as follows:
| As at | June 30, | December 31, | Increase (decrease) | |||||||||
| ($ Cdn thousands) - unaudited | 2024 | 2023 | in working capital | |||||||||
| | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 540 | 602 | (62 | ) | ||||||||
| Accounts receivable | 26 | 181 | (155 | ) | ||||||||
| Unbilled revenue | 517 | 106 | 411 | |||||||||
| Prepaid expenses | 5 | 2 | 3 | |||||||||
| Total current assets | 1,088 | 891 | 197 | |||||||||
| | | |||||||||||
| Current liabilities | ||||||||||||
| Accounts payable and accrued liabilities | 504 | 295 | 209 | |||||||||
| Secured prommisory note | 254 | - | 254 | |||||||||
| Deferred revenue | 499 | 393 | 106 | |||||||||
| Loan payable - current portion | 7 | 60 | (53 | ) | ||||||||
| Convertible debentures - current portion | 3,638 | 3,964 | (326 | ) | ||||||||
| Total current liabilities | 4,902 | 4,712 | 190 | |||||||||
| Working capital | (3,814 | ) | (3,821 | ) | 7 | | ||||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/221582
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