Katipult Releases 2024 Q3 Results and Provides Corporate Updates
Katipult Technology Corp. (TSXV: FUND) reported its Q3 2024 financial results, showing significant changes in key metrics. Subscription revenue decreased 68.3% to $218,000 from $688,000 in Q3 2023, primarily due to a one-time adjustment in enterprise client terms. Gross Profit Percentage declined to 56.9% from 84.0% year-over-year. While Adjusted EBITDA losses widened to ($477,000) from ($164,000), the company reported net income of $419,000 compared to a net loss of ($195,000) in Q3 2023. The company maintains $0.6 million in cash but faces working capital deficit of ($3.2 million), raising concerns about its ability to continue as a going concern.
Katipult Technology Corp. (TSXV: FUND) ha riportato i risultati finanziari del terzo trimestre 2024, mostrando significativi cambiamenti nei principali indicatori. I ricavi da abbonamento sono diminuiti del 68,3% a $218.000 rispetto ai $688.000 del terzo trimestre 2023, principalmente a causa di un adeguamento una tantum nei termini dei clienti aziendali. La percentuale di profitto lordo è scesa al 56,9% dall'84,0% su base annua. Pur aumentando le perdite dell'EBITDA rettificato a ($477.000) rispetto a ($164.000), l'azienda ha registrato un reddito netto di $419.000 rispetto a una perdita netta di ($195.000) nel terzo trimestre 2023. L'azienda mantiene $0,6 milioni in contante, ma deve affrontare un deficit di capitale circolante di ($3,2 milioni), sollevando preoccupazioni sulla sua capacità di continuare come entità operante.
Katipult Technology Corp. (TSXV: FUND) reportó sus resultados financieros del tercer trimestre de 2024, mostrando cambios significativos en métricas clave. Los ingresos por suscripción disminuyeron un 68.3% a $218,000 desde $688,000 en el tercer trimestre de 2023, principalmente debido a un ajuste único en los términos de los clientes empresariales. El porcentaje de ganancia bruta cayó al 56.9% desde el 84.0% en comparación con el año anterior. Aunque las pérdidas ajustadas de EBITDA se ampliaron a ($477,000) desde ($164,000), la empresa reportó un ingreso neto de $419,000 en comparación con una pérdida neta de ($195,000) en el tercer trimestre de 2023. La empresa mantiene $0.6 millones en efectivo, pero enfrenta un déficit de capital de trabajo de ($3.2 millones), lo que genera preocupaciones sobre su capacidad para continuar como una entidad en funcionamiento.
Katipult Technology Corp. (TSXV: FUND)는 2024년 3분기 재무 실적을 발표하며 주요 지표에서 상당한 변화를 나타냈습니다. 구독 수익은 2023년 3분기의 $688,000에서 $218,000으로 68.3% 감소했으며, 이는 주로 기업 고객 약정의 일회성 조정 때문입니다. 총 이익률은 전년 대비 84.0%에서 56.9%로 하락했습니다. 조정된 EBITDA 손실은 ($164,000)에서 ($477,000)로 확대되었으나, 회사는 2023년 3분기 ($195,000)의 순손실과 비교하여 $419,000의 순이익을 보고했습니다. 회사는 현금으로 $0.6 백만을 유지하고 있지만, ($3.2 백만)의 운전 자본 부족에 직면하고 있어 지속 운영 능력에 대한 우려를 불러일으킵니다.
Katipult Technology Corp. (TSXV: FUND) a publié ses résultats financiers pour le troisième trimestre 2024, montrant des changements significatifs dans les indicateurs clés. Les revenus d'abonnement ont diminué de 68,3 % pour atteindre 218 000 $ contre 688 000 $ au troisième trimestre 2023, principalement en raison d'un ajustement unique dans les conditions des clients entreprises. Le pourcentage de bénéfice brut a chuté à 56,9 % contre 84,0 % d'une année sur l'autre. Bien que les pertes ajustées de l'EBITDA se soient élargies à (477 000 $) contre (164 000 $), l'entreprise a enregistré un revenu net de 419 000 $ par rapport à une perte nette de (195 000 $) au troisième trimestre 2023. L'entreprise maintient 0,6 million de dollars en liquidités mais fait face à un déficit de fonds de roulement de (3,2 millions de dollars), soulevant des inquiétudes quant à sa capacité à continuer d'opérer.
Katipult Technology Corp. (TSXV: FUND) hat die Finanzzahlen für das dritte Quartal 2024 veröffentlicht, die erhebliche Änderungen bei den Kennzahlen zeigen. Die Abonnement-Einnahmen sanken um 68,3 % auf $218.000 von $688.000 im dritten Quartal 2023, hauptsächlich aufgrund einer einmaligen Anpassung der Bedingungen für Unternehmenskunden. Die Bruttogewinnmarge fiel im Jahresvergleich von 84,0 % auf 56,9 %. Während sich die operativen Verluste des bereinigten EBITDA auf ($477.000) von ($164.000) ausgeweitet haben, berichtete das Unternehmen einen Nettogewinn von $419.000 im Vergleich zu einem Nettoverlust von ($195.000) im dritten Quartal 2023. Das Unternehmen hält $0,6 Millionen in bar, sieht sich jedoch einem Working-Capital-Defizit von ($3,2 Millionen) gegenüber, was Bedenken über die Fortführungsfähigkeit aufwirft.
- Net income improved to $419,000 from a loss of ($195,000) in Q3 2023
- Subscription revenue declined 68.3% to $218,000 from $688,000 in Q3 2023
- Gross Profit Percentage decreased to 56.9% from 84.0% year-over-year
- Adjusted EBITDA losses widened to ($477,000) from ($164,000)
- Working capital deficit of ($3.2 million)
- Going concern warning issued due to continued operating losses
- Unable to generate sufficient sales volumes for positive operating cash flows
Calgary, Alberta--(Newsfile Corp. - November 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 September 30, 2024.
The following provides a summary of the results for the third quarter of 2024. The full results and related management discussion and analysis are available on the Corporation's SEDAR+ profile (www.sedarplus.ca).
Q3 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 September 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; however, 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.
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 equity and debt financings 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. 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 September 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 September 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 September 30, | |||
| ($ thousands) | 2024 | 2023 | |
| Net income (loss) | 419 | (195) | |
| Plus: | |||
| Finance costs | 172 | 211 | |
| Unrealized gain on convertible debentures | (1,075) | (193) | |
| Foreign exchange loss (gain) | 3 | (2) | |
| Share-based payments | 5 | 14 | |
| Other income and expenses | (1) | 1 | |
| Adjusted EBITDA | (477) | (164) |
"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 | September 30, | December 31, | Increase (decrease) | |||
| ($ Cdn thousands) - unaudited | 2024 | 2023 | in working capital | |||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 565 | 602 | (37) | |||
| Accounts receivable | 26 | 181 | (155) | |||
| Unbilled revenue | - | 106 | (106) | |||
| Prepaid expenses | 4 | 2 | 2 | |||
| Total current assets | 595 | 891 | (296) | |||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | 573 | 295 | 278 | |||
| Deferred revenue | 427 | 393 | 34 | |||
| Loan payable - current portion | 7 | 60 | (53) | |||
| Convertible debentures - current portion | 2,823 | 3,964 | (1,141) | |||
| Total current liabilities | 3,830 | 4,712 | (882) | |||
| Working capital | (3,235) | (3,821) | 586 | |||
For further information: Katipult Technology Corp., Beth Shaw, CEO, bshaw@katipult.com, +1(416) 400-9570.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/231971
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