Newtopia Reports Fourth Quarter and Full Year 2020 Financial Results

Rhea-AI Summary

Newtopia Inc. (NEWUF) reported robust financial growth in its FY 2020 results, with revenues rising by 87% to $11.4 million and gross profit increasing 179% to $5.5 million. Q4 2020 alone saw revenues jump 61% and gross profit soar 751%. Newtopia expanded its partnerships with Fortune 500 clients and launched a program targeting Medicare Advantage populations, potentially saving up to $1,700 per member. Looking forward, Newtopia expects steady revenue in H1 2021, followed by growth in H2, despite delays in product rollouts due to COVID-19.

Positive

• Revenue growth of 87% in FY 2020 to $11.4 million.
• Q4 2020 gross profit surged 751% to $1.3 million, with a gross margin of 51%.
• Established a new partnership with a Fortune 500 apparel company with over 90,000 employees.
• Ongoing engagement and churn rates significantly improved, indicating strong client retention.

Negative

• Adjusted operating loss of $5.8 million for FY 2020, slightly higher than $5.5 million in 2019.
• Sales cycle shifted due to COVID-19, delaying product launches and new client initiatives.

• FY 2020 Revenue and Gross Profit increased 87% and 179%, respectively
• Q4 2020 Revenue and Gross Profit increased 61% and 751%, respectively
• Continued to strengthen robust business pipeline, while broadening multi-year partnerships with current Fortune 500 clients
• Launched new relationship with a Fortune 500 apparel and home fashion chain with over 90,000 employees

TORONTO, April 6, 2021 /PRNewswire/ - Newtopia Inc. ("Newtopia" or the "Company") (TSXV: NEWU), a tech-enabled habit change provider focused on disease prevention, today reported financial results for the fourth quarter and full year 2020. All amounts are expressed in Canadian dollars, unless otherwise noted.

Fourth Quarter 2020 Financial Highlights (vs. Q4 2019):

• Revenue increased 61% to $2.5 million
• Gross profit¹ increased 751% to $1.3 million
• Gross margin percentage improved to 51%, up from 10%

Full Year 2020 Financial Highlights (vs. 2019):

• Revenue increased 87% to $11.4 million
• Gross profit¹ increased 179% to $5.5 million
• Gross margin percentage improved to 48%, up from 32%

"2020 was a historic year not just for our company but also for the health of the global economy," said Jeff Ruby, Founder & CEO, Newtopia. "This past May, we brought Newtopia public through a direct listing right in the heart of the COVID-19 pandemic, and we did so with great success."

"For the year, revenue and gross profit improved 87% and 179%, respectively. Looking out over a longer time frame, on a compounded annual basis since the end of 2017, revenue has improved nearly 100%, while gross profit increased approximately 179%. Our engagement levels have risen as well, with 2020 participant engagement at record highs and participant churn rates half that of 2019. Ultimately, after a most challenging year, through the exceptional efforts of our entire team, Newtopia is very well positioned for continued growth in 2021. I am confident that our 'one size fits one model' focused on keeping people healthy and reducing the cost of care for health insurers will truly be a game changer for the healthcare industry," Mr. Ruby concluded.

_____________________

1 Gross profit is defined as revenue which is comprised of onboarding welcome revenue, ongoing engagement fees and success fees, less cost of sales which is comprised of welcome kit, compensation expense for Inspirators and care specialists and genetic testing costs. Gross profit is considered by management to be an integral measure of financial performance and represents the amount of revenues retained by the Company after incurring direct costs.  However, gross profit is not a recognized measure of profitability under IFRS.

Recent Operational Highlights:

• Launched Habit Change Provider Category in January for delivering workforce habit change at scale. Though in its early stages, the category launch has been very well received by existing and prospective clients who are attracted to the unique whole person care – physical, mental and emotional health outcomes – offered by the Company.
• Announced results of Santa Barbara Actuaries Inc. study commissioned by Newtopia, which demonstrates that the Company's programs can provide significant medical cost savings for Medicare Advantage (MA) populations of up to US$1,700 per MA member. This expands Newtopia's potential target base into the 65 years and older Medicare and Medicare Advantage population.
• Launched a new relationship with a recognized Fortune 500 apparel and home fashion chain employing over 90,000 people. Phase 1 – the first six months of the program – has begun with a portion of the employee workforce, with the opportunity to expand via additional phases and employees.
• Continued to expand relationship with Fortune 50 healthcare innovator with whom the Company launched in Q3 2020. Anticipate greater expansion with this client beginning in the second quarter of 2021.

"There is no question that the underlying Newtopia business remains strong, driven by COVID-19 macro trends that support the importance of health and prevention, a pipeline of new opportunities and a strong base of current clients with which to grow and expand our offerings," adds Mr. Ruby. "That said, as a result of the global pandemic, we have seen our sales cycle shift from a traditional fall cycle to the winter and the spring, which in turn has delayed certain product launches. Given this shift, we expect greater revenue from new product launches in the second half of this year. With fewer anticipated new product launches in the first two quarters of 2021, we will take this opportunity to upgrade our smart technology platform to improve business efficiencies as well as to enhance user experience. We look forward to continuing to share our progress over the coming quarters as we bring much needed change and cost savings to health insurers."

Newtopia's platform leverages genetic, social and behavioral insights to create individualized prevention programs with a focus on type 2 diabetes, heart disease, stroke and weight. The Company's whole person approach combines virtual care, digital tools, connected devices and actionable data science to assist in preventing, slowing and reversing chronic disease while also enriching mental and emotional health. Newtopia helps generate sustainable habit change for participants while maintaining clinical and financial outcomes for health insurers.

Fourth Quarter 2020 Financial Results

Revenue for the three months ended December 31, 2020 was $2.5 million, an increase of 61% as compared to $1.5 million in the prior-year period. The year-over-year growth in the quarter reflected a continuation of strong engagement fee revenue from the Q1 2020 product launch with a highly innovative existing Fortune 500 financial services partner.

Gross profit for the fourth quarter 2020 increased significantly by 751% to total $1.3 million, as compared to $0.15 million in the prior-year period. Gross profit is comprised of Newtopia's revenue less direct expenses, which include the cost of Welcome Kits sold to new participants as well as labour costs associated with hiring and training of the Company's coaching team of Inspirators. The lower mix of Welcome Kit sales and labour costs to engagement revenue in the three-month period ended December 31, 2020 as compared to the prior year resulted in an increased profit margin of 51% for the quarter, versus 10% for the fourth quarter of 2019. Engagement fee revenue made up approximately 80% of the revenue mix in the fourth quarter 2020, as compared to approximately 60% in the same period for 2019.

Adjusted operating expenses² in the three months ended December 31, 2020 increased by 42% to total $3.8 million, compared to $2.7 million in the prior-year period, as the Company continued to add technology, sales and marketing and administrative resources in support of longer term growth. For the quarter, the Company had an adjusted operating loss³ of $2.6 million, compared to an operating loss of $2.5 million in the prior-year period.

Full Year 2020 Financial Results

For the full year ended December 31, 2020, revenue totaled $11.4 million, an increase of 87% as compared to $6.1 million in the prior-year period. The year-over-year growth is attributed to an increase in participant enrollment from the launch of a newly incentivized health plan offered by a Fortune 500 financial services client in late December 2019. This new plan resulted in a surge in Welcome Kit and engagement revenues during the twelve months ended December 31, 2020.

Gross profit for the year increased by 179% to total $5.5 million, or 48% of revenue, as compared to $2.0 million, or 32% of revenue, in the prior year. Gross margins continue to improve as the Company increases efficiency with participants through the use of smart technology to engage activity and achieve longer-term clinical results.

Adjusted operating expenses² for the 12 months ended December 31, 2020 increased by 52% to total $11.3 million, compared to $7.4 million for 2019. For the year, the Company had an adjusted operating loss³ of $5.8 million, compared to an operating loss of $5.5 million for 2019.

Newtopia's audited financial statements and corresponding notes and management's discussion and analysis of financial condition and results of operations for the years ended December 31, 2019 and December 31, 2020, respectively, have been posted under Newtopia's profile on the SEDAR website at www.sedar.com. The financial information included in this news release is qualified in its entirety and should be read together with the audited financial statements and the notes for the years ended December 31, 2019 and December 31, 2020.

2021 Outlook

In the first quarter of each calendar year, Newtopia typically experiences higher rates of new product launches, with a corresponding increase in Welcome Kit and engagement revenues. As a result of the COVID-19 pandemic, the Company has experienced a delayed rollout of its products to some of its clients who are, for the time being, understandably focused on prioritizing the immediate health, safety and vaccination of their employees over the launch of new initiatives such as Newtopia's platform. As a result, unlike prior years, Newtopia anticipates revenue to hold relatively steady in the first half of 2021, with an increase in topline growth in the third and fourth quarters. While new product rollouts may be softer in the first-half of the year, the Company's multi-year contracts with its clients and overall underlying business is very healthy with record levels of engagement. The Company has also proactively added to its salesforce to bolster its new business pipeline.

Newtopia remains at the forefront of advancements in habit change technology within the virtual healthcare industry. With a new Chief Technology Officer onboard as of November 2020, Newtopia has focused on making a number of strategic technology investments to enhance the efficiency of its tech-enabled services and provide its client base with increased flexibility, improved user engagement and better leverage of its Inspirator team of coaches. The Company expects approximately $1.5 million of capital expenditures in 2021, with a very small portion of this spend already incurred in the fourth quarter of 2020. The remainder of this total will be capitalized over the course of 2021 and weighted toward the first three quarters of the year. This spend will be directed toward improving the efficiency of Newtopia's operations by leveraging new and improved engagement technologies to elevate the overall user experience. Newtopia continues to take a measured approach to adding expenses in support of growth, and increases in expenses have been more modest than the Company's growth in revenue and gross profit. As such, even with this increased capital expenditure in 2021, Newtopia is still targeting to exit the year cash flow neutral from operations.

____________________________

2 Adjusted operating expenses consist of all cash-based technology, sales and marketing and administrative expenses including employment expenses for these functions excluding equity-settled share-based compensation. Adjusted operating expense is not a measure of financial performance under IFRS and should not be considered a substitute for total operating expenses, which we believe to be the most directly comparable IFRS measure.

3 Adjusted Operating Loss consists of Gross profit less adjusted operating income. Adjusted operating loss is not a measure of financial performance under IFRS and should not be considered a substitute for Loss from Operations which we believe to be the most directly comparable IFRS measure.

Overall, Newtopia anticipates three key pillars of its growth longer term, including: 1) the expansion of existing self-insured employer client relationships; 2) the rollout of new self-insured employer clients, 3) and the entry into new public and private health insurer segments.

Grants of Stock Options

Newtopia further announced today that its Board of Directors has approved the grant of 280,000 stock options to certain tenured employees to Advisory Board members, consultants and newly hired employees.  The options issued to newly hired employees will expire 5 years from the date such employees complete their probationary period and the exercise price will be based on the closing price of Newtopia common shares on the trading day prior to the day they complete their probationary period. Options granted to Advisory Board members and tenured employees will be at an exercise price of $0.58 per common share and will expire on April 8, 2026, being five years from the grant date.

Newtopia can grant up to 18,114,870 stock options pursuant to its stock option plan, representing approximately 20% of the aggregate of the issued and outstanding common shares of the Company on the date the Company's common shares were listed for trading on the TSX Venture Exchange on May 4, 2020. Including the grants contemplated herein, Newtopia will have 15,841,685 stock options outstanding.  

About Newtopia

Newtopia is a tech-enabled habit change provider focused on disease prevention and reducing the cost of care for health insurers. As a provider of whole person care, we prevent, reverse and slow the progression of chronic disease while enriching mental health, resilience and overall human performance. Newtopia's programs leverage genetic, social and behavioral insights to create individualized prevention programs with a focus on type 2 diabetes, heart disease, stroke and weight. With a person-centered approach that combines virtual care, digital tools, connected devices and actionable data science, Newtopia delivers sustainable clinical and financial outcomes. Newtopia serves some of the largest nationwide employers and health plans and is currently listed on the Toronto Stock Exchange (TSXV: NEWU). To learn more, visit newtopia.com, Facebook, LinkedIn or Twitter.

Forward Looking Information

This press release contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable United States securities legislation (collectively, "forward-looking statements"), which reflects management's expectations regarding Newtopia's future growth, results from operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects and opportunities. Wherever possible, words such as "predicts", "projects", "targets", "plans", "expects", "does not expect", "budget", "scheduled", "estimates", "forecasts", "anticipate" or "does not anticipate", "believe", "intend" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative or grammatical variation or other variations thereof, or comparable terminology have been used to identify forward-looking statements. All statements other than statements of historical fact may be forward-looking ‎information. Such statements reflect Newtopia's current views and intentions with respect to future ‎events, based on information available to Newtopia, and are subject to certain risks, uncertainties and ‎assumptions, including without limitation, the Company's successful completion of its strategic technology projects (including on budget), continued and sustained high levels of client engagement and low client churn, the expansion of client relationships, the rollout of new clients, the conversion of pilot projects into full blown rollouts, the Company's ability to continue to grow its sales pipeline, the ability of Nearwater to deliver on the milestones set out in the consulting agreement, and current financial trends remaining at or above the current levels in respect of revenue, gross profit, gross margin percentage and adjusted operating expenses. Material factors or assumptions were applied in providing forward-looking information. While forward-looking statements are based on data, assumptions and analyses that Newtopia believes are reasonable under the circumstances, whether actual results, performance or developments will meet Newtopia's expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of Newtopia to differ materially from its expectations. 

These forward-looking statements include, among other things, clients continuing to offer Newtopia's platform pursuant to agreements entered into, the timing and ability of the Company to successfully complete strategic technology projects (including on budget), continued and sustained high levels of client engagement and low client churn, the expansion of client relationships, the rollout of new clients, the conversion of pilot projects into full blown rollouts, the Company's ability to continue to grow its sales pipeline, the ability of Nearwater to deliver on the milestones set out in the consulting agreement, the Company being confident that it will continue to increase its revenue, gross profit, gross margin percentage and adjusted operating expenses among other financial metrics and current financial trends remaining at or above current levels. Forward-looking statements are not a guarantee and are based on a number of estimates and assumptions management believes to be relevant and reasonable, whether actual results, performance or developments will meet Newtopia's expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of Newtopia to differ materially from its expectations. Certain of the "risk factors" that could cause ‎actual results to differ materially from Newtopia's forward-looking statements in this press release ‎include, without limitation: the termination of contracts by clients, risks related to COVID-19 including various recommendations, orders and measures of ‎‎governmental authorities to try to limit the pandemic, including travel restrictions, border closures, ‎‎non-essential business closures, quarantines, self-isolations, shelters-in-place and social ‎distancing, ‎disruptions to markets, economic activity, financing, supply chains and sales channels, ‎and a ‎deterioration of general economic conditions including a possible national or global ‎recession; and other general economic, market and business conditions and factors, including the risk factors discussed or referred to in Newtopia's disclosure documents, filed with the securities ‎regulatory authorities in certain provinces of Canada and available at www.sedar.com including Newtopia's final long form prospectus dated March 30, 2020.

Should any factor affect Newtopia's in an unexpected manner, or should assumptions underlying the forward- looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Newtopia does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release, and Newtopia undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

Non-GAAP Financial Measures

The Company's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). Management uses certain non-GAAP measures, which are defined in the appropriate sections of this press release, to better assess the Company's underlying performance. These measures are reviewed regularly by management and the Company's Board of Directors in assessing the Company's performance and in making decisions about ongoing operations. In addition, we use certain non-GAAP measures to determine the components of management compensation. We believe that these measures are also used by investors as an indicator of the Company's operating performance. Readers are cautioned that these terms are not recognized GAAP measures and do not have a standardized GAAP meaning under IFRS and should not be construed as alternatives to IFRS terms, such as net income.

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

NEWTOPIA INC.

Key Financial Measures and Schedule of Non-GAAP Reconciliations

Gross Profit Information [1]
	Three Months Ended December 31,				Years Ended December 31,
	2020		2019		2020		2019
	$		$		$		$
Revenue	2,476,904		1,537,685		11,416,319		6,109,282
Cost of sales	(1,215,148)		(1,389,509)		(5,913,724)		(4,138,939)
Gross profit	1,261,756		148,176		5,502,595		1,970,343
Gross margin	51%		10%		48%		32%

 

Reconciliation of Total Operating Expenses to Adjusted Operating Expenses [2]
	Three Months Ended December 31,				Years Ended December 31,
	2020		2019		2020		2019
	$		$		$		$
Total operating expenses	4,190,148		4,227,448		13,234,441		12,110,933
Add (Subtract)
Share-based compensation	(395,043)		(1,460,206)		(771,662)		(2,024,780)
Depreciation of property and equipment	(18,393)		(19,041)		(80,298)		(56,437)
Depreciation of right-of-use asset	(46,189)		(46,190)		(184,767)		(184,766)
Interest and accretion expense	-		(477,504)		(233,542)		(2,640,030)
Interest on lease obligations	(33,358)		(38,775)		(143,325)		(158,642)
Finance charges	(2,005)		(6,724)		(13,000)		(6,724)
Foreign exchange loss/(gain)	(56,679)		(42,602)		34		(42,244)
Change in value of convertible debenture derivative liabilities	-		140,178		(448,656)		54,081
Gain on extinguishment of convertible debentures	-		408,778		-		408,778
Loss on settlement of debt	-		-		(167,716)		-
Change in value of derivative liability	194,966		6,637		131,162		(21,237)
Adjusted operating expenses	3,833,447		2,691,999		11,322,671		7,438,932

NEWTOPIA INC.

Adjusted Operating Loss [3]
	Three Months Ended December 31,				Years Ended December 31,
	2020		2019		2020		2019
	$		$		$		$
Gross profit	1,261,756		148,176		5,502,595		1,970,343
Adjusted operating expenses	(3,833,447)		(2,691,999)		(11,322,671)		(7,438,932)
	(2,721,691)		(2,543,823)		(5,820,076)		(5,468,589)

NEWTOPIA INC.
Statements of Financial Position
As at December 31, 2020 and 2019
(Expressed in Canadian Dollars)

	2020	2019
	$	$
Assets
Current assets
Cash	4,673,683	2,386,341
Trade and other receivables	1,067,123	1,247,858
Unbilled revenue	426,000	–
Prepaid expenses and deposits	465,285	462,605
Inventories	278,696	604,920
Deferred costs	232,089	–
	7,142,876	4,701,724
Property and equipment	129,913	186,376
Right–of–use asset	554,305	739,072
Intangible asset	68,948	–
	7,896,042	5,627,172
Liabilities
Current liabilities
Trade and other payables	2,765,583	2,254,894
Lease obligations	215,532	156,340
Convertible debentures	–	3,993,758
Convertible debentures derivative liabilities	–	1,952,638
Retractable preferred shares	–	7,420,265
Derivative liability	47,508	178,670
	3,028,623	15,956,565
Non–current lease obligations	667,558	883,090
	3,696,181	16,839,655
Equity/Deficit
Common shares	44,648,952	4,643,945
Common shares to be issued	528,168	–
Preferred shares	–	13,011,033
Special Warrants	–	9,164,731
Contributed surplus	10,046,621	5,172,192
Deficit	(51,023,880)	(43,204,384)
	4,199,861	(11,212,483)
	7,896,042	5,627,172

NEWTOPIA INC.
Statements of Loss and Comprehensive Loss
Years Ended December 31, 2020 and 2019
(Expressed in Canadian Dollars)

	2020	2019
	$	$
Revenue	11,416,319	6,109,282
Cost of sales	5,913,724	4,138,939
Gross profit	5,502,595	1,970,343
Operating expenses
Technology and development	3,439,845	2,512,631
Sales and marketing	3,528,912	1,709,794
Administrative	4,353,914	3,216,507
Share–based compensation	771,662	2,024,780
	12,094,333	9,463,712
Other expenses (income)
Depreciation of property and equipment	80,298	56,437
Depreciation of right–of–use asset	184,767	184,766
Interest and accretion expense	233,542	2,640,030
Interest on lease obligations	143,325	158,642
Finance charges	13,000	6,724
Foreign exchange (gain)/loss	(34)	42,244
Change in value of convertible debenture derivative liabilities	448,656	(54,081)
Gain on extinguishment of convertible debentures	–	(408,778)
Loss on settlement of debt	167,716	–
Change in value of derivative liability	(131,162)	21,237
	1,140,108	2,647,221
Net loss and comprehensive loss	(7,731,846)	(10,140,590)
Loss per share
Basic and diluted loss per share	(0.12)	(0.65)
Weighted average number of common shares outstanding
Basic and diluted	66,942,270	15,535,919

NEWTOPIA INC.
Statements of Changes in Equity (Deficit)
Years Ended December 31, 2020 and 2019
(Expressed in Canadian Dollars)

		Common Shares	Shares To Be Issued	Preferred Shares	Special Warrants	Contributed Surplus	Deficit	Total
		$	$	$	$	$	$	$
Balance, January 1, 2019		4,643,945	–	13,011,033	–	2,701,639	(32,799,372)	(12,442,755)
Net loss and comprehensive loss		–	–	–	–	–	(10,140,590)	(10,140,590)
Share–based compensation		–	–	–	–	2,024,780	–	2,024,780
Modification of warrants		–	–	–	–	264,422	(264,422)	–
Issuance of Special Warrants, net of cash issuance costs		–	–	–	9,346,082	–	–	9,346,082
Special Broker Warrants issued		–	–	–	(181,351)	181,351	–	–
Balance, December 31, 2019		4,643,945	–	13,011,033	9,164,731	5,172,192	(43,204,384)	(11,212,483)
Net loss and comprehensive loss		–	–	–	–	–	(7,731,846)	(7,731,846)
Share–based compensation		–	–	–	–	771,662	–	771,662
Conversion of Convertible Debentures		6,039,000	–	–	–	589,594	–	6,628,594
Modification of Unit warrants issued on the conversion of Convertible Debentures		–	–	–	–	42,787	(42,787)	–
Conversion of retractable preferred shares		7,420,265	–	–	–	–	–	7,420,265
Conversion of preferred shares		13,011,033	–	(13,011,033)	–	–	–	–
Conversion of Special warrants		6,812,648	–	–	(9,164,731)	2,352,083	–	–
Modification of Warrants issued on the conversion of Special Warrants		–	–	–	–	44,863	(44,863)	–
Settlement of debt		–	528,168	–	–	85,446	–	613,614
Exercise of warrants		1,229,353	–	–	–	(352,581)	–	876,772
Private placement offering		5,696,835	–	–	–	1,052,134	–	6,748,969
Private placement compensation options		(204,127)	–	–	–	204,127	–	–
Warrants issued to Lender		–	–	–	–	84,314	–	84,314
Balance, December 31, 2020		44,648,952	528,168	–	–	10,046,621	(51,023,880)	4,199,861

NEWTOPIA INC.
Statements of Cash Flows
Years Ended December 31, 2020 and 2019
(Expressed in Canadian Dollars)

	2020	2019
	$	$
Cash flows used in operating activities
Net loss and comprehensive loss	(7,731,846)	(10,140,590)
Depreciation of property and equipment	80,298	56,437
Depreciation of right–of–use asset	184,767	184,766
Amortization of deferred finance charges	13,000	–
Interest and accretion expense	233,542	2,640,030
Interest on lease obligations	143,325	158,642
Change in value of convertible debenture derivative liabilities	448,656	(54,081)
Change in value of derivative liability	(131,162)	21,237
Share–based compensation	771,662	2,024,780
Gain on extinguishment of convertible debentures	–	(408,778)
Loss on settlement of debt	167,716	–
	(5,820,042)	(5,517,557)
Change in non–cash working capital
Trade and other receivables	180,735	(655,067)
Unbilled revenue	(426,000)	–
Prepaid expenses and deposits	(2,680)	(204,313)
Inventories	326,224	(205,547)
Trade and other payables	956,587	1,050,840
	(4,785,176)	(5,531,644)
Cash flows used in investing activities
Purchase of property, equipment and intangible asset	(92,783)	(163,389)
	(92,783)	(163,389)
Cash flows from financing activities:
Credit facility financing costs	(160,775)	–
Repayment of convertible debentures	–	(160,500)
Repayment of lease obligation	(299,665)	(203,606)
Proceeds from private placement offering, net of share issuance costs	6,748,969	–
Proceeds from exercise of warrants	876,772	–
Proceeds from issuance of Special Warrants, net of issuance costs and settlement of Debentures	–	7,016,922
	7,165,301	6,652,816
Net change in cash during the year	2,287,342	957,783
Cash, beginning of year	2,386,341	1,428,558
Cash, end of year	4,673,683	2,386,341

 

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SOURCE Newtopia Inc.

FAQ

What were Newtopia's financial results for Q4 2020?

Newtopia reported a revenue increase of 61% to $2.5 million and a gross profit increase of 751% to $1.3 million.

How did Newtopia perform in FY 2020?

In FY 2020, Newtopia's revenue rose by 87% to $11.4 million with a gross profit increase of 179%.

What is Newtopia's guidance for 2021?

Newtopia anticipates steady revenue in the first half of 2021, with growth expected in the second half due to delayed product rollouts.

What are the major partnerships Newtopia announced?

Newtopia launched a new partnership with a Fortune 500 apparel chain and expanded relationships with existing Fortune 500 clients.

What challenges did Newtopia face due to the COVID-19 pandemic?

The company experienced a shift in the sales cycle, delaying product launches and affecting client initiatives.