EdgeTI Reports Full Year and Q4 2023 Results

Rhea-AI Summary

Edge Total Intelligence Inc. (TSXV: CTRL, OTCQB: UNFYF) reported its audited financial results for Q4 and full year 2023. The company reduced its liabilities by 48% to $6.19 million from $11.85 million in 2022. Q4 revenue increased by 29% to $971,419, while full-year revenue rose 7% to $3.82 million. Operating expenses and cost of goods sold in Q4 decreased by 50% to $2.52 million. Net and comprehensive income improved by 126% in Q4, with a net income of $1.36 million compared to a loss of $4.49 million in Q4 2022. For the full year, the net loss decreased by 81% to $986,126. Significant achievements in 2023 include key strategic partnerships, industry recognitions, and a successful debt restructure which converted $5.27 million in debt to 9 million common shares.

Positive

• Liabilities reduced by 48% to $6.19 million.
• Q4 revenue increased by 29% to $971,419.
• Full-year revenue rose 7% to $3.82 million.
• Operating expenses and cost of goods sold decreased by 50% in Q4.
• Net and comprehensive income improved by 126% in Q4.
• Net loss for the year decreased by 81% to $986,126.
• Successful debt restructure converting $5.27 million in debt to equity.
• Strategic partnerships and industry recognitions.
• New market segment entry with Idaho Environmental Coalition.
• Five-year contract extension with the US Department of Veterans Affairs valued at $4.7 million.

Negative

• None.

Arlington, Virginia--(Newsfile Corp. - June 24, 2024) - Edge Total Intelligence Inc. (TSXV: CTRL) (OTCQB: UNFYF) (FSE: Q5i) ("edgeTI", "Edge Technologies", "Company"), the provider of edgeCore™, a leading real-time digital twin platform, announces its audited financial results for the three months and year ended December 31, 2023.

"2023 was a demanding year for our Company as our employees and board stayed focused on reducing debt, decreasing costs, and driving growth," said Jim Barrett, CEO of edgeTI. "We achieved results in all three areas."

All financial amounts in this release are posted in US Dollars unless otherwise stated as are the Consolidated Financial Statements and Management's Discussion and Analysis on SEDAR+ https://www.sedarplus.ca/.

2023 Year-End Financial Highlights

• Liabilities were reduced by 48% to $6,186,658 at twelve months ended December 31, 2023 versus $11,851,501 at the end of 2022.

• Fourth quarter 2023 revenue increased 29% to $971,419 for last three months of 2023 from $754,775 in Q4-2022 while twelve-months ended revenue increased 7% in 2023 to achieve $3,815,552 compared with $3,570,579 in 2022.

• Fourth quarter 2023 operating expense and cost of goods sold combined decreased 50% to $2,522,161 versus $5,011,858 during the same period in 2022 while operating expense and cost of goods throughout 2023 decreased 33% to $6,766,648 compared with $10,145,442 in 2022.

• Net and comprehensive income/(loss) improved 126% in the fourth quarter of 2023 with income of $1,364,920 versus a loss of $(4,493,037) in the prior year. Net and comprehensive loss over the entirety of 2023 resulted in an 81% decrease in loss to arrive at a loss of $986,126 in 2023 versus a loss of $6,194,329 in 2022.

2023 Year-End Achievements:

• In January of 2023, the Company secured a three-year renewal from human capital management leader and its use of edgeCore™ platform as they modernize information technology (IT) operations.

• In January of 2023, the Company opened a new market segment with Idaho Environmental Coalition who is utilizing edgeCore platform to track and guide progress on the multiple projects tied to the U.S. Department of Energy's Idaho National Lab.

• In January 2023, edgeTI completed the restructure of the Company's debts and in March 2023 negotiated an increased credit line and a convert-to-share option on the Company's Credit Facility, which later converted $5.27 million in debt to 9 million common shares in October 2023 - nearly reducing the Company's debt in half.

• In February 2023, edgeTI demonstrated new capabilities to infuse AI into operations workflows via ChatGPT, a generative AI as part of the Company's commitment to operationalize AI.

• By March 2023, the Company received multiple industry analyst recognitions from CB Insights comparing the company to Palantir. Gartner included EdgeTI in its Emerging Tech Impact Radar for 2023 and Market Guide for Technologies Enabling Digital Twin of an Organization

• In April 2023, the Company announced the general availability of its edgeCore™ platform 4.5 to empower its customers to rapidly compose and deploy secure, action-embedded (composable) apps that deliver the right information to the right people on the right device at the speed of relevance.

• In May 2023, edgeTI formed a strategic partnership with Grokstream, LLC ("Grokstream"), a leader in artificial intelligence for IT operations (AIOps). The strategic partnership leverages edgeTI's edgeCore™ platform to: a) expand integrations with enterprise IT management applications, b) orchestrate automation and workflow engines, and c) drive greater user acceptance through intuitive user experiences. The partnership is expected to increase edgeCore use throughout the Grokstream customer base.

• In June 2023, the Company announced that its shares began trading on the OTCQB Venture Market under the symbol "UNFYF" became eligible to be electronically cleared and settled in the United States through the Depository Trust Company ("DTC") - making the Company's stock more accessible to U.S. retail and institutional investors.

• In July 2023, the United States Department of Veterans Affairs selected the Company for a five-year contract extension to visualize and empower pharmacy monitoring automation valued at near $4.7 Million.

• At the AGM on August 23, 2023, the shareholders elected three new independent board members - establishing an independent board majority.

• In September 2023, the Company expanded into the energy sector with a partnership with energy AI Leader, Algo8, who optimizes digital plant and asset operations seamlessly at scale.

• In October 2023, the Exchange approved the debt for shares transaction that converted $5.27 million in debt to 9 million common shares.

• Throughout the year, edgeTI's Chief Revenue Officer, Jacques Jarman, was selected to present several talks at government innovation conferences in Augusta Georgia, National Harbor Maryland, Honolulu Hawaii on the merits of Digital Twins, Data Mesh, and Composable Apps. Each of these engagements presented Jacques Jarman as a leading expert in these topics and edgeTI as the solution to global challenges.

"By restructuring our debts and embracing strategic partners, we have established the necessary foundation to begin to capitalize on the many unique opportunities in digital twins and operationalizing AI solutions," said Jim Barrett, CEO.

Complete audited Consolidated Financial Statements and associated Management's Discussion and Analysis for Edge Total Intelligence inc. are available under SEDAR+ (https://www.sedarplus.ca) and OTC (https://otcmarkets.com).

About edgeTI

edgeTI helps customers sustain situational awareness and accelerate action with its real-time digital operations software, edgeCore™ that unites multiple software applicates and data sources into one immersive experience called a Digital Twin. Global enterprises, service providers, and governments are more profitable when insight and action are united to deliver fluid journeys via the platform's low-code development capability and composable operations. With edgeCore, customers can improve their margins and agility by rapidly transforming siloed systems and data across continuously evolving situations in business, technology, and cross-domain operations - helping them achieve the impossible.

Website: https://edgeti.com
LinkedIn: www.linkedin.com/company/edgeti
YouTube: www.youtube.com/user/edgetechnologies

For more information, please contact:

Nick Brigman, Analyst and Press Relations
Phone: 888-771-3343
Email: ir@edgeti.com

Forward-Looking Information and Statements

Certain statements in this news release are forward-looking statements or information for the purposes of applicable Canadian and US securities law. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company.

Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include the continued availability of capital and financing, the impact of viruses and diseases on the Company's ability to operate, competition and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/214266

FAQ

What were the Q4 2023 financial results for Edge Total Intelligence (UNFYF)?

Edge Total Intelligence reported a 29% increase in Q4 revenue to $971,419 and a 126% improvement in net and comprehensive income to $1.36 million.

How did Edge Total Intelligence (UNFYF) perform financially in 2023?

For 2023, Edge Total Intelligence saw a 7% increase in revenue to $3.82 million and an 81% reduction in net loss to $986,126.

What were the key financial achievements of Edge Total Intelligence (UNFYF) in 2023?

Key financial achievements include reducing liabilities by 48%, increasing Q4 revenue by 29%, and decreasing the net loss by 81% for the full year.

How did Edge Total Intelligence (UNFYF) manage its debt in 2023?

Edge Total Intelligence restructured its debt, converting $5.27 million into 9 million common shares, significantly reducing its liabilities.

What are the strategic partnerships Edge Total Intelligence (UNFYF) formed in 2023?

In 2023, Edge Total Intelligence formed partnerships with Grokstream and Algo8 and secured a five-year contract extension with the US Department of Veterans Affairs.