Victory Square Technologies Inc. (“Victory Square” or the
“Company”) (CSE:VST) (OTC:VSQTF) (FWB:6F6), a company that gives
investor access to a portfolio of 25+ innovative companies from
around the world in a single stock, announces it has filed its
condensed interim consolidated financial statements and Interim
Management Discussion and Analysis (MD&A) for the three- and
six-month period ended June 30, 2023.
Company:
Victory Square is a Venture Builder that provides
investors a liquid way to invest in early-stage technology
companies without buying a venture fund that requires accredited
investor status or multi-year commitments.
- A diverse portfolio of 25+ innovative companies from around the
world (founders come from: Ireland, Sri Lanka, Bulgaria, Australia,
India, Brazil, the Middle East and North America)
- Sectors include: Digital Health, Artificial Intelligence (AI),
Machine Learning (ML), Blockchain, Virtual & Augmented Reality
(VR/AR), Gaming, Climate Tech
- Owner-operated (approx. 15% Management Ownership)
Business Model:
The Victory Square business model is to buy, build
and invest in early stage tech companies. We spend upwards of 48
months with those companies until they're ready to spin-off or
stand on their own. There are a couple of unique elements to our
business model…
- We have unparalleled access to startups through our internal
incubator and International network with over 250+ founders,
investors, tech accelerators and venture capital firms from more
than 60 countries.
- Second, our management team and advisors are actively involved
in our investments from incubation through monetization, providing
them with financial, operational, and strategic support to scale
globally.
- We drive value by monetizing investments and reinvesting the
gains in new innovations. The strategy was to build a
self-sustaining business.
Financial Highlights for the three- and
six-month period ended June 30, 2023:
Revenue
Revenue for the three- and six-month period ended
June 30, 2023, was $2,638,892 and $5,516,217 compared to $1,214,783
and $2,231,880 for the comparative periods.
Cost of Goods Sold
Cost of goods sold for the three and six months
ended June 30, 2023, was $1,578,314 and $2,948,453 compared to
$577,921 and $1,020,878 for the comparative periods.
Gross Margin
The gross margin for the three and six months
ended June 30, 2023, was $1,060,578 and $2,567,764 compared to
$636,862 and $1,211,002 for the corresponding comparative
periods.
Cash & liquid securities approx.
$4,937,216.84
Unaudited NAV of approximately $78,681,041
as at June 30, 2023 (see Use of Non-GAAP Financial
Measures)
“The KPIs that we track more closely for Victory
Square are: Cash Invested, Net Asset Value (NAV), Return on
Invested Cash, Share Price/Market Cap vs Index Benchmark, Operating
costs as a % of NAV. Since 2017, we’ve evaluated over 1000
companies & startup ideas, of which 25 have made the cut. We’ve
invested $13M, and the value of the portfolio sits at $79M. It has
grown from $4M in 2017 to approximately $79M today. And, our goal
is to continue to grow our NAV going forward,” Shafin Diamond
Tejani, CEO of Victory Square.
The company trades at an approx. 82% discount to
its current estimated NAV.
This update is made based on Victory Square’s
established practice of releasing NAV as part of the Company’s
ongoing response to shareholder interest in receiving periodic
information. NAV is calculated based on the latest audited
valuations, third party pricing agency valuations as well as
unaudited management review valuations (based on comparables in the
market) as at June 30th, 2023.
The Company’s consolidated financial statements
for the three- and six-month period ended June 30, 2023 along with
its Management Discussion and Analysis (MD&A) are available
under the Company’s profile on SEDAR (www.sedar.com).
Notable Portfolio Highlight: Hydreight
Technologies Inc.
VST ownership in Hydreight Technologies approx.
72% as at June 30, 2023.
Hydreight (TSXV: NURS)(FSE: SO6)(OTCQB: HYDTF) is
a telehealth platform that enables flexible home healthcare,
bridging the gap between providers and patients when it comes to
compliance and patient convenience. Our platform also empowers
nurses, med spa technicians, and other licensed healthcare
professionals to deliver services independently, on their own terms
and with a flexible schedule, while also having the option to add
mobile services to existing location-based operations. Through the
app, individuals can schedule services with healthcare
professionals to their home, office, hotel, or other places.
Hydreight facilitates medical director oversight, liability
insurance, competitively priced prescriptions via a 503B licensed
pharmacy, and more. The platform is easy to use and includes a
built-in suite of fully integrated tools for accounting,
documentation, sales, inventory, booking, managing patient data,
and more, which makes it possible to deliver mobile medicine across
50 US states.
Hydreight is Positioned for Growth: Through its
app, Hydreight has created an infrastructure that enables nurses to
provide services outside of a hospital and other brick-and-mortar
facilities. Through Hydreight’s affiliated medical practices,
nurses who are also existing app users will gain exclusive access
to benefits that they typically would be unable to obtain
independently in many jurisdictions throughout the United States (a
qualified medical director and physicians who are licensed to
practice medicine in every state, pharmacy procurement, and
professional liability insurance). Nurses or other healthcare
providers can use the Hydreight platform to provide at-home
offerings to patients.
Hydreight’s performance for the second quarter of
2023 has seen a significant increase across all revenue streams
compared to the same period in the prior year:
- Total top-line non-GAAP Adjusted Revenue for Q2 2023 increased
130% over Q2 2022, reaching C$4,416,1031
- Total revenue of C$2,699,668 for Q2 2023 increased 225% over Q2
2022
- Total top-line non-GAAP Adjusted Revenue for the six months
ended June 30, 2023 increased 148% over the six months ended June
30, 2022, reaching C$8,083,5241
- Total revenue of C$5,048,084 for the six months ended June 30,
2023, increased 250% over the six months ended June 30, 2022
Hydreight believes the following Non-GAAP1
financial measures provide meaningful insight to aid in the
understanding of the Company’s performance and may assist in the
evaluation of the Company’s business relative to that of its
peers:
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
2023 |
|
|
2022 |
% change |
|
|
2023 |
|
|
2022 |
% change |
Adjusted Revenue |
$ |
4,416,103 |
|
$ |
1,922,339 |
130% |
|
$ |
8,083,524 |
|
$ |
3,262,157 |
148% |
Deduct – deferred business partner contract revenue |
|
190,934 |
|
|
465,421 |
|
|
|
171,886 |
|
|
539,963 |
|
Deduct – business partner payouts on app service gross revenue |
|
1,525,501 |
|
|
626,849 |
|
|
|
2,863,554 |
|
|
1,278,391 |
|
GAAP Revenue |
$ |
2,699,668 |
|
$ |
830,069 |
225% |
|
$ |
5,048,084 |
|
$ |
1,443,803 |
250% |
|
|
|
|
|
|
|
|
|
Adjusted Gross Margin |
$ |
1,270,762 |
|
$ |
884,797 |
44% |
|
$ |
2,294,147 |
|
$ |
1,215,517 |
89% |
Deduct – deferred business partner contract revenue |
|
190,934 |
|
|
465,421 |
|
|
|
171,886 |
|
|
539,963 |
|
Deduct – inventory impairment |
|
– |
|
|
– |
|
|
|
– |
|
|
– |
|
GAAP Gross Margin |
$ |
1,079,828 |
|
$ |
419,376 |
157% |
|
$ |
2,122,261 |
|
$ |
675,554 |
214% |
|
|
|
|
|
|
|
|
|
Hydreight achieved revenue of C$2,699,668 and
C$5,048,084 for the three and six months ended June 30, 2023, and
recognized a net loss of C$471,890 and C$594,194 over the same
periods. Included in total operating expenses of C$2,614,934 over
the first half of 2023 are significant expenditures in
professional, legal, and technical consulting fees invested to
position the Company to compete with the largest companies, private
and public, in the heavily regulated healthcare industry in the
United States.
Hydreight completed several key improvements from
January 1 to June 30, 2023, that played a pivotal role in the
growth throughout 2023 thus far:
- The platform attracted 185 new sign ups from service providers
in Quarter 1, 2023.
- Expanded their offering networks to 437 new cities from Jan
1st, 2022, to March 31st, 2023.
- The Hydreight App received a significant update to empower
providers on the platform to take greater control of their service
offering, while also offering better in-app training, performance,
usability, reporting, and more.
- Secured major partnerships with pharmaceutical partners
including Medline, McKesson, Empower, Anazao, Olympia, Merz,
Galderma, among others as well as various national lab partners, to
ensure consistent supply as well as preferred pricing on products
and medications.
Numbers are approximate and provided by Hydreight
Management
Recent Investor Webinars:
Victory Square Technologies Investor Q&A
Webinar with CEO Shafin Tejani Victory Square Technologies
Portfolio Company Hydreight Investor Q&A Victory Square
Technologies Portfolio Company Stardust Solar Investor Q&A
Victory Square Technologies Investor Q&A Webinar with CEO
Shafin Tejani Victory Square Technologies Investor Webinar February
2023
“We have built a portfolio full of phenomenal
companies, we have a strong team and a robust pipeline of catalysts
to continue our growth trajectory. We are confident that this
momentum will continue for the rest of the year. We’d like to thank
our loyal shareholders and look forward to creating long-term value
for Victory Square, its network of companies and our shareholders.”
Shafin Diamond Tejani, CEO Victory Square
Sign up to VST’s official newsletter at
www.VictorySquare.com/newsletter
On behalf of the Board of Directors
“Shafin Diamond Tejani” Director and Chief
Executive Officer Victory Square Technologies Inc.
www.victorysquare.com
For further information about Victory
Square, please contact:
Investor Relations Contact – Abbey Vogt Email:
ir@victorysquare.com Telephone: 604 283-9166
Peter Smyrniotis – Director Telephone: 604
283-9166
*Use of Non-GAAP Financial
Measures:
This release contains references to NAV which is a
non-GAAP financial measure. NAV is calculated as the value of total
assets. The term NAV does not have any standardized meaning
according to GAAP and therefore may not be comparable to similar
measures presented by other companies. There is no comparable GAAP
financial measure presented in Victory Square Technologies Inc.
consolidated financial statements and thus no applicable
quantitative reconciliation for such non-GAAP financial measure.
The Company believes that the measure provides information useful
to its shareholders in understanding the Company’s performance, and
may assist in the evaluation of the Company’s business relative to
that of its peers. This data is furnished to provide additional
information and does not have any standardized meaning prescribed
by GAAP. Accordingly, it should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with GAAP, and is not necessarily indicative of other metrics
presented in accordance with GAAP. Existing NAV of the Company is
not necessarily predictive of the Company’s future performance or
the NAV of the Company as at any future date.
Use of Non-GAAP Financial
Measures:
This release contains references to non-GAAP
financial measures Adjusted Revenue and Adjusted Gross Margin. The
Company defines Adjusted Revenue as gross cash income before
adjustment for the deferred portion of business partner contract
revenue and gross receipts from Hydreight App service sales. The
Company defines Adjusted Gross Margin as GAAP gross margin plus
inventory impairment plus the deferred portion of business partner
contract revenue. The Company believes that the measures provide
information useful to its shareholders and investors in
understanding the Company’s operating cash flow growth, user
growth, and cash generating potential and may assist in the
evaluation of the Company’s business relative to that of its peers
more accurately than GAAP financial measures alone. This data is
furnished to provide additional information and does not have any
standardized meaning prescribed by GAAP. Accordingly, it should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP and is not necessarily
indicative of other metrics presented in accordance with GAAP.
ABOUT VICTORY SQUARE TECHNOLOGIES
INC.
Victory Square (VST) builds, acquires and invests
in promising startups, then provides the senior leadership and
resources needed for fast-track growth. VST’s sweet spot is
cutting-edge tech that’s shaping the 4th Industrial Revolution. Our
corporate portfolio consists of 25+ global companies using AI,
VR/AR, and blockchain to disrupt sectors as diverse as fintech,
insurance, health and gaming.
What we do differently for
startups
VST isn’t your ordinary investor. With real skin
in the game, we’re committed to ensuring each company in our
portfolio succeeds. Our secret sauce starts with selecting startups
that have real solutions, not just ideas. We pair you with senior
talent in product, engineering, customer acquisition and more. Then
we let you do what you do best — build, innovate and disrupt. In
24-36 months, you’ll scale and be ready to monetize.
What we do differently for
investors
For investors, we offer a liquid way to invest in
some of the world’s most innovative early-stage technology
companies without buying a venture fund that requires accredited
investor status or multi-year commitments. It also can be purchased
by non-accredited investors who are restricted from buying venture
funds. Our portfolio provides a uniquely liquid, and transparent
way for investors to get access to the latest technologies and
emerging global trends. It is an excellent way to diversify into
early-stage venture.
VST invests primarily in leading edge technology,
such as artificial intelligence (AI), machine learning (ML),
digital health, blockchain, gaming and climate tech, which provide
the potential for high growth and returns.
Victory Square integrates a strong ESG
(environmental, social and corporate governance) component
throughout its operations. Our portfolio highlights minority
entrepreneurs, often overlooked by traditional investors, including
many from developing countries. We are also dedicated to giving
back to the communities in which we serve and operate. The
Company’s mandate is to assist organizations through its time,
talent and treasure. The Company is committed to organizations that
provide services in the youth, mental health, special needs, sport,
tech, education, marginalized groups, First Nations, and
accessibility sectors.
VST is a publicly-traded company headquartered in
Vancouver, Canada, and listed on the Canadian Securities Exchange
(VST), Frankfurt Exchange (6F6) and the OTCQX (VSQTF).
For more information, please visit
www.victorysquare.com.
ABOUT THE CANADIAN SECURITIES EXCHANGE
(CSE)
The Canadian Securities Exchange, or CSE, is
operated by CNSX Markets Inc. Recognized as a stock exchange in
2004, the CSE began operations in 2003 to provide a modern and
efficient alternative for companies looking to access the Canadian
public capital markets.
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking
information” within the meaning of applicable securities laws
relating to the outlook of the business of Victory Square and its
portfolio companies, including, without limitation, statements
relating to future performance, execution of business strategy,
future growth, business prospects and opportunities of Victory
Square and its related subsidiaries and portfolio companies,
including those items listed under the heading “Net Asset Value
(“NAV”) Update”, “Notable Portfolio Highlights” and other factors
beyond our control. Such forward-looking statements may, without
limitation, be preceded by, followed by, or include words such as
“believes”, “expects”, “to be”, “anticipates”, “estimates”,
“intends”, “plans”, “continues”, “project”, “potential”,
“possible”, “contemplate”, “seek”, “goal”, “objectives”, “outlook”
or similar expressions, or may employ such future or conditional
verbs as “may”, “might”, “will”, “could”, “should” or “would”, or
may otherwise be indicated as forward-looking statements by
grammatical construction, phrasing or context. All statements other
than statements of historical facts contained in this news release
are forward-looking statements. Forward-looking information is
based on certain key expectations and assumptions made by the
management of Victory Square. Although Victory Square believes that
the expectations and assumptions on which such forward looking
information is based are reasonable, undue reliance should not be
placed on them because Victory Square can give no assurance that
they will prove to be correct. Although Victory Square believes
that the expectations reflected in forward-looking statements in
this press release are reasonable, such forward-looking statements
has been based on expectations, factors and assumptions concerning
future events which may prove to be inaccurate and are subject to
numerous risks and uncertainties, certain of which are beyond the
Victory Square’s control, including, but not limited to, the risk
factors discussed in the continuous disclosure materials of the
Victory Square which are available under the Victory Square’s
profile on SEDAR at www.sedar.com. The forward-looking statements
contained in this press release are expressly qualified by this
cautionary statement and are made as of the date hereof. Actual
results and developments may differ materially from those
contemplated by these statements. The statements contained in this
news release are made as of the date of this news release. Victory
Square disclaims any intent or obligation to update publicly any
forward-looking information, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.
The Canadian Securities Exchange has neither
approved nor disapproved the contents of this news release and
accepts no responsibility for the adequacy or accuracy hereof.
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