(TSXV-PGV)
TORONTO, Aug. 26,
2022 /CNW/ - Prodigy Ventures Inc. (TSXV: PGV)
("Prodigy" or the "Company") today announced its financial results
for the three and six months ended June 30,
2022.
"Based on an updated forecast for the FICANEX Technology
business, the Company has booked an impairment loss of $2,578,001 in the consolidated statement of
operations and comprehensive income (loss) for Q2", said
Tom Beckerman, Prodigy's Chairman
and CEO. "Prodigy's pipeline for its
tunlTM open banking and IDVerifactTM
digital identity platforms continues to grow and mature, adding
opportunities for additional high margin recurring revenue, however
closing these opportunities is requiring longer sales cycle times
than originally anticipated."
Second Quarter 2022 Financial
Results
- Revenue for the three months ended June
30, 2022 totalled $3,455,385
as compared to $3,245,006 for the
three months ended June 30, 2021, an
increase of 6%.
- Gross profit for the three months ended June 30, 2022 of $1,094,486 as compared to $876,498 for the three months ended June 30, 2021, an increase of 25%.
- Expenses for the three months ended June
30, 2022 of $3,985,195 as
compared to $970,087 for the three
months ended June 30, 2021, an
increase of 311%. This includes a non-cash impairment loss of
$2,578,001 in the second quarter of
2022.
- Net loss for the three months ended June
30, 2022 totalled $2,780,400
as compared to net loss of $83,485
for the three months ended June 30,
2021.
- Adjusted EBITDA for the three months ended June 30, 2022 totalled negative $39,713 as compared to positive $3,427 for the three months ended June 30, 2021.
- The Company had working capital of $2,619,956 as of June 30,
2022 compared to $3,143,145 as
of December 31, 2021.
Year-to-Date 2022 Financial
Results
- Revenue for the six months ended June
30, 2022 totalled $6,832,700
as compared to $6,573,993 for the six
months ended June 30, 2021, an
increase of 4%.
- Gross profit for the six months ended June 30, 2022 of $2,255,509 as compared to $1,782,617 for the six months ended June 30, 2021, an increase of 27%.
- Expenses for the six months ended June
30, 2022 of $5,413,773 as
compared to $1,843,914 for the six
months ended June 30, 2021, an
increase of 194%. This includes a non-cash impairment loss of
$2,578,001 in the second quarter of
2022.
- Net loss for the six months ended June
30, 2022 totalled $3,083,567
as compared to net loss of $64,393
for the six months ended June 30,
2021.
- Adjusted EBITDA for the six months ended June 30, 2022 totalled negative $34,091 as compared to positive $121,818 for the six months ended June 30, 2021.
|
Three months
ended
June 30
|
Six months ended
June 30
|
|
2022
$
|
2021
$
|
2022
$
|
2021
$
|
|
|
|
|
|
|
Revenue
|
3,455,385
|
3,245,006
|
6,832,700
|
6,573,993
|
|
Gross
Profit
|
1,094,486
|
876,498
|
2,255,509
|
1,782,617
|
|
Expenses
|
3,985,195
|
970,087
|
5,413,773
|
1,843,914
|
|
Net and
comprehensive (loss) for the period
|
(2,780,400)
|
(83,485)
|
(3,083,567)
|
(64,393)
|
|
|
|
|
|
|
Net (loss) per share
– basic and diluted
|
(0.02)
|
(0.00)
|
(0.02)
|
(0.00)
|
|
Adjusted
EBITDA(1)
|
(39,713)
|
3,427
|
(34,091)
|
121,818
|
|
(1)
|
Adjusted EBITDA is a
non-IFRS financial measure, which is defined as earnings before
income tax expense, finance costs, depreciation and amortization,
impairment loss and share-based compensation. We exclude these
items because they affect the comparability of our financial
results and could potentially distort the analysis of trends in our
business performance. Adjusted EBITDA is used by management to
assess our operating performance. The presentation of Adjusted
EBITDA is to provide additional useful information to investors and
analysts and the measure does not have any standardized meaning
under IFRS. Adjusted EBITDA should therefore not be considered in
isolation or used in substitute for measures of performance
prepared in accordance with IFRS. Other issuers may calculate
Adjusted EBITDA differently.
|
|
(2)
|
For further information
regarding non-IFRS financial measures including a quantitative
reconciliation of Adjusted EBITDA, please see the Company's
Management's Discussion and Analysis for the three and six months
ended June 30, 2022 under the heading "Non-IFRS Financial
Measures".
|
The complete unaudited financial statements and associated
Management's Discussion and Analysis are available under the
Company's profile at www.sedar.com or the Company's website at
www.prodigy.ventures.
About Prodigy Ventures Inc.
Prodigy delivers Fintech innovation. The Company provides
leading edge platforms, including IDVerifact™ for digital identity,
and tunl.™ for open banking and customer chat support, coupled with
seamless integration of our partners best-of-breed Fintech
platforms. Our services business, Prodigy Labs™, integrates and
customizes our platforms for unique enterprise customer
requirements, and provides technology services for digital
identity, open banking, payments and digital transformation.
Digital transformation services include strategy, architecture,
design, project management, agile development, quality engineering
and staff augmentation. Prodigy has been recognized as one of
Canada's fastest growing companies
with multiple awards.
Forward-Looking and Cautionary Statements
Certain information set out in this news release constitutes
forward-looking information. Forward looking statements are often,
but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "intend", "could", "might", "should", "believe" and similar
expressions. Such forward looking information includes references
to Prodigy's pipeline for its tunlTM open banking and
IDVerifactTM digital identity platforms, the possibility
for additional high margin recurring revenue and the timing and
ability to close the opportunities in the pipeline. Although the
Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
and that information obtained from third party sources is reliable,
they can give no assurance that those expectations will prove to
have been correct. The assumptions on which the foregoing
statements are based include a review of the sales channel for the
platforms and the Company's historical experience regarding the
timing to close on such opportunities. Readers are cautioned not to
place undue reliance on forward-looking statements included in this
document, as there can be no assurance that the plans, intentions
or expectations upon which the forward-looking statements are based
will occur. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties
that contribute to the possibility that the predictions, forecasts,
projections and other forward-looking statements will not occur,
which may cause actual results in future periods to differ
materially from any estimates or projections of future performance
or results expressed or implied by such forward-looking statements.
These risks and uncertainties include, among other things, risk
factors set forth in the Company's Management's Discussion and
Analysis for the three and six months ended June 30, 2022, a copy of which is filed on SEDAR
at www.sedar.com. Readers are cautioned that this list of risk
factors should not be construed as exhaustive. These statements are
made as at the date hereof and unless otherwise required by law,
the Company does not intend, or assume any obligation, to update
these forward-looking statements.
Non-IFRS Financial Measures
Our financial statements are prepared in accordance with
International Financial Reporting Standards ("IFRS"). Certain
financial measures in this press release are not prescribed by
IFRS. These non-IFRS financial measures are included because
management uses the information to analyze operating performance.
These non-IFRS financial measures do not have any standardized
meaning and are therefore unlikely to be comparable to similar
measures presented by other companies. Except as otherwise
indicated, these non-IFRS measures are calculated and disclosed on
a consistent basis from period to period.
Neither 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.
SOURCE Prodigy Ventures Inc.
