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TORONTO, May 30, 2022 /CNW/ - Eddy Smart Home Solutions Ltd. (formerly Aumento Capital VIII Corp.) ("Eddy" or the "Company") (TSXV: EDY) released its unaudited financial statements for the three months ended March 31, 2022.
Operational Update for Eddy
Leveraging a significant sales and operational investment in 2021, Eddy entered the year poised for growth. During the first quarter of 2022, Eddy attained meaningful expansion in all aspects of the organization, further solidifying Eddy's position as a North American leader in intelligent water management and leak protection. During the first quarter of 2022, sales efforts added 9 new buildings into our backlog, accounting for nearly 1,400 new subscribers and approximately $3.4MM in additional future contracted revenue, bringing Eddy's total future contracted revenue to approximately $17MM. Eddy earns revenue over the term of its contracts, beginning on a straight-line basis with commences upon installation. The term of the contracts are typically 84 months.
Subsequent to the close of the first quarter, 2022, Eddy's Sales team landed several key contracts, taking our backlog to approximately $26MM, demonstrating a 100% increase and significant sales momentum for the remainder of the year.
Revenue for the three months ended March 31, 2022, increased by $23,383 to $382,805, as compared to $359,422 reported for the comparable period in 2021.
Net loss for the three months ended March 31, 2022, increased to ($4,688,594), as compared to ($1,270,853) reported for the three months ended March 31, 2021. Excluding the non-recurring, non-cash items related to the TSX-V listing, which amounted to $2,406,778 (consisting of the listing expense of $858,118, the issuance of common shares of the Company of $872,260 and the issuance of warrants of the Company of $676,400), the adjusted net loss for the three months ended March 31, 2022 was ($2,281,816).
Basic and Diluted Loss per Share
Basic and diluted loss per share for the three months ended March 31, 2022 was ($0.08), as compared to ($0.04) reported in the same period in 2021.
For further information on the financial results of the Company, please review the Company's unaudited consolidated condensed interim financial statements and management's discussion and analysis of the financial condition and results of operations for the three months ended March 31, 2022, available on the Eddy's SEDAR website at www.sedar.com. In addition, supplemental information is available on the Eddy's website at www.eddysolutions.com/investors
On May 4, 2022, the Company announced the successful closing of the previously announced acquisition on March 25, 2022, of all the issued and outstanding common shares of Reed Controls Inc. (dba Reed Water) ("Reed"). The total purchase price for the transaction was C$7,359,600 paid in Common Shares of the Company at a price of $0.60 per Common Share with 12,266,000 Common Shares being issued in aggregate (the "Share Consideration"). The Share Consideration is subject to a twenty-four (24) month lock-up period, provided that the Share Consideration will be released from the lock-up requirements on the first business day following each of the four, six, nine, twelve, fifteen, eighteen and twenty-one month anniversaries of the closing date, and such other terms, as may be imposed by the Exchange. The Share Consideration will also be subject to a statutory four month hold period. Upon the closing of the transaction, Reed's founders joined the Company's leadership team. Reed has also been granted a right to nominate a director to serve on the Company's board of directors (the "Board"), and a Board observer.
"Eddy's progress in Q1 of 2022 is strategically in line with our objectives," said Travis Allan, CEO of Eddy. "The recently completed acquisition of Reed optimizes operations with an expanded product portfolio and further strengthens the management team, solidifying Eddy's position as a North American leader in water management."
In this news release, references to "$" are to Canadian dollars. Dollar amounts are presented herein in Canadian currency unless otherwise indicated.
Eddy is a North American provider and developer of residential and commercial smart water metering products and monitoring services, helping property owners protect, control, and conserve water usage by combining water sensing devices with behavioural learning software. For more detail on the Company's products or corporate information please visit www.eddysolutions.com.
Forward-Looking Information and Statements
This news release contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our objectives, our strategies to achieve those objectives, our performance, as well as statements with respect to management's beliefs, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans", or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward looking information in this news release includes information regarding additional future contracted revenue, the Company's leadership position in intelligent water management and leak protection and the expectation of future sales momentum. These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described under the heading "Risk Factors" in the Company's filing statement dated January 6, 2022 "(a copy of which can be obtained at www.sedar.com), which could cause our actual results and performance to differ materially from the forward-looking statements contained in this news release.
All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
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.
SOURCE Eddy Smart Home Solutions Ltd.
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