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extractX Ltd. Announces Financial Results for Its Second Quarter Ended March 31, 2022

·4 min read

NIAGARA, Ontario, May 30, 2022--(BUSINESS WIRE)--extractX Ltd. ("extractX" or the "Company"), today announced financial results for the Company and its subsidiary extractX Incorporated ("EXI") as at and for the three and six months ended March 31, 2022. All figures are in Canadian dollars unless otherwise noted.

Q2 2022 Operational Highlights

During the quarter the Company continued to work with its two client partners on extraction activities, as well as accelerated its sales and marketing efforts on a global scale.

The Company reported total contract processing revenue of $235,268 for the six months ended March 31, 2022 ($37,171 for the six months ended March 31, 2021). The mobile lab in Kentucky generated $207,159, all in the first three months as the client partner did not process any biomass from January 1, 2022, on. Processing is expected to resume when the client partner has satisfactorily reduced their inventory of CBD distillate and has secured more biomass to commerce the extraction process again, most likely in the fourth quarter of 2022. The mobile lab in Thailand became operational in October 2021, however a temporary shortage of acceptable hemp biomass resulted in small test batches being run, thus the contract only generated $28,109 for the six months ended March 31, 2022 ($nil – March 31, 2021). Early in May 2022 the client partner confirmed that they had secured a larger quantity of biomass and resumed processing activities.

The Company has also designed a lab to meet EU GMP regulations and standards, which will enable extractX to provide pharmaceutical-grade mobile labs for the pharmaceutical sector. This will be the production model and standard as the Company moves forward. These initiatives were supported in part through a 50% cost sharing grant under the Agricultural Clean Technology Program of the Canadian Government.

The Company’s sales and marketing programs continue to generate qualified leads from around the globe and management is in various stages of discussion and contract negotiations with several parties.

Q2 2022 Financial Highlights

Selected unaudited financial highlights for the three and six months ended March 31, 2022, and the three and six months ended March 31, 2021, include the following:

(in $CDN)

3 months
Mar. 31
2022

3 months
Mar. 31
2021

6 months
Mar. 31
2022

6 months
Mar. 31
2021

Contract revenue

$10,388

$37,171

$235,268

$37,171

Extraction wages and supplies

62,838

60,373

162,597

98,952

Gross profit

(52,450)

(23,202)

72,671

(61,781)

Expenses

Corporate and operations salaries

138,492

178,411

308,838

307,721

Operating and administrative

416,037

269,184

935,057

477,704

Amortization of capital assets, net of credits

115,318

87,804

211,004

155,503

669,847

535,399

1,454,899

940,928

Net loss before other income and expenses

(722,297)

(558,601)

(1,382,228)

(1,002,709)

Other income and expenses

140

200,396

1,287

311,985

Cost of reverse takeover acquisition

-

-

(1,637,202)

-

Net loss for the period

$(722,157)

$(358,205)

$(3,020,143)

$(690,724)

Net comprehensive loss per share

$(0.029)

$(0.016)

$(0.122)

$(0.031)

Selected unaudited balance sheet highlights for the three months ended March 31, 2022, and the year ended September 30, 2021, include the following:

Mar. 31
2022

Sept. 30
2021

$

$

Total assets

Cash

201,595

1,141,761

Other current assets

405,818

746,434

Capital and other assets

4,419,047

4,523,097

5,026,460

6,411,292

Total long-term liabilities

Deposits on contracts

633,900

828,165

Other current liabilities

525,268

519,361

Deferred contributions

1,044,565

1,084,640

Long term debt

32,880

32,880

2,236,613

2,465,046

Shareholders’ Equity

2,789,847

3,946,246

% of equity in total assets

55.50%

61.55%

Financial Statements

The condensed interim consolidated financial statements of the Company as at and for the three and six months ended March 31, 2022 and accompanying management's discussion and analysis have been filed with the securities regulators and are available on SEDAR at www.sedar.com under the Company’s issuer profile.

No stock exchanges have reviewed or accepted responsibility for the adequacy or accuracy of the content of this press release.

About extractX Ltd.

extractX designs, builds, and operates industrial scale self-contained mobile extraction laboratories equipped with the most effective and reliable equipment, allowing for efficient 24/7 operation, and unlimited scalability to meet the demand of any size operation. Built to GPP/GMP/EU GMP standards, extractX purpose builds mobile extraction laboratories to service biomass cultivators and producers wherever and whenever the service is needed, onsite and on demand anywhere in the world.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and 21E of the Exchange Act of 1934. Such statements include, without limitation, statements regarding business and financing, business trends and future operating revenues and expenses. Statements regarding the aforementioned are based on several assumptions and are not to be considered fact. Although extractX Ltd. believes that the statements are reasonable, it can give no assurances that such expectation will prove to be correct. Investors are cautioned that any forward-looking statements made by extractX Ltd. contain no guarantee of future performance and that actual results may differ materially from those set forth in the forward-looking statements. For additional information see the reports filed by the company in its securities filings with applicable securities regulators (currently available at www.sedar.com).

Unless otherwise required by applicable securities laws, extractX Ltd. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220530005294/en/

Contacts

Albert Iannantuono, Co-CEO
extractX Ltd.
1027 South Pelham St Unit 2,
Welland, Ontario, L3C 1L7
Tel: (905) 327-5313
Web site: www.extractx.com