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NEW YORK, October 16, 2021--(BUSINESS WIRE)--GetSwift Technologies Limited ("GetSwift" or the "Corporation"; NEO: "GSW"), a leading provider of last mile SaaS logistics technology, is pleased to announce that it has filed its audited annual financial statements for its year ended June 30, 2021 and related management’s discussion and analysis (collectively, the "2021 Annual Financial Statements"), the Company’s Annual Information Form for the year-ended June 30, 2021 (the "AIF"), and the CEO and CFO certifications to be delivered in respect of the 2021 Annual Financial Statements and the AIF (the "Certifications") The 2021 Annual Financial Statements, the AIF, and the Certifications are available on the Corporation’s SEDAR profile at www.sedar.com.
GetSwift is pleased to announce that total revenue from customer contracts for fiscal year ended of 2021 of $19.8 million, an increase of 21% over the prior year while total operating expenses were $40.2 million, an increase of 2% over the prior year as the impact of the cost optimization program was recognized. This helped to drive a net loss before tax of $23.7 million, a 13% increase over prior year. Cash used from operating activities was $14.6 million, a reduction of 16% over fiscal year end 2019.
Total cash was $7.3 million, a decrease of 68% primarily driven by the net loss.
The quarter ending June 30, 2021 saw a 68% improvement in revenue from customer contracts over the prior quarter, coincided with a 28% reduction in operating costs.
As of the date of the 2021 Annual Financial Statements, the Corporation expects revenue to be $6 million and $15 million for the first and second quarters of fiscal year end of 2022 (or the calendar year third and fourth quarters of 2021).
On August 19, 2021 a settlement deed was executed regarding the class action proceedings in Australia (Raffaele Webb v GetSwift Limited & Anor NSD 580 of 2018) with no admissions as to liability. The settlement deed is conditional upon final settlement approval by the Federal Court of Australia pursuant to the Federal Court of Australia Act 1976 (Cth). The Corporation has accrued AUD $1.5 million as of June 30, 2021, which is management’s best estimate of the amount of to be paid under the proposed settlement deed during the first year of the deed. Subsequent to year-end, the Corporation placed AUD $500,000 into escrow with external legal counsel in relation to the proposed settlement.
The ability of the Corporation to continue as a going concern will likely be dependent on the Corporation’s ability to obtain additional equity or debt financing to achieve suitable capitalization for ongoing operations. The directors have a reasonable expectation that the Corporation will be able to obtain sufficient funds from either existing shareholders or external parties in order to continue as a going concern.
If alternative funding arrangements are not obtained in the next 2-3-month period, the Corporation will pursue further cost optimization initiatives in order to ensure adequate funding in the short term.
The information provided in this news release should be read in conjunction with the 2021 Annual Financial Statements. Additional information regarding the Corporation is provided in the AIF. The Corporation anticipates that the filing of the 2021 Annual Financial Statements, AIF, and Certifications will initiate the review process by the British Columbia Securities Commission (the "Commission") for a revocation of the cease trade order issued (the "CTO") by the Commission on October 5, 2021.
The Corporation will review its financial results for the fiscal year ended June 30, 2021 and discuss the Corporation’s business initiatives during a business update conference call. The date and time for the call will be announced in a future press release.
About GetSwift Technologies Limited
Technology to Optimise Global Delivery Logistics
GetSwift is a technology and services company that offers a suite of software products and services focused on business and logistics automation, data management and analysis, communications, information security, and infrastructure optimization and also includes ecommerce and marketplace ordering, workforce management, data analytics and augmentation, business intelligence, route optimization, cash management, task management shift management, asset tracking, real-time alerts, cloud communications, and communications infrastructure (collectively, the "GetSwift Offering"). The GetSwift Offering is used by public and private sector clients across industries and jurisdictions for their respective logistics, communications, information security, and infrastructure projects and operations.
GetSwift is headquartered in New York and its common shares are listed for trading on the NEO Exchange under the symbol "GSW". For further background, please visit the Corporation’s profile on SEDAR at www.sedar.com and the Corporation’s website at www.getswift.co.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this news release and to other matters identified in public filings relating to the Corporation, to the future outlook of the Corporation and anticipated events or results and may include statements regarding the future financial performance of the Corporation. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking Statements in this press release include statements related to the process and timing of the Commission’s review in respect of a revocation of the CTO, the timing, attendees, agenda, and content of the conference call currently to be scheduled, future guidance regarding revenue forecasts for the first and second quarter.
Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include, without limitation, the Commission’s timing for review in respect of a revocation of the CTO, the availability of management to attend and participate at the conference call, the nature and volume of questions received by management and the time required to respond to such questions, continued use of the Corporation’s services, sources of the Corporation’s revenue, the potential for additional tax expenses in future periods relating to historical filings, short- to mid-term expectations regarding the likelihood of the Corporation making capital calls under the Amended LDA Agreement (as defined below), limitations on the ability of the Corporation to leverage the LDA facility in the future, the timing of judgments relating to the civil proceedings in Australia, the incurrence of legal fees in relation to defending the civil proceedings involving Corporation or its subsidiaries, judgments relating to any civil proceedings involving the Corporation or its subsidiaries, the timing of future hearings related to the civil proceedings involving the Corporation or its subsidiaries, compliance with any settlement agreements entered into by the Corporation and the likelihood such agreements will be approved by courts of competent jurisdiction, estimates of the useful lives of assets, provisions for impairment of inventories, the ability of the Corporation to continue as a going-concern, the effect of a change of control on the Corporation’s material contracts, the Corporation’s dependence on key personnel, the Corporation’s ability to achieve or maintain profitability, the ability of clients terminating contracts with the Corporation and the impact thereof, short- to mid-term expectations regarding the sources and quantum of revenue, ongoing costs and obligations of the Corporation and its subsidiaries, the Corporation’s need and ability to obtain additional financing, the Corporation’s ability and intention to develop the GetSwift Offering (as defined below) and other intellectual property, the Corporation’s dependence on the GetSwift Offering to maintain operability and functionality on third-party operating systems and the likelihood of changes to such platforms, the Corporation’s dependence on suppliers and skilled labor, growth-related risks such as capacity constraints and pressure on internal systems and controls, the likelihood of reputational harm to the Corporation and the impact thereof, and the impact of pandemics, including COVID-19, on the Corporation, applicable regulation, and global commerce.
Important factors that could cause actual results to differ materially from the Corporation's expectations include, without limitation: clients deciding to terminate contractual relationships with the Corporation, the potential for adverse or positive tax judgments in the jurisdictions in which the Corporation or its subsidiaries operate or changes to applicable tax rules in such jurisdictions, market conditions, the validity of GetSwift’s inter-company transactions, the potential for adverse or positive judgments with respect to the civil proceedings involving the Corporation and its subsidiaries, the withdrawal or dismissal of claims made against the Corporation or its subsidiaries or the initiation of new claims, the departure of key personnel or other employees of the Corporation, changes in technology, customer preferences, or supply chains, changes in accounting policies or procedures applicable to the Corporation’s assets, the exacerbation of the COVID-19 pandemic, and the other risk factors set forth in (i) the 2021 Annual Financial Statements and (ii) the AIF under the heading "Risk Factors". The Corporation undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Corporation to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
The guidance included in this section is provided for the purpose of providing additional information regarding the cyclicality of the Corporation’s revenue and management’s current expectations with respect to revenue derived from contracts with customers in the short and medium term and may not be appropriate for any other purpose. Readers are cautioned that such FLI and future-oriented financial information is based on management’s current expectations in light of existing market conditions and that such statements are subject to a number of risks described in the risk factors set forth in the Corporation’s Annual Financial Statements and AIF dated October 15, 2021.
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