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
Six months ended
Net and comprehensive (loss) for the period
Net (loss) per share – basic and diluted
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.
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.
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