Advantex Announces Fiscal 2021 Third Quarter Results

Three months

Nine months

Three months

Nine months

March 2021

March 2020

March 2021

March 2020

Inc./(Dec)

Inc./(Dec)

$

$

$

$

$

$

Revenues

$

240,651

$

741,963

$

939,349

$

2,431,942

$

(501,312)

$

(1,492,593)

Direct expenses

$

57,262

$

692,893

$

313,854

$

1,100,914

$

(635,631)

$

(787,060)

Gross profit

$

183,389

$

49,070

$

625,495

$

1,331,028

$

134,319

$

(705,533)

Selling and General & Administrative expenses

$

366,287

$

606,461

$

1,006,497

$

1,850,484

$

(240,174)

$

(843,987)

(Loss) from operations before depreciation, amortization and interest

$

(182,898)

$

(557,391)

$

(381,002)

$

(519,456)

$

(374,493)

$

(138,454)

Stated interest expense - Loan payable, and 9% Non convertible debentures payable

$

205,250

$

301,059

$

677,215

$

1,059,413

$

(95,809)

$

(382,198)

(Loss) from operations before depreciation, amortization, non cash interest and non cash items

$

(388,148)

$

(858,450)

$

(1,058,217)

$

(1,578,869)

$

(470,302)

$

(520,652)

Interest expense - Accretion charges,  Restructuring bonus and Amortization of transaction costs related to 9% Non-convertible debentures payable

$

132,141

$

154,595

$

449,793

$

442,753

$

(22,454)

$

7,040

Interest - Lease

$

3,090

$

4,976

$

10,582

$

14,929

$

(1,886)

$

(4,347)

Depreciation of right of use asset

$

11,372

$

16,333

$

34,118

$

49,001

$

(4,961)

$

(14,883)

Depreciation of property, plant and equipment

$

-

$

629

$

-

$

15,210

$

(629)

$

(15,210)

Net (loss) and comprehensive (loss)

$

(534,751)

$

(1,034,983)

$

(1,552,710)

$

(2,100,762)

$

(500,232)

$

(548,052)

Fuller details available in the Consolidated Financial Statements and MD&A available under Advantex's profile on www.sedar.com

Note

At March 31, 
2021

At June 
30, 2020

$

$

Assets

Current assets

Cash 

$

104,180

$

166,601

Accounts receivable

78,554

118,901

Transaction credits 

5

2,092,782

3,923,917

Prepaid expenses and sundry assets

46,371

58,781

$

2,321,887

$

4,268,200

Non-current assets

Right of use asset

15

$

64,444

$

98,562

$

64,444

$

98,562

Total assets

$

2,386,331

$

4,366,762

Liabilities

Current liabilities

Loan payable 

6

$

2,719,782

$

4,369,006

Lease liability

69,967

64,452

Loan

16

60,000

40,000

Accounts payable and accrued liabilities

2,582,822

2,364,759

9% Non convertible debentures payable

7

-

6,611,576

$

5,432,571

$

13,449,793

Non-current Liabilities

9% Non convertible debentures payable

7

$

4,609,582

$

-

Lease liability

15

31,493

84,679

$

4,641,075

$

84,679

Shareholders' deficiency

Share capital 

8

$

24,530,555

$

24,530,555

Contributed surplus

7,150,275

4,117,170

Accumulated other comprehensive loss

(47,383)

(47,383)

Deficit

(39,320,762)

(37,768,052)

Total deficiency

$

(7,687,315)

$

(9,167,710)

Total liabilities and deficiency

$

2,386,331

$

4,366,762

Class A preference shares

Common
shares

Contributed surplus

Accumulated other comprehensive loss

Deficit

Total

$

$

$

$

$

$

Balance - July 1, 2019

$

3,815

$

24,526,740

$

4,090,382

$

(47,383)

$

(34,840,656)

$

(6,267,102)

Reported at December 31, 2019 as adjustment to deficit on account of adoption of IFRS 16 Leases at July 1, 2019

-

-

-

-

(35,218)

(35,218)

Reported Net (loss) and comprehensive (loss)

-

-

-

-

(2,085,639)

(2,085,639)

Reported as balance at March 31, 2020

3,815

24,526,740

4,090,382

(47,383)

(36,961,513)

(8,387,959)

Adjustments on account of amendments made at year end June 30, 2020 to initial computations on adoption of IFRS 16 Leases at July 1, 2019, and initial recording on issuance of $200,000 9% Non convertible debentures payable in October 2019

Reversal of adjustment made to deficit at July 1, 2019 - IFRS 16 Leases

-

-

-

-

35,218

35,218

Recording of contributed surplus - 9% Non convertible debentures payable

-

-

26,788

-

-

26,788

Increase in Reported Net (loss) and comprehensive (loss)

-

-

-

-

(15,122)

(15,122)

Amended Balance - March 31, 2020

$

3,815

$

24,526,740

$

4,117,170

$

(47,383)

$

(36,941,417)

$

(8,341,075)

Balance - July 1, 2020

$

3,815

$

24,526,740

$

4,117,170

$

(47,383)

$

(37,768,052)

$

(9,167,710)

Recording of contributed surplus - 9% Non convertible debentures payable

-

-

3,033,105

-

-

3,033,105

Net (loss) and comprehensive (loss)

-

-

-

-

(1,552,710)

(1,552,710)

Balance - March 31, 2021

$

3,815

$

24,526,740

$

7,150,275

$

(47,383)

$

(39,320,762)

$

(7,687,315)

The accompanying notes are an integral part of these consolidated financial statements

Note

Nine months ended
March 31, 2021

Nine months ended
March 31, 2020

$

$

18

Amended

Operational activities

Net (loss) for the period

$

(1,552,710)

$

(2,100,762)

Adjustments for:

Accrued and unpaid interest - 9% Non convertible debentures payable

394,243

383,891

Interest - Lease 

15

10,582

14,929

Depreciation of right of use asset

15

34,118

49,001

Depreciation of property, plant and equipment

-

15,210

Loss on disposal of property, plant & equipment

-

45

Accretion charge - 9% Non convertible debentures payable

7

248,797

242,098

Restructuring bonus - 9 % Non convertible debentures payable

7

187,689

192,827

Amortization of transaction costs - 9% Non convertible debentures payable

7

13,307

7,828

(663,974)

(1,194,933)

Changes in items of working capital

Accounts receivable

40,347

19,301

Transaction credits 

1,831,135

4,715,015

Prepaid expenses and sundry assets

12,410

(8,851)

Accounts payable and accrued liabilities

218,063

89,608

2,101,955

4,815,073

Net cash provided by operating activities

$

1,437,981

$

3,620,140

Financing activities

Payment for lease

15

$

(58,253)

$

(58,253)

Gross proceeds - 9% Non convertible debentures payable

7

250,000

200,000

Transaction costs - 9% Non convertible debentures payable

7

(62,925)

(40,703)

Proceeds from loan - Canada Emergency Business Account 

20,000

-

(Decrease) of Loan payable

6

(1,649,224)

(3,626,308)

Net cash (used in) financing activities

$

(1,500,402)

$

(3,525,264)

(Decrease)/Increase in cash during the period

$

(62,421)

$

94,876

Cash at beginning of period

166,601

119,636

Cash at end of period

$

104,180

$

214,512

Additional information

Interest paid 

$

282,972

$

623,091

Cash

$

104,180

$

214,512

The accompanying notes are an integral part of these consolidated financial statements