Advantex Announces Fiscal 2020 First Quarter Results

3 months
ended
September 30,
2019

3 months
ended
September 30,
2018

$

$

Revenues

$

799,043

$

1,846,134

Gross profit

$

635,153

$

1,401,623

Earnings from operations before depreciation, amortization and interest

$

57,424

$

396,087

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

$

(343,774)

$

116,876

Net loss and Comprehensive loss

$

(532,406)

$

(24,747)

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

At September 
30, 2019

At June 
30, 2019

$

$

Assets

Current assets

Cash and cash equivalents

$

73,417

$

119,636

Accounts receivable

81,822

110,630

Transaction credits 

5

8,049,951

9,473,999

Prepaid expenses and sundry assets

49,298

52,232

$

8,254,488

$

9,756,497

Non-current assets

Right of use asset

15

$

316,520

$

345,294

Property, plant and equipment

6,450

15,255

$

322,970

$

360,549

Total assets

$

8,577,458

$

10,117,046

Liabilities

Current liabilities

Loan payable 

6

$

7,237,721

$

8,416,076

Lease liability

116,985

113,854

Accounts payable and accrued liabilities

2,585,831

2,526,829

9% Non-convertibles debentures payable

7

5,236,583

5,095,949

$

15,177,121

$

16,152,708

Non-current Liabilities

Lease liability

15

$

235,064

$

266,658

$

235,064

$

266,658

Shareholders' deficiency

Share capital 

8

$

24,530,555

$

24,530,555

Contributed surplus

4,090,382

4,090,382

Accumulated other comprehensive loss

(47,383)

(47,383)

Deficit

15

(35,408,280)

(34,875,874)

Total deficiency

$

(6,834,726)

$

(6,302,320)

Total liabilities and deficiency

$

8,577,458

$

10,117,046

Going concern (note 2), Commitments and contingencies (note 11)

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

Note

2019

2018

$

$

Revenues

14

Marketing activities

$

179,583

1,545,389

Interest income

619,460

300,745

$

799,043

$

1,846,134

Direct expenses

13/14

163,890

444,511

635,153

1,401,623

Operating expenses

Selling and marketing

13/14

187,863

467,419

General and administrative

13/14

389,867

538,117

Earnings from operations before depreciation, amortization and interest

57,424

396,087

Interest expense:

Stated interest expense - loan payable, and debentures

6/7

401,197

279,211

Interest - Lease 

15

10,464

-

Non-cash interest expense (accretion charges) and restructuring bonus related to debentures

7

140,634

135,675

(494,871)

(18,799)

Depreciation - Right of use asset

15

28,775

-

Depreciation of property, plant and equipment, and amortization of intangible assets

8,760

5,948

Net loss and comprehensive loss

$

(532,406)

$

(24,747)

Loss per share

Basic and Diluted

12

$

(0.00)

$

(0.00)

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

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

2019

2018

$

$

Operational activities

Net loss for the period

$

(532,406)

$

(24,747)

Adjustments for:

Interest - Lease 

15

10,464

-

Depreciation - Right of use asset

15

28,775

-

Depreciation of property, plant and equipment, and amortization of intangible assets

8,760

5,948

Accretion charge for debentures

7

78,053

73,094

Restructuring bonus for debentures

7

62,581

62,581

(343,774)

116,876

Changes in items of working capital

Accounts receivable

28,808

(43,743)

Transaction credits 

1,424,048

(334,976)

Prepaid expenses and sundry assets

2,934

1,084

Accounts payable and accrued liabilities

59,002

(275,826)

1,514,792

(653,461)

Net cash generated by (used in) operating activities

$

1,171,019

$

(536,585)

Investing activities

Payment for lease

15

$

(38,928)

$

-

Purchase of property, plant and equipment, and intangible assets

45

(2,810)

Net cash (used in) investing activities

$

(38,883)

$

(2,810)

Financing activities

Utilization of loan payable

6

$

(1,178,355)

$

206,096

Net cash generated from financing activities

$

(1,178,355)

$

206,096

(Decrease)/Increase in cash and cash equivalents during the period

$

(46,219)

$

(333,299)

Cash and cash equivalents at beginning of the period

119,636

635,836

Cash and cash equivalents at end of the period

$

73,417

$

302,537

Additional information

Interest paid 

$

257,091

$

153,105

For purposes of the cash flow statement, cash comprises 

Cash

$

73,417

$

302,537

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