Advantex Announces Fiscal 2020 Third Quarter Results

3 months ended March 31

9 months ended March 31

2020

2019

2020

2019

$

$

$

$

Revenues

$

741,963

$

1,387,652

$

2,431,942

$

5,046,639

Gross profit

$

577,847

$

992,956

$

1,859,805

$

3,831,370

Earnings from operations before depreciation, amortization and
interest

$

(9,102)

$

93,852

$

67,852

$

925,176

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

$

(310,161)

$

(223,291)

$

(991,561)

$

32,661

Loss from Operations

$

(502,130)

$

(366,875)

$

(1,562,341)

$

(396,450)

Gain - Issuance of debentures

$

-

$

-

$

5,479

$

-

Reserve for transaction credits - Covid 19 Pandemic

$

(528,777)

$

-

$

(528,777)

$

-

Net Loss and Comprehensive loss

$

(1,030,907)

$

(366,875)

$

(2,085,639)

$

(396,450)

Note

Three months ended March 31

Nine months ended March 31

2020

2019

2020

2019

$

$

$

$

Revenues

14

Marketing activities

$

216,843

$

1,103,679

$

633,506

$

4,142,837

Interest income 

525,120

283,973

1,798,436

903,802

$

741,963

$

1,387,652

$

2,431,942

$

5,046,639

Direct expenses

13/14

164,116

394,696

572,137

1,215,269

577,847

992,956

1,859,805

3,831,370

Operating expenses

Selling and marketing

13/14

203,848

320,156

582,546

1,175,620

General and administrative

13/14

383,101

578,948

1,209,407

1,730,574

Earnings from operations before depreciation,
amortization and interest

(9,102)

93,852

67,852

925,176

Interest expense:

Stated interest expense - loan payable, and debentures

6/7

301,059

317,143

1,059,413

892,515

Interest - Lease 

15

10,464

-

31,392

-

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

7

152,100

136,754

437,853

409,315

(472,725)

(360,045)

(1,460,806)

(376,654)

Depreciation - Right of use asset

15

28,776

-

86,325

-

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

629

6,830

15,210

19,796

Loss and comprehensive loss

$

(502,130)

$

(366,875)

$

(1,562,341)

$

(396,450)

Gain - Issuance of debentures

7

$

-

$

-

$

5,479

$

-

Reserve for transaction credits - Covid 19 Pandemic

5

$

(528,777)

$

-

$

(528,777)

$

-

Net loss and comprehensive loss

$

(1,030,907)

$

(366,875)

$

(2,085,639)

$

(396,450)

Profit/(Loss) per share

Basic and Diluted

12

$

(0.00)

$

(0.00)

$

(0.00)

$

(0.00)

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

March 31, 2020

March 31, 2019

$

$

Operational activities

Net loss for the period

$

(2,085,639)

$

(396,450)

Adjustments for:

Interest - Lease 

15

31,392

-

Depreciation - Right of use asset

15

86,325

-

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

15,210

19,796

Accretion charge for debentures

7

245,026

222,932

Restructuring bonus for debentures

7

192,827

186,383

Fair value of debentures issued

7

(46,181)

-

(1,561,040)

32,661

Changes in items of working capital

Accounts receivable

19,301

(163,377)

Transaction credits 

4,715,015

(3,711,139)

Prepaid expenses and sundry assets

(8,851)

19,143

Accounts payable and accrued liabilities

344,629

(482,481)

5,070,094

(4,337,854)

Net cash provided by / (used in) operating activities

$

3,509,054

$

(4,305,193)

Investing activities

Payment for lease

15

$

(116,784)

$

-

Purchase of property, plant and equipment, and intangible
assets

45

(2,809)

Net cash (used in) investing activities

$

(116,739)

$

(2,809)

Financing activities

Proceeds - 9% Non-convertible debentures payable

7

$

200,000

$

-

Accrued and unpaid 9% debenture interest

7

$

128,869

$

125,547

Proceeds -  Loan payable

6

(3,626,308)

3,668,917

Net cash generated from / (used in) financing activities

$

(3,297,439)

$

3,794,464

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

$

94,876

$

(513,538)

Cash and cash equivalents at beginning of period

119,636

635,836

Cash and cash equivalents at end of period

$

214,512

$

122,298

Additional information

Interest paid 

$

623,091

$

766,969

For purposes of the cash flow statement, cash comprises 

Cash

$

214,512

$

122,298

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