Toronto, Ontario--(Newsfile Corp. - May 27, 2021) - BeWhere (TSXV: BEW) (OTCQB: BEWFF) ("BeWhere" or the "Company"), a Mobile Internet of Things (M-IoT) company, is pleased to announce its financial results for three months ended March 31, 2021.
Owen Moore, CEO and Co-Founder, stated, "The Company progressed well during the first quarter despite a second wave of COVID-19". He further noted that "the Company remains focused on investing in new technology development with the release of the BeMini in the coming weeks."
Chris Panczuk, COO and Co-Founder stated, "We are very pleased with the continued support for our MIoT devices and solutions which is reflected by receipt of new purchase orders for 45,000 devices in 2021."
First Quarter 2021 Highlights
- Total Revenue increased by 23% year over year - Total Revenue for the three months ended March 31, 2021 was $1,730,450 compared to $1,406,248 for the same period in 2020: an increase of $324,202.
- Recurring Revenue increased by 1% year over year - Recurring Revenue for the three months ended March 31, 2021 was $737,764 compared to $732,298 for the same period in 2020: an increase of $5,466. The Company uses Recurring revenue as a key performance indicator (KPI) as it shows the long-term nature of revenue earned from our customer relationships.
- Recurring Revenue contracts - The Company renegotiated a three-year contract with one of its large customers for Recurring revenue. The initial contract entailed pass-through billing for third party application and data fees. Under the new arrangement all pass-through third-party application and data fees will not be invoiced by the Company, and the company will only invoice the monthly fees for the services supplied by BeWhere. This arrangement will have no impact on the gross profit or net income but will see a decline in the Total revenue. This arrangement allows the Company to focus on its net profits.
- Gross Profit increased by 25% year over year - Gross profit for the three months ended March 31, 2021 was $434,110 compared to $346,716 for the same period in 2020: an improvement of $87,394.
- Working Capital - At March 31, 2021, the Company had a working capital balance of $3,564,703 including cash of $2,337,528. The Company maintained a healthy working capital despite incurring development costs totaling $169,010 for its next generation of M-IoT sensors and solutions.
- Adjusted EBITDA (non-IFRS measure) - The Company recorded positive adjusted EBITDA during the first quarter, representing the sixth consecutive quarter of positive EBITDA. Adjusted EBITDA for the three months ended March 31, 2021 was $72,940 compared to $1,844 for the same period in 2020.
- Purchase orders - Subsequent to March 31, 2021 and as a follow up to previous announcement of April 22, 2021, the Company has received purchase orders for additional 20,000 devices. This includes additional order of 1,000 devices from New York City. The Company has received purchase orders for a total of 45,000 devices in 2021, these devices are planned to be rolled out during fiscal 2021. In view of the global shortage of certain parts, the Company has already placed advance orders in order to mitigate interruption in production.
- Grant of Options - The Company announces that it has granted an aggregate of 300,000 options to purchase 300,000 Common Shares at an exercise price of $0.20 per share, which options will expire in May 2026, to three independent directors.