RE:results SuperStickman13 wrote:
https://www.globenewswire.com/news-release/2020/08/27/2085175/0/en/Datametrex-Reports-Record-Quarterly-Financial-Results.html
Datametrex loses $868,478 in Q2
2020-08-27 19:41 ET - News Release
Mr. Marshall Gunter reports
DATAMETREX REPORTS RECORD QUARTERLY FINANCIAL RESULTS
Datametrex AI Ltd. had record second quarter 2020 financial and operating results. All results are reported on a 100% basis.
From the beginning of June, the Company started to generate revenues from selling of COVID-19 test kits, and its traditional cyber security AI business expanded. This attributed to record quarterly revenue of $1.9M with a greatly improved cash position.
The company's revenue increased by 419% in Q2 compared to the same period of last year. The Company's cash position improved significantly, $577,998 compared to $119,675 at the end of 2019. The net loss improved with a decrease by 17% ($868,478) compared ($1,011,962) to the same period of last year. There was a $573,250 option issuance expense and $185,078 Depreciation and Amortization expense, which are non-cash based expenses.
Excluding these expenses, the Company was close to break-even. This is reflected in adjusted EBITDA. The Adjusted EBITDA showed a significant improvement. decreasing by 775%, ($96,126) compared to ($841,500) in the same period of last year.
"In Q2 2020, the Company achieved multiple key milestones, a significant increase in gross revenue and improvement in its cash position. This positive outcome was a direct result of our quick response in implementing a plan to begin selling test kits as result of the global impact of the COVID-19 virus. This resulted in a substantial improvement to the bottom line," says Marshall Gunter, CEO of the Company.
Outlook
The Company has a number of potential contracts that it is pursuing and anticipates it will have answers on in Q3. Datametrex is in final stages of a COVID-19 test kit supply agreement with a U.S. Government agency. Under the terms of the agreement, the Company will supply 120,000 1copy COVID-19 qPCR Multi kit every two weeks for six months.
Datametrex is in final stages of a COVID-19 testing supply agreement to test all landed passenger and crew from cruise ships making a port of call for the Caribbean country of Antigua using the 1copy COVID-19 qPCR Multi kit. Under the terms of the agreement, the Company will supply around 6,000 test kits per day and will also supply the latest Polymerase Chain Reaction (PCR) machine (qTOWER3 PCR) to reduce inspection time and lead time. Before landing at the cruise terminal, the cruise line will distribute alphanumeric labels to each passenger and present labels to technicians along with boarding passes and passports at the COVID-19 testing and temperature testing station set up in a passageway exiting the ship.
Datametrex is also in different stages of negotiation on supply agreements for both COVID-19 test kits along with suppling the latest PCR machines (qTOWER3 PCR) with other countries worldwide for mining, education institutions, health agencies, film and TV productions and cruise industry.
Highlights for Q2 2020
Recognized revenue of $2.7 million for the six-month 2020 period compared to $875 thousand in same period 2019, of which $1.9 million was earned in the second quarter.
The Company started securing and delivering purchase orders of COVID-19 test kits and generated $1.4 million COVID-19 related revenue in Q2 2020 compared to $0 in Q2 2019.
The Company has received $1.8 million from the exercise of share purchase warrants and options.
The Company introduced Nexalogy's Social Media Automated Reporting Technologies.
The Company completed the second phase of a multi-phase R&D program through the Department of National Defence's Innovation for Defence Excellence and Security IDEaS program.
Financial Highlights
The following table summarizes revenue, net loss and EBITDA* and Adjusted EBITDA* for the three and six months ended June 30, 2020 and 2019.
Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Revenue 1,954,394 376,518 2,763,796 875,083 Net loss (868,478) (1,011,962) (1,590,239) (1,916,754) EBITDA* (669,376) (830,227) (1,197,679) (1,553,756) EBITDA per share* (0.003) (0.004) (0.005) (0.007) Adjusted EBITDA* (96,126) (841,500) (353,429) (1,553,756) Adjusted EBITDA per share* (0.0004) (0.004) (0.001) (0.007)
* Note: EBITDA ( non- IFRS measures) is calculated as Net Loss adjusted for 1. Income taxes, 2. Depreciation and amortization, and 3. Interest and accretion. Adjusted EBITDA (non-IFRS measures) is calculated as EBITFA adjusted for share based compensation.
Non-IFRS financial measures do not have standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Specific items may only be relevant in certain periods. For reconciliation of non-IFRS financial measures please refer to the Company's Management Discussion and Analysis for the six months ended June 30, 2020.
The Company's Financial Statements and Management Discussion & Analysis ("MD&A") are at SEDAR at www.sedar.com .