Corporate Performance - continued
The Company’s performance generated significant positive cashflow from operations which was augmented by
$797,374 in net positive cashflows from financing activities. Financing activities were highlighted by a private
placement that generated $1,260,000 in gross proceeds. The Company initially announced a private placement in the
amount of $500,000 but, in response to market demand, promptly increased it to $1,250,000, and still had it be slightly
oversubscribed when it closed a month later. The outflows included the normal-course repayment of the Company’s
bank operating loan, long-term debt, and lease obligation.
The only significant net use of cash during the year was from investing activities where the Company spent $687,370
on the acquisition of equipment. Most of this expenditure related to the acquisition and installation of new state of
the art processing equipment and related equipment. At the start of the third quarter, the Company obtained approval
from its financial institution for a new term loan facility. That term facility provided the assurances necessary for the
Company to order new processing equipment. In the five months it took for the new machinery to be manufactured
outside Canada, delivered to the Company, and get fully installed, the financial position of the Company improved to
the point where the Company opted to self-finance this acquisition from available funds, and nothing was drawn from
the term facility. The new equipment supplanted aging equipment in one of the Company’s primary production lines
providing certain efficiencies, and greater breadth of capabilities, but most importantly a reliable source of production
for many years based on its estimated useful life of 20 years. The aging equipment was repositioned for use in
processing prototypes and other very small runs as well as augmenting the main lines when demand warrants it.
It should be noted that revenues for the fourth quarter exceeded management’s expectations because of two favourable
factors. The arrival and installation of the new equipment was less disruptive to production than anticipated, and the
arrival of certain materials earlier than forecast by suppliers allowed product projected to be completed and shipped
in Q1 2025 to be shipped in Q4 2024. These results should not be seen to contradict comments made in our Q3 2024
MD&A advising of indications that market demand may be easing but that it was too soon to know whether these
indications are fleeting or may be suggestive of future results. Along these lines, as of the date of this document, it is
known that revenues for Q1 2025 will exceed Q1 2024 but will not be at record levels. Additionally, we do not have
any clear indication on how market demand looks going forward, but note that the Company’s order log remains
strong, and customers have suggested that new orders may arise very soon, but those orders are yet to be placed.
The following data may provide some additional insights relative to the Company’s operating performance and
financial position:
For the fiscal years ended:
June 2024 June 2023 June 2022
Total Revenues 9,756,044 5,702,239 4,415,275
Net income (loss) for the year 1,753,269 165,274 (266,878)
Per share - basic 0.058 0.006 (0.010)
Total assets 7,007,632 3,941,742 3,081,924
Total long-term financial liabilities 359,173 518,717 729,032
Total liabilities 2,510,914 2,834,331 2,198,767