Advantex Announces Fiscal 2021 Results

Fiscal 2021

Fiscal 2020

Inc./(Dec)

Inc./(Dec)

$

$

$

%

Revenues

$

1,229,880

$

2,609,542

$

(1,379,662)

Direct expenses

Costs of loyalty rewards, and marketing in connection with Advantex's merchant based loyalty
program

$

293,167

$

387,027

$

(93,860)

Expense for provision against delinquent accounts

$

75,483

$

1,022,015

$

(946,532)

Gross profit

$

861,230

$

1,200,500

$

(339,270)

-28.3%

Selling and General & Administrative expenses

1,285,744

$

2,065,763

$

(780,019)

(Loss) from operations before depreciation, amortization and interest

$

(424,514)

$

(865,263)

$

(440,749)

-50.9%

Stated interest expense - loan payable, and 9% non convertible debentures payable

$

910,874

$

1,319,950

$

(409,076)

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

$

(1,335,388)

$

(2,185,213)

$

(849,825)

-38.9%

Interest - Lease

$

13,219

$

19,904

$

(6,685)

Interest expense - Accretion charges, restructuring bonus and amortization of transaction costs
related to 9% non convertible debentures payable

$

644,798

$

598,733

$

46,065

Depreciation of right of use asset

$

45,490

$

65,336

$

(19,846)

Depreciation of property, plant and equipment

$

-

$

15,210

$

(15,210)

Impairment of right of use asset

$

53,072

$

43,000

$

10,072

Net (loss) and comprehensive (loss)

$

(2,091,967)

$

(2,927,396)

$

(835,429)

-28.5%

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

Note

June 30,
2021

June 30,
2020

$

$

Assets

Current assets

Cash

$

82,606

$

166,601

Accounts receivable

10 a

93,090

118,901

Transaction credits

10 a

1,726,663

3,923,917

Prepaid expenses and sundry assets

58,781

$

1,946,034

$

4,268,200

Non-current assets

Right of use asset

17

$

-

$

98,562

$

-

$

98,562

Total assets

$

1,946,034

$

4,366,762

Liabilities

Current liabilities

Loan payable

5

$

2,387,439

$

4,369,006

Lease liability

17

71,910

64,452

Loan

18

60,000

40,000

Accounts payable and accrued liabilities

2,731,158

2,364,759

9% non convertible debentures payable

6

-

6,611,576

$

5,250,507

$

13,449,793

Non-current liabilities

9% non convertible debentures payable

6

4,694,885

-

Lease liability

17

$

12,769

$

84,679

$

4,707,654

$

84,679

Total liabilities

$

9,958,161

$

13,534,472

Shareholders' deficiency

Share capital

7

$

24,530,555

$

24,530,555

Contributed surplus

7,364,720

4,117,170

Accumulated other comprehensive loss

(47,383)

(47,383)

Deficit

(39,860,019)

(37,768,052)

Total deficiency

$

(8,012,127)

$

(9,167,710)

Total liabilities and deficiency

$

1,946,034

$

4,366,762

Going concern (note 2a) and Commitments and contingencies (note 12)

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

Approved by the Board

Director:Signed "Marc Lavine"

Director:Signed "Kelly Ambrose"

Marc Lavine

Kelly Ambrose

Note

2021

2020

$

$

Revenues

16

Marketing activities

$

484,099

$

718,690

Interest income

745,781

1,890,852

1,229,880

$

2,609,542

Direct expenses

15/16

368,650

1,409,042

861,230

1,200,500

Operating expenses

Selling and marketing

15/16

496,853

718,267

General and administrative

15/16

788,891

1,347,496

(Loss) from operations before depreciation, amortization and interest

(424,514)

(865,263)

Stated interest expense - loan payable, and 9% non convertible debentures payable

5/6

910,874

1,319,950

Interest - Lease

17

13,219

19,904

Non-cash interest expense - accretion charges,
restructuring bonus and amortization of transaction costs
related to 9% non convertible debentures payable

6

644,798

598,733

Depreciation of right of use asset

17

45,490

65,336

Depreciation of property, plant and equipment

4

-

15,210

Impairment of right of use asset

17

53,072

43,000

Net (loss) and comprehensive (loss)

$

(2,091,967)

$

(2,927,396)

(Loss) per share

Basic and Diluted

14

$

-

$

-

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

Class A preference shares

Common shares

Contributed surplus

Accumulated other comprehen - sive loss

Deficit

Total

$

$

$

$

$

$

Balance - July 1, 2019

$

3,815

$

24,526,740

$

4,090,382

$

(47,383)

$

(34,840,656)

$

(6,267,102)

Issuance of 9% non convertible debentures payable (note 6)

-

-

26,788

-

-

26,788

Net (loss) and comprehensive (loss)

-

-

-

-

(2,927,396)

(2,927,396)

Balance - June 30, 2020

$

3,815

$

24,526,740

$

4,117,170

$

(47,383)

$

(37,768,052)

$

(9,167,710)

Balance - July 1, 2020

$

3,815

$

24,526,740

$

4,117,170

$

(47,383)

$

(37,768,052)

$

(9,167,710)

Issuance of 9% non convertible debentures payable (note 6)

-

-

3,247,550

-

-

3,247,550

Net (loss) and comprehensive (loss)

-

-

-

-

(2,091,967)

(2,091,967)

Balance - June 30, 2021

$

3,815

$

24,526,740

$

7,364,720

$

(47,383)

$

(39,860,019)

$

(8,012,127)

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

Note

June 30,
2021

June 30,
2020

$

$

Operational activities

Net (loss) for the year

$

(2,091,967)

$

(2,927,396)

Adjustments for:

Accrued and unpaid 9% non convertible debentures payable interest

6

554,888

512,761

Interest - Lease

17

13,219

19,904

Depreciation of right of use asset

17

45,490

65,336

Depreciation of property, plant and equipment

4

-

15,210

Impairment of right of use asset

17

53,072

43,000

Loss on disposal of property, plant & equipment

-

45

Accretion charge - 9% non convertible debentures payable

6

453,036

327,181

Restructuring bonus - 9% non convertible debentures payable

6

178,455

259,028

Amortization of transaction costs - 9% non convertible debentures payable

6

13,307

12,524

(780,500)

(1,672,407)

Changes in items of working capital

Accounts receivable

25,811

(8,271)

Transaction credits

2,197,254

5,550,082

Prepaid expenses and sundry assets

15,106

(6,549)

Accounts payable and accrued liabilities

366,399

109,554

2,604,570

5,644,816

Net cash generated - operating activities

$

1,824,070

$

3,972,409

Financing activities

Gross proceeds - 9% non convertible debentures payable

6

$

250,000

$

200,000

Transaction costs - 9% non convertible debentures payable

6

(118,827)

(40,703)

Payment for lease

(77,671)

(77,671)

Proceeds from loan - Canada Emergency Business Account

18

20,000

40,000

(Decrease) of loan payable

5

(1,981,567)

(4,047,070)

Net cash (used) - financing activities

$

(1,908,065)

$

(3,925,444)

Increase/(Decrease) in cash during the year

$

(83,995)

$

46,965

Cash at beginning of the year

166,601

119,636

Cash at end of the year

$

82,606

$

166,601

Additional information

Interest paid

$

355,986

$

807,189

Cash

$

82,606

$

166,601

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