Advantex Announces Fiscal 2022 Results

Fiscal 2022

Fiscal 2021

Revenues

$

1,739,697

$

1,229,880

Direct expenses

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

$

416,483

$

293,167

Expense for provision against delinquent accounts,
credit/collection expense

$

325,326

$

75,483

Gross profit

$

997,888

$

861,230

Selling and General & administrative expenses

$

1,802,346

$

1,833,766

Federal Covid-19 wage and rent subsidies

$

(152,032)

$

(548,022)

(Loss) from operations before depreciation, amortization and interest

$

(652,426)

$

(424,514)

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

$

1,250,694

$

910,874

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

$

(1,903,120)

$

(1,335,388)

Interest - Lease

$

5,760

$

13,219

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

$

798,958

$

644,798

Depreciation of right of use asset

$

-

$

45,490

Impairment of right of use asset

$

-

$

53,072

Net (loss) and comprehensive (loss)

$

(2,707,838)

$

(2,091,967)

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

Note

June 30,
2022

June 30,
2021

$

$

Assets

Current assets

Cash

$ 93,185

$ 82,606

Accounts receivable

10 a

83,320

93,090

Transaction credits

10 a

3,312,268

1,726,663

Prepaid expenses and sundry assets

41,589

43,675

$ 3,530,362

$ 1,946,034

Total assets

$ 3,530,362

$ 1,946,034

Liabilities

Current liabilities

Loan payable

5

$ 4,019,685

$ 2,387,439

Lease liability

17

12,768

71,910

Loan

18

60,000

60,000

Accounts payable and accrued liabilities

2,825,914

2,731,158

$ 6,918,367

$ 5,250,507

Non-current liabilities

9% non convertible debentures payable

6

$ 6,953,878

$ 4,694,885

Lease liability

17

-

12,769

$ 4,707,654

Total liabilities

$ 13,872,245

$ 9,958,161

Shareholders' deficiency

Share capital

7

$ 24,530,555

$ 24,530,555

Contributed surplus

7,742,802

7,364,720

Accumulated other comprehensive loss

(47,383)

(47,383)

Deficit

(42,567,857)

(39,860,019)

Total deficiency

$ (10,341,883)

$ (8,012,127)

Total liabilities and deficiency

$ 3,530,362

$ 1,946,034

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

2022

2021

$

$

Revenues

16

Marketing activities

$ 571,699

$ 484,099

Interest income

1,167,998

745,781

1,739,697

1,229,880

Direct expenses

15/16

741,809

368,650

997,888

861,230

Operating expenses

Selling and marketing

15/16

569,827

496,853

General and administrative

15/16

1,080,487

788,891

(Loss) from operations before depreciation, amortization and interest

(652,426)

(424,514)

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

5/6

1,250,694

910,874

Interest - Lease

17

5,760

13,219

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

6

798,958

644,798

Depreciation of right of use asset

17

-

45,490

Impairment of right of use asset

17

-

53,072

Net (loss) and comprehensive (loss)

$ (2,707,838)

$ (2,091,967)

(Loss) per share

Basic and Diluted

14

$ (0.01)

$ (0.07)

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

Class A
preference
shares

Common
shares

Contributed
surplus

Accumulated
other
comprehensive
loss

Deficit

Total

$

$

$

$

$

$

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)

Balance - July 1, 2021

$ 3,815

$ 24,526,740

$ 7,364,720

$ (47,383)

$ (39,860,019)

$ (8,012,127)

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

-

-

378,082

-

-

378,082

Net (loss) and comprehensive (loss)

-

-

-

-

(2,707,838)

(2,707,838)

Balance - June 30, 2022

$ 3,815

$ 24,526,740

$ 7,742,802

$ (47,383)

$ (42,567,857)

$ (10,341,883)

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

Note

June 30,
2022

June 30,
2021

$

$

Operational activities

Net (loss) for the year

$ (2,707,838)

$ (2,091,967)

Adjustments for:

Accrued and unpaid 9% non convertible debentures payable interest

6

773,733

554,888

Interest - Lease

17

5,760

13,219

Depreciation of right of use asset

17

-

45,490

Impairment of right of use asset

17

-

53,072

Accretion charge - 9% non convertible debentures payable

6

710,452

453,036

Restructuring bonus - 9% non convertible debentures payable

6

73,063

178,455

Amortization of transaction costs - 9% non convertible debentures payable

6

15,443

13,307

(1,129,387)

(780,500)

Changes in items of working capital

Accounts receivable

9,770

25,811

Transaction credits

(1,585,605)

2,197,254

Prepaid expenses and sundry assets

2,086

15,106

Accounts payable and accrued liabilities

94,756

366,399

(1,478,993)

2,604,570

Net cash (used)/generated - operating activities

$ (2,608,380)

$ 1,824,070

Financing activities

Gross proceeds - 9% non convertibles debentures payable

6

$ 1,150,000

$ 250,000

Transaction costs - 9% non convertible debentures payable

6

(85,616)

(118,827)

Loan - Canada Emergency Bank Account

-

20,000

Payment for lease

(77,671)

(77,671)

Proceeds of loan payable

5

8,868,861

2,389,750

(Repayment) of loan payable

(7,236,615)

(4,371,317)

Net cash generated/(used) - financing activities

$ 2,618,959

$ (1,908,065)

Increase/(Decrease) in cash during the year

$ 10,579

$ (83,995)

Cash at beginning of the year

82,606

166,601

Cash at end of the year

$ 93,185

$ 82,606

Additional information

Interest paid

$ 476,961

$ 355,986

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