Advantex Announces Fiscal 2023 First Quarter Results

September 2022

September 2021

Inc./(Dec)

Revenues

$

584,837

$

373,297

$

211,540

Direct expenses

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

$

164,996

$

138,171

$

26,825

Expense for provision against delinquent accounts, credit/collection expense

$

6,180

$

1,466

$

4,714

Gross profit

$

413,661

$

233,660

$

180,001

Selling and General & administrative expenses

$

421,020

$

450,506

$

(29,487)

Federal Covid-19 wage and rent subsidies

$

(1,888)

$

(101,000)

$

(99,113)

(Loss) from operations before depreciation, amortization and interest

$

(5,471)

$

(115,846)

$

(110,375)

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

$

314,077

$

244,207

$

69,870

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

$

(319,548)

$

(360,053)

$

(40,505)

Interest - Lease

$

180

$

2,172

$

(1,992)

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

$

211,676

$

194,183

$

17,493

Net (loss) and comprehensive (loss)

$

(531,404)

$

(556,408)

$

(25,004)

Note

September 30,
2022

June 30,
2022

$

$

Assets

Current assets

Cash

$ 156,938

$ 93,185

Accounts receivable

73,103

83,320

Transaction credits

5

1,639,763

3,312,268

Prepaid expenses and sundry assets

1,589

41,589

$ 1,871,393

$ 3,530,362

Total assets

$ 1,871,393

$ 3,530,362

Liabilities

Current liabilities

Loan payable

6

$ 2,420,240

$ 4,019,685

Lease liability

15

-

12,768

Loan

16

60,000

60,000

Accounts payable and accrued liabilities

2,896,743

2,825,914

$ 5,376,983

$ 6,918,367

Non-current liabilities

9% non convertible debentures payable

7

$ 7,367,697

$ 6,953,878

$ 7,367,697

$ 6,953,878

Total liabilities

$ 12,744,680

$ 13,872,245

Shareholders' deficiency

Share capital

8

$ 24,530,555

$ 24,530,555

Contributed surplus

7,742,802

7,742,802

Accumulated other comprehensive loss

(47,383)

(47,383)

Deficit

(43,099,261)

(42,567,857)

Total deficiency

$ (10,873,287)

$ (10,341,883)

Total liabilities and deficiency

$ 1,871,393

$ 3,530,362

Going concern (note 2) and Commitments and contingencies (note 11)

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

14

Marketing activities

$ 216,577

$ 197,468

Interest income

368,260

175,829

$ 584,837

$ 373,297

Direct expenses

13/14

171,176

139,637

413,661

233,660

Operating expenses

Selling and marketing

13/14

134,747

147,898

General and administrative

13/14

284,385

201,608

(Loss) from operations before depreciation, amortization and interest

(5,471)

(115,846)

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

6/7

314,077

244,207

Interest - Lease

15

180

2,172

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

7

211,676

194,183

Net (loss) and comprehensive (loss)

$ (531,404)

$ (556,408)

(Loss) per share

Basic and Diluted

12

$ (0.00)

$ (0.01)

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 at 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 7)

-

-

402,725

-

-

402,725

Net (loss) and comprehensive (loss)

-

-

-

-

(556,408)

(556,408)

Balance at September 30, 2021

$ 3,815

$ 24,526,740

$ 7,767,445

$ (47,383)

$ (40,416,427)

$ (8,165,810)

Balance at July 1, 2022

$ 3,815

$ 24,526,740

$ 7,742,802

$ (47,383)

$ (42,567,857)

$ (10,341,883)

Net (loss) and comprehensive (loss)

-

-

-

-

(531,404)

(531,404)

Balance at September 30, 2022

$ 3,815

$ 24,526,740

$ 7,742,802

$ (47,383)

$ (43,099,261)

$ (10,873,287)

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

Note

2022

2021

$

$

Operational activities

Net (loss) for the period

$ (531,404)

$ (556,408)

Adjustments for:

Accrued and unpaid 9% non convertible debentures payable interest

7

202,143

173,506

Interest - Lease

15

180

2,172

Accretion charge - 9% non convertible debentures payable

7

187,360

173,944

Restructuring bonus - 9% non convertible debentures payable

7

19,304

18,749

Amortization of transaction costs - 9% non convertible debentures payable

7

5,012

1,490

(117,405)

(186,547)

Changes in items of working capital

Accounts receivable

10,217

(8,386)

Transaction credits

1,672,505

(1,154,293)

Prepaid expenses and sundry assets

40,000

(1,998)

Accounts payable and accrued liabilities

70,829

(10,694)

1,793,551

(1,175,371)

Net cash generated/(used) - operating activities

$ 1,676,146

$ (1,361,918)

Financing activities

Gross proceeds - 9% non convertible debentures payable

7

$ -

$ 1,000,000

Transaction costs - 9% non convertible debentures payable

7

-

(77,501)

Payment for lease

15

(12,948)

(19,419)

Proceeds of loan payable

6

628,452

2,190,551

(Repayment) of loan payable

(2,227,897)

(1,178,917)

Net cash generated/(used) - financing activities

$ (1,612,393)

$ 1,914,714

Increase in cash during the period

$ 63,753

$ 552,796

Cash at beginning of the period

93,185

82,606

Cash at end of the period

$ 156,938

$ 635,402

Additional information

Interest paid

$ 111,934

$ 70,701