Vancouver, British Columbia--(Newsfile Corp. - February 22, 2023) - InsuraGuest Technologies, Inc.® (TSXV: ISGI) (OTCQB: ISGIF) ("InsuraGuest" or the "Company"), announces its Company quarterly numbers for the three and six months ended December 31, 2022.
InsuraGuest Technologies Inc. is a publicly traded Canadian insurtech (insurance + technology) software company ("ISGI") with offices in Vancouver, British Columbia and Salt Lake City, Utah. Our proprietary software platform delivers digitally embedded, opt-in, and subscription-based insurance packages directly to our members on a business-to-business and business-to-consumer basis. The Company also provides insurance agents and brokers the ability to sign up instantly online through its automated agency/broker software platform. These brokers and agents then become channels to sell the Company's products to their own customers, speeding up the process of distributing products through the insurtech platform.
Quarter Ended December 31, 2022
During the three months ended December 31, 2022, the Company generated revenues of $171,969 leading to $106,570 of gross margin versus $70,189 revenue and $52,898 gross margin for the same period in fiscal 2021. During the three months ended December 31, 2022, the Company recorded a comprehensive loss of $181,435 as compared to a comprehensive loss of $319,493, for the quarter ended December 31, 2021. The decrease in comprehensive loss was primarily due to a $53,672 increase in gross margin from higher revenues along with a $83,558 reduction in operating expenses.
Revenue increased $101,780 from $70,189 for the three months ended December 31, 2021 to $171,969 for the quarter ended December 31, 2022. The increase was primarily related to $61,577 of continued growth from adding properties on our vacation rental subscription platform along with a $40,203 increase in our ISG Active ski insurance offering.
The decrease in operating expenses was primarily related to cashflow management efforts and one-time fundraising expenses from exercise of options and warrants from the Company's June 2021 unit offering. The items led to decreased i) advertising and marketing fees by $63,082 to $51,832 in the three months ended December 31, 2022 versus $114,914 in the same period in 2021; ii) consulting fees by $27,975 from $142,850 for the three months ended December 31 2021 to $114,875 for the same period in 2022; and iii) travel by $10,954 from $14,768 for the three months ended December 31 2021 to $3,814 for the same period in 2022.
The cost decreases were partially offset by a $25,065 increase in general and administrative fees from $18,165 in the quarter ended December 31, 2021 to $43,230 in the same period in 2022 related to an increase in audit fees relating to our growing business and new IFRS standards requiring additional audit procedures.
Six Months Ended December 31, 2022
During the six months ended December 31, 2022, the Company generated revenues of $253,374 leading to $161,182 of gross margin versus $110,915 revenue and $85,083 gross margin for the same period in fiscal 2021. During the six months ended December 31, 2022, the Company recorded a comprehensive loss of $372,426 compared to a comprehensive loss of $918,443, for the six months ended December 31, 2021. The decrease in comprehensive loss was primarily due to a $76,099 increase in gross margin from higher revenues along with a $429,708 reduction in operating expenses.
Revenue increased $142,459 from $110,915 for the six months ended December 31, 2021 to $253,374 for the same period in 2022. The increase was primarily related to $102,256 of continued growth from adding properties on our vacation rental subscription platform along with a $40,203 increase in our ISG Active ski insurance offering.
The decrease in operating expenses was primarily related to cashflow management efforts and one-time fundraising expenses from exercise of options and warrants from the Company's June 2021 unit offering. The items led to decreased i) advertising and marketing fees by $245,597 to $90,473 in the six months ended December 31, 2022 versus $336,070 in the same period in 2021; ii) consulting fees by $36,373 from $248,828 for the six months ended December 31 2021 to $212,455 for the same period in 2022; iii) professional fees by $67,431 from $127,815 for the six months ended December 31 2021 to $60,384 for the same period in 2022; iv) share-based payments by $97,783 from $110,410 for the six months ended December 31 2021 to $12,627 for the same period in 2022; and v) travel by $17,919 from $25,157 for the six months ended December 31 2021 to $7,238 for the same period in 2022.
The cost decreases were partially offset by a $50,503 increase in general and administrative fees from $35,033 in the quarter ended December 31, 2021 to $85,536 in the same period for 2022 related primarily to an increase in audit fees relating to our growing business and new IFRS standards requiring additional audit procedures.
"The execution of our business plan has led to the revenue growth seen over the last six months including reaching over 450 doors in our vacation rental subscription product and increasing that revenue by 145% year-over-year along with increasing our events-based ski insurance revenue by 108%," states Reed Wright InsuraGuest's President. "With our continued success and business model validation, we are deploying additional investments in sales and marketing to further drive this revenue growth while decreasing internal expenses."
About InsuraGuest Technologies Inc.
Harnessing the Power of Technology to Reinvent Insurance
InsuraGuest Technologies (TSXV: ISGI) (OTCQB: ISGIF) is an insurtech (insurance + technology) company that is disrupting the insurance landscape by utilizing its proprietary software platform to embed its short-term rental insurance products to vacation rentals, sports and ticketed events, hotels, and resorts.
CA / LIC: 6001686
For more information, visit the company's website at: www.InsuraGuest.com
The Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions, and expectations. There is no assurance that this new business product offering or other planned products will be successful. The insurance industry is intensely competitive, and the Company's competitors have significantly more resources than the Company. Acceptance by potential customers is difficult to predict, particularly in the case of new products and disruptive technologies. If the Company fails to achieve market acceptance, this will significantly impact its results and financial resources. Achieving market acceptance may require advertising budgets that exceed the Company's current resources and require the Company to seek additional debt or equity financing. There is no assurance that such financing will be available at reasonable prices or at all. Other risk factors are identified in our quarterly filing and should be read and considered in connection with this release.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Company Contact:
InsuraGuest Technologies, Inc.
Media Relations
Reed Wright
media@InsuraGuest.com
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