Vancouver, British Columbia--(Newsfile Corp. - May 30, 2023) - InsuraGuest Technologies, Inc.® (TSXV: ISGI) (OTCQB: ISGIF) ("InsuraGuest" or the "Company"), announces its Company quarterly numbers for the three and nine months ended March 31, 2023.
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 March 31, 2023
During the three months ended March 31, 2023, the Company generated revenues of $285,666 leading to $174,330 of gross margin versus $137,759 revenue and $86,048 gross margin for the same period in fiscal 2022. During the three months ended March 31, 2023, the Company recorded a comprehensive loss of $100,346 as compared to a comprehensive loss of $208,126, for the quarter ended March 31, 2022. The decrease in comprehensive loss was primarily due to a $88,282 increase in gross margin from higher revenues along with a $38,638 reduction in operating expenses.
Revenue increased $147,907 from $137,759 for the three months ended March 31, 2022 to $285,666 for the quarter ended March 31, 2023. The increase was primarily related to $114,363 of continued growth from adding properties on our vacation rental subscription platform along with a $20,202 increase in our ISG Active ski insurance offering.
The decrease in operating expenses was primarily related to cashflow management efforts. The items led to decreased i) advertising and marketing fees by $25,057 to $41,613 in the three months ended March 31, 2023 versus $66,670 in the same period in 2022; ii) consulting fees by $9,819 from $146,600 for the three months ended March 31, 2022 to $136,781for the same period in 2022; iii) travel by $3,255 from $3,472 for the three months ended March 31, 2022 to $217 for the same period in 2023; iv) Management fees by $1,431 from $18,951 for the three months ended March 31, 2022 to $17,520 for the same period in 2023; v) Professional fees by $9,980 from $26,946 for the three months ended March 31, 2022 to $16,966 for the same period in 2023; vi) Office Supplies by $233 from $11,606 for the three months ended March 31, 2022 to $11,373 for the same period in 2023; vii) Transfer agent and filing fees by $3,232 from $4,144 for the three months ended March 31, 2022 to $912 for the same period in 2023.
The cost decreases were partially offset by a $12,336 increase in general and administrative fees from $40,844 in the quarter ended March 31, 2023 to $28,508 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.
Nine Months Ended March 31, 2023
During the nine months ended March 31, 2023, the Company generated revenues of $539,040 leading to $335,512 of gross margin versus $248,674 revenue and $171,131 gross margin for the same period in fiscal 2022. During the nine months ended March 31, 2023, the Company recorded a comprehensive loss of $472,772 compared to a comprehensive loss of $1,126,569, for the nine months ended March 31, 2023. The decrease in comprehensive loss was primarily due to a $164,381 increase in gross margin from higher revenues along with a $468,346 reduction in operating expenses.
Revenue increased $290,366 from $248,674 for the nine months ended March 31, 2022 to $539,040 for the same period in 2023. The increase was primarily related to $196,379 of continued growth from adding properties on our vacation rental subscription platform along with a $86,934 increase in our ISG Active ski insurance offering.
The decrease in operating expenses was primarily related to cashflow management efforts. The items led to decreased i) advertising and marketing fees by $270,654 to $132,086 in the nine months ended March 31, 2023 versus $402,740 in the same period in 2022; ii) consulting fees by $46,192 from $395,428 for the nine months ended March 31, 2022 to $349,236 for the same period in 2023; iii) management fees by $3,474 from $57,054 for the nine months ended March 31, 2022 to $53,580 for the same period in 2023; iv) office supplies by $9,204 from $49,280 for the nine months ended March 31, 2022 to $40,076 for the same period in 2023; v) professional fees by $77,411 from $154,761 for the nine months ended March 31, 2023 to $77,350 for the same period in 2023; vi) share-based payments by $95,750 from $110,410 for the nine months ended March 31, 2022 to $14,660 for the same period in 2023; vii) transfer agent and filing fees by $7,326 from $12,655 for the nine months ended March 31, 2022 to $5,329 for the same period in 2023; viii) travel by $21,174 from $28,629 for the nine months ended March 31, 2022 to $7,455 for the same period in 2023.
The cost decreases were partially offset by a $62,839 increase in general and administrative fees from $63,541 in the quarter ended March 31, 2022 to $126,380 in the same period for 2023 related primarily to an increase in audit fees relating to our growing business and new IFRS standards requiring additional audit procedures.
"We have increased our vacation rental subscription base to over 600 doors and increased our participant event programs revenue by 75% year over year" states Reed Wright InsuraGuest's President. "Now that we have proof of concept for both the subscription based and participant event programs, we plan on increasing our investments in sales and marketing to further drive this revenue growth as we work towards break event operations."
About InsuraGuest Technologies Inc.
Harnessing the Power of Technology to Address Hospitality Industry Needs
InsuraGuest Technologies (TSXV: ISGI) (OTCQB: ISGIF) is an insurtech (insurance + technology) company.
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 and hospitality industries face increasing, and ever-changing governmental regulation. The insurance industry also 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, President
media@InsuraGuest.com
###
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/168027
