Toronto, Ontario--(Newsfile Corp. - August 27, 2024) - Eddy Smart Home Solutions Ltd. (TSXV: EDY) ("Eddy" or the "Company") is pleased to announce its financial results for the three and six months ended June 30, 2024.
Q2 2024 Highlights
Message from our CEO
"This has been a pivotal quarter, as part of the private placement the credit facility of $1.1 million was converted into common shares and now with the repayment of the $5.6 million working capital facility, the balance sheet has been strengthened and our financial flexibility increased with over $785k in annual interest savings. With our cash flow from operations improving from ($611,523) in Q2 2023 to ($80,883) for Q2 2024 we are trending in the right direction and continue to add devices which translates to additional recurring revenue. We also have a significant back log of devices contracted but yet to be installed."
Growth in In-Building Devices
Eddy has increased the number of in-building devices by 60%, from 60,707 as of June 30, 2023, to 97,277 as of June 30, 2024. This significant growth is expected to drive additional revenue and underscores the increasing market acceptance of Eddy's technology and significant market traction.
Enhanced Cash Flow
Cash flow used in operating activities improved by $530,640 to ($80,883) for Q2 2024, compared to ($611,523) in Q2 2023. For the six months ended June 30, 2024, cash used in operating activities improved by $1,672,269 to ($882,791) from ($2,555,060) in the comparable period in 2023. This is due to higher revenue, reduced expenses and improvements in working capital management.
Reduced Expenses
Eddy has significantly reduced its general and administrative (G&A) expenses from $1,904,324 in Q2 2023 to $1,291,504 in Q2 2024. For the six months ended June 30, 2024, G&A has been reduced from $3,850,611 during 2023 to $1,992,354 for the current period to date (an improvement of $1,858,257). These reductions highlight the company's commitment to operational efficiency and cost management.
Closed Private Placement
On June 28, 2024, Eddy closed a non-brokered private placement previously announced by the Company in May 2024, through the issuance of 5,333,333 (at $1.50 per post-consolidation share) for gross proceeds of $8,000,000 (the "Offering").
Share consolidation
Prior to completion of the Offering, the Company consolidated its common shares on the basis of one post-consolidation common share for every 100 pre-consolidation common shares.
Credit Facility Conversion and Working Capital Facility Repayment
The private placement included the conversion of the credit facility amounting to $1,163,880 into 775,920 common shares (at $1.50 per post consolidation share).
Subsequent to period end, on July 15, 2024, the Company repaid the full amount owing under the working capital facility of $5,589,671, with the balance of the private placement proceeds to be used for general working capital purposes.
Chief Operating Officer Appointment
On August 8, 2024, the Company appointed Adam Bartman as the new Chief Operating Officer.
Mr. Bartman served as the Company's EVP of Operations has been instrumental in the Company's growth and innovation. With over a decade of experience in the plumbing and mechanical industry, Adam Bartman has a deep understanding of the challenges and opportunities in this sector. His leadership and vision have been pivotal in establishing Eddy Solutions as a leader in smart water management technology. As COO, Adam will oversee the company's day-to-day operations, focusing on enhancing operational efficiency, driving strategic initiatives, and fostering a culture of continuous improvement.
Improved Financial Performance
Eddy has significantly reduced its net loss to ($1,313,214) for Q2 2024, a substantial improvement from the net loss of ($2,129,532) in Q2 2023. For the six months ended June 30, 2024, the net loss was ($1,786,033) compared to ($4,181,826) for the comparable period to date, which represents a significant improvement of $2,395,793.
The year-to-date improvement reflects higher revenues, enhanced operational efficiencies, and reduced expenses. The average net loss per month was ($218,869), compared to ($696,971) for comparable period to date.
Revenue
For the three months ended June 30, 2024, revenue increased by $207,288 to $747,548 as compared to $540,260 reported for the comparable quarter.
For the six months ended June 30, 2024, revenue increased by $306,233 to $1,788,857 as compared to $1,482,624 reported for the comparable period in 2023 (an increase of 20%).
Recurring Billings
Billings represent the amount billed to customers for monthly monitoring and equipment rentals.
For the three months ended June 30, 2024, the recurring billings amounted to $687,757 (2023 - $555,509), an increase of $132,248 over the comparable quarter.
For the six months ended June 30, 2024, the recurring billings amounted to $1,351,174 (2024 - $980,390), an increase of $370,784 over the comparable period in 2023 (an increase of 38%).
Basic and Diluted Loss Per Share
Basic and diluted loss per share improved to ($1.47) in Q2 2024 from ($2.68) in Q2 2023.
Basic and diluted loss per share improved to ($2.11) for the six months ended June 30, 2024, from ($5.25) reported for the comparable period in 2023, this reflects the Company's progress towards financial stability.
Prior period share amounts have been retrospectively adjusted to reflect the Share Consolidation, which became effective on June 28, 2024.
About Eddy
Eddy is a leading North American provider and developer of smart water metering products and monitoring services for residential and commercial properties. Eddy's solutions help property owners and developers protect, control, and conserve water usage through advanced sensing devices and behavioral learning software. For more information, visit www.eddysolutions.com.
For further details on the company's financial performance, please review our consolidated financial statements and management's discussion and analysis for the years ended December 31, 2023, and 2022, available on Eddy's SEDAR profile at www.sedar.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of applicable securities laws. These statements reflect management's current expectations and are based on assumptions and estimates that involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ are discussed in the company's most recent management's discussion and analysis under "Risks And Uncertainties," available at www.sedar.com. Eddy undertakes no obligation to update these statements, except as required by law.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/221309
