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Advantex Announces Fiscal 2022 First Quarter Results

TORONTO, Nov. 25, 2021 /CNW/ – Advantex Marketing International Inc. (CSE: ADX) (“Advantex”), a leader in the merchant cash advance and loyalty marketing products for merchants, announced its results for three months ended September 30, 2021.

Highlights of financial results for three months ended September 30, 2021 compared to three months ended September 30, 2020:

September 2021

September 2020

Inc./(Dec)

Inc./(Dec)

$

$

$

%

Revenues

$

373,297

$

311,772

$

61,525

19.7%

Direct expenses

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

$

138,171

$

61,717

$

76,454

Expense for provision against delinquent accounts

$

1,466

$

28,727

$

(27,261)

Gross profit

$

233,660

$

221,328

$

12,332

5.6%

Selling and General & Administrative expenses

$

349,506

$

309,862

$

39,644

(Loss) from operations before depreciation, amortization and interest

$

(115,846)

$

(88,534)

$

27,312

30.8%

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

$

244,207

$

246,841

$

(2,634)

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

$

(360,053)

$

(335,375)

$

24,678

7.4%

Interest – Lease

$

2,172

$

3,960

$

(1,788)

Interest expense – Accretion charges,  restructuring bonus and amortization of transaction costs
related to 9% non convertible debentures payable

$

194,183

$

158,113

$

36,070

Depreciation of right of use asset

$                    –

$

11,373

$

(11,373)

Net (loss) and comprehensive (loss)

$

(556,408)

$

(508,821)

$

47,587

9.4%

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

The above tabulation is a non-GAAP presentation and is provided to assist readers in understanding Advantex’s financial performance. The information is extracted from consolidated financial statements for three months ended September 30, 2021.

About Advantex:

Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn Aeroplan points at participating merchants.

Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information go to Advantex’s profile on www.sedar.com

Advantex Marketing International Inc.
Consolidated Statements of Financial Position (unaudited)
(expressed in Canadian dollars)

Note

September 30,
2021

June 30,  
2021

$

$

Assets

Current assets

Cash 

$

635,402

$

82,606

Accounts receivable

101,476

93,090

Transaction credits 

5

2,880,956

1,726,663

Prepaid expenses and sundry assets

45,673

43,675

$

3,663,507

$

1,946,034

Total assets

$

3,663,507

$

1,946,034

Liabilities

Current liabilities

Loan payable 

6

$

3,399,073

$

2,387,439

Lease liability

15

67,432

71,910

Loan

16

60,000

60,000

Accounts payable and accrued liabilities

2,720,464

2,731,158

$

6,246,969

$

5,250,507

Non-current liabilities

9% non convertible debentures payable

7

$

5,582,348

$

4,694,885

Lease liability

15

12,769

$

5,582,348

$

4,707,654

Total liabilities

$

11,829,317

$

9,958,161

Shareholders’ deficiency

Share capital 

8

$

24,530,555

$

24,530,555

Contributed surplus

7,767,445

7,364,720

Accumulated other comprehensive loss

(47,383)

(47,383)

Deficit

(40,416,427)

(39,860,019)

Total deficiency

$

(8,165,810)

$

(8,012,127)

Total liabilities and deficiency

$

3,663,507

$

1,946,034

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

Advantex Marketing International Inc.
Consolidated Statements of Loss and Comprehensive Loss (unaudited)
For the three months ended September 30, 2021 and 2020
(expressed in Canadian dollars)

Note

2021

2020

$

$

Revenues

14

Marketing activities

$

197,468

$

112,958

Interest income 

175,829

198,814

$

373,297

$

311,772

Direct expenses

13/14

139,637

90,444

233,660

221,328

Operating expenses

Selling and marketing

13/14

147,898

147,165

General and administrative

13/14

201,608

162,697

(Loss) from operations before depreciation, amortization and interest

(115,846)

(88,534)

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

6/7

244,207

246,841

Interest – Lease

15

2,172

3,960

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

7

194,183

158,113

Depreciation of right of use asset

15

11,373

Net (loss) and comprehensive (loss)

$

(556,408)

$

(508,821)

(Loss) per share

Basic and Diluted

12

$

$

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

Advantex Marketing International Inc.
Consolidated Statements of Changes in Shareholders’ Deficiency (unaudited)
For the three months ended September 30, 2021 and 2020
(expressed in Canadian dollars)

Class A preference shares

Common shares

Contributed surplus

Accumulated other comprehen – sive loss

Deficit

Total

$

$

$

$

$

$

Balance – July 1, 2020

$

3,815

$

24,526,740

$

4,117,170

$

(47,383)

$

(37,768,052)

$

(9,167,710)

Net (loss) and comprehensive (loss)

(508,821)

(508,821)

Balance – September 30, 2020

$

3,815

$

24,526,740

$

4,117,170

$

(47,383)

$

(38,276,873)

$

(9,676,531)

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 7)

402,725

402,725

Net (loss) and comprehensive (loss)

(556,408)

(556,408)

Balance – September 30, 2021

$

3,815

$

24,526,740

$

7,767,445

$

(47,383)

$

(40,416,427)

$

(8,165,810)

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

Advantex Marketing International Inc.
Consolidated Statements of Cash Flow (unaudited)
For the three months ended September 30, 2021 and 2020
(expressed in Canadian dollars)

Note

2021

2020

$

$

Operational activities

Net (loss) for the period

$

(556,408)

$

(508,821)

Adjustments for:

Accrued and unpaid 9% non convertible debentures payable interest 

7

173,506

130,286

Interest – Lease

15

2,172

3,960

Depreciation of right of use asset

15

11,373

Accretion charge – 9% non convertible debentures payable

7

173,944

86,488

Restructuring bonus – 9% non convertible debentures payable

7

18,749

66,928

Amortization of transaction costs – 9% non convertible debentures payable

7

1,490

4,697

(186,547)

(205,089)

Changes in items of working capital

Accounts receivable

(8,386)

5,329

Transaction credits 

(1,154,293)

733,875

Prepaid expenses and sundry assets

(1,998)

6,094

Accounts payable and accrued liabilities

(10,694)

76,777

(1,175,371)

822,075

Net cash (used)/generated – operating activities

$

(1,361,918)

$

616,986

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

(19,419)

(19,418)

Increase/(Decrease) of loan payable

6

1,011,634

(707,370)

Net cash generated/(used) – financing activities

$

1,914,714

$

(726,788)

Increase/(Decrease) in cash during the period

$

552,796

$

(109,802)

Cash at beginning of the period

82,606

166,601

Cash at end of the period

$

635,402

$

56,799

Additional information

Interest paid 

$

70,701

$

116,555

Cash 

$

635,402

$

56,799

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

 

SOURCE Advantex Marketing International Inc.

Written by Tenner Smith

Tenner Smith - I have experience in financial intelligence and automated intelligence. In industry I have worked on artificial intelligence and machine learning. Tenner Smith is a reporter at DF media.

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