Newtopia Reports Second Quarter 2024 Financial Results
- Growth of GLP-1s: Our engagement expertise provides unique ability to facilitate sustainable health outcomes and demonstrable ROI to GLP-1 sponsors
- Rise of Health AI: Our unique data sets and capabilities will enrich and accelerate progress of next-gen clinical discovery platforms
- Commercial and Community Care-Delivery: We see continued expansion with our market-leading employer, provider and provincial innovation partners
Second Quarter 2024 Financial Highlights (vs. Q2 2023):
- Revenue of
$1.6 million , as compared to$2.4 million - Gross Profit margin of 48%, as compared to 50%
- Opex reduction of 18% year over year
"Over the last eleven years
"Beginning with our industry-first randomized, controlled clinical trial between 2013-2016 and extending to the Fortune 500 employers that have adopted our solution,
"On the strength of this foundation, we are pursuing three distinct and significant opportunities to accelerate
Second Quarter 2024 Financial Results
Revenue for the three months ended
Gross profit for the second quarter 2024 totaled
Operating expenses for the three months ended
The Company ended the second quarter 2024 with
2024 Outlook
Despite a challenging macro environment, the Company remains bullish regarding its strategic fit within the broader healthcare industry.
Conference Call
The Company will host a conference call on August 8th at 5 p.m. Eastern Time to discuss the second quarter 2024 results in further detail. To access the conference call, please dial (800) 717-1738 (
A replay of the conference call will be available through
About Newtopia
Forward Looking Statements
This news release contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable
For more information on these risks please see the "Risk Factors" in
Neither the
Key Financial Measures and Schedule of Non-GAAP Reconciliations
Unaudited Gross Profit Information- including
amortization
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
$ |
|
$ |
|
$ |
|
$ |
Revenue |
|
1,568,970 |
|
2,357,034 |
|
3,382,970 |
|
5,005,691 |
Cost of revenue |
|
(808,397) |
|
(1,184,993) |
|
(1,707,793) |
|
(2,460,675) |
Gross profit |
|
760,573 |
|
1,172,041 |
|
1,675,177 |
|
2,545,016 |
|
|
|
|
|
|
|
|
|
Gross profit margin |
|
48 % |
|
50 % |
|
50 % |
|
51 % |
Reconciliation of Total Operating Expenses to Adjusted Operating Expenses
|
Three Months Ended |
|
Six Months Ended |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
$ |
|
$ |
|
$ |
|
$ |
Total expenses |
1,936,354 |
|
2,403,354 |
|
4,060,329 |
|
5,149,156 |
Add (Subtract) |
|
|
|
|
|
|
|
Share-based compensation |
(67,425) |
|
(215,013) |
|
(141,090) |
|
(308,303) |
Depreciation of property and equipment |
(735) |
|
(2,030) |
|
(1,470) |
|
(3,579) |
Interest and accretion expense |
(275,963) |
|
(177,728) |
|
(543,324) |
|
(347,423) |
Interest on lease obligations |
- |
|
(8,973) |
|
- |
|
(21,563) |
Finance charges |
(110,664) |
|
(122,318) |
|
(239,689) |
|
(231,966) |
Amortization of deferred finance charges |
(27,887) |
|
(33,975) |
|
(85,900) |
|
(67,790) |
Foreign exchange gain (loss) |
34,057 |
|
(35,821) |
|
30,749 |
|
(54,093) |
(Loss) Gain on settlement of related party payable |
- |
|
7,203 |
|
(9,797) |
|
7,203 |
|
|
|
|
|
|
|
|
Adjusted operating expenses |
1,487,737 |
|
1,814,699 |
|
3,069,808 |
|
4,121,642 |
Unaudited Adjusted Operating Loss
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
|
|
$ |
|
$ |
|
$ |
|
$ |
||||||
Gross profit |
|
760,573 |
|
1,172,041 |
|
1,675,177 |
|
2,545,016 |
||||||
Add back amortization of intangible asset |
|
- |
|
206,514 |
|
- |
|
413,028 |
||||||
Adjusted gross profit |
|
760,573 |
|
1,378,555 |
|
1,675,177 |
|
2,958,044 |
||||||
Adjusted operating expenses |
|
(1,487,737) |
|
(1,814,699) |
|
(3,069,808) |
|
(4,121,642) |
||||||
|
|
|
|
|
|
|
|
|
||||||
Adjusted operating loss |
|
(727,164) |
|
(436,144) |
|
(1,394,631) |
|
(1,163,598) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Interim Consolidated Statements of Financial Position (Unaudited)
As at
(Expressed in Canadian Dollars)
|
|
|
|
|
|
|
2024 |
|
2023 |
|
|
$ |
|
$ |
Assets |
|
|
|
|
Current assets |
|
|
|
|
|
Cash |
519,927 |
|
387,339 |
|
Trade and other receivables |
430,176 |
|
1,400,959 |
|
Contract assets |
4,044 |
|
259,072 |
|
Prepaid expenses and deposits |
254,018 |
|
101,043 |
|
Inventories |
156,268 |
|
115,232 |
|
Deferred costs |
25,233 |
|
64,583 |
|
|
|
|
|
|
|
1,389,666 |
|
2,328,228 |
|
|
|
|
|
|
Property and equipment |
3,195 |
|
4,665 |
|
|
|
|
|
|
|
1,392,861 |
|
2,332,893 |
|
|
|
|
|
Liabilities |
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
2,223,873 |
|
1,825,356 |
|
Credit facility |
4,745,798 |
|
4,767,006 |
|
Deferred revenue |
- |
|
48,185 |
|
Debentures |
3,996,311 |
|
3,723,530 |
|
|
10,965,982 |
|
10,364,077 |
|
|
|
|
|
|
Debentures |
1,438,364 |
|
1,387,476 |
|
|
12,404,346 |
|
11,751,553 |
|
|
|
|
|
Shareholders' Equity (Deficit) |
|
|
|
|
|
Common shares |
49,754,858 |
|
49,404,596 |
|
Contributed surplus |
14,593,253 |
|
14,151,188 |
|
Deficit |
(75,359,596) |
|
(72,974,444) |
|
|
(11,011,485) |
|
(9,418,660) |
|
|
1,392,861 |
|
2,332,893 |
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited)
Six Months Ended
(Expressed in Canadian Dollars)
|
|
2024 |
2023 |
|
|
$ |
$ |
Revenue |
3,382,970 |
5,005,691 |
|
Cost revenue |
|
1,707,793 |
2,460,675 |
Gross profit |
|
1,675,177 |
2,545,016 |
|
|
|
|
Operating expenses |
|
|
|
Technology and development |
820,640 |
1,444,772 |
|
Sales and marketing |
458,216 |
777,432 |
|
General and administrative |
1,790,952 |
1,899,438 |
|
Share-based compensation |
141,090 |
308,303 |
|
Depreciation of property and equipment |
|
1,470 |
3,579 |
|
|
3,212,368 |
4,433,524 |
Other expenses (income) |
|
|
|
Interest on lease obligations |
- |
21,563 |
|
Interest and accretion expense |
543,324 |
347,423 |
|
Finance charges |
239,689 |
231,966 |
|
Foreign exchange (gain) loss |
(30,749) |
54,093 |
|
(Gain) Loss on settlement of related party payable |
9,797 |
(7,203) |
|
Amortization of deferred finance charges |
85,900 |
67,790 |
|
|
|
|
|
|
|
847,961 |
715,632 |
|
|
|
|
Net loss and comprehensive loss |
(2,385,152) |
(2,604,140) |
|
|
|
|
|
Loss per share |
|
|
|
Basic and diluted loss per share |
(0.01) |
(0.02) |
|
|
|
|
|
Weighted average number of shares outstanding |
|
|
|
Basic and diluted |
168,425,358 |
141,046,080 |
Condensed Interim Statements of Cash Flows (Unaudited)
Six Months Ended June 30, 2024
(Expressed in Canadian Dollars)
|
|
|
Six Months Ended |
|
|
|
|
2024 |
2023 |
|
|
|
|
|
Cash flows used in operating activities |
|
|
||
|
Net loss and comprehensive loss |
(2,385,152) |
(2,604,140) |
|
|
Items not involving cash |
|
|
|
|
|
Depreciation of property and equipment |
1,470 |
3,579 |
|
|
Amortization of intangible asset |
- |
413,028 |
|
|
Amortization of deferred finance charge |
85,900 |
67,790 |
|
|
Debenture interest and accretion expense |
323,665 |
252,648 |
|
|
Interest on lease obligations |
- |
21,563 |
|
|
Share-based compensation |
141,090 |
308,303 |
|
|
(Gain) Loss on settlement of related party payable |
9,797 |
(7,203) |
|
|
|
(1,823,230) |
(1,544,432) |
|
Change in non-cash working capital |
|
|
|
|
|
Trade and other receivables |
970,783 |
37,266 |
|
|
Prepaid expenses and deposits |
(152,975) |
(53,322) |
|
|
Inventories |
(41,036) |
185,395 |
|
|
Trade and other payables |
398,516 |
(10,602) |
|
|
Deferred revenue |
(48,185) |
- |
|
|
Contract asset/liability |
255,028 |
270,100 |
|
|
|
(441,099) |
(1,115,595) |
Cash flows used in investing activities |
|
|
||
|
|
Purchase of property and equipment |
- |
(1,099) |
|
|
|
- |
(1,099) |
Cash flows from financing activities |
|
|
||
|
|
Credit facility withdrawals |
2,737,120 |
2,864,097 |
|
|
Credit facility repayments |
(2,758,323) |
(2,877,729) |
|
|
Credit facility financing costs |
(46,550) |
(29,160) |
|
|
Repayment of lease obligation |
- |
(357,186) |
|
|
Proceeds from private placement offering, net of costs |
641,440 |
1,467,295 |
|
|
|
|
|
|
|
|
573,687 |
1,067,317 |
Increase (decrease) in cash |
132,588 |
(49,377) |
||
Cash, beginning of period |
387,339 |
345,950 |
||
Cash, end of period |
519,927 |
296,573 |
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