The Company reports positive cash flow of $80,000
Subscription-based revenue represents 62% of total revenue, grew 50%
Funds raised in Private Placement to enable execution of pending awards
DENVER, Aug. 14, 2023 (GLOBE NEWSWIRE) -- Intermap Technologies (TSX: IMP; OTCQB: ITMSF) ("Intermap" or the "Company"), a global leader in 3D geospatial products and intelligence solutions, today announced preliminary second quarter results and a private placement offering.
Preliminary Second Quarter Results
For the period ending June 30, 2023, the Company reported revenue of $1.6 million, compared with $2.0 million for the first quarter of 2023 and $2.4 million for the second quarter of 2022. During the six months ended June 30, 2023, the Company reported positive cash flow from operating activities of $80,000.
The Company's second quarter results were affected by delays in government contracts. All of the contracts relate to ongoing work that Intermap is confident will continue in the latter half of this year. Some of these contracts are expected to grow substantially this year. The contract delays were generated by repeat customers on critical, funded domestic and foreign government programs.
Intermap's commercial business is continuing to grow with new software and data subscriptions, especially in the European insurance market. The Company's software and solutions revenue increased to $1.1 million compared with $0.8 million for the second quarter of 2022. In the first half of 2023, software and solutions revenue totaled $2.3 million compared with $1.7 million for the same period in 2022. The Company's European revenue increased 75.6% in the second quarter of 2023 compared with the same period in 2022. This increase is driven by the expansion of its European insurance software and solutions through multi-license subscription agreements with countrywide insurance associations.
As the Company enters the second half of the year, momentum remains high with a focus on execution of pending government contracts and commercial opportunities.
The Company's consolidated financial statements for the quarter ended June 30, 2023, are available on SEDAR+ at www.sedarplus.ca.
Private Placement
Intermap continues to explore strategic ways to expand its shareholder base, allowing for broader investor participation and greater liquidity in the publicly traded stock.
On August 10, 2023, Intermap closed the first tranche of an issuer private placement (the "Private Placement") of 810,000 units ("Units"). Each Unit consists of one Class A common share of the Company (a "Share") and one transferable common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one?additional Share at an exercise price equal to the United States dollar ("USD") equivalent of C$0.80 per Share, which is exercisable for two years from the date of issuance. The Units were issued at a price of C$0.55 per Unit for aggregate gross proceeds of C$445,500. The Company intends to close a second tranche of the Private Placement within the next week on the same terms.
Capital raised in the Private Placement strengthens Intermap's balance sheet and enables the Company to pursue strategic contracts, capitalize on new opportunities and expand existing relationships with major clients. The Private Placement included participation from longstanding investors and new shareholders.
"We appreciate the continued support of our investors," said Patrick A. Blott, Intermap Chairman and CEO. "Our commercial business continues its rapid growth with an increasing percentage of recurring revenue. In our government business, programs will continue and grow, and Intermap's participation is expected to increase. Our first half operating performance highlights Intermap's ability to manage operating leverage and maintain cash flow by adjusting variable spending to accommodate unexpected contract volatility. This infusion of capital will help fund future growth and position us to execute on new and exciting opportunities."
Under the first tranche of the Private Placement, Intermap also issued 48,600 warrants ("Finder Warrants") to certain finders. Each Finder Warrant under the first tranche is exercisable for one Share at an exercise price of $0.48954 per Share, being the USD equivalent of C$0.6575, at any time until August 9, 2025. The exchange rate that is used to calculate the USD equivalent exercise price for each the Warrants and the Finder Warrants is the Bank of Canada's latest published rate for the business day immediately prior to the issuance of same.
All securities issued in connection with the Private Placement are subject to a 4-month hold period, during which time trading in the securities is restricted in accordance with applicable securities laws.
The Private Placement and the listing of the Shares issued under the Private Placement and the Shares issuable upon exercise of the Warrants on the Toronto Stock Exchange (the "TSX") are subject to final approval of the TSX upon satisfaction of customary closing conditions. The TSX has conditionally approved the Private Placement and the listing of the Shares issued thereunder and the Shares issuable upon exercise of the Warrants and the Finder Warrants prior to closing of the first tranche of the Private Placement.
Unless otherwise indicated, all dollar or "$" references are expressed in USD.
To learn more about Intermap, visit intermap.com/investors.
Intermap Reader Advisory
Certain information provided in this news release, including reference to revenue growth, growth and continuation of government contracts, pending government contracts and commercial opportunities, and closing of the second tranche of the Private Placement, constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", "continue", "focus", "will", "intends" and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. Intermap's forward-looking statements are subject to risks and uncertainties pertaining to, among other things, cash available to fund operations, availability of capital, revenue fluctuations, nature of government contracts, economic conditions, loss of key customers, retention and availability of executive talent, competing technologies, common share price volatility, loss of proprietary information, software functionality, internet and system infrastructure functionality, information technology security, breakdown of strategic alliances, and international and political considerations, as well as those risks and uncertainties discussed Intermap's Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
About Intermap Technologies
Founded in 1997 and headquartered in Denver, Colorado, Intermap (TSX: IMP; OTCQB: ITMSF) is a global leader in geospatial intelligence solutions, focusing on the creation and analysis of 3D terrain data to produce high-resolution thematic models. Through scientific analysis of geospatial information and patented sensors and processing technology, the Company provisions diverse, complementary, multi-source datasets to enable customers to seamlessly integrate geospatial intelligence into their workflows. Intermap's 3D elevation data and software analytic capabilities enable global geospatial analysis through artificial intelligence and machine learning, providing customers with critical information to understand their terrain environment. By leveraging its proprietary archive of the world's largest collection of multi-sensor global elevation data, the Company's collection and processing capabilities provide multi-source 3D datasets and analytics at mission speed, enabling governments and companies to build and integrate geospatial foundation data with actionable insights. Applications for Intermap's products and solutions include defense, aviation and UAV flight planning, flood and wildfire insurance, disaster mitigation, base mapping, environmental and renewable energy planning, telecommunications, engineering, critical infrastructure monitoring, hydrology, land management, oil and gas and transportation.
For more information, please visit www.intermap.com or contact:
Jennifer Bakken
Executive Vice President and CFO
CFO@intermap.com
+1 (303) 708-0955
