Toronto, Ontario--(Newsfile Corp. - April 26, 2024) - Eddy Smart Home Solutions Ltd. (TSXV: EDY) (formerly Aumento Capital VIII Corp.) ("Eddy" or the "Company") is pleased to release its financial statements for the three and twelve months ended December 31, 2023.
OVERVIEW
Q4/2023 is the first time since being a public company that the Company had positive Net Cash Flow from Operating Activities.
"This is a milestone moment for the company, we have successfully reduced G&A, increased revenue and improved operational and working capital management to achieve positive Net Cash Flow from Operating Activities during Q4/2023, this is a trend we will do our best to continue," said Boris Baril, CFO.
As indicated on the chart below there were 32,772 devices deployed during 2023 (vs. 12,679 in 2022). The deployment of these additional devices will result in increased recurring revenue.
"Our goal for 2024 is to continue to grow our active devices and restructure our liabilities, we installed nearly 3x more devices in 2023 versus 2022 and are poised to continue to grow in 2024. Maintaining Positive Free Cash Flow from Operations and fulfilling our growing pipeline will make Eddy a very strong company for years to come and allows us to remain leaders in this growing industry," said Cory Silver, President.
REVENUE
Revenue for the three months ended December 31, 2023, increased by $257,067 to $1,163,006 as compared to $905,939 reported for the three months ended December 31, 2022.
Revenue for the year ended December 31, 2023, increased by $845,220 to $3,409,072 as compared to $2,563,852 reported for the year ended December 31, 2022.
NET LOSS
For the three-months ended December 31, 2023, net loss was ($4,404,094). Excluding the goodwill impairment charge of $3,054,335 during the current quarter, which is non-recurring, non-operating and non-cash the adjusted net loss for the three months ended December 31, 2023, was ($1,349,759), as compared to ($3,170,998) reported for the three months December 31, 2022.
For the year ended December 31, 2023, the net loss was ($10,568,211). Excluding the goodwill impairment charge the adjusted net loss for the year ended December 31, 2023, was ($7,513,876), as compared to ($11,800,950) reported for the year ended December 31, 2022.
CASH FLOW FROM (USED IN) OPERATING ACTIVITIES
Cash flow from Operating Activities for the three months ended December 31, 2023, was $468,077, as compared to ($2,020,456) reported to for the three months ended December 31, 2022. This reflects an improvement of $2,488,533 for the current quarter.
Cash flow used in Operating Activities for year ended December 31, 2023, was ($2,429,341) as compared to ($10,334,875) reported for the year ended December 31, 2022. This reflects an improvement of $7,905,534 for 2023. The improvements in the operating cash flows are primarily due to a lesser net loss for 2023 and changes in the non-cash items and improvements in working capital management.
BASIC AND DILUTED LOSS PER SHARE
Basic and diluted loss per share for the three months ended December 31, 2023, was ($0.05), as compared to ($0.04) reported for the comparable period.
Basic and diluted loss per share for the year ended December 31, 2023, was ($0.13), as compared to ($0.16) reported for 2022.
GROWTH IN INSTALLED DEVICES
The Company's cloud-based leak detection platform for the Eddy brand managed 75,229 in-building devices as at December 31, 2023 (December 31, 2022 - 42,457), this represents growth of approximately 77%. These devices are comprised of Eddy IQs, Eddy H20s and Eddy Links. Installed devices is an important measure of traction that we are gaining in the market with the deployment of our leak protection services.
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ABOUT EDDY
Eddy is a North American provider and developer of residential and commercial smart water metering products and monitoring services, helping property owners protect, control, and conserve water usage by combining water sensing devices with behavioural learning software. For more detail on the Company's products or corporate information please visit www.eddysolutions.com.
For further information on the financial results of the Company, please review the Company's consolidated financial statements and management's discussion and analysis of the financial condition and results of operations for the years ended December 31, 2023 and 2022, available on Eddy's SEDAR website at www.sedar.com.
FORWARD-LOOKING INFORMATION AND STATEMENTS
This news release contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our objectives, our strategies to achieve those objectives, our performance, as well as statements with respect to management's beliefs, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans", or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward looking information in this news release includes information regarding additional future contracted revenue, the Company's leadership position in intelligent water management and leak protection and the expectation of future sales momentum.
These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described under the heading "Risks And Uncertainties" in the Company's most recent management's discussion and analysis (a copy of which can be obtained at www.sedar.com), which could cause our actual results and performance to differ materially from the forward-looking statements contained in this news release.
All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Mark Silver
Executive Chairman and Chief Executive Officer
Tel: 416.221.8998
Email: ir@eddysolutions.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/207090
SOURCE: Eddy Smart Home Solutions Ltd.
