TORONTO--(BUSINESS WIRE)--AnalytixInsight Inc. ("AnalytixInsight", or the "Company") (TSX-V: ALY) today reports its financial results for the year ended December 31, 2023, and provides a default status report in accordance with the alternative information guidelines set out in National Policy 12-203 - Management Cease Trade Orders ("NP 12-203").
2023 Key Business Highlights:
- As at December 31, 2023, AnalytixInsight's CapitalCube product had generated approximately 95,000 machine-created company research reports (with approximately 830,000 views in 2023 alone) that were published across 40 countries under the Company's research initiative with Refinitiv;
- In 2023 & the beginning of 2024, efforts have been underway to expand CapitalCube's enterprise B2B customer base through project bids, increased sales efforts and market validation product interviews;
- MarketWall's license agreement with Intesa Sanpaolo was renewed in February 2023 with an increase in consideration payable by Intesa Sanpaolo from 1.2 million to 4 million euros annually for two years with an additional two year renewable option;
- In 2023, as part of Marketwall's B2C strategy, the InvestoPro GO trading platform launched a new mobile app purposefully designed for Samsung device users under a MarketWall collaboration agreement with Samsung Italia;
- As at December 31, 2023, InvestoPro had less than 1,000 active users and was approaching €100 million AUC (assets under custody);
- Euclides, the Company's workforce management division, saw its biggest decline in revenues contributing to the decline in revenues overall for 2023. With contracts for this business line ending in 2023 and no newly signed contracts, the business was discontinued with the engagement of its last remaining employee ending in March 2024;
2023 Key Financial Highlights:
- For the year ended December 31, 2023, AnalytixInsight's revenue was $512,685 with a net loss per share of $0.04, compared to the year ended December 31, 2022, in which revenue was $1,672,185 with a net loss per share of $0.04;
- The decline in revenues is entirely attributed to the decrease in Euclides' contracts which ended in 2023 with total revenue as at December 31, 2023 of $276,163 compared to total revenue as at December 31, 2022 of $1,433,055;
- AnalytixInsight had cash and cash equivalents of $1,279,592 as at December 31, 2023, with positive working capital of $627,686;
- AnalytixInsight received a payment of $2,000,486 from Marketwall in Q2 2023 (declared in Q1 2023), however, a similar payment was not declared in Q1 2024;
- For the year ended December 31, 2023, MarketWall (including InvestoPro) revenue was $10,726,371 with a net income of $1,012,915 compared to year ended December 31, 2022 revenue of $6,138,176 and net loss of ($309,243);
- AnalytixInsight's ownership of MarketWall is 49% and thus MarketWall is not consolidated in AnalytixInsight's financial results. MarketWall's financial results include the consolidation of its wholly-owned subsidiary InvestoPro.
Management Commentary
"2023 saw consistently strong financial results from Marketwall showing a trajectory for continued profitability and growth, strengthened with the renewal of the licensing agreement with Intesa Sanpaolo", commented Natalie Hirsch, Interim CEO of AnalytixInsight. "Despite Marketwall's continued success, there was limited success in the other business lines of CapitalCube and Euclides, resulting in the discontinuation of the Euclides business in early 2024. This year, starting with Q1, we are about rebuilding this company and positioning it with a go-forward strategy so we can raise capital."
In addition, as stated in the Company's press release dated April 23, 2024 (the "Default Announcement"), there was uncertainty regarding the Company's decision-making, and such uncertainty had rendered the Company and its board of directors (the "Board") unable to make the determinations necessary to complete the preparation of its financial statements for the year ended December 31, 2023, including in relation to certain disputed expense items, and to take the other actions necessary to finalize, approve and file the Required Annual Filings by the filing deadline of April 29, 2024. In connection with such decision-making uncertainty, recently disclosed legal proceedings were filed in the Ontario Superior Court of Justice (Commercial List). The Court released an endorsement on May 1, 2024 setting forth various intended interim orders (the "Interim Orders") following an expedited hearing held on April 26, 2024. In accordance with the Interim Orders, an inspector has now been selected by the Company to investigate the issues.
For more information about the Interim Orders, please refer to the Court's reasons and the Company's press release dated May 3, 2024, which are available on the Company's website at www.analytixinsight.com and under the Company's SEDAR+ profile at www.sedarplus.ca, respectively.
As disclosed by the Company in a press release dated May 3, 2024, the Company failed to file its audited financial statements for the year ended December 31, 2023 and the related Management's Discussion and Analysis ("MD&A") and the certifications (the "Certifications") related to such filings required from the Company's chief executive officer and chief financial officer (collectively, the "Required Annual Filings") by the filing deadline of April 29, 2024 (the "Annual Filings Default"). In addition, the Company also failed to file it interim financial statements for the three-month period ended March 31, 2024, and the corresponding MD&A and Certificates (collectively, the "Required Interim Filings") by the filing deadline of May 30, 2024 (the "Interim Filings Default", and together with the Annual Filings Default, the "Default"). The Interim Filings Default resulted from the Company's failure to complete the Required Annual Filings by May 30, 2024, which consequently made it impossible for the Company to confirm its 2024 opening balances.
In anticipation of the Annual Filings Default, the Company previously applied to the Ontario Securities Commission (the "OSC"), as the Company's principal regulator, for a temporary management cease trade order ("MCTO") under NP 12-203. The MCTO was issued by the OSC on May 1, 2024, and is expected to remain in effect until two business days after the Default is remedied. The MCTO prohibits trading in securities of the Company, whether direct or indirect, by certain specified parties including each of the Company's directors and officers. The issuance of the MCTO does not generally affect the ability of persons who are not directors, officers or other insiders of AnalytixInsight to trade in securities of the Company.
The Company intends to continue to make every effort to complete the Required Interim Filings as soon as possible. In that regard, the Required Annual Filings were filed today and the Company was able to confirm its 2024 opening balances. Copies of the Required Annual Filings are available on the Company's SEDAR+ profile at www.sedarplus.ca. Subject to the work of the Court-ordered inspector and any further determinations of the Court, the Company will continue to make every effort to be in a position to make the Required Interim Filings on or prior to June 28, 2024.
Other than as set out herein, the Company confirms that (a) there have been no changes to the information contained in the Default Announcement that would reasonably be expected to be material to an investor, (b) the Company believes that there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203, (c) there is no anticipated specified default (as such term is defined in NP 12-203) subsequent to the Default, and (d) there is no other material information concerning the affairs of the Company that has not been generally disclosed.
Should the Company fail to make the Required Interim Filings on or before June 28, 2024, the OSC may impose a cease trade order that all trading in securities of the Company cease for such period of time as the OSC may deem appropriate.
The Company intends to continue to comply with the alternative information guidelines set out in NP 12-203 until the Required Interim Filings are made, including by issuing bi-weekly default status reports in the form of further news releases.
The issuance of this news release has been approved by the Board, and more specifically Messrs. Veeravalli (independent), Kadar (independent), and Gardner (independent).
About AnalytixInsight Inc.
AnalytixInsight is a data analytics and enterprise software solutions provider. AnalytixInsight develops and markets cloud-based platforms providing financial content, company analysis and stock research solutions to the financial services industry. AnalytixInsight holds a 49% interest in MarketWall S.R.L., a developer of fintech solutions for financial institutions in Italy.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release constitute "forward-looking information" within the meaning of applicable securities laws and the respective policies, regulations and rules under such laws ("forward-looking statements"). These forward-looking statements generally are identified by words such as "anticipate", "expect", "intend", "will" and similar expressions, although not all forward-looking statements contain these identifying words. Specific forward-looking statements in this news release include, but are not limited to, statements regarding: (a) the Company's ability to rebrand and reposition its strategy; (b) the completion and filing of the Required Interim Filings and the expected timeframe for doing so (c) the Interim Orders and the anticipated consequences thereof; (d) the duration of the MCTO and the potential imposition of a cease trade order that all trading in securities of the Company cease for such period of time as the OSC may deem appropriate; and (e) the availability or suitability of potential funding options to address the Company's funding needs. Although the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this news release including, without limitation, the risk that the Company may not be able to make the Required Interim Filings within the anticipated timeframe or at all, the risk that the Court-ordered inspector may uncover additional issues and/or may not be completed in a timely manner or at all, the risk that the issues to be addressed by the Interim Orders and the Court-ordered inspector are not resolved in a timely manner or at all, the risk that funding options are not available to the Company, on reasonable terms or at all, to address its funding needs, the risk that the Court-ordered inspector may uncover additional issues and/or may not be completed in a timely manner or at all, the risk that the OSC imposes a cease trade order that all trading in securities of the Company cease for such period of time as the OSC may deem appropriate, the risk of further Court proceedings and the impact thereof, and the risk that the Company is not able to rebrand or reposition its strategy, successfully or otherwise. Additionally, there are uncertainties inherent in forward-looking information, including factors beyond the Company's control. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements included in this news release are expressly qualified by this cautionary note. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable laws.
Regulatory Statements
NEITHER THE 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.
Contacts
Natalie Hirsch
Interim CEO
AnalytixInsight Inc.
natalie.hirsch@analytixinsight.com
Tel: 647-955-2933
