Advantex Announces Fiscal 2020 Second Quarter Results

3 months ended December 31

6 months ended December 31

2019

2018

2019

2018

$

$

$

$

Revenues

$

890,936

$

1,812,853

$

1,689,979

$

3,658,987

Gross profit

$

646,805

$

1,436,791

$

1,281,958

$

2,838,414

Earnings from operations before depreciation, amortization
and interest

$

19,530

$

435,237

$

76,953

$

831,324

Profit (Loss)  from operations before depreciation, amortization
and non cash interest on debentures

$

(337,627)

$

139,076

$

(681,401)

$

255,952

Net Loss and Comprehensive loss

$

(522,327)

$

(4,828)

$

(1,054,733)

$

(29,575)

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

Note

At December
31, 2019

At June
30, 2019

$

$

Assets

Current assets

Cash and cash equivalents

$

54,208

$

119,636

Accounts receivable

109,665

110,630

Transaction credits 

5

6,821,914

9,473,999

Prepaid expenses and sundry assets

50,632

52,232

$

7,036,419

$

9,756,497

Non-current assets

Right of use asset

15

$

287,745

$

345,294

Property, plant and equipment

629

15,255

$

288,374

$

360,549

Total assets

$

7,324,793

$

10,117,046

Liabilities

Current liabilities

Loan payable 

6

$

6,050,069

$

8,416,076

Lease liability

120,116

113,854

Accounts payable and accrued liabilities

2,772,671

2,526,829

9% Non-convertibles debentures payable

7

5,535,522

5,095,949

$

14,478,377

$

16,152,708

Non-current Liabilities

Lease liability

15

$

203,469

$

266,658

$

203,469

$

266,658

Shareholders' deficiency

Share capital 

8

$

24,530,555

$

24,530,555

Contributed surplus

4,090,382

4,090,382

Accumulated other comprehensive loss

(47,383)

(47,383)

Deficit

15

(35,930,607)

(34,875,874)

Total deficiency

$

(7,357,053)

$

(6,302,320)

Total liabilities and deficiency

$

7,324,793

$

10,117,046

Going concern (note 2), 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

Note

Three months ended December 31

Six months ended December 31

2019

2018

2019

2018

$

$

$

$

Revenues

14

Marketing activities

$

237,081

$

1,493,769

$

416,663

$

3,039,158

Interest income 

$

653,855

$

319,084

1,273,316

$

619,829

$

890,936

$

1,812,853

$

1,689,979

$

3,658,987

Direct expenses

13/14

244,131

376,062

408,021

820,573

646,805

1,436,791

1,281,958

2,838,414

Operating expenses

Selling and marketing

13/14

190,835

388,045

378,698

855,464

General and administrative

13/14

436,440

613,509

826,307

1,151,626

Earnings from operations before depreciation,
amortization and interest

19,530

435,237

76,953

831,324

Interest expense:

Stated interest expense - loan payable, and debentures

6/7

357,157

296,161

758,354

575,372

Interest - Lease 

10,464

-

20,928

-

Non-cash interest expense (accretion charges) and
restructuring bonus related to debentures

7

145,120

136,886

285,753

272,561

(493,210)

2,190

(988,083)

16,609

Depreciation - Right of use asset

28,775

-

57,549

-

Depreciation of property, plant and equipment, and
amortization of intangible assets

5,821

7,018

14,581

12,966

Loss and comprehensive loss

$

(527,806)

$

(4,828)

$

(1,060,212)

$

(29,575)

Issuance of debentures

7

$

5,479

$

-

$

5,479

$

-

Net loss and comprehensive loss

$

(522,327)

$

(4,828)

$

(1,054,733)

$

(29,575)

Profit/(Loss) per share

Basic and Diluted

12

$

(0.00)

$

(0.00)

$

(0.00)

$

(0.00)

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

Class A
preference
shares

Common
shares

Contributed
surplus

Accumulated
other
comprehen -
sive loss

Deficit

Total

$

$

$

$

$

$

Balance - July 1, 2018

$

3,815

$

24,526,740

$

4,090,382

$

(47,383)

$

(33,928,711)

$

(5,355,157)

Net profit and comprehensive
profit

-

-

-

-

(29,575)

(29,575)

Balance - December 31, 2018

$

3,815

$

24,526,740

$

4,090,382

$

(47,383)

$

(33,958,286)

$

(5,384,732)

Balance - July 1, 2019

$

3,815

$

24,526,740

$

4,090,382

$

(47,383)

$

(34,875,874)

$

(6,302,320)

Net loss and comprehensive
loss

-

-

-

-

(1,054,733)

(1,054,733)

Balance - December 31, 2019

$

3,815

$

24,526,740

$

4,090,382

$

(47,383)

$

(35,930,607)

$

(7,357,053)

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

Note

At December
31, 2019

December
31, 2018

$

$

Net profit/(loss) for the period

$

(1,054,733)

$

(29,575)

Adjustments for:

Interest - Lease 

20,928

-

Depreciation - Right of use asset

57,549

-

Depreciation of property, plant and equipment,
and amortization of intangible assets

14,581

12,966

Accretion charge for debentures

7

159,126

147,398

Restructuring bonus for debentures

7

126,627

125,163

Fair value of debentures issued

(46,181)

-

(722,103)

255,952

Changes in items of working capital

Accounts receivable

965

(64,053)

Transaction credits 

2,652,085

(1,063,643)

Prepaid expenses and sundry assets

1,600

(3,687)

Accounts payable and accrued liabilities

245,842

(676,430)

2,900,492

(1,807,813)

Net cash provided by / (used in) operating activities

$

2,178,389

$

(1,551,861)

Investing activities

Payment for lease

$

(77,855)

$

-

Purchase of property, plant and equipment, and intangible
assets

45

(2,810)

Net cash (used in) investing activities

$

(77,810)

$

(2,810)

Financing activities

Proceeds - 9% Non-convertible debentures payable

7

$

200,000

$

-

Proceeds -  Loan payable

6

(2,366,007)

1,055,246

Net cash generated from / (used in) financing activities

$

(2,166,007)

$

1,055,246

Increase / (decrease) in cash and cash equivalents during
the period

$

(65,428)

$

(499,425)

Cash and cash equivalents at beginning of period

119,636

635,836

Cash and cash equivalents at end of period

$

54,208

$

136,411

Additional information

Interest paid 

$

503,332

$

333,580

For purposes of the cash flow statement, cash comprises 

Cash

$

54,208

$

136,411

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