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Advantex Announces Fiscal 2020 Results

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TORONTO, March 31, 2021 /CNW/ - Advantex Marketing International Inc. (CSE: ADX) ("Advantex"), a leader in the merchant cash advance and loyalty marketing products for merchants, announced its results for twelve months ended June 30, 2020.

Highlights of financial results for twelve months ended June 30, 2020 compared to twelve months ended June 30, 2019:


Fiscal 2020

Fiscal 2019

Inc./(Dec)

Inc./(Dec)


$

$

$

%

Revenues

$

2,609,542

$

6,100,530

$

(3,490,988)

-57.2%

Direct expenses





Cost of cardholder rewards and marketing in connection with merchant based loyalty programs

$

387,027

$

1,279,228

$

(892,201)


Expense for provision against delinquent accounts

$

1,022,015

$

287,646

$

734,369


Gross profit

$

1,200,500

$

4,533,656

$

(3,333,156)

-73.5%

Selling and General & Administrative expenses

$

2,065,763

$

3,570,588

$

(1,504,825)


Earnings/(loss) from operations before depreciation, amortization and interest

$

(865,263)

$

963,068

$

(1,828,331)

-189.8%

Stated interest expense - loan payable, and debentures

$

1,319,950

$

1,297,092

$

22,858


(Loss) from operations before depreciation, amortization, non cash interest and non cash items

$

(2,185,213)

$

(334,024)

$

1,851,189

554.2%

Interest - Lease

$

19,904

$

-

$

19,904


Interest expense - Accretion charges, restructuring bonus and amortization of transaction costs
related to non-convertible debentures payable

$

598,733

$

547,998

$

50,735


Depreciation of right of use asset

$

65,336

$

-

$

65,336


Depreciation of property, plant and equipment

$

15,210

$

29,923

$

(14,713)


Impairment of right of use asset

$

43,000

$

-

$

43,000


Net (loss) and comprehensive (loss)

$

(2,927,396)

$

(911,945)

$

2,015,451

221.0%









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

The above tabulation is a non-GAAP presentation and is provided to assist readers in understanding Advantex's financial performance. The information is extracted from consolidated financial statements for twelve months ended June 30, 2020.

About Advantex:

Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn Aeroplan points at participating merchants.

Advantex shares trade on the Canadian Securities Exchange under the symbol ADX.

For more information go to Advantex's profile on www.sedar.com

Advantex Marketing International Inc.
Consolidated Statements of Financial Position
(expressed in Canadian dollars)


Note

June 30,
2020

June 30,
2019



$

$

Assets




Current assets




Cash


$

166,601

$

119,636

Accounts receivable

11 a

118,901

110,630

Transaction credits

11 a

3,923,917

9,473,999

Prepaid expenses and sundry assets


58,781

52,232



$

4,268,200

$

9,756,497





Non-current assets




Right of use asset

18

$

98,562

$

-

Property, plant and equipment

5

-

15,255



$

98,562

$

15,255





Total assets


$

4,366,762

$

9,771,752





Liabilities




Current liabilities




Loan payable

6

$

4,369,006

$

8,416,076

Lease liability

18

64,452

-

Loan

19

40,000

-

Accounts payable and accrued liabilities


2,364,759

2,255,205

9% Non convertible debentures payable

7

6,611,576

5,367,573



$

13,449,793

$

16,038,854





Non-current liabilities




Lease liability

18

$

84,679

$

-



$

84,679

$

-





Total liabilities


$

13,534,472

$

16,038,854





Shareholders' deficiency




Share capital

8

$

24,530,555

$

24,530,555

Contributed surplus


4,117,170

4,090,382

Accumulated other comprehensive loss


(47,383)

(47,383)

Deficit


(37,768,052)

(34,840,656)

Total deficiency


$

(9,167,710)

$

(6,267,102)





Total liabilities and deficiency


$

4,366,762

$

9,771,752





Going concern (note 2), Commitments and contingencies (note 13)







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

Advantex Marketing International Inc.
Consolidated Statements of (Loss) and Comprehensive (Loss)
For the years ended June 30, 2020 and 2019
(expressed in Canadian dollars)


Note

2020

2019



$

$





Revenues

17



Marketing activities


$

718,690

$

4,710,413

Interest income


1,890,852

1,390,117



2,609,542

$

6,100,530

Direct expenses

16/17

1,409,042

1,566,874



1,200,500

4,533,656

Operating expenses




Selling and marketing

16/17

718,267

1,329,303

General and administrative

16/17

1,347,496

2,241,285

Earnings/(loss) from operations before depreciation,
amortization and interest


(865,263)

963,068





Stated interest expense - loan payable, and debentures

6/7

1,319,950

1,297,092

Interest - Lease

18

19,904

-

Non-cash interest expense (accretion charges),
restructuring bonus and amortization of transaction
costs related to non-convertible debentures payable

7

598,733

547,998

Depreciation of right of use asset

18

65,336

-

Depreciation of property, plant and equipment

5

15,210

29,923

Impairment of right of use asset

4/18

43,000

-

Net (loss) and comprehensive (loss)


$

(2,927,396)

$

(911,945)





(Loss) per share




Basic and Diluted

15

$

-

$

-





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

Advantex Marketing International Inc.
Consolidated Statements of Changes in Shareholders' Deficiency
For the years ended June 30, 2020 and June 30, 2019
(expressed in Canadian dollars)


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 (loss) and comprehensive
(loss)

-

-

-

-

(911,945)

(911,945)

Balance - June 30, 2019

$

3,815

$

24,526,740

$

4,090,382

$

(47,383)

$

(34,840,656)

$

(6,267,102)















Balance - July 1, 2019

$

3,815

$

24,526,740

$

4,090,382

$

(47,383)

$

(34,840,656)

$

(6,267,102)

Issuance of non-convertible
debentures payable (note 7)

-

-

26,788

-

-

26,788

Net (loss) and comprehensive
(loss)

-

-

-

-

(2,927,396)

(2,927,396)

Balance - June 30, 2020

$

3,815

$

24,526,740

$

4,117,170

$

(47,383)

$

(37,768,052)

$

(9,167,710)








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

Advantex Marketing International Inc.
Consolidated Statements of Cash Flow
For the years ended June 30, 2020 and 2019
(expressed in Canadian dollars)


Note

June 30,
2020

June 30,
2019



$

$

Operational activities




Net (loss) for the year


$

(2,927,396)

$

(911,945)

Adjustments for:




Accrued and unpaid 9% debentures interest

7

512,761

271,624

Interest - Lease

18

19,904

-

Depreciation of right of use asset

18

65,336

-

Depreciation of property, plant and equipment

5

15,210

29,923

Impairment of right of use asset

4/18

43,000

-

Loss on disposal of property, plant & equipment


45

-

Accretion charge - non-convertible debentures payable

7

327,181

299,714

Restructuring bonus - non-convertible debentures payable

7

259,028

248,284

Amortization of transaction costs - non-convertible debentures payable

7

12,524

-



(1,672,407)

(62,400)

Changes in items of working capital




Accounts receivable


(8,271)

1,692

Transaction credits


5,550,082

(3,881,573)

Prepaid expenses and sundry assets


(6,549)

27,117

Accounts payable and accrued liabilities


109,554

(588,513)



5,644,816

(4,441,277)

Net cash generated (used) - operating activities


$

3,972,409

$

(4,503,677)





Investing activities




Purchase of property, plant and equipment, and intangible
assets


$

-

(1,209)

Net cash (used) - investing activities


$

-

$

(1,209)





Financing activities




Gross proceeds - non-convertibles debentures payable

7

$

200,000

$

-

Transaction costs - non-convertible debentures payable

7

(40,703)

-

Payment for lease


(77,671)

-

Proceeds from loan - Canada Emergency Business Account

19

40,000

-

Increase/(Decrease) of loan payable

6

(4,047,070)

3,988,686

Net cash (used) generated - financing activities


$

(3,925,444)

$

3,988,686





Increase/(Decrease) in cash during the year


$

46,965

$

(516,200)

Cash at beginning of the year


119,636

635,836

Cash at end of the year


$

166,601

$

119,636





Additional information




Interest paid


$

807,189

$

1,046,810





Cash


$

166,601

$

119,636







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

SOURCE Advantex Marketing International Inc.

Cision
Cision

View original content: http://www.newswire.ca/en/releases/archive/March2021/31/c1293.html

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