Katipult releases 2022 third quarter and full-year results

CALGARY, AB, November 23, 2022 /CNW/ – Katipult Technology Corp. (TSXV: FUND) (“Katipult” or the “Corporation”), provider of an industry-leading and award-winning cloud-based software infrastructure powering the exchange of capital in the equity and fixed income markets, is pleased to report its financial results for the three and nine month periods ended 09/30/2022.

(CNW Group/Katipult Technology Corp.)

“We had modest revenue growth for the quarter as private equity transaction activity decreased significantly compared to the prior period,” he said Gord Breese, catipult CHAIRMAN. “Our third quarter results reflect the current uncertainty and volatility in the capital markets. While the private equity transaction market remains weak, we remain focused on delivering the product and service innovations our customers will need as investment activity recovers.”

The following is a summary of results for the third quarter of 2022. The full results and related management discussion and analysis are available on the Company’s SEDAR profile (www.sedar.com).

Q3 and YTD 2022 Summary

revenue

Revenue consists of subscription revenue, which increased 11.5% $476,000 in the third quarter of 2022 $427,000 recognized in the third quarter of 2021. Revenue for the nine month period just ended 09/30/2022 increased by 10.5% $1.4 million out $1.2 million last year.

gross profit percentage (1)

The gross profit ratio was 79.4% in the third quarter of 2022, compared to 79.6% in the same quarter of 2021.

Adjusted EBITDA (1)

Adjusted EBITDA losses decreased to ($283,000) in the past three-month period 09/30/2022 out ($415,000) in the past three-month period September 30, 2021, due to management’s focus on prudent cost management and operational efficiencies in response to the slowdown in capital markets activity. Adjusted EBITDA was ($1.1 million) for the past nine-month period 09/30/2022 comparable to the same period of the previous year.

net loss and total damage

Net loss and total loss reduced to ($559,000) in the third quarter of 2022 compared to ($648,000) in the third quarter of 2021 due to the higher expenses noted above in addition to a change in the non-cash fair value of the Company’s outstanding 2018 Notes and higher financing costs from the 2021 Note issue. The net loss and total loss was ($1.8 million) for the past nine-month period 09/30/2022 or 2021.

Financial position

As in 09/30/2022the Company had cash and cash equivalents of $1.7 million, working capital of $1.0 millionand total assets of $1.8 millioncompared to cash and cash equivalents Balance of $2.5 millionworking capital of $1.8 millionand total assets of $2.6 million as in December 31, 2021.

Around catipult

catipult (www.katipult.com) is a provider of industry-leading and award-winning software infrastructure for facilitating the exchange of capital in the stock and bond markets. Our cloud-based platform and solutions digitize the investment workflow by eliminating transaction redundancies, strengthening compliance, delighting investors and accelerating deal flow. catipult offers unparalleled adaptability for regulatory compliance, asset structure, business model and localization requirements.

Neither the TSX Venture Exchange nor its Regulatory Service Provider (as that term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Cautionary Note Regarding Forward-Looking Statements

Certain disclosures in this press release, including statements regarding the recovery in investment activity in the capital markets, constitute forward-looking statements. In preparing the forward-looking statements in this press release, the Company has used certain factors and assumptions that are based on the Company’s current beliefs and assumptions of the company and information currently available to the company, including but not limited to the company’s anticipated liquidity needs, the cash available to the company is as expected, the company’s product continues to perform as expected, the industry continues Seeing value in the company’s product, the company will be able to recruit talented and experienced sales and support personnel and other people needed to carry out the company’s plans, and that s the company’s employees, consultants, customers, suppliers and other stakeholders will be able to successfully manage the Covid-19 pandemic. Although the Company believes these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and the forward-looking statements in this press release are subject to numerous risks, uncertainties and other factors that could cause future results to differ materially of those expressly or impliedly contained in such forward-looking statements. These risk factors may include, but are not limited to, the risk that the business may not have cash availability as expected, failure to successfully manage growth, sales and implementation cycles taking longer than expected, cyber risks, cloud-based risks Solutions and failure to continue Adapting to technological change and new product development, dependency on key personnel, competition, intellectual property risks, economic conditions, financial and economic consequences due to the Covid-19 pandemic, privacy concerns and legislation, regulatory environment, Risk related to a change in the company’s pricing model, the risk of failures in the company’s solution, dependence on market growth, operational service risk, dependence on partners, delay or non-achievement of expected Installati benefits Risks at major accounts and other risks disclosed in the Company’s MD&A for the period ended 09/30/2022. Readers are cautioned, particularly in these uncertain times, not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

1 Non-GAAP Financial Measures

This press release addresses certain non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards (“IFRS”). “Gross profit”, “gross profit percentage”, “working capital” and “adjusted EBITDA” are not measures recognized under IFRS and have no standardized meaning prescribed by IFRS. Management considers these to be important complementary measures catipults performance and believes these metrics are commonly used by securities analysts, investors and other interested parties when evaluating companies in its industry. See “Non-GAAP Measures and Additional GAAP Measures” in the Company Disclosures December 31, 2021 MD&A available on the Company’s SEDAR profile at www.sedar.com for a discussion of non-GAAP measures and their reconciliations.

gross profit” is used by management to analyze overall and segmented operating performance. Gross profit is not intended to be an alternative to net profit or other financial performance measures calculated in accordance with IFRS. Gross profit is calculated from the income statement and total comprehensive income (loss) and from the segmented information in the notes to the financial statements Gross profit is defined as sales less cost of sales.

Gross Profit Percentage” is used by management to analyze overall and segment operating performance. Gross profit percentage is calculated from the operating statement and total return (loss) as well as from the segmented information in the notes to the financial statements. Gross profit percentage is defined as gross profit divided by revenue.

Adjusted EBITDA” is a measure of the company’s operating profitability. Adjusted EBITDA gives an indication of the results generated by the company’s principal business activities before those activities are funded (including mark-to-market movements in the value of the convertible bond), assets are depreciated and amortized or how results are taxed in different jurisdictions, before the impact of foreign exchange rates, other income and expense and non-cash share-based payment expenses Adjusted EBITDA is not intended to represent net income calculated in accordance with IFRS.

Adjusted EBITDA is calculated as follows:

For the past three months 09/30,

($thousands)

2022

2021

net loss

(559)

(648)

Plus:

depreciation and amortization

2

8th

financial costs

194

140

Unrealized loss (gain) on convertible bonds

159

59

Foreign exchange (profit) loss

(40)

(14)

Share-based Payments

36

65

other income

(75)

(25)

Adjusted EBITDA

(283)

(415)


working capital” is used by management and the investor community to analyze the operating liquidity available to the company. Working capital is calculated on the basis of current assets less current liabilities.

Working capital is derived from the balance sheets and calculated as follows:

As in

09/30,

December 31,

increase decrease)

(in thousand $ Cdn) – unaudited

2022

2021

in working capital

financial assets

current assets

Cash and cash equivalents

1,667

2,503

(836)

accounts obtainable

99

33

66

Prepaid Expenses

3

13

(10)

total current assets

1,769

2,549

(780)

Current Liabilities

Liabilities and Provisions

238

373

(135)

Deferred Revenue

529

359

170

Current portion of the lease obligation

21

(21)

Total current liabilities

767

753

14

working capital

1,002

1,796

(794)

SOURCE Katipult Technology Corp.

© Canada Newswire, source Canada Newswire English

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