Key Financial Measures and Schedule of Non-GAAP Reconciliations
Unaudited Gross Profit Information- including amortization
Three Months Ended Nine Months Ended September
September 30, 30,
2024 2023 2024 2023
$ $ $ $
Revenue 986,116 2,434,606 4,369,086 7,440,297
Cost of
revenue (651,969) (1,040,988) (2,359,758) (3,501,663)
Gross profit 334,147 1,393,618 2,009,328 3,938,634
Gross profit
margin 34 % 57 % 46 % 53 %
Reconciliation of Total Operating Expenses to Adjusted Operating Expenses
Three Months Ended Nine Months Ended September
September 30, 30,
2024 2023 2024 2023
$ $ $ $
Total expenses 1,978,493 2,164,039 6,038,822 7,313,195
Add (Subtract)
Share-based
compensation (54,851) (158,584) (195,941) (466,887)
Depreciation
of property
and
equipment (483) (1,386) (1,953) (4,965)
Debenture
interest and
accretion
expense (300,997) (246,556) (844,321) (593,979)
Interest on
promissory
note (2,000) - (2,000) -
Interest on
lease
obligations - (5,221) - (26,784)
Finance
charges (256,482) (145,024) (496,171) (376,990)
Amortization
of deferred
finance
charges (44,984) (39,710) (130,884) (107,500)
Foreign
exchange
gain (loss) 2,094 17,302 32,843 (36,791)
(Loss) Gain
on
settlement
of related
party
payable - 3,111 (9,797) 10,314
Adjusted
operating
expenses 1,320,790 1,579,015 4,390,598 5,700,657
Unaudited Adjusted Operating Loss
Three Months Ended Sep 30, Nine Months Ended Sep 30,
2024 2023 2024 2023
$ $ $ $
Gross profit 334,147 1,393,618 2,009,328 3,938,634
Add back
amortization
of
intangible
asset - 206,509 - 619,537
Adjusted
gross profit 334,147 1,600,127 2,009,328 4,558,171
Adjusted
operating
expenses (1,320,790) (1,579,015) (4,390,598) (5,700,657)
Adjusted
operating
loss (986,643) 21,112 (2,381,270) (1,142,486)
Newtopia Inc.
Condensed Interim Consolidated Statements of Financial Position (Unaudited)
As at September 30, 2024 and December 31, 2023
(Expressed in Canadian Dollars)
September 30, December 31,
2024 2023
$ $
Assets
Current assets
Cash 10,200 387,339
Trade and other receivables 381,061 1,400,959
Contract assets - 259,072
Prepaid expenses and deposits 137,226 101,043
Inventories 91,654 115,232
Deferred costs 41,979 64,583
662,120 2,328,228
Property and equipment 2,712 4,665
664,832 2,332,893
Liabilities
Current liabilities
Trade and other payables 2,415,716 1,825,356
Credit facility 4,865,674 4,767,006
Promissory note 200,000 -
Contract Liability 48,746 -
Deferred revenue - 48,185
Debentures 5,735,672 3,723,530
13,265,808 10,364,077
Debentures - 1,387,476
13,265,808 11,751,553
Shareholders' Equity (Deficit)
Common shares 49,754,858 49,404,596
Contributed surplus 14,648,104 14,151,188
Deficit (77,003,938) (72,974,444)
(12,600,976) (9,418,660)
664,832 2,332,893
Newtopia Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited)
Three Months Ended September 30, 2024
(Expressed in Canadian Dollars)
2024 2023
$ $
Revenue 986,116 2,434,606
Cost revenue 651,969 1,040,988
Gross profit 334,147 1,393,618
Operating expenses
Technology and development 366,732 446,504
Sales and marketing 163,261 317,544
General and administrative 790,797 814,967
Share-based compensation 54,851 158,584
Depreciation of property and equipment 483 1,386
1,376,124 1,738,985
Other expenses (income)
Interest on lease obligations - 5,221
Debenture interest and accretion expense 300,997 246,556
Interest on promissory note 2,000 -
Finance charges 256,482 145,024
Foreign exchange (gain) loss (2,094) (17,302)
(Gain) Loss on settlement of related party
payable - (3,111)
Amortization of deferred finance charges 44,984 39,710
602,369 425,054
Net loss and comprehensive loss (1,644,346) (770,421)
Loss per share
Basic and diluted loss per share (0.01) (0.01)
Weighted average number of shares
outstanding
Basic and diluted 173,265,303 153,829,313
Newtopia Inc.
Condensed Interim Statements of Cash Flows (Unaudited)
Nine Months Ended September 30, 2024
(Expressed in Canadian Dollars)
2024 2023
$ $
Cash flows used in operating activities
Net loss and comprehensive loss (4,029,494) (3,374,561)
Items not involving cash
Depreciation of property and equipment 1,953 4,965
Amortization of intangible asset - 619,537
Amortization of deferred finance charge 130,884 107,500
Debenture interest and accretion expense 624,661 353,530
Interest on promissory note 2,000 -
Interest on lease obligations - 26,784
Debt modification - 8,956
Credit facility interest 130,466 -
Share-based compensation 195,941 466,887
(Gain) Loss on settlement of related party
payable 9,797 (10,314)
(2,933,792) (1,796,716)
Change in non-cash working capital
Trade and other receivables 1,019,898 (216,987)
Prepaid expenses and deposits (36,183) (33,712)
Inventories 23,578 208,151
Trade and other payables 442,895 (502,016)
Deferred revenue (48,185) -
Contract asset/liability 307,818 174,670
(1,223,971) (2,166,610)
Cash flows used in investing activities
Purchase of property and equipment - (2,548)
- (2,548)
Cash flows from financing activities
Credit facility withdrawals (3,726,407) 4,706,984
Credit facility repayments 3,825,080 (5,167,679)
Credit facility financing costs (93,280) (117,260)
Promissory note 200,000 -
Repayment of lease obligation - (464,998)
Proceeds from private placement issuance of
Units,
net of costs 641,440 1,467,295
Proceeds from issuance of debenture units, net
of
costs - 1,746,201
Repayment of debentures - (30,000)
proceeds from exercise of warrants - 258,299
846,833 2,398,842
(Decrease) Increase in cash (377,139) 229,684
Cash, beginning of period 387,339 345,950
Cash, end of period 10,200 575,634
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SOURCE Newtopia Inc.
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November 27, 2024 16:30 ET (21:30 GMT)