Argo Corporation Reports Third Quarter 2024 Financial Results

Canada NewsWire

TORONTO, Nov. 29, 2024

TORONTO, Nov. 29, 2024 /CNW/ - Argo Corporation (TSXV: ARGH), (OTCQX: ARGHF) ("Argo" or the "Company"), a new venture delivering the first-ever vertically and publicly integrated city transit system, announced today its financial results for the quarter ended September 30, 2024 ("Q3 2024"). During the third quarter of 2024, Argo deployed its smart transit system with its first paying customers and made significant progress in restructuring prior initiatives in its publicly traded entity.

Argo Highlights

   -- Argo School: The Company successfully deployed its smart transit solution 
      to a series of private schools in the Greater Toronto Area, providing 
      end-to-end student transportation operations. Argo's innovative 
      technology delivers access to more flexibility and real-time tracking of 
      students and vehicles, with unprecedented safety, reliability, and 
      transparency for families and schools alike. The Company plans to 
      continue to expand this solution to other private and public schools 
      throughout Canada and abroad. 
 
   -- Argo City: Argo's public transit solution is the first to integrate 
      custom software with vehicular hardware to create a network of 
      intelligently routed vehicles that augment public transit systems with 
      on-demand, door-to-door service. Argo City aims to reduce private car 
      usage and increase ridership of existing public transit systems through 
      partnership with cities, transit agencies, and governments. The Company 
      expects to announce its first city partners in the coming months. 
 
   -- R&D Investment: The Company's quarterly R&D investment spend for Q3 2024 
      increased by 401% year-over-year. This investment reflects a significant 
      focus on developing the Company's proprietary vertically and publicly 
      integrated city transit system, with significant progress in software and 
      hardware functionality to enable seamless and reliable school and city 
      deployments, putting people in control of their mobility. 

Restructuring Updates

   -- Vehicle Subscription: $8.5M in liabilities have been reclassified in Q3 
      2024 as held for sale as a result of wholly owned subsidiaries Steer EV 
      Canada Inc. filing an assignment into bankruptcy under the Bankruptcy and 
      Insolvency Act in Canada and Steer Holdings LLC, making a General 
      Assignment for the Benefit of Creditors, pursuant to California law. The 
      Company anticipates these liabilities will be removed in the coming 
      quarters upon completing these legal processes, aligning with its 
      restructuring efforts announced in the May 23, 2024, press release. 
 
   -- Disputed Office Lease: Argo filed a statement of claim regarding a 
      disputed office lease with landlord 8174709 Canada Inc. and the Company's 
      former CEO. The disputed lease represents $3.6M in liabilities and 
      payables on the Company's balance sheet. 
 
   -- Sale of Financial Assets: The Company continues to engage in active sales 
      processes for intellectual property and financial assets associated with 
      the last venture in its publicly traded entity. In Q3 2024, the Company 
      completed the sale of 14,200 shares of preferred stock in the capital of 
      Westbrook Global Inc., receiving a cash payment of $750K as 
      consideration. 

FoodsUp Updates

Argo maintains a 59.95% non-controlling ownership interest in FoodsUp Inc. ("FoodsUp"), one of Canada's leading restaurant supply platforms. In Q3 2024, FoodsUp had revenues of $28.7M, representing a 10% increase over Q2 2024 and a 61% yearly increase in quarterly revenues from Q3 2023.

The Company remains committed to implementing a transaction structure, the effect of which would be to provide the shareholders of Argo with the net proceeds from any sale of its interest in FoodsUp to a third party or an indirect or tracking ownership interest in FoodsUp in each case, as of to-be-determined record date (the "FoodsUp Divestment"). The FoodsUp Divestment, if it occurs, will mark an important step in the formal separation between the business of FoodsUp and Argo.

Q3 2024 Results Compared to Q3 2023

 
For the three months ended September 30    2024           2023 
REVENUE                                         $449,567      $101,851 
Cost of revenue                                   29,519        59,676 
General and administration                     1,019,001       377,350 
Operational support                              520,911       274,024 
Research and development                         614,149       122,573 
Sales and marketing                               73,054        73,068 
Amortization                                      37,108       196,865 
Depreciation                                      10,941        84,831 
Total operating expenses                       2,304,683     1,188,387 
OPERATING LOSS                              ($1,855,166)  ($1,086,536) 
 
OTHER INCOME (EXPENSES) 
Foreign exchange gain/ (loss)                   (28,460)      (93,854) 
Interest expenses                              (532,931)      (61,018) 
Interest income                                    1,023           272 
Gain/ (Loss) on accounts payable 
 settlements                                     301,483             - 
Gain/ (Loss) on termination                      279,606             - 
Write down of intangible asset                 (211,182)             - 
Other income/(loss) from discontinued 
 operations                                 (10,285,769)     (115,015) 
Penalties and settlement                        (68,500)             - 
Share of loss of an associate                  (593,014)   (2,860,412) 
Net income/ (loss) from continuing 
 operations                                ($12,992,860)  ($4,216,563) 
Discontinued OperationsNet income/ (loss) 
 from discontinued operations                 12,296,195   (1,037,987) 
NET GAIN (LOSS)                               ($696,665)  ($5,254,550) 
Cumulative translation adjustment              (174,518)     (253,879) 
NET PROFIT (LOSS) AND COMPREHENSIVE 
 PROFIT (LOSS)                                ($871,183)  ($5,508,429) 
(Loss) profit per share-- Basic and 
 diluted                                         ($0.01)       ($0.04) 
Weighted average shares outstanding - 
 Basic and diluted                           133,367,099   132,944,615 
 
 
1 All figures are accurate to the hundreds. 
 

In this press release, all references to '$' are to Canadian dollars.

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.

About Argo

Argo delivers the first-ever vertically and publicly integrated city transit system. It is designed to augment public transportation and create a network of intelligently routed vehicles that work together to serve and scale to the needs of entire cities, putting people in control of their mobility. You can learn more at www.rideargo.com.

Praveen Arichandran, Co-CEO

Argo Corporation

(800) 575-7051

Forward-Looking Information

This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate," "estimate," and "intend," and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, as described in more detail in the Company's securities filings available at www.sedarplus.ca. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law. See "Forward-Looking Information" and "Risk Factors" in the Company's Annual Management Discussion & Analysis (MD&A) for the year ended December 31, 2023 (filed on SEDAR+ on May 8, 2024) and its interim MD&A for the periods ended September 30, 2023, March 31, 2024, June 30, 2024, and September 30, 2024 for a discussion of the uncertainties, risks and assumptions associated with these statements and other risks. Readers are urged to consider the uncertainties, risks, and assumptions carefully when evaluating forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation and regulatory requirements.

SOURCE ARGO CORPORATION

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/CONTACT:

Media Inquiries: Christina Ra, Argo Corporation, christina@rideargo.com, (800) 575-7051

Copyright CNW Group 2024 
 

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November 29, 2024 17:30 ET (22:30 GMT)