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Xtract One Announces Annual Fiscal 2024 Results

TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — Xtract One Technologies Inc. (TSX: XTRA) (OTCQX: XTRAF) (FRA: 0PL) (“Xtract One” or the “Company”) a leading technology-driven threat detection and security solution that prioritizes the patron access experience by leveraging artificial intelligence (AI), today announced its annual results for the year ended July 31, 2024. All information is in Canadian dollars unless otherwise indicated.

“What a year it’s been! With record results across the board, we continue to make progress towards profitability through operational execution and higher top line growth,” stated Peter Evans, Chief Executive Officer of Xtract One. “Revenue for the year was $16.4 million – quadruple that of last year – while our combined backlog rose to $26.8 million, reflecting strong demand across all vertical markets. We’re positioning the Company for continued expansion going forward as we are seeing growing interest from all types of customers – stadiums and arenas to schools, business centers, and factories – putting us on track for even greater performance in fiscal 2025.”

“To add further momentum to this success, the recent introduction of Xtract One Gateway will significantly expand our addressable market, and win rate in those markets, by improving the Company’s competitive positioning. Xtract One Gateway will allow high-traffic facilities like schools, convention centers, and commercial properties to quickly screen patrons who may have laptops, tablets or other large metallic objects while still accurately detecting weapons. As the only product on the market with these capabilities, it’s clearly transformational for us and the industry.”

Fiscal 2024 Annual Highlights

  • Record revenue of $16.4 million for the year ended July 31, 2024 versus $4.1 million in the prior fiscal year
  • Gross profit margin of 63% for the year ended July 31, 2024 versus 60% in the prior fiscal year
  • Total contract value of new bookings1 was $29.8 million for the year ended July 31, 2024 as compared to $15.0 million during the prior fiscal year
  • Platform contractual backlog was $13.8 million at the end of fiscal 2024 as compared to $4.1 million at the end of fiscal 2023. This excludes an additional $13.0 million of agreements pending installation1 at the end of fiscal 2024 versus $10.4 million at the end of fiscal 2023
  • Loss and comprehensive loss was $11.1 million for the year ended July 31, 2024 as compared to $16.3 million for the prior year
  • Subsequent to July 31, 2024, the Company launched Xtract One Gateway, with advanced bi-directional configurable screening and proprietary sensors, for precise weapons detection at locations where users carry a medium volume of personal items such as laptops

Fourth Quarter Highlights

  • Record quarterly revenue of $5.6 million for the three months ended July 31, 2024 versus $1.8 million in the prior year period
  • Gross profit margin of 65% for the fourth quarter versus 70% in the prior year period
  • Total contract value of new bookings1 was $5.6 million for the three months ended July 31, 2024 as compared to $5.2 million for the prior year period
  • Loss and comprehensive loss was $2.4 million for the three months ended July 31, 2024 as compared to $3.3 million for the same period in fiscal 2023

This press release should be read in conjunction with the Company’s Annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s Management’s Discussion and Analysis for the years ended July 31, 2024 and 2023, which can be found under the Company’s profile on SEDAR+ at www.sedarplus.ca.

Conference Call Details

Xtract One will host a conference call to discuss its results on October 25, 2024 at 10:00 am ET. Peter Evans, CEO and Director, and Karen Hersh, CFO and Corporate Secretary, will provide an overview of the financial results along with management’s outlook for the business, followed by a question-and-answer period.

The webcast and presentation will be accessible on the Company’s website. The webcast can be accessed here and the telephone number for the conference call is 844-481-3016 (412-317-1881 for international callers).

About Xtract One Technologies

Xtract One Technologies is a leading technology-driven provider of threat detection and security solutions leveraging AI to deliver seamless and secure experiences. The Company makes unobtrusive weapons and threat detection systems that enable facility operators to prioritize and deliver improved “Walk-right-In” experiences while providing unprecedented safety. Xtract One’s innovative portfolio of AI-powered Gateway solutions excels at allowing facilities to discreetly screen and identify weapons and other threats at points of entry and exit without disrupting the flow of traffic. With solutions built to serve the unique market needs for schools, hospitals, arenas, stadiums, manufacturing, distribution, and other customers, Xtract One is recognized as a market leader delivering the highest security in combination with the best individual experience. For more information, visit www.xtractone.com or connect on Facebook, X, and LinkedIn.

For further information, please contact:

Xtract One Inquiries: [email protected], http://www.xtractone.com    
Media Contact: Kristen Aikey, JMG Public Relations, 212-206-1645, [email protected]
Investor Relations: Chris Witty, Darrow Associates, 646-438-9385, [email protected]

1Supplementary Financial Measures
The Company utilizes specific supplementary financial measures in this earnings release to allow for a better evaluation of the operating performance of the Company’s business and facilitates meaningful comparison of results in the current period with those in prior periods and future periods. Supplementary financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to measures presented by other companies. Supplementary financial measures presented in this earnings release include ‘Agreements pending installation’ and ‘Total contract value of new bookings.’ Agreements pending installation reflects total value of signed contracts awarded to the Company that has not been installed at the customer site. ‘Total contract value of new bookings’ is comprised of all new contracts signed and awarded to the Company, regardless of the performance obligations outstanding as of the end of the reporting period. Total contract value is the aggregate value of sales commitments from customers as at the end of the reporting period without consideration of the Company’s completion of the associated performance obligations outlined in each contract.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipates”, “expects”, “believes”, and similar expressions or the negative of these words or other comparable terminology. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include but are not limited to the risks detailed from time to time in the continuous disclosure filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law.

No securities exchange or commission has reviewed or accepts responsibility for the adequacy or accuracy of this release.

Consolidated Statements of Loss and Comprehensive Loss for the Years Ended July 31, 2024 and 2023

The following table is extracted from the Company’s consolidated financial statements and presented in Canadian dollars to demonstrate the Statements of Loss and Comprehensive loss for the years ended July 31, 2024 and 2023:

        2024       2023    
             
Revenue          
Platform revenue   $ 15,969,996     $ 3,596,999    
Xtract revenue     388,011       514,245    
Total revenue   $ 16,358,007     $ 4,111,244    
             
Cost of revenue          
Platform cost of revenue   $ 5,858,611     $ 1,383,623    
Xtract cost of revenue     241,377       242,724    
Total cost of revenue   $ 6,099,988     $ 1,626,347    
             
Gross profit   $ 10,258,019     $ 2,484,897    
             
Operating expenses          
Selling and marketing   $ 5,593,432     $ 4,566,130    
General and administration     7,479,609       6,813,847    
Research and development     8,265,043       7,078,280    
Loss on inventory write-down     175,042       346,374    
Loss on retirement of assets     95,066       181,107    
Total operating expenses   $ 21,608,192     $ 18,985,738    
             
Loss from operations     (11,350,173 )     (16,500,841 )  
             
Other income (loss)          
Unrealized gain on investments           58,333    
Realized loss on investment           (55,082 )  
Interest and other income     285,318       161,117    
             
Loss and comprehensive loss for the year     $ (11,064,855 )   $ (16,336,473 )  
             
Weighted average number of shares     203,820,258       176,664,492    
             
Basic and diluted loss per share   $ (0.05 )   $ (0.09 )  
             

Consolidated Statements of Financial Position as at July 31, 2024 and 2023

The following table is extracted from the Company’s consolidated financial statements and presented in Canadian dollars to demonstrate the Company’s financial position as at July 31, 2024 and July 31, 2023:

    July 31, 2024   July 31, 2023
Assets      
Current assets      
  Cash and cash equivalents $ 8,628,521     $ 8,327,449  
  Receivables   3,862,199       847,429  
  Prepaid expenses and deposits   949,012       1,026,668  
  Current portion of deferred cost of revenue   371,309        
  Inventory   3,688,246       1,602,971  
         
      17,499,287       11,804,517  
         
Property and equipment   2,135,956       2,063,817  
Intangible assets   4,465,755       4,843,700  
Non-current portion of deferred cost of revenue   496,868        
Right of use assets   344,304       286,796  
         
Total assets $ 24,942,170     $ 18,998,830  
         
Liabilities      
Current liabilities      
  Accounts payable and accrued liabilities $ 3,991,292     $ 2,519,350  
  Current portion of deferred revenue   3,443,524       968,509  
  Current portion of lease liability   190,400       232,483  
         
      7,625,216       3,720,342  
         
Non-Current liabilities      
  Non-current portion of deferred revenue   3,155,579       411,232  
  Non-current portion of lease liability   190,526       124,358  
         
    $ 10,971,321     $ 4,255,932  
         
Shareholders’ equity      
  Share capital $ 144,372,452     $ 135,823,337  
  Contributed surplus   16,163,950       14,420,259  
  Accumulated deficit   (146,565,553 )     (135,500,698 )
         
    $ 13,970,849     $ 14,742,898  
         
Total liabilities and shareholders’ equity $ 24,942,170     $ 18,998,830  
         


Consolidated Statements of Cash Flows for the Years Ended July 31, 2024 and 2023

The following table is extracted from the Company’s consolidated financial statements and presented in Canadian dollars to demonstrate the Company’s cash flows for the years ended July 31, 2024 and 2023:

          2024       2023    
Cash flow used in operating activities          
  Loss and comprehensive loss for the year   $ (11,064,855 )   $ (16,336,473 )  
  Adjustment for:          
    Share-based compensation     1,036,744       950,536    
    Depreciation     1,303,571       923,764    
    Amortization     805,900       805,900    
    Finance cost     22,420       42,237    
    Loss on inventory     175,042       346,374    
    Loss on retirement of assets     95,066       181,107    
    Other income           (20,000 )  
    Realized loss on investments           55,082    
    Unrealized gain on investments           (58,333 )  
               
          (7,626,112 )     (13,109,806 )  
  Changes in non-cash working capital          
    Receivables     (3,014,770 )     1,047,727    
    Prepaid expenses and deposits     77,656       (358,018 )  
    Inventory     (4,522,739 )     (2,198,583 )  
    Deferred cost of revenue     250,853          
    Accounts payable and accrued liabilities     1,471,942       (99,732 )  
    Deferred revenue     5,219,362       1,183,090    
               
  Cash used in operating activities     (8,143,808 )     (13,535,322 )  
               
Cash flow used in investing activities          
  Acquisition of intangible assets     (427,955 )        
  Acquisition of right of use asset     (1,800 )        
  Purchase of property and equipment           (32,539 )  
  Disposal of investment – Gemina Labs           397,001    
               
  Cash (used in) received from investing activities     (429,755 )     364,462    
               
Cash flow from financing activities          
  Proceeds on issue of share capital, net of share issue costs   9,256,062       15,583,660    
  Lease payments     (381,427 )     (362,672 )  
               
  Cash received from financing activities     8,874,635       15,220,988    
               
Net increase in cash for the year   $ 301,072     $ 2,050,128    
               
Cash beginning of the year     8,327,449       6,277,321    
               
Cash end of the year   $ 8,628,521     $ 8,327,449    
               


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