CUPERTINO, Calif., Feb. 28,
2024 /CNW/ - (TSXV: BWLK) (OTCQB: BWLKF) -
Boardwalktech Software Corp. ("Boardwalktech" or the "Company"), a
leading digital ledger platform and enterprise software solutions
company, is pleased to report its financial results for the
three-and nine-month period ended December
31, 2023. All figures are reported in U.S. dollars, unless
otherwise indicated. Boardwalktech's financial statements are
prepared in accordance with International Financial Reporting
Standards ("IFRS").
Financial Highlights:
- Revenue for Q3- 2024 was $1.48
million, a 3% increase from $1.53
million in Q2-FY23 and versus $1.55
million in Q1-FY23. Revenue from recurring SaaS licenses in
Q3-FY24 increased 6% sequentially and year-over-year, but was
offset by a 42% sequential and 76% year-over-year decline in
professional services.
- Annual recurring revenue ("ARR"), a non-IFRS metric, at
December 31, 2023 was $5.7 million, unchanged versus ARR of
$5.7 million at September 30, 2023. The Company defines ARR as
the annual recurring revenue expected based on license
subscriptions and recurring services recognized in the
quarter.
- Gross margin for Q3-FY24 was 89.1%, comparable with the 90.1%
level in Q2-FY24 and 91.5% in Q3-FY23.
- Adjusted EBITDA for Q3-FY24 was a loss of $(0.38) million, comparable with $(0.36) million loss in Q2FY2423 and versus a
$(0.24) million loss in Q3FY24.
- Cash and electronic payments (share subscription receivables)
for 3QFY24 totaled $1.3 million, upon
closing of the first tranche of our private placement.
- Non-IFRS net loss for Q3-FY24 (as defined in the Non-IFRS
Financial Measures section) totaled $(0.4)
million, or a loss of $(0.01)
per basic and diluted share, versus a $(0.4)
million non-IFRS loss in Q2-FY24, or a loss of $(0.01) per basic and diluted share, and versus a
$(0.3) million non-IFRS loss in
Q3-FY23, or a loss of $(0.01) per
basic and diluted share.
- Net loss for Q3-FY24 was $(0.76)
million, or a loss of $(0.02)
per basic and diluted share, versus a $(0.71) million loss in Q2-FY24, or $(0.02) per basic and diluted share, and versus
$(0.65) million loss in Q3 Fiscal
2023, or $(0.01) per basic and
diluted share. The sequential change was due primarily from
operating expense control offset by the lower professional service
revenue.
Operations Highlights and Subsequent Events
- On November 27, 2023, the Company
announced the extension and expansion of its existing engagement
with a leading Fortune 50 technology company, including the first
annual license. Combined license and services revenue from this
expanded plan is expected to exceed US$400,000 over the next 12 months.
- As of January 16, 2024, the
Company announced the that it had expanded commercial agreements
with three of its existing customers, with one of these customers,
Sekisui Chemical, implementing Boardwalktech's new Unity Central
application to enhance its supply chain visibility and data
management capabilities.
- Also on January 16, 2024, the
Company announced a realignment of resources allowing the Company
to focus efforts on selective strategic Sales and Marketing
additions. These actions are expected to generate approximately
US$1,000,000 in annual cost savings
and help accelerate its projected timeline to profitability without
sacrificing growth. The reported figures for 3Q-FY24 do not include
any impact of these actions, but will impact the current and future
quarters.
- On January 25, 2024, the Company
announced the extension and upsizing for the final closing in
respect to the second tranche of the previously announced
LIFE-based (Listed Issuer Financing Exemption), non-brokered unit
private placement for up to an additional CAD 490,400 of gross proceeds.
- On February 26, 2024, the Company
announced it had closed the second and final tranche of the
aforementioned LIFE-based (Listed Issuer Financing Exemption), non-
brokered Unit private placement for issuance of 473,400 Units at
CAD 0.30 per Unit on the same terms
as the first tranche. Concurrently with the completion of the
second tranche of the LIFE Offering, the Company also issued 32,825
Units on a non-brokered basis to United
States investors, at US$0.22
(equivalent of C$0.30) with
equivalent commercial terms for each warrant per Unit. Collectively
across both tranches of the Offering a total of 7,521,578 Units
were issued, and an aggregate of C$2,256,473 gross proceeds were raised.
"During the quarter, we realigned our resources to focus on
sales and marketing that should achieve better pipeline conversion
while accelerating our timeline to Adjusted EBITDA breakeven, which
we expect to achieve by this summer. We remain enthusiastic about
our Velocity product in the financial services sector, as we
continue to sign new partners to work with delivering this unique
remediation and risk management product to the market." stated
Andrew T. Duncan, President and
Chief Executive Officer of Boardwalktech. "All signs continue to
point to positive results and an upward momentum for the
Company. We signed our first major Unity Central license in
the December quarter with addition customers poised to execute over
the next few months, complementing our land and expand growth for
our core digital ledger solution."
Earnings Conference Call Details
Boardwalktech management will be hosting its earnings conference
call today (February 28, 2024).
Detail:
Time: 5:00PM Eastern Time / 2:00 PM Pacific Time
To join the call, please use the following dial-in
information:
North American Participants: Please dial
1-888-664-6383 (Toll Free) or 416-764-8650
(Local – Toronto)
European Participants: 0800 724 0293 (Germany), 0800 312 635 (Switzerland), 0800 652 2435
(UK).
Rapid Connect URL:
https://emportal.ink/3T4qW3r (copy & paste to your
browser)
A replay of the call will be available until March 6, 2024 and can be accessed by dialing
1-888-390-0541 and entering access code 065643#
About Boardwalktech Software
Corp.
Boardwalktech has developed a patented Digital Ledger Technology
Platform currently used by Fortune 500 companies running
mission-critical applications worldwide. Boardwalktech's digital
ledger technology and its unique method of managing vast amounts of
structured and unstructured data is the only platform on the market
today where multiple parties can effectively work on the same data
simultaneously while preserving the fidelity and provenance of the
data. Boardwalktech can deliver collaborative, purpose-built
enterprise information management applications on any device or
user interface with full integration with enterprise systems of
record in a fraction of the time it takes other non-digital ledger
technology-based platforms. Boardwalktech is headquartered in
Cupertino, California with offices
in India and operations in
North America. For more
information on Boardwalktech, visit our website at
www.boardwalktech.com.
Forward-Looking Information and
Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking information and statements are not
representative of historical facts or information or current
condition, but instead represent only the Company's beliefs
regarding future events, plans or objectives, many of which, by
their nature, are inherently uncertain and outside of the Company's
control. Generally, such forward-looking information or statements
can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or may contain statements that certain actions, events
or results "may", "could", "would", "might" or "will be taken",
"will continue", "will occur" or "will be achieved".
By identifying such information and statements in this manner,
the Company is alerting the reader that such information and
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of the Company is speculative and
subject to several risks including, without limitation, the risks
discussed under the heading "Risk Factors" in the Company's filing
statement dated May 30, 2018.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in the forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended.
In connection with the forward-looking information and
forward-looking statements contained in this press release, the
Company has made certain assumptions. Although the Company believes
that the assumptions and factors used in preparing, and the
expectations contained in, the forward-looking information and
statements are reasonable, undue reliance should not be placed on
such information and statements, and no assurance or guarantee can
be given that such forward-looking information and statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information and
statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward- looking information and statements attributable to the
Company or persons acting on its behalf is expressly qualified in
its entirety by this notice.
Neither 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.
SOURCE BoardwalkTech