JEMTEC INC. TSX-V: JTC
VANCOUVER, BC, March 30,
2023 /CNW/ -
JEMTEC Inc. (TSXV: JTC) (the "Company") is reporting an update on its performance for the fiscal
Quarter ended January 31, 2023 (2023 Q2)
and the Companies financial situation, with no debt,
strong liquidity and net worth.
Q2 Revenues
Revenues have decreased by 51% during the quarter ended
January 31, 2023 compared to the
quarter ended January 31, 2022
primarily due to the loss of Ontario contract. The Company earned revenues
on its agreements with the Provinces of Saskatchewan, Nova
Scotia as well as the CSC. The Company also earned revenues
from private bail clients by presenting the release plans for court
cases.
Q2 Expenses
During the quarter ended January 31,
2023, expenses decreased by 13% compared to the quarter
ended January 31, 2022 primarily due
to the fluctuations in consulting fees, equipment rent and
installation, monitoring and activation fees, and share-based
payments.
Q2 Income Tax
For the quarter ended January 31,
2023, the Company recognized a current income tax (recovery)
expense of $(3,345) (January 31, 2022 - $54,000) and a deferred income tax expense of
$7,000 (January 31, 2022 - $4,000). The current income tax expense was
related to income tax in Canada.
The deferred income tax recovery was related to unrecognized
deferred tax assets.
Q2 Net Income
For the quarter ended January 31,
2023, the Company recorded a net loss of $92,729, compared to a net income of $153,461 during the quarter ended January 31, 2022. This decrease in net income is
primarily associated with the loss of Ontario contract.
Q2 Liquidity
At January 31, 2023, the Company
had cash and cash equivalents of $2,232,673 and working capital of $2,271,222. All cash and cash equivalents are on
deposit with a Schedule I bank in Canada in current or interest accruing
accounts.
Eric Caton, President and CEO
said, "We continue the process of reorganizing our business model
with a greater awareness on non-government contracts, we expect the
results should show positive returns going forward and we continue
to see the Company well positioned to grow its core business.
Jemtec has provided a full spectrum of monitoring technologies and
services to provincial and federal correctional and border services
across Canada since 1987 and in
doing so has built a reputation for offering the best technological
solutions and support for use in this demanding environment.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, which
relate to future events or future performance and reflect
management's current expectations and assumptions. Such forward -
looking statements reflect management's current beliefs and are
based on assumptions made by and information
currently available
to the Company. Investors are
cautioned that these
forward- looking statements are neither
promises nor guarantees,
and are subject to risks and uncertainties that may cause future results
to differ materially from those expected.
These forward-looking statements are made as of the date hereof and, except
as required under applicable securities legislation, the Company does not assume
any obligation to update or revise them to
reflect new events or circumstances.
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.
SOURCE Jemtec Inc.
