Mark Silver,
Executive Chairman and Director, will be taking on the role of
Chief Executive Officer
Q2/2022 HIGHLIGHTS
- Changes to senior management highlighted by Mark Silver assuming the role of Chief Executive
Officer and the promotion of Sajid
Khan to President & COO.
- Total contracted revenue (backlog) increases 97% to
$32.6 million during the six months
ended June 30, 2022.
- Revenue growth of 54% during Q2/2022 over the comparable
quarter.
- Revenue growth of 29% during YTD Q2/2022 over the comparable
period.
TORONTO, Aug. 25,
2022 /CNW/ - Eddy Smart Home Solutions Ltd. (formerly
Aumento Capital VIII Corp.) ("Eddy" or the "Company") (TSXV: EDY)
released its unaudited financial statements for the three and six
months ended June 30, 2022.
SENIOR MANAGEMENT CHANGES
The current Executive
Chairman and Director, Mark Silver,
will be taking on the role of Chief Executive Officer, as a result
of the resignation by Travis Allan
as both CEO and Director. Mark
Silver has over 36 years of experience in business, real
estate and building services. As a focused and successful
entrepreneur, he previously co-founded Direct Energy and grew
revenues to more than $1.3 billion
before selling in 2000. He subsequently launched Universal Energy
(purchased by Just Energy for $425
million) and National Home Services (purchased by Reliance
Comfort for $505 million). Mr. Silver
launched Eddy in 2014 with a goal to extend smart home service
offerings to water protection and expand into other markets – such
as building and commercial verticals. The board of directors wishes
to thank Travis for all of his services.
Sajid Khan has been appointed as
President & Chief Operating Officer. Mr. Khan has served in the
role of Chief Operating Officer of Eddy since inception. His
experience includes more than 20 years of leadership and
operational experience in the home services sector. Mr. Khan has
held various roles including Chief Operating Officer of Eco Energy
Service, Vice President of Operations at both National Home
Services and Universal Energy, as well as management positions in
Direct Energy. He has extensive experience building and leading
installation networks and teams and other operational departments
such as call centres, billing, processing, and change
management.
The change in roles strengthens the overall senior management
team and will position the Company for continued growth and
maximize value creation from its rapidly expanding backlog of
contracted revenue.
REVENUE
Revenue for the three months ended
June 30, 2022, increased to
$507,185 as compared with
$328,908 reported for the comparable
period in 2021. Revenue for the six months ended June 30, 2022, increased to $888,851 as compared with to $688,330 reported for the comparable six-month
period in 2021.
NET LOSS
Net loss for the three months ended June 30,
2022, was ($2,615,166), as
compared to ($1,663,557) reported for
the comparable period in 2021.
Net loss for the six months ended June
30, 2022, was ($5,756,238),
excluding the non-recurring, non-cash reverse takeover listing
expense which amounted to $858,118,
the adjusted net loss for the six-months ended June 30, 2022, was ($4,898,120), as compared to ($2,867,746) reported for the comparable
six-month period.
BASIC AND DILUTED LOSS PER SHARE
Basic and
diluted loss per share for the three months ended June 30, 2022 was ($0.03), as compared to ($0.03) reported for the comparable period.
Basic and diluted loss per share for the six months ended
June 30, 2022 was ($0.08), as compared to ($0.05) reported in the comparable six-month
period.
GROWTH IN CONTRACTED REVENUE
Contracted revenue
is the primary measure of traction we are gaining in the market for
our leak protection services. As a result of the building
development cycle, in most cases, business garnered during the
quarter will not translate into revenue generation until the
building is constructed in the future (ranging from a few quarters
to approximately two years). As a result, a key operating metric of
our success and the value of the business can be measured by both
the existing contracted revenue and the growth of this figure. With
a mission to protect property and empower people with data and
control, the Company's contracted sales backlog continues to grow,
and during the first half of 2022, increased by over $16.1 million and stands at over $32.6 million, which represents the future
contracted revenue. The Company earns revenue over the term of its
contracts on a straight-line basis which commences upon
installation. The term of the contracts are typically 84
months.
The Company's future contracted water monitoring revenue as at
June 30, 2022 was $32.6 million (December
31, 2021 – $16.5 million),
which is an increase of 97% and demonstrates significant sales
momentum.
STRATEGIC ACQUISITION
On May 4, 2022, the Company acquired a 100%
ownership interest in Reed Controls Inc. ("Reed"). Reed develops a
robust water management technology platform of hardware and cloud
software to manage water related risk, converge water and
accelerate Internet of Things ("IoT") adoption among global
plumbing manufacturers. The primary reason of the acquisition is to
allow the Company to expand the product offering with a greater
focus on commercial solutions for smart water metering products and
monitoring services. The total purchase price for the transaction
was $4,538,420 which was paid through
the issuance of 12,266,000 common shares ("Share
Consideration").
The Share Consideration is subject to a twenty-four (24) month
lock-up period, provided that the Share Consideration will be
released from the lock-up requirements on the first business day
following each of the four, six, nine, twelve, fifteen, eighteen
and twenty-one month anniversaries of the closing date. Upon the
closing of the transaction, Reed's founders joined the Company's
leadership team. Reed has also been granted a right to nominate a
director to serve on the Company's board of directors (the
"Board"), and a Board observer.
UPDATE ON THE RESTATEMENT OF THE FINANCIAL
STATEMENTS
On August 19, 2022,
the Company announced the intentions to restate its financial
statements and MD&A, related to the interpretation and
application of certain technical accounting standards related to
non-cash consideration provided to a developer and customer (the
"Developer") through an amended exclusive supplier agreement dated
December 15, 2021 (the "Addendum"),
which upon further analysis the estimate amount has been
revised.
For the year ended December 31,
2021, the impact is expected to be isolated to the
consolidated statement of financial position, increasing prepaid
expenses and contributed surplus by approximately $944K (initially estimated at $1.6 million). For the three months ended
March 31, 2022, the impact to prepaid
expenses is expected to slightly less than the December 31, 2021 impact, with a further impact
of an expected reduction to general and administrative expenses and
deficit of approximately $1.55
million, along with immaterial adjustments to contributed
surplus and revenue.
This restatement has no impact on cash flows and business
operations.
The Company intends to file its restated financial statements
and the corresponding management discussion and analysis on or
about September 30, 2022.
ABOUT EDDY
Eddy is a North American provider and
developer of residential and commercial smart water metering
products and monitoring services, helping property owners protect,
control, and conserve water usage by combining water sensing
devices with behavioural learning software. For more detail on the
Company's products or corporate information please visit
www.eddysolutions.com.
For further information on the financial results of the Company,
please review the Company's unaudited condensed consolidated
interim financial statements and management's discussion and
analysis of the financial condition and results of operations for
the three and six months ended June 30,
2022, available on Eddy's SEDAR website at www.sedar.com. In
addition, supplemental information is available on the Eddy's
website at www.eddysolutions.com/investors.
FORWARD-LOOKING INFORMATION AND STATEMENTS
This news
release contains forward-looking statements within the meaning of
applicable securities laws including, among others, statements
concerning our objectives, our strategies to achieve those
objectives, our performance, as well as statements with respect to
management's beliefs, estimates, and intentions, and similar
statements concerning anticipated future events, results,
circumstances, performance, or expectations that are not historical
facts. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as "outlook",
"objective", "may", "will", "expect", "intent", "estimate",
"anticipate", "believe", "should", "plans", or "continue", or
similar expressions suggesting future outcomes or events. Such
forward-looking statements reflect management's current beliefs and
are based on information currently available to management. Forward
looking information in this news release includes information
regarding additional future contracted revenue, the Company's
leadership position in intelligent water management and leak
protection and the expectation of future sales momentum. These
statements are not guarantees of future performance and are based
on our estimates and assumptions that are subject to risks and
uncertainties, including those described under the heading "Risk
Factors" in the Company's filing statement dated January 6, 2022 "(a copy of which can be obtained
at www.sedar.com), which could cause our actual results and
performance to differ materially from the forward-looking
statements contained in this news release.
All forward-looking statements in this news release are
qualified by these cautionary statements. Except as required by
applicable law, the Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Eddy Smart Home Solutions Ltd.