Fountain Asset Corp. Announces its Financial Results for the Quarter and Year Ended December 31, 2022
April 26 2023 - 5:52PM
Fountain Asset Corp. (TSXV:FA) (“Fountain” or the
“Company”) would like to announce its financial results for the
three months ended December 31, 2022 (“
Q4/22”) and
for the year ended December 31, 2022 (“
Fiscal
2022”).
Highlights from Q4/22:
-
Net asset value (“NAV”) of $11.84 million ($0.19
per share) at December 31, 2022 compared to $13.33 million ($0.22
per share) at September 30, 2022, representing an 14% decrease
quarter over quarter on a per share basis. NAV is calculated as the
value of total assets less the value of total liabilities;
-
Net comprehensive loss of $1.57 million for the three months ended
December 31, 2022, compared to net comprehensive loss of $3.61
million for three months ended December 31, 2021
(“Q4/21”);
-
Total loss from investment activity was $0.95 million compared to
total loss of $3.01 million for Q4/21;
-
Net realized losses on the sale of portfolio investments of $3.5
million compared to net realized gains of $1.19 million for
Q4/21;
-
Net unrealized gains on portfolio investments of $2.55 million
compared to net unrealized losses of $4.27 million for Q4/21;
-
Total expenses of $0.4 million, which included $0.07 million of
stock-based compensation, compared to $0.60 million for Q4/21 which
included $0.03 of stock-based compensation; and
-
Operating expenses of $0.31 million compared to $0.54 million for
Q4/21.
Highlights from Fiscal
2022:
-
NAV of $11.84 million ($0.19/share) at December 31, 2022 compared
to $20.22 million ($0.33/share) at December 31, 2021, representing
a 42% decrease year over year on a per share basis;
-
Net comprehensive losses of $8.51 million compared to income of
$0.80 million for the year ended December 31, 2021 (“Fiscal
2021”);
-
Total losses from investment activity was $7.18 million compared to
total revenue of $2.40 million for Fiscal 2021;
-
Net realized losses on the sale of portfolio investments of $5.68
million compared to net realized gains of $3.32 million for Fiscal
2021;
-
Net unrealized losses on portfolio investments of $1.53 million
compared to net unrealized losses of $1.10 million for Fiscal
2021;
-
Total expenses of $1.37 million, which included a foreign exchange
gain of $0.04 million and stock-based compensation of $0.13
million, compared to $1.57 million for Fiscal 2021, which included
foreign exchange loss of $0.04 million, and $0.16 million of
stock-based compensation; and
-
Operating expenses of $0.88 million compared to $1.36 million for
Fiscal 2021.
During 2022, the company saw a decrease in its
portfolio of private and publicly traded companies as a result of
increased volatility and uncertainty that plagued the market
throughout the year. These decreases were slightly offset by
increased valuations at December 31, 2022 in Fyllo and SRG Mining
Inc.
The Company reported total expenses of $1.37
million for Fiscal 2022 compared to $1.57 million in the prior
year. Operating expenses were maintained year over year at $0.88
million for Fiscal 2022 compared to $0.97 million excluding the
annual incentive plan expense for Fiscal 2021 of $0.39 million.
The Company saw net comprehensive loss of $8.51
million for Fiscal 2022 compared to net comprehensive income of
$0.80 million for Fiscal 2021. As at December 31, 2022, the
Company’s adjusted net assets were valued at $16.71 million or
$0.27 per share compared to $24.44 million or $0.40 per share at
December 31, 2021.
“Fiscal 2022 presented a unique set of
challenges as a result of volatile and uncertain market conditions.
During the year, the Fountain NAV declined inline with the TSX
Venture. The Company was focused on maintaining its investments to
preserve value for the Company and its shareholders, while
continuing to take advantage of relationships and new
opportunities. We believe that with our current investment
portfolio, the Company has positioned itself well to capitalize on
new investment opportunities and realize economic benefits from the
positions we currently hold,” said Andrew Parks, CEO of
Fountain.
A full set of the 2022 audited financial
statements and the management discussion & analysis are
available on SEDAR.
About Fountain Asset Corp.
Fountain Asset Corp. is a merchant bank which
provides equity financing, bridge loan services (asset
back/collateralized financing) and strategic financial consulting
services to companies across many industries such as marijuana, oil
& gas, mining, real estate, manufacturing, retail, financial
services, and biotechnology.
Forward-Looking Statements
Certain information contained in this press
release constitutes forward-looking information, which is
information relating to possible events, conditions or results of
operations of the Company, which are based on assumptions and
courses of action and which are inherently uncertain. All
information other than statements of historical fact may be
forward-looking information. Forward-looking information in this
press release includes, but is not limited to, growing Fountain’s
capital base and a strong pipeline going forward. These
forward-looking statements reflect the current expectations or
beliefs of the Company based on information currently available to
the Company. Forward-looking statements are subject to a number of
risks and uncertainties that may cause the actual results of the
Company to differ materially from those discussed in the
forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that
they will have the expected consequences to, or effects on, the
Company. Factors that could cause actual results or events to
differ materially from current expectations include, among other
things: the level of bridge loans and equity investments completed,
the nature and credit quality of the collateral security and the
nature and quality of equity investments, and the other risks
disclosed under the heading "Risk Factors" and elsewhere in the
Company's annual information form dated August 17,
2022 filed on SEDAR at www.sedar.com. Any forward-looking
statement speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Although the Company
believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance
should not be put on such statements due to the inherent
uncertainty therein.
Neither TSX Venture Exchange Inc. 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.
For further information: please contact Andrew
Parks at (416) 456-7019 or visit Fountain Asset Corp.'s website at
www.fountainassetcorp.com.
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