JEMTEC
INC.TSX-
V: JTC

VANCOUVER, BC, Nov. 23, 2022 /CNW/ - JEMTEC Inc. (TSXV: JTC) (the "Company") is pleased to provide an update on its performance for the year ended July 31, 2022 and the Companies financial situation, with no debt, strong liquidity and net worth.

Y/E Revenues
Revenues have increased by 9% during the year ended July 31, 2022 compared to for the year ended July 31, 2021 primarily due to increased revenues from SOLGEN and the province of Saskatchewan. The Company earned revenues on its agreements with the Provinces of Saskatchewan, Nova Scotia as well as the CSC and SOLGEN. The Company also earned revenues from private bail clients by presenting the release plans for court cases.

Y/E Expenses
During the year ended July 31, 2022, expenses increased by 7% compared to the year ended July 31, 2021 primarily due to the fluctuations in depreciation, directors' fees, equipment rent and installation, foreign exchange, office, repairs and maintenance, and share-based payments.

Y/E Income Tax
For the fiscal year ended July 31, 2022, the Company recognized a current income tax expense of $219,000 (2021 - $166,000) and a deferred income tax expense of $11,000 (2021 – recovery $51,000). The current income tax expense was related to income tax in Canada. The deferred income tax was related to unrecognized deferred tax assets/liabilities.

Y/E Net Income
For the year ended July 31, 2022, the Company recorded a net income of $550,957, compared to a net income of $561,610 during the year ended July 31, 2021. This decrease in net income is primarily due to increase in income tax.

Y/E Liquidity
As at July 31, 2022, the Company had cash and cash equivalents of $2,167,495 and working capital of $2,362,677. 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 are very pleased with the Year End results and we continue to see the Company well positioned to grow its core business and increase market share however while revenues have increased by 9% overall in the year over year, the loss of the SOLGEN contract is expected to negatively affect the Company's revenues by approximately 40%" and may affect Net Income by up to 90% pending additional 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.

Copyright 2022 Canada NewsWire

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