JEMTEC INC.TSX-V: JTC
VANCOUVER, BC, June 27,
2023 /CNW/ - JEMTEC Inc. (TSXV: JTC)
(the "Company") is reporting an update on its performance for the
fiscal Quarter ended April 30, 2023
(2023 Q3) and the Companies financial situation, with no debt,
strong liquidity and net worth.
Q3 Revenues
Revenues have decreased by 51% during
the quarter ended April 30, 2023 compared
to the quarter ended April
30, 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.
Q3 Expenses
During the quarter ended April 30,
2023, expenses decreased by 23% compared to the quarter
ended April 30, 2022 primarily due to
the fluctuations in consulting fees, monitoring and activation
fees, professional fees, repairs and maintenance, share-based
payments and travel.
Q3 Income Tax
For the quarter ended April 30,
2023, the Company recognized a current income tax expense of
$Nil (April 30, 2022 - $53,000) and a deferred income tax expense of
$3,000 (April
30, 2022 - $3,000). The
current income tax expense was related to income tax in
Canada. The deferred income tax
recovery was related to unrecognized deferred tax assets. Income
tax recovery represents tax recoverable for the quarter.
Q3 Net Income
For the quarter ended April 30,
2023, the Company recorded a net loss of $75,071, compared to a net income of $118,347 during the quarter ended April 30, 2022. This decrease in net income is
primarily due to the loss of the Ontario contract.
Q3 Liquidity
At April 30, 2023, the Company had
cash and cash equivalents of $2,213,213 and working capital of $2,212,252. 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.