- FY 2020 Revenue and Gross Profit increased 87% and 179%,
respectively
- Q4 2020 Revenue and Gross Profit increased 61% and 751%,
respectively
- Continued to strengthen robust business pipeline, while
broadening multi-year partnerships with current Fortune 500
clients
- Launched new relationship with a Fortune 500 apparel and
home fashion chain with over 90,000 employees
TORONTO, April 6, 2021 /CNW/ - Newtopia Inc.
("Newtopia" or the "Company") (TSXV: NEWU), a
tech-enabled habit change provider focused on disease prevention,
today reported financial results for the fourth quarter and full
year 2020. All amounts are expressed in Canadian dollars, unless
otherwise noted.
Fourth Quarter 2020 Financial Highlights (vs. Q4
2019):
- Revenue increased 61% to $2.5
million
- Gross profit1 increased 751% to $1.3 million
- Gross margin percentage improved to 51%, up from 10%
Full Year 2020 Financial Highlights (vs. 2019):
- Revenue increased 87% to $11.4
million
- Gross profit1 increased 179% to $5.5 million
- Gross margin percentage improved to 48%, up from 32%
"2020 was a historic year not just for our company but also for
the health of the global economy," said Jeff Ruby, Founder & CEO, Newtopia. "This
past May, we brought Newtopia public through a direct listing right
in the heart of the COVID-19 pandemic, and we did so with great
success."
"For the year, revenue and gross profit improved 87% and 179%,
respectively. Looking out over a longer time frame, on a compounded
annual basis since the end of 2017, revenue has improved nearly
100%, while gross profit increased approximately 179%. Our
engagement levels have risen as well, with 2020 participant
engagement at record highs and participant churn rates half that of
2019. Ultimately, after a most challenging year, through the
exceptional efforts of our entire team, Newtopia is very well
positioned for continued growth in 2021. I am confident that our
'one size fits one model' focused on keeping people healthy and
reducing the cost of care for health insurers will truly be a game
changer for the healthcare industry," Mr. Ruby concluded.
_____________________
|
1 Gross
profit is defined as revenue which is comprised of onboarding
welcome revenue, ongoing engagement fees and success fees, less
cost of sales which is comprised of welcome kit, compensation
expense for Inspirators and care specialists and genetic testing
costs. Gross profit is considered by management to be an
integral measure of financial performance and represents the amount
of revenues retained by the Company after incurring direct
costs. However, gross profit is not a recognized measure of
profitability under IFRS.
|
Recent Operational Highlights:
- Launched Habit Change Provider Category in January for
delivering workforce habit change at scale. Though in its early
stages, the category launch has been very well received by existing
and prospective clients who are attracted to the unique whole
person care – physical, mental and emotional health outcomes –
offered by the Company.
- Announced results of Santa Barbara Actuaries Inc. study
commissioned by Newtopia, which demonstrates that the Company's
programs can provide significant medical cost savings for Medicare
Advantage (MA) populations of up to US$1,700 per MA member. This expands Newtopia's
potential target base into the 65 years and older Medicare and
Medicare Advantage population.
- Launched a new relationship with a recognized Fortune 500
apparel and home fashion chain employing over 90,000 people. Phase
1 – the first six months of the program – has begun with a portion
of the employee workforce, with the opportunity to expand via
additional phases and employees.
- Continued to expand relationship with Fortune 50 healthcare
innovator with whom the Company launched in Q3 2020. Anticipate
greater expansion with this client beginning in the second quarter
of 2021.
"There is no question that the underlying Newtopia business
remains strong, driven by COVID-19 macro trends that support the
importance of health and prevention, a pipeline of new
opportunities and a strong base of current clients with which to
grow and expand our offerings," adds Mr. Ruby. "That said, as a
result of the global pandemic, we have seen our sales cycle shift
from a traditional fall cycle to the winter and the spring, which
in turn has delayed certain product launches. Given this shift, we
expect greater revenue from new product launches in the second half
of this year. With fewer anticipated new product launches in the
first two quarters of 2021, we will take this opportunity to
upgrade our smart technology platform to improve business
efficiencies as well as to enhance user experience. We look forward
to continuing to share our progress over the coming quarters as we
bring much needed change and cost savings to health insurers."
Newtopia's platform leverages genetic, social and behavioral
insights to create individualized prevention programs with a focus
on type 2 diabetes, heart disease, stroke and weight. The Company's
whole person approach combines virtual care, digital tools,
connected devices and actionable data science to assist in
preventing, slowing and reversing chronic disease while also
enriching mental and emotional health. Newtopia helps generate
sustainable habit change for participants while maintaining
clinical and financial outcomes for health insurers.
Fourth Quarter 2020 Financial Results
Revenue for the three months ended December 31, 2020 was $2.5
million, an increase of 61% as compared to $1.5 million in the prior-year period. The
year-over-year growth in the quarter reflected a continuation of
strong engagement fee revenue from the Q1 2020 product launch with
a highly innovative existing Fortune 500 financial services
partner.
Gross profit for the fourth quarter 2020 increased significantly
by 751% to total $1.3 million, as
compared to $0.15 million in the
prior-year period. Gross profit is comprised of Newtopia's revenue
less direct expenses, which include the cost of Welcome Kits sold
to new participants as well as labour costs associated with hiring
and training of the Company's coaching team of Inspirators. The
lower mix of Welcome Kit sales and labour costs to engagement
revenue in the three-month period ended December 31, 2020 as compared to the prior year
resulted in an increased profit margin of 51% for the quarter,
versus 10% for the fourth quarter of 2019. Engagement fee revenue
made up approximately 80% of the revenue mix in the fourth quarter
2020, as compared to approximately 60% in the same period for
2019.
Adjusted operating expenses2 in the three months
ended December 31, 2020 increased by
42% to total $3.8 million, compared
to $2.7 million in the prior-year
period, as the Company continued to add technology, sales and
marketing and administrative resources in support of longer term
growth. For the quarter, the Company had an adjusted operating
loss3 of $2.6 million,
compared to an operating loss of $2.5
million in the prior-year period.
Full Year 2020 Financial Results
For the full year ended December 31,
2020, revenue totaled $11.4
million, an increase of 87% as compared to $6.1 million in the prior-year period. The
year-over-year growth is attributed to an increase in participant
enrollment from the launch of a newly incentivized health plan
offered by a Fortune 500 financial services client in late
December 2019. This new plan resulted
in a surge in Welcome Kit and engagement revenues during the twelve
months ended December 31, 2020.
Gross profit for the year increased by 179% to total
$5.5 million, or 48% of revenue, as
compared to $2.0 million, or 32% of
revenue, in the prior year. Gross margins continue to improve as
the Company increases efficiency with participants through the use
of smart technology to engage activity and achieve longer-term
clinical results.
Adjusted operating expenses2 for the 12 months ended
December 31, 2020 increased by 52% to
total $11.3 million, compared to
$7.4 million for 2019. For the year,
the Company had an adjusted operating loss3 of
$5.8 million, compared to an
operating loss of $5.5 million for
2019.
Newtopia's audited financial statements and corresponding notes
and management's discussion and analysis of financial condition and
results of operations for the years ended December 31, 2019 and December 31, 2020, respectively, have been posted
under Newtopia's profile on the SEDAR website at www.sedar.com. The
financial information included in this news release is qualified in
its entirety and should be read together with the audited financial
statements and the notes for the years ended December 31, 2019 and December 31, 2020.
2021 Outlook
In the first quarter of each calendar year, Newtopia typically
experiences higher rates of new product launches, with a
corresponding increase in Welcome Kit and engagement revenues. As a
result of the COVID-19 pandemic, the Company has experienced a
delayed rollout of its products to some of its clients who are, for
the time being, understandably focused on prioritizing the
immediate health, safety and vaccination of their employees over
the launch of new initiatives such as Newtopia's platform. As a
result, unlike prior years, Newtopia anticipates revenue to hold
relatively steady in the first half of 2021, with an increase in
topline growth in the third and fourth quarters. While new product
rollouts may be softer in the first-half of the year, the Company's
multi-year contracts with its clients and overall underlying
business is very healthy with record levels of engagement. The
Company has also proactively added to its salesforce to bolster its
new business pipeline.
Newtopia remains at the forefront of advancements in habit
change technology within the virtual healthcare industry. With a
new Chief Technology Officer onboard as of November 2020, Newtopia has focused on making a
number of strategic technology investments to enhance the
efficiency of its tech-enabled services and provide its client base
with increased flexibility, improved user engagement and better
leverage of its Inspirator team of coaches. The Company expects
approximately $1.5 million of capital
expenditures in 2021, with a very small portion of this spend
already incurred in the fourth quarter of 2020. The remainder of
this total will be capitalized over the course of 2021 and weighted
toward the first three quarters of the year. This spend will be
directed toward improving the efficiency of Newtopia's operations
by leveraging new and improved engagement technologies to elevate
the overall user experience. Newtopia continues to take a measured
approach to adding expenses in support of growth, and increases in
expenses have been more modest than the Company's growth in revenue
and gross profit. As such, even with this increased capital
expenditure in 2021, Newtopia is still targeting to exit the year
cash flow neutral from operations.
____________________________
|
2 Adjusted
operating expenses consist of all cash-based technology, sales and
marketing and administrative expenses including employment expenses
for these functions excluding equity-settled share-based
compensation. Adjusted operating expense is not a measure of
financial performance under IFRS and should not be considered a
substitute for total operating expenses, which we believe to be the
most directly comparable IFRS measure.
|
3 Adjusted
Operating Loss consists of Gross profit less adjusted operating
income. Adjusted operating loss is not a measure of financial
performance under IFRS and should not be considered a substitute
for Loss from Operations which we believe to be the most directly
comparable IFRS measure.
|
Overall, Newtopia anticipates three key pillars of its growth
longer term, including: 1) the expansion of existing self-insured
employer client relationships; 2) the rollout of new self-insured
employer clients, 3) and the entry into new public and private
health insurer segments.
Grants of Stock Options
Newtopia further announced today that its Board of Directors has
approved the grant of 280,000 stock options to certain tenured
employees to Advisory Board members, consultants and newly
hired employees. The options issued to newly hired employees
will expire 5 years from the date such employees complete their
probationary period and the exercise price will be based on the
closing price of Newtopia common shares on the trading day prior to
the day they complete their probationary period. Options granted to
Advisory Board members and tenured employees will be at an exercise
price of $0.58 per common share and
will expire on April 8, 2026, being
five years from the grant date.
Newtopia can grant up to 18,114,870 stock options pursuant to
its stock option plan, representing approximately 20% of the
aggregate of the issued and outstanding common shares of the
Company on the date the Company's common shares were listed for
trading on the TSX Venture Exchange on May
4, 2020. Including the grants contemplated herein, Newtopia
will have 15,841,685 stock options outstanding.
About Newtopia
Newtopia is a tech-enabled habit change provider focused on
disease prevention and reducing the cost of care for health
insurers. As a provider of whole person care, we prevent, reverse
and slow the progression of chronic disease while enriching mental
health, resilience and overall human performance. Newtopia's
programs leverage genetic, social and behavioral insights to create
individualized prevention programs with a focus on type 2 diabetes,
heart disease, stroke and weight. With a person-centered approach
that combines virtual care, digital tools, connected devices and
actionable data science, Newtopia delivers sustainable clinical and
financial outcomes. Newtopia serves some of the largest nationwide
employers and health plans and is currently listed on the Toronto
Stock Exchange (TSXV: NEWU). To learn more,
visit newtopia.com, Facebook, LinkedIn or Twitter.
Forward Looking Information
This press release contains forward-looking information and
forward-looking statements, within the meaning of applicable
Canadian securities legislation, and forward looking statements,
within the meaning of applicable United
States securities legislation (collectively,
"forward-looking statements"), which reflects management's
expectations regarding Newtopia's future growth, results from
operations (including, without limitation, future production and
capital expenditures), performance (both operational and financial)
and business prospects and opportunities. Wherever possible, words
such as "predicts", "projects", "targets", "plans", "expects",
"does not expect", "budget", "scheduled", "estimates", "forecasts",
"anticipate" or "does not anticipate", "believe", "intend" and
similar expressions or statements that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved, or the negative or grammatical variation or other
variations thereof, or comparable terminology have been used to
identify forward-looking statements. All statements other than
statements of historical fact may be forward-looking information.
Such statements reflect Newtopia's current views and intentions
with respect to future events, based on information available to
Newtopia, and are subject to certain risks, uncertainties and
assumptions, including without limitation, the Company's
successful completion of its strategic technology projects
(including on budget), continued and sustained high levels of
client engagement and low client churn, the expansion of client
relationships, the rollout of new clients, the conversion of pilot
projects into full blown rollouts, the Company's ability to
continue to grow its sales pipeline, the ability of Nearwater to
deliver on the milestones set out in the consulting agreement, and
current financial trends remaining at or above the current levels
in respect of revenue, gross profit, gross margin percentage and
adjusted operating expenses. Material factors or assumptions were
applied in providing forward-looking information. While
forward-looking statements are based on data, assumptions and
analyses that Newtopia believes are reasonable under the
circumstances, whether actual results, performance or developments
will meet Newtopia's expectations and predictions depends on a
number of risks and uncertainties that could cause the actual
results, performance and financial condition of Newtopia to differ
materially from its expectations.
These forward-looking statements include, among other things,
clients continuing to offer Newtopia's platform pursuant to
agreements entered into, the timing and ability of the Company to
successfully complete strategic technology projects (including on
budget), continued and sustained high levels of client engagement
and low client churn, the expansion of client relationships, the
rollout of new clients, the conversion of pilot projects into full
blown rollouts, the Company's ability to continue to grow its sales
pipeline, the ability of Nearwater to deliver on the milestones set
out in the consulting agreement, the Company being confident that
it will continue to increase its revenue, gross profit, gross
margin percentage and adjusted operating expenses among other
financial metrics and current financial trends remaining at or
above current levels. Forward-looking statements are not a
guarantee and are based on a number of estimates and assumptions
management believes to be relevant and reasonable, whether actual
results, performance or developments will meet Newtopia's
expectations and predictions depends on a number of risks and
uncertainties that could cause the actual results, performance and
financial condition of Newtopia to differ materially from its
expectations. Certain of the "risk factors" that could cause
actual results to differ materially from Newtopia's
forward-looking statements in this press release include, without
limitation: the termination of contracts by clients, risks related
to COVID-19 including various recommendations, orders and measures
of governmental authorities to try to limit the pandemic,
including travel restrictions, border closures, non-essential
business closures, quarantines, self-isolations, shelters-in-place
and social distancing, disruptions to markets, economic activity,
financing, supply chains and sales channels, and a deterioration
of general economic conditions including a possible national or
global recession; and other general economic, market and business
conditions and factors, including the risk factors discussed or
referred to in Newtopia's disclosure documents, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedar.com including Newtopia's final long form prospectus dated
March 30, 2020.
Should any factor affect Newtopia's in an unexpected manner, or
should assumptions underlying the forward- looking information
prove incorrect, the actual results or events may differ materially
from the results or events predicted. Any such forward-looking
information is expressly qualified in its entirety by this
cautionary statement. Moreover, Newtopia does not assume
responsibility for the accuracy or completeness of such
forward-looking information. The forward-looking information
included in this press release is made as of the date of this press
release, and Newtopia undertakes no obligation to publicly update
or revise any forward-looking information, other than as required
by applicable law.
Non-GAAP Financial Measures
The Company's financial statements are prepared in accordance
with International Financial Reporting Standards ("IFRS").
Management uses certain non-GAAP measures, which are defined in the
appropriate sections of this press release, to better assess the
Company's underlying performance. These measures are reviewed
regularly by management and the Company's Board of Directors in
assessing the Company's performance and in making decisions about
ongoing operations. In addition, we use certain non-GAAP measures
to determine the components of management compensation. We believe
that these measures are also used by investors as an indicator of
the Company's operating performance. Readers are cautioned that
these terms are not recognized GAAP measures and do not have a
standardized GAAP meaning under IFRS and should not be construed as
alternatives to IFRS terms, such as net income.
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.
NEWTOPIA INC.
Key Financial Measures and Schedule of Non-GAAP
Reconciliations
Gross Profit
Information [1]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Years
Ended
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenue
|
2,476,904
|
|
1,537,685
|
|
11,416,319
|
|
6,109,282
|
Cost of
sales
|
(1,215,148)
|
|
(1,389,509)
|
|
(5,913,724)
|
|
(4,138,939)
|
Gross
profit
|
1,261,756
|
|
148,176
|
|
5,502,595
|
|
1,970,343
|
Gross
margin
|
51%
|
|
10%
|
|
48%
|
|
32%
|
Reconciliation of
Total Operating Expenses to Adjusted Operating
Expenses [2]
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Years
Ended
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
$
|
|
$
|
|
$
|
|
$
|
Total operating
expenses
|
4,190,148
|
|
4,227,448
|
|
13,234,441
|
|
12,110,933
|
Add
(Subtract)
|
|
|
|
|
|
|
|
Share-based
compensation
|
(395,043)
|
|
(1,460,206)
|
|
(771,662)
|
|
(2,024,780)
|
Depreciation of
property and equipment
|
(18,393)
|
|
(19,041)
|
|
(80,298)
|
|
(56,437)
|
Depreciation of
right-of-use asset
|
(46,189)
|
|
(46,190)
|
|
(184,767)
|
|
(184,766)
|
Interest and accretion
expense
|
-
|
|
(477,504)
|
|
(233,542)
|
|
(2,640,030)
|
Interest on lease
obligations
|
(33,358)
|
|
(38,775)
|
|
(143,325)
|
|
(158,642)
|
Finance
charges
|
(2,005)
|
|
(6,724)
|
|
(13,000)
|
|
(6,724)
|
Foreign exchange
loss/(gain)
|
(56,679)
|
|
(42,602)
|
|
34
|
|
(42,244)
|
Change in value of
convertible debenture derivative liabilities
|
-
|
|
140,178
|
|
(448,656)
|
|
54,081
|
Gain on extinguishment
of convertible debentures
|
-
|
|
408,778
|
|
-
|
|
408,778
|
Loss on settlement of
debt
|
-
|
|
-
|
|
(167,716)
|
|
-
|
Change in value of
derivative liability
|
194,966
|
|
6,637
|
|
131,162
|
|
(21,237)
|
Adjusted operating
expenses
|
3,833,447
|
|
2,691,999
|
|
11,322,671
|
|
7,438,932
|
NEWTOPIA INC.
Adjusted Operating
Loss [3]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Years
Ended
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
$
|
|
$
|
|
$
|
|
$
|
Gross
profit
|
1,261,756
|
|
148,176
|
|
5,502,595
|
|
1,970,343
|
Adjusted operating
expenses
|
(3,833,447)
|
|
(2,691,999)
|
|
(11,322,671)
|
|
(7,438,932)
|
|
(2,721,691)
|
|
(2,543,823)
|
|
(5,820,076)
|
|
(5,468,589)
|
NEWTOPIA INC.
Statements of Financial Position
As at December 31, 2020 and 2019
(Expressed in Canadian Dollars)
|
|
|
|
2020
|
2019
|
|
$
|
$
|
Assets
|
|
|
Current
assets
|
|
|
Cash
|
4,673,683
|
2,386,341
|
Trade and other
receivables
|
1,067,123
|
1,247,858
|
Unbilled
revenue
|
426,000
|
–
|
Prepaid expenses and
deposits
|
465,285
|
462,605
|
Inventories
|
278,696
|
604,920
|
Deferred
costs
|
232,089
|
–
|
|
7,142,876
|
4,701,724
|
Property and
equipment
|
129,913
|
186,376
|
Right–of–use
asset
|
554,305
|
739,072
|
Intangible
asset
|
68,948
|
–
|
|
7,896,042
|
5,627,172
|
|
|
|
Liabilities
|
|
|
Current
liabilities
|
|
|
Trade and other
payables
|
2,765,583
|
2,254,894
|
Lease
obligations
|
215,532
|
156,340
|
Convertible
debentures
|
–
|
3,993,758
|
Convertible
debentures derivative liabilities
|
–
|
1,952,638
|
Retractable preferred
shares
|
–
|
7,420,265
|
Derivative
liability
|
47,508
|
178,670
|
|
3,028,623
|
15,956,565
|
Non–current lease
obligations
|
667,558
|
883,090
|
|
3,696,181
|
16,839,655
|
|
|
|
Equity/Deficit
|
|
|
Common
shares
|
44,648,952
|
4,643,945
|
Common shares to be
issued
|
528,168
|
–
|
Preferred
shares
|
–
|
13,011,033
|
Special
Warrants
|
–
|
9,164,731
|
Contributed
surplus
|
10,046,621
|
5,172,192
|
Deficit
|
(51,023,880)
|
(43,204,384)
|
|
4,199,861
|
(11,212,483)
|
|
7,896,042
|
5,627,172
|
NEWTOPIA INC.
Statements of Loss and Comprehensive
Loss
Years Ended December 31, 2020 and
2019
(Expressed in Canadian Dollars)
|
|
|
|
2020
|
2019
|
|
$
|
$
|
|
|
|
Revenue
|
11,416,319
|
6,109,282
|
Cost of
sales
|
5,913,724
|
4,138,939
|
Gross
profit
|
5,502,595
|
1,970,343
|
Operating
expenses
|
|
|
Technology and
development
|
3,439,845
|
2,512,631
|
Sales and
marketing
|
3,528,912
|
1,709,794
|
Administrative
|
4,353,914
|
3,216,507
|
Share–based
compensation
|
771,662
|
2,024,780
|
|
12,094,333
|
9,463,712
|
|
|
|
Other expenses
(income)
|
|
|
Depreciation of
property and equipment
|
80,298
|
56,437
|
Depreciation of
right–of–use asset
|
184,767
|
184,766
|
Interest and accretion
expense
|
233,542
|
2,640,030
|
Interest on lease
obligations
|
143,325
|
158,642
|
Finance
charges
|
13,000
|
6,724
|
Foreign exchange
(gain)/loss
|
(34)
|
42,244
|
Change in value of
convertible debenture derivative liabilities
|
448,656
|
(54,081)
|
Gain on extinguishment
of convertible debentures
|
–
|
(408,778)
|
Loss on settlement of
debt
|
167,716
|
–
|
Change in value of
derivative liability
|
(131,162)
|
21,237
|
|
1,140,108
|
2,647,221
|
|
|
|
Net loss and
comprehensive loss
|
(7,731,846)
|
(10,140,590)
|
Loss per
share
|
|
|
Basic and diluted loss
per share
|
(0.12)
|
(0.65)
|
Weighted average
number of common shares outstanding
|
|
|
Basic and
diluted
|
66,942,270
|
15,535,919
|
NEWTOPIA INC.
Statements of Changes in Equity
(Deficit)
Years Ended December 31, 2020 and
2019
(Expressed in Canadian Dollars)
|
|
Common Shares
|
Shares
To Be
Issued
|
Preferred Shares
|
Special Warrants
|
Contributed Surplus
|
Deficit
|
Total
|
|
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
Balance, January
1, 2019
|
|
4,643,945
|
–
|
13,011,033
|
–
|
2,701,639
|
(32,799,372)
|
(12,442,755)
|
Net loss and
comprehensive loss
|
|
–
|
–
|
–
|
–
|
–
|
(10,140,590)
|
(10,140,590)
|
Share–based
compensation
|
|
–
|
–
|
–
|
–
|
2,024,780
|
–
|
2,024,780
|
Modification of
warrants
|
|
–
|
–
|
–
|
–
|
264,422
|
(264,422)
|
–
|
Issuance of Special
Warrants, net of cash
issuance costs
|
|
–
|
–
|
–
|
9,346,082
|
–
|
–
|
9,346,082
|
Special Broker
Warrants issued
|
|
–
|
–
|
–
|
(181,351)
|
181,351
|
–
|
–
|
Balance, December
31, 2019
|
|
4,643,945
|
–
|
13,011,033
|
9,164,731
|
5,172,192
|
(43,204,384)
|
(11,212,483)
|
Net loss and
comprehensive loss
|
|
–
|
–
|
–
|
–
|
–
|
(7,731,846)
|
(7,731,846)
|
Share–based
compensation
|
|
–
|
–
|
–
|
–
|
771,662
|
–
|
771,662
|
Conversion of
Convertible Debentures
|
|
6,039,000
|
–
|
–
|
–
|
589,594
|
–
|
6,628,594
|
Modification of Unit
warrants issued on the
conversion of Convertible Debentures
|
|
–
|
–
|
–
|
–
|
42,787
|
(42,787)
|
–
|
Conversion of
retractable preferred shares
|
|
7,420,265
|
–
|
–
|
–
|
–
|
–
|
7,420,265
|
Conversion of
preferred shares
|
|
13,011,033
|
–
|
(13,011,033)
|
–
|
–
|
–
|
–
|
Conversion of Special
warrants
|
|
6,812,648
|
–
|
–
|
(9,164,731)
|
2,352,083
|
–
|
–
|
Modification of
Warrants issued on the
conversion of Special Warrants
|
|
–
|
–
|
–
|
–
|
44,863
|
(44,863)
|
–
|
Settlement of
debt
|
|
–
|
528,168
|
–
|
–
|
85,446
|
–
|
613,614
|
Exercise of
warrants
|
|
1,229,353
|
–
|
–
|
–
|
(352,581)
|
–
|
876,772
|
Private placement
offering
|
|
5,696,835
|
–
|
–
|
–
|
1,052,134
|
–
|
6,748,969
|
Private placement
compensation options
|
|
(204,127)
|
–
|
–
|
–
|
204,127
|
–
|
–
|
Warrants issued to
Lender
|
|
–
|
–
|
–
|
–
|
84,314
|
–
|
84,314
|
Balance, December
31, 2020
|
|
44,648,952
|
528,168
|
–
|
–
|
10,046,621
|
(51,023,880)
|
4,199,861
|
NEWTOPIA INC.
Statements of Cash Flows
Years Ended December 31, 2020 and
2019
(Expressed in Canadian Dollars)
|
|
|
|
2020
|
2019
|
|
$
|
$
|
Cash flows used in
operating activities
|
|
|
Net loss and
comprehensive loss
|
(7,731,846)
|
(10,140,590)
|
Depreciation of
property and equipment
|
80,298
|
56,437
|
Depreciation of
right–of–use asset
|
184,767
|
184,766
|
Amortization of
deferred finance charges
|
13,000
|
–
|
Interest and accretion
expense
|
233,542
|
2,640,030
|
Interest on lease
obligations
|
143,325
|
158,642
|
Change in value of
convertible debenture derivative
liabilities
|
448,656
|
(54,081)
|
Change in value of
derivative liability
|
(131,162)
|
21,237
|
Share–based
compensation
|
771,662
|
2,024,780
|
Gain on extinguishment
of convertible debentures
|
–
|
(408,778)
|
Loss on settlement of
debt
|
167,716
|
–
|
|
(5,820,042)
|
(5,517,557)
|
Change in non–cash
working capital
|
|
|
Trade and other
receivables
|
180,735
|
(655,067)
|
Unbilled
revenue
|
(426,000)
|
–
|
Prepaid expenses and
deposits
|
(2,680)
|
(204,313)
|
Inventories
|
326,224
|
(205,547)
|
Trade and other
payables
|
956,587
|
1,050,840
|
|
(4,785,176)
|
(5,531,644)
|
Cash flows used in
investing activities
|
|
|
Purchase of
property, equipment and intangible asset
|
(92,783)
|
(163,389)
|
|
(92,783)
|
(163,389)
|
Cash flows from
financing activities:
|
|
|
Credit facility
financing costs
|
(160,775)
|
–
|
Repayment of
convertible debentures
|
–
|
(160,500)
|
Repayment of lease
obligation
|
(299,665)
|
(203,606)
|
Proceeds from private
placement offering, net of
share issuance costs
|
6,748,969
|
–
|
Proceeds from exercise
of warrants
|
876,772
|
–
|
Proceeds from issuance
of Special Warrants, net of
issuance costs and settlement of Debentures
|
–
|
7,016,922
|
|
7,165,301
|
6,652,816
|
Net change in cash
during the year
|
2,287,342
|
957,783
|
Cash, beginning of
year
|
2,386,341
|
1,428,558
|
Cash, end of
year
|
4,673,683
|
2,386,341
|
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SOURCE Newtopia Inc.