- Strong ongoing participant enrollment with Fortune 50 health
services client
- Expanded mental health solutions for health
insurers
- Achieved industry leading results in a weight loss study
conducted during the COVID-19 pandemic
TORONTO, Aug. 12, 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 second quarter 2021. All
amounts are expressed in Canadian dollars, unless otherwise
noted.
Second Quarter 2021 Financial Highlights (vs. Q2
2020):
- Revenue of $2.5 million, as
compared to $2.7 million.
- Gross profit margin1 of 42%, as compared to 52%,
reflecting an increased mix of Welcome Kits sold during the quarter
due to growing participant enrollments that is anticipated to lead
to subsequent recurring engagement revenues in Q3 and Q4.
"Newtopia's unique approach to habit change by providing the
best in whole person care is clearly taking hold, and as
anticipated, we exited Q2 2021 strongly positioned to return to
growth in the third and fourth quarters," said Jeff Ruby, Founder & CEO of Newtopia.
"Following a highly successful participant outreach campaign to an
innovative Fortune 50 health services client during the second
quarter, we saw participant enrollments strongly increase as we
exited the month of June. This upward trajectory has continued into
the third quarter. We expect enrollment levels to remain strong and
anticipate a corresponding positive impact on recurring engagement
revenues in Q3 and Q4."
"In addition to the boost in participant enrollment, our sales
season has been active across all three health insurer segments,
including self-insured employers, fully insured health plans and
government funded health insurance providers. We are looking to
expand our reach amongst new clients within the self-insured
employer market as well as amongst larger fully insured health plan
aggregators that will be able to help broaden our addressable
market. During the quarter, we began sales outreach to Medicare and
Medicare Advantage programs and also identified new outreach
opportunities amongst innovative fully insured health plans.
Additionally, as we have only deployed our habit change offering to
approximately 20% of the potential population amongst our current
client base, there remains a significant opportunity ahead of us to
improve our top line by increasing penetration within our existing
client base."
"While the challenges of COVID-19 are certainly not behind us,
the need for improved physical and mental health prevention
offerings has only increased over the past quarter. Our recently
reported industry-leading study results, which surpass those
achieved in our original randomized control trial, continue to
validate the importance of our habit change platform to deliver
meaningful costs savings and ROI to health insurers and improved
wellbeing to their insured populations. We look forward to
continuing to build upon our past successes to increase cost
savings for our customers as we work toward preventing, reversing
and slowing the progression of chronic disease," 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 costs, compensation
expense for Inspirators and care specialists and genetic testing
costs. Gross margin percentage is calculated by dividing gross
profit by total revenue for the defined period. 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
- In April, the Company debuted its habit change platform in
Canada through a partnership with
Eastern Health, the largest, integrated health authority in
Newfoundland and Labrador, and Medtronic, a formal partner
under Eastern Health's Innovation Strategy. Together, Newtopia and
its two partners are implementing an integrated type 2 diabetes
prevention pilot program. With a population of more than 500,000
people and a rate of type 2 diabetes exceeding 30% (over double the
national average) there is a strong opportunity to grow this
offering from a pilot study into the broader Eastern Health
population. The Eastern Health partnership represents one of the
first provincial condition management and prevention programs
funded by a provincial health insurer and could act as an impetus
for other provinces and territories to follow in the future.
- In June, the Company announced the results of a weight loss
study conducted on client outcomes during the COVID-19 pandemic. A
total of 1,436 U.S. participants met the criteria for this study.
Each participant was provided access to a tech-enabled virtual
habit change experience designed around that individual's health
risks, genetics, medical history, motivation, social determinants
of health and personal preferences. While over 40% of U.S. adults
reported gaining weight during the pandemic, after 12 months in the
Newtopia program:
-
- 77% of participants lost weight;
- 44% of participants lost more than 4.3% of their total body
weight; and
- 22% of participants dropped a BMI risk category.
- Also in June, the Company provided the results of a behavioral
economics trial conducted with a Fortune 50 financial services
company on client outcomes during COVID-19. Results exceeded those
achieved in the prior randomized control trial, with 71% of
eligible population enrolled and 84% of the participants remaining
engaged at 12 months.
Operational Highlights Subsequent to Quarter End
- The Company announced expanded mental health solutions to
health insurers. Testing for the BDNF gene, which gauges resilience
to stress, and usage of the PROMIS® questionnaire, which
measures for mental and emotional health, are now part of
Newtopia's unique habit change experience and will provide
additional opportunities for cost savings and improved ROI for
health insurers.
- The Company appointed Roger
Poirier, CFA, to Newtopia's Board of Directors. Mr. Poirier
has more than three decades of capital markets, finance and M&A
experience and will serve on Newtopia's Audit Committee. Newtopia's
expanded Board of Directors now includes five directors.
Second Quarter 2021 Financial Results
Revenue for the three months ended June
30, 2021 was $2.5 million, as
compared to $2.7 million in the
prior-year period. Enrollment numbers improved significantly over
the course of the second quarter as the Company saw strong ongoing
participant enrollment with a Fortune 50 health services client. As
such, enrollment fee revenues totaled $0.5
million for the second quarter, an increase of 300%
year-over-year, which will lead to subsequent recurring engagement
fees in Q3 and Q4.
Gross profit for the second quarter 2021 totaled $1.1 million, as compared to $1.4 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. As a percentage of revenue,
gross profit totaled 42%, down from 52% in the second quarter of
2020. The year-over-year decline in gross profit percentage
reflects the higher mix of Welcome Kit revenues during the quarter
which carry a lower gross margin due to the corresponding Welcome
Kit costs but are indicative of the increased enrollment figures in
the quarter. The Company expects these strong participant starts
will lead to higher gross profits in Q3 and Q4 as the mix of
recurring engagement revenue increases as compared to Welcome
Kit/enrollment fee revenues.
Adjusted operating expenses2 for the three months
ended June 30, 2021 totaled
$3.0 million, compared to
$2.5 million in the prior-year
period, as the Company continued to add technology, sales and
marketing and administrative resources to support long-term growth
and margin improvement.
For the quarter, the Company had an adjusted operating
loss3 of $1.9 million,
compared to an adjusted operating loss of $1.1 million in the prior-year period. This
increase in adjusted operating loss is due to the lower level of
revenue in this year's second quarter along with the corresponding
lower margin and higher adjusted operating expenses to support
long-term growth.
The Company ended the second quarter 2021 with $0.64 million in cash and an outstanding loan
balance of $1.1 million against its
$5.0 million credit facility.
As of June 30, 2021, the Company
was in breach of certain bank facility covenants with a Schedule I
Canadian Bank. Newtopia is actively working on finalizing an
enhanced facility with this bank and potential additional lenders
which will offer a non-dilutive solution to augment growth capital
for the Company. Newtopia will update if and when this updated
facility has been finalized.
2021 Outlook
During the first half of 2021, the Company underwent a delayed
rollout of products to some of its clients due to the impact of
COVID-19. Nevertheless, this pattern reversed itself and rollouts
began to increase toward the end of June
2021 due to an increased and expanded marketing effort along
with a return to normal operating procedures and the easing of
pandemic-related restrictions in the
United States. This positive client onboarding trajectory is
anticipated to continue in the third and fourth quarters, resulting
in a return to growth for Newtopia in the second half of the year.
The Company's multi-year contracts with Fortune 500 self-insured
employers represent significant expansion opportunities, while
Newtopia's overall underlying business is healthy with record
levels of engagement.
The Company continues to expect approximately $1.8 million of capital expenditures in 2021,
with roughly $1.0 million incurred to
date. This spend will be directed towards enhancing the efficiency
of Newtopia's operations by leveraging new and improved engagement
technologies to elevate the overall user experience, improve
service ratio efficiency and improve gross margins over time.
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 increase in capital expenditures in 2021,
Newtopia continues to target exiting the year cash flow neutral
from operations.
Grants of Stock Options
Newtopia further announced today that its Board of Directors has
approved the grant of 240,000 stock options to certain tenured
employees and newly hired employees. The options issued to newly
hired employees will expire five years from the date such employees
complete their probationary period, and the exercise price will be
based on the closing price of Newtopia's common shares on the
trading day prior to the day these employees complete their
probationary period. The options granted to tenured employees will
be at an exercise price of CAD$0.33
per common share and will expire five years from the grant
date.
____________________________
|
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.
|
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 Company's ability to
negotiate an enhanced credit facility with its Schedule I bank
lender or any other lender(s) on favorable terms or at all, 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.
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 business 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenue
|
2,529,021
|
|
2,687,055
|
|
5,148,192
|
|
6,550,041
|
Cost of
sales
|
(1,457,764)
|
|
(1,276,626)
|
|
(2,758,631)
|
|
(3,485,183)
|
Gross
profit
|
1,071,257
|
|
1,410,429
|
|
2,389,561
|
|
3,064,858
|
Gross
margin
|
42%
|
|
52%
|
|
46%
|
|
47%
|
Reconciliation of
Total Operating Expenses to Adjusted Operating
Expenses [2]
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
|
|
$
|
|
$
|
|
$
|
Total
expenses
|
3,528,542
|
|
2,950,467
|
|
7,123,334
|
|
6,112,977
|
Add
(Subtract)
|
|
|
|
|
|
|
|
Share-based
compensation
|
(337,123)
|
|
(121,659)
|
|
(886,943)
|
|
(256,091)
|
Depreciation of
property and equipment
|
(16,803)
|
|
(21,339)
|
|
(34,775)
|
|
(42,893)
|
Depreciation of
right-of-use asset
|
(46,192)
|
|
(46,191)
|
|
(92,387)
|
|
(92,386)
|
Interest and accretion
expense
|
-
|
|
-
|
|
-
|
|
(233,542)
|
Interest on lease
obligations
|
(29,046)
|
|
(36,849)
|
|
(60,314)
|
|
(74,698)
|
Finance
charges
|
(15,812)
|
|
-
|
|
(20,948)
|
|
-
|
Amortization of
deferred finance charges
|
(46,120)
|
|
-
|
|
(85,036)
|
|
-
|
Foreign exchange
gain
|
(39,142)
|
|
(106,620)
|
|
(66,938)
|
|
96,491
|
Change in value of
convertible debenture derivative liabilities
|
-
|
|
(177,663)
|
|
-
|
|
(448,656)
|
Change in value of
derivative liability
|
2,989
|
|
61,504
|
|
47,508
|
|
47,876
|
Loss on settlement of
related party payable
|
-
|
|
-
|
|
-
|
|
(167,716)
|
Adjusted operating
expenses
|
3,001,293
|
|
2,501,650
|
|
5,923,501
|
|
4,941,362
|
Adjusted
Operating Loss [3]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
|
|
$
|
|
$
|
|
$
|
Gross
profit
|
1,071,257
|
|
1,410,429
|
|
2,389,561
|
|
3,064,858
|
Adjusted operating
expenses
|
(3,001,293)
|
|
(2,501,650)
|
|
(5,923,501)
|
|
(4,941,362)
|
|
(1,930,036)
|
|
(1,091,221)
|
|
(3,533,940)
|
|
(1,876,504)
|
NEWTOPIA INC.
Condensed Interim Statements of
Financial Position (Unaudited)
As at June 30, 2021 and December 31, 2020
(Expressed in Canadian Dollars)
|
|
|
June 30,
2021
|
December 31,
2020
|
|
|
|
$
|
$
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
|
637,858
|
4,673,683
|
Trade and other
receivables
|
|
|
1,325,899
|
1,067,123
|
Unbilled
revenue
|
|
|
77,000
|
426,000
|
Prepaid expenses and
deposits
|
|
|
366,338
|
465,285
|
Inventories
|
|
|
248,519
|
278,696
|
Deferred
costs
|
|
|
158,043
|
232,089
|
|
|
|
2,813,657
|
7,142,876
|
|
|
|
|
|
Property and
equipment
|
|
|
95,138
|
129,913
|
Right–of–use
asset
|
|
|
461,918
|
554,305
|
Intangible
asset
|
|
|
981,100
|
68,948
|
|
|
|
4,351,813
|
7,896,042
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade and other
payables
|
|
|
2,003,818
|
2,765,583
|
Credit
facility
|
|
|
1,071,275
|
–
|
Lease
obligations
|
|
|
235,937
|
215,532
|
Derivative
liability
|
|
|
–
|
47,508
|
|
|
|
3,311,030
|
3,028,623
|
Non–current lease
obligations
|
|
|
527,877
|
667,558
|
|
|
|
3,838,907
|
3,696,181
|
Equity/Deficit
|
|
|
|
|
Common
shares
|
|
|
45,177,120
|
44,648,952
|
Common shares to be
issued
|
|
|
–
|
528,168
|
Contributed
surplus
|
|
|
11,093,439
|
10,046,621
|
Deficit
|
|
|
(55,757,653)
|
(51,023,880)
|
|
|
|
512,906
|
4,199,861
|
|
|
|
4,351,813
|
7,896,042
|
NEWTOPIA INC.
Condensed Interim Statements of Loss and
Comprehensive Loss (Unaudited)
Three and Six Months Ended June 30,
2021 and 2020
(Expressed in Canadian Dollars)
|
|
|
|
Three Months
Ended
June 30,
|
Six Months
Ended
June 30,
|
|
2021
|
2020
|
2021
|
2020
|
|
$
|
$
|
$
|
$
|
|
|
|
|
|
Revenue
|
2,529,021
|
2,687,055
|
5,148,192
|
6,550,041
|
Cost of
revenue
|
1,457,764
|
1,276,626
|
2,758,631
|
3,485,183
|
Gross
profit
|
1,071,257
|
1,410,429
|
2,389,561
|
3,064,858
|
Operating
expenses
|
|
|
|
|
Technology and
development
|
982,214
|
793,322
|
1,712,221
|
1,569,988
|
Sales and
marketing
|
923,051
|
815,196
|
1,899,533
|
1,543,678
|
General and
administrative
|
1,096,028
|
893,132
|
2,311,747
|
1,827,696
|
Share–based
compensation
|
337,123
|
121,659
|
886,943
|
256,091
|
|
3,338,416
|
2,623,309
|
6,810,444
|
5,197,453
|
Other expenses
(income)
|
|
|
|
|
Depreciation of
property and equipment
|
16,803
|
21,339
|
34,775
|
42,893
|
Depreciation of
right–of–use asset
|
46,192
|
46,191
|
92,387
|
92,386
|
Interest and accretion
expense
|
–
|
–
|
–
|
233,542
|
Interest on lease
obligations
|
29,046
|
36,849
|
60,314
|
74,698
|
Finance
charges
|
15,812
|
–
|
20,948
|
–
|
Amortization of
deferred finance charges
|
46,120
|
–
|
85,036
|
–
|
Foreign exchange
(gain)/loss
|
39,142
|
106,620
|
66,938
|
(96,491)
|
Change in value of
convertible debenture derivative liabilities
|
–
|
177,663
|
–
|
448,656
|
Change in value of
derivative liability
|
(2,989)
|
(61,504)
|
(47,508)
|
(47,876)
|
Loss on settlement of
related party payable
|
–
|
–
|
–
|
167,716
|
|
190,126
|
327,158
|
312,890
|
915,524
|
Net loss and
comprehensive loss
|
(2,457,285)
|
(1,540,038)
|
(4,733,773)
|
(3,048,119)
|
NEWTOPIA INC.
Condensed Interim Statements of Changes
in Equity (Deficit) (Unaudited)
Six Months Ended June 30, 2021 and
2020
(Expressed in Canadian Dollars)
|
|
|
|
|
|
|
|
|
Common Shares
|
Shares
To Be
Issued
|
Preferred Shares
|
Special Warrants
|
Contributed Surplus
|
Deficit
|
Total
|
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
Balance, December
31, 2020
|
44,648,952
|
528,168
|
–
|
–
|
10,046,621
|
(51,023,880)
|
4,199,861
|
Net loss and
comprehensive loss
|
–
|
–
|
–
|
–
|
–
|
(4,733,773)
|
(4,733,773)
|
Share–based
compensation
|
–
|
–
|
–
|
–
|
886,943
|
–
|
886,943
|
Issuance of
shares
|
528,168
|
(528,168)
|
–
|
–
|
–
|
–
|
–
|
Settlement of related
party payable
|
–
|
–
|
–
|
–
|
159,875
|
–
|
159,875
|
Balance, June 30,
2021
|
45,177,120
|
–
|
–
|
–
|
11,093,439
|
(55,757,653)
|
512,906
|
|
|
|
|
|
|
|
|
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
|
–
|
–
|
–
|
–
|
–
|
(3,048,119)
|
(3,048,119)
|
Share–based
compensation
|
–
|
–
|
–
|
–
|
256,091
|
–
|
256,091
|
Conversion of
Convertible Debentures
|
6,039,000
|
–
|
–
|
–
|
589,594
|
–
|
6,628,594
|
Modification of
warrants
|
–
|
–
|
–
|
–
|
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
|
–
|
–
|
Settlement of
debt
|
–
|
528,168
|
–
|
–
|
39,548
|
–
|
567,716
|
Exercise of
warrants
|
–
|
99,999
|
–
|
–
|
–
|
–
|
99,999
|
Balance, June 30,
2020
|
37,926,891
|
628,167
|
–
|
–
|
8,452,295
|
(46,295,290)
|
712,063
|
NEWTOPIA INC.
Condensed Interim Statements of Cash
Flows (Unaudited)
Six Months Ended June 30, 2021 and
2020
(Expressed in Canadian Dollars)
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2021
|
2020
|
|
|
$
|
$
|
Cash flows used in
operating activities:
|
|
|
|
Net loss and
comprehensive loss
|
|
(4,733,773)
|
(3,048,119)
|
Items not involving
cash:
|
|
|
|
Depreciation of
property and equipment
|
|
34,775
|
42,893
|
Depreciation of
right–of–use asset
|
|
92,387
|
92,386
|
Amortization of
deferred finance charges
|
|
85,036
|
–
|
Share–based
compensation
|
|
886,943
|
256,091
|
Interest and accretion
expense
|
|
–
|
233,542
|
Interest on lease
obligations
|
|
60,314
|
74,698
|
Loss on settlement of
related party
payable
|
|
–
|
167,716
|
Change in value of
convertible debenture derivative liabilities
|
|
–
|
448,656
|
Change in value of
derivative
liability
|
|
(47,508)
|
(47,876)
|
|
|
(3,621,826)
|
(1,780,013)
|
Net change in non–cash
working capital
|
|
|
|
Trade and other
receivables
|
|
(258,776)
|
246,175
|
Unbilled
revenue
|
|
349,000
|
–
|
Inventories
|
|
30,177
|
321,840
|
Prepaid expenses and
deposits
|
|
98,947
|
196,817
|
Trade and other
payables
|
|
(601,890)
|
(148,341)
|
|
|
(4,004,368)
|
(1,163,522)
|
Cash flows used in
investing activities
|
|
|
|
Purchase of property
and equipment
|
|
–
|
(11,843)
|
Intangible asset
development costs
|
|
(912,152)
|
–
|
|
|
(912,152)
|
(11,843)
|
Cash flows from
(used in) financing activities:
|
|
|
|
Repayment of lease
obligations
|
|
(179,590)
|
(128,428)
|
Credit facility
withdrawals
|
|
1,071,275
|
–
|
Credit facility
financing
costs
|
|
(10,990)
|
–
|
Proceeds from exercise
of non–broker
warrants
|
|
–
|
99,999
|
|
|
880,695
|
(28,429)
|
Decrease in
cash
|
|
(4,035,825)
|
(1,203,794)
|
Cash, beginning of
period
|
|
4,673,683
|
2,386,341
|
Cash, end of
period
|
|
637,858
|
1,182,547
|
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SOURCE Newtopia Inc.