- Return to growth, with revenues up 22% year-over-year and
15% sequentially
- Strong ongoing participant enrollment with a Fortune 50
client
- Record quarterly engagements of 37,000 participants
- New business development strategy positions the Company for
year-over-year revenue growth in 2022 and further growth in
2023
- Recently received DTC approval from the US OTC with shares
now also trading on the OTCQB® Venture Market in addition to the
TSXV
- Q3 2021 conference call scheduled for November 10th at 5 PM ET
TORONTO, Nov. 10, 2021 /CNW/ - Newtopia Inc.
("Newtopia" or the "Company") (TSXV: NEWU) (OTCQB:
NEWUF), a tech-enabled habit change provider focused on disease
prevention, today reported financial results for the third quarter
2021. All amounts are expressed in Canadian dollars, unless
otherwise noted.
Third Quarter 2021 Financial Highlights (vs. Q3
2020):
- Revenue of $2.9 million, as
compared to $2.4 million.
- Gross profit margin1 of 50%, relatively consistent
with the prior-year period.
"Newtopia experienced strong growth in the third quarter as a
result of the successful rollout of a Fortune 50 health services
client and the evolution towards more normalized pandemic-related
operating procedures for our US clients. The return to top-line
growth was anticipated following the significant enrollments during
the second quarter that carried over into the third quarter. We
continue to anticipate that the second-half of this year will see
improvement over the first two quarters," said Jeff Ruby, Founder and CEO of Newtopia. "Gross
margins also improved sequentially in the third quarter, totaling
approximately 50% of revenue as recurring subscription revenue
increased as a percentage of the total mix. Our successful
participant rollouts over the summer brought our total third
quarter engagements to a company record of 37,000."
Mr. Ruby continued, "The success of our business is largely
driven by delivering proven physical and mental health risk
reduction - whole person care outcomes - to innovative self-insured
employers. We validated our success in a randomized controlled
trial prior to commercializing. This disciplined evidence-based
approach to growth has served us and our employer clients well. In
response to the pandemic and overall macro-conditions impacting
employers, we have expanded our business development efforts to go
after a broader distribution of clients, large public and private
health plans and risk bearing providers, which will vastly expand
our addressable market. Leveraging our world class advisors, we've
wired quickly into many of these new potential clients and our
pipeline of business is strong. 2021 is setting the stage for
growth in 2022, and we look forward to again proving out our
financial and clinical results but this time to a broader, more
diversified client base of health insurers."
Third Quarter 2021 Financial Results
Revenue for the three months ended September 30, 2021 was $2.9 million, as compared to $2.4 million in the prior-year period. Enrollment
numbers improved over the course of the third quarter as the
Company saw ongoing participant enrollment with a Fortune 50 health
services client. Enrollment fee revenue totaled $0.5 million for the third quarter, an increase
of over 300% year-over-year.
Gross profit for the third quarter 2021 totaled $1.4 million, as compared to $1.2 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 50%, relatively flat with the third quarter of
2020, but up sequentially from the second quarter gross margin of
42%.
Adjusted operating expenses2 for the three months
ended September 30, 2021 totaled
$2.4 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 $1.0 million,
compared to an adjusted operating loss of $1.4 million in the prior-year period.
The Company ended the third quarter 2021 with $0.5 million in cash and an outstanding loan
balance of $0.7 million against its
$7.5 million credit facility.
On September 20, 2021 the Company
entered into an agreement with a leading Canadian Schedule I Bank
to increase its revolving credit facility from $5.0 million to $7.5
million. This new credit facility, along with the previously
announced $2.5 million private
placement offering, doubles the amount of growth capital available
to the Company for working capital and general corporate purposes.
____________________________
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.
|
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.
|
2021 Outlook
In line with the return to growth in the third quarter, Newtopia
continues to expect that the second half of the year on a revenue
basis will be stronger than that of the first half of the year.
That said, Q3 2021 was particularly strong due to the significant
increase in Welcome Kits sold mid-year, unlike prior years when
onboarding typically commenced earlier in the year. As a result,
the Company anticipates more moderate revenue performance in Q4
than in Q3, with full year 2021 revenue anticipated to be flat with
the prior-year period. COVID-19's impact, though dissipating, has
resulted in the Company's internal expectations for year-over-year
revenue growth to be pushed out approximately one year.
Importantly, however, the momentum in the second-half of 2021,
along with an expanded business development effort, have set the
Company up for a strong revenue run rate going into 2022.
In terms of capital expenditures, the Company now expects
approximately $2.2 million in capex
for the year, with roughly $1.7
million incurred to date. This compares to original
estimates of $1.8 million for the
year. Of note, these expenditures will be capitalized over their
lifetime. The Company has added further planned enhancements to its
customer web and mobile app platforms and anticipates decreasing
technology hiring expenses by leveraging more expert
consultants than in-house professionals to build out key
elements of its upgraded technology platform. An annual licensing
cost associated with the existing CRM platform of approximately
$450,000 per year will also be
eliminated once migration to the new technology platform is
completed.
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.
In light of the push in revenue growth towards the second-half of
the year and the Company's investment in an important technology
upgrade, Newtopia no longer anticipates exiting the year cash flow
neutral from operations. That said, with a strong business
development pipeline, the Company is instead striving to hit cash
flow positive from operations in 2022.
Grants of Stock Options
Newtopia further announced today that its Board of Directors has
approved the grant of 358,571 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$0.45
per common share and will expire five years from the grant
date.
Conference Call
The Company will host a conference call today at 5:00 p.m. Eastern Time to discuss the third
quarter 2021 results in further detail. To access the conference
call, please dial (877) 407-3982 (U.S.) or (201) 493-6780
(International) ten minutes prior to the start time and reference
Conference ID number 13723536. The call will also be available via
live webcast on the investor relations portion of the Company's
website located at investor.newtopia.com.
A replay of the conference call will be available through
Wednesday, November 24, 2021 which
can be accessed by dialing (844) 512-2921 (U.S.) or (412) 317-6671
(International) and entering the passcode 13723536. The webcast
will also be archived on the Company's website.
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) (OTCQB: NEWUF). 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
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenue
|
2,904,863
|
|
2,389,374
|
|
8,053,055
|
|
8,939,415
|
Cost of
sales
|
(1,460,870)
|
|
(1,213,393)
|
|
(4,219,501)
|
|
(4,698,576)
|
Gross
profit
|
1,443,993
|
|
1,175,981
|
|
3,833,554
|
|
4,240,839
|
Gross
margin
|
50%
|
|
49%
|
|
48%
|
|
47%
|
Reconciliation of
Total Operating Expenses to Adjusted Operating
Expenses [2]
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
|
|
$
|
|
$
|
|
$
|
Total
expenses
|
2,548,945
|
|
2,931,316
|
|
9,672,279
|
|
9,044,293
|
Add
(Subtract)
|
|
|
|
|
|
|
|
Share-based
compensation
|
(45,122)
|
|
(120,528)
|
|
(932,065)
|
|
(376,619)
|
Depreciation of
property and equipment
|
(16,163)
|
|
(19,012)
|
|
(50,938)
|
|
(61,905)
|
Depreciation of
right-of-use asset
|
(46,192)
|
|
(46,192)
|
|
(138,579)
|
|
(138,578)
|
Interest and accretion
expense
|
-
|
|
-
|
|
-
|
|
(233,542)
|
Interest on lease
obligations
|
(27,875)
|
|
(35,269)
|
|
(88,189)
|
|
(109,967)
|
Interest on promissory
note
|
-
|
|
(8,219)
|
|
-
|
|
(8,219)
|
Finance
charges
|
(23,802)
|
|
(10,995)
|
|
(44,750)
|
|
(10,995)
|
Amortization of
deferred finance
charges
|
(27,890)
|
|
-
|
|
(112,926)
|
|
-
|
Foreign exchange
gain/(loss)
|
34,524
|
|
(39,778)
|
|
(32,414)
|
|
56,713
|
Change in value of
convertible
debenture derivative
liabilities
|
-
|
|
-
|
|
-
|
|
(448,656)
|
Change in value of
derivative liability
|
-
|
|
(111,680)
|
|
47,508
|
|
(63,804)
|
Loss on settlement of
related party
payable
|
-
|
|
-
|
|
-
|
|
(167,716)
|
Adjusted operating
expenses
|
2,396,425
|
|
2,539,643
|
|
8,319,926
|
|
7,481,005
|
Adjusted
Operating Loss [3]
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
|
|
$
|
|
$
|
|
$
|
Gross
profit
|
1,443,993
|
|
1,175,981
|
|
3,833,554
|
|
4,240,839
|
Adjusted
operating
expenses
|
(2,396,425)
|
|
(2,539,643)
|
|
(8,319,926)
|
|
(7,481,005)
|
|
(952,432)
|
|
(1,363,662)
|
|
(4,486,372)
|
|
(3,240,166)
|
NEWTOPIA INC.
Condensed Interim Statements of
Financial Position (Unaudited)
As at September 30, 2021 and December
31, 2020
(Expressed in Canadian Dollars)
|
|
|
September 30,
|
|
December
31,
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
$
|
|
$
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
|
|
467,932
|
|
4,673,683
|
Trade and other
receivables
|
|
|
1,792,836
|
|
1,067,123
|
Unbilled
revenue
|
|
|
134,000
|
|
426,000
|
Prepaid expenses and
deposits
|
|
|
349,133
|
|
465,285
|
Inventories
|
|
|
155,593
|
|
278,696
|
Deferred
costs
|
|
|
184,203
|
|
232,089
|
|
|
|
3,083,697
|
|
7,142,876
|
|
|
|
|
|
|
Property and
equipment
|
|
|
82,000
|
|
129,913
|
Right–of–use
asset
|
|
|
415,726
|
|
554,305
|
Intangible
asset
|
|
|
1,726,296
|
|
68,948
|
|
|
|
5,307,719
|
|
7,896,042
|
Liabilities
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Trade and
other payables
|
|
|
1,786,719
|
|
2,765,583
|
Credit
facility
|
|
|
666,800
|
|
–
|
Lease
obligations
|
|
|
285,436
|
|
215,532
|
Deferred
revenue
|
|
|
66,682
|
|
–
|
Contract
liability
|
|
|
160,000
|
|
–
|
Derivative
liability
|
|
|
–
|
|
47,508
|
|
|
|
2,965,637
|
|
3,028,623
|
Non–current
lease obligations
|
|
|
446,391
|
|
667,558
|
Debentures
|
|
|
2,135,965
|
|
–
|
|
|
|
5,547,993
|
|
3,696,181
|
Equity/Deficit
|
|
|
|
|
|
Common
shares
|
|
|
45,177,120
|
|
44,648,952
|
Common shares to be
issued
|
|
|
–
|
|
528,168
|
Contributed
surplus
|
|
|
11,460,863
|
|
10,046,621
|
Deficit
|
|
|
(56,878,257)
|
|
(51,023,880)
|
|
|
|
(240,274)
|
|
4,199,861
|
|
|
|
5,307,719
|
|
7,896,042
|
NEWTOPIA INC.
Condensed Interim Statements of Loss and
Comprehensive Loss (Unaudited)
Three and Nine Months Ended September 30, 2021 and
2020
(Expressed in Canadian Dollars)
|
|
|
Three Months
Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
2,904,863
|
|
2,389,374
|
|
8,053,055
|
|
8,939,415
|
Cost of
revenue
|
|
|
1,460,870
|
|
1,213,393
|
|
4,219,501
|
|
4,698,576
|
Gross
profit
|
|
|
1,443,993
|
|
1,175,981
|
|
3,833,554
|
|
4,240,839
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Technology and
development
|
|
|
715,966
|
|
812,228
|
|
2,428,187
|
|
2,382,216
|
Sales and
marketing
|
|
|
644,184
|
|
781,307
|
|
2,543,717
|
|
2,324,985
|
General and
administrative
|
|
|
1,036,275
|
|
946,108
|
|
3,348,022
|
|
2,773,804
|
Share–based
compensation
|
|
|
45,122
|
|
120,528
|
|
932,065
|
|
376,619
|
|
|
|
2,441,547
|
|
2,660,171
|
|
9,251,991
|
|
7,857,624
|
|
|
|
|
|
|
|
|
Other expenses
(income)
|
|
|
|
|
|
|
|
Depreciation of
property and
equipment
|
|
|
16,163
|
19,012
|
|
50,938
|
61,905
|
Depreciation of
right–of–use asset
|
|
|
46,192
|
46,192
|
|
138,579
|
138,578
|
Interest on lease
obligations
|
|
|
27,875
|
35,269
|
|
88,189
|
109,967
|
Interest on
promissory note
|
|
|
–
|
8,219
|
|
–
|
8,219
|
Finance
charges
|
|
|
39,454
|
10,995
|
|
60,402
|
244,537
|
Amortization of
deferred finance
charges
|
|
|
27,890
|
–
|
|
112,926
|
–
|
Foreign exchange
(gain)/loss
|
|
|
(34,524)
|
39,778
|
|
32,414
|
(56,713)
|
Change in value of
convertible
debenture derivative
liabilities
|
|
|
–
|
–
|
|
–
|
448,656
|
Change in value of
derivative
liability
|
|
|
–
|
111,680
|
|
(47,508)
|
63,804
|
Loss on settlement of
related party
payable
|
|
|
–
|
–
|
|
–
|
167,716
|
|
|
|
123,050
|
271,145
|
|
435,940
|
1,186,669
|
Net loss and
comprehensive loss
|
|
|
(1,120,604)
|
(1,755,335)
|
|
(5,854,377)
|
(4,803,454)
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
(0.01)
|
(0.02)
|
|
(0.06)
|
(0.09)
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
100,492,786
|
91,010,143
|
|
100,302,490
|
56,464,872
|
|
|
|
|
|
|
|
|
NEWTOPIA INC.
Condensed Interim Statements of Changes
in Equity (Deficit) (Unaudited)
Nine Months Ended September 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
|
|
–
|
–
|
–
|
–
|
–
|
(5,854,377)
|
(5,854,377)
|
Share–based
compensation
|
|
–
|
–
|
–
|
–
|
932,065
|
–
|
932,065
|
Warrants issued on
issuance of
Debentures
|
|
–
|
–
|
–
|
–
|
216,588
|
–
|
216,588
|
Issuance of
shares
|
|
528,168
|
(528,168)
|
–
|
–
|
–
|
–
|
–
|
Settlement of related
party payable
|
|
–
|
–
|
–
|
–
|
265,589
|
–
|
265,589
|
Balance,
September 30, 2021
|
|
45,177,120
|
–
|
–
|
–
|
11,460,863
|
(56,878,257)
|
(240,274)
|
|
|
|
|
|
|
|
|
|
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
|
|
–
|
–
|
–
|
–
|
–
|
(4,803,454)
|
(4,803,454)
|
Share–based
compensation
|
|
–
|
–
|
–
|
–
|
376,619
|
–
|
376,619
|
Conversion of
Convertible
Debenture
|
|
6,039,000
|
–
|
–
|
–
|
589,594
|
–
|
6,628,594
|
Modification of
warrants
|
|
–
|
–
|
–
|
–
|
87,650
|
(87,650)
|
–
|
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 related
party payable
|
|
–
|
528,168
|
–
|
–
|
39,548
|
–
|
567,716
|
Exercise of
warrants
|
|
877,775
|
–
|
–
|
–
|
(248,275)
|
–
|
629,500
|
Balance,
September 30, 2020
|
|
38,804,666
|
528,168
|
–
|
–
|
8,369,411
|
(48,095,488)
|
(393,243)
|
NEWTOPIA INC.
Condensed Interim Statements of Cash
Flows (Unaudited)
Nine Months Ended September 30, 2021 and 2020
(Expressed in Canadian Dollars)
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2021
|
2020
|
|
|
|
|
|
|
|
|
$
|
$
|
Cash flows used in
operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss and
comprehensive loss
|
|
|
(5,854,377)
|
(4,803,454)
|
Items not involving
cash:
|
|
|
|
|
Depreciation of
property and equipment
|
|
|
50,938
|
61,905
|
Depreciation of
right–of–use asset
|
|
|
138,579
|
138,578
|
Amortization of
deferred finance charges
|
|
|
112,926
|
–
|
Share–based
compensation
|
|
|
932,065
|
376,619
|
Interest and accretion
expense
|
|
|
15,652
|
233,542
|
Interest on lease
obligations
|
|
|
88,189
|
109,967
|
Interest on promissory
note
|
|
|
–
|
8,219
|
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)
|
63,804
|
|
|
|
(4,563,536)
|
(3,194,448)
|
Net change in non–cash
working capital
|
|
|
|
|
Trade and other
receivables
|
|
|
(725,713)
|
408,998
|
Inventories
|
|
|
123,103
|
381,258
|
Unbilled
revenue
|
|
|
292,000
|
–
|
Prepaid expenses and
deposits
|
|
|
116,152
|
(47,144)
|
Trade and other
payables
|
|
|
(713,275)
|
(173,889)
|
Deferred
revenue
|
|
|
66,682
|
–
|
Contract
liability
|
|
|
160,000
|
–
|
|
|
|
(5,244,587)
|
(2,625,225)
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(3,025)
|
(15,725)
|
Intangible asset
development costs
|
|
|
(1,657,348)
|
–
|
|
|
|
(1,660,373)
|
(15,725)
|
Cash flows from
(used in) financing activities:
|
|
|
|
|
Repayment of lease
obligations
|
|
|
(239,452)
|
(214,046)
|
Credit facility
withdrawals
|
|
|
3,829,254
|
–
|
Credit facility
repayments
|
|
|
(3,162,454)
|
–
|
Financing
costs
|
|
|
(65,040)
|
–
|
Proceeds from
promissory note
|
|
|
–
|
500,000
|
Proceeds from issuance
of debentures, net of issuance
costs
|
|
|
2,336,901
|
–
|
Proceeds from exercise
of non–broker warrants
|
|
|
–
|
629,500
|
|
|
|
2,699,209
|
915,454
|
Decrease in
cash
|
|
|
(4,205,751)
|
(1,725,496)
|
Cash, beginning of
period
|
|
|
4,673,683
|
2,386,341
|
Cash, end of
period
|
|
|
467,932
|
660,845
|
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SOURCE Newtopia Inc.