- Record breaking 135,500 engagements in 2021, up 14%
year-over-year
- Strong progress made in new health plan business development
strategy
- Launching expanded partnership focused on employee mental
health with one of the world's largest apparel brands this
June
- Anticipates Q1 2022 and full year 2022 revenue growth
year-over-year
- Q4 and FY 2021 conference call scheduled for April 5, 2022 at 5 PM
ET
TORONTO,
April 5, 2022 /CNW/ -
Newtopia Inc. ("Newtopia" or the "Company") (TSXV:
NEWU) (OTCQB: NEWUF), a tech-enabled habit change provider focused
on preventing, slowing and reversing chronic disease, today
announced its fourth quarter and fiscal 2021 financial results,
operational highlights and filing of its annual financial
statements. These results pertain to the three months and year
ended December 31, 2021 and are
expressed in Canadian dollars, unless otherwise noted.
Fourth Quarter 2021 Financial Highlights (vs. Q4
2020):
- Revenue of $2.4 million, as
compared to $2.5 million.
- Gross profit margin1 of 52%, as compared to
51%.
Full Year 2021 Financial Highlights (vs. 2020):
- Revenue of $10.5 million, as
compared to $11.4 million.
- Gross profit margin1 of 49%, up from the prior year
of 48%.
"With the holiday season and the distraction of open enrollment
for new benefits in the following year taking place for U.S.
employers, the fourth quarter of the year is traditionally a slower
period for new enrollments and engagements for Newtopia," said
Jeff Ruby, Founder and CEO of
Newtopia. "That headwind, along with the surge in the Omicron
variant towards year end, impacted our fourth quarter revenue.
While our 2021 results did not live up to our historical
performance nor our long-term goals, we are experiencing strong
momentum to date in 2022 and believe that our business has
officially turned a corner. Helping to fuel this go-forward growth
is our record-breaking participant engagement which reached 135,500
participants for full year 2021, up 14% over the prior year. In
fact, in 2021, we delivered our best engagement and retention rates
for existing participants in our Company's history driven by
reductions in churn and by higher usage rates on our platform. As
employers and health plans reflect on the challenge of reducing
massive chronic disease risk and retaining their members,
engagement and proven outcomes are key decision drivers where
Newtopia shines."
Mr. Ruby continued, "With a strong participant base and active
pipeline of business, we are confident that Newtopia is firmly on a
year-over-year revenue growth trajectory for both the first quarter
as well as for the full year 2022. We are seeing increased optimism
from clients earlier in the sales cycle compared to the past two
years, providing us with a strong pipeline of activity with
self-insured employers and health plans. The mid-2021 surge
experienced with a Fortune 50 health services client, along with
the anticipated launch of several proofs of concept in new customer
categories in the coming weeks, will also positively impact our
financials this year, setting us up for an even stronger
performance in 2023."
__________________________________________
|
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.
|
Fourth Quarter 2021 Financial Results
Revenue for the three months ended December 31, 2021 was $2.4
million, as compared to $2.5
million in the prior-year period. The decline in revenue was
largely the result of COVID-19 headwinds along with corresponding
softer participant engagement and onboarding in the fourth quarter.
Enrollment fee revenue totaled $2.3
million for the fourth quarter, up from $2.2 million in the prior-year period.
Gross profit for the fourth quarter 2021 totaled $1.2 million, as compared to $1.3 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 labor costs associated with hiring and training of the
Company's coaching team of Inspirators. As a percentage of revenue,
gross profit totaled 52%, compared to 51% in the prior-year
period.
Adjusted operating expenses2 for the three
months ended December 31, 2021
totaled $2.6 million, compared to
$3.8 million in the prior-year
period. Management made concerted efforts during 2021 to right-size
operating expenses due to the challenging pandemic growth. The
decline in adjusted operating expenses results from a decrease in
headcount and compensation costs tied to this right-sizing
effort.
For the quarter, the Company had an adjusted operating
loss3 of $1.4
million, compared to an adjusted operating loss of
$2.6 million in the prior-year
period.
The Company ended the fourth quarter 2021 with $0.8 million in cash and an outstanding loan
balance of $2.3 million against its
$7.5 million credit facility.
Full Year 2021 Financial Results
Revenue for the full year ended December
31, 2021 was $10.5 million, as
compared to $11.4 million in the
prior year. Similar to the fourth quarter, full year 2021 revenue
was impacted by COVID-19. In addition, 2020 revenue was bolstered
by an incentivized program launched in January 2020 by one of the Company's Fortune 500
financial services clients which was not repeated in 2021. Despite
the decline in revenue, participant engagements did reach a record
for the full year at 135,500, an increase of 14% year-over-year.
Enrollment fee revenue totaled $1.5
million for 2021, a decrease of over 12% year-over-year.
Gross profit for the year totaled $5.1
million, as compared to $5.5
million in the prior year. 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 labor costs
associated with hiring and training of the Company's coaching team
of Inspirators. As a percentage of revenue, gross profit totaled
49%, up from the prior year of 48%.
Adjusted operating expenses2 for year totaled
$11.0 million, as compared to
$11.3 million in the prior year due
to reductions in the Company's compensation costs.
For the full year ended December 31,
2021, the Company had an adjusted operating loss3
of $5.9 million, compared to an
adjusted operating loss of $5.8
million in the prior year.
2022 Outlook
Following a challenging 2021, Newtopia's business is trending
positively in 2022 as the Company begins to see the benefits of
growth with existing employer clients as well as the prospects of
the launch of proofs of concept with new health plan clients
through its expanded business development strategy. As a result,
the Company anticipates achieving year-over-year and sequential
revenue growth in the first quarter 2022 along with full year,
year-over-year revenue growth for 2022.
In terms of capital expenditures, the Company expects
approximately $0.5 million in capex
for 2022. Of note, these expenditures will be capitalized over
their lifetime. A significant portion of this capital expenditure
will be directly related to the launch of a new version of the
Newtopia platform on the Company's own architecture in the second
half of this year. Once the migration to this new platform is
complete, an annual licensing cost associated with the existing CRM
platform of approximately $450,000
per year will be eliminated. Newtopia also anticipates that the
Company will see improved gross profit margins over time after the
launch of its new platform. Newtopia takes a measured approach to
adding expenses in support of growth, and, as such, with the
anticipated top line growth, the Company continues to strive to be
cash flow positive from operations as it exits 2022.
_______________________________
|
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.
|
Grants of Stock Options
Newtopia further announced today that its Board of Directors has
approved the grant of 499,985 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$0.28
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 fourth
quarter and full year 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 13726826. 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
Tuesday, April 19, 2022 which can be
accessed by dialing (844) 512-2921 (U.S.) or (412) 317-6671
(International) and entering the passcode 13726826. 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 and quoted on the OTC Venture Market in the U.S.
(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, 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 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 the 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 news release.
For further information, please visit our website at
www.newtopia.com
Key Financial Measures and Schedule of Non-GAAP
Reconciliations
|
|
Three Months Ended
December 31,
|
|
Years Ended December
31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenue
|
|
2,402,793
|
|
2,476,904
|
|
10,455,848
|
|
11,416,319
|
Cost of
sales
|
|
(1,164,683)
|
|
(1,215,148)
|
|
(5,384,184)
|
|
(5,913,724)
|
Gross profit
|
|
1,238,110
|
|
1,261,756
|
|
5,071,664
|
|
5,502,595
|
Gross
margin
|
|
52%
|
|
51%
|
|
49%
|
|
48%
|
Reconciliation of Total Operating Expenses to Adjusted
Operating Expenses [2]
|
|
Three Months
Ended
December
31,
|
|
Years
Ended
December
31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Total
expenses
|
|
3,033,487
|
|
4,190,148
|
|
12,721,418
|
|
13,234,441
|
Add
(Subtract)
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
(139,210)
|
|
(395,043)
|
|
(1,071,275)
|
|
(771,662)
|
Depreciation of
property and
equipment
|
|
(15,652)
|
|
(18,393)
|
|
(66,590)
|
|
(80,298)
|
Depreciation of
right-of-use asset
|
|
(46,188)
|
|
(46,189)
|
|
(184,767)
|
|
(184,767)
|
Interest on lease obligations
|
|
(25,525)
|
|
(33,358)
|
|
(113,714)
|
|
(143,325)
|
Interest and accretion expense
|
|
(97,338)
|
|
-
|
|
(112,990)
|
|
(233,542)
|
Finance charges, including
amortization of
deferred expenses
|
|
(22,592)
|
|
(2,005)
|
|
(67,342)
|
|
(13,000)
|
Foreign exchange loss (gain)
|
|
(2,236)
|
|
(56,679)
|
|
(34,650)
|
|
34
|
Change in value of convertible
debenture derivative liabilities
|
|
-
|
|
-
|
|
-
|
|
(448,656)
|
Change in value of derivative liability
|
|
-
|
|
194,966
|
|
47,508
|
|
131,162
|
Capitalized borrowing costs
|
|
39,200
|
|
-
|
|
39,200
|
|
-
|
Loss on settlement of related party
payable
|
|
(18,964)
|
|
-
|
|
(18,964)
|
|
(167,716)
|
Adjusted operating
expenses
|
|
2,643,511
|
|
3,833,447
|
|
10,963,437
|
|
11,322,671
|
Adjusted Operating Loss
[3]
|
|
Three Months Ended
December 31,
|
|
Years Ended December
31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Gross profit
|
|
1,238,110
|
|
1,261,756
|
|
5,071,664
|
|
5,502,595
|
Adjusted operating
expenses
|
|
(2,643,511)
|
|
(3,833,447)
|
|
(10,963,437)
|
|
(11,322,671)
|
|
|
(1,405,401)
|
|
(2,571,691)
|
|
(5,891,773)
|
|
(5,820,076)
|
NEWTOPIA INC.
Statements of Financial Position
As at December 31, 2021 and 2020
(Expressed in Canadian Dollars)
|
|
2021
|
2020
|
|
|
$
|
$
|
Assets
|
|
|
|
Current assets
|
|
|
|
Cash
|
|
811,584
|
4,673,683
|
Trade and other
receivables
|
|
1,381,977
|
1,067,123
|
Contract asset
|
|
–
|
18,810
|
Prepaid expenses and
deposits
|
|
330,992
|
465,285
|
Inventories
|
|
131,000
|
278,696
|
Deferred costs
|
|
162,872
|
232,089
|
|
|
2,818,425
|
6,735,686
|
Property and
equipment
|
|
66,147
|
129,913
|
Right–of–use asset
|
|
369,538
|
554,305
|
Intangible asset
|
|
2,251,852
|
68,948
|
|
|
5,505,962
|
7,488,852
|
Liabilities
|
|
|
|
Current liabilities
|
|
|
|
Trade and other
payables
|
|
1,965,420
|
2,358,393
|
Credit
facility
|
|
2,331,314
|
–
|
Lease obligations
|
|
300,555
|
215,532
|
Contract liability
|
|
144,034
|
-
|
Deferred revenue
|
|
59,549
|
–
|
Derivative liability
|
|
–
|
47,508
|
|
|
4,800,872
|
2,621,433
|
Non–current lease
obligations
|
|
367,001
|
667,558
|
Debentures
|
|
2,182,403
|
–
|
|
|
7,350,276
|
3,288,991
|
Equity/Deficit
|
|
|
|
Common shares
|
|
45,177,120
|
44,648,952
|
Common shares to be
issued
|
|
–
|
528,168
|
Contributed surplus
|
|
11,652,200
|
10,046,621
|
Deficit
|
|
(58,673,634)
|
(51,023,880)
|
|
|
(1,844,314)
|
4,199,861
|
|
|
5,505,962
|
7,488,852
|
NEWTOPIA INC.
Statements of Loss and
Comprehensive Loss
Years Ended December 31, 2021 and
2020
(Expressed in Canadian Dollars)
|
|
2021
|
2020
|
|
|
$
|
$
|
Revenue
|
|
10,455,848
|
11,416,319
|
Cost of
revenue
|
|
5,384,184
|
5,913,724
|
Gross profit
|
|
5,071,664
|
5,502,595
|
|
|
|
|
Operating
expenses
|
|
|
|
Technology and development
|
|
3,126,963
|
3,439,845
|
Sales and marketing
|
|
3,156,822
|
3,528,912
|
General and administrative
|
|
4,679,652
|
4,353,914
|
Share–based compensation
|
|
1,071,275
|
771,662
|
|
|
12,034,712
|
12,094,333
|
Other expenses
(income)
|
|
|
|
Depreciation of property and
equipment
|
|
66,590
|
80,298
|
Depreciation of right–of–use
asset
|
|
184,767
|
184,767
|
Interest on lease
obligations
|
|
113,714
|
143,325
|
Interest and accretion
expense
|
|
112,990
|
233,542
|
Finance
charges
|
|
67,342
|
13,000
|
Capitalized borrowing
costs
|
|
(39,200)
|
–
|
Foreign exchange
(gain)/loss
|
|
34,650
|
(34)
|
Change in value of convertible debenture derivative
liabilities
|
|
–
|
448,656
|
Loss on settlement of
debt
|
|
18,964
|
167,716
|
Amortization of deferred finance
charges
|
|
174,397
|
–
|
Change in value of derivative
liability
|
|
(47,508)
|
(131,162)
|
|
|
686,706
|
1,140,108
|
|
|
|
|
Net loss and comprehensive
loss
|
|
(7,649,754)
|
(7,731,846)
|
NEWTOPIA INC.
Statements of Changes in Equity
(Deficit)
Years Ended December 31, 2021 and
2020
(Expressed in Canadian Dollars)
|
Common
Shares
|
Shares To
Be Issued
|
Preferred
Shares
|
Special
Warrants
|
Contributed
Surplus
|
Deficit
|
Total
|
|
|
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
|
|
Balance, January 1, 2020
|
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
|
|
|
Net loss and
comprehensive loss
|
–
|
–
|
–
|
–
|
–
|
(7,649,754)
|
(7,649,754)
|
|
|
Share–based
compensation
|
–
|
–
|
–
|
–
|
1,071,275
|
–
|
1,071,275
|
|
|
Warrants issued on
issuance of Debentures
|
–
|
–
|
–
|
–
|
216,588
|
–
|
216,588
|
|
|
Issuance of
shares
|
528,168
|
(528,168)
|
–
|
–
|
–
|
–
|
–
|
|
|
Settlement of related
party payable
|
–
|
–
|
–
|
–
|
317,716
|
–
|
317,716
|
|
|
Balance, December 31, 2021
|
45,177,120
|
–
|
–
|
–
|
11,652,200
|
(58,673,634)
|
(1,844,314)
|
|
|
NEWTOPIA INC.
Statements of Cash Flows
Years Ended December 31, 2021 and
2020
(Expressed in Canadian Dollars)
|
|
2021
|
2020
|
|
|
$
|
$
|
Cash flows used in
operating activities
|
|
|
|
Net
loss and comprehensive loss
|
|
(7,649,754)
|
(7,731,846)
|
Items not involving cash:
|
|
|
|
Depreciation of property and
equipment
|
|
66,590
|
80,298
|
Depreciation of right–of–use asset
|
|
184,767
|
184,767
|
Amortization of deferred finance charges
|
|
174,397
|
13,000
|
Capitalized borrowing costs
|
|
(39,200)
|
–
|
Accretion expense
|
|
62,090
|
233,542
|
Interest on lease
obligations
|
|
113,714
|
143,325
|
Change in value of convertible debenture
derivative
liabilities
|
|
–
|
448,656
|
Change in value of derivative
liability
|
|
(47,508)
|
(131,162)
|
Share–based
compensation
|
|
1,071,275
|
771,662
|
Loss on settlement of
debt
|
|
18,964
|
167,716
|
|
|
(6,044,665)
|
(5,820,042)
|
Change in non–cash working capital
|
|
|
|
Trade and other
receivables
|
|
(314,854)
|
180,735
|
Prepaid expenses and
deposits
|
|
134,293
|
(2,680)
|
Inventories
|
|
147,696
|
326,224
|
Trade and other
payables
|
|
(94,221)
|
549,397
|
Contract
asset/liability
|
|
162,844
|
(18,810)
|
Deferred
revenue
|
|
59,549
|
–
|
|
|
(5,949,358)
|
(4,785,176)
|
Cash flows used in
investing activities
|
|
|
|
Purchase of property and
equipment
|
|
(2,824)
|
(23,835)
|
Intangible asset development
costs
|
|
(2,143,704)
|
(68,948)
|
|
|
(2,146,528)
|
(92,783)
|
Cash flows from
financing activities:
|
|
|
|
Credit facility
withdrawals
|
|
6,352,152
|
–
|
Credit facility
repayments
|
|
(4,020,838)
|
–
|
Proceeds from debenture units, net of closing
costs
|
|
2,336,901
|
–
|
Credit facility financing
costs
|
|
(105,180)
|
(160,775)
|
Repayment of lease obligation
|
|
(329,248)
|
(299,665)
|
Proceeds from private placement offering, net of
share
issuance costs
|
|
–
|
6,748,969
|
Proceeds from exercise of
warrants
|
|
–
|
876,772
|
|
|
4,233,787
|
7,165,301
|
Net change in cash
during the
year
|
(3,862,099)
|
2,287,342
|
|
Cash, beginning of
year
|
4,673,683
|
2,386,341
|
|
Cash, end of
year
|
811,584
|
4,673,683
|
|
|
|
|
|
|
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SOURCE Newtopia Inc.