Mr. Charlie Glavin reports

BOARDWALKTECH REPORTS THIRD QUARTER FISCAL 2024 FINANCIAL RESULTS

Boardwalktech Software Corp. has released its financial results for the three-and nine-month period ended Dec. 31, 2023. All figures are reported in United States dollars, unless otherwise indicated. Boardwalktech's financial statements are prepared in accordance with international financial reporting standards (IFRS).

Financial highlights:

• Revenue for Q3 2024 was $1.48-million, a 3-per-cent increase from $1.53-million in fiscal Q2 2023 and versus $1.55-million in fiscal Q1 2023. Revenue from recurring SaaS (software-as-a-service) licences in fiscal Q3 2024 increased 6 per cent sequentially and year over year, but was offset by a 42-per-cent sequential and 76-per-cent year-over-year decline in professional services.
• Annual recurring revenue (ARR), a non-IFRS (international financial reporting standards) metric, at Dec. 31, 2023, was $5.7-million, unchanged versus ARR of $5.7-million at Sept. 30, 2023. The company defines ARR as the annual recurring revenue expected based on licence subscriptions and recurring services recognized in the quarter.
• Gross margin for fiscal Q3 2024 was 89.1 per cent, comparable with the 90.1-per-cent level in fiscal Q2 2024 and 91.5 per cent in fiscal Q3 2023.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for fiscal Q3 2024 was a loss of $(380,000), comparable with $(360,000) loss in fiscal Q2 2024 and versus a $(240,000) loss in fiscal Q3 2024.
• Cash and electronic payments (share subscription receivables) for fiscal Q3 2024 totalled $1.3-million, upon closing of the first tranche of the company's private placement.
• Non-IFRS net loss for fiscal Q3 2024 (as defined in the non-IFRS financial measures section) totalled $(400,000), or a loss of (one cent) per basic and diluted share, versus a $(400,000) non-IFRS loss in fiscal Q2 2024, or a loss of (one cent) per basic and diluted share, and versus a $(300,000) non-IFRS loss in fiscal Q3 2023, or a loss of (one cent) per basic and diluted share.
  • Net loss for fiscal Q3 2024 was $(760,000), or a loss of (two cents) per basic and diluted share, versus a $(710,000) loss in fiscal Q2 2024, or (two cents) per basic and diluted share, and versus $(650,000) loss in Q3 fiscal 2023, or (one cent) per basic and diluted share. The sequential change was due primarily from operating expense control offset by the lower professional service revenue.

Operations highlights and subsequent events

• On Nov. 27, 2023, the company announced the extension and expansion of its existing engagement with a leading Fortune 50 technology company, including the first annual licence. Combined licence and services revenue from this expanded plan is expected to exceed $400,000 (U.S.) over the next 12 months.
• As of Jan. 16, 2024, the company announced the that it had expanded commercial agreements with three of its existing customers, with one of these customers, Sekisui Chemical, implementing Boardwalktech's new Unity Central application to enhance its supply chain visibility and data management capabilities.
• Also on Jan. 16, 2024, the company announced a realignment of resources allowing the company to focus efforts on selective strategic sales and marketing additions. These actions are expected to generate approximately $1-million (U.S.) in annual cost savings and help accelerate its projected timeline to profitability without sacrificing growth. The reported figures for fiscal Q3 2024 do not include any impact of these actions, but will impact the current and future quarters.
• On Jan. 25, 2024, the company announced the extension and upsizing for the final closing in respect to the second tranche of the previously announced LIFE-based (listed issuer financing exemption), non-brokered unit private placement for up to an additional $490,400 of gross proceeds.
• On Feb. 26, 2024, the company announced it had closed the second and final tranche of the aforementioned LIFE-based (listed issuer financing exemption), non-brokered unit private placement for issuance of 473,400 units at 30 cents per unit on the same terms as the first tranche. Concurrently with the completion of the second tranche of the LIFE offering, the company also issued 32,825 units on a non-brokered basis to United States investors, at 22 U.S. cents (equivalent of 30 cents) with equivalent commercial terms for each warrant per unit. Collectively across both tranches of the offering a total of 7,521,578 units were issued, and an aggregate of $2,256,473 gross proceeds were raised.

"During the quarter, we realigned our resources to focus on sales and marketing that should achieve better pipeline conversion while accelerating our timeline to adjusted EBITDA breakeven, which we expect to achieve by this summer. We remain enthusiastic about our Velocity product in the financial services sector, as we continue to sign new partners to work with delivering this unique remediation and risk management product to the market." stated Andrew T. Duncan, president and chief executive officer of Boardwalktech. "All signs continue to point to positive results and an upward momentum for the company. We signed our first major Unity Central licence in the December quarter with addition customers poised to execute over the next few months, complementing our land and expand growth for our core digital ledger solution."

Earnings conference call details

Boardwalktech management will be hosting its earnings conference call today (Feb. 28, 2024).

Detail:

Time:  5 p.m. Eastern Time/2 p.m. Pacific Time

To join the call, please use the following dial-in information:

North American participants:  please dial 1-888-664-6383 (toll-free) or 416-764-8650 (local -- Toronto)

European participants:  0800-724-0293 (Germany), 0800-312-635 (Switzerland), 0800-652-2435 (United Kingdom)

A replay of the call will be available until March 6, 2024, and can be accessed by dialling 1-888-390-0541 and entering access code 065643 followed by the pound key.

About Boardwalktech Software Corp.

Boardwalktech has developed a patented digital ledger technology platform currently used by Fortune 500 companies running mission-critical applications worldwide. Boardwalktech's digital ledger technology and its unique method of managing vast amounts of structured and unstructured data are the only platform on the market today where multiple parties can effectively work on the same data simultaneously while preserving the fidelity and provenance of the data. Boardwalktech can deliver collaborative, purpose-built enterprise information management applications on any device or user interface with full integration with enterprise systems of record in a fraction of the time it takes other non-digital ledger technology-based platforms. Boardwalktech is headquartered in Cupertino, Calif., with offices in India and operations in North America.

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