Mr. Jim Barrett reports
EDGE TOTAL INTELLIGENCE INC REPORTS RESULTS FOR FOURTH QUARTER AND FULL YEAR 2021
Edge Total Intelligence Inc. has released its operating and consolidated results for the fourth quarter and year ended Dec. 31, 2021. Financial information is expressed in U.S. dollars unless otherwise indicated. Readers should refer to the Company's audited annual financial statements and related management discussion and analysis for the year ended December 31, 2021 that are posted on its profile on SEDAR.
Subscription Revenues Grew 59% to reach $2.27 Million
Completed Migration to SaaS-like Subscription Model featuring Recurring Revenue
Completed Reverse Acquisition and Raise of $3.8 Million net of share issuance costs
Release of DevOps automation and low-code capabilities enabled customer expansion and new opportunities.
Commenting on the Company's performance in the fourth quarter of 2021, Jason James, Chief Financial Officer said:
"The fourth quarter marked the completion of multiple milestones, with the reverse acquisition and private placement of $3.8 million net of share issuance costs. Our sales team completed the transition to a SaaS-like subscription-based recurring revenue model, which led to lower revenues compared to the prior year. We believe this was a temporary headwind to our reported revenue growth as we achieved an adjusted EBITDA of $22,246 and grew exit Q4 2021 monthly recurring revenue (MRR) sequentially from Q3 2021. As trade shows began to return to in-person events, several new public sector opportunities from the DoDIIS conference (sponsored by Defense Intelligence Agency) increased our pipeline. Our support and development teams rallied to serve customers through the holiday season in response to the Apache Log4J zero-day vulnerabilities that impacted thousands of software titles and products and their respective customers."
Commenting on 2021 and the Company's outlook, Jim Barrett, Chief Executive Officer, said:
"Beyond the reverse acquisition milestone to become a public company, edgeTI grew subscription software licenses 59% year-over-year, which will help create shareholder value in the long run as we transition to a subscription-driven business model. Our platforms are embedded in the critical operations and ultimately become a direct cost of a service or operating expense. Gross margins for the Company moved downward by 12% as we remained committed to customer-led development and buyer demand which resulted in new customer wins and expanded uses for our products. We are extremely proud of the efforts of our people in driving the ingredients needed for our growth and their exemplary efforts in serving our clients and industry stakeholders through all market conditions. Moving forward, edgeTI will execute its growth strategy: 1) increasing awareness across our industry and investors through programs like Gartner's Emerging Tech CEO Program; 2) adding strategic partnerships and sales resources to expand wins in our proven use cases; 3) continuing to remove barriers to adoption and accelerate achievement of customer value; and 4) being mindful of customer challenges and needs that we believe will deepen relationships and expand our ability to address more customers."
Events subsequent to Fiscal year-end
January 24th edgeTI's subordinate voting shares ("SVS") began trading again under its new TSXV symbol "CTRL".
- February 8th Sophic Capital engaged for Investor Relations expertise
- March 8th CEO Presented at the Q1 2022 Virtual Investor Summit
- March 29th SVS began trading on Frankfurt Stock Exchange under symbol "Q5i"
- April 4th Demoed at Smart Cities Connect 2022 Spring Conference
- April 11th edgeTI and SD3IT teamed up for TechNet Indo-Pacific Spring 2022
- April 25th credit and convertible note agreement with Lotus Domain III, L.P. ("Lotus"), a related party of the Company, of US$700,000 plus accrued interest of US$74,602.74 was converted to 1,577,815 subordinate voting shares of the Company (the "Conversion")
Continual threats, challenges, and opportunities require public and private organizations to achieve greater agility and efficiency when making decisions and executing them. Digital Transformation ("DX") is the means to address these needs. According to the IDC Statista Research Department, spending on DX worldwide in 2022 is projected to reach US$1.8 trillion and by 2025, global DX spending is forecast to reach US$2.8 trillion. The Company's platform, edgeCore(TM), facilitates DX with its unique capabilities that accelerate success and lower cost of operations by bringing intelligence and execution together in a single system that does not add a new data store. Operationally, the Company is executing its growth plan and driving monthly recurring revenue subscriptions.
Related Party Disclosure
As a result of Lotus being a controlling shareholder of the Company, and Christian Mack and David Roman being insiders of Lotus and also directors of the Company, the Conversion is considered to be a related party transaction under applicable securities laws. Where available, the Company has relied upon exemptions in respect of the formal valuation and minority shareholder approval requirements under applicable securities laws. The Conversion is not subject to the formal valuation requirements under Multilateral Instrument 61-101 -Protection of Minority Security Holders in Special Transactions ("MI 61-101"), and the Company has relied upon the exemption in paragraph (b) of section 5.7(1) of MI 61-101 as the fair market value of the securities issued pursuant to the Conversion does not exceed $2,500,000 and meets the other requirements set out in paragraph (b).
Edge Total Intelligence ("edgeTI") helps customers achieve the impossible with its real-time digital operations software, edgeCore(TM). Global enterprises, service providers, and governments are more profitable when insight and action are united to deliver fluid experiences via the platform's low-code development capability. With edgeTI, customers improve their margins and agility by rapidly transforming siloed systems and data across evolving situations in business, technology, and cross-domain operations. Traded on: TSXV: CTRL FSE: Q5i
We seek Safe Harbor.
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