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AirIQ Inc (2)
Symbol IQ
Shares Issued 29,367,574
Close 2023-07-12 C$ 0.33
Market Cap C$ 9,691,299
Recent Sedar Documents

AirIQ earns $3.69-million in fiscal 2023

2023-07-13 12:56 ET - News Release

Mr. Mike Robb reports

AIRIQ ANNOUNCES MARCH 31, 2023 YEAR END RESULTS REPORTS SEVENTH CONSECUTIVE YEAR OF RECURRING REVENUE GROWTH

AirIQ Inc. has released its financial results for the year ended March 31, 2023, reporting its seventh consecutive year of recurring revenue growth.

"We are very pleased to report that recurring revenue increased by 13 per cent compared to the previous year," said Mike Robb, president and chief executive officer of AirIQ. "The company has reported recurring revenue growth for the seventh straight year, representing an increase of over 100 per cent during that period. The company's growth in recurring revenues has provided a strong base for future growth and profitability for our shareholders."

"Over the past seven years, we have been consistently profitable and generated positive cash flows from operations, which has allowed us to recognize a deferred tax asset of almost $3-million, adding an additional 10-cent net income per share to our shareholders," continued Mr. Robb.

"In addition, during the quarter the company successfully completed an acquisition which resulted in an additional $300,000 of annual recurring revenue and represents an acquisition cost of less than one time. We believe this acquisition will continue to drive recurring revenue growth in future periods and will continue to provide increased shareholder value," continued Mr. Robb.

"Other achievements during the quarter included increases of 27 per cent in hardware revenues, 16 per cent in total revenues, 13 per cent in gross profit and 52 per cent in net income before tax," said Mr. Robb, president and chief executive officer of AirIQ.

All dollar amounts set out herein are in Canadian dollars.

Highlights for the year are as follows:

Annual highlights (for the year ended March 31, 2023, compared with March 31, 2022):

  • Recurring revenue of $3,951,177 increased by 13 per cent or $447,389 compared with $3,503,788 for the prior year. Recurring revenue represented 78 per cent of total revenue compared with 80 per cent in the prior-year period.
  • Hardware and other revenue of $1,098,115 increased by 27 per cent or $232,344 compared with $865,771 for the prior year. Hardware revenue represented 22 per cent of total revenue compared with 20 per cent in the prior-year period.
  • Total revenue of $5,049,292 increased by 16 per cent or $679,733 compared with $4,369,559 for the prior-year period.
  • Gross profit of $3,036,095 increased by 13 per cent or $356,898 compared with $2,679,197 for the prior-year period.
  • Net income of $3,693,440 increased 551 per cent or $3,126,667 compared with $566,773 for the prior-year period. Excluding the one-time deferred tax recovery of $2,830,204, net income of $863,236 increased 52 per cent or $296,463 compared with $566,773 for the prior-year period.
  • Cash and cash equivalents balance of $2,176,143 increased by 15 per cent or $276,635 compared with $1,899,508 for the prior-year period.
  • Working capital of $2,748,240 increased by 27 per cent or $580,735 compared with $2,167,505 for the prior-year period.

Fourth quarter highlights:

  • Recurring revenue of $1,050,903 increased by 12 per cent or $111,158 compared with $939,745 for same quarter in the prior year and increased by 6 per cent or $60,413 compared with $990,490 from the prior quarter.
  • Net income of $157,432 for the quarter (excluding the one-time deferred tax recovery of $2.83-million) increased by 111 per cent or $82,675 compared with $74,757 for the same quarter in the prior year.

Business review

Deferred tax assets

Deferred tax assets of $2,948,000 were recognized at March 31, 2023 (March 31, 2022 -- nil) because it was deemed probable that the company will generate future taxable profits against which the assets will be realized. This led to a one-time adjustment of $2,830,204 deferred income tax recovery to be recognized on the income statement.

Intangibles -- customer contracts

During the year ended March 31, 2023, the company acquired customer lists from a former reseller of the company through the settlement of trade receivables in the amount of $312,394 (March 31, 2022 -- nil), which was recognized as the value of the intangible asset.

Normal course issuer bid

The company filed a notice of intention to make a normal course issuer bid with the TSX Venture Exchange commencing June 6, 2022, and ending on June 5, 2023. Pursuant to the bid, the company proposed to purchase through the facilities of the TSX-V up to 1,468,379 common shares, representing approximately 5 per cent of the then issued and outstanding common shares of the company. The company's broker for the bid is Hampton Securities Ltd.

During the year ended March 31, 2023, the company purchased 360,500 common shares for cancellation under the bid for a total of $97,539 or 27 cents per common share (March 31, 2022 -- 507,000 common shares were purchased for cancellation for a total of $144,414 or 28 cents per common share), plus an additional $984 in broker fees were paid for the repurchase of the shares (March 31, 2022 -- $2,856).

During the year ended March 31, 2022, normal course issuer bid repurchases were made pursuant a bid filed with the TSX-V for the period commencing April 13, 2021, and ending on April 12, 2022. The company's broker for this bid was also Hampton Securities.

Stock option plan

On Sept. 15, 2022, the company granted options to key staff in the aggregate up to 850,000 common shares in the capital of the company at an exercise price of 27 cents per share. These options have a term of 10 years, vest over four years from the date of grant (25 per cent the first year and 6.25 per cent each quarter thereafter) and will expire on Sept. 15, 2032. The company also granted options to two board members in the aggregate up to 150,000 common shares at an exercise price of 27 cents per share. These options have a term of 10 years and vest over a one-year period with 25 per cent being vested each quarter from the date of grant.

No options were granted during the year ended March 31, 2022.

Subsequent events

Normal course issuer bid

Subsequent to March 31, 2023, on June 23, 2023, the company announced the renewal of its normal course issuer bid to purchase up to 1,468,379 common shares, representing 5 per cent of the company's then current issued and outstanding common shares through the facilities of the TSX-V during the period commencing June 23, 2023, and ending on June 22, 2024. As of July 12, 2023, the company has not repurchased any shares for cancellation pursuant to the renewal bid.

As of the time of issuance of this press release, the company has a total of 29,367,574 common shares issued and outstanding.

Overview

The company's audited consolidated financial statements include the accounts of AirIQ and its subsidiaries AirIQ U.S. Holdings Inc., AirIQ U.S. Inc. and AirIQ LLC. All intercompany balances and transactions have been eliminated on consolidation.

Financial statements and management's discussion and analysis

The company's audited consolidated financial statements for the years ended March 31, 2023, and 2022, including notes thereto, and management's discussion and analysis for the same period are being filed with the Canadian securities regulatory authorities on today's date and will be available on the company's website and on the System for Electronic Document Analysis and Retrieval (SEDAR) website. The company's financial statements include the accounts of AirIQ and its subsidiaries AirIQ U.S. Holdings, AirIQ U.S. and AirIQ. All intercompany balances and transactions have been eliminated on consolidation.

About AirIQ Inc.

AirIQ is celebrating its 26th anniversary of its founding in 1997 and is a pioneer in Internet of Things-based asset management solutions. AirIQ's solutions allow commercial businesses to reliably, effectively and efficiently monitor assets in near real time. The company develops iOS and Android mobile and Web-based applications, and cloud-based solutions that stand alone or that can be readily integrated with existing software. AirIQ solutions are mixed fleet capable and provide fleet reporting, maintenance, compliance, safety and analytics utilizing multiple hardware options, including a fully integrated video telematics camera solution and a battery-powered solution for non-powered assets.

We seek Safe Harbor.

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