Ivrnet announces financial results for the six months ended June 30, 2022 and provides information on trading halt | Panda Anku


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CALGARY, AB /ACCESSWIRE / Aug 26, 2022 / Ivrnet Inc. (TSXV:IVI) (“IVrnet” or the “company“) announces that it has filed its condensed interim consolidated financial statements for the three and six months ended June 30, 2022 (the “Interim Financial Statements”) and accompanying Management’s Discussion and Analysis for the six months ended June 30, 2022 (the “Preliminary M&A”).

The following second quarter 2022 financial highlights should be read in conjunction with the interim financial statements and accompanying interim MD&A, which can be found on the Canadian System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.

Financial Highlights of Q2 2022

  • The company has seen continued growth in its recurring financial technology revenue. Fixed recurring revenue increased $5,766 (approximately 7%) to $86,441 in Q2 2022 compared to $80,675 in Q2 2021 and variable recurring revenue increased $12,475 (approximately) 21% to $70,667 for the second quarter of 2022 compared to $58,192 for the second quarter of 2021. During the six months ended June 30, 2022, fixed recurring revenue increased by $22,837 (approximately 15%) to $173,082 compared to $150,245 for the six months ended June 30, 2021 and variable recurring revenue increased by $2,549 (approximately 2%) to $125,412 compared to $122,863 for the six months ended June 30, 2021. The overall increase in fin technology services revenue was due to the arrival of a new customer.
  • Central’s fixed recurring revenue decreased $12,126 (approximately 26%) to $34,284 in Q2 2022 compared to $46,411 in Q2 2021 and down $22,128 (approximately 22%) to $80,384 in the six Months ended June 30, 2022 compared to $102,512 in the six months ended June 30, 2021. The decrease was primarily due to a new pricing strategy implemented in the first quarter of 2022 for homeowners association customers who are seeing a shift from fixed recurring to variable recurring revenue. Central’s variable recurring revenue increased by $26,684 (approximately 51%) to $78,851 for the second quarter of 2022 compared to $52,167 for the second quarter of 2021 and increased by $50,417 (approximately 50%) to $151,919 compared to $101,502 for the six months ended June 30, 2021. This increase is due in part to the change in pricing strategy of the homeowners associations described above along with an increase in sports registrations for the six months ended June 30, 2022 due to the easing of COVID-19 health guidelines compared to the six months ended June 30, 2021.
  • Communications fixed recurring revenue decreased $30,984 (approximately 9%) to $317,673 for the second quarter of 2022 compared to $348,657 for the second quarter of 2021 and decreased $45,091 for the six months ended June 30, 2022 ( approximately 7%) to $639,851 compared to $684,942 for the six months ended June 30, 2021. The decrease in fixed recurring revenue is primarily due to reduced fees from existing customers. Variable communications recurring revenue increased by $10,610 (approximately 8%) to $147,954 in Q2 2022 from $137,344 in Q2 2021 and by $11,508 (approximately 5%) to $266,152 in the six months ended as of June 30, 2022 compared to $254,644 for the six months ended June 30, 2021. As companies have adapted to COVID-19 restrictions, usage of the Company’s toll-free and audio conferencing solutions has declined. The company plans to implement a new video conferencing product to expand its existing product offering.
  • Total direct costs decreased $2,716 to $232,111, or approximately 31% of revenue, in the second quarter of 2022 compared to $234,827, or approximately 32% of revenue, in the second quarter of 2021. Total direct costs increased $27,699 to $487,512, or approximately 33% of revenue for the six months ended June 30, 2022 compared to $459,813 or approximately 31% of revenue for the six months ended June 30, 2021. This overall increase is primarily due to an increase in certain variable communications costs associated with fixed recurring customer contracts and an increase in virtual data center costs for which the Company received a partial credit in Q2 2022.
  • Earnings before interest, depreciation, and amortization (“EBITDA”) for the second quarter of 2022 was $157,287 compared to a loss of $102,744 for the second quarter of 2021. This represents an increase in EBITDA of $260,031. The increase is primarily a result of lower salaries, wages and general and administrative expenses in the second quarter of 2022 compared to the second quarter along with non-recurring and non-cash items from the second quarter of 2021 that did not repeat in the second quarter of 2022, including stock-based compensation , a loss on the settlement of a liability on the issuance of common stock and an impairment loss on the right-of-use asset. EBITDA was a loss of $244,869 for the six months ended June 30, 2022 compared to a loss of $392,989 for the six months ended June 30, 2021. This represents an increase in EBITDA of $148,120. The increase is primarily due to non-recurring non-cash items for the six months ended June 30, 2021 that did not recur in the six months ended June 30, 2022, including stock-based compensation, a loss on the settlement of liabilities from the issuance of Common stock, a loss on disposal of property, plant and equipment and an impairment loss on right-of-use asset partially offset by additional costs incurred in connection with the reverse acquisition transaction, along with recoverable costs filed by the advertising lenders of approximately $495,000, including sales taxes, in connection with the anticipated settlement of the Term Loan and Preferred Stock Issuance Credit Facility, which is contingent on the completion of the reverse takeover transaction.

trading stop

Trading in the Company’s common stock is currently suspended and trading in the Company’s common stock is expected to remain pending completion of the reverse takeover transaction with Flexity Systems Ltd. previously announced on November 19, 2021 and updated on March 29, 2022 , stay exposed.

About IVrnet

Ivrnet is a software and communications company that develops, hosts, sells and supports value-added business automation software. The company’s products and services are delivered over the Internet and traditional telephone lines. These applications facilitate automated interactions through personalized communications between humans, mass communications to disseminate information to thousands of humans at once, and personalized communications between humans and automated systems.

For more information, please contact Andrew Watts, President and CEO, Ivrnet Inc.; Suites 1400, 350 – 7thth Avenue SW, Calgary, Alberta T2P 3N9; phone/fax 1.800.351.7227; E-mail: [email protected]; www.ivrnet.com.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE: IVrnet Inc.

View source version on accesswire.com:
https://www.accesswire.com/713715/Ivrnet-Announces-Financial-Results-for-Six-Months-Ended-June-30-2022-and-Provides-Update-on-Trading-Stop

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