CALGARY, AB, May 30, 2022 /CNW/ - Katipult Technology Corp. (TSXV: FUND) ("Katipult" or the "Corporation"), provider of an industry leading and award-winning cloud-based software infrastructure for powering the exchange of capital in equity and debt markets, is pleased to announce its financial results for the three -month period ended March 31, 2022.
"Katipult remains steadfast in modernizing private capital markets," said Gord Breese, Katipult CEO. "Our recent Katipult DealFlow announcement showcases how we deliver massive improvements in deal origination and private security trading for investors, broker dealers, and issuers."
The following provides a summary of the results for the first quarter of 2022. The full results and related management discussion and analysis are available on the Corporation's SEDAR profile (www.sedar.com).
Q1 2022 Summary
Subscription revenue increased 15.3% from $378K booked in first quarter of 2021 to $436 in first quarter of 2022.
Gross profit percentage was 77.8% in the first quarter of 2022. The Corporation has been able to consistently maintain a gross profit percentage of over 70%.
Adjusted EBITDA (1)
Adjusted EBITDA losses increased to $471 in three-month ended March 31, 2022, due mostly to the increased salaries, subcontractors, and benefits expenditures - as the Corporation invests in key employees - partially offset by an increase in subscription revenue.
Net loss and comprehensive loss
Net loss and comprehensive loss increased to $710 in the first quarter of 2022. The increased loss is due to the above noted higher expenditures in addition to a change in the non-cash fair value the Corporation's outstanding 2018 Debentures, and higher finance costs from the accretion of the 2021 Debenture.
Cash and cash equivalents
Cash and cash equivalents and marketable securities balance as at March 31, 2022 was $2.1 million.
Cautionary Note Regarding Forward Looking Statements: Certain disclosure in this release, including statements regarding the increased or continued industry interest in the Corporation's product, converting existing sales interest and installations into revenue, generating new sales opportunities, building an ecosystem that will be acceptable, effectively and efficiently utilizing the Corporation's resource and the ability to deal with business disruptions or opportunities as a result of the Covid-19 pandemic constitute forward-looking statements. In making the forward- looking statements in this release, the Corporation has applied certain factors and assumptions that are based on the Corporation's current beliefs as well as assumptions made by and information currently available to the Corporation, including, but not limited to, the Corporation's anticipated cash needs, that the cash available to the Corporation is as expected, the Corporation's product will continue to operate as expected, the industry will continue to see value in the Corporation's product, the Corporation will be able to recruit talented and experienced sales, support and other individuals required to execute the Corporation's plans, and that the Corporation's employees, consultants, customers, suppliers and other stakeholders will be able to manage successfully throughout the Covid- 19 pandemic. Although the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, the risk that cash available to the Corporation is not as expected, failure to manage growth successfully, lengthier than anticipated sales and implementation cycle, cyber risks, risks related to cloud based solutions, failure to continue to adapt to technological change and new product development, dependence on key personnel, competition, intellectual property risks, economic conditions, the financial and economic fallout due to the Covid-19 pandemic, privacy concerns and legislation, regulatory environment, risk associated with a change in the Corporation's pricing model, risk of defects in the Corporation's solution, dependence on market growth, operational service risk, dependence on partners and delay or failure to realize anticipated benefits of key account installations. Readers are cautioned, especially in these uncertain times, not to place undue reliance on forward-looking statements. The Corporation does not intend to, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.