CALGARY, AB / ACCESSWIRE / April 28, 2022 / Ivrnet Inc. (TSXV:IVI) ("Ivrnet" or the "Company") announces that it has filed its audited consolidated financial statements for the years ended December 31, 2021 and 2020 (the "Financial Statements") and the accompanying management's discussion and analysis for the year ended December 31, 2021 (the "MD&A").
The following 2021 financial highlights should be read in conjunction with the Financial Statements and the accompanying MD&A, which can be found on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com.
2021 Financial Highlights:
- The Corporation saw growth in its financial technology revenues which increased by an aggregate total of $347,141 or 124% to $627,870 in 2021 from $280,729 in 2020. Fixed recurring revenue increased by $226,372 or 228% to $325,727 in 2021 compared to $99,355 in 2020 and variable recurring revenue increased by $112,600 or 91% to $235,849 in 2021 compared to $123,249 in 2020. Total one-time financial technology revenues in 2021 were $66,294 from initial customer setup fees and other non-recurring projects. These increases in financial technology services revenues are driven by the addition of new customers, including a tier one Canadian wireless carrier.
- An increase in variable recurring revenue from Central services of $51,206 or 30% to $220,884 in 2021 compared to $169,678 in 2020. This increase was due to an increase in customer memberships in 2021 compared to 2020. This increase was offset by an expected decrease in fixed recurring revenues from Central services which amounted to $155,988 or 45% to $190,813 in 2021 compared to $346,801 in 2020 due to the planned phasing out of the Company's sports registration services.
- One-time revenues from communications services was $42,195 in 2021 from initial customer setup fees, product integration fees, and other non-recurring product sales. This increase was offset by an expected decline in variable recurring revenue from communications services of $308,078 or 35% to $561,834 in 2021 compared to $869,912 in 2020 primarily due to the temporary increase in these revenues in 2020 from the onset of the COVID-19 pandemic as more companies switched to telephone and audio-conferencing solutions to remain connected. As companies have adapted to the COVID-19 restrictions the use of these solutions has declined. Fixed recurring revenues from communications was relatively consistent with $1,355,128 recorded in 2021 and $1,394,290 recorded in 2020.
- Direct costs decreased by $135,757 or 13% to $929,676 in 2021 compared to $1,065,433 in 2020. The decrease is due to realized cost savings from changes completed in 2021 to the Corporation's infrastructure. The Corporation streamlined its operations to control its direct costs which has resulted in improved gross margin. Due to the decrease in direct costs the gross margin increased to 70% in 2021 as compared to 66% in 2020.
- Earnings before Interest, Depreciation and Amortization ("EBITDA") for the year ended December 31, 2021 was a loss of $152,205 compared to earnings of $241,221 for the year ended December 31, 2020. The decrease is primarily a result of non-recurring and non-cash expenses including $230,710 of share based compensation from common share purchase options granted during 2021, a $42,298 loss on the settlement of liabilities through the issuance of common shares and $124,479 of impairment on the right of use asset and $77,434 of loss on disposal of property and equipment as the Corporation vacated its leased premise in 2021 because the premise had been made untenable by the landlord. These non-recurring and non-cash expenses were offset by the increase in gross margin and additional cost control efforts in effect in 2021.
Trading Halt
The Corporation's common shares are currently halted from trading, and the trading of the Corporation's common shares is expected to remain halted pending completion of the reverse takeover transaction with Flexity Systems Ltd. previously announced on November 19, 2021 and updated on March 29, 2022.
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 through the Internet and traditional phone network. These applications facilitate automated interaction through personalized communication between people, mass communication for disseminating information to thousands of people concurrently, and personalized communication between people and automated systems.
For further information: please contact Andrew Watts, President and CEO, Ivrnet Inc.; Suite 1400, 350 - 7th Avenue S.W., Calgary, Alberta T2P 3N9; Tel/fax 1.800.351.7227; E-mail: investors@ivrnet.com; www.ivrnet.com.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Ivrnet Inc.
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