SECAUCUS, N.J., Dec. 16, 2025 (GLOBE NEWSWIRE) -- The Children's Place, Inc. (Nasdaq: PLCE), one of the only pure-play children's specialty retailers in North America with an omni-channel portfolio of brands and an industry-leading digital-first model, today announced financial results for the Company's third fiscal quarter ended November 1, 2025.
Muhammad Umair, President and Chief Executive Officer said, "Our third quarter results reflect the challenges we are experiencing in our ecommerce business, with periods of high volatility as we implement our strategic transformation. Separately, our marketing efficiency was also impeded during the quarter in our transition to a new marketing agency and a heightened promotional strategy. Our new operating model envisions an increased physical store presence, and a merchandising reset that adds a more balanced mix of fashion and basics to our product assortment. Our brick-and-mortar business capitalized on its momentum from our second quarter and generated a 2% growth in comparable sales, and as we continue to invest in our real estate portfolio with operational and financial discipline, our new stores are generating results that are outperforming the rest of the fleet. We believe our increased store base will strengthen our omni-channel proposition to our customers that love to experience our beloved brands, both in-store or online."
Mr. Umair continued, "We opened five new stores during the third quarter, with another 11 store openings slated for the fourth quarter. Looking ahead, we plan to open an additional 15 to 20 new stores in the first half of fiscal year 2026, ahead of our critical back-to-school season to drive revenue growth and profitability, with more store openings in the back-half of fiscal year 2026 and beyond. We also plan to refresh our store layouts, and in conjunction with our revamped My Place Rewards loyalty program, we are excited for the enhanced experience this will create for our new and existing customer file."
Financing Update
John Szczepanski, Chief Financial Officer said, "We're also pleased to announce that we have successfully completed the refinancing of a $350 million asset-based lending credit facility with Wells Fargo, supplemented by a $100 million FILO term loan with SLR Credit Solutions. The five-year financing transactions increase our maximum borrowing capacity by up to $17 million and improve our liquidity position by $35 million to $40 million on a proforma basis as of the end of the third quarter. The new financing arrangement will provide us with additional capital to implement our growth strategies, thus strengthening our financial position and balance sheet, and helping to generate long-term shareholder value with the support of our financing partners."
Additional information about the financing transactions is contained in the Company's Current Report on Form 10-Q filed with the Securities and Exchange Commission on December 16, 2025.
Tariff & Transformation Update
Mr. Umair said, "Tariff pressures continue to affect our bottom line, and we now expect the impact of tariffs to result in incremental expenses of approximately $15 million to $20 million for fiscal year 2025, a reduction from our previously estimated impact of $20 million to $25 million. We further expect an incremental impact of $25 million to $30 million in the first half of fiscal year 2026, the majority of which will be mitigated through our strategic initiatives. We remain focused on controlling our costs, and we are increasing the estimate of gross benefits from our previously announced transformation initiative from $40 million to $50 million over the next three years. The Company has already implemented cost actions that will result in over $25 million in gross annualized benefits, offset by approximately $5 million to $10 million in one-time costs. As part of our transformation efforts, we officially opened our new office in Pakistan during the quarter, that will realize cost efficiencies and set the foundation for further cost-saving initiatives. We are confident that these initiatives will improve our cost structure and set us up for long-term success."
Third Quarter 2025 Results
Net sales decreased $50.7 million, or 13.0%, to $339.5 million in the three months ended November 1, 2025, compared to $390.2 million in the three months ended November 2, 2024. The decrease in net sales was driven by a decrease in wholesale revenue due to lower order commitments as a result of higher purchases earlier in the fiscal year, and a decrease in e-commerce sales due to lower traffic and conversion compared to the comparable period last year, in addition to challenges the Company experienced with transitioning to a new marketing agency during the quarter. Comparable retail sales decreased 5.4% for the quarter.
Gross profit decreased $26.0 million to $112.3 million in the three months ended November 1, 2025, compared to $138.3 million in the three months ended November 2, 2024. Gross margin decreased 240 basis points ("bps") to 33.1% during the three months ended November 1, 2025, compared to 35.5% in the comparable period last year. The decrease in gross margin was caused by a higher penetration of markdown sales (200 bps), the impact of higher tariffs on the Company's product (55 bps), and an increase in inventory reserves (50 bps), partially offset by favorable channel and product mix.
Selling, general, and administrative expenses were $101.3 million in the three months ended November 1, 2025, compared to $99.8 million in the three months ended November 2, 2024. The increase was primarily due to an increase in marketing expenses as the Company ramped up its spend towards the end of the quarter to drive incremental e-commerce demand, expenses incurred to revamp the My Place Rewards loyalty program, costs to support the Company's new stores strategy, and an increase in donations as the Company further develops its inventory lifecycle process, partially offset by one-time costs incurred in the prior year. Adjusted selling, general, and administrative expenses were $101.0 million in the three months ended November 1, 2025, compared to $93.8 million in the comparable period last year, and deleveraged 570 basis points to 29.7% of net sales.
Operating income was $3.7 million in the three months ended November 1, 2025, compared to $29.3 million in the three months ended November 2, 2024. Adjusted operating income was $4.0 million in the three months ended November 1, 2025, compared to $35.3 million in the comparable period last year.
Net interest expense was $8.1 million in the three months ended November 1, 2025, compared to $10.1 million in the three months ended November 2, 2024. The decrease was due to lower average borrowings and interest rates on the Company's revolving credit facility with Wells Fargo and other bank lenders.
Benefit for income taxes was $(0.1) million in the three months ended November 1, 2025, compared to $(0.9) million during the three months ended November 2, 2024. The Company continues to adjust its valuation allowance based on ongoing operating results.
Net loss was $(4.3) million, or $(0.19) per diluted share, in the three months ended November 1, 2025, compared to net income of $20.1 million, or $1.57 per diluted share, in the three months ended November 2, 2024. Adjusted net loss was $(4.0) million, or $(0.18) per diluted share, compared to an Adjusted net income of $26.1 million, or $2.04 per diluted share, in the comparable period last year.
Fiscal Year-To-Date 2025 Results
Net sales decreased $98.1 million, or 10.0%, to $879.6 million in the nine months ended November 1, 2025, compared to $977.7 million in the nine months ended November 2, 2024. The decrease in net sales was driven by a decrease in e-commerce sales due to lower traffic and conversion. The Company also experienced a decrease in brick-and-mortar revenue due to a lower store count and lower sales volume, particularly in the first half of the fiscal year. Our stores and e-commerce sales were both negatively impacted by the current macroeconomic environment, including uncertainty around tariffs, which has negatively affected consumer sentiment. The Company also experienced a decrease in wholesale revenue as the Company shifted its strategy towards selling higher margin product to improve profitability. Comparable retail sales decreased 7.5% for the nine months ended November 1, 2025.
Gross profit decreased $58.5 million to $284.4 million in the nine months ended November 1, 2025, compared to $342.9 million in the nine months ended November 2, 2024. Gross margin decreased 280 basis points to 32.3% during the nine months ended November 1, 2025, compared to 35.1% in the prior year period. The decrease in gross margin was caused primarily by a higher penetration of markdown sales (140 bps), an increase in inventory reserves (110 bps), and the impact of higher tariffs on our product (50 bps).
Selling, general, and administrative expenses were $277.6 million in the nine months ended November 1, 2025, compared to $305.0 million in the nine months ended November 2, 2024. The decrease was due to a reduction in one-time costs incurred in the prior year, primarily associated with the Company's change of control and broken financing deal costs. Adjusted selling, general, and administrative expenses were $275.1 million in the nine months ended November 1, 2025, compared to $270.8 million in the comparable period last year, and deleveraged 360 basis points to 31.3% of net sales.
Operating loss was $(16.3) million in the nine months ended November 1, 2025, compared to $(20.5) million in the nine months ended November 2, 2024. Adjusted operating loss was $(13.9) million in the nine months ended November 1, 2025, compared to Adjusted operating income of $44.4 million in the comparable period last year.
Net interest expense was $24.7 million in the nine months ended November 1, 2025, compared to $27.0 million in the nine months ended November 2, 2024. The decrease in interest expense was due to lower average borrowings and interest rates on the Company's revolving credit facility, partially offset by the write-off of deferred financing costs associated with the partial paydown of the first term loan entered into with the Company's majority shareholder, Mithaq Capital SPC ("Mithaq") as a result of the Company's rights offering which was completed during the first quarter.
Provision for income taxes was $2.7 million in the nine months ended November 1, 2025, compared to $2.3 million during the nine months ended November 2, 2024. The Company continues to adjust its valuation allowance based on ongoing operating results.
Net loss was $(43.7) million, or $(1.99) per diluted share, in the nine months ended November 1, 2025, compared to $(49.8) million, or $(3.91) per diluted share, in the nine months ended November 2, 2024. Adjusted net loss was $(40.2) million, or $(1.83) per diluted share, compared to Adjusted net income of $15.1 million, or $1.18 per diluted share, in the prior year.
Store Update
During the third quarter, the Company opened five stores and ended the quarter with 499 stores. The store count at the end of the third quarter of 2024 was 510.
Balance Sheet and Cash Flow
As of November 1, 2025, the Company had $7.3 million in cash and cash equivalents, $46.1 million in borrowing availability under its revolving credit facility and an additional $40.0 million in availability under the unsecured Commitment Letter provided by Mithaq, representing total liquidity of $93.4 million. The Company had $297.2 million outstanding on its revolving credit facility and has not drawn down on its Mithaq credit facility. Additionally, the Company used $67.2 million in operating cash flows in the nine months ended November 1, 2025, compared to $238.9 million in the comparable period last year.
Inventories were $390.3 million as of November 1, 2025, compared to $491.6 million as of November 2, 2024. These reduced inventory levels were a result of improved inventory management as the Company continues to align its inventory levels with its growth and product strategy, and better balance the mix of fashion and basic product.
Non-GAAP Reconciliation
The Company's results are reported in this press release on a GAAP and as adjusted, non-GAAP basis. Adjusted net income (loss), adjusted net income (loss) per diluted share, adjusted gross profit, adjusted selling, general, and administrative expenses, and adjusted operating income (loss) are non-GAAP measures, and are not intended to replace GAAP financial information, and may be different from non-GAAP measures reported by other companies. The Company believes the income and expense items excluded as non-GAAP adjustments are not reflective of the performance of its core business, and that providing this supplemental disclosure to investors will facilitate comparisons of the past and present performance of its core business.
Please refer to the "Reconciliation of Non-GAAP Financial Information to GAAP" later in this press release, which sets forth the non-GAAP operating adjustments for the 13-week periods and 39-week periods ended November 1, 2025 and November 2, 2024.
About The Children's Place
The Children's Place is one of the only pure-play children's specialty retailers in North America with an omni-channel portfolio of brands and an industry-leading digital-first model. Its global retail and wholesale network includes two digital storefronts, 499 stores in North America, wholesale marketplaces and distribution in 12 countries through nine international franchise and wholesale partners. The Children's Place designs, contracts to manufacture, and sells fashionable, high-quality, head-to-toe outfits predominantly at value prices, primarily under its proprietary brands: "The Children's Place", "Gymboree", "Sugar & Jade", and "PJ Place". For more information, visit: www.childrensplace.com and www.gymboree.com.
Forward-Looking Statements
This press release contains or may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements relating to the Company's strategic initiatives and results of operations, including adjusted net income (loss) per diluted share. Forward-looking statements typically are identified by use of terms such as "may," "will," "should," "plan," "project," "expect," "anticipate," "estimate," "believe" and similar words, although some forward-looking statements are expressed differently.
These forward-looking statements are based upon the Company's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results and performance to differ materially.
Some of these risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission, including in the "Part 1, item1A. Risk Factors" section of its annual report on Form 10-K for the fiscal year ended February 1, 2025.
Included among the risks and uncertainties that could cause actual results and performance to differ materially are the risk that the Company will be unable to achieve operating results at levels sufficient to fund and/or finance the Company's current level of operations and repayment of indebtedness, the risk that changes in trade policy and tariff regimes, including newly imposed U.S. tariffs and any responsive non-U.S. tariffs, may impact our international manufacturing and operations or our customers' discretionary spending habits, the risk that the Company will be unsuccessful in gauging fashion trends and changing consumer preferences, the risks resulting from the highly competitive nature of the Company's business and its dependence on consumer spending patterns, which may be affected by changes in economic conditions (including inflation), the risk that changes in the Company's plans and strategies with respect to pricing, capital allocation, capital structure, investor communications and/or operations may have a negative effect on the Company's business, the risk that the Company's strategic initiatives to increase sales and margin, improve operational efficiencies, enhance operating controls, decentralize operational authority and reshape the Company's culture are delayed or do not result in anticipated improvements, the risk of delays, interruptions, disruptions and higher costs in the Company's global supply chain, including resulting from disease outbreaks, foreign sources of supply in less developed countries, more politically unstable countries, or countries where vendors fail to comply with industry standards or ethical business practices, including the use of forced, indentured or child labor, the risk that the cost of raw materials or energy prices will increase beyond current expectations or that the Company is unable to offset cost increases through value engineering or price increases, various types of litigation, including class action litigation brought under securities, consumer protection, employment, and privacy and information security laws and regulations, risks related to the existence of a controlling shareholder, and the uncertainty of weather patterns, as well as other risks discussed in the Company's filings with the SEC from time to time.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact: Investor Relations (201) 558-2400 ext. 14500
| THE CHILDREN'S PLACE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
| Third Quarter Ended | Year-to-Date Ended | ||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||
| Net sales | - | 339,466 | - | 390,173 | - | 879,597 | - | 977,706 | |||||||
| Cost of sales (exclusive of depreciation and amortization) | 227,162 | 251,832 | 595,238 | 634,830 | |||||||||||
| Gross profit | 112,304 | 138,341 | 284,359 | 342,876 | |||||||||||
| Selling, general and administrative expenses | 101,301 | 99,817 | 277,567 | 304,976 | |||||||||||
| Depreciation and amortization | 7,334 | 9,266 | 23,134 | 30,406 | |||||||||||
| Asset impairment charges | - | - | - | 28,000 | |||||||||||
| Operating income (loss) | 3,669 | 29,258 | (16,342 | - | (20,506 | - | |||||||||
| Related party interest expense | (1,869 | - | (2,078 | - | (5,609 | - | (4,554 | - | |||||||
| Other interest expense, net | (6,252 | - | (8,000 | - | (19,092 | - | (22,476 | - | |||||||
| Income (loss) before provision (benefit) for income taxes | (4,452 | - | 19,180 | (41,043 | - | (47,536 | - | ||||||||
| Provision (benefit) for income taxes | (132 | - | (900 | - | 2,665 | 2,293 | |||||||||
| Net income (loss) | - | (4,320 | - | - | 20,080 | - | (43,708 | - | - | (49,829 | - | ||||
| Earnings (loss) per common share(1) | |||||||||||||||
| Basic | - | (0.19 | - | - | 1.57 | - | (1.99 | - | - | (3.91 | - | ||||
| Diluted | - | (0.19 | - | - | 1.57 | - | (1.99 | - | - | (3.91 | - | ||||
| Weighted average common shares outstanding(1) | |||||||||||||||
| Basic | 22,170 | 12,801 | 21,980 | 12,753 | |||||||||||
| Diluted | 22,170 | 12,822 | 21,980 | 12,753 | |||||||||||
(1) In connection with the completion of the rights offering on February 6, 2025, the Company's weighted average common shares outstanding and basic and diluted loss per share were retroactively adjusted for all prior periods presented by a factor of 1.002.
| THE CHILDREN'S PLACE, INC. RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
| Third Quarter Ended | Year-to-Date Ended | ||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||
| Net income (loss) | - | (4,320 | - | - | 20,080 | - | (43,708 | - | - | (49,829 | - | ||||
| Non-GAAP adjustments: | |||||||||||||||
| Restructuring costs | - | 340 | - | 4,813 | - | 2,485 | - | 11,180 | |||||||
| Loss on extinguishment of debt | - | - | 1,039 | - | |||||||||||
| Legal settlement reversal | - | - | (46 | - | (2,279 | - | |||||||||
| Credit agreement / lender required consulting | - | 538 | - | 2,390 | |||||||||||
| Broken financing and restructuring fees | - | 347 | - | 7,008 | |||||||||||
| Professional and consulting fees | - | 158 | - | 580 | |||||||||||
| Fleet optimization | - | 148 | - | 857 | |||||||||||
| Asset impairment charges | - | - | - | 28,000 | |||||||||||
| Change of control | - | - | - | 14,589 | |||||||||||
| Accelerated depreciation | - | - | - | 1,813 | |||||||||||
| Canada distribution center closure | - | - | - | 781 | |||||||||||
| Aggregate impact of non-GAAP adjustments | 340 | 6,004 | 3,478 | 64,919 | |||||||||||
| Income tax effect(1) | - | - | - | - | |||||||||||
| Net impact of non-GAAP adjustments | 340 | 6,004 | 3,478 | 64,919 | |||||||||||
| Adjusted net income (loss) | - | (3,980 | - | - | 26,084 | - | (40,230 | - | - | 15,090 | |||||
| GAAP net income (loss) per common share(2) | - | (0.19 | - | - | 1.57 | - | (1.99 | - | - | (3.91 | - | ||||
| Adjusted net income (loss) per common share(2) | - | (0.18 | - | - | 2.04 | - | (1.83 | - | - | 1.18 | |||||
(1) The tax effects of the non-GAAP items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides, adjusted for the impact of any valuation allowance.
(2) In connection with the completion of the rights offering on February 6, 2025, the Company's weighted average common shares outstanding and basic and diluted loss per share were retroactively adjusted for all prior periods presented by a factor of 1.002.
| THE CHILDREN'S PLACE, INC. RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP (In thousands) (Unaudited) | |||||||||||||||
| Third Quarter Ended | Year-to-Date Ended | ||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||
| Operating income (loss) | - | 3,669 | - | 29,258 | - | (16,342 | - | - | (20,506 | - | |||||
| Non-GAAP adjustments: | |||||||||||||||
| Restructuring costs | 340 | 4,813 | 2,485 | 11,180 | |||||||||||
| Legal settlement reversal | - | - | (46 | - | (2,279 | - | |||||||||
| Credit agreement / lender required consulting | - | 538 | - | 2,390 | |||||||||||
| Broken financing and restructuring fees | - | 347 | - | 7,008 | |||||||||||
| Professional and consulting fees | - | 158 | - | 580 | |||||||||||
| Fleet optimization | - | 148 | - | 857 | |||||||||||
| Asset impairment charges | - | - | - | 28,000 | |||||||||||
| Change of control | - | - | - | 14,589 | |||||||||||
| Accelerated depreciation | - | - | - | 1,813 | |||||||||||
| Canada distribution center closure | - | - | - | 781 | |||||||||||
| Aggregate impact of non-GAAP adjustments | 340 | 6,004 | 2,439 | 64,919 | |||||||||||
| Adjusted operating income (loss) | - | 4,009 | - | 35,262 | - | (13,903 | - | - | 44,413 | ||||||
| THE CHILDREN'S PLACE, INC. RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP (In thousands) (Unaudited) | |||||||||||||||
| Third Quarter Ended | Year-to-Date Ended | ||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||
| Gross profit | - | 112,304 | - | 138,341 | - | 284,359 | - | 342,876 | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Change of control | - | - | - | 905 | |||||||||||
| Aggregate impact of non-GAAP adjustments | - | - | - | 905 | |||||||||||
| Adjusted gross profit | - | 112,304 | - | 138,341 | - | 284,359 | - | 343,781 | |||||||
| Third Quarter Ended | Year-to-Date Ended | ||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||
| Selling, general and administrative expenses | - | 101,301 | - | 99,817 | - | 277,567 | - | 304,976 | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Restructuring costs | (340 | - | (4,813 | - | (2,485 | - | (11,180 | - | |||||||
| Legal settlement reversal | - | - | 46 | 2,279 | |||||||||||
| Credit agreement / lender required consulting | - | (538 | - | - | (2,390 | - | |||||||||
| Broken financing and restructuring fees | - | (347 | - | - | (7,008 | - | |||||||||
| Professional and consulting fees | - | (158 | - | - | (580 | - | |||||||||
| Fleet optimization | - | (148 | - | - | (857 | - | |||||||||
| Change of control | - | - | - | (13,684 | - | ||||||||||
| Canada distribution center closure | - | - | - | (781 | - | ||||||||||
| Aggregate impact of non-GAAP adjustments | (340 | - | (6,004 | - | (2,439 | - | (34,201 | - | |||||||
| Adjusted selling, general and administrative expenses | - | 100,961 | - | 93,813 | - | 275,128 | - | 270,775 | |||||||
| THE CHILDREN'S PLACE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||||||||||
| November 1, 2025 | February 1 2025* | November 2, 2024 | |||||||||
| Assets: | |||||||||||
| Cash and cash equivalents | - | 7,253 | - | 5,347 | - | 5,749 | |||||
| Accounts receivable | 43,433 | 42,701 | 62,214 | ||||||||
| Inventories | 390,330 | 399,602 | 491,619 | ||||||||
| Prepaid expenses and other current assets | 49,178 | 20,354 | 43,109 | ||||||||
| Total current assets | 490,194 | 468,004 | 602,691 | ||||||||
| Property and equipment, net | 92,230 | 97,487 | 105,486 | ||||||||
| Right-of-use assets | 159,785 | 161,595 | 159,374 | ||||||||
| Tradenames, net | 13,000 | 13,000 | 13,000 | ||||||||
| Other assets, net | 7,300 | 7,466 | 8,242 | ||||||||
| Total assets | - | 762,509 | - | 747,552 | - | 888,793 | |||||
| Liabilities and Stockholders' Deficit: | |||||||||||
| Revolving loan | - | 297,214 | - | 245,659 | - | 362,375 | |||||
| Accounts payable | 86,151 | 126,716 | 125,912 | ||||||||
| Current portion of operating lease liabilities | 56,253 | 67,407 | 65,151 | ||||||||
| Accrued expenses and other current liabilities | 93,059 | 78,336 | 95,555 | ||||||||
| Total current liabilities | 532,677 | 518,118 | 648,993 | ||||||||
| Related party long-term debt | 107,377 | 165,974 | 165,664 | ||||||||
| Long-term portion of operating lease liabilities | 116,854 | 107,287 | 108,390 | ||||||||
| Other long-term liabilities | 14,212 | 15,584 | 15,320 | ||||||||
| Total liabilities | 771,120 | 806,963 | 938,367 | ||||||||
| Stockholders' deficit | (8,611 | - | (59,411 | - | (49,574 | - | |||||
| Total liabilities and stockholders' deficit | - | 762,509 | - | 747,552 | - | 888,793 | |||||
* Derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended February 1, 2025.
| THE CHILDREN'S PLACE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
| Year-to-Date Ended | |||||||
| November 1, 2025 | November 2, 2024 | ||||||
| Net loss | - | (43,708 | - | - | (49,829 | - | |
| Non-cash adjustments | 84,351 | 130,448 | |||||
| Working capital | (107,837 | - | (319,535 | - | |||
| Net cash used in operating activities | (67,194 | - | (238,916 | - | |||
| Net cash used in investing activities | (14,489 | - | (15,924 | - | |||
| Net cash provided by financing activities | 80,551 | 248,040 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 3,038 | (1,090 | - | ||||
| Net increase (decrease) in cash and cash equivalents | 1,906 | (7,890 | - | ||||
| Cash and cash equivalents, beginning of period | 5,347 | 13,639 | |||||
| Cash and cash equivalents, end of period | - | 7,253 | - | 5,749 | |||
