DENVER and VANCOUVER, British Columbia, Aug. 29, 2022 (GLOBE NEWSWIRE) — SPOTLITE360 IOT SOLUTIONS, INC. (“SpotLite360” or the “Company”) (CSE: LITE) (OTC: SPLTF) (Frankfurt: 87A) is pleased to announce that it has released financial and operational results for the second quarter of 2022. A complete set of the June 30, 2022 Consolidated Financial Statements and Management’s Discussion & Analysis (MD&A) are filed on SEDAR (www.sedar.com). All results are expressed in Canadian dollars unless otherwise specified.
SpotLite360 was listed on the Canadian Security Exchange (CSE) in June of 2021 and has since focused on a strategy of growth through organic sales and strategic acquisitions. The Company’s portfolio of solutions has continued to evolve with our customer’s needs and the addition of our acquisitions’ expertise, technologies, engineering, and product offerings. Throughout our first-year start-up, SpotLite360 has steadily grown quarterly revenues and adjusted EBITDA. The vision of creating a supply chain tracing, tracking, monitoring, and visibility SaaS platform for enterprise scale has proven to add value to our client’s operations. SpotLite360 is pioneering new solutions and disrupting traditional outdated supply chain practices.
SpotLite360 posted a significant increase in revenue for the second three months of fiscal 2022 with total revenue of C$8,705,783 as compared to Q1 2022 revenue of C$944,000 and C$(NIL) for Q2 of the prior year 2021. The company’s first cash flow positive quarter with adjusted EBITDA of C$211,137 as compared to a near break-even cash flow Q1 2022. With continued investment in operations and delivery of enterprise scalable solutions, the company recognized a Q2 2022 loss of C($522,671) or $(0.01) per share. Most expenses are related to salaries, amortization, operating expenses and share based compensation.
On a six (6) month basis of fiscal 2022 the Company recognized total revenue of C$9,699,986 as compared to C$(NIL) for the first six (6) months of 2021 adjusted EBITDA for the first six (6) months 2022 was a positive cash flow of C$201,654. As compared to the first six (6) months of 2021 adjusted EBITDA loss C$(920,325).
James Greenwell, President and CEO commented, “We are very excited to share these results and prove our strategy of driving supply chain data and proof to consumers. SpotLite360 is creating an automated, smart, connected supply chain ecosystem. As we stated with our Q1 2022 earning release, at that time the Company had a backlog of contracted business of over C$10 million and anticipated a strong 2022 Q2. While we expect challenges and some market headwinds in the second half of 2022, our contracted backlog of business has grown to total over C$13 million. Our pipeline of opportunities also continues to grow for 2023, and our recent acquisitions are proving to be accretive. Year-to-date positive cash flow – adjusted EBITDA with multiple state expansions and product innovations will position SpotLite360’s future growth.”
Operational and Financial Highlights for 2022, include:
+ Q2 2022 revenue of $8,705,783 versus Q1 2022 revenue of $0.944 million. Greater than nine times revenue increase quarter over quarter while net loss of Q2 2022 improved to $(0.523) million or $(0.01)/share from Q1 2022 net loss of $(0.548) million or $(0.01)/share.
+ Revenue for the first six months of fiscal year 2022 totaled $9,699,986 versus $(NIL) for the first six months of fiscal 2021.
+ Q2 adjusted EBITDA improved from a Q1 2022 loss of $(0.009) to a Q2 2022 positive $0.211 million. For the first six months of 2022 adjusted EBITDA was a positive $201,654 as compared to loss $(920,325) for first six months of 2021
+ With visibility to a decrease in first year expenses related to CSE listing costs, our consulting costs are more closely managed.
+ Backlog value of executed contracts entering Q3 2022 is over $13 million with project implementations underway. As outlined in our April 7, 2022 press release, expansion of office openings has begun with operations now in Arizona, Oklahoma, and Colorado. Two more offices are expected to open in the second half of 2022. Each office is staffed with local engineering expertise.
+ Marketing efforts include updates to the Company’s website and marketing materials with initiatives underway for a stronger social media presence. Increased sales activities have led to greater value of total proposed contracts, including new product and service offerings engineered into future implementations. Several new project announcements are expected in coming months.
+ While some markets and strategic relationships have appeared to require long lead-times, the maturing of these opportunities continues. The Company is on the leading edge of engineering design, several new initiatives announcements are anticipated in the coming quarters.
+ Several merger and acquisition targets have been added to the pipeline. While negotiations are complex and ongoing, the strategy to add product capabilities with additional customers and cross selling products and services is anticipated.
The vision of building an enterprise scalable SaaS based technology company targeting the supply chain remains a high priority. Customer implementations are leveraging SpotLite360’s engineering and solutions to create visibility into mission critical supply chain data. Leveraging IOT, sensors, the cloud, software, and blockchain to make real time and near real time supply chain decisions is invaluable. Regulatory demands, marketplace disruptions, consumer demand for sustainability and Environmental, Social and Governance (ESG) compliance are all forcing the disruption of traditional supply chain practices. Spotlite360 is creating an automated, smart, connected supply chain environment from any product’s origin to the consumer. Future emphasis will be focused on the consumer visibility to supply chain proof with historical data.