Toronto, Ontario–(Newsfile Corp. – August 27, 2024) – Eddy Smart Home Solutions Ltd. (TSXV: EDY) (“Eddy” or the “Company”) is pleased to announce its financial results for the three and six months ended June 30, 2024.
Highlights of Q2 2024
Message from our CEO
“This was a pivotal quarter. As part of the private placement, the $1.1 million credit facility was converted to common stock. With the repayment of the $5.6 million working capital facility, the balance sheet was strengthened and our financial flexibility increased with over $785,000 in annual interest savings. With our cash flow from operations improving from ($611,523) in Q2 2023 to ($80,883) in Q2 2024, we are trending in the right direction and continue to add equipment, which translates into additional recurring revenue. We also have a significant backlog of equipment that is under contract but not yet installed.”
Growth in in-building devices
Eddy has increased the number of devices in buildings by 60%, from 60,707 on June 30, 2023 to 97,277 on June 30, 2024. This significant growth is expected to generate additional revenue and underscores the increasing market adoption of Eddy’s technology and significant market momentum.
Improved cash flow
Cash flow from operating activities improved by $530,640 to ($80,883) in the second quarter of 2024 compared to ($611,523) in the second quarter of 2023. For the six months ended June 30, 2024, cash flow from operating activities improved by $1,672,269 to ($882,791) compared to ($2,555,060) in the comparable period in 2023, due to higher revenues, lower expenses and improvements in working capital management.
Reduced expenses
Eddy has significantly reduced its general and administrative (G&A) expenses from $1,904,324 in Q2 2023 to $1,291,504 in Q2 2024. For the six months ended June 30, 2024, G&A expenses were reduced from $3,850,611 in 2023 to $1,992,354 for the current period to date (an improvement of $1,858,257). These reductions underscore the Company’s commitment to operational efficiency and cost management.
Closed private placement
On June 28, 2024, Eddy completed a non-brokered private placement, which the Company had previously announced in May 2024, through the issuance of 5,333,333 Shares (at a price of $1.50 per share after Consolidation) for gross proceeds of $8,000,000 (the “Offering”).
Share consolidation
Prior to the completion of the Offering, the Company consolidated its common shares on a basis of one post-consolidation common share for every 100 pre-consolidation common shares.
Restructuring and repayment of the credit facility
The private placement included the conversion of the credit facility in the amount of $1,163,880 into 775,920 common shares (at a price of $1.50 per share after consolidation).
Upon expiration, on July 15, 2024, the Company repaid the entire amount owed under the Working Capital Facility of $5,589,671, with the balance of the proceeds from the Private Placement to be used for general working capital purposes.
Appointment as Chief Operating Officer
On August 8, 2024, the company appointed Adam Bartman as its new Chief Operating Officer.
Mr. Bartman has been instrumental in the company’s growth and innovation as the company’s EVP of Operations. With over a decade of experience in the plumbing and engineering industries, Adam Bartman has a deep understanding of the challenges and opportunities in this sector. His leadership and vision have been instrumental in establishing Eddy Solutions as a leading provider of intelligent water management technology. As COO, Adam will oversee the company’s day-to-day operations, focusing on improving operational efficiency, driving strategic initiatives and fostering a culture of continuous improvement.
Improved financial performance
Eddy has significantly reduced its net loss for the second quarter of 2024 to ($1,313,214), a significant improvement from the net loss of ($2,129,532) for the second quarter of 2023. For the six months ended June 30, 2024, the net loss was ($1,786,033) compared to ($4,181,826) for the comparable period to date, a significant improvement from $2,395,793.
The year-to-date improvement reflects higher revenues, improved operating efficiencies and lower expenses. The average net loss per month was ($218,869) compared to ($696,971) for the comparable period to date.
revenue
For the three months ended June 30, 2024, revenue increased $207,288 to $747,548 compared to $540,260 in the comparable quarter.
For the six months ended June 30, 2024, revenues increased by $306,233 to $1,788,857 compared to $1,482,624 for the comparable period in 2023 (an increase of 20%).
Recurring billing
Billings are the amounts charged to customers for monthly monitoring and equipment rental.
For the three months ended June 30, 2024, recurring billings were $687,757 (2023: $555,509), an increase of $132,248 over the comparable quarter.
For the six months ended June 30, 2024, recurring billings were $1,351,174 (2024: $980,390), an increase of $370,784 over the comparable period in 2023 (an increase of 38%).
Basic and diluted loss per share
Basic and diluted loss per share improved from ($2.68) in the second quarter of 2023 to ($1.47) in the second quarter of 2024.
Basic and diluted loss per share improved to ($2.11) for the six months ended June 30, 2024 from ($5.25) for the comparable period in 2023, reflecting the Company’s progress toward financial stability.
Prior period share amounts have been retrospectively adjusted to reflect the share consolidation, which became effective on June 28, 2024.
About Eddy
Eddy is a leading North American provider and developer of smart water meter products and monitoring services for residential and commercial properties. Eddy’s solutions help property owners and developers protect, control and conserve water usage through advanced sensing devices and behavioral learning software. For more information, visit www.eddysolutions.com.
For further details regarding the Company’s financial performance, please refer to our consolidated financial statements and management’s discussion and analysis for the years ended December 31, 2023 and 2022, which are available on Eddy’s SEDAR profile at www.sedar.com.
Forward-looking statements
This news release contains forward-looking statements within the meaning of applicable securities laws. These statements reflect management’s current expectations and are based on assumptions and estimates that involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ are discussed in the Company’s most recent Management’s Discussion and Analysis under “Risks and Uncertainties” which is available at www.sedar.com. Eddy undertakes no obligation to update these statements, except as required by law.
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.
For further information please contact:
Mark Silver
Executive Chairman and Chief Executive Officer
Phone: 416.221.8998
Email: [email protected]
To view the original version of this press release, please visit https://www.newsfilecorp.com/release/221309.
