Total Backlog Climbs to Record $37.2 Million; 70% Gross Margins; Cash Burn Declines
TORONTO, March 12, 2025 (GLOBE NEWSWIRE) -- Xtract One Technologies Inc. (TSX: XTRA) (OTCQX: XTRAF) (FRA: 0PL) (“Xtract One” or the “Company”) a leading technology-driven threat detection and security solution that prioritizes the patron access experience by leveraging AI, today announced fiscal second quarter results for the three months ended January 31, 2025. All information is in Canadian dollars unless otherwise indicated.
Second Quarter Highlights
Quarterly revenue of $3.4 million for the three months ended January 31, 2025 versus $2.9 million in the prior-year period.
Gross margin of 70% for the second quarter of fiscal 2025 versus 61% in the prior-year period.
Total contract value of new bookings1 was $13.5 million for the three months ending January 31, 2025 – the strongest quarterly results in the Company’s history – as compared to $5.1 million for the same period last year.
Contractual backlog was $16.7 million at the end of the second quarter as compared to $12.3 million in the prior-year period, excluding an additional $20.5 million of agreements pending installation1 versus approximately $10.0 million at the end of the second quarter of fiscal 2024.
“By booking a record $13.5 million of orders, we ended the period with $37.2 million in total backlog – a new level for the Company – strengthening our outlook for the balance of fiscal 2025 and beyond and putting us on track for our best year ever” stated Peter Evans, Chief Executive Officer of Xtract One. “We are very pleased to be experiencing revenue growth despite second quarter results being tempered by deployment timing and a larger than typical percentage of subscription contracts. We are also pleased that we continue to win new contracts in multiple industry verticals and geographies – another strategic step in accelerating market penetration and acceptance, and diversifying the business. At the same time, we are seeing significant interest in our Xtract One Gateway solution. The outlook for the second half of fiscal 2025 remains bright, and we are well positioned on the path to profitability.”
Financial Results for the Three Month Period Ended January 31, 2025
Consolidated revenue was $3.4 million for the three months ended January 31, 2025 as compared to $2.9 million for the same period last year, reflecting new business wins and a greater number of installations. Gross profit was $2.4 million, or a gross profit margin of 70%, in the fiscal 2025 second quarter versus $1.8 million, or a gross profit margin of 61%, in the prior-year period.
Comprehensive loss was $2.1 million for the three month period ended January 31, 2025 as compared to $3.3 million for the same period in fiscal 2024. This reflects higher revenue and gross profit as well as lower research and development expenses.
This press release should be read in conjunction with the Company’s Unaudited Condensed Consolidated Interim Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s Management’s Discussion and Analysis for the three and six month periods ended January 31, 2025 and 2024, which can be found on the Company’s website and under the Company’s profile on SEDAR+ at www.sedarplus.ca.
Conference Call Details
Xtract One will host a conference call to discuss its results tomorrow, March 13, 2025 at 10:00 am EST. Peter Evans, Xtract One CEO and Director, and Karen Hersh, CFO and Corporate Secretary, will provide an overview of the interim financial results along with management’s outlook for the business, followed by a question-and-answer period.
The webcast and presentation will be accessible on the company’s website. The webcast can be accessed here and the telephone number for the conference call is 844-481-3016 (412-317-1881 for international callers).
About Xtract One Technologies
Xtract One Technologies is a leading technology-driven threat detection and security solution leveraging AI to provide seamless and secure patron access control experiences. The Company makes unobtrusive weapons and threat detection systems that are designed to assist facility operators in prioritizing- and delivering improved “Walk-right-In” experiences while enhancing safety. Xtract One's innovative portfolio of AI-powered Gateway solutions excels at allowing facilities to discreetly screen and identify weapons and other threats at points of entry and exit without disrupting the flow of traffic. With solutions built to serve the unique market needs for schools, hospitals, arenas, stadiums, manufacturing, distribution, and other customers, Xtract One is recognized as a market leader delivering the highest security in combination with the best individual experience. For more information, visit www.xtractone.com or connect on Facebook, Twitter, and LinkedIn.
About Threat Detection and Security Solutions
Xtract One solutions, when properly configured, deployed, and utilized, are designed to help enhance safety and reduce threats. Given the wide range of potential threats in today's world, no threat detection system is 100% effective. Xtract One solutions should be utilized as one element in a multilayered approach to physical security.
The Company utilizes specific supplementary financial measures in this earnings release to allow for a better evaluation of the operating performance of the Company’s business and facilitates meaningful comparison of results in the current period with those in prior periods and future periods. Supplementary financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to measures presented by other companies. Supplementary financial measures presented in this earnings release include ‘Agreements pending installation’ and ‘Total contract value of new bookings.’ Agreements pending installation reflects total value of signed contracts awarded to the Company that has not been installed at the customer site. ‘Total contract value of new bookings’ is comprised of all new contracts signed and awarded to the Company, regardless of the performance obligations outstanding as of the end of the reporting period. Total contract value is the aggregate value of sales commitments from customers as at the end of the reporting period without consideration of the Company’s completion of the associated performance obligations outlined in each contract.
CAUTIONARY DISCLAIMER STATEMENT:
This news release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipates”, “expects”, “believes”, and similar expressions or the negative of these words or other comparable terminology. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include but are not limited to the risks detailed from time to time in the continuous disclosure filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law.
No securities exchange or commission has reviewed or accepts responsibility for the adequacy or accuracy of this release.
UnauditedInterim Statements of Loss and Comprehensive Loss for the Three and Six Months Ended January 31, 2025 and 2024
The following table is extracted from the Company’s unaudited condensed consolidated interim financial statements and presented in Canadian dollars to demonstrate the Statements of Loss and Comprehensive loss for the three and six months ended January 31, 2025 and 2024:
Three months ended January 31,
Six months ended January 31,
2025
2024
% Change
2025
2024
% Change
Revenue
$
3,412,189
$
2,920,058
17
%
$
7,040,026
$
6,036,411
17
%
Cost of revenue
1,008,420
1,136,386
(11
%)
2,321,850
2,168,328
7
%
Gross profit
$
2,403,769
$
1,783,672
35
%
$
4,718,176
$
3,868,083
22
%
Operating expenses
Selling and marketing
1,224,575
1,299,727
(6
%)
2,887,734
2,807,384
3
%
General and administration
1,648,688
1,693,019
(3
%)
3,512,880
3,340,835
5
%
Research and development
1,640,018
2,058,606
(20
%)
3,439,629
3,784,797
(9
%)
Loss on inventory write-down
281,429
107,013
163
%
281,429
107,013
163
%
Loss on retirement of assets
21,675
-
0
%
21,675
-
0
%
Total operating expenses
4,816,385
5,158,365
(7
%)
10,143,347
10,040,029
1
%
Loss before undernoted
(2,412,616
)
(3,374,693
)
(29
%)
(5,425,171
)
(6,171,946
)
(12
%)
Other income
Interest and other income
66,671
56,543
18
%
141,590
152,583
(7
%)
Net loss for the period
$
(2,345,945
)
$
(3,318,150
)
(5,283,581
)
(6,019,363
)
(12
%)
Other comprehensive income for the period
Currency translation differences for foreign operations
263,300
-
0
%
546,119
-
0
%
Comprehensive loss for the period
$
(2,082,645
)
$
(3,318,150
)
(37
%)
$
(4,737,462
)
$
(6,019,363
)
(21
%)
Weighted average number of shares
218,423,567
198,495,594
218,410,655
198,463,158
10
%
Basic and diluted loss per share
$
(0.01
)
$
(0.02
)
(50
%)
$
(0.02
)
$
(0.03
)
(33
%)
Unaudited Interim Statements of Financial Position as of January 31, 2025 and July 31, 2024
The following table is extracted from the Company’s unaudited condensed consolidated interim financial statements and presented in Canadian dollars to demonstrate the Company’s financial position as of January 31, 2025 and July 31, 2024:
January 31, 2025
July 31, 2024
Assets
Current assets
Cash and cash equivalents
$
5,428,446
$
8,628,521
Receivables
956,108
3,862,199
Prepaid expenses and deposits
1,307,648
949,012
Current portion of deferred cost of revenue
371,291
371,309
Inventory
4,427,562
3,688,246
12,491,055
17,499,287
Property and equipment
2,408,515
2,135,956
Intangible assets
5,070,629
4,465,755
Non-current portion of deferred cost of revenue
313,184
496,868
Right of use assets
1,007,880
344,304
Total assets
$
21,291,263
$
24,942,170
Liabilities
Current liabilities
Accounts payable and accrued liabilities
$
1,881,009
$
3,991,292
Current portion of deferred revenue
4,868,490
3,443,524
Current portion of lease liability
167,004
190,400
6,916,503
7,625,216
Non-Current liabilities
Non-current portion of deferred revenue
3,534,874
3,155,579
Non-current portion of lease liability
954,890
190,526
$
11,406,267
$
10,971,321
Shareholders' equity
Share capital
$
144,398,090
$
144,372,452
Contributed surplus
16,789,921
16,163,950
Accumulated deficit
(151,849,134
)
(146,565,553
)
Accumulated other comprehensive income
546,119
-
$
9,884,996
$
13,970,849
Total liabilities and shareholders' equity
$
21,291,263
$
24,942,170
Unaudited Interim Statements of Cash Flows for the Six Months Ended January 31, 2025 and 2024
The following table is extracted from the Company’s unaudited condensed consolidated interim financial statements and presented in Canadian dollars to demonstrate the Company’s cash flows for the six month periods ended January 31, 2025 and 2024:
Six months ended January 31,
2025
2024
Cash flow used in operating activities
Loss for the period
$
(5,283,581
)
$
(6,019,363
)
Adjustment for:
Share-based compensation
634,640
445,167
Depreciation
725,154
608,308
Amortization
422,454
402,950
Finance cost
22,916
12,212
Property and equipment disposal
21,675
-
Loss on inventory
281,429
107,013
(3,175,313
)
(4,443,713
)
Changes in non-cash working capital
Receivables
3,009,688
(1,304,098
)
Prepaid expenses and deposits
(352,624
)
400,482
Inventory
(1,329,105
)
(1,838,646
)
Deferred cost of revenue
183,702
74,264
Accounts payable and accrued liabilities
(2,134,232
)
(96,073
)
Deferred revenue
1,597,727
3,178,444
Cash used in operating activities
(2,200,157
)
(4,029,340
)
Cash flow used in investing activities
Purchase of property, plant and equipment
(129,180
)
-
Internally developed intangible assets
(710,154
)
-
Acquisition of right of use asset
(5,028
)
-
Cash used in investing activities
(844,362
)
-
Cash flow used in financing activities
Proceeds on issue of share capital
16,970
84,849
Lease payments
(162,129
)
(190,498
)
Cash used in financing activities
(145,159
)
(105,649
)
Effect of exchange rate changes on cash and cash equivalents
(10,397
)
-
Net decrease in cash and cash equivalents for the period
