Toronto, Ontario–(Newsfile Corp. – May 28, 2024) – Eddy Smart Home Solutions Ltd. (TSXV: EDY) (“Eddy” or the “Company”) is pleased to announce its financial results for the three months ended March 31, 2024.
Highlights for Q1 2024
More in-building devices
Eddy has grown the number of in-building devices by 50% from 55,321 units as of March 31, 2023 to 83,416 units as of March 31, 2024 (93,578 units as of May 27, 2004). This significant increase is expected to drive further revenue growth and highlights the growing market acceptance of Eddy's technology.
cost reduction
Eddy significantly reduced its general and administrative (G&A) expenses from $1,946,287 in the first quarter of 2023 to $700,849 in the first quarter of 2024. Cost of sales was also reduced from $359,767 to $138,810. These reductions highlight the company's operational efficiency and commitment to cost control.
Extinguishment of debt
Through the private placement and existing rights offering, Eddie will repay $6,361,499 in debt as of March 31, 2024. “Eddie has reached an inflection point. As evidenced based on the reductions in our quarterly report, we have streamlined our SG&A expenses and this private placement will enable us to repay debt and achieve a clean balance sheet and a strong pipeline for future growth,” said CEO Mark Silver.
Improved financial performance
Eddy significantly reduced its net loss to ($472,818) in Q1 2024, a significant improvement from its net loss of ($2,052,292) in Q1 2023. This reduction of $1,579,474 reflects increased revenue, improved operational efficiencies and reduced expenses. The average monthly net loss in Q1 2024 was ($157,606), a decrease compared to ($684,097) in Q1 2023.
Strengthening cash flow
Cash flow used in operating activities improved to ($801,909) in the first quarter of 2024 compared to ($1,943,536) in the first quarter of 2023, representing an improvement of $1,141,627 due to a lower net loss and improved working capital management. Cash flow provided by operating activities in the fourth quarter of 2023 was $468,077.
Operating cash flow for the first quarter was negative compared to the fourth quarter of 2023. This was the result of an increase in accounts receivable of $756,387 and a decrease in accounts payable of $722,339, the latter of which included a negotiated settlement of approximately $344,000.
Revenue
Revenues for the three months ended March 31, 2024 increased $98,946 to $1,041,310 compared to $942,364 reported for the three months ended March 31, 2023.
Basic and diluted loss per share
Basic and diluted loss per share will improve from ($0.03) in the first quarter of 2023 to ($0.01) in the first quarter of 2024, reflecting the company's progress toward financial stability.
Market Driving Forces
Eddy's leak detection platform currently manages 83,416 in-building devices, up 51% from the 55,321 managed as of March 31, 2023. This increase confirms the growing market acceptance of Eddy's leak prevention services.
Subsequent events
On May 1, 2024, Eddy launched a non-brokered private placement to raise $8 million. The offering, available to all existing stockholders, includes 5,333,333 combined common shares at $1.50 per share following a 100-for-1 stock combination. Proceeds will be used to repay existing credit facilities, extinguish all secured and unsecured indebtedness, and provide general working capital.
Eddie is also focusing on succession planning to ensure business continuity. Following Saj Khan's retirement, the COO role will be filled by the current EVP of Field Operations. Mark Silver, who assumed the CEO role following Travis Allan's retirement, will remain as Chairman of the Board and will transition his CEO responsibilities to President, Corey Silver, over the next 12 months.
About Eddie
Eddy is North America's leading provider and developer of smart water meter products and monitoring services for residential and commercial properties. Through advanced sensor devices and behavioral learning software, Eddy's solutions help property owners protect, control and conserve water usage. For more information, visit www.eddysolutions.com.
For more information about the Company's financial performance, please see the Company's consolidated financial statements and management's discussion and analysis for the periods ended December 31, 2023 and December 31, 2022, which are available under Eddy's SEDAR profile at www.sedarplus.ca.
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 projected 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 the heading “Risks and Uncertainties”, available at www.sedarplus.ca. 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
Chairman of the Board and Chief Executive Officer
Phone: 416.221.8998
Email: ir@eddysolutions.com
This news release is not intended for distribution in the United States or to any U.S. news agency.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/210778
