Xtract One Releases Fourth Quarter and Fiscal 2023 Annual Results

TORONTO, Oct. 19, 2023 (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, is pleased to announce its annual results for the year ended July 31, 2023. All information is in Canadian dollars unless otherwise indicated.

The following press release should be read in conjunction with the Company’s Annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s Management’s Discussion and Analysis for the years ended July 31, 2023 and 2022, which can be found under the Company’s profile on SEDAR+ at www.sedarplus.ca.

“We surpassed several milestones this year including posting a record year for revenue, which increased by 365% from last year for the Platform operating segment,” stated Peter Evans, Chief Executive Officer of Xtract One. “We continue to experience incredible demand for our solutions across several market verticals which has been fueling the 344% growth in total contract value of new bookings for the year. I am excited to continue this growth trajectory into fiscal 2024 while delivering exceptional experiences and safer environments for our customers and their patrons.”

Company highlights for the year ended July 31, 2023

The following is a summary of the key business highlights for the year ended July 31, 2023:

• Total contract value of new bookings¹ for the Platform operating segment was $15.0 million for the year ended July 31, 2023, as compared to $3.4 million for the year ended July 31, 2022, representing an increase of 344%;
• The Platform operating segment’s contractual backlog was $4.1 million as of July 31, 2023, as compared to $1.3 million as of July 31, 2022, representing an increase of 213%. The Platform operating segment’s contractual backlog excludes an additional $10.4 million of agreements pending installation¹ which is 447% more than the balance for the prior year;
• Accelerated topline growth for the Platform operating segment with approximately $3.6 million in revenue for the year ended July 31, 2023 as compared to $0.8 million for the year ended July 31, 2023, representing an increase of 365%;
• Completed a strategic investment of $13.4 million from Madison Square Garden Sports Corp. to fund continued innovation and support accelerated growth in revenue;
• Entered into a commercial agreement with Sphere Entertainment Co. (formerly Madison Square Garden Entertainment Corp.), which allows Sphere Entertainment Co. and its affiliate Madison Square Garden Entertainment Corp. (“MSG Entertainment”) (formerly MSGE Spinco, Inc.) to deploy SmartGateway solutions across the Sphere in Las Vegas, which opened in September 2023, and MSG Entertainment’s portfolio of iconic venues, including New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre;
• Announced a new strategic partnership with the Oak View Group (“OVG”) which has introduced a new patron screening technology to multiple properties, enabling OVG owned and operated properties to utilize Xtract One’s SmartGateway system to enhance the customer experience and safety;
• As part of this strategic partnership, secured contracts with OVG to protect entrances at multiple venues including Angel of the Winds Arena, Total Mortgage Arena, Acrisure Arena, Simmons Bank Liberty Stadium, Cross Insurance Center, and Budweiser Gardens;
• Secured contracts with several sport and entertainment venues including SAP Center, the home of the NHL’s San Jose Sharks, and Tech CU Arena which is the home of the AHL’s San Jose Barracuda;
• Continued expansion into new market verticals such as schools, healthcare facilities and public sector buildings with deployments with Lakewood School District, Sentara Health, Hyundai Transys, and City of Phoenix Municipal Courts;
• Subsequent to the year ended July 31, 2023, chosen by the U.S. Department of Veteran Affairs Medical Centers in Virgina to create a more efficient healthcare environment while ensuring the safety of patients and staff;
• Subsequent to the year ended July 31, 2023, partnered with the American Association of Professional Baseball as the exclusive preferred supplier to enhance venue security and guest experiences at games; and
• Subsequent to the year ended July 31, 2023, the Company announced its next phase of growth through a selective international expansion with three multinational companies, one of which is a global entertainment organization with a three year contract totaling over $5.1 million USD.
  

Fiscal 2023 Annual Financial Highlights

• Total revenue was $4.1 million for the year ended July 31, 2023 as compared to $3.6 million for the year ended July 31, 2022.
• Total contractual backlog of sales commitments not yet recognized as revenue was $4.5 million as of July 31, 2023, as compared to $2.2 million as at July 31, 2022.
• Loss and comprehensive loss was $16.3 million for the year ended July 31, 2023 compared to $39.7 million for the year ended July 31, 2022. The decrease in loss and comprehensive loss for the year pertains to a non-cash goodwill impairment during the prior fiscal year.
• Basic and diluted loss per share was $0.09 for the year ended July 31, 2023 as compared to $0.25 for the year ended July 31, 2022.
  

Fourth Quarter 2023 Financial Highlights

• Total revenue was $1.8 million for the three month period ended July 31, 2023 as compared to $0.8 million for the three month period ended July 31, 2022, representing an increase of $1.0 million or 123%.
• Revenue of $1.6 million was attributable to the Platform operating segment for the three months ended July 31, 2023, in comparison with $0.3 million for the same three month period in 2022, representing an increase of $1.3 million or 516%
• The Company recognized a total adjusted loss and comprehensive loss² of $3.3 million for the three month period ended July 31, 2023 as compared to $5.6 million for the same period in 2022, representing a decrease of $2.3 million or 40%.
  

Audited Statements of Loss and Comprehensive Loss for the Years Ended July 31, 2023, and 2022

The following table is extracted from the Company’s audited financial statements and presented in Canadian dollars to demonstrate the Statements of Loss and Comprehensive loss for the years ended July 31, 2023, and 2022:

Audited Statements of Financial Position as at July 31, 2023 and 2022

The following table is extracted from the Company’s audited financial statements and presented in Canadian dollars to demonstrate the Company’s financial position as at the years ended July 31, 2023, and 2022:

Audited Statements of Cash Flows for the Years Ended July 31, 2023 and 2022

The following table is extracted from the Company’s audited financial statements and presented in Canadian dollars to demonstrate the Company’s cash flows for the years ended July 31, 2023, and 2022: