Financial Highlights for Q1 F2022 (quarter ending
Revenue of
Adjusted EBITDA loss of
Net loss of
Cash of
Subsequent Events
On track to ship first 20 Next Generation SmartGATE Platforms in Q2 F2022
First NextGen SmartGATE platform installed and performing above initial expectations
'The supply chain issues and NextGen SmartGATE shipping delays that we experienced in Q1 have significantly improved, and we expect to deliver the initial 20 units in Q2 F2022,' said
Overview of Q1 F2022 Financials
During Q1 F2022 the Company continued to invest in its sales team, inventory, and expand production and field operations capacity in readiness for ramping Gen3 SmartGATE demand. These investments were highlighted in the Company's
The Company's channel sales team now consists of 3 individuals experienced in growing reseller and ESCO relationships and who understand the value propositions that Insights and SmartGATE solutions bring to commercial real estate. Target markets and reseller channels continue to respond positively to Legend's solutions and combined opportunities. As of today the Company is engaged with over 50 organizations interested in becoming Legend selling partners. During Q1 F2022 the channel sales team commenced development of partner support tools for the partner portal including marketing support, sales support, technical support, and deal registration. The partner portal will be launched in
During Q1 F2022 the Company completed testing of the Gen3 SmartGATE system and began an aggressive build initiative to fill backlog sales orders. The Company continued to work through component inventory supply chain challenges but began to secure additional stock to commence the assembly of 20 plus units. Unfortunately, due to the delivery timing of components revenue recognized during the quarter was lower than what was anticipated.
With the Gen3 SmartGATE system reaching commercial production, during Q1 F2022 the engineering team focused on remote commands functionality. This functionality allows the Company to communicate remotely with Gen3 SmartGATE field units and is the foundation of a 'remote upgrade' feature. In addition, the engineering department worked on cost reduction strategies including identifying alternative suppliers and design refinements.
Revenue for Q1 F2022 was
Gross margin in Q1 F2022 was 22%, compared with 26% in Q1 F2021. The decrease in gross margin experienced during Q1 F2022 was due primarily to higher cost of goods sold driven by supply chain challenges, COVID-19 supplier surcharges, and component cost increases.
The Company's operating expenses for Q1 F2022 were
Adjusted EBITDA for Q1 F2022 was negative
Net loss for Q1 F2022 was
About
Contact:
Tel: 1 647 503 1054
Email: sean@sophiccapital.com
Forward-Looking Statements
This Press Release may contain statements which constitute 'forward-looking information', including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words 'may', 'would', 'could', 'will', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect' and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results to not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.
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