this press release.
In respect of the forward-looking information, AgJunction has provided such information in reliance on certain assumptions that it believes are reasonable at this time, including, but not limited to, the sufficiency of budgeted capital expenditures in carrying out planned activities; impact (and duration thereof) that the COVID-19 pandemic will have on the Company's business, including on demand for the Company's products; effects of regulation by governmental agencies; that AgJunction's future results of operations will be consistent with management expectations in relation thereto; availability of key supplies, components, services, networks and developments; the impact of increasing competition; conditions in general economic, agricultural and financial markets; demand for the Company's products; the continuity of existing business relationships; that the arrangement will be completed on the terms contemplated by the arrangement agreement; the ability of the parties to receive, in a timely manner and on satisfactory terms, the necessary regulatory, court, shareholder, stock exchange and other third party approvals for the arrangement; the ability of the parties to satisfy, in a timely manner, the other conditions to the closing of the arrangement; and other expectations and assumptions concerning the arrangement.
Since forward-looking information addresses future events and conditions, such information by its very nature involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which AgJunction operates, the COVID-19 pandemic and its impacts on the Company including our products; our supply chain and our ability to receive products on a timely basis from our global suppliers; a prolonged economic downturn from the negative effects of COVID-19 pandemic may result in reduction of revenue, cashflows and negatively affect our profitability; competition; inability to introduce new technology and new products in a timely manner; legal claims for the infringement of intellectual property and other claims; negative conditions in general economic, agricultural and financial markets; reduced demand for the Company's products; and completion of the arrangement is subject to a number of conditions which are typical for transactions of this nature, certain of which are outside the control of AgJunction, failure to satisfy any of these conditions, the emergence of a superior proposal or the failure to obtain approval of AgJunction's shareholders may result in the risk that the arrangement agreement is terminated. Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on other factors that could affect the Company's operations or financial results, are included in reports of AgJunction on file with applicable securities regulatory authorities, including but not limited to, AgJunction's Annual Information Form which may be accessed on its SEDAR profile at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof and AgJunction undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Contact:
Media
press@agjunction.com
Investor Relations
Gateway Investor Relations
Cody Slach or Cody Cree
1-949-574-3860
AJX@gatewayir.com
AgJunction Inc.
Consolidated Statements of Financial
Position
(Expressed in U.S. thousand dollars)
September 30, December 31,
2021 2020
(unaudited)
--------------------------------------- ---------------- -----------------
Assets
Current assets:
Cash and cash equivalents $ 6,184 $ 6,773
Accounts receivable, net 1,569 2,051
Current portion of notes
receivable, net 820 320
Inventories 7,904 8,694
Contract assets, net - 7
Prepaid expenses and deposits 502 781
--------------------------------------- ------ ------- ------ ------
Total current assets 16,979 18,626
Notes receivable, less current
portion, net 1,300 1,002
Property, plant and equipment, net 901 950
Right-of-use assets, net 587 661
Intangible assets, net 9,540 9,957
Goodwill 143 143
--------------------------------------- ------ ------- ------ ------
Total assets $ 29,450 $ 31,339
--------------------------------------- ------ ------- ------ ------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $ 3,341 $ 2,901
Provisions 54 352
Current portion of lease liability 372 368
Current portion of deferred
revenue 3,177 1,288
--------------------------------------- ------ ------- ------ ------
Total current liabilities 6,944 4,909
Deferred revenue, less current
portion 3,630 2,425
Lease liability, net of current
portion 252 334
Total liabilities 10,826 7,668
--------------------------------------- ------ ------- ------ ------
Shareholders' equity:
Share capital 23,495 23,495
Equity reserve 5,340 5,103
Accumulated deficit (10,211) (4,927)
Total shareholders' equity 18,624 23,671
--------------------------------------- ------ ------- ------ ------
Total liabilities and shareholders'
equity $ 29,450 $ 31,339
--------------------------------------- ------ ------- ------ ------
AgJunction Inc.
Consolidated Statements of Profit or
Loss
Three and nine months ended September 30, 2021 and
2020
(Unaudited -expressed in U.S. thousand
dollars)
Three months ended Nine months ended
September 30, September 30,
----------------- --------------------------------------- --------------------------------------
2021 2020 2021 2020
------- ------ ------ ------ ------ ------ ------ ------
Revenue $ 3,744 $ 3,821 $ 9,556 $ 13,623
Cost of sales 1,838 1,922 5,148 6,925
-------------------------- ------ ------ ------ ------ ------ ------ ------
Gross profit 1,906 1,899 4,408 6,698
50.9% 49.7% 46.1% 49.2%
Expenses:
Research and development 1,146 1,250 3,684 3,414
Sales and marketing 572 503 1,664 1,645
General and
administrative 2,507 1,360 5,806 4,719
-------------------------- ------ ------ ------ ------ ------ ------ ------
Total operating expenses 4,225 3,113 11,154 9,778
Operating loss (2,319) (1,214) (6,746) (3,080)
Interest and other income (1) (11) (8) (89)
Gain on loan forgiveness (1,466) - (1,466) -
Foreign exchange (gain)
loss, net (1) 54 12 86
Total other (income)
expenses (1,468) 43 (1,462) (3)
Income tax
benefit - - - -
----------------- ------- ------ ------ ------ ------ ------ ------ ------
Net loss $ (851) $ (1,257) $ (5,284) $ (3,077)
----------------- ------- ------ ------ ------ ------ ------ ------ ------
Loss per share $ (0.01) $ (0.01) $ (0.04) $ (0.03)
----------------- ------- ------ ------ ------ ------ ------ ------ ------
AgJunction Inc.
Condensed Consolidated Statements of
Cash Flows
Three months ended September 30, 2021
and 2020
(Unaudited - expressed in U.S. thousand
dollars)
2021 2020
--------------------------------------- ------- ------ ------ ------
Cash flows used in operating
activities:
Net loss (5,284) $ (3,077)
Items not involving cash:
Depreciation 508 540