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.
Q1 2024 Highlights
Growth in In-Building Devices
Eddy has increased the number of in-building devices by 50%, from 55,321 as of March 31, 2023, to 83,416 as of March 31, 2024 (93,578 at May 27, 2004). This significant growth is expected to drive additional revenue and underscores the increasing market acceptance of Eddy's technology.
Reduced Expenses
Eddy has significantly reduced its general and administrative (G&A) expenses from $1,946,287 in Q1 2023 to $700,849 in Q1 2024. Selling costs have also been reduced from $359,767 to $138,810. These reductions highlight the company's commitment to operational efficiency and cost management.
Debt Extinguishment
Through a private placement and an existing shareholder rights offering, Eddy is set to extinguish current debt amounting to $6,361,499 as of March 31, 2024. "Eddy has reached an inflection point. We have rationalized SG&A spend which is evident based on the reduction in our quarterly reports and with this private placement we will extinguish our debt resulting in a clean balance sheet and strong pipeline for the future growth". said Mark Silver, CEO
Improved Financial Performance
Eddy has significantly reduced its net loss to ($472,818) for Q1 2024, a substantial improvement from the net loss of ($2,052,292) in Q1 2023. This $1,579,474 reduction reflects higher revenues, enhanced operational efficiencies, and reduced expenses. The average net loss per month for Q1 2024 was ($157,606), compared to ($684,097) for Q1 2023.
Enhanced Cash Flow
Cash flow used in operating activities improved to ($801,909) for Q1 2024, compared to ($1,943,536) in Q1 2023, marking a $1,141,627 improvement due to a lower net loss, and better working capital management. In Q4 2023 cash flow from operations was $468,077.
Cash flow from operations in Q1 is negative relative to Q4-2023 which is the result of a $756,387 increase in accounts receivable and a $722,339 decrease in accounts payable, with the latter including negotiated settlements of approximately $344,000.
Revenue
For the three months ended March 31, 2024, revenue increased by $98,946 to $1,041,310 as 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 improved to ($0.01) in Q1 2024 from ($0.03) in Q1 2023, reflecting the company's progress towards financial stability.
Market Traction
Eddy's leak detection platform now manages 83,416 in-building devices, a 51% increase from the 55,321 devices managed as of March 31, 2023. This growth underscores the increasing market acceptance of Eddy's leak protection services.
Subsequent Event
On May 1, 2024, Eddy initiated a non-brokered private placement to raise $8,000,000. The offering, available to all existing shareholders, includes 5,333,333 post-consolidation common shares at $1.50 per share, following a 100-for-1 share consolidation. Proceeds will be used to repay existing credit facilities, eliminate all secured and unsecured debt, and provide general working capital.
Eddy is also focusing on succession planning to ensure business continuity. Following Saj Khan's departure, the COO role will be filled by the current EVP of Field Operations. Mark Silver, who stepped in as CEO following Travis Allan's departure, will transition CEO responsibilities to Cory Silver, President, over the next twelve months while remaining as Chairman of the Board.
About Eddy
Eddy is a leading North American provider and developer of smart water metering products and monitoring services for residential and commercial properties. Eddy's solutions help property owners protect, control, and conserve water usage through advanced sensing devices and behavioral learning software. For more information, visit .
For further details on the company's financial performance, please review our consolidated financial statements and management's discussion and analysis for the years ended December 31, 2023, and 2022, available on Eddy's SEDAR profile at .
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 anticipated 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 "Risks And Uncertainties," available at . Eddy undertakes no obligation to update these statements, except as required by law.
Neither 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
Executive Chairman and Chief Executive Officer
Tel: 416.221.8998
Email: ir@eddysolutions.com
This News Release is Not for Dissemination in the United States or for Distribution to U.S. Wire Services.