Toronto, Ontario--(Newsfile Corp. - November 29, 2023) - Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) ("Tenet" or the "Company"), an innovative analytics service provider and owner and operator of the Cubeler Business Hub, today announced its financial results and operating highlights for the three-month and nine-month periods ended September 30, 2023, and September 30, 2022. The impact of the disruption in the Company's operations in both China and Canada during the second quarter of 2023 continued to take its toll on the Company's revenue during the third quarter. Tenet reported total revenue of $9.2M for the quarter and a net loss of $43.0M. The net loss reported includes $36.4M of non-cash impairment charges attributed to delays in forecasted revenue from the Company's Heartbeat platform in China and its Cubeler platform in Canada. The Company is hopeful that a significant portion of these impairment charges (excluding goodwill) may be reversed in future quarters as the platforms become significant revenue generators for the Company. All amounts expressed in this news release are in Canadian dollars.
Q3 Financial Highlights:
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA for the 3-month period ended September 30, 2023 |
Net loss | ($43,002,953) |
Income taxes (recovery) | ($885,988) |
Finance costs | $447,793 |
Depreciation of property and equipment | $49,805 |
Depreciation of right-of-use assets | $160,029 |
Amortization of intangible assets | $2,433,114 |
Amortization of financing issuance costs | $13,683 |
EBITDA | ($40,784,517) |
Add (less): |
|
Change in fair value of contingent consideration payable | $397,361 |
Change in fair value of debentures conversion rights | $239,907 |
Impairment of goodwill | $23,448,897 |
Impairment of intangible assets | $12,913,500 |
Loss on investment in associate company | $10,091 |
Adjusted EBITDA | ($3,774,761) |
* EBITDA is a non-IFRS financial measure provided to assist readers in determining the Company's ability to generate cash-flows from operations and to cover finance charges. It is also widely used for business valuation purposes. This measure does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
EBITDA equals the results before income taxes, depreciation of property and equipment, depreciation of right-of-use assets, amortization of intangible assets, amortization of financing issuance costs and finance costs, as defined in Note 18.4 of the Unaudited Condensed Interim Consolidated Financial Statements for the three-month and nine-month periods ended September 30th, 2023.
** Adjusted EBITDA equals EBITDA as described above adjusted for change in fair value of contingent consideration payable, change in fair value of debenture conversion rights, impairment of goodwill, impairment of intangible assets, gain on bargain purchase and loss on investment in associate company.
Q3 Operating Highlights:
SUMMARY OF THIRD QUARTER OPERATING RESULTS
As a development-stage company, timely access to capital continues to be an important element for the execution of Tenet's business plan. One of the main priorities for the Company in the third quarter, following the events that had occurred in Q2, was to ensure that it would have the capital to carry out its business plan for the coming year. The Company estimated that it would need approximately $20M to do so and was able to raise about $10.9M of that amount during the quarter. Tenet expects to close on the balance of the target amount by the end of 2023. However, there can be no assurances that the Company will be successful in doing so.
In addition to shoring up its finances, Tenet spent a significant portion of the quarter on activities related to preparing the Company's transition from a predominantly transaction fee based revenue model to a predominantly data-driven subscription fee based revenue model. This implied resuming the development of the Cubeler Business Hub's Networking, Advertising and Insights pillars, putting more emphasis on industrial and geographic diversification and expansion of Tenet's service offering in China, and on partnerships with business associations, bookkeepers, accounting software vendors, and others with large numbers of small and medium-sized business clients or members, that the Company can work with to promote the benefits of membership on the Cubeler Business Hub. The Company believes the strategic alliance it was able to forge with Certified Professional Bookkeepers of Canada during the quarter will significantly impact its ability to rapidly add members to the Cubeler Business Hub once the Networking and Advertising pillars of the Hub are live sometime during the first quarter of 2024.
OPERATIONAL OUTLOOK FOR Q4 2023 AND FISCAL 2024
While Tenet's revenue in Q3 was still entirely generated under a predominantly transaction fee based model in China, transitioning to a predominantly subscription fee based revenue model, offering data-driven analytics and AI-based products and services to global capital markets participants, will be the Company's main focus in Q4 2023 and beyond. Tenet estimates the market for its ie-Pulse product offering in North America to be between $45 million and $450 million1 in monthly subscription fees, and the addressable market for its Equity Insider product offering in North America to be between $575 million and $2.3 billion2 in monthly subscription fees. The Company believes that a prompt transition to this phase of its strategic plan will be most beneficial to its shareholders in both the short run and the long run and therefore endeavors to take the necessary steps to start to commercialize its initial data-driven products in North America sometime during the first half of 2024. More information about Tenet's upcoming data-driven product offering is available at .
Calculated based on the estimated number of banks, credit unions, full-service brokerage firms, hedge funds, and mutual fund companies in Canada and the U.S. (approximately 45,000, according to Statista, IBISWorld, Mordor Intelligence and Wikipedia) multiplied by a monthly subscription fee of $1,000 to $10,000.
Calculated based on the estimated number of individuals in Canada and the U.S. with discount brokerage accounts (approximately 115 million, according to Statista) multiplied by a monthly subscription fee of $5 to $20.
Tenet by no means plans to forego the transaction fee based revenue it generates in China. Rather, this form of revenue is expected to go from playing a leading role to a supporting role in how the Company generates revenue in the future, complementing the data-driven revenue the Company expects to generate in North America and eventually in other parts of the world, including China.
SUMMARY OF THIRD QUARTER FINANCIAL RESULTS
In summary, the Company generated revenue of $9,244,460 for the three-month period and $35,514,978 for the nine-month period ended September 30, 2023, compared to $21,585,258 for the three-month period and $88,758,946 for the nine-month period ended September 30, 2022.
Total expenses before taxes for the quarter amounted to $53,133,401 compared to $30,164,621 for the same period in 2022. Net loss for the third quarter of 2023 was $43,002,953 compared to a net loss of $7,715,209 for the same period in 2022.
Full details of the Company's third quarter 2023 financial results can be found in the Unaudited Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) for the three-month and nine-month periods ended September 30, 2023 and September 30, 2022, which are available at .
Tenet will host a conference call on Thursday, November 30 at 9:00 am EST, where President & CEO Johnson Joseph, CFO Jean Landreville and COO Mayco Quiroz will discuss the Q3 2023 financial results and the Company's operational outlook for Q4 2023 and fiscal year 2024. Registration for the event is available at:
About Tenet Fintech Group Inc.:
Tenet Fintech Group Inc. is the parent company of a group of innovative financial technology (Fintech) and artificial intelligence (AI) companies. All references to Tenet in this news release, unless explicitly specified, include Tenet and all its subsidiaries. Tenet's subsidiaries offer various analytics and AI-based products and services to businesses, capital markets professionals, government agencies and financial institutions either through or leveraging data gathered by the Cubeler Business Hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members.
For more information, please contact:
Tenet Fintech Group Inc.
Mayco Quiroz, Chief Operating Officer
514-340-7775 ext.: 510
investors@tenetfintech.com
CHF Capital Markets
Cathy Hume, CEO
416-868-1079 ext.: 251
cathy@chfir.com
Follow Tenet Fintech Group Inc. on social media:
X: @Tenet_Fintech
Facebook: @Tenet
LinkedIn: Tenet
YouTube: Tenet Fintech
安大略省多倫多--（Newsfile Corp.，2023年11月29日）——創新分析服務提供商、Cubeler商業中心的所有者和運營商Tenet Fintech Group Inc.（CSE：PKK）（OTC Pink：PKFF）（“Tenet” 或 “公司”）今天公佈了截至2023年9月30日和2022年9月30日的三個月和九個月期間的財務業績和經營亮點。2023年第二季度公司在中國和加拿大的業務中斷的影響繼續對公司第三季度的收入造成損失。Tenet公佈本季度總收入爲920萬美元，淨虧損4,300萬美元。報告的淨虧損包括3640萬美元的非現金減值費用，這筆費用歸因於該公司在中國的Heartbeat平台和加拿大Cubeler平台的預測收入延遲。隨着這些平台成爲公司的重要收入來源，公司希望，這些減值費用（不包括商譽）中有很大一部分可能會在未來幾個季度中被逆轉。本新聞稿中表示的所有金額均以加元爲單位。
第三季度財務亮點：
總收入爲920萬美元
淨虧損4,300萬美元
息稅折舊攤銷前利潤*爲（4,080萬美元）
調整後的息稅折舊攤銷前利潤**（380萬美元）
截至2023年9月30日的3個月期間淨虧損與息稅折舊攤銷前利潤和調整後息稅折舊攤銷前利潤的對賬 |
淨虧損 | (43,002,953 美元) |
所得稅（復甦） | （885,988 美元） |
財務成本 | 447,793 美元 |
財產和設備的折舊 | 49,805 美元 |
使用權資產的折舊 | 160,029 美元 |
無形資產的攤銷 | 2,433,114 美元 |
融資發行成本的攤銷 | 13,683 美元 |
EBITDA | （40,784,517 美元） |
加（少）： |
|
應付或有對價公允價值的變動 | 397,361 美元 |
債券轉換權公允價值的變化 | 239,907 美元 |
商譽減值 | 23,448,897 美元 |
無形資產減值 | 12,913,500 美元 |
聯營公司投資虧損 | 10,091 美元 |
調整後 EBITDA | （3,774,761 美元） |
* 息稅折舊攤銷前利潤是一項非國際財務報告準則財務指標，旨在幫助讀者確定公司從運營中產生現金流和支付財務費用的能力。它也被廣泛用於業務估值目的。該衡量標準沒有國際財務報告準則規定的標準含義，可能無法與其他公司提出的類似衡量標準相提並論。
息稅折舊攤銷前利潤等於截至2023年9月30日的三個月和九個月期間未經審計的簡明中期合併財務報表附註18.4所定義的所得稅、財產和設備折舊、使用權資產折舊、無形資產攤銷、融資發行成本攤銷和融資成本前的業績。
** 調整後的息稅折舊攤銷前利潤等於上述息稅折舊攤銷前利潤，經或有應付對價公允價值變動、債券轉換權公允價值變動、商譽減值、無形資產減值、討價還價收購收益和關聯公司投資虧損調整後的息稅折舊攤銷前利潤。
第三季度運營亮點：
第三季度經營業績摘要
作爲一家處於發展階段的公司，及時獲得資金仍然是執行Tenet商業計劃的重要因素。繼第二季度發生的事件之後，公司在第三季度的主要優先事項之一是確保有足夠的資金來執行來年的業務計劃。該公司估計，這將需要大約2000萬美元才能這樣做，並且能夠在本季度籌集到其中約1090萬美元。Tenet預計將在2023年底之前完成目標金額的餘額。但是，無法保證公司會成功做到這一點。
除了支撐財務狀況外，Tenet在本季度的很大一部分時間裏還花在了與準備公司從主要基於交易費的收入模式過渡到主要由數據驅動的基於訂閱費的收入模式有關的活動上。這意味着恢復Cubeler Business Hub的網絡、廣告和洞察支柱的發展，更加重視產業和地域多樣化以及Tenet在中國的服務範圍的擴大，以及與商業協會、簿記員、會計軟件供應商和其他擁有大量中小型企業客戶或會員的合作伙伴關係，公司可以與之合作推廣加入Cubeler Business Hub的好處。該公司認爲，一旦Cubeler商業中心的網絡和廣告支柱在2024年第一季度的某個時候上線，其在本季度與加拿大認證專業簿記員建立的戰略聯盟將對其快速向Cubeler商業中心增加成員的能力產生重大影響。
2023 年第四季度和 2024 財年的運營展望
儘管Tenet在第三季度的收入仍完全是在中國以交易費爲主的模式下產生的，但向主要基於訂閱費的收入模式過渡，向全球資本市場參與者提供數據驅動的分析和基於人工智能的產品和服務，將是公司在2023年第四季度及以後的主要重點。Tenet估計，其IE-Pulse產品在北美的月訂閱費在4,500萬美元至4.5億美元之間1，其在北美提供的Equity Insider產品的潛在市場在5.75億美元至23億美元2之間。該公司認爲，從短期和長期來看，迅速過渡到其戰略計劃的這一階段將最有利於其股東，因此努力採取必要措施，在2024年上半年的某個時候開始在北美實現其初始數據驅動產品的商業化。
根據加拿大和美國的銀行、信用合作社、提供全方位服務的經紀公司、對沖基金和共同基金公司的估計數量（根據Statista、IBISWorld、Mordor Intelligence和Wikipedia的數據，約爲45,000家）乘以每月1,000至1萬美元的訂閱費計算得出。
根據加拿大和美國擁有折扣經紀賬戶的估計人數（根據Statista的數據，約爲1.15億）乘以每月5至20美元的訂閱費計算得出。
Tenet絕不打算放棄其在中國產生的基於交易費的收入。相反，這種收入形式預計將從在公司未來如何創造收入方面發揮主導作用轉變爲支持作用，補充公司預計將在北美乃至包括中國在內的世界其他地區創造的數據驅動型收入。
第三季度財務業績摘要
總而言之，該公司在截至2023年9月30日的三個月期間創造了9,244,460美元的收入，在截至2023年9月30日的九個月期間創造了35,514,978美元的收入，而截至2022年9月30日的三個月期間爲21,58,258美元，而截至2022年9月30日的九個月期間爲88,758,946美元。
該季度的稅前總支出爲53,133,401美元，而2022年同期爲30,164,621美元。2023年第三季度的淨虧損爲43,002,953美元，而2022年同期的淨虧損爲7,715,209美元。
公司2023年第三季度財務業績的完整詳細信息可在截至2023年9月30日和2022年9月30日的三個月和九個月期間的未經審計的簡明中期合併財務報表和管理層的討論與分析（MD&A）中找到，該報告可在以下網址查閱。
Tenet將於美國東部標準時間11月30日星期四上午9點主持電話會議，總裁兼首席執行官約翰遜·約瑟夫、首席財務官讓·蘭德維爾和首席運營官梅科·基羅茲將在會上討論2023年第三季度的財務業績以及公司2023年第四季度和2024財年的運營前景。可通過以下地址註冊該活動：
關於 Tenet Fintech Group Inc.
Tenet Fintech Group Inc. 是一家創新金融科技（Fintech）和人工智能（AI）公司的母公司。除非明確說明，否則本新聞稿中提及Tenet的所有內容均包括Tenet及其所有子公司。Tenet的子公司通過或利用Cubeler Business Hub收集的數據，向企業、資本市場專業人士、政府機構和金融機構提供各種分析和基於人工智能的產品和服務。Cubeler Business Hub是一個全球生態系統，利用分析和人工智能來創造機會並促進其成員之間的B2B交易。
欲了解更多信息，請聯繫：
Tenet Fintech集團有限公司
Mayco Quiroz，首席運營官
514-340-7775 分機：510
investors@tenetfintech.com
瑞士法郎資本市場
首席執行官 Cathy Hume
416-868-1079 分機：251
cathy@chfir.com
在社交媒體上關注 Tenet Fintech Group Inc.：
X：@Tenet_Fintech
臉書：@Tenet
領英：Tenet
YouTube：Tenet F
