BeWhere Holdings Inc. Reports 2020 Fiscal year-end Financial Results
TORONTO, ON. April 22, 2021 – BeWhere (TSX-V: BEW, OTCQB: BEWFF) (“BeWhere” or the “Company”), a MobileInternet of Things (M-IoT) company, is pleased to announce its financial results for twelve months ended December 31, 2020.
Owen Moore, CEO and Co-Founder stated, “The Company progressed well during fiscal 2020, demonstrating improvement in all key performance indicators despite Covid-19 related challenging year.” He further noted that “Moreover, there are signs that the municipal government sector is beginning to recover with a significant order received from New York City”.
Chris Panczuk, COO and Co-Founder stated “We are very pleased with the results of fiscal 2020. The Company showed year-over-year growth of 95% in gross profit as its M-IoT device production reached maturity despite the crisis conditions. The Company remains focused on maintain a healthy gross margin on its products”.
FY 2020 Highlights
- Total Revenue increased by 15% year over year – Total Revenue for the twelve months ended December 31, 2020 was $7,037,286 compared to $6,096,602 for the same period in 2019: an increase of $940,684.
- Recurring Revenue increased by 43% year over year – Recurring Revenue for the twelve months ended December 31, 2020 was $3,095,179 compared to $2,195,010 for the same period of 2019: an increase of $936,169.
- Recurring Revenue was 44% of the total revenue – For the twelve months ended December 31, 2020 Recurring Revenue contributed 44% of Total Revenue. The Company uses Recurring revenue as a key performance indicator (KPI) as it shows the long-term nature of revenue earned from our customer relationships.
- Gross Profit increased by 95% year over year – Gross profit for the twelve months ended December 31, 2020 was $1,664,068 compared to $853,328 for the same period in 2019: an improvement of $810,740.
- Profit (loss) before Impairment of development costs – The Company recorded its profit before one-time impairment of capitalized development cost for the second consecutive quarter ended December 31, 2020.
For the twelve months ending December 31, 2020, Loss before the impairment of capitalized development cost was ($76,485) as compared to loss of ($1,229,945) for the same period in 2019 an improvement of $1,153,460 or 94%.
- Total Comprehensive profit (loss) – Net profit for the twelve months ended December 31, 2020 of $(1,971,884) as compared to ($1,229,945) for the same period in 2019 an increase of $741,939 or 60% mainly due to the one-time impairment of capitalized development cost of $1,895,399 in Q4FY20.
- Working Capital – At December 31, 2020, the Company had a working capital balance of $3,683,075 including cash of $2,466,630. During the twelve months ended December 31, 2020, the Company maintained a healthy working capital.
- Purchase orders for 25,000 devices – Subsequent to December 31, 2020, the Company has received blanket purchase orders of approximately 25,000 devices from its existing and new customers, including New York City. These devices are planned to be rolled out during fiscal 2021. In view of the global shortage of certain components, the Company has already placed advance orders in attempt to mitigate interruption in production. The Company is actively working on various other opportunities in its pipeline.
Fourth Quarter 2020 Highlights
- Total Revenue increased by 59% year over year – Total Revenue for the three months ended December 31, 2020 was $1,839,441 compared to $1,158,529 for the same period of 2019: an increase of $680,912.
- Recurring Revenue increased by 16% year over year – Recurring Revenue for the three months ended December 31, 2020 was $799,068 compared to $690,530 for the same period of 2019: an increase of $108,538.
- Gross Profit increased by 93% year over year – Gross profit for the three months ended December 31, 2020 was $562,069 compared to $291,903 for the same period in 2019: an improvement of $270,166.
- Net profit before Impairment of development costs – The Company recorded its second consecutive quarter Total Comprehensive profit for the three months ended December 31, 2020.
- Net profit (loss) after Impairment of development costs – Net profit for the three months ended December 31, 2020 was $(1,873,380) as compared to $(100,291) for the same period in 2019; an increase of $1,773,089. This decrease is due to the one-time write-off of capitalized development cost of $1,895,399.
- Intangible asset impairment – Company determined that the capitalized development costs of $1,895,399 associated with connected sensor device, which was scheduled to be amortized quarterly as product costs over the next three years, were impaired and therefore written-off. The write down has no impact on inventory, cash, account receivables, other tangible assets, ordinary net income, revenue and gross margins.
- Adjusted EBITDA (non-IFRS measure) – The Company recorded its highest positive Adjusted EBITDA for the year ended December 31, 2020 in its history. Adjusted EBITDA for the three months ended December 31, 2020 was $179,734 compared to $113 for the same period in 2019.
Adjusted EBITDA for the twelve months ended December 31, 2020 was $365,493 compared to $(629,643) for the same period in 2019.
|Three months ended December 31||Twelve months ended December 31 31|
|Profit (loss) before Impairment||22,019||(100,291)||(76,485)||(1,229,945)|
|Profit (loss) after Impairment||(1,873,380)||(100,291)||(1,971,884)||(1,229,945)|
|EPS – basic||(0.02)||(0.01)||(0.02)||(0.01)|
Adjusted EBITDA is a non-IFRS measure and does not have standardized meaning as it relates to performance measures and may not be comparable to other issuer disclosures of similar performance measures. The Company has provided a reconciliation of Adjusted EBITDA to IFRS profit (loss) in the Management’s Discussion and Analysis for the period ended December 31, 2020. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, share-based compensation, and other non-recurring gains and losses. Management believes that Adjusted EBITDA is a useful measure that facilitates period to period operating comparisons. Adjusted EBITDA should not be considered superior to IFRS net income (loss).
Because BeWhere provides remote monitoring and track & trace solutions to the food, distribution, security, construction and government industries, the company has been designated an essential service by its mobile network operator partners at AT&T and Bell Mobility and therefore continued to operate during the Covid-19 pandemic.
The Covid-19 experience has highlighted the value of BeWhere’s monitoring solutions which provide two significant advantages. First the ability to remotely and fully monitor key equipment, and second the collection of detailed data which allows the user to make maximum, efficient use of their resources, be it construction equipment or grape vines. BeWhere’s monitors have proven their worth in the following applications:
- Transportation trailer location, temperature monitoring and utilization,
- Construction site conditions (flooding, temperature, air pressure, humidity, and equipment location,
- Atmospheric conditions data for agriculture,
- Medical equipment utilization and distribution,
- Municipal clean water supply for rapid detection of pipe bursts and operational performance.
As the application of its monitors becomes better known, BeWhere is well positioned to serve an increasingly broader market.
BeWhere (TSXV: BEW, OTCQB: BEWFF) is a Mobile Internet of Things (“M-IoT”) solutions company that designs and sells self-powered hardware with sensors and software applications. Our solutions serve two main markets: (1) Asset Tracking remote location tracking various assets such as trailers, dry vans etc., and (2) Connected Sensors of to remotely track sensors information on non-powered fixed and movable assets. BeWhere’s devices use the latest available cellular technologies (LTE-M and NB-IoT) to transmit collected data into mobile applications and cloud-based platforms, at a much lower cost than traditional cellular networks. BeWhere also offer solutions that can be fully integrated with existing software, and white-labeled. BeWhere’ solutions are cutting edge, offering low-cost sophisticated technology which allows customers to deploy remote tracking technology where cost was previously prohibitive.
Margaux Berry, VP Strategy and Growth
1 (844) 229-4373 x 107
Cautionary Statements Regarding Forward Looking Information
Certain statements in this press release constitute forward-looking statements, within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward-looking statements”.
We caution you that such “forward-looking statements” involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements.
Forward-looking statements include, but are not limited to, statements with respect to commercial operations, including technology development, anticipated revenues, projected size of market, and other information that is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
BeWhere Holdings Inc. (the “Company“) does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. These forward-looking statements involve risks and uncertainties relating to, among other things, technology development and marketing activities, the Company’s historical experience with technology development, uninsured risks. Actual results may differ materially from those expressed or implied by such forward-looking statements.
The Company’s Unaudited Interim Consolidated Financial Statements for the period ended December 31, 2020 and 2019, together with its corresponding Management’s discussion and analysis can be found under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.bewhere.com.
NEITHER THE 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.