BeWhere Holdings Inc. Reports First Quarter 2021 Financial Results, Business update and Announces Grant of Options
TORONTO, ON. May 27, 2021 – BeWhere (TSX-V: BEW, OTCQB: BEWFF) (“BeWhere” or the “Company”), a Mobile Internet of Things (M-IoT) company, is pleased to announce its financial results for three months ended March 31, 2021.
Owen Moore, CEO and Co-Founder stated, “The Company progressed well during the first quarter despite a second wave of Covid-19”. He further noted that “the Company remains focused on investing in new technology development with the release of the BeMini in the coming weeks”.
Chris Panczuk, COO and Co-Founder stated, “We are very pleased with the continued support for our M-IoT devices and solutions which is reflected by receipt of new purchase orders for 45,000 devices in 2021”.
First Quarter 2021 Highlights
- Total Revenue increased by 23% year over year – Total Revenue for the three months ended March 31, 2021 was $1,730,450 compared to $1,406,248 for the same period in 2020: an increase of $324,202.
- Recurring Revenue increased by 1% year over year – Recurring Revenue for the three months ended March 31, 2021 was $737,764 compared to $732,298 for the same period in 2020: an increase of $5,466. 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.
- Recurring Revenue contracts – The Company renegotiated a three-year contract with one of its large customers for Recurring revenue. The initial contract entailed pass-through billing for third party application and data fees. Under the new arrangement all pass-through third-party application and data fees will not be invoiced by the Company, and the company will only invoice the monthly fees for the services supplied by BeWhere. This arrangement will have no impact on the gross profit or net income but will see a decline in the Total revenue. This arrangement allows the Company to focus on its net profits.
- Gross Profit increased by 25% year over year – Gross profit for the three months ended March 31, 2021 was $434,110 compared to $346,716 for the same period in 2020: an improvement of $87,394.
- Working Capital – At March 31, 2021, the Company had a working capital balance of $3,564,703 including cash of $2,337,528. The Company maintained a healthy working capital despite incurring development costs totaling $169,010 for its next generation of M-IoT sensors and solutions.
- (non-IFRS measure) – The Company recorded positive adjusted EBITDA during the first quarter, representing the sixth consecutive quarter of positive EBITDA. Adjusted EBITDA for the three months ended March 31, 2021 was $72,940 compared to $1,844 for the same period in 2020.
- Purchase orders – Subsequent to March 31, 2021 and as a follow up to previous announcement of April 22, 2021, the Company has received purchase orders for additional 20,000 devices. This includes additional order of 1,000 devices from New York City. The Company has received purchase orders for a total of 45,000 devices in 2021, these devices are planned to be rolled out during fiscal 2021. In view of the global shortage of certain parts, the Company has already placed advance orders in order to mitigate interruption in production.
- Grant of Options – The Company announces that it has granted an aggregate of 300,000 options to purchase 300,000 Common Shares at an exercise price of $0.20 per share, which options will expire in May 2026, to three independent directors.
|Three months ended March 31|
|Net Profit (loss)||(35,690)||(85,179)|
|EPS – basic||(0.00)||(0.00)|
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 March 31, 2021. 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 assets, 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 March 31, 2021 and 2020, 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.