extractX Ltd. Announces 2021 Year End Financial Results

January 17, 2022 6:49 PM EST

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NIAGARA, Ontario--(BUSINESS WIRE)-- extractX Ltd. (“extractX” or the “Company”), today announced financial results for the Company and its subsidiary extractX Incorporated (“EXI”) as at and for the nine months ended September 30, 2021. Previously, the Company’s year-end was December 31st but with the October 1, 2021 reverse takeover with EXI both companies changed year-ends to September 30th. Therefore EXI which previously had a June 30 year-end is presented as at and for the three months ended September 30, 2021. EXI retroactively adopted the International Financial Reporting Standard effective July 1, 2019 and so the financial statements restated for IFRS for the years ended June 30, 2021 and June 30, 2020 and as at July 1, 2019 have also been posted. All figures are in Canadian dollars unless otherwise noted.

2021 Operational Highlights

During the year and following the successful operation and proof-of-concept of the prototype mobile lab, the Company accelerated its sales and marketing efforts on a global scale. As a result of these focused sales and marketing activities, during the year ended September 30, 2021, the Company entered into two commercial contracts for the provision of mobile extraction labs.

The first contract is for the provision and operation of a mobile extraction lab to a client partner in Franklin, Kentucky. The lab was successfully shipped in March 2021, and the extractX installation team completed the installation and commissioning of the lab within 4 weeks. The lab was operational shortly thereafter, and successfully processing biomass to distillate. During the initial phase of this three year contract the mobile lab generated $407,549 of revenue ($241,323 to June 30, 2021, and $166,226 to September 30, 2021). Through the process, the extractX team identified and implemented additional productivity upgrades and operational changes as part of the Company’s continuous improvement program.

The second contract is for the provision of a mobile lab to a client partner in Chiang Mai, Thailand for a three year contract to process CBD from hemp. In mid-July 2021 the mobile lab was shipped from the manufacturing facility in Winnipeg and arrived in Chiang Mai on September 18, 2021. Using the Company’s Installation & Commissioning Guide, as well as support from the extractX team, the team in Thailand were able to get the lab operational within the expected timeframe and this mobile lab started to run the commissioning tests using small batches of biomass during the quarter ended December 31, 2021, generating $14,704 of revenue.

With the Company’s mobile lab deployed and operational in two locations, the Company is now developing the next generation mobile lab, which is expected to provide a substantial increase in biomass throughput over the previous mobile labs. This increase in throughput is expected to be accomplished using the same footprint as previous labs.

The Company is also currently designing an approved lab to meet EU GMP regulations and standards, which will enable extractX to provide pharmaceutical-grade mobile labs for the pharmaceutical sector. This will be the production model and standard as the Company moves forward. These initiatives were supported in part through a 50% cost sharing grant under the Agricultural Clean Technology Program of the Canadian Government.

The Company’s sales and marketing programs continue to generate qualified leads from around the globe and management is in various stages of discussion and contract negotiations with several parties.

2021 Financial Highlights

extractX Incorporated

EXI previously reported using the Canadian Accounting Standard for Private Enterprise but adopted the International Financial Reporting Standard effective July 1, 2019 due to the reverse takeover acquisition on October 1, 2021 of extractX Ltd., a reporting issuer. The EXI consolidated financial statements have been prepared in compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board effective as at January 1, 2021.

Selected audited financial highlights for the three months ended September 30, 2021, and the years ended June 30, 2021, and June 30, 2020 include the following:

 

Three
Mos.
Ended

 

Year
Ended

 

Year
Ended

(in $CDN)

Sep 30, 2021
$

June 30, 2021
$

June 30, 2020
$

 

 

 

 

Contract revenue

166,226

241,323

1,409,237

Extraction wages and supplies

42,490

218,643

405431

Gross profit

123,736

22,680

1,003,806

 

 

 

 

Expenses

 

 

 

Corporate and operations salaries

218,020

590,528

408,567

Operating and administrative

788,623

1,210,334

829,892

Amortization of capital assets, net of credits

54,554

295,924

274,866

 

1,061,197

2,096,786

1,513,325

 

 

 

 

Net loss before other income and expenses

(937,461)

(2,074,106)

(509,519)

Other income and expenses

(8,033)

404,597

54,418

Write-off of mobile extraction lab

-

(532,086)

-

 

 

 

 

Net loss for the period

(954,494)

(2,201,595)

(455,101)

 

 

 

 

Net comprehensive loss per share

(0.04)

(0.10)

(0.02)

 

 

 

 

Total assets

 

 

 

Cash

1,141,761

1,077,898

721,095

Other current assets

746,434

1,513,659

559,079

Capital and other assets

4,523,097

4,344,512

3,936,328

 

6,411,292

6,936,069

5,216,502

 

 

 

 

Total long-term liabilities

 

 

 

Deposits on contracts

828,165

923,881

-

Other current liabilities

519,361

658,933

1,016,233

Deferred contributions

1,084,640

987,176

514,077

Long term debt

32,880

33,285

40,000

 

2,465,046

2,603,275

1,570,310

 

 

 

 

Shareholders’ Equity

3,946,246

4,332,794

3,646,192

 

 

 

 

% of equity in total assets

61.55%

62.47%

69.90%

extractX Ltd.

Selected audited financial highlights for the nine months ended September 30, 2021, and years ended December 31, 2020, and December 30, 2019 include the following:

 

Nine Mos. Ended

Years Ended

(in $CDN)

Sep 30, 2021
$

Dec 31, 2020
$

Dec 31, 2019
$

Revenue

13,400

12,000

-

Expenses

58,288

95,388

63,615

 

 

 

 

Loss before discontinued operations

(44,888)

(83,388)

(63,615)

Income from discontinued operations

-

45,639

92,569

Net operating income (loss)

(44,888)

(37,749)

28,954

Gain on sale of digital marketing business

-

34,236

-

Government grant

-

10,000

-

Gain on accounts payable settlement

-

3,405

44,119

Gain on distribution of investment in associate

3,178,837

-

-

Share of loss of associate

(11,611)

(19,969)

(11,164)

 

 

 

 

Net comprehensive income (loss)

3,122,338

(10,077)

61,909

Net operating income (loss) per share (basic)

3.32

(0.00)

(0.00)

 

 

 

 

Total assets

32,613

1,233,639

1,239,330

 

 

 

 

Total debt lease obligations

-

-

33,752

Due to extractX Incorporated

279,595

232,017

5,000

Due to related parties

55,417

321,681

350,306

 

 

 

 

Shareholders’ equity (deficiency of assets)

(302,399)

562,941

573,018

Dividends declared per share

4.65

-

-

Through the past four quarters the Company has maintained an office for itself and the proposed reverse takeover target, EXI. EXI provided sufficient cash advances to do so. In advance of the reverse takeover on October 1, 2021 the Company, as authorized by the extractX shareholders, distributed the lhivelive Inc. security interest to the existing extractX shareholders. The increase in value of $4,361,187 over the cost base of $1,182,350 was recorded in the last quarter as a $3,178,837 gain.

Financial Statements

The consolidated financial statements of the Company as at and for the nine months ended September 30, 2021 and the consolidated financial statements of extractX Incorporated as at and for the three months ended September 30, 2021 and accompanying management's discussion and analysis have been filed with the securities regulators and are available on SEDAR at www.sedar.com under the Company’s issuer profile.

No stock exchanges have reviewed or accepted responsibility for the adequacy or accuracy of the content of this press release.

About extractX Ltd.

extractX designs, builds, and operates industrial scale self-contained mobile extraction laboratories equipped with the most effective and reliable equipment, allowing for efficient 24/7 operation, and unlimited scalability to meet the demand of any size operation. Built to GPP/GMP/EU GMP standards, extractX purpose builds mobile extraction laboratories to service biomass cultivators and producers wherever and whenever the service is needed, onsite and on demand anywhere in the world.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and 21E of the Exchange Act of 1934. Such statements include, without limitation, statements regarding business and financing, business trends and future operating revenues and expenses. Statements regarding the aforementioned are based on several assumptions and are not to be considered fact. Although extractX Ltd. believes that the statements are reasonable, it can give no assurances that such expectation will prove to be correct. Investors are cautioned that any forward-looking statements made by extractX Ltd. contain no guarantee of future performance and that actual results may differ materially from those set forth in the forward-looking statements. For additional information see the reports filed by the company in its securities filings with applicable securities regulators (currently available at www.sedar.com).

Unless otherwise required by applicable securities laws, extractX Ltd. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Albert Iannantuono, Co-CEO
extractX Ltd.
1027 South Pelham St Unit 2,
Welland, Ontario, L3C 1L7
Tel: (905) 327-5313
Web site: www.extractx.com

Source: extractX Ltd.



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