TraceSafe Inc. (CSE:TSF) has said product innovation and repeat customers helped the company achieve a record year in 2021, with annual revenue of US$13 million, a 261% increase over the previous year.
The global leader in Internet of Things (IoT) platforms for large-scale industrial and enterprise operations said the fourth quarter “sealed what was our most exciting year in performance and growth” with revenue up 28% year-over-year at US$2.3 million.
“We achieved various sales milestones, expanded globally and renewed contracts with prestigious customers with continuous product innovation," said TraceSafe CEO Wayne Lloyd in a statement. "Our consistent ability to deliver with speed and scale kept bringing some of our biggest customers back across governments and enterprises.”
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TraceSafe posted gross profit of US$5.5 million in 2021, a 267% increase over 2020, the company said. Annual operating loss was US$4.0 million, although this was an improvement of 15% over the previous year’s loss of US$4.7 million.
“Our teams have also shown a great capacity to innovate by pivoting and reimagining the applications of our technology across different industries. It is this combination of innovation and resilience that will drive our continued success in 2022," Lloyd said.
TraceSafe is expected to achieve greater milestones in 2022 with a wider portfolio of solutions for newer customers, as well as new and different products addressing challenges in decarbonization, which is "something every mid to large scale organization is expected to face," Lloyd added.
The company had annual positive cash flow provided by its operations amounting to $600,000 in 2021, a 113% improvement over 2020’s negative cash used in operations of $4.5 million.
Due to a more risk-averse audit environment, TraceSafe said the company's auditors have required it to recognise a US$700,000 write-down of intangible assets and a US$3.7 million impairment of goodwill this fiscal year.
“These were not anticipated and are not a reflection of the business operations of the company as the write-downs are based on auditor and valuator opinion,” it added.
TraceSafe said its shares resumed normal trading on May 20, 2022 after the Ontario Securities Commission, on May 17, 2022, revoked the failure-to-file cease trade order previously issued to the company after it filed the annual audited financials on SEDAR on May 16, 2022.
TraceSafe aims to transform large-scale industrial and enterprise operations with its unique wearables, industrial-grade sensors and award-winning analytics platform. The company's hardware solutions, powered by advanced low-power Bluetooth devices and gateways, work together with its proprietary software to provide mission-critical data enabling safer, efficient and sustainable enterprise environments.
Contact the author at jon.hopkins@proactiveinvestors.com