SpotLite360 IOT Solutions (CSE:LITE) Inc has reported strong growth in revenue for the three months ended June 30, 2022, and also announced its first positive cash flow in the period.
Revenue for the second quarter totaled C$8.7 million, compared to C$944,000 in the same period of 2021. In the first six months, revenue amounted to C$9.7 million.
In a statement, SpotLite360 president and CEO James Greenwell said: "We are very excited to share these results and prove our strategy of driving supply chain data and proof to consumers. SpotLite360 is creating an automated, smart, connected supply chain ecosystem.”
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The company, which listed on the Canadian Security Exchange (CSE) in June of 2021, recorded its first cash flow positive quarter with adjusted earnings before interest, tax, depreciation and amortization of C$211,137 compared to a near break-even cash flow in the first quarter of 2022.
The second-quarter net loss narrowed to C$523,000 from C$548,000 in the first three months of the year.
Greenwell highlighted growth in the company’s contracted backlog of business since it announced its first-quarter results in June.
“As we stated with our Q1 2022 earning release, at that time the company had a backlog of contracted business of over C$10 million and anticipated a strong 2022 Q2,” he said. “While we expect challenges and some market headwinds in the second half of 2022, our contracted backlog of business has grown to total over C$13 million.”
The CEO noted that the company’s pipeline of opportunities also continues to grow for 2023, with recent acquisitions proving to be accretive.
“Year-to-date positive cash flow - adjusted EBITDA with multiple state expansions and product innovations will position SpotLite360's future growth," he said.
The company has begun expanding office openings, with operations now in Arizona, Oklahoma, and Colorado and two more offices expected to open in the second half of the year.
It said increased sales activities have led to greater value of total proposed contracts, noting that several new project announcements are expected in coming months.
The company pointed out that several merger and acquisition targets have been added to the pipeline.
“While negotiations are complex and ongoing, the strategy to add product capabilities with additional customers and cross-selling products and services is anticipated,” it said.
SpotLite360 is a logistics technologies solutions provider unlocking value, opportunities, and efficiencies for all participants in a supply chain. Building upon existing applications of IoT technologies, distributed ledgers, and machine learning, SpotLite360 endeavors to set new standards of transparency, integrity, and sustainability in the pharmaceutical, healthcare, and agriculture industries.
Contact the author at jon.hopkins@proactiveinvestors.com