DENVER, Aug. 31, 2021 (GLOBE NEWSWIRE) -- TrackX Holdings Inc. (TSX.V:TKX | OTC:TKXHF | FRANKFURT:3TH) (“TrackX” or the “Company), a leading Software-as-a-Service (SaaS)-based provider of enterprise tracing, tracking and collaboration solutions, announces the financial and operational highlights from its third quarter ended June 30, 2021. All results are reported in Canadian dollars unless otherwise specified. A complete set of the June 30, 2021 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed on SEDAR (www.sedar.com).
“In Q3 2021, TrackX strengthened its team and continued to make enhancements to its enterprise scalable, IoT-enabled platform to support its refined focus on supply chain tracing, tracking and sustainability,” said Tim Harvie, TrackX CEO. “We will continue to maintain our focus, improve our platform and grow our team to further position the Company as a leader in the delivery of enterprise solutions to help companies:
- support increased consumer demand for proof of environmental, social and governance (ESG) behaviors and sustainability practices.
- be more adaptable, responsive and flexible in dealing with supply chain disruptions like those experienced during the most recent pandemic.
- respond to increased regulatory and compliance mandates like those that exist in food services, pharmaceutical, agriculture, healthcare and automotive.
- migrate from traditional linear supply chains to digital supply chains with increased collaboration transparency and trust across the entire partner ecosystem.
To successfully take advantage of industry opportunities, TrackX completed a non-brokered private placement in Q3, 2021. With this financing, the Company has invested in additional resources to support both new and existing customer implementations and deliver an expanded set of SaaS-based supply chain tracing, tracking and sustainability solutions to meet customer demand for proof of ESG (Environmental, Social and Governance) claims.
In Q3, 2021, TrackX saw an increase in revenue over the Q2, 2021. This increase in revenue was largely attributable to the following factors:
- SpotLite360 Technologies, Inc. (“SpotLite360”) completed the licensing of the TrackX KeyChain platform, allowing them to service their customer requirements for tracing and tracking within the agricultural, pharmaceutical, and healthcare industries.
- TrackX completed a new customer implementation to help manage inventory and supply chain activity in the automotive industry for a large online used car retailer.
- The Company’s completed an implementation for a new customer who is focused on reclaiming the large amount of fresh food waste from large national grocery retailers and processing it into livestock feed and pet food.
Financial Highlights for the three months ended June 30, 2021 (“Q3 2021”) compared to the three months ended March 31, 2021 (“Q2 2021”)
- The Company’s total revenue increased from $0.428 million for Q2 2021 to $0.728 million for Q3 2021. This was driven by an increase in perpetual software license fees of $0.380 million. This increase is a result of the Company moving into strategic partnerships with a focus on digital supply chain transformation and sustainability
- Net loss for Q3 2021 was $1.32 million or ($0.01)/share compared to net loss of $0.503 million or ($0.02)/share for Q2, 2021. In Q3 2021, TrackX recognized a full quarter of expense for our stock base compensation that was issued in Q2 2021, as well as an increase in sales and marketing as a result of the Company increasing its market presence with rebranding and marketing content.
- Cost of Sales of $0.471 million for Q3 2021, a 15% increase over $0.353 million for Q2 2021, due to additional technical resources that were hired to staff to support new revenue opportunities. TrackX has continued to focus on higher margin SaaS and license revenue while leveraging partners for hardware and implementation services.
- TrackX raised gross proceeds of $2 million from a non-brokered private placement in Q3 2021.
Third Quarter Revenue Mix
| Revenue | Q3 21 | Q2 21 | ||
| Recurring and Software License | 73 | % | 39 | % |
| Hardware | 0 | % | 6 | % |
| Setup, implementation, and other fees | 26 | % | 55 | % |
| TOTAL | 100 | % | 100 | % |
Highlights Subsequent to the Third Quarter
- TrackX announced that it hired Marc Spezialy as Chief Financial Officer of TrackX, with an extensive background in finance and accounting.
- TrackX issued 1,300,000 shares at a price of $0.075 in connection with the exercise of the warrants that were issued on April 8, 2021.
Selected Financial Information
| C$(000s) (except per share) | Three-month | |||||
| Q3 2021 | Q2 2021 | |||||
| Revenue | $728 | $428 | ||||
| Gross Margin % | 35% | 18% | ||||
| Loss for the period | $1,325 | $503 | ||||
| Loss per share | $0.01 | $0.02 | ||||
| Adjusted EBITDA Loss | $573 | $387 | ||||
Business Outlook
TrackX will leverage its enterprise scalable, IoT-enabled platform and decades of supply chain experience to deliver multi-enterprise supply chain tracing, tracking and collaboration solutions to help companies become more efficient, more resilient and better equipped to meet their sustainability initiatives and respond to growing consumer demand for proof of ESG claims. Sustainability is estimated to be a more than $3 trillion market opportunity. Supply chain solutions sit at the epicenter of this opportunity and TrackX is well equipped to help companies monetize this opportunity.
TrackX is now able to focus on delivery of solutions to customers which:
- enable the digital supply network by providing a centralized, immutable and permissible source of record for a customer’s supply chain data,
- facilitate better collaboration across the entire supply chain partner ecosystem by leveraging distributed ledger technology to make all relevant supply chain events transparent from origin to destination
- improve end-to-end supply chain visibility by leveraging RFID, IOT sensors and other item tracking technologies to capture real-time event driven information related to the state, location, and ownership of assets and inventory
- increase operating efficiency by aggregating data across all supply chain partners and leveraging comprehensive analytics, machine learning and artificial intelligence to eliminate loss, reduce labor, improve asset utilization and identify potential risk factors
- support sustainability initiatives, prove ESG behaviors, provide the consumer verifiable product information, and comply with industry and regulatory mandates.
To support its growth strategy, in Q3, 2021, TrackX completed an equity financing for gross proceeds of $2,000,000 which is being used in hiring engineering, sales and marketing resources in order to respond to new customer opportunities and facilitate growth. Additionally, the equity financing included 40,000,000 warrants priced at $0.075 per common share which, if exercised, would generate up to an additional $3,000,000 in operating capital for the Company. In addition to completing the onboarding a new Chief Marketing Officer (previously announced), the Company selected and subsequently hired a new Chief Financial Officer, Marc Spezialy, to support the growth of the company in the delivery of new supply chain solutions to support sustainability and ESG initiatives.
As TrackX strengthens its team and continues to make enhancements to its technology platform to support its core supply chain objectives, it will be rebranding its GAME platform as Keychain to signify the Company’s shift in focus and new capabilities in support of tracing, tracking, collaboration and sustainability solutions. TrackX is positioning Keychain as the “key” to digital supply ”chain” transformation for enterprise accounts. It will further leverage technologies such as blockchain, graph databases, enhanced workflows and machine learning. While GAME has been focused on supporting the asset management requirements of a single enterprise, Keychain will leverage and expand upon the GAME platform to address the supply chain tracing, tracking, compliance reporting and sustainability requirements across multiple enterprises operating collaboratively as members of the overall supply chain partner ecosystem.
About Track
TrackX, Inc. (TSX.V: TKX), based in Denver, Colorado, is the SaaS-based enterprise tracing, tracking & collaboration solution that leading brands trust to achieve more sustainable and better performing supply chains. TrackX solutions are built on an enterprise scalable and fully customizable platform that leverages a broad array of RFID, IoT (Internet of Things) and Sensor Technologies to provide item level visibility to customers across a broad array of industries, including food, beverage, brewery, automotive, retail, financial services, technology and government. For more information, visit www.trackx.com.
Media Contact
Marc Spezialy, TrackX Holdings Inc.
investor@trackx.com
303-325-7300
Neither TSX Venture Exchange nor its Regulations 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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur including the Company’s anticipated pipeline and value of current and customer deployments and future opportunities are the managements best estimates and cannot be guaranteed or relied upon and is forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements in this news release, whether as a result of new information, future events or otherwise, except as required by law.
