Home Financial responsibility Clear Blue Technologies announces its financial results for the first quarter of 2022

Clear Blue Technologies announces its financial results for the first quarter of 2022


Q1 revenue of $1,225,106gross margin of 41%, adjusted EBITDA of ($851,890)

Second tranche of unit offering closed for gross proceeds of $653,443 and total gross proceeds of $1.64 million

TORONTO, May 30, 2022 (GLOBE NEWSWIRE) — Clear Blue Technologies International Inc. (“Light blue” and the “Company”) (TSXV: CBLU) (FRA: 0YA) (OTCQB: CBUTF), the Smart Off-Grid™ Company, announces its financial results for the three months ended March 31, 2022 (“Q1 2022”). A complete set of financial statements and management report (“Management report”) has been filed on www.sedar.com. All dollar amounts are denominated in Canadian dollars.

Main financial results

On a four quarter end (“QTF“) base:

  • Revenue was $5,914,758, down 18% from the TFQ ending Q1 2021. Recall that Q1 2021 and Q4 2020 revenue benefited from significant initial deployments with a telecommunications infrastructure operator in Africa. Normalized for these deployments, TFQ revenue would have increased year over year;
  • Gross profit was $2,011,797 or 34%, a 4% increase from the previous TFQ’s $1,941,028 or 27%;
  • Non-IFRS Adjusted EBITDA was $(2,998,255) versus $(3,103,830) for the previous TFQ.

For Q1 2022:

  • Revenue was $1,225,106, down 65% from Q1 2021 due to Q1 2021 receiving a large one-time order that deviated from the Company’s typical seasonality. On a 5-year trend, the first quarter is typically the company’s least seasonal quarter, accounting for 6-9% of total annual revenue. The first quarter of 2022 was the second highest quarter in the Company’s history (after the first quarter of 2021) and, based on historical trends, management believes that revenues for the first quarter of 2022 are in line to reach revenue guidance for fiscal year 2022 of approximately $10 million;
  • Reservations were $2,015,147 up 31% from $1,536,118 as of December 31, 2021;
  • Gross profit was $507,500 or 41% compared to $751,163 or 22% for Q1 2021;
  • Quarterly non-IFRS adjusted EBITDA was $(851,890) compared to $(416,969) in Q1 2021, due to lower revenue and the resulting increase in travel and marketing expenses , with the Company’s sales activities resuming in-person meetings.

Management Commentary and Perspectives

In the first quarter of 2022, Clear Blue gained popularity among its customers. The company announced new partner and customer agreements with YahClick, GCES and Viasat. New product announcements for Illumient and the groundbreaking product Pico-Grid have also generated significant interest in the market.

“The first quarter was a busy quarter in terms of sales and marketing,” said Miriam Tuerk, co-founder and CEO of Clear Blue. “We announced several new customers, partnerships and launched two new products. At the same time, we have witnessed a higher level of global macroeconomic uncertainty, which is impacting supply chains and corporate purchasing behavior. Although we did not lose any major contracts, some major contracts that we expected to close in the first quarter of 2022 have transitioned to smaller, staggered deployments. We also undertook an expense reduction program and allowed management and certain employees to accept reduced cash compensation in exchange for equity. These activities will bring the business to positive EBITDA and cash flow sooner at a lower than expected revenue threshold. Given the current macroeconomic market pressures, we are comfortable with a revenue forecast of approximately $10 million for the next four quarters. Our sales funnel, customer and project activities indicate continued strong demand for Clear Blue’s products, and with the closing of the second tranche of our unit offering, we are well positioned to seize our opportunities.

Second tranche of unit offering completed for a total of $1.64 million raised

Today, May 30, the Company announces the closing of the second tranche of a non-brokeraged unit offering (the “Offer”) for gross proceeds of approximately $653,443.

This second closing of the placement resulted in the issuance of 3,843,782 shares of the Company (each, a “Unityand collectively the “Units”) at a price of C$0.17 per Unit. Each Unit consists of one ordinary share in the capital of the Company (each, a “Ordinary share» and collectively the «Ordinary actions”) and one common share purchase warrant (each whole warrant, a “To guarantee» and collectively the «Mandates”). Each warrant entitles its holder to purchase one common share at a price of C$0.22 per common share for a period of 24 months from the date of grant.

Proceeds from the offering are expected to be used for sales, marketing, research and development, and working capital requirements.

Tranche 1 of this unit placement was completed and announced on April 29, 2022 for $989,834. Together, the two installments totaled $1,643,277.

All securities issued under the two tranches of the Offering are subject to a statutory hold period ending four months and one day from the closing date of the first tranche. The placement remains subject to final approval by the TSX Venture Exchange.

Conference call

The Company will host a conference call to discuss its latest financial results at 11:00 a.m. EST (Canada/US) on Tuesday, May 31, 2022. Interested persons can register at: https://us06web.zoom .us/webinar /register/WN_y6NeIbuNRvqRYBhvO-lLOQ

For more information contact:

Miriam Tuerk, co-founder and CEO
+1 416 433 3952
[email protected]

Nikhil Thadani, Sophic Capital
+1 437 836 9669
[email protected]

About Clear Blue Technologies International

Clear Blue Technologies International, the Smart Off-Grid™ company, was founded on a vision to provide clean, managed “wireless power” to meet the global need for reliable, low-cost, solar and hybrid power for the lighting, telecommunications, security, Internet of Things devices and other critical systems. Today, Clear Blue manages thousands of systems in 37 countries, including the United States and Canada. (TSXV: CBLU) (FRA: 0YA) (OTCQB: CBUTF)

Legal disclaimer

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.

Forward-looking statement

This press release contains certain “forward-looking information” and/or “forward-looking statements” within the meaning of applicable securities laws. Such forward-looking information and forward-looking statements are not representative of historical facts or information or of the current state, but represent only Clear Blue’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside Clear Blue’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “anticipates”, “expects” or “does not expect”, “is expected”, ” budget”, “planned”, “estimates”, “plans”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or may contain statements that certain actions, events or results “could”, “could”, “will”, “could” or “will be taken”, “will continue”, “will occur” or “will be realized”. The forward-looking information contained in herein may include, but is not limited to, information regarding financial results and future future contracts.

By identifying such information and statements in this manner, Clear Blue cautions the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results, level of activity, Clear Blue’s performance or accomplishments. be materially different from those expressed or implied by such information and statements.

An investment in securities of Clear Blue is speculative and subject to several risks, including, without limitation, the risks described under the heading “Risk Factors” in Clear Blue’s listing application dated July 12, 2018 Although Clear Blue has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to are not those anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, Clear Blue has made certain assumptions. Although Clear Blue believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurances or warranties can be assured that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release. All subsequent written and oral forward-looking information and statements attributable to Clear Blue or persons acting on its behalf are expressly qualified in their entirety by this notice. »

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described in this press release. These securities have not been and will not be registered under United States securities law or any state securities law and, accordingly, may not be offered or sold in the United States, nor to or on behalf of or for the benefit of persons in the United States or “US Persons”, as that term is defined in Regulation S promulgated under the US Securities Act, unless registered under the US Securities Act and applicable state securities laws or under an exemption from these registration requirements.