Venzee Technologies Inc. (TSXV: VENZ) (OTCQB: VENZF) (“Venzee” or the “Company“), the artificial intelligence platform for product data transfer, announced financial results for the three and six months ended June 30, 2022.
Reflected in the results are expenditure reductions related to changes in the Company’s approach to sales and marketing. According to Venzee COO Peter Montross, “Maturation of go-to-market plans with key partners have allowed us to build more reliable sales and revenue plans with substantially less internal sales and marketing personnel.”
Driven by capital market challenges, during the quarter, the Company also implemented a number of cost-cutting measures. These measures were implemented beginning in March 2022 and were fully effective in May. The reduction of cash burn is shown in the statement of cash flows when comparing “Cash used in operating activities” in Q1F2022 to Q2F2022.
Q1F2022 had a cash usage over $900,000 and Q2F2022 was below $400,000. The Company expects further reduction in cash usage in Q3F2022.
Revenue for the quarter reflected continued use of the Company’s Mesh Connector™ product by two key partners progressing through operational testing with major retailers.
According to Venzee CEO John Abrams, “While user acceptance testing has taken longer than expected, our AI-driven content syndication advantage has proven highly functional and is the real-world validation we needed to accelerate revenue growth. With deeply invested partners and associated strong go-to-market plans, we expect consistent revenue growth in the coming quarters.”
The Company reports – as combined revenue – both one-time implementation charges and recurring monthly fees for its Mesh Connector™ product. Reflected in the results are minor revenue reductions associated with the end of one-time implementation charges. The financial results for the second quarter ended June 30, 2022 are as follows:
- Revenue for the three and six month period was $13,000 and $23,375 as compared to $13,595 and $22,345 from the previous year;
- Net loss for the three and six month period was $707,528 and $1,710,586 as compared to $889,109 and $1,538,281 from the previous year;
- Loss per share for the three and six month period was $0.00 and $0.01 as compared to $0.00 and $0.01 from the previous year.
In addition, the Company continued to receive funding support through its previously announced convertible debenture. Regarding the debenture funding, Mr. Abrams commented, “While global capital markets have seen unprecedented challenges this year, Venzee continued to attract investment to sustain operations and execute on the revenue growth opportunities in front of us.”
The unaudited condensed interim financial statements and related Management’s Discussion and Analysis (MD&A) can be viewed on SEDAR at www.sedar.com.