WaveDancer Releases First Quarter 2022 Results
FAIRFAX, Virginia, May 16, 2022 (GLOBE NEWSWIRE) – WaveDancer (NASDAQ: WAVD) today reported its results for the first quarter ended March 31, 2022, which was characterized by continued investment in WaveDancer software development and sales team. . This included new hires, board appointments, partnerships, and a final acquisition agreement as WaveDancer strives to become a market leader in the zero trust, blockchain, and secure supply chain market.
WaveDancer CEO Jamie Benoit commented: “Our first quarter of 2022 saw the company continue to prioritize investments in key operating areas. senior management, we’ve also added three new blockchain sales professionals, as well as six engineers and developers. “
Mr. Benoit continued: “Our lower revenues during the first quarter of 2021 are the result of our continued efforts in the Tellenger business to move away from the distribution and resale of low margins and to higher-margin professional service opportunities. “.
Highlighted financial data for the first quarter of 2022 (all comparisons with the previous year’s period unless otherwise noted)
- Total revenue decreased 12.4% to $ 3.0 million, compared to $ 3.4 million.
- Professional fees fell 15.3% to $ 2.1 million, from $ 2.4 million.
- Gross profit fell to $ 0.4 million, compared to $ 1.0 million.
- Gross margin widened to 12.6%; higher-margin professional fees accounted for 69.0% of revenue.
- Net loss of (2.1) million dollars, compared to net income of 0.3 million dollars.
- EBITDA adjusted1 of (1.7) million dollars, compared to 0.4 million dollars.
WaveDancer (www.wavedancer.com), based in Fairfax, Virginia, is a zero-trust software solution provider specializing in secure supply chain management (SCM), asset tracking and security. Our technologies are deployed and used to help organizations manage highly complex supply chain challenges. Originally developed to secure a complex international supply chain for a U.S. government global security organization (USG), the technology has matured to address multiple operational capabilities. Customers are using the WaveDancer platform to achieve unprecedented levels of accountability, auditability and predictability of their data, while providing information to their partners and suppliers through a distributed and controlled register that is immutable and in which all parties they can trust. Sophisticated blockchain technology is now available to the entire USG via GovCloud.
1 See Non-GAAP reconciliation on page 6
Additional information for investors
This statement may contain forward-looking statements about the company’s business, customer outlook or other factors that may affect future earnings or financial results. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Investors should read and understand the risk factors detailed in the company’s 10-K for the fiscal year ended December 31, 2021 and in other documents submitted to the Stock and Securities Commission.
For additional information contact:
Jeremy Hellman, CFA
The Equity Group
WAVEDANCER, INC. AND SUBSIDIARIES
CONSOLIDATED ACCOUNTS FOR OPERATIONS AND OVERALL RESULTS
|Three months ended March 31,|
|Cost of income|
|Cost of professional fees||1,712,015||1,467,699|
|Cost of selling software||907,432||932,231|
|Total cost of income||2,619,447||2,399,930|
|Commercial, general and administrative expenses||2,714,342||680,250|
|(Loss) operating income||(2,772,979||)||
|Other income (expenses):|
|Other income (expenses), net||(12,015||)||3,404|
|(Loss) income before provision for income taxes||(2,804,313||)||270,815|
|Income tax benefit||(726.006||)||–|
|Net income (loss)||$||(2,078,307||)||$||270,815|
|Comprehensive income (loss)||$||(2,078,307||)||$||
|Basic (loss) / earnings per share||$||(0.12||)||$||0.02|
|(loss) / diluted earnings per share||$||(0.12||)||$||0.02|
|Weighted average of ordinary shares outstanding|
WAVEDANCER, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|Cash and cash equivalents||$||2,999,201||$||4,931,302|
|Advance expenses and other current assets||458,719||276,990|
|Total current assets||5,129,992||6,873,154|
|Intangible assets, net of accumulated depreciation of $ 201,032 and $ 0||7,699,075||8,048,968|
|Operating leases with the right to use||627,977||672,896|
|Tangible fixed assets, net of accumulated depreciation of $ 347,886 and $ 312,320||103,577||105,256|
|PASSIVE NET EQUITY|
|Accrued payroll and related liabilities||611,497||524,055|
|Other accrued liabilities||816,536||204,080|
|Liability for operating lease – current||192,128||192,128|
|Total current liabilities||2,322,219||1,981,847|
|Liability for operating lease – non-current||460,505||507,120|
|Deferred income taxes||441,498||1,167,504|
|Ordinary shares at $ 0.001 and a par value of $ 0.01; 100,000,000 and 30,000,000 authorized shares, 18,882,313 and 12,904,376 shares issued, 17,239,697 and 11,261,760 shares outstanding, as of December 31, 2021 and respectively||18,987||18,882|
|Additional payment in capital||32,128,334||31,789,464|
|Treasury stock, 1,642,616 shares at the price||(930,211||)||(930,211||)|
|Total shareholders’ equity||15,701,840||17,441,172|
|Total liabilities and equity||$||21,222,990||$||23,362,643|
Non-GAAP financial measures
To evaluate the performance of our business, management uses a variety of financial and performance measures. The key measure is adjusted EBITDA, a non-GAAP financial measure. We define adjusted EBITDA as net income (loss) plus amortization and depreciation expense, interest expense (income) and taxes, as adjusted more to eliminate the impact of, where applicable, expenses that are unusual or non-recurring that we believe do. they do not reflect our basic operating results. and share-based non-cash compensation. We believe that adjusted EBITDA is significant for our investors to improve their understanding of our financial performance during the current period and our ability to generate cash flows from transactions that are available for tax, capital expenditures. and debt service. We understand that adjusted EBITDA is frequently used by securities analysts, investors, and other stakeholders as a measure of financial performance and to compare our performance with that of other companies reporting adjusted EBITDA. However, our adjusted EBITDA calculation may not be comparable to measures with a similar title reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss) calculated in accordance with GAAP. In addition, the results presented by the adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes. The following is a reconciliation of net income (loss) with adjusted EBITDA, the most comparable GAAP measure.
|Reconciliation of net profit (loss) with adjusted EBITDA|
|(in thousands)||Three months over
|Net income (loss)||$||(2,078||)||$||271|
|Interest expense (income), net||19||(2||)|
|Tax expense (benefit).||(726||)||–|
|Non-cash compensation based on shares||312||28|