Newtopia is emboldened by our immediate growth prospects based on three exciting developments in the market:

  1. Growth of GLP-1s opens a huge market for Newtopia to demonstrate sustainability and ROI.
  2. Rise of Health AI and next-gen clinical discovery requires Newtopia's novel data and capabilities.
  3. Expansion opportunities with Heartland Whole Health Institute based on Newtopia's best-ever reported outcomes.

TORONTO, May 23, 2024 /CNW/ - Newtopia Inc. ("Newtopia" or the "Company") (TSXV: NEWU) (OTCQB: NEWUF), a tech-enabled whole health platform creating sustainable habits that prevent, slow, and reverse chronic disease, today announced its fourth quarter, fiscal 2023 and first quarter 2024 financial results, operational highlights and filing of its annual financial statements. These results pertain to the three months and year ended December 31, 2023 as well as the three months ended March 31, 2024. All amounts are expressed in Canadian dollars, unless otherwise noted. The foregoing is a summary of selected information for the years ended December 31, 2023 and 2022 in addition to the quarter ending March 31, 2024 and is qualified in its entirety by, and should be read in conjunction with, Newtopia's consolidated financial statements and management discussion and analysis for the respective periods. The Company expects such financial statements to be filed on May 28, 2024 and will be available on SEDAR+ at www.sedarplus.com.

Newtopia Inc. Logo (CNW Group/Newtopia Inc.)

Fourth Quarter 2023 Financial Highlights (vs. Q4 2022):
  • Revenue of $2.3 million, as compared to $3.1 million.
  • Gross profit margin1 of 63%, as compared to 65%.
Full Year 2023 Financial Highlights (vs. 2022):
  • Revenue of $9.8 million, as compared to $11.2 million.
  • Gross profit margin1 of 62%, as compared to 53%.
First Quarter 2024 Financial Highlights (vs. Q1 2023):
  • Revenue of $1.8 million, as compared to $2.6 million.
  • Gross profit margin1 of 50%, as compared to 60%.

"We see three distinct and exciting strategic areas of opportunity for growth for Newtopia including: (1) expanding our key innovation partnerships, such as Heartland Whole Health Institute; (2) combining Newtopia's proven habit change platform with GLP-1 drugs for obesity and type 2 diabetes; and (3) partnering with health AI and clinical discovery innovators to improve our collective ability to deliver best in breed outcomes that prevent, reverse and slow chronic disease, said Jeff Ruby, Founder and CEO of Newtopia.

"Throughout 2023 and in early 2024, we've made great strides in reducing our cost to serve participants while at the same time increasing our operational efficiencies – all while maintaining and improving our industry leading engagement and whole health outcomes. In the first quarter of 2024, we delivered our best ever outcomes for the first two cohorts of our innovative health coaching project with the Heartland Whole Health Institute in Northwest Arkansas," said Jeff Ruby, Founder and CEO of Newtopia.

"While we made great progress, revenue in Q4 2023 and Q1 2024 was impacted by a change with a long-standing incentive program at one of our largest clients. Fortunately, our relationship with the client remains incredibly strong, and commencing in Q2, we are working with them on strengthening new registrations through market expansion and the re-introduction of Newtopia to existing markets," Ruby concluded.

Fourth Quarter 2023 Financial Results

Revenue for the three months ended December 31, 2023, was $2.3 million, a decrease of 25% compared to $3.1 million in the prior-year period. This decline was driven by a change in a multi-year contract renewal. Actions are underway with this client to recoup lost volume associated with this change. Enrollment fee revenue, or revenue from Welcome Kit sales, totaled 8% of revenue for the quarter.

Gross profit for the fourth quarter 2023 totaled $1.5 million, as compared to $2.1 million in the prior-year period. Gross profit is comprised of Newtopia's revenue less direct expenses, which include the cost of Welcome Kits sold to new participants as well as labor costs associated with hiring and training of the Company's coaching team of Inspirators and amortization of intangibles. As a percentage of revenue, core gross profit totaled 63% compared to 65% in the prior-year period.

Adjusted operating expenses2 for the three months ended December 31, 2023, totaled $1.6 million, compared to $2.8 million in the prior-year period. For the fourth quarter, the Company was roughly EBITDA neutral with an adjusted operating loss3 of $66,000, compared with an adjusted operating loss of $714,000 in the prior-year period.

The Company ended the fourth quarter 2023 with approximately $0.4 million in cash, with additional access to their revolving line of credit with a Canadian Schedule 1 bank. Of note, the Company finalized the refinancing of $2.5 million debt in October 2023.

Full Year 2023 Financial Results

Revenue for the full year ended December 31, 2023, was $9.8 million, a decrease of 12% compared to $11.2 million in the prior year. Engagements totaled 125,000 for the full year, a decrease of 16% year-over-year. Enrollment fee revenue, or revenue from Welcome Kit sales, totaled 12% of revenue for the year.

Gross profit for the year on an apples-to-apples basis totaled $6.1 million, consistent with 2022. As a percentage of revenue, gross profit totaled 62%, up from the prior year of 53%.

Adjusted operating expenses2 for the year totaled $7.3 million, as compared to $11.8 million in the prior year. For the full year ended December 31, 2023, the Company had an adjusted operating loss3 of $1.2 million, compared with a loss of $5.7 million in 2022.

First Quarter 2024 Financial Results

Revenue for the three months ended March 31, 2024 was $1.8 million, a decrease of 31% compared to $2.6 million in the prior-year period. This decline was driven by the aforementioned change made by a client with a long-standing incentive program. Enrollment fee revenue, or revenue from Welcome Kit sales, totaled 17% of revenue for the quarter.

Gross profit for the first quarter 2024 totaled $0.9 million, as compared to $1.6 million in the prior-year period. Gross profit is comprised of Newtopia's revenue less direct expenses, which include the cost of Welcome Kits sold to new participants as well as labor costs associated with hiring and training of the Company's coaching team of Inspirators. As a percentage of revenue, gross profit totaled 50%, compared to 60% in the prior-year period.

Adjusted operating expenses2 for the three months ended March 31, 2024, totaled $1.6 million, compared to $2.3 million in the prior-year period. For the first quarter, the Company posted an adjusted operating loss3 of $667,000, compared with an adjusted operating loss of $727,000 in the prior-year period.

The Company ended the first quarter 2024 with $0.33 million in cash, with additional access to their revolving line of credit with a Canadian Schedule 1 bank. Of note, the Company finalized a bridge equity round of $0.7 million in Feb 2024.

2024 Outlook

Despite a challenging macro environment, the Company remains bullish regarding the outlook of the healthcare industry in 2024. Newtopia will continue to execute on its pipeline to return to EBITDA positive.

Conference Call

The Company will host a conference call May 23rd at 5:00 p.m. Eastern Time to discuss these results in further detail. To access the conference call, please dial (800) 717-1738 (U.S.) or (646) 307-1865 (International) 10 minutes prior to the start time and reference Conference ID number 76573. The call will also be available via live webcast on the investor relations portion of the Company's website located at investor.newtopia.com.

A replay of the conference call will be available through June 5, 2024, which can be accessed by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (International) and entering the passcode 11155888. The webcast will also be archived on the Company's website.

About Newtopia

Newtopia is a personalized whole health platform helping people create positive lifelong habits that prevent, slow, or reverse chronic disease while reducing healthcare costs. The platform leverages genetic, social, and behavioral insights to create individualized prevention programs with a focus on metabolic disease, diabetes, mental health challenges, hypertension, weight management and musculoskeletal disorders. With a person-centered approach that combines virtual care, digital tools, connected devices and actionable data science, Newtopia delivers sustainable clinical and financial outcomes. Newtopia serves some of the largest nationwide employers and health plans and is currently listed in Canada on the Toronto Stock Exchange (TSXV: NEWU) and is quoted in the US on the OTCQB® Venture Market (OTCQB: NEWUF). To  learn more, visit newtopia.com, LinkedIn or X.

Forward Looking Information

This news release contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable United States securities legislation (collectively, "forward-looking statements"), which reflects management's expectations regarding Newtopia's future growth, results from operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects and opportunities. Wherever possible, words such as "predicts", "projects", "targets", "plans", "expects", "does not expect", "budget", "scheduled", "estimates", "forecasts", "anticipate" or "does not anticipate", "believe", "intend" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. All statements other than statements of historical fact may be forward-looking ‎information. Such statements reflect Newtopia's current views and intentions with respect to future ‎events, based on information available to Newtopia, and are subject to certain risks, uncertainties, and ‎assumptions. Material factors or assumptions were applied in providing forward-looking information. While forward-looking statements are based on data, assumptions and analyses that Newtopia believes are reasonable under the circumstances, whether actual results, performance or developments will meet Newtopia's expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of Newtopia to differ materially from its expectations. These forward-looking statements include, among other things, statements with respect to the FFCTO, the expected filing of the Annual Filings and the completion of the audit MNP by the target date. Forward-looking statements are not a guarantee and are based on a number of estimates and assumptions management believes to be relevant and reasonable, whether actual results, performance or developments will meet Newtopia's expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of Newtopia to differ materially from its expectations. Certain of the "risk factors" that could cause ‎actual results to differ materially from Newtopia's forward-looking statements in this news release ‎include, without limitation: ‎disruptions to markets, economic activity, financing, supply chains and sales channels, ‎and a ‎deterioration of general economic conditions including a possible national or global ‎recession; and other general economic, market and business conditions and factors, including the risk factors discussed or referred to in Newtopia's disclosure documents, filed with the securities ‎regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca, including Newtopia's final long form prospectus dated March 30, 2020.

For more information on these risks please see the "Risk Factors" in Newtopia's final long-form prospectus dated March 30, 2020. Should any factor affect Newtopia in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Newtopia does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this news release is made as of the date of this news release, and Newtopia undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

Preliminary Financial Metrics

This news release contains certain pre-released financial metrics. The financial metrics contained in this news release are preliminary and represent the most current information available to the Company's management, as financial closing procedures for the fourth quarter and year ended December 31, 2023 are not yet complete. The Company's actual audited financial statements for such period may result in material changes to the financial metrics summarized in this news release (including by any one financial metric, or all of the financial metrics, being below or above the figures indicated) as a result of the completion of normal quarter and year end accounting procedures and adjustments, and also what one might expect to be in the final financial statements based on the financial metrics summarized in this news release. Although the Company believes the expectations reflected in this news release are based upon reasonable assumptions, the Company can give no assurance that actual results will not differ materially from these expectations.

Non-GAAP Financial Measures

The Company's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). Management uses certain non-GAAP measures, which are defined in the appropriate sections of this press release, to better assess the Company's underlying performance. These measures are reviewed regularly by management and the Company's Board of Directors in assessing the Company's performance and in making decisions about ongoing operations. In addition, we use certain non-GAAP measures to determine the components of management compensation. We believe that these measures are also used by investors as an indicator of the Company's operating performance. Readers are cautioned that these terms are not recognized GAAP measures and do not have a standardized GAAP meaning under IFRS and should not be construed as alternatives to IFRS terms, such as net income.

Neither TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

Key Financial Measures and Schedule of Non-GAAP Reconciliations

Unaudited Gross Profit Information - including amortization [1]
















Three Months Ended December 31,


Twelve Months Ended December 31,


2023


2022


2023


2022


$


$


$


$

Revenue

2,343,249


3,114,317


9,783,546


11,166,428

Cost of revenue

(1,004,225)


(1,079,576)


(4,505,888)


(5,140,369)

Gross profit

1,339,024


2,034,741


5,277,658


6,026,059

Gross profit margin

57 %


65 %


54 %


54 %









Reconciliation of Total Operating Expenses to Adjusted Operating Expenses [2]














Three Months Ended December 31,


Twelve Months Ended December 31,


2023


2022


2023


2022


$


$


$


$

Total expenses

4,564,810


3,624,640


11,878,005


13,726,522

Add (Subtract)








Share-based compensation

(88,929)


(88,608)


(555,816)


(492,720)

Depreciation of property and equipment

(970)


(6,713)


(5,935)


(46,387)

Loss on disposal of property and equipment

-


(15,534)


-


(15,534)

Depreciation of right-of-use asset

-


(30,791)


-


(169,370)

Impairment of intangible asset

(2,409,314)


-


(2,409,314)


-

Impairment of right-of-use asset

-


(200,168)


-


(200,168)

Lease modification

-


(150,907)


-


(150,907)

Interest and accretion expense

(314,174)


(111,564)


(908,153)


(388,448)

Interest on lease obligations

(1,326)


(10,050)


(28,110)


(70,797)

Finance charges

(132,248)


(125,920)


(509,238)


(273,736)

Amortization of deferred finance charges

(42,396)


(56,903)


(149,896)


(248,813)

Foreign exchange loss (gain)

(7,769)


(9,945)


(44,560)


19,053

Capitalized borrowing costs

-


-


-


67,000

Debt modification

63,928


-


54,972


-

Loss on settlement of related party payable

(20,400)


-


(10,086)


-

Adjusted operating expenses

1,611,212


2,817,537


7,311,869


11,755,695

















Adjusted Unaudited Operating Loss [3]









Three Months Ended December 31,


Twelve Months Ended December 31,


2023


2022


2023


2022


$


$


$


$

Gross profit

1,339,024


2,034,741


5,277,658


6,026,059

Add amortization of intangible asset

206,513


68,838


826,050


68,838

Adjusted gross profit

1,545,537


2,103,579


6,103,708


6,094,897

Adjusted operating  expenses

(1,611,212)


(2,817,537)


(7,311,869)


(11,755,695)

Adjusted operating loss

(65,675)


(713,958)


(1,208,161)


(5,660,798)

NEWTOPIA INC.
Unaudited Statements of Financial Position
As at December 31, 2023 and 2022
(Expressed in Canadian Dollars) 




2023

2022









$

$

Assets





Current assets





      Cash



387,339

345,950

      Trade and other receivables



1,400,959

1,557,640

      Contract asset



259,072

190,000

      Prepaid expenses and deposits



101,043

205,843

      Inventories



115,232

325,571

      Deferred costs



64,583

76,269




2,328,228

2,701,273

      Property and equipment



4,665

8,052

      Intangible asset



-

3,235,363




2,332,893

5,944,688






Liabilities





  Current liabilities





      Trade and other payables



1,825,356

2,584,039

      Credit facility                                                                                



4,767,006

4,823,545

      Lease obligations



-

544,700

      Deferred revenue



48,185

48,185

      Debentures



3,723,530

2,409,103




10,364,077

10,409,572






  Debentures



1,387,476

1,068,772




11,751,553

11,478,344






Equity/Deficit





      Common shares



49,404,596

47,978,992

      Contributed surplus



14,151,188

12,861,449

      Deficit                                                                                            



(72,974,444)

(66,374,097)




(9,418,660)

(5,533,656)




2,332,893

5,944,688

NEWTOPIA INC.
Unaudited Statements of Loss and Comprehensive Loss
Years Ended December 31, 2023 and 2022
(Expressed in Canadian Dollars)




2023

2022









$

$






Revenue



9,783,546

11,166,428

Cost of revenue



4,505,888

5,140,369

Gross profit



5,277,658

6,026,059






Operating expenses





      Technology and development



2,329,837

3,923,663

      Sales and marketing



1,386,548

2,720,728

      General and administrative



3,595,484

5,111,304

      Share-based compensation



555,816

492,720

      Depreciation of property and equipment



5,935

46,387

      Impairment of intangible asset



2,409,314

-

      Impairment of right-of-use asset           



-

200,168

      Loss on disposal of property and equipment



-

15,534

      Depreciation of right-of-use asset



-

169,370

      Lease modification



-

150,907




10,282,934

12,830,781






Other expenses (income)





      Interest on lease obligations                                                     



28,110

70,797

      Interest and accretion expense                                                



908,153

388,448

      Finance charges                                                                         



509,238

273,736

      Capitalized borrowing costs                                                     



-

(67,000)

      Foreign exchange (gain)/loss                  



44,560

(19,053)

      Loss on settlement of related party payable 



10,086

-

      Amortization of deferred finance charges 



149,896

248,813

      Debt modification 



(54,972)

-




1,595,071

895,741






Net loss and comprehensive loss                                                                           



(6,600,347)

(7,700,463)

NEWTOPIA INC.
Unaudited Statements of Changes in Equity (Deficit)
Years Ended December 31, 2023 and 2022
(Expressed in Canadian Dollars)




Common

Shares

Contributed

Surplus

 

Deficit

 

Total



$

$

$

$

Balance, January 1, 2022


45,177,120

11,652,200

(58,673,634)

(1,844,314)

Net loss and comprehensive loss


-

-

(7,700,463)

(7,700,463)

Share-based compensation


-

492,720

-

492,720

Private Placement Offering of Units, net of issuance costs


2,624,495

511,839

-

3,136,334

Compensation options issued to brokers


(83,230)

83,230

-

-

Adjustment of issuance costs of 8% Debenture Units


-

4,733

-

4,733

Shares issued on issuance of 13% Debenture Units


260,607

-

-

260,607

Settlement of related party payable


-

116,727

-

116,727

Balance, December 31, 2022


47,978,992

12,861,449

(66,374,097)

(5,533,656)

Net loss and comprehensive loss


-

-

(6,600,347)

(6,600,347)

Share-based compensation


-

555,816

-

555,816

March 2023 private placement offering, net of issuance costs


930,218

537,077

-

1,467,295

March 2023 private placement offering, compensation options


(26,443)

26,443

-

-

Bonus shares issued on July 2023 Debenture Offering


91,331

6,341

-

97,672

Bonus Amendment Shares


78,262

-

-

78,262

Bonus Replacement Shares


34,171

15,744

-

49,915

Exercise of warrants


318,065

(59,766)

-

258,299

Settlement of related party payable


-

208,084

-

208,084

Balance, December 31, 2023


49,404,596

14,151,188

(72,974,444)

(9,418,660)

.NEWTOPIA INC.
Unaudited Statements of Cash Flows
Years Ended December 31, 2023 and 2022
(Expressed in Canadian Dollars) 




2023

2022









$

$

Cash flows used in operating activities





Net loss and comprehensive loss



(6,600,347)

(7,700,463)

Items not involving cash:





Depreciation of property and equipment



5,935

46,387

Depreciation of right-of-use asset



.-

169,370

Impairment of intangible asset



2,409,314

-

Impairment of right-of-use asset



-

200,168

Lease modification



-

150,907

Amortization of intangible asset



826,049

68,838

Amortization of deferred finance charges



149,896

248,813

Capitalized borrowing costs



-

(67,000)

Debenture interest and accretion expense



558,311

184,848

Interest on lease obligations                                                     



28,110

70,797

Loss on disposal of property and equipment



-

15,534

Debt modification                                                                       



(54,972)

-

Share-based compensation                                                     



555,816

492,720

Loss on settlement of related party payable                         



10,086

-




(2,111,802)

(6,119,081)

Change in non-cash working capital





Trade and other receivables                                                     



156,681

(175,663)

Prepaid expenses and deposits                                              



104,800

125,149

Inventories                                                                                    



210,339

(194,571)

Trade and other payables                                                         



(560,689)

794,346

Contract asset/liability                                                                



(69,072)

(334,034)

Deferred revenue                                                                       



-

(11,364)




(2,269,743)

(5,915,218)

Cash flows used in investing activities





        Purchase of property and equipment



(2,548)

(3,826)

        Intangible asset development costs



-

(985,349)




(2,548)

(989,175)

Cash flows from financing activities





        Credit facility withdrawals



6,570,269

9,396,285

        Credit facility repayments



(6,626,808)

(6,904,054)

        Credit facility financing costs                                                 



(138,210)

(162,210)

        Proceeds from promissory notes



-

550,000

        Repayment of promissory notes



-

(550,000)

        Proceeds from debenture units, net of closing costs



2,165,645

1,316,964

        Repayment of lease obligation



(572,810)

(344,560)

        Proceeds from private placement offering, net of share issuance costs



1,467,295

3,136,334

        Proceeds from exercise of warrants                                    



258,299

-

    Repayment of debentures                                                      



(810,000)

-




2,313,680

6,438,759

Net change in cash during the year                                                  



41,389

(465,634)

Cash, beginning of year                                                                      



345,950

811,584

Cash, end of year                                                                                



387,339

345,950

Supplemental cash flow information





        Non-cash settlement of related party payable                                  



208,084

116,727

        Interest paid                                                                               



788,908

449,073

 

Unaudited Gross Profit Information








Three Months Ended March 31,


2024


2023


$


$

Revenue

1,814,000


2,648,657

Cost of revenue

(899,396)


(1,275,682)

Gross profit

914,604


1,372,975





Gross profit margin

50 %


52 %









Reconciliation of Total Operating Expenses to Adjusted Operating Expenses






Three Months Ended March 31,


2024


2023


$


$

Total expenses

2,123,975


2,745,802

Add (Subtract)




Share-based compensation

(73,665)


(93,290)

Depreciation of property and equipment

(735)


(1,549)

Interest and accretion expense

(267,361)


(169,695)

Interest on lease obligations

-


(12,590)

Finance charges

(129,025)


(109,648)

Amortization of deferred finance charges

(58,013)


(33,815)

Foreign exchange loss 

(3,308)


(18,272)

Adjusted operating expenses

1,591,868


2,306,943









Unaudited Adjusted Operating Loss 





Three Months Ended March 31,


2024


2023


$


$

Gross profit

914,604


1,372,975

Add amortization of intangible

-


206,514

Adjusted gross profit

914,604


1,579,489

Adjusted operating expenses

(1,591,868)


(2,306,943)

Adjusted operating loss

(677,264)


(727,454)

NEWTOPIA INC.
Condensed Interim Consolidated Statements of Financial Position (Unaudited)
As at March 31, 2024 and December 31, 2023
(Expressed in Canadian Dollars)                




March 31,

December 31,




2024

2023









$

$

 Assets





   Current assets





      Cash



329,562

387,339

      Trade and other receivables



1,367,427

1,400,959

      Contract asset



162,236

259,072

      Prepaid expenses and deposits



273,287

101,043

      Inventories



111,496

115,232

      Deferred costs



52,850

64,583




2,296,858

2,328,228






      Property and equipment



3,930

4,665




2,300,788

2,332,893

 Liabilities





   Current liabilities





      Trade and other payables



2,318,781

1,825,356

      Credit facility



4,588,213

4,767,006

      Deferred revenue 



48,185

48,185

   Debenture



3,836,502

3,723,530




10,791,681

10,364,077

      Debentures



1,412,236

1,387,476




12,203,917

11,751,553

 Equity/Deficit





      Common shares



49,754,858

49,404,596

      Contributed surplus



14,525,828

14,151,188

      Deficit                                          



(74,183,815)

(72,974,444)




(9,903,129)

(9,418,660)




2,300,788

2,332,893

NEWTOPIA INC.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited)
Three Months Ended March 31, 2024 and 2023
(Expressed in Canadian Dollars)




2024

2023









$

$






Revenue



1,814,000

2,648,657

Cost of revenue



899,396

1,275,682

Gross profit



914,604

1,372,975






Operating expenses





Technology and development



435,242

922,065

Sales and marketing



248,372

426,170

General and administrative



898,457

958,708

Share-based compensation



73,665

93,290

Depreciation of property and equipment



735

1,549




1,656,471

2,401,782

Other expenses





Interest on lease obligations                                                     



-

12,590

Interest and accretion expense                                                



267,361

169,695

Finance charges                                                                         



129,025

109,648

Foreign exchange loss                                                              



3,308

18,272

Loss on settlement of related party payable



9,797

-

Amortization of deferred finance charges                             



58,013

33,815




467,504

344,020

Net loss and comprehensive loss                                                                           



(1,209,371)

(1,372,827)

Loss per share





Basic and diluted



(0.01)

(0.01)

Weighted average number of common shares outstanding





Basic and diluted                                                                          



163,585,413

133,083,887

NEWTOPIA INC.
Condensed Interim Consolidated Statements of Changes in Equity (Deficit) (Unaudited)
Three Months Ended March 31, 2024 and 2023
(Expressed in Canadian Dollars)




Common

Shares

Contributed

Surplus

 

Deficit

 

Total



$

$

$

$

Balance, December 31, 2023


49,404,596

14,151,188

(72,974,444)

(9,418,660)

Net loss and comprehensive loss


-

-

(1,209,371)

(1,209,371)

Share-based compensation


-

73,665

-

73,665

Private Placement Offering of Units, net of issuance costs


373,549

267,891

-

641,440

Compensation options issued to brokers


(23,287)

23,287

-

-

Settlement of related party payable


-

9,797

-

9,797

Balance, March 31, 2024


49,754,858

14,525,828

(74,183,815)

(9,903,129)







Balance, December 31, 2022


47,978,992

12,861,449

(66,374,097)

(5,533,656)

Net loss and comprehensive loss


-

-

(1,372,827)

(1,372,827)

Share-based compensation


-

93,290

-

93,290

Settlement of related party payable


-

38,542

-

38,542

Private placement offering of Units, net of issuance costs


930,218

537,077

-

1,467,295

Compensation options


(26,443)

26,443

-

-

Balance, March 31, 2023


48,882,767

13,556,801

(67,746,924)

(5,307,356)

 

NEWTOPIA INC.
Condensed Interim Consolidated Statements of Cash Flows (Unaudited)
Three months Ended March 31, 2024 and 2023
(Expressed in Canadian Dollars) 




Three months Ended March 31,

Note



2024

2023









$

$

Cash flows used in operating activities:





Net loss and comprehensive loss



(1,209,371)

(1,372,827)

Items not involving cash:





Depreciation of property and equipment



735

1,549

Amortization of intangible asset



-

206,513

Amortization of deferred finance charges



58,013

33,816

Debenture interest and accretion expense



137,728

74,920

Interest on lease obligations                                                     



-

12,590

Share-based compensation



73,665

93,290

Loss on settlement of related party payable                         



9,797

-




(929,433)

(950,149)

Net change in non-cash working capital





Trade and other receivables                                                     



33,532

87,753

Prepaid expenses and deposits                                              



(172,244)

22,112

Inventories                                                                                    



3,736

110,595

Trade and other payables                                                         



493,424

(225,458)

Contract asset/liability                                                                



96,836

134,600)




(474,149)

(820,547)

Cash flows used in investing activities





Purchase of property and equipment



-

(1,099)




-

(1,099)

Cash flows from (used in) financing activities:





Credit facility withdrawals                                                         



1,433,004

1,415,546

Credit facility repayments                                                         



(1,611,792)

(1,804,900)

Credit facility financing costs                                                    



(46,280)

(14,500)

Repayment of lease obligations



-

(249,375)

Proceeds from private placement issuance of Units, net of issuance costs



641,440

1,467,295




416,372

814,066

Increase/(Decrease) in cash                                                              



(57,777)

(7,580)

Cash, beginning of period                                                                  



387,339

345,950

Cash, end of period                                                                             



329,562

338,370

_________________________________

1

Core gross profit is defined as revenue, which is comprised of onboarding welcome revenue, ongoing engagement fees and success fees, less cost of sales, which is comprised of Welcome Kit costs, compensation expense for Inspirators and care specialists and genetic testing costs. Gross margin percentage is calculated by dividing gross profit by total revenue for the defined period. The financial statements formally include intangible asset amortization in the gross profit calculation, although core gross profit is considered by management to be an integral measure of financial performance and represents the amount of revenues retained by the Company after incurring direct cash costs. However, gross profit is not a recognized measure of profitability under IFRS.

2

Adjusted operating expenses consist of all cash-based technology, sales and marketing and administrative expenses. Adjusted operating expense is not a measure of financial performance under IFRS and should not be considered a substitute for total operating expenses, which we believe to be the most directly comparable IFRS measure.

3

Adjusted operating loss consists of adjusted gross profit less adjusted operating expenses. Adjusted gross profit and operating loss is not a measure of financial performance under IFRS and should not be considered a substitute for loss from operations which we believe to be the most directly comparable IFRS measure.

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SOURCE Newtopia Inc.

Copyright 2024 Canada NewsWire

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