NIAGARA, Ontario, Oct. 18, 2023 (GLOBE NEWSWIRE) — extractX Ltd. (“extractX” or the “Company”), today announced financial results for its subsidiary extractX Incorporated (“EXI”) as at and for the year ended June 30, 2023. All figures are in Canadian dollars unless otherwise noted.
“At this early stage in the Company, we are very excited to be successfully advancing our strategy to deploy mobile extraction labs on a global scale, and are on a near-term path to profitability,” said Albert Iannantuono, CEO of extractX. “Our mobile labs, built to EU-GMP standards, are the right solution for our extraction partners as they provide a turn-key extraction solution that is scalable and low risk, providing speed-to-market for our partner’s products.”
2023 Operational Highlights
During the year ended June 30, 2023 and following the successful operation and proof-of-concept of the prototype mobile lab (v1.0), the Company accelerated its sales and marketing efforts on a global scale. Targeted sales and marketing programs include digital media, discussion papers, webcasts, social media, and industry advertising that reach audiences globally.
As a result of these focused sales and marketing activities, during the year ended June 30, 2023, the Company entered into two commercial contracts for the provision of extractX’s next generation mobile extraction labs (v2.0).
- The first contract is for the provision and operation of a mobile extraction lab to a client partner in Franklin, Kentucky. The lab was successfully shipped in March 2023, and the extractX installation team completed the installation and commissioning of the lab within 4 weeks. The lab was operational shortly thereafter, and successfully processing biomass to distillate. During the initial phase of this three year contract the mobile lab generated $241,323 of revenue for the year ended June 30, 2023. Through the process, the extractX team identified and implemented additional productivity upgrades and operational changes as part of the Company’s continuous improvement program.
- The second contract is for the provision of a mobile lab to a client partner in Chiang Mai, Thailand for a three year contract to process CBD from hemp. In mid-July 2023 the mobile lab was shipped from the manufacturing facility in Winnipeg and arrived in Chiang Mai on September 18, 2023. Using the Company’s Installation & Commissioning Guide, as well as support from the extractX team, the team in Thailand were able to get the lab operational within the expected timeframe.
With the Company’s mobile lab v2.0 deployed and operational in two locations, the Company is now developing mobile lab v3.0, which is expected to provide a substantial increase in biomass throughput over the previous v1.0 and v2.0 mobile labs. This increase in throughput is expected to be accomplished using the same footprint as the v2.0 lab.
The Company is also currently designing an approved v2.0 lab to meet EU GMP regulations and standards, which will enable extractX to provide pharmaceutical-grade mobile labs for the pharmaceutical sector. This will be the production model and standard as the Company moves forward. These initiatives were supported in part through a 50% cost sharing grant under the Agricultural Clean Technology Program of the Canadian Government.
The Company’s sales and marketing programs continue to generate qualified leads from around the globe and management is in various stages of discussion and contract negotiations with several parties.
2023 Financial Highlights
Selected audited financial highlights for the years ended June 30, 2023, June 30, 2020, and June 30, 2019 (unaudited) include the following:
| Years Ended | ||||||
| (in $CDN) | Jun 30, 2023 $ |
Jun 30, 2020 $ |
Jun 30, 2019 $ |
|||
| Contract revenue | 241,323 | 1,409,237 | – | |||
| Extraction wages and supplies | 218,643 | 405,431 | – | |||
| Gross profit | 22,680 | 1,003,806 | – | |||
| Expenses | ||||||
| Corporate and operations salaries | 590,528 | 408,567 | – | |||
| Operating and administrative | 1,210,334 | 829,892 | 215,585 | |||
| Amortization of capital assets, net of credits | 295,924 | 274,866 | – | |||
| 2,096,786 | 1,513,325 | 215,585 | ||||
| Net loss before other income and expenses | (2,074,106 | ) | (509,519 | ) | (215,585 | ) |
| Other income and expenses | 409,019 | 55,118 | 1,423 | |||
| Write-off of mobile extraction lab | (532,086 | ) | – | – | ||
| Net income (loss) before other income and expenses per share | (0.09 | ) | (0.02 | ) | (0.01 | ) |
| Net income (loss) | (2,197,173 | ) | (454,401 | ) | (214,162 | ) |
| Net income (loss) per share | (0.09 | ) | (0.02 | ) | (0.01 | ) |
| Total assets | ||||||
| Cash | 1,077,898 | 721,095 | 855,784 | |||
| Other current assets | 1,513,659 | 559,079 | 759,419 | |||
| Capital and other assets | 4,344,512 | 3,936,328 | 2,108,522 | |||
| 6,936,069 | 5,216,502 | 3,723,725 | ||||
| Total long-term liabilities | ||||||
| Deposits on contracts | 923,881 | – | 653,800 | |||
| Other current liabilities | 658,933 | 1,016,233 | 585,038 | |||
| Deferred contributions | 987,176 | 514,077 | 786,294 | |||
| Long term debt | 33,285 | 40,000 | 20,000 | |||
| 2,603,275 | 1,570,310 | 2,045,132 | ||||
| Shareholders’ Equity | 4,332,794 | 3,646,192 | 1,678,593 | |||
| % of equity in total assets | 62.47 | 69.90 | 45.08 | |||
Financial Statements
The consolidated financial statements of the Company as at and for the year ended June 30, 2023 and accompanying management’s discussion and analysis have been filed with the securities regulators and are available on SEDAR at www.sedar.com under the Company’s issuer profile.
No stock exchanges have reviewed or accepted responsibility for the adequacy or accuracy of the content of this press release.
About extractX Ltd.
extractX designs, builds, and operates industrial scale self-contained mobile extraction laboratories equipped with the most effective and reliable equipment, allowing for efficient 24/7 operation, and unlimited scalability to meet the demand of any size operation. Built to GPP/GMP/EU GMP standards, extractX purpose builds mobile extraction laboratories to service biomass cultivators and producers wherever and whenever the service is needed, onsite and on demand anywhere in the world.
Forward-Looking Statements
Certain statements contained herein constitute forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and 21E of the Exchange Act of 1934. Such statements include, without limitation, statements regarding business and financing, business trends and future operating revenues and expenses. Statements regarding the aforementioned are based on several assumptions and are not to be considered fact. Although extractX Ltd. believes that the statements are reasonable, it can give no assurances that such expectation will prove to be correct. Investors are cautioned that any forward-looking statements made by extractX Ltd. contain no guarantee of future performance and that actual results may differ materially from those set forth in the forward-looking statements. For additional information see the reports filed by the company in its securities filings with applicable securities regulators (currently available at www.sedar.com).
Unless otherwise required by applicable securities laws, extractX Ltd. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
