Edge Total Intelligence Inc Reports Results for Fourth Quarter and Full Year 2021

ARLINGTON, Va., May 02, 2022 (GLOBE NEWSWIRE) — Edge Total Intelligence Inc. (TSXV: CTRL/ FSE:Q5i) (“edgeTI”, “we”, “our” or the “Company”), a leader in real-time digital operations solutions, announces operating and consolidated results for the fourth quarter and year ended December 31, 2021.

Financial information is expressed in United States (US) dollars unless otherwise indicated.

Readers should refer to the Company’s audited annual financial statements and related management discussion and analysis for the year ended December 31, 2021, that are posted on its profile on SEDAR (www.sedar.com).

Highlights

– Subscription Revenues Grew 59% to reach $2.27 Million
– Completed Migration to SaaS-like Subscription Model featuring Recurring Revenue
– Completed Reverse Acquisition and Raise of $3.8 Million net of share issuance costs
– Release of DevOps automation and low-code capabilities enabled customer expansion and new opportunities.

“The fourth quarter marked the completion of multiple milestones, with the reverse acquisition and private placement of $3.8 million net of share issuance costs. Our sales team completed the transition to a SaaS-like subscription-based recurring revenue model, which led to lower revenues compared to the prior year. We believe this was a temporary headwind to our reported revenue growth as we achieved an adjusted EBITDA of $22,246 and grew exit Q4 2021 monthly recurring revenue (MRR) sequentially from Q3 2021. As trade shows began to return to in-person events, several new public sector opportunities from the DoDIIS conference (sponsored by Defense Intelligence Agency) increased our pipeline. Our support and development teams rallied to serve customers through the holiday season in response to the Apache Log4J zero-day vulnerabilities that impacted thousands of software titles and products and their respective customers.”

Commenting on 2021 and the Company’s outlook, Jim Barrett, Chief Executive Officer, said:

“Beyond the reverse acquisition milestone to become a public company, edgeTI grew subscription software licenses 59% year-over-year, which will help create shareholder value in the long run as we transition to a subscription-driven business model. Our platforms are embedded in the critical operations and ultimately become a direct cost of a service or operating expense. Gross margins for the Company moved downward by 12% as we remained committed to customer-led development and buyer demand which resulted in new customer wins and expanded uses for our products. We are extremely proud of the efforts of our people in driving the ingredients needed for our growth and their exemplary efforts in serving our clients and industry stakeholders through all market conditions. Moving forward, edgeTI will execute its growth strategy: 1) increasing awareness across our industry and investors through programs like Gartner’s Emerging Tech CEO Program; 2) adding strategic partnerships and sales resources to expand wins in our proven use cases; 3) continuing to remove barriers to adoption and accelerate the achievement of customer value; and 4) being mindful of customer challenges and needs that we believe will deepen relationships and expand our ability to address more customers.”

Events subsequent to Fiscal year-end

Outlook

Continual threats, challenges, and opportunities require public and private organizations to achieve greater agility and efficiency when making decisions and executing them. Digital Transformation (“DX”) is the means to address these needs. According to the IDC Statista Research Department, spending on DX worldwide in 2022 is projected to reach US$1.8 trillion and by 2025, global DX spending is forecast to reach US$2.8 trillion. The Company’s platform, edgeCore™, facilitates DX with its unique capabilities that accelerate success and lower the cost of operations by bringing intelligence and execution together in a single system that does not add a new data store. Operationally, the Company is executing its growth plan and driving monthly recurring revenue subscriptions.

Related Party Disclosure

As a result of Lotus being a controlling shareholder of the Company, and Christian Mack and David Roman being insiders of Lotus and also directors of the Company, the Conversion is considered to be a related party transaction under applicable securities laws. Where available, the Company has relied upon exemptions in respect of the formal valuation and minority shareholder approval requirements under applicable securities laws. The Conversion is not subject to the formal valuation requirements under Multilateral Instrument 61-101 –Protection of Minority Security Holders in Special Transactions (“MI 61-101”), and the Company has relied upon the exemption in paragraph (b) of section 5.7(1) of MI 61-101 as the fair market value of the securities issued pursuant to the Conversion does not exceed $2,500,000 and meets the other requirements set out in paragraph (b).

About edgeTI

Edge Total Intelligence (“edgeTI”) helps customers achieve the impossible with its real-time digital operations software, edgeCore™. Global enterprises, service providers, and governments are more profitable when insight and action are united to deliver fluid experiences via the platform’s low-code development capability. With edgeTI, customers improve their margins and agility by rapidly transforming siloed systems and data across evolving situations in business, technology, and cross-domain operations. Traded on: TSXV: CTRL FSE: Q5i

Learn more at https://edgeti.com/investors.

On behalf of the Board of Directors

Jim Barrett
CEO
Edge Total Intelligence Inc.

Jason James
CFO
Edge Total Intelligence Inc.

For further information contact:

Nick Brigman
Phone: 888-771-3343
Email: ir@edgeti.com  

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Information and Statements

Certain statements in this news release are forward-looking statements or information for the purposes of applicable Canadian and US securities law, including statements regarding The Company’s transition to a subscription-driven business model, the execution of the Company’s growth strategy, the anticipated future worldwide spending on DX, the Company’s expectations for its 2022 MRR and ARR and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic, and capital market conditions.

Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include the continued availability of capital and financing, the impact of Covid-19 or other viruses and diseases on the Company’s ability to operate, competition, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.