(TSXV: PGV)

TORONTO, November 16, 2021 / CNW / – Prodigy Ventures Inc. (TSXV: PGV) (“Prodigy” or the “Company”) today announced financial results for the three and nine months ended September 30, 2021.

“Prodigy is actively building its pipeline for its tunnel open bank and IDVerifact digital identity platforms. The market reaction to both offers is strong and is an encouraging sign for future growth in 2021 and beyond, ”said Tom beckerman, Chairman and CEO of Prodigy. “The company’s backbone to a platform-based recurring revenue model is now well underway, with our services business also realigning to support our industry-leading platforms. “

Third Quarter 2021 Financial Results

  • Turnover for the three months ended September 30, 2021 totaled $ 3,403,466 compared to $ 3,787,029 for the three months ended September 30, 2020, a decrease of 10%.

  • Gross margin for the three months ended September 30, 2021 of $ 1,065,487 compared to $ 1,101,009 for the three months ended September 30, 2020, a decrease of 3%.

  • Operating expenses for the three months ended September 30, 2021 of $ 1,460,125 compared to $ 862,654 for the three months ended September 30, 2020, an increase of 69%.

  • Net loss for the three months ended September 30, 2021 totaled $ 390,979 compared to the net income of $ 163,976 for the three months ended September 30, 2020.

  • Adjusted EBITDA for the three months ended September 30, 2021 negative total $ 166,341 compared to positive $ 316,762 for the three months ended September 30, 2020.

  • The Company had working capital of $ 3,551,956 from September 30, 2021 compared to $ 2,715,694 from December 31, 2020.

Cumulative financial results for 2021

  • Revenue for the nine months ended September 30, 2021 totaled $ 9,977,459 compared to $ 12,365,324 for the nine months ended September 30, 2020, a decrease of 19%.

  • Gross margin for the nine months ended September 30, 2021 of $ 2,848,104 compared to $ 3,475,420 for the nine months ended September 30, 2020, a decrease of 18%.

  • Operating expenses for the nine months ended September 30, 2021 of $ 3,304,039 compared to $ 3,143,470 for the nine months ended September 30, 2020, an increase of 5%.

  • Net loss for the nine months ended September 30, 2021 totaled $ 455,372 compared to the net income of $ 215,234 for the nine months ended September 30, 2020.

  • Adjusted EBITDA for the nine months ended September 30, 2021 negative total $ 44,523 compared to positive $ 561,764 for the nine months ended September 30, 2020.

Three months ended
September 30

Nine months ended
September 30

2021

$

2020

$

2021

$

2020

$

Returned

3,403,466

3,787,029

9 977 459

12,365,324

Gross profit

1,065,487

1,101,009

2 848 104

3,475,420

Expenses

1,460,125

862 654

3,304,039

3,143,470

Net and comprehensive income for the period

(390,979)

163,976

(455,372)

215,234

Net earnings (loss) per share – basic and diluted

(0.00)

0.00

(0.00)

0.00

Adjusted EBITDA(1)

(166,341)

316 762

(44,523)

561 764

(1)

Adjusted EBITDA is a non-GAAP financial measure, which is defined as earnings before income taxes, finance charges, depreciation and amortization, and stock-based compensation. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in our business performance. Adjusted EBITDA is used by management to assess our operational performance. The presentation of Adjusted EBITDA is intended to provide additional information useful to investors and analysts and the measure does not have any standardized meaning under IFRS. Adjusted EBITDA should therefore not be considered in isolation or used as a substitute for performance measures prepared in accordance with IFRS. Other issuers may calculate Adjusted EBITDA differently.

(2)

For more information on non-GAAP financial measures, including a quantitative reconciliation to Adjusted EBITDA, please see the Company’s MD&A for the three and nine months ended September 30, 2021 under the heading “Measures non-GAAP financial statements ”.

The complete unaudited financial statements and related MD&A are available under the Company Profile at www.sedar.com or on the Company’s website at www.prodigy.ventures.

The Company also announced that it has canceled a total of 159,334 common shares issued as part of the Ficanex acquisition earlier this year. The cancellation of the shares was made to reflect a post-closing adjustment to the purchase price paid in connection with the acquisition. The cancellation was effective November 9, 2021.

About Prodigy Ventures Inc.

Prodigy offers Fintech innovation. The company provides leading-edge platforms, including IDVerifact ™ for digital identity and tunl. ™ for open banking and customer chat support, coupled with seamless integration of our partners’ best fintech platforms. Our service company, Prodigy Labs ™, integrates and customizes our platforms to the unique needs of corporate clients, and provides technology services for digital identity, open banking, payments and digital transformation. Digital transformation services include strategy, architecture, design, project management, agile development, quality engineering, and staffing. Prodigy has been recognized as one of the from Canada fastest growing companies with multiple awards.

Forward-looking statements and cautions

Certain information contained in this press release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, ” power ”,“ intend ”,“ could ”,“ could ”,“ should ”,“ believe ”and similar expressions. Although the Company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions and that information obtained from third-party sources is reliable, it cannot guarantee that these expectations will prove to be correct. Readers are cautioned not to place undue reliance on any forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will be achieved. By their nature, forward-looking statements involve many assumptions, known and unknown risks and uncertainties that contribute to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved, which may cause them to differ. actual results of future periods. materially any estimates or projections of performance or future results expressed or implied by these forward-looking statements. These risks and uncertainties include, among others, the risk factors set out in the Company’s MD&A for the three and nine months ended. September 30, 2021, a copy of which is filed on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be considered exhaustive. These statements are made as of the date hereof and unless otherwise required by law, the Company does not intend, nor assumes any obligation, to update these forward-looking statements.

Non-GAAP financial measures

Our financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). Certain financial measures in this press release are not prescribed by GAAP. These non-GAAP financial measures are included because management uses the information to analyze operating performance. These non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. Unless otherwise indicated, these non-GAAP measures are calculated and disclosed on a consistent basis from period to period.

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

SOURCE Prodigy Ventures Inc.

Cision

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