Gatekeeper Reports $9.8M Revenue, 101% YoY Growth, and $2.3M Net Income in Record Breaking Fiscal Q1 2024
Abbotsford, British Columbia–(Newsfile Corp. – January 29, 2024) – Gatekeeper Systems Inc. (TSXV: GSI) (OTC Pink: GKPRF) (‘Gatekeeper’ or the ‘Company’) a video and data solutions provider for public transportation and smart cities, reports its financial results for the three months ended November 30, 2023, and engages liquidity services provider.
Highlights for First Fiscal Quarter Ended November 30, 2023
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Revenue was $9,824,743 which compares to $4,885,058 for the same prior year comparable period, representing an increase of 101%;
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Gross margin was $4,778,045 which compares to $1,546,118 for the same prior year comparable period, representing an increase of 209%. Gross margin as a percentage of revenue was 49%, compared to 32% for the same prior year comparable period;
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Total comprehensive income was $2,341,112, or $0.02 per share, which compares to total comprehensive loss of $86,014, or $(0.00) per share for the same prior year comparable period; and
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At November 30, 2023, the Company had working capital of $15,189,418, no borrowed-money debt, and approximately 92 million shares outstanding.
Management Commentary
Doug Dyment, President and CEO, commented, “These are the strongest first fiscal quarter financial results in our history by a wide margin. Both the school and transit segments of our business are exhibiting solid growth based on our Platform as a Service (PaaS) business model. The installed base of Mobile Data Collectors (MDCs) has grown to more than 50,000, and we are now actively preparing and selling recurring-revenue solutions to help our customers monitor and optimize the vast amounts of video and data being recorded every day. These new offerings utilize AI, video analytics, hosted software solutions, and wireless data connectivity, and they form the data layer in our PaaS business model that enables Gatekeeper’s evolution as a data company.”
Selected Financial Information
| For the three months ended | ||||||
| November 30, 2023 | November 30, 2022 | |||||
| Revenue | $ | 9,824,743 | $ | 4,885,058 | ||
| Cost of Sales | $ | 5,046,698 | $ | 3,338,940 | ||
| Gross Profit | $ | 4,778,045 | $ | 1,546,118 | ||
| Gross Margin Percentage | 49% | 32% | ||||
| Expenses | $ | 2,659,053 | $ | 2,164,721 | ||
| Operating Income (Loss) | $ | 2,118,992 | $ | (618,603 | ) | |
| Comprehensive Income (Loss) for the period | $ | 2,341,112 | $ | (86,014 | ) | |
| Earnings (Loss) per share – | ||||||
| Basic | $ | 0.02 | $ | (0.00 | ) | |
| Diluted | $ | 0.02 | $ | (0.00 | ) | |
| November 30, 2023 | August 31, 2023 | |||||
| Total Assets | $ | 22,114,064 | $ | 19,609,579 | ||
| Total Liabilities | $ | 4,008,116 | $ | 3,866,678 | ||
| Total Shareholders’ Equity | $ | 18,105,948 | $ | 15,742,901 | ||
Full details of the financial reports and operating results for the first fiscal quarter ended November 30, 2023, are described in the Company’s unaudited consolidated financial statements with accompanying notes and related Management’s Discussion and Analysis, available on SEDAR+ at www.sedarplus.ca.
The Company also announces it has engaged Velocity Trade Capital Ltd. (“Velocity Trade”) to provide market stabilization and liquidity services to the Company in accordance with applicable securities laws and the polices of the TSX Venture Exchange. Velocity Trade will receive $5,000 per month for their services from the Company’s available cash. There are no additional performance factors, shares, or options offered as compensation. The Company and Velocity Trade are unrelated and unaffiliated entities and Velocity Trade has no interest, directly or indirectly, in the Company or its securities. The services provided by Velocity Trade will commence on February 1, 2024 for an initial term of two months, after which either party may terminate the agreement with 30 days written notice. The engagement with Velocity Trade is subject to approval by the TSX Venture Exchange.
Velocity Trade is a private and independent investment dealer headquartered in Toronto, Ontario, and registered for trading in the provinces of Ontario, British Columbia, Alberta, and Manitoba. Velocity Trade is a member of the TMX, and of the Canadian Investment Regulatory Organization (“CIRO”). Additionally, the firm and its affiliate companies are regulated internationally by the UK’s Financial Conduct Authority (FCA), the Authority for Financial Markets (AFM) in the Netherlands, the Australian Securities and Investment Commission (ASIC), South Africa’s Financial Sector Conduct Authority (FSCA), and the Monetary Authority of Singapore, among others.
About Gatekeeper Systems Inc.
Gatekeeper is a leading provider of intelligent video and data solutions designed to provide a safer transportation environment for children, passengers, and public safety personnel on multiple transportation modes. The Company uses AI, video analytics, and Mobile Data Collectors to inter-connect public transportation assets within a Smart City ecosystem. The Company’s Platform-as-a-Service (PaaS) business model is centered around wirelessly enabled Mobile Data Collectors which forms the foundation of the Company’s data company evolution. www.gatekeeper-systems.com
Contact Information:
Douglas Dyment
President & CEO
ddyment@gatekeeper-systems.com
(604) 864-6187
Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. For more exhaustive information on these risks and uncertainties, the reader should refer to the risk factors described in the management’s discussion and analysis for the period ended November 30, 2023. The forward-looking statements contained in this press release represent our expectations as of the date hereof. We disclaim any intention and assume no obligation to update or revise any forward-looking statements. Forward-looking statements are presented for the purpose of providing information about management’s current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.
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.
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