Toronto, Ontario–(Newsfile Corp. – November 29, 2024) – Tenet Fintech Group Inc. (CSE: PKK) (OTCQB: PKKFF) (“Tenet” or the “Company”), an innovative analytics services provider and operator of CubelerĀ® Business Hub, today announced its financial results and operating highlights for the three and nine month periods ended September 30, 2024 and September 30, 2023. Tenet reported revenue of $205,582, total expenses of $24,897,807, which included an expected credit loss provision of $18,715,423 recorded by the Company due to the de facto pause in activity on its platforms in China as it continues to transition its model of revenue in that market, and a net loss of $24,692,225 for the quarter. All amounts in this press release are in Canadian dollars unless otherwise indicated.
Third Quarter 2024 Financial Highlights
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Total (EPA:) Revenue of $205,582
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EBITDA of ($22.33 million)
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Net loss of ($24.69 million)
| Reconciliation of Net Loss to EBITDA and Adjusted EBITDA for the 3-month period ended September 30, 2024 | |
| Net loss for the period | ($24,692,225) |
| Add: | |
| Income tax | $ – |
| Financial costs | $708,891 |
| Depreciation of property and equipment | $33,589 |
| Depreciation of assets due to right of use | $81,481 |
| Amortization of intangible assets | $1,499,444 |
| Amortization of financing issuance costs | $36,014 |
| EBITDA1 | ($22,332,806) |
| Add (less): | |
| Change in fair value of contingent consideration payable | ($154,080) |
| Change in fair value of bond conversion options | ($2,300) |
| Loss from investment in associated company | $ – |
| CEBA Loan Forgiveness | $ – |
| Loss due to subletting | $ – |
| Gain on disposal of property and equipment | $2,715 |
| adjusted EBITDA2 | ($22,486,471) |
(1) EBITDA is a non-IFRS financial measure provided to help readers determine the Company’s ability to generate cash flows from operations and cover financial charges. It is also widely used for business valuation purposes. This measure does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
EBITDA is equivalent to the result before income taxes, depreciation of property and equipment, depreciation of right-of-use assets, amortization of intangible assets, amortization of financing issuance costs and financial costs, as defined in Note 24.4 of the Audited Consolidated Financial Statements for the years ended December 31, 2023 and December 31, 2022.
(2) Adjusted EBITDA is equal to the EBITDA described above adjusted for the change in fair value of contingent consideration payable, change in fair value of debenture conversion options, impairment of goodwill, impairment of intangible assets, the gain on the purchase at a bargain price, the loss on the investment in a related company. company, deterioration of the investment in a related company and loss in a legal settlement.
SUMMARY OF FINANCIAL AND OPERATING RESULTS FOR THE THIRD QUARTER
While the Company’s revenue continued to decline as expected as its Chinese operations prepare to adopt the Company’s new data-centric business model, the Company took another step toward that new business model with the beta launch of the Advertising and Networks modules of your Cubeler Business Hub shortly. after the end of the quarter. This announced that the Company would be in a position to add a sufficient number of SMEs to the Business Hub during the last quarter of 2024 to be able to commercially launch the Company’s first data-driven ie-Pulse product.
In summary, the Company generated revenue of $205,582 for the three-month period and $1,685,160 for the nine-month period ended September 30, 2024, compared to $9,244,460 for the three-month period and $35,514,978 for the nine-month period ended on September 30. 2023.
Total pre-tax expenses for the quarter amounted to $24,897,807 compared to $53,133,401 for the same period in 2023. Net loss for the third quarter of 2024 was $24,692,225 compared to a net loss of $43,002,953 for the same period in 2023.
Complete details of the Company’s third quarter 2024 financial results can be found in the Unaudited Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis (MD&A) for periods three and nine months ended September 30, 2024 and September 30, 2023. which are available at www.sedarplus.com.
Third Quarter 2024 Results and 2024 Outlook Q&A
Tenet CEO Johnson Joseph will answer shareholder questions related to the company’s third quarter 2024 results and provide his perspective on what’s to come for the remainder of 2024 in a Q&A interview. Shareholders are encouraged to read the Company’s MD&A before submitting questions relating to these matters to the Company by 9:00 pm EST on December 5, 2024 at investors@tenetfintech.com or cathy@chfir.com . The interview will be posted on the company’s website by 5:00 pm EST on December 10, 2024.
About Tenet Fintech Group Inc.:
Tenet Fintech Group Inc. is the parent company of a group of innovative financial technology (Fintech) and artificial intelligence (AI) companies. All references to Tenet in this press release, unless explicitly stated, include Tenet and all of its subsidiaries. Tenet subsidiaries offer various analytics and AI-based products and services to businesses, capital markets professionals, government agencies, and financial institutions, either through or leveraging data collected by CubelerĀ® Business Hub, a global ecosystem where analytics and artificial intelligence are used to create opportunities and facilitate B2B transactions between its members. Visit our website at: https://www.tenetfintech.com/.
Forward-looking information
Certain statements in this press release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as “plan,” “continue,” “expect,” “project,” “intend,” “believe,” “anticipate,” “estimate,” “may,” “might,” potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause Tenet’s actual results, performance or achievements to be materially different from the prospects or any future results, performance or achievements implied by such statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements contained in this press release include, but are not limited to, a holding company with significant operations in China; general economic and business conditions, including factors affecting the Company’s business in China, such as pandemics and COVID-19; legislative and/or regulatory developments; global financial conditions, repatriation of profits or transfer of funds from China to Canada, operations in foreign jurisdictions and possible exposure to corruption, bribery or civil unrest; actions of regulators; uncertainties of investigations, proceedings or other claims and litigation; timing and completion of capital programs; liquidity and capital resources, negative operating cash flow and additional financing, dilution from additional financing; financial performance and capital timeliness; and other risks detailed from time to time in reports filed by Tenet with securities regulators in Canada. The Management Discussion and Analysis (MD&A) should also be referenced in Tenet’s annual and interim reports, the Annual Information Form, filed with Canadian securities regulators and available through the Document Analysis and Retrieval System. Electronic (SEDAR+) in Tenet’s profile at www.sedarplus. .ca, for a description of the main risk factors related to Tenet. Although Tenet has attempted to identify certain factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. .
Forward-looking statements reflect information as of the date they are made. The Company undertakes no obligation to update or revise any forward-looking statements to reflect future events, changes in circumstances or changes in beliefs, unless required by applicable securities laws. Should the Company update any forward-looking statement, no inference should be drawn that the Company will make any further updates with respect to that statement, related matters or any other forward-looking statements.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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