WATERLOO, Ontario--(BUSINESS WIRE)--
Magnet Forensics Inc. (“Magnet Forensics” or the “Company”) (TSX: MAGT), a developer of digital investigation solutions for more than 4,000 enterprises and public safety organizations in over 100 countries, today announced its financial and operational results for the three months (“Q2 2022”) and six months (“YTD 2022”) ended June 30, 2022. Financial references are in U.S. dollars unless otherwise indicated.
Q2 2022 Financial Highlights
(Comparison periods in each case are the three months ended June 30, 2021, unless otherwise stated)
-
Revenue of $23.1 million in Q2 2022, an increase of 41%
-
Gross Margin of 93% in Q2 2022, compared to 94% in Q2 2021
-
Net income (loss) of $(1.0) million in Q2 2022, compared to $1.6 million in Q2 2021
-
Adjusted EBITDA
1
of $3.5 million in Q2 2022, compared to $4.4 million in Q2 2021
-
Annual Recurring Revenue
2
(“ARR”) of $73.7 million as of June 30, 2022, an increase of 49% from the prior year
1) Non-IFRS measure. See "Non-IFRS Financial Measures" and the reconciliation to the most directly comparable IFRS measure included in this press release
2) Key Performance Indicator. See "Key Performance Indicators"
“With continued strong demand in our end markets across both private enterprise and the public sector, we delivered 41% topline growth in the quarter. Cybercrime and crimes with digital evidence associated with them continue to grow globally. Our customers are investing in solutions that support their missions to solve crimes and protect corporate assets, despite the current macro-economic headwinds,” said Adam Belsher, CEO of Magnet Forensics. “We have increased our topline growth outlook for 2022. We are prudently managing our investments in future growth and we are prioritizing key investments, based on the positive unit economics of our suite of innovative solutions and our proven capability to expand within a new account once we land them. With our consistent ARR growth of nearly 50% and positive Adjusted EBITDA1, our ability to scale the business profitably is a key differentiator for our shareholders.”
Q2 2022 Highlights
(Comparison periods in each case are the three months ended June 30, 2021, unless otherwise stated)
-
Revenue of $23.1 million, an increase of 41% compared to $16.5 million, primarily due to a $4.0 million increase in software maintenance and support revenue and a $2.7 million increase in term license revenue, each of which are a result of growth within the Company’s customer base. The transition to a greater proportion of term license revenue compared to perpetual license revenue is part of the Company’s strategy to increase term license contracts. This transition to term-based products has increased the proportion of term license support as a percentage of total Software Maintenance and Support revenue to 56% as of June 30, 2022, compared to 33% at the same point in 2021. Total Recurring Revenue1 was $20.0 million, representing 86% of total revenue.
-
Annual Recurring Revenue2 grew to $73.7 million as of June 30, 2022, an increase of 49% compared to $49.6 million as of June 30, 2021. The growth in ARR was primarily due to higher License - term revenue due to an overall increase in licenses sold and higher Software maintenance and support revenue from growth in the user base.
-
Gross Margin was 93%, compared to 94%. The change is primarily due to increased growth in Software License and Software Maintenance and Support Revenue, partially offset by the increased professional services, which is lower margin revenue than licence or maintenance and support revenue, and software maintenance and support cost of sales.
-
Net Income (loss) was $(1.0) million, a decrease of $2.6 million compared to $1.6 million in Q2 2021. The change is primarily due to increased investments in Sales & Marketing and Research & Development, including restricted share unit expenses for awards granted since IPO, as well as acquisition-related expenses.
-
Adjusted EBITDA1 was $3.5 million, a decrease of $1.0 million from the prior period, primarily due to investments mentioned above.
-
Cash of $116.0 million, compared to $118.1 million as of December 31, 2021, a change of $2.1 million.
-
The Company won new customers across each of its public safety and private enterprise markets, including Europe, Asia, and North America.
-
The current prospect pipeline is robust and continues to build based on interest in: 1) the Company’s core Magnet AXIOM and Magnet AXIOM Cyber offerings; 2) the Magnet Digital Investigation Suite (MDIS); and 3) with the investments made during the past 12 months in Sales & Marketing team.
-
The Company’s approach of consistent and rapid innovation supported multiple software updates across its product portfolio, including updates to its core products Magnet AXIOM and Magnet AXIOM Cyber and product updates for the Magnet Digital Investigation Suite (MDIS) with new innovations of Magnet AUTOMATE and Magnet REVIEW.
1) Non-IFRS measure. See "Non-IFRS Financial Measures" and the reconciliation to the most directly comparable IFRS measure included in this press release
2) Key Performance Indicator. See "Key Performance Indicators"
Financial Outlook
The Company updated its outlook for Revenue and Adjusted EBITDA for the year ended December 31, 2022, which are anticipated to be in the following ranges:
-
Revenues of $92.5 - $94.5 million, representing 32% - 34% growth over Fiscal 2021, with the contribution of growth across the four periods distributed similar to prior years, with Q4 and Q3 representing a greater contribution.
-
Adjusted EBITDA1 of $13.75 - $15.75 million, representing margins of 15% - 17%.
1) Non-IFRS measure. See "Non-IFRS Measures" and the reconciliation to the most directly comparable IFRS measure included in this press release
Notice of Conference Call
Magnet Forensics will host a conference call, today, Wednesday, August 10, at 8:00 am Eastern Time to discuss its financial results. Mr. Adam Belsher, Chief Executive Officer, and Mr. Peter Vreeswyk, Chief Financial Officer, will jointly chair the call. All interested parties can join the call by dialling (438) 803-0557 or (888) 440-2132 with the conference identification of 9128531. Please dial in 15 minutes prior to the call to secure a line. A live audio webcast of the conference call will also be available from the events page of the investor relations section of Magnet Forensics’ website at https://investors.magnetforensics.com.
About Magnet Forensics
Founded in 2010, Magnet Forensics is a developer of digital investigation software that acquires, analyzes, reports on, and manages evidence from digital sources, including computers, mobile devices, IoT devices and cloud services. Magnet Forensics’ software is used by more than 4,000 public and private sector customers in over 100 countries and helps investigators fight crime, protect assets and guard national security.
Non-IFRS Financial Measures
This press release contains certain non-IFRS financial measures, specifically Adjusted EBITDA and Total Recurring Revenue. These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. These non-IFRS measures are used to provide investors with supplemental measures of the Company’s operating performance and liquidity and thus highlight trends in its business that may not otherwise be apparent when relying solely on IFRS measures. The Company also believes that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers. The Company’s management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management and executive compensation.
“Adjusted EBITDA” represents net income (loss) as a percentage of total revenue, respectively, adjusted to exclude depreciation and amortization, income tax expense (recovery), share-based compensation expense, foreign exchange loss (gain), interest expense (income), certain financing-related expenses that are non-recurring in nature, and certain acquisition-related expenses that are non-recurring in nature and not indicative of continuing operations. The Company uses Adjusted EBITDA as a supplemental measure to review and assess operating performance, assess its ability to generate cash-based earnings, as well as provide a more complete understanding of factors and trends affecting the Company’s business that may not otherwise be apparent when relying solely on IFRS measures.
The following table reconciles net income to Adjusted EBITDA for the three months and six months ended June 30, 2022 and June 30, 2021 (expressed in thousands of US dollars):
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
Net income (loss)
|
($1,018)
|
$1,590
|
|
($1,912)
|
$4,368
|
|
Depreciation and amortization1
|
880
|
486
|
|
1,648
|
990
|
|
Income tax expense (recovery)
|
(719)
|
601
|
|
(1,197)
|
1,608
|
|
Share-based compensation2
|
1,863
|
467
|
|
3,886
|
521
|
|
Foreign exchange loss (gain)3
|
263
|
67
|
|
626
|
132
|
|
Interest expense (income)
|
(17)
|
128
|
|
65
|
256
|
|
Financing-related expenses4
|
45
|
1,084
|
|
63
|
1,382
|
|
Acquisition-related expenses5
|
2,165
|
-
|
|
2,734
|
-
|
|
Adjusted EBITDA
|
$3,462
|
$4,423
|
|
$5,913
|
$9,257
|
________________
|
Notes:
(1) Depreciation and amortization expenses are primarily related to right-of-use assets and property and equipment. Depreciation and amortization expense for the three and six months ended June 30, 2022 includes recognized depreciation expense on right-of-use assets of $216 and $417 (June 30, 2021 - $196 and $415). For the three and six months ended June 30, 2022 interest expense related to lease liabilities was $83 and $169 (June 30, 2021- $100 and $191).
(2) These expenses represent non-cash expenses recognized in connection with the issuance of share-based compensation to employees and directors, excluding share-based compensation related to acquired businesses of $320 and $366, for the three and six months ended June 30, 2022.
(3) These losses relate to foreign exchange translation on financial assets and liabilities.
(4) These expenses include certain professional, legal, consulting and accounting fees, certain employee compensation, and listing fees that are specific to financing activities including the Company’s initial public offering (“IPO”) completed on May 3, 2021, the base shelf prospectus filed on October 29, 2021 and public filings, and credit facility agreements, and are considered non-recurring and not indicative of continuing operations.
(5) These expenses relate to post-combination compensation of acquired businesses, which represent a portion of the consideration paid that is contingent upon ongoing employment and performance criteria being achieved, including share-based compensation. Additionally, these expenses include certain professional, legal, consulting, accounting, advisory, and other fees incurred in connection with acquisition and other strategic opportunities pursued as part of the Company’s growth strategy. These expenses are considered non-recurring and not indicative of continuing operations.
|
“Total Recurring Revenue” represents the total revenue recognized during the period from contract elements that are recurring in nature and includes revenues recognized as “License – term” and “Software maintenance and support” under term license contracts (“Term License Contracts”) and revenue recognized as “Software maintenance and support” from term subscriptions for software maintenance and support (“Software Maintenance and Support”) purchased by customers under perpetual licenses (“Perpetual Licenses”). The Company believes that Total Recurring Revenue is an indicator of business expansion and provides management with visibility into its ability to generate predictable cash flows.
Term License Contracts and subscriptions for Software Maintenance and Support must be renewed upon expiry, permit customers to terminate their contracts for convenience and do not contain penalty provisions in the event of early termination, though customers that terminate early are not entitled to refund of amounts paid under the contract. The Company facilitates customer renewals generally through automatic delivery of renewal notifications sent in advance of the renewal dates, followed by a personal contact from a member of the Company’s sales team. Based on the Company’s experience, early terminations by customers have not been material and a significant majority of customers renew their contracts upon expiry.
The following table reconciles Total Recurring Revenue to total revenue for the periods indicated (expressed in thousands of US dollars):
|
Revenue
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
Product Type
|
|
|
|
|
|
|
License - term
|
$6,346
|
$3,696
|
|
$11,028
|
$6,755
|
|
License - perpetual
|
959
|
$1,231
|
|
1,392
|
2,472
|
|
Software Licenses Total
|
7,305
|
4,927
|
|
12,420
|
9,227
|
|
Software maintenance and support- term
|
7,585
|
3,174
|
|
13,880
|
5,717
|
|
Software maintenance and support- perpetual
|
6,026
|
6,406
|
|
12,349
|
12,648
|
|
Software Maintenance and Support Total
|
13,611
|
9,580
|
|
26,229
|
18,365
|
|
Professional services
|
2,231
|
1,957
|
|
4,284
|
3,534
|
|
Total Revenue
|
$23,147
|
$16,464
|
|
$42,933
|
$31,126
|
|
Less:
|
|
|
|
|
|
|
License - perpetual
|
(959)
|
(1,231)
|
|
(1,392)
|
(2,472)
|
|
Professional services
|
(2,231)
|
(1,957)
|
|
(4,284)
|
(3,534)
|
|
Total Recurring Revenue
|
$19,957
|
$13,276
|
|
$37,257
|
$25,120
|
|
|
|
|
|
|
|
Key Performance Indicators
The Company monitors a number of performance indicators to help it evaluate its business, measure its performance, identify trends affecting its business and formulate strategic plans. Each of these key performance indicators utilizes revenue from contract elements that are recurring in nature, which include Term License contracts and subscriptions for Software Maintenance and Support and excludes non-recurring Perpetual License fees and training and implementation fees. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies and may be adjusted in certain cases related to acquired businesses.
“Annual Recurring Revenue” is defined as the annualized value of contracted recurring revenue from all customers that have contracts for the Company’s products and services as at the date being measured. The Company calculates Annual Recurring Revenue by dividing the contracted recurring revenue of each customer contract in effect as at the measurement date by the term of the contract, expressed in years. The Company’s calculation of Annual Recurring Revenue assumes that active customers will renew their contracts with it at the time of renewal. Based on the Company’s past experience, a significant majority of customers renew their contracts upon expiry. In addition, while subscription agreements may be subject to price increases on renewal, the Company does not assume price increases on subscription agreements when calculating Annual Recurring Revenue. In the event of an acquisition, management includes the annualized value of recurring revenue from contracts with a commencement date subsequent to the acquisition date. The Company believes that Annual Recurring Revenue is an indicator of business expansion and provides visibility into its ability to generate predictable future cash flows.
Forward-Looking Information
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information includes or may relate to the Company’s financial outlook for Fiscal 2022 (including revenues, net income and Adjusted EBITDA) and anticipated events or results and may include information regarding its financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. This forward looking information includes, but is not limited to, information regarding the Company’s expectations of future results, performance, achievements, prospects or opportunities or the markets in which it operates; expectations regarding the growth of cybercrime and crimes with digital evidence; expectations regarding customer investment in solutions to solve crimes; expectations regarding the Company’s ability to scale its business profitability and its implication for shareholders; the Company’s strategy with respect to term license contracts; expectations regarding the robustness and continued growth of the current prospect pipeline; the outlook for Revenue and Adjusted EBITDA for the year ending December 31, 2022, including anticipated ranges; and the usefulness of the Company’s key performance and non-IFRS measures and the frequency of use of non-IFRS measures by third parties.
In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or, "will", "occur" or "be achieved", and similar words or the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's current expectations, estimates and projections regarding future events or circumstances.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that the Company considered appropriate and reasonable as of the date such statements are made, and is subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the “Summary of Factors Affecting our Performance” section of the Company’s MD&A for the three and six months ended June 30, 2022 and in the “Risk Factors” sections of the Company’s Annual Information Form dated March 9, 2022, which are available under the Company’s profile on SEDAR at www.sedar.com. Certain assumptions in respect of, among other things, the Company’s ability to build its market share; retain existing customers and attract new customers, and increase revenue associated with those customers; the Company’s ability to retain key personnel; the Company’s ability to maintain and expand geographic scope; the Company’s ability to execute on its growth strategies; the Company’s ability to maintain and protect its intellectual property rights and proprietary information; the Company’s ability to prevent unauthorized access to or disclosure, loss, destruction or modification of data, through cybersecurity breaches or computer viruses disrupting the functionality of the Company’s products; the Company’s ability to obtain additional financing and maintain existing financing on acceptable terms; currency exchange and interest rates; the impact of competition; changes and trends in the Company’s industry and the global economy, including the impact of the ongoing COVID-19 pandemic; and changes in laws, rules, regulations, and global standards, are material factors made in preparing forward-looking information and management's expectations.
If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above are described in greater detail in the "Summary of Factors Affecting our Performance" section of the Company’s MD&A for the three and six months ended June 30, 2022 and should be considered carefully by prospective investors.
Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press represents the Company’s expectations as of the date of hereof (or as of the date they are otherwise stated to be made) and is subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
All of the forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements.
|
Magnet Forensics Inc.
Condensed Consolidated Interim Statements of Financial Position
Expressed in thousands of US Dollars (Unaudited)
As at June 30, 2022 and December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022
|
December 31, 2021
|
|
ASSETS
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash
|
|
|
$
|
116,028
|
|
$
|
118,058
|
|
|
Accounts receivable
|
|
|
|
19,054
|
|
|
21,249
|
|
|
Prepaid expenses and other assets
|
|
|
|
3,302
|
|
|
2,989
|
|
|
Income taxes receivable
|
|
|
|
1,187
|
|
|
577
|
|
|
|
|
|
|
139,571
|
|
|
142,873
|
|
|
Non-current assets
|
|
|
|
|
|
Property and equipment
|
|
|
|
2,842
|
|
|
2,689
|
|
|
Right-of-use assets
|
|
|
|
4,085
|
|
|
4,503
|
|
|
Contract acquisition costs
|
|
|
|
1,831
|
|
|
1,477
|
|
|
Acquired intangible assets
|
|
|
|
6,375
|
|
|
5,059
|
|
|
Goodwill
|
|
|
|
1,455
|
|
|
1,345
|
|
|
Deferred tax assets
|
|
|
|
5,727
|
|
|
4,033
|
|
|
Total assets
|
|
|
|
161,886
|
|
|
161,979
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
8,221
|
|
|
10,779
|
|
|
Deferred revenue
|
|
|
|
45,185
|
|
|
43,136
|
|
|
Government loan payable
|
|
|
|
506
|
|
|
514
|
|
|
Lease liabilities
|
|
|
|
972
|
|
|
989
|
|
|
|
|
|
|
54,884
|
|
|
55,418
|
|
|
Non-current liabilities
|
|
|
|
|
|
Deferred revenue
|
|
|
|
8,093
|
|
|
9,566
|
|
|
Government loan payable
|
|
|
|
1,074
|
|
|
1,295
|
|
|
Acquisition-related payables
|
|
|
|
867
|
|
|
707
|
|
|
Lease liabilities
|
|
|
|
5,301
|
|
|
5,853
|
|
|
Total liabilities
|
|
|
|
70,219
|
|
|
72,839
|
|
|
|
|
|
|
|
Shareholders’ equity (deficiency)
|
|
|
|
|
|
Share capital
|
|
|
|
91,760
|
|
|
91,073
|
|
|
Contributed surplus
|
|
|
|
6,547
|
|
|
2,795
|
|
|
Retained earnings (deficit)
|
|
|
|
(6,640
|
)
|
|
(4,728
|
)
|
|
Total shareholders’ equity (deficiency)
|
|
|
|
91,667
|
|
|
89,140
|
|
|
Total liabilities and equity
|
|
$
|
161,886
|
|
$
|
161,979
|
|
|
Magnet Forensics Inc.
Condensed Consolidated Interim Statements of Income and Comprehensive Income
Expressed in thousands of US Dollars, except per share figures (Unaudited)
Three and six months ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
Three months ended June 30,
|
Six months ended June 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
2022
|
|
|
2021
|
|
Revenue
|
|
$
|
23,147
|
|
$
|
16,464
|
$
|
42,933
|
|
$
|
31,126
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
1,575
|
|
|
975
|
|
3,080
|
|
|
1,707
|
|
Gross profit
|
|
|
21,572
|
|
|
15,489
|
|
39,853
|
|
|
29,419
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
Sales and marketing
|
|
|
9,887
|
|
|
5,069
|
|
18,243
|
|
|
9,221
|
|
Research and development
|
|
|
8,253
|
|
|
4,498
|
|
15,517
|
|
|
8,336
|
|
General and administrative
|
|
|
4,923
|
|
|
3,536
|
|
8,511
|
|
|
5,498
|
|
|
|
|
23,063
|
|
|
13,103
|
|
42,271
|
|
|
23,055
|
|
Income (loss) before the undernoted
items and income taxes
|
|
(1,491
|
)
|
|
2,386
|
|
(2,418
|
)
|
|
6,364
|
|
|
|
|
|
|
|
|
Interest expense (income)
|
|
|
(17
|
)
|
|
128
|
|
65
|
|
|
256
|
|
Foreign exchange loss
|
|
|
263
|
|
|
67
|
|
626
|
|
|
132
|
|
Income (loss) before income taxes
|
|
(1,737
|
)
|
|
2,191
|
|
(3,109
|
)
|
|
5,976
|
|
|
|
|
|
|
|
|
Income tax expense (recovery):
|
|
|
|
|
|
Current
|
|
|
547
|
|
|
94
|
|
595
|
|
|
1,100
|
|
Deferred
|
|
|
(1,266
|
)
|
|
507
|
|
(1,792
|
)
|
|
508
|
|
|
|
|
(719
|
)
|
|
601
|
|
(1,197
|
)
|
|
1,608
|
|
|
|
|
|
|
|
|
Net income (loss) and comprehensive
income (loss)
|
$
|
(1,018
|
)
|
$
|
1,590
|
$
|
(1,912
|
)
|
$
|
4,368
|
|
|
|
|
|
|
|
|
Earnings (loss) per share
|
|
|
|
|
|
|
Basic (1)
|
|
|
(0.02
|
)
|
|
0.04
|
|
(0.05
|
)
|
|
0.12
|
|
Diluted (1)
|
|
|
(0.02
|
)
|
|
0.04
|
|
(0.05
|
)
|
|
0.12
|
|
(1) After giving effect to the amalgamation completed as part of the Pre-Closing Reorganization, including a conversion of the Company’s pre-closing common shares on a one-to-three basis.
|
|
Magnet Forensics Inc.
Condensed Consolidated Interim Statement of Cash Flows
Expressed in thousands of US Dollars (Unaudited)
Six months ended June 30, 2022 and 2021
|
|
|
|
|
|
|
Six months ended June 30,
|
|
|
|
2022
|
2021
|
|
|
|
|
|
|
Cash provided by (used in):
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
Net income (loss)
|
|
$
|
(1,912
|
)
|
$
|
4,368
|
|
|
Items not involving cash:
|
|
|
|
|
Income tax expense (recovery)
|
|
|
(1,197
|
)
|
|
1,608
|
|
|
Depreciation of property and equipment
|
|
|
616
|
|
|
470
|
|
|
Amortization of intangible assets
|
|
|
615
|
|
|
105
|
|
|
Interest expense on lease liabilities
|
|
|
169
|
|
|
191
|
|
|
Other interest income
|
|
|
(224
|
)
|
|
-
|
|
|
Depreciation of right-of-use assets
|
|
|
417
|
|
|
415
|
|
|
Share-based compensation expense
|
|
|
4,252
|
|
|
521
|
|
|
Unrealized foreign exchange loss (gain)
|
|
|
(112
|
)
|
|
224
|
|
|
Other non-cash interest
|
|
|
120
|
|
|
65
|
|
|
Changes in operating assets and liabilities
|
|
|
(795
|
)
|
|
1,034
|
|
|
Interest received
|
|
|
224
|
|
|
-
|
|
|
Income taxes paid
|
|
|
(829
|
)
|
|
(6,697
|
)
|
|
Net cash from operating activities
|
|
|
1,344
|
|
|
2,304
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchase of property and equipment
|
|
|
(769
|
)
|
|
(425
|
)
|
|
Acquisition of business and intangible assets
|
|
|
(1,882
|
)
|
|
-
|
|
|
Net cash used in investing activities
|
|
|
(2,651
|
)
|
|
(425
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
Repayments of government loan payable
|
|
|
(257
|
)
|
|
(258
|
)
|
|
Stock options exercised
|
|
|
187
|
|
|
139
|
|
|
Shares issued per offering
|
|
|
-
|
|
|
93,583
|
|
|
Share issuance costs
|
|
|
-
|
|
|
(7,070
|
)
|
|
Interest paid on lease liabilities
|
|
|
(169
|
)
|
|
(188
|
)
|
|
Principal lease payments
|
|
|
(484
|
)
|
|
(439
|
)
|
|
Net cash from (used in) financing activities
|
|
|
(723
|
)
|
|
85,767
|
|
|
|
|
|
|
|
Increase (decrease) in cash
|
|
|
(2,030
|
)
|
|
87,646
|
|
|
Cash, beginning of period
|
|
|
118,058
|
|
|
21,205
|
|
|
Cash, end of period
|
|
$
|
116,028
|
|
$
|
108,851
|
|
Source: Magnet Forensics