Tenet Fintech Reports Second Quarter 2024 Financial Results

Newsfile Corp.
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Toronto, Ontario--(Newsfile Corp. - August 29, 2024) - Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) ("Tenet" or the "Company"), an innovative analytics service provider and operator of the Cubeler? Business Hub, today announced its financial results and operating highlights for the three-month and six-month periods ended June 30, 2024, and June 30, 2023. Tenet reported revenue of $713,943, EBITDA of ($10,685,055) and a net loss of $13,451,547 for the quarter. All amounts in this news release are in Canadian dollars unless otherwise indicated.

Q2-2024 Financial Highlights

  • Total Revenue of $713,943

  • EBITDA of ($10.69 million)

  • Net Loss of ($13.45 million)

Reconciliation of Net Loss to EBITDA and Adjusted EBITDA for the 3-month period ended June 30, 2024

Net loss for the period

($13,451,547)

Add:


Income tax

$1,045

Finance costs

$684,510

Depreciation of property and equipment

$34,251

Depreciation of right-of-use assets

$95,344

Amortization of intangible assets

$1,913,438

Amortization of financing issuance costs

$37,904

EBITDA1

($10,685,055)

Add (less):


Change in fair value of contingent consideration payable

($199,500)

Change in fair value of debentures conversion options

($22,790)

Loss on investment in associate company

$ -

Forgiveness of CEBA loan

$ -

Loss on sublease

$ -

Gain on disposition of property and equipment

$ -

Adjusted EBITDA2

($10,907,345)


(1) EBITDA is a non-IFRS financial measure provided to assist readers in determining the Company's ability to generate cash-flows from operations and to cover finance 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 equals the results before income taxes, depreciation of property and equipment, depreciation of right-of-use assets, amortization of intangible assets, amortization of financing issuance costs and finance costs, as defined in Note 24.4 of the Audited Consolidated Financial Statements for the years ended December 31st, 2023 and December 31st, 2022.
(2) Adjusted EBITDA equals EBITDA as described above adjusted for change in fair value of contingent consideration payable, change in fair value of debenture conversion options, impairment of goodwill, impairment of intangible assets, gain on bargain purchase, loss on investment in a related company, impairment on investment in a related company and loss on legal settlement.

SECOND QUARTER FINANCIAL AND OPERATING RESULTS SUMMARY

The Company had anticipated taking steps during the second quarter of 2024 to gradually have regular activity resume on its platforms in China at some point during the quarter. But a combination of the delayed delivery of the Business Hub's Networking and Advertising modules in Canada and the establishment of the Company's new data science subsidiary in China meant that benefits to the Company's new data focused revenue model in China would be limited from any increase in activity on the platforms. Given the considerable amount of financial capital and human resources that would have to be allocated for transactions on the platforms to get back to previous levels, the Company opted to delay that process, which kept revenue for the quarter around the same levels as the previous quarter.

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