Prodigy Ventures Inc. Reports Q3 2022 Results

(TSXV-PGV)

TORONTO, Nov. 18, 2022 /CNW/ - Prodigy Ventures Inc. (TSXV: PGV) ("Prodigy" or the "Company") today announced its financial results for the three and nine months ended September 30, 2022.

Third Quarter 2022 Financial Results

• Revenue for the three months ended September 30, 2022 totalled $3,409,267 as compared to $3,403,466 for the three months ended September 30, 2021, an increase of 0.2%.
• Gross profit for the three months ended September 30, 2022 of $1,067,121 as compared to $1,065,487 for the three months ended September 30, 2021, an increase of 0.2%.
• Expenses for the three months ended September 30, 2022 of $1,449,127 as compared to $1,460,125 for the three months ended September 30, 2021, a decrease of 1%.
• Net loss for the three months ended September 30, 2022 totalled $434,705 as compared to net loss of $390,979 for the three months ended September 30, 2021.
• Adjusted EBITDA for the three months ended September 30, 2022 totalled negative $188,312 as compared to negative $166,341 for the three months ended September 30, 2021.
• The Company had working capital of $2,380,555 as of September 30, 2022 compared to $3,143,145 as of December 31, 2021.

Year-to-Date 2022 Financial Results

• Revenue for the nine months ended September 30, 2022 totalled $10,241,967 as compared to $9,977,459 for the nine months ended September 30, 2021, an increase of 3%.
• Gross profit for the nine months ended September 30, 2022 of $3,322,631 as compared to $2,848,104 for the nine months ended September 30, 2021, an increase of 17%.
• Expenses for the nine months ended September 30, 2022 of $6,862,901 as compared to $3,304,039 for the nine months ended September 30, 2021, an increase of 108%. This includes a non-cash impairment loss of $2,578,001 in the second quarter of 2022.
• Net loss for the nine months ended September 30, 2022 totalled $3,518,272 as compared to net loss of $455,372 for the nine months ended September 30, 2021.
• Adjusted EBITDA for the nine months ended September 30, 2022 totalled negative $222,402 as compared to negative $44,523 for the nine months ended September 30, 2021.

	Three months ended September 30		Nine months ended    September 30
	2022 $	2021 $	2022 $	2021 $
Revenue	3,409,267	3,403,466	10,241,967	9,977,459
Gross Profit	1,067,121	1,065,487	3,322,631	2,848,104
Expenses	1,449,127	1,460,125	6,862,901	3,304,039
Net and comprehensive (loss) for the period	(434,705)	(390,979)	(3,518,272)	(455,372)
Net (loss) per share – basic and diluted	(0.00)	(0.00)	(0.02)	(0.00)
Adjusted EBITDA^(1)	(188,312)	(166,341)	(222,402)	(44,523)

(1)

Adjusted EBITDA is a non-IFRS financial measure, which is defined as earnings before income tax expense, finance costs, depreciation and amortization, impairment loss and share-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 operating performance. The presentation of Adjusted EBITDA is to provide additional useful information 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 in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Adjusted EBITDA differently.

(2)

For further information regarding non-IFRS financial measures including a quantitative reconciliation of Adjusted EBITDA, please see the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2022 under the heading "Non-IFRS Financial Measures".

The complete unaudited financial statements and associated Management's Discussion and Analysis are available under the Company's profile at www.sedar.com or the Company's website at www.prodigy.ventures.

About Prodigy Ventures Inc.

Prodigy delivers 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-of-breed Fintech platforms. Our services business, Prodigy Labs™, integrates and customizes our platforms for unique enterprise customer requirements, 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 staff augmentation. Prodigy has been recognized as one of Canada's fastest growing companies with multiple awards.

Forward-Looking and Cautionary Statements

Certain information set out in this news 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", "will", "intend", "could", "might", "should", "believe" and similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on 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 occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2022, a copy of which is filed on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.

Non-IFRS 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 IFRS. These non-IFRS financial measures are included because management uses the information to analyze operating performance. These non-IFRS financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. Except as otherwise indicated, these non-IFRS measures are calculated and disclosed on a consistent basis from period to period.

Neither 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.

PRODIGY VENTURES INC., Andrew Hilton, Chief Financial Officer, [email protected], 416-606-8833