Clear Blue Technologies Reports Third Quarter 2022 Results, Canadian Business Journal

TORONTO, November 28, 2022 (GLOBE NEWSWIRE) — Clear Blue Technologies International Inc. (“clear blue” and the “Company”) (TSXV: CBLU) (FRA: 0YA) (OTCQB: CBUTF), Smart Off-Grid Company™, announces financial results for the quarter ended September 30, 2022 (“Q3 2022”). A complete set of financial statements and management discussion and analysis (“MD&A”) was submitted to www.sedar.comAll amounts are in Canadian dollars.

key Finance result

trailing quarter (“TFQMore“) Basic:

• TFQ’s revenue through Q3 2022 was $4,090,017, down from $9,021,716. The decrease in revenue was due to delays in site deployments by customers as a result of telecommunications equipment supply chain shortages, delays in capital project expenditures, and cumulative global economic challenges over the past three years.
• TFQ recurring revenue was $736,969, up 51% from the corresponding 2021 TFQ of $488,136.

• Gross margin increased from 29% in the previous TFQ period of 2021 to 1% to 30%.
• Non-IFRS Adjusted EBITDA was $(3,792,410) compared to $(2,558,365) in the previous TFQ for 2021.

Q3 2022:

• Income was $451,421. Third quarter revenue was negatively impacted by $1.1 million due to unfulfilled orders in the third quarter and canceled orders in the first quarter due to customer non-payment. Additionally, a major telecom customer postponed a $1 million project due to supply chain issues regarding the availability of telecom equipment components scheduled for 2023.
• Bookings amounted to $1,814,037, an increase of 18% from $1,536,118 as of December 31, 2021.
• Recurring revenue was $142,940 of total revenue, up 14% from $125,612 in Q3 2021. Ongoing service revenue is expected to increase each year as more units are deployed.

• Gross profit was $135,575 or 30% compared to $882,139 or 39% in Q3 2021.
• Quarterly non-IFRS adjusted EBITDA was $(987,427) compared with $(336,282) in the third quarter 2021.

Main balance sheet updates:

• The company was awarded a $5 million R&D grant from Sustainable Development Technology Canada. The grant will fund the development of Clear Blue’s Pico-Grid product, as well as enable Clear Blue to bring machine learning artificial intelligence to Illuminance, the industry’s leading managed cloud platform. The first tranche of this grant is scheduled for Q4 2022.

• The Company has received its first monthly payments from a $4 million interest-free, non-dilutive loan agreement awarded by the Government of Canada through the Federal Economic Development Agency in Southern Ontario. Funds from this funding will provide monthly cash payments to the company through March 2024.
• The two non-dilutive financings above cover approximately 60% of our net cash burn monthly expenses. As a result, we expect to achieve net zero cash burn in 2023, even given our very conservative budget for 2023. Additionally, with recent cost-reduction initiatives, the company expects to reach positive Adjusted EBITDA of approximately $8 million on annual sales.
• Management has the ability to cut costs and add capital to the business to ensure net zero cash burn in 2023.

management Commentary When Outlook

While Clear Blue was able to deliver strong growth in 2020 and 2021, the cumulative impact of three years of Covid-19, supply chain issues, the war in Ukraine, and the current global economy are impacted its 2022 performance. The YTD results reflected this impact, particularly affected by his over $2.1 million in earnings from two of his clients. One has failed to secure funding and another has been delayed in shipping telecom equipment his Clear Blue uses.

Clear Blue expects the fourth quarter to continue to be a weak quarter. In terms of guidance, we currently believe many customers are deferring much of the remainder of their 2022 plans to his 2023. With this heightened level of customer caution, we now expect results to fall below guidance at the end of 2022. The range he reported in August.

Clear Blue CEO Miriam Tuerk said: “The $9 million grant and interest-free loan secured by the Government of Canada provides a strong foundation for growing the business over the next 18 months. Even so, we expect the company to be cash flow neutral.

From a medium to long term perspective, Clear Blue has a very strong sales pipeline of $400 million. Our confidence in our earnings growth prospects is largely underpinned by strong customer interest in solar, which we see accelerating, with early bookings giving us strong growth prospects in the first half of 2023 . “

meeting phone

The Company will host a conference call to discuss its latest financial results on Tuesday, November 29, 2022 at 11:00 AM ET (Canada/US). For those interested, https://us06web.zoom.us/webinar/register/WN_vPn7TlUWTpW7d7-Nz_LVtA.

for more information, contact:

Co-Founder and CEO, Miriam Türk
+1 416 433 3952
[email protected]
www.clearbluetechnologies.com/en/investors

Nikhil Thadani, Sophic Capital
+1 437 836 9669
[email protected]

about clear blue technology International

Clear Blue Technologies International, a Smart Off-Grid™ company, aims to meet the global need for reliable, low-cost solar and hybrid power for lighting, communications and security using clean, managed ” was founded with the vision of providing “wireless power”. , Internet of Things devices, and other mission-critical systems. Today Clear Blue manages thousands of systems in 37 countries, including the United States and Canada. (TSXV: CBLU) (FRA: 0YA) (OTCQB: CBUTF)

legal Disclaimer

Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this release.

Foresight statement

This press release contains certain “forward-looking information” and/or “forward-looking statements” within the meaning of applicable securities laws. Such forward-looking information and forward-looking statements do not represent historical facts, information or current circumstances, but only represent Clear Blue’s beliefs regarding future events, plans or objectives. , many of which are inherently uncertain and out of scope by their nature. Under the control of Clear Blue. Generally, such forward-looking information or forward-looking statements may not include words such as “plans,” “expects,” “anticipates,” “anticipates,” “budgets,” “plans,” or “anticipates.” Identified by the use of forward-looking terminology. ‘, ‘estimate’, ‘predict’, ‘intend’, ‘predict’, ‘do not predict’ or ‘believe’ or variations of such words or phrases or specific actions, events or May include statements that results “could”, “could”, “could”, “could”, or “taken”, “continue”, “occur”, or “achieved”. Forward-looking information contained herein may include, but is not limited to, information regarding financial results and future contracts.

By so identifying such information and statements, Clearblue acknowledges that such information and statements are subject to known and unknown risks, uncertainties and implications for Clearblue’s actual results, activity levels, performance, or other factors that may cause performance. be materially different from what is expressed or implied by such information or statements;

An investment in Clear Blue’s securities is speculative and subject to a number of risks, including, but not limited to, those described under the heading “Risk Factors” in Clear Blue’s listing application dated July 12, 2018. exposed to the risk of Although Clear Blue has attempted to identify important factors, actual results could differ materially from those contained in the forward-looking information and forward-looking statements. In addition, there may be other factors that cause results to differ from those expected, estimated or intended.

Clear Blue makes certain assumptions in connection with the forward-looking information and forward-looking statements contained in this press release. Although Clear Blue believes that the assumptions and factors used in preparing the forward-looking information and statements, and the expectations contained therein, are reasonable, Clear Blue does not place undue reliance on such information and statements. should not be Such forward-looking information and statements are certified to be accurate as actual results or future events could differ materially from those anticipated by such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release. All subsequent written and oral forward-looking information and statements made by Clear Blue or by persons acting on behalf of Clear Blue are expressly qualified in their entirety by this notice. “

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities mentioned in this news release. Offer or sell in the United States or for the account or benefit of any person in the United States, as such securities are not and will not be registered under the United States or state securities laws; You can not. United States or “American person”, such term
unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

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