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Enablence Technologies Announces Financial Results for the Three Months Ended September 30, 2021
Ottawa, Ontario--(Newsfile Corp. - November 24, 2021) - Enablence Technologies Inc. (TSXV: ENA...
About this update from Enablence Technologies Inc.
[{"type":"text","content":"Enablence Technologies Announces Financial Results for the Three Months Ended September 30, 2021Ottawa, Ontario--(Newsfile Corp. - November 24, 2021) - Enablence Technologies Inc. (TSXV: ENA) (\"Enablence\" or the \"Company\"), a supplier of optical components and subsystems, has filed its unaudited financial statements for the three months ended September 30, 2021 (\"Q1 2022\") and related management's discussion and analysis and certifications (collectively, the \"Financial Statements\"). Electronic copies of the Financial Statements are available on SEDAR (www.sedar.com) under Enablence's issuer profile.Q1 2022 HighlightsEnablence is pleased to provide the following highlights for Q1 2022 (all dollar figures are rounded to the nearest thousand of United States dollars, unless otherwise noted):The Company announced its plan to recapitalize the Company's balance sheet by way of a share consolidation, shares-for-debt exchange, restructuring of its senior secured loan and by raising new capital through a planned private placement (the \"Recapitalization Transaction\"). The Company's senior secured loan facility was acquired from Export Development Canada by Vortex ENA LP (\"Vortex LP\"), a related party to the Company. Such senior secured loan facility was subsequently amended to lower the interest rate to 7.5% per annum, extend the maturity date to September 2025 (plus one six-month extension option), eliminate required principal amortization during the life of the loan and eliminate the need to pay cash interest (with interest accrued instead) on the loan until September 2023 (the modified loan being the \"Loan Amendment\").Company revenue increased by 6% during the three month period ended September 30, 2021 as compared to the same period in the prior year. Revenue gains were primarily driven by higher non-recurring engineering (\"NRE\") revenue of $52,000 and an increase in third-party fabrication services work for a mega-cap technology company of $114,000, offset by a decrease of $132,000 in proprietary optical chip sales. The Company believes that the decline in optical chip sales is due to seasonal fluctuations in demand from its customers and expects chip sales to increase in future quarters based on positive market trends and inbound interest from both existing and new customers.The Company recognized net income of $9,00...