Fab-form Industries LtdTSXV: FBF

Financial document (2024 2025 3rd qtr MD&A)

· Issued by Fab-form Industries Ltd




Fab-Form Industries Ltd. ("Fab-Form" or the "Company") is a leading enviromentally conscious concrete formwork manufacturer located in Vancouver, BC Canada. Since its inception in 1986, the Company has invented, developed, and commercialized foundation products that are more sustainable for the building industry.

This management discussion and analysis ("MD&A") covers the operations of Fab-Form Industries Ltd. for the quarter ended 31 March 2025. The financial statements for the quarter ended 31 March 2025 together with this MD&A are intended to provide investors with a reasonable basis for assessing the financial performance of the Company. The interim financial statements and the accompanying notes should be read in conjunction with the annual financial statements and the accompanying notes contained in our audited financial statement for the year ended 30 June 2024.

The interim financial statements and the accompanying notes have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interim periods.

HIGHLIGHTS: QUARTER ENDED 31 MARCH

Profitability

  • Revenue for the quarter The increase in revenue was primarily driven by a 59% rise in Fastfoot sales, further ending March 31, 2025, was supported by a favorable USD/CAD exchange rate during the quarter. However, gross

    $772,753, a 3.31% increase profitability was affected by recent USA tariff increases. The company chose to absorb a over the same period the portion of these costs, honor existing sales commitments, and prioritize customer retention. year before.

  • Gross Profit: $240,911; this Looking ahead, tariffs are expected to continue impacting steel exports to USA, particularly is a 0.20% rise over 2024. the current 70% tariff on steel products. For further details, refer to Section 8: subsequent

  • Operating income decreased events and tariff impact. by 65.74% from 2024 to

    $19,769. Decrease in operating income was due to an increase administrative and selling costs, write-

  • Net Profit: $40,335, down off of bad debts, and increase tariff costs. 52,63% from the quarter

that concluded on March 31, Fast-Tube continues to gain international traction, with samples shipped to Ireland, the 2024. United Kingdom, Nigeria, and Colombia. Following the quarter's end, the first confirmed

order from Ireland was secured.

Operations

  • Participated in Las Vegas Construction Expo 2025.

The Las Vegas show was very successful with 540 leads obtained. 50% of the costs were covered by the Export Development Program. Fab-Form will be attending the Dubai Expo in November 2025 to develop world markets and return to Las Vegas in January 2026.

Marketing expenses are expected to double in 2025 - 2026 year.

HIGHLIGHTS: QUARTER ENDED 31 MARCH

  • KLiP initial design was Final design of KLiP was finalized subsequent to quarter end and sent for moulding. KLiP completed subject to testing. enables easy alignment of Fast-Tube before pouring concrete.

  • Designing and developing the Following the filing of a patent application in July 2024 for Space-R, a concrete stirrup prototype production machine assembly, a method of forming a concrete reinforced structure. the initial design and core for SPACE-R commenced this product concept have been finalized as well as development has begun on a prototype quarter. production machine. FBF Engineering will have this machine producing product for the Dubai

    show in November 2025. Space-R, KLiP, and Fast-Tube will enable the construction of fabric concrete columns worldwide.

  • The first order for Monopour The initial production order of Monopour HD and Level-R was ready on May 12, 2025. These HD and Level-R was two new product lines will introduce new revenue streams to the Company. An increase in completed during the quarter. Fastfoot sales is also anticipated, driven by growing demand for Level-R.



Liquidity

  • The total amount of cash generated from operating activities for the six months ending March 31, 2025, was



    $402,644.

  • At the end of March 31, 2025, total liquid funds reduced to

$985,078.

With 67% of total assets held in cash, cash equivalents, and short-term investments, the company's cash flow position remains solid. Excess cash is consistently directed toward interest-bearing investments.

The Company is committed to improving the usability and quality of all products. Ongoing research and development of new products is a very high priority.

SELECTED ANNUAL INFORMATION

The following table presents selected financial information for each of the most recent four financial years

30 June

2024

$

30 June

2023

$

30 June

2022

$

30 June

2021

$

Revenue

4,681,956

5,710,975

5,434,743

3,448,075

Net earnings

771,875

1,086,547

1,097,411

412,794

Basic and diluted earning per common share

0.084

0.122

0.121

0.047

Total assets

6,057,534

5,204,367

4,434,162

3,292,127

Long-term debt

-

-

-

-

Dividend

-

-

-

-

SELECTED QUARTERLY INFORMATION

The following table presents selected financial information for each of the most recent eight quarters:

For the periods ending

31-Mar-25

$

31-Dec-24

$

30-Sep-24

$

30-Jun-24

$

Revenue

772,753

1,030,927

1,433,820

1,372,664

Net earnings

40,335

111,393

278,836

222,348

Basic and diluted earning per common share

0.0044

0.0128

0.03

0.024

Total assets

6,689,309

6,488,912

6,388,251

6,057,534

Long-term debt

-

-

-

-

Dividend

-

-

-

-

For the periods ending

31-Mar-24

$

31 Dec-23

$

30-Sep-23

$

30-Jun-23

$

Revenue

748,002

1,020,614

1,540,676

1,883,990

Net earnings

85,157

107,372

356,998

370,672

Basic and diluted earning per common share

0.0093

0.0117

0.039

0.04

Total assets

5,848,486

5,671,498

5,727,761

5,204,367

Long-term debt

-

-

-

Dividend

-

-

-

-

We look forward to working with all the stakeholders to reach our growth objectives. We continue to thank all our shareholders, employees for their trust in our Company and products.

Sincerely

Signed Signed

'Joseph Fearn' 'Vishwanath Kumar'

President and CEO Chief Financial Officer

28 May 2025 28 May 2025