Edmonton, Alberta--(Newsfile Corp. - July 29, 2020) - Wavefront Technology Solutions Inc. (TSXV: WEE) (OTCQB: WFTSF) (Wavefront or the Company), an oil field service provider focused on offering the oil and gas industry proprietary, leading edge technology announces its financial results for the third quarter ending May 31, 2020.
An overview of the financial results for the reporting period includes:
Powerwave stimulation activity in the Middle East was lower than expected due to decreased activity levels of Wavefront's Distributors related to among other issues: end user budgetary constraints; Distributor field service quality issues resulting in restrictions on the award of well work; and, pricing competition related to competitor services companies providing coiled tubing services at discounted rates in order to obtain market share.
Additionally, the third quarter net loss of $16,562 was a decrease of $403,050 from the net losses recognized in the second quarter 2020 (i.e., the three months ended February 29, 2020).
Offsetting the aforementioned decreases were increases in current assets of trade and other receivables of $174,514, and prepaid expenses and other current assets of $85,398. Total assets also increased due to the recognition of right-of-use assets (as required by IFRS 16) as at September 1, 2019 of $213,005, which was depreciated over the reporting period by $112,767 and the acquisition of intangible assets of $66,175 which was depreciated by $2,703.
In addition to the net increase in cash and cash equivalents of $250,567 for the reporting quarter, working capital increased by $30,562 from the prior quarter ended February 29, 2020, which reported working capital of $1,924,255.
The above financial highlights should be read in conjunction with the unaudited condensed consolidated interim financial statements and management discussion and analysis of results for Wavefront for the third quarter ended May 31, 2020, which were filed on SEDAR on July 29, 2020.
ON BEHALF OF THE BOARD OF DIRECTORS
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
"D. Brad Paterson" (signed)
D. Brad Paterson, CFO & Director
About Wavefront:
Wavefront is a technology based, oil field service provider, focused on offering the oil and gas industry proprietary, leading edge technology primarily for oil and gas well stimulation and applications related to IOR/EOR recovery. Wavefront publicly trades on the TSX Venture Exchange under the symbol WEE and on the OTCQB under the symbol WFTSF. The Company's website is www.onthewavefront.com.
For further information please contact:
D. Brad Paterson, CFO at 780-486-2222 or write to us at [email protected]
Cautionary Disclaimer - Forward Looking Statement
Certain statements contained herein regarding Wavefront and its operations constitute "forward-looking statements" within the meaning of Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations or future performance, are "forward-looking statements". In some cases, forward-looking statements can be identified by terminology such as ''may'', ''will'', ''should'', ''expect'', ''plan'', ''anticipate'', ''believe'', ''estimate'', ''predict'', ''potential'', "believe", ''continue'' or the negative of these terms or other comparable terminology. We caution that such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such factors include fluctuations in the acceptance rates of Wavefront's Powerwave and Primawave Processes, demand for products and services, fluctuations in the market for oil and gas related products and services, the ability of Wavefront to attract and maintain key personnel, technology changes, global political and economic conditions, and other factors that were described in further detail in Wavefront's continuous disclosure filings, available on SEDAR at www.sedar.com. Wavefront expressly disclaims any obligation to up-date any "forward-looking statements", other than as required by law.
©2020 Wavefront Technology Solutions Inc. All rights reserved.
From Bit To Last Drop™, WaveAxe™, Powerwave™ and Primawave™ are registered trademarks of Wavefront Technology Solutions Inc., or its subsidiaries, or affiliates.
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[1] EBITDA, an acronym for earnings before interest, taxes, depreciation, and amortization, is calculated by adding back all interest, tax, depreciation and amortization to net income. EBITDA is a non-IFRS measure with the most comparable IFRS measure being net income.
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