Initial Results from Ongoing Financial Restructuring Initiatives Produce Positive Developments in Q2 FY 2023 Financial Statements
TORONTO and NEW YORK, January 30th, 2023 (NEWSFILE) — DGTL Holdings Inc. (TSXV:DGTL) (US:DGTHF) (FSE:A2QB0L) (“DGTL” or the “Company”), a digital media technologies accelerator with flagship digital marketing content and data analytics brand TotalSocial®, announced the filing of its second quarter fiscal 2023 financial results for the three month period ending November 30th, 2022.
As previously reported, the new DGTL management team initiated strategic financial restructuring initiatives during the first quarter of fiscal 2023. The core purpose of these ongoing initiatives was to reduce liabilities and operating expenses while increasing profitability in order to develop a solid financial position for sustainable revenue growth and portfolio enhancement via new prospective M&A activity.
Initial results from these initiatives show positive developments in the Company’s financial position evident in the second quarter fiscal 2023 filings. Highlights include a decrease in the total net loss (before income taxes) by 91%, a decrease in the total current liabilities by 49% and an increase in the gross profit margins by 60%.
Second Quarter Highlights
- Net Loss Before Income Taxes decreased by 91% (from $607,360 reported for the period ending November 30, 2021 to $58,399 reported for the period ending November 30, 2022)
- Gross Profit Margin increased by 60% ($174,076 reported for the three month period ending November 30, 2021, to $285,928 reported for the period ending November 30, 2022)
- Total Current Liabilities decreased by 49% ($3,175,279 reported for the period ending May 31, 2022 to $1,619,958 reported for the period ending November 30, 2022)
- Salaries, Fees and Benefits decreased by 36% ($227,131 reported for the three month period ending November 30, 2021 to $145,003 reported for the three month period ending November 30, 2022)
- Revenue increased by 20% (from $490,233 reported for the three month period ending August 30, 2022 to $607,541 reported for the three month period ending November 30, 2022)
“Management is confident that we are taking the appropriate actions to generate long-term shareholder value. Looking ahead, we expect to realize further benefits in our financial position from ongoing financial restructuring initiatives. Sales revenues were relatively consistent with just 6% growth from the same period in fiscal 2021, and 20% growth from the previous quarter, due to challenging global economic conditions during calendar 2022. However, management has seen a marked increase in the adoption of our TotalSocial® PaaS (Platform-as-a-Service) among new Fortune 500 brands and strong renewal rates from long-term customers in recent months. Based on rising demand for our digital solutions, evolving global macroeconomics, new business development resources, and the roll-out of new digital content and analytics products under theTotalSocial® brand, the Company anticipates a potential renewal of incremental growth in the third and fourth quarter of fiscal 2023.” said John Belfontaine, Chief Executive Officer of DGTL Holdings Inc.
For copies of filed Financial Statements and Management Discussion and Analysis reports please visit SEDAR.com or visit https://dgtlinc.com/investors/financials.
For more information on DGTL Holdings Inc. contact;
CEO and Chairman
DGTL Holdings Inc.
Email: [email protected]
Phone: +1 (877) 879-3485
DGTL Holdings Inc.
DGTL Holdings Inc. is developing a portfolio of digital media software and managed service business lines. DGTL (i.e., Digital Growth Technologies and Licensing) specializes in accelerating commercialized enterprise level PaaS (platform-as-a service) companies within the sectors of social, mobile, gaming and streaming. DGTL’s vision is to build a full service digital media conglomerate via M&A and a blend of unique capitalization structures. DGTL is traded on the Toronto Venture Exchange as “DGTL”, the OTC exchange as “DGTHF”, and the FSE as “A2QB0L”. For more information, visit: www.dgtlinc.com.
As a wholly owned subsidiary, Engagement Labs is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands. Flagship PaaS (platform-as-a-service) TotalSocial® is a patented technology that combines powerful online (social media) and offline (word of mouth) data with predictive analytics. Engagement Labs has a proprietary ten-year database of unique brand, industry and competitive intelligence, matched with its cutting-edge predictive analytics that use machine learning and artificial intelligence to reveal the social metrics that increase marketing ROI and top line revenue for itsF500 level clients.TotalSocial is expanding its product suite to a full-service social content, analytics and distribution platform.
Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. These statements may relate to the Company’s future financial outlook, financial position, anticipated events, results, success of its work from home policies, the Company’s strategy with respect to the TotalSocial® platform, or the effect of the COVID-19 pandemic on the Company’s business and operations. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Also, given the evolving circumstances surrounding the COVID-19 pandemic, it is difficult to predict how significant the adverse impact of the pandemic will be on the global and domestic economy, the business, operations and financial position of the Company’s clients and the business, operations and financial position of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Many factors could cause the Company’s actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of the Company’s Management Discussion and Analysis. A copy of the AIF, MD&A and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com. In addition, the effects of COVID-19, including the duration, spread and severity of the pandemic, create additional risks and uncertainties for the Company. In particular, the impact of the virus and government authorities’ and public health officials’ responses thereto may affect: the Company’s actual results, performance, prospects or opportunities; domestic and global credit and capital markets and its ability to access capital on favourable terms, or at all; and the health and safety of its employees. The Company cautions that the list of risk factors and uncertainties described in the MD&A are not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. Except as required by law, DGTL does not intend, and undertakes no obligation, to update any forward-looking statement to reflect, in particular, new information or future events.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.