Novra Technologies Inc. Year End Results (December 2015)
Symbol: NVI
Stock Price: $0.11
Common Shares: 22,387,993
Insider Holdings: 12,042,430 (53.4% as per SEDI and Sedar)
website: www.novra.com
Financials
Assets
Cash: $577,132
Accounts Receivable: $875,464
Notes Receivable: $138,475
Inventory: $531,255
Prepaid Expenses: $7,062
Options: $55,281
Equipment: $25,937
GIC: $200,000
Total Assets: $2,410,606 (2014: $2,158,821 )
Liabilities
Credit Line: $555,000 (2014: $730,000)
Accounts Payable: $696,125
Deferred Income: $24,950
Due to related party: $250,000
Due portion of debt: $99,575
Long-term debt: $377,147
Total Liabilities: $2002,797 (2014 - $2,112,442)
2015 Sales
Revenue: $2,712,671
Gross Profit: $948,046
Net Income: $361,430 or $0.0161c EPS
MD&A Highlights
This will be very brief due to the size of NVI’s MD&A. It is recommended that all shareholders go to Sedar and read all the notes. Below is a copy/paste of the highlights section.
· Subsquent to the end of the reporting period, a merger agreement between Novra and International Datacasting Corporation (IDC) was signed, where Novra will acquire all of IDC’s issued and outstanding common shares for total purchase consideration of approximately $1.9 Million. This merger is subject to IDC’s shareholders’ approval and a special shareholders meeting has been scheduled for May 30, 2016 with an expected closing date in early June.
· Term sheet for the acquisition of Wegener Communications is in place and the acquisition is expected to be completed in the next 6 months.
· A new acquisition term sheet is currently being negotiated and if successful it is then expected that the acquisition of Westport will be completed within 6 months following.
· In Q1 2016, a major US satellite operator has evaluated and recommended to their clients our receivers for two new projects. These opportunities require about 3,000 receivers each. We are now anticipating final approval from the end-clients by Q2/Q3 2016.
· In 2014 an initial order was received to modify our S300 receiver for integration into a portable communications system for the US military. As a result of the success of this project, our S300 is now being used for a larger military project. We have received an order for 15 monthly shipments starting January 2016. Subsequently, in April 2016, we received an additional order which almost doubles the number of receivers to be shipped.
· In this reporting period another major US defense agency selected the S300 for a special project. The S300 has been proposed for additional projects by this agency, which are waiting for approval.
· For this reporting period Novra received and delivered an initial order 1,500 for our S300CA receivers from a large US based hospitality service provider of interactive media and connectivity services. We expect additional orders from this client and other European clients in the hospitality services in Q2 2016.
· Novra was approved for a $447,500 repayable loan from the Canadian Government for the development of a new Encapsulator (IPE) and enhancements to our new S400 receiver. This represents 50% of the anticipated expenditures on these R&D efforts over the next 24 months.
· Novra receivers were selected by system integrators in the US and Asian Pacific and proposed for several large networks. We are anticipating orders from these opportunities in 2016.
· Continued expansion of an apartment IPTV network deployment in Japan. During this reporting period we shipped 940 of our S200 receivers for this network and received an order for another 370 for delivery in 2016. We are currently working to secure a much larger follow-on order and we expect shipments to start in Q4 2016 and span over 24 to 36 months.
· Our receivers were previously selected for two Digital Signage networks by our South African service provider. We are continuing to receive follow-on orders as these existing networks are expanded across Africa and new clients are added.
· Increased interest and on-going evaluations of our S300 family of receivers by international clients
· Our S200FK (Fixed Key) receiver was selected as a replacement to a competitor’s receiver for an existing Japanese satellite network. We received an initial order during this reporting period and we expect to ship additional receivers in Q2 2016.
· Our more powerful S300FK was also selected for another Japanese network. An initial order has been received in the period and shipped in Q4. We expect more orders as this network is expanded in 2016.
· Novra’s S300 receivers are installed across China for a low data rate news broadcasting application. We have received follow-on orders for this reporting period and expect these orders to continue in 2016.
· For this reporting period we have and continue to receive orders for our S300 receivers by NOAA and its clients for existing and new weather related services. We expect these orders to continue through 2016.
· The European weather service switched from DVB-S to DVB-S2 on Jan 1, 2015 and Novra’s S300 is an approved receiver. For this reporting period we received orders from clients across Europe, Africa and Middle-East for this service and we expect these orders to continue (at a slower pace) for 2016. Some of the orders we received for this reporting period were for EU military forces.
· Japan Meteorological Agency (JMA) previously selected Novra’s receivers for the reception of their newly launched weather service called Himawaricast. For this reporting period we have received orders from clients who are signing onto this weather service across the Far East. We expect additional orders as this new Japanese weather service is fully launched in 2015/16.
· JMA is the third global meteorological agency to have selected Novra’s products for their own installations and listed our S300 as an approved receiver for the reception of their weather related services to their clients. These agencies are, NOAA (US), EUMETSAT (EU), JMA (Japan). We are very proud of this achievement. |
