Connect with us

Technology

EMERGE Reports First Quarter 2024 Results

Published

on

Q1 Gross Merchandise Sales1 (“GMS”) of $7.65M compared to $7.61M in Q1 2023Q1 Revenue of $5.0M compared to $5.3M in Q1 2023Q1 Gross Profit increased to $2.1M compared to $2.0M in Q1 2023Q1 Gross Margin improved to 43% compared to 38% in Q1 2023Q1 Adjusted EBITDA1 improved to $(99K) compared to $(526K) in Q1 2023Net Income from Continuing Operations improved to $9K compared to Net Loss of  $(2.4M) in Q1 2023

TORONTO, May 28, 2024 /CNW/ – EMERGE Commerce Ltd. (TSXV: ECOM) (“EMERGE” or the “Company”), a premium e-commerce brand portfolio, today announced results for its three months ended March 31, 2024. Copies of the interim financial statements and MD&A are available on the Company’s profile on SEDAR at www.sedar.com.

This marks EMERGE’s first financial report which classifies WholesalePet (“WSP”) as discontinued operations, with prior period results also restated to reflect the reclassification. EMERGE completed its sale of WSP in January 2024.

Ghassan Halazon, Founder and CEO, EMERGE commented, “Q1 2024 was a crucial setup quarter for our more focused business. We are pleased to report that GMS, the actual sales volume being transacted across our sites, is trending upwards, forming the basis for our “return to growth” plan in 2024, a top priority. Operationally, the team’s efforts in Q1 translated into year-over-year gains across gross profit, gross margin, Adjusted EBITDA, and Net Income. truLOCAL, our largest brand by revenue, saw strong net customer inflows, another key metric that drives future, deferred, revenue growth. The team is also driving visible YoY growth in our golf division, a discount-centric business, as more golf vendors seek out our marketplace services with more aggressive offers to entice customers. On the other hand, Carnivore Club, our smallest brand, is a business we have actively been optimizing for profitability, while shrinking “loss-making” revenue. Excluding Carnivore Club, our Q1 revenue was in line with Q1 2023. All in all, we are making terrific progress from topline to bottom line, notably, including positive Net Income in Q1.”

Q1 2024 Financial Highlights

Q1 GMS of $7.65M compared to $7.61M in Q1 2023Q1 Revenue of $5.0M compared to $5.3M in Q1 2023. Excluding Carnivore Club, a brand that is actively eliminating loss-making revenue, EMERGE revenue would be in line with Q1 2023Q1 Gross Profit increased to $2.1M compared to $2.0M in Q1 2023Q1 Gross Margin improved to 43% compared to 38% in Q1 2023Q1 Adjusted EBITDA improved to $(99K) compared to $(526K) in Q1 2023Net Income improved to $486K compared to Net Loss of $(2.1M), largely driven by the sale of WholesalePet (“WSP”)Net Income from Continuing Operations improved to positive $9K compared to a Net Loss of $(2.4M)Cash on hand at March 31, 2024 was $2.6 million

Cost Reductions

Following the sale of various non-core businesses over the last year, EMERGE is executing additional cost savings largely in relation to operating a more focused set of brands.

“We have taken measures to reduce our overhead expenses given our more streamlined operations that are now exclusively centered on our grocery and golf verticals. These cost reductions were partly reflected in our much improved profitability in Q1, with additional savings being actioned in Q2 as well,” continued Halazon.

Brand-Level Commentary

truLOCAL, our premium meat subscription service, and EMERGE’s largest business by revenue, continues to see strong net customer inflows, a leading indicator of future (deferred) revenue, increased Average Order Value (“AOV”), and reduced overhead expenses. The direct-to-consumer (“D2C”) subscription business is showing encouraging signs year-to-date, with ‘new initiative’ revenue lines in the works as well to accelerate organic growth.

The golf division, which includes UnderPar and JustGolfStuff, continue to drive improved topline, margins and more efficient marketing spend.

Carnivore Club, EMERGE’s smallest business, is being optimized for profitability, which includes the elimination of loss-making revenue.

Excluding Carnivore Club, EMERGE’s Q1 2024 revenue would have been approximately in line with Q1 2023.

Q1 2024 Business Highlights 

Sale of WSP

In January 2024, EMERGE completed the sale of WSP to Tiny Fund I, LP, for aggregate gross cash consideration of US$9.25M subject to certain closing adjustments and obligations.

EMERGE now retains 4 brands across 2 main verticals, Grocery and Golf, in Canada and the U.S., namely truLOCAL, Carnivore Club, UnderPar, and JustGolfStuff.

$10M Debt Paydown and Extended Term

EMERGE utilized $10M from the WSP transaction proceeds to paydown its senior credit facility with its existing lender, the principal balance of which has been reduced to $5.85M, from $15.85M prior to the completion of the transaction, and $25M originally.

On January 31, 2024, the Company entered into a second amended and restated credit agreement with its existing lender, providing a term of up to 24 months, which is comprised of an initial term of 18-months, plus an additional 6-month extension option (the “Extension”), which may be exercised upon mutual agreement between the Company and the lender. Inclusive of the Extension, the Amended Facility is expected to mature on January 31, 2026.

Notable Events Subsequent to March 31, 2024

Convertible Note Amendment Resulting in $1.39M Debt Reduction

On April 29, 2024, 100% of the holders of EMERGE’s 10% senior unsecured convertible debentures represented in person or by proxy at a meeting of debentureholders approved certain amendments to the terms of such debentures, including the creation of a redemption right and the extension of the maturity date of the debentures from November 2025 to November 2026. On the same date, EMERGE announced the redemption of $1,391,000 of principal amount of the debentures. On May 6, 2024, EMERGE completed this redemption by the issuance of 10,303,703 common shares in settlement of the principal amount and a further 360,629 common shares in settlement of the accrued and unpaid interest on the redeemed debentures, with all such shares issued at a price of $0.135 per share. The completion of the redemption effectively reduced EMERGE’s debt by $1.39 million. The amendments, the redemption and the conversion of interest are also expected to save EMERGE approximately $140K in annualized interest expense during the extended term of the debentures. The amendments also provided for an adjusted debenture conversion price of $0.135 (reduced from $0.20), which may increase the possibility of further debt reduction.

Outlook

EMERGE is seeing robust sales trends through Q2 to date, and continues to execute towards a return to organic revenue growth plan in 2024, with a substantially improved profitability profile and reduced overall debt levels.

Top Priorities

The Company’s top priorities in the near-term are to i) drive organic growth, ii) extract further operational efficiencies, and iii) opportunistically explore avenues to further pay down debt and reduce interest expense

Conference Call

Management will host a conference call on Tuesday, May 28 at 8:30 am ET to discuss its first quarter results. To access the conference call, please dial (416) 764-8650 or (888) 664-6383 and provide conference ID 66879377.

Alternatively, the conference call can be accessed online at: https://app.webinar.net/27o4Rx6jY8k 

Selected Financial Highlights

The tables below set out selected financial information and should be read in conjunction with the Company’s consolidated financial statements and MD&A for the three months ended March 31, 2024, which are available on SEDAR.

Three months ended March 31,

2024

$

2023

$

Gross Merchandise Sales1

7,645,258

7,608,218

Total revenue

5,009,051

5,325,695

Adjusted EBITDA1

(99,306)

(525,675)

Net (loss) income

485,808

(2,129,713)

Basic and diluted (loss) per share

0.00

(0.02)

1 Non-GAAP Financial Measure. Refer to section “Non-GAAP Financial Measures” for additional information.

The following table highlights Adjusted EBITDA and a reconciliation of the Company’s reported results to its adjusted measures:

Three months ended March 31,

2024

$

2023

$

Net (loss) income

485,808

(2,129,713)

Add back:

Finance costs

498,837

1,058,975

Income taxes

(170,483)

(228,060)

Amortization

59,657

794,304

EBITDA

873,819

(504,494)

Share-based compensation

25,272

77,205

Transaction cost

101,358

146,515

Foreign exchange and other losses (gains)

(623,389)

34,464

Fair value change in contingent consideration

Net loss (income) from discontinued operations

(476,366)

(279,365)

Adjusted EBITDA

(99,306)

(525,675)

The following table highlights GMS and a reconciliation of the Company’s reported results to its adjusted measures:

Three months ended March 31,

2024

$

2023

$

Revenue

5,009,051

5,325,695

Adjusted for:

Merchant costs deducted from net revenue

2,840,365

2,626,945

Sales added to deferred revenue and value of orders
fulfilled not included in revenue

1,954,445

1,593,715

Deferred and other adjustments to revenue
recognized

(1,994,282)

(1,928,954)

Advertising revenue

(164,321)

(9,183)

GMS

7,645,258

7,608,218

About EMERGE

EMERGE (TSXV: ECOM) is a premium e-commerce brand portfolio in Canada and the U.S. Our subscription and marketplace e-commerce properties provide our members with access to unique offerings across grocery and golf verticals. Our grocery businesses include truLOCAL.ca, our premium meat subscription brand, and Carnivore Club, our artisanal meat brand. Our golf businesses include UnderPar, our discounted experiences business, and JustGolfStuff, our golf products & apparel brand.

To learn more visit https://www.emerge-commerce.com/

Follow EMERGE:
LinkedIn | Twitter | Instagram | Facebook 

Cautionary notice

Neither 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.

Non-GAAP Measures

This press release makes reference to certain non-GAAP measures. These non-GAAP measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the financial information of the Company reported under IFRS. Gross Merchandise Sales (“GMS”), EBITDA, and Adjusted EBITDA should not be construed as alternatives to revenue or net income/loss determined in accordance with IFRS. GMS, EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.

GMS as defined by management is the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of discounts and refunds. Management believes GMS provides a useful measure for the dollar volume of e-commerce transactions made through our platforms and an indicator for our business performance.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA as defined by management means earnings before interest and financing costs, income taxes, depreciation and amortization, transaction costs, foreign exchange gains/losses, discontinued operations, unrealized gains/losses on contingent consideration and share-based compensation. Management believes that Adjusted EBITDA is a useful measure because it provides information about the operating and financial performance of EMERGE and its ability to generate ongoing operating cash flow to fund future working capital needs and fund future capital expenditures or acquisitions.

A reconciliation of the adjusted measures is included in the Company’s management discussion & analysis for the twelve months ended December 31, 2023 in the section “Non-GAAP Financial Measures” available through SEDAR at www.sedar.com.

Notice regarding forward-looking statements

This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information.  Actual results and developments may differ materially from those contemplated by these statements.  The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable).  Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company’s control, including the risk factors discussed in the Company’s MD&A, Prospectus Supplement and Annual Information Form and are available through SEDAR at www.sedar.com. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

On Behalf of the Board
Ghassan Halazon
Director, President and CEO

SOURCE EMERGE Commerce Ltd.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

In HelloNation, Real Estate Expert Grace Frank Shares What to Know Before Relocating to Chattanooga

Published

on

By

CHATTANOOGA, Tenn., April 27, 2026 /PRNewswire/ — What should people consider before relocating to Chattanooga,TN? According to a HelloNation article, the move involves more than a change of address. Grace Frank of Grace Frank Group explains that housing options, schools, job opportunities, and lifestyle factors all play an important role in helping newcomers settle successfully in the city.

Housing is often the first decision to make. Chattanooga offers a wide range of real estate choices, from historic downtown homes to newer suburban subdivisions and rural properties with more space. Each option comes with trade-offs. Urban neighborhoods provide convenience and entertainment, suburban areas appeal to families with larger homes and school access, and rural living offers peace and quiet but may require longer commutes and fewer services.

Affordability is another factor that draws many people to the area. Compared to larger cities, Chattanooga’s housing prices and property taxes remain relatively moderate. Still, trends vary by neighborhood. Some areas near downtown are experiencing rapid growth and rising prices. Buyers and renters who study these patterns in advance are better able to match their budget with the right community.

For families, schools are central to the relocation decision. Hamilton County features public, private, and charter schools, each offering different strengths. Many families select neighborhoods based on school zones, while others consider private education or alternative programs. Reviewing school ratings, extracurricular options, and long-term academic opportunities helps ensure the best fit for children.

Employment opportunities also make Chattanooga an attractive place to move. The job market has been growing steadily, with strengths in logistics, healthcare, technology, and advanced manufacturing. Expansion from existing companies and new businesses entering the region have created stability in both housing and employment. Prospective residents, however, should review industry-specific opportunities to confirm their career goals align with local options.

Beyond housing, schools, and work, lifestyle factors help determine how well a move turns out. Chattanooga’s reputation as an outdoor destination is one of its strongest assets. Residents enjoy access to hiking trails, mountain biking, and water activities along the Tennessee River. The city also features cultural events, a thriving restaurant scene, and live music, making it appealing for those who want balance between work and recreation.

Planning the details of the move itself is just as important. A relocation checklist can simplify the process, including securing housing, transferring utilities, and registering vehicles. Those moving from out of state should also remember to update driver’s licenses, insurance, and voter registration. Attention to these details reduces stress and prevents unnecessary delays.

Local expertise can help make the transition smoother. A real estate professional who understands Chattanooga can guide newcomers through the city’s neighborhoods, school districts, and commuting options. Their insight can save time, prevent costly mistakes, and ensure that newcomers choose a location that fits both their practical needs and lifestyle goals.

Relocating to Chattanooga offers opportunities that combine affordability, career growth, and outdoor living. Families, retirees, and young professionals are all drawn to the area’s variety of neighborhoods, active lifestyle, and strong sense of community. With careful planning, the move can be both seamless and rewarding.

What to Know Before Relocating to Chattanooga highlights the most important factors for a successful transition. This is according to Grace Frank, Real Estate Expert of Chattanooga, TN, who provides practical advice for those considering a move in HelloNation.

About HelloNation
HelloNation is a premier media platform that connects readers with trusted professionals and businesses across various industries. Through its innovative “edvertising” approach that blends educational content and storytelling, HelloNation delivers expert-driven articles that inform, inspire, and empower. Covering topics from home improvement and health to business strategy and lifestyle, HelloNation highlights leaders making a meaningful impact in their communities.

View original content to download multimedia:https://www.prnewswire.com/news-releases/in-hellonation-real-estate-expert-grace-frank-shares-what-to-know-before-relocating-to-chattanooga-302754736.html

SOURCE HelloNation

Continue Reading

Technology

Hyperscale Data Subsidiary Ault Global Commodities Announces First Silver Purchase

Published

on

By

LAS VEGAS, April 27, 2026 /PRNewswire/ — Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence (“AI”) data center company anchored by Bitcoin (“Hyperscale Data” or the “Company”), today announced that its wholly-owned subsidiary Ault Global Commodities, Inc. (“AGC”) has completed its first purchase of physical silver, acquiring 10,000 ounces of .999 fine silver bullion. The transaction was executed through AGC’s strategic partner, Scottsdale Mint, LLLP, a leading private mint specializing in high-quality investment grade precious metals with which AGC has entered into a purchase and sale agreement (the “Agreement”).

This initial acquisition of silver under the Agreement marks the official launch of the Company’s precious metals strategy and represents a key step in the Company’s broader initiative to build a diversified commodities portfolio alongside its existing digital asset and AI operations, as well as its contemplated robotics plans, each as disclosed in prior press releases.

“This initial silver purchase represents more than merely an entry into precious metals; it reflects the continued evolution of the Company’s balance sheet,” stated Milton “Todd” Ault III, Executive Chairman of Hyperscale Data. “With more than $350 million in assets, including cash and Bitcoin, we are deliberately building a diversified balance sheet designed to endure across market cycles. We believe Bitcoin and precious metals will serve as foundational pillars of that strategy, combining the asymmetric upside of digital assets with the proven stability of hard commodities. As we continue to deploy capital, our objective is clear: Strengthen our asset base, expand our global portfolio of companies, and position Hyperscale Data to create long-term value through disciplined, opportunistic capital allocation.”

The Company expects AGC to make additional purchases in the future as it continues to scale its operations in the broader commodities sector.

For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.

About Hyperscale Data, Inc.

Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, Ault Capital Group, Inc. (“ACG”), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.

Hyperscale Data currently expects the divestiture of ACG (the “Divestiture”) to occur in the second quarter of 2027. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing services, as well as a holder of the digital assets. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.

On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the “Series F Preferred Stock”) to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the “ACG Shares”). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be shareholders of ACG upon the occurrence of the Divestiture.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at hyperscaledata.com.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/hyperscale-data-subsidiary-ault-global-commodities-announces-first-silver-purchase-302753925.html

SOURCE Hyperscale Data Inc.

Continue Reading

Technology

In HelloNation, Financial Advisor Jennifer Prosise of Joliet, IL Breaks Down When to Start Financial Planning

Published

on

By

JOLIET, Ill., April 27, 2026 /PRNewswire/ — When is the right time to begin financial planning? A recent HelloNation article featuring Financial Advisor Jennifer Prosise of The Voyager Group, Ltd. in Joliet, IL, explores why early financial planning can create lasting advantages, especially during key life transitions.

 

The article challenges the common belief that financial planning only becomes necessary later in life. According to the feature, waiting until retirement planning is urgent can limit flexibility and options. By starting earlier, individuals can make gradual adjustments that align with long-term goals and reduce financial stress over time.

Jennifer Prosise explains that financial planning is most effective when it starts at the moment questions begin to surface. The article notes that planning isn’t tied to age, but to life events, such as a career change, starting a family, or returning to school. These life transitions often reshape responsibilities and future priorities, making early financial planning both timely and practical.

One of the most valuable aspects of early financial planning is habit-building. The article emphasizes how small choices about income and savings, spending, or borrowing compound over time. Establishing a structure early creates momentum and makes it easier to adapt when circumstances shift.

Career changes are a key opportunity to begin planning. With changes in income, benefits, and risk, the article advises individuals to assess how income and savings can work together more efficiently. A financial advisor can help clarify goals and offer structure during times of professional change.

For growing families, financial planning provides support when expenses increase and new needs emerge. The article points out that early planning can balance short-term decisions with long-term goals like education costs, housing needs, or lifestyle flexibility. Financial clarity during these moments reduces uncertainty and helps families prioritize with confidence.

The article also highlights how education decisions, such as starting or returning to college, can benefit from early financial planning. Loans, tuition, and long-term earnings potential all come into play. Planning in advance helps individuals evaluate tradeoffs and avoid reactive decisions that may lead to unnecessary debt.

Entrepreneurs and small business owners also find value in starting early. Business ventures bring both opportunities and risks, and financial planning helps manage both. With income fluctuations and investment decisions to weigh, early structure ensures that personal and professional goals remain aligned.

The article explains that early financial planning also creates space for gradual change. Instead of making large corrections later in life, people can make smaller, more sustainable adjustments. This flexibility supports retirement planning over a longer horizon and builds resilience during financial shifts.

Jennifer Prosise also points out the emotional benefits of planning early. With a framework in place, people are less likely to feel overwhelmed during uncertain times. Financial planning reduces confusion and allows for steady progress toward long-term goals.

When It Makes Sense to Start Financial Planning features insights from Jennifer Prosise, Financial Advisor of Joliet, IL, in HelloNation.

About HelloNation
HelloNation is a premier media platform that connects readers with trusted professionals and businesses across various industries. Through its innovative “edvertising” approach that blends educational content and storytelling, HelloNation delivers expert-driven articles that inform, inspire, and empower. Covering topics from home improvement and health to business strategy and lifestyle, HelloNation highlights leaders making a meaningful impact in their communities.

View original content to download multimedia:https://www.prnewswire.com/news-releases/in-hellonation-financial-advisor-jennifer-prosise-of-joliet-il-breaks-down-when-to-start-financial-planning-302754763.html

SOURCE HelloNation

Continue Reading

Trending