Technology
Quarterhill Announces Q2 2024 Financial Results
Published
2 years agoon
By
Mr. Vineet Khosla, AI and Machine Learning Pioneer, joins the Board of Directors
TORONTO, Aug. 9, 2024 /CNW/ – Quarterhill Inc. (“Quarterhill” or the “Company”) (TSX: QTRH) (OTCQX: QTRHF), a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (“ITS”) industry, announces its financial results for the three and six months ended June 30, 2024. All financial information in this press release is reported in United States (“US”) dollars, unless otherwise indicated.
Quarterhill has changed the presentation currency of its financial statements to US dollars, its functional currency. A significant proportion of the Company’s sales, expenses, assets, and liabilities are denominated in US dollars. This change in presentation currency aims to enhance external stakeholders’ ability to assess Quarterhill’s financial performance and to reduce the impact of foreign exchange volatility.
Q2 2024 Highlights
Revenue was $41.5 million, up 7.5% compared to $38.6 million in Q2 2023.Adjusted EBITDA1 was $1.7 million compared to $2.9 million in Q2 2023.Cash from operations was $0.8 million compared to cash used in operations of ($10.3) million in Q2 2023.Revenue backlog3 was $500 million at June 30, 2024.Completed acquisition of Red Fox I.D. Limited (“Red Fox”), expanding the Company’s software offerings.Red Fox won two prestigious King’s Awards: one for innovation and one for excellence in international trade.
“Q2 saw continued execution on our goals to drive top-line growth, expand Adjusted EBITDA margin and improve cash flow,” said Chuck Myers, CEO at Quarterhill. “Adjusted EBITDA margin grew sequentially from Q1, and we anticipate continued progress in growing our margin throughout the year. Additionally, we generated positive cash flow from operations for the first time in two years and expect our cash balance to grow through the end of the year.”
“Our two business units – tolling and enforcement – made progress in Q2 on their ongoing projects as well as closing new business, resulting in a contracted revenue backlog of $500 million at quarter end. We remain focused on leveraging the improvements we’ve made in the past year to our project management and contract bidding processes to grow these leading businesses. At the same time, we continue to work to increase our market reach through operational integration, exploring new opportunities in Europe, penetrating the logistics sector and building-out our suite of software solutions, in particular with artificial intelligence (AI) applications.”
Board of Directors Update
Quarterhill announces that Vineet Khosla, Chief Technology Officer at the Washington Post, has joined the Board of Directors, effective immediately. Mr. Khosla has an extensive track record as an innovator and executive at some of the world’s largest technology companies. A pioneering researcher and leading voice in AI, machine learning, and cloud computing, he has driven significant advancements in these fields.
Since joining the Washington Post in 2023, Mr. Khosla has led the engineering team, executing the next phase of the company’s innovation strategy. Prior to the Post, Vineet served as Senior Engineering Manager at Uber, where he was responsible for the development of their map routing engine, which optimizes routes and timing. Before his tenure at Uber, he was the first engineering hire for Siri’s natural language engine at Apple, where he spent over eight years in senior engineering roles, developing and managing Siri’s AI engine. Mr. Khosla holds a Master’s in AI from the University of Georgia, earned in 2005.
“We are very pleased to welcome Vineet to the Board,” said Rusty Lewis, Chair of the Board at Quarterhill. “His deep expertise in AI and machine learning, combined with his experience at the intersection of transportation and technology, will play a key role in the development of our product roadmap and our push to expand the software side of our business.”
Q2 2024 Financial Review
Quarterhill’s Management’s Discussion and Analysis and financial statements for the three and six months ended June 30, 2024 are available at the Company’s website and at its profile at SEDAR+.
Financial statements for the three and six months ended June 30, 2023, have been prepared to reflect continuing operations, and therefore, exclude results during that period from Wi-LAN Inc. (“WiLAN”), which was sold by Quarterhill on June 15, 2023.
Revenues for the three and six months ended June 30, 2024, were $41.5 million and $76.4 million, up 7.5% and 14%, respectively, compared to $38.6 million and $67.0 million in the three and six months ended June 30, 2023. The increase in revenues was due to increased activity and improved performance with North American project revenue.
Gross profit2 as a value and as a percentage of revenues may be subject to significant variance in each reporting period due to the nature and type of contract and service work performed. Gross profit for the three and six months ended June 30, 2024, was $8.5 million and $14.9 million, or 21% and 19%, as compared to $10.0 million and $13.8 million, or 26% and 21%, in the three and six months ended June 30, 2023. While gross profit margin percentage has increased on a sequential quarterly basis, the year-over-year decreases compared to the prior year periods were primarily due to one tolling project that is in the maintenance phase but experiencing a transitory period of lower-than-expected margin. The year-over-year decreases in gross profit margin were partially offset by continued strong performance in the Company’s enforcement operations.
Total operating expenses are comprised of selling, general and administrative costs (“SG&A”), research and development (“R&D”) costs, depreciation, amortization of intangible assets and other charges. Total operating expenses for the three and six months ended June 30, 2024, were $10.8 million and $21.2 million compared to $10.6 million and $22.2 million in the three and six months ended June 30, 2023. The year-over-year changes were primarily due to lower R&D expenses and other charges offset by higher SG&A.
Adjusted EBITDA1 for the three and six months ended June 30, 2024, was $1.7 million and $1.8 million compared to $2.9 million and ($0.9) million for the three and six months ended June 30, 2023. The decrease in Adjusted EBITDA for the three months ended June 30, 2024, compared to the prior year period, was due to lower gross profit as previously explained, and offset, in part, by increased revenue and lower operating expenses. This increase in Adjusted EBITDA for the six months ended June 30, 2024, compared to the prior year period, was due to higher revenue and lower operating expenses.
Net loss from continuing operations for the three and six months ended June 30, 2024, was ($3.0) million and ($7.2) million, or ($0.03) and ($0.06) per diluted share, compared to a net loss from continuing operations of ($10.2) million and ($19.3) million, or ($0.09) and ($0.17) per diluted share, for the three and six months ended June 30, 2023.
Cash generated (used) in continuing operations for the three and six months ended June 30, 2024, was $0.8 million and ($9.3) million compared to cash used in continuing operations of ($6.9) million and ($13.5) million for the three and six months ended June 30, 2023.
Cash and cash equivalents were $24.0 million at June 30, 2024, compared to $42.7 million at December 31, 2023. The uses of cash in the three months ended June 30, 2024, included a net amount of $4.9 million spent on the acquisition of Red Fox.
Adjusted Working Capital4 was $68.4 million at June 30, 2024, compared to $78.9 million at December 31, 2023. Due to the nature of the Company’s business activities, operating cash flows may vary significantly between periods due to changes and timing in working capital balances.
1.
Please refer to the Adjusted EBITDA Non-IFRS Financial Measures section for further information.
2.
Please refer to Gross Margin % in the Supplementary Financial Measures section for further information.
3.
Please refer to the Backlog – Non-IFRS Financial Measures section for further information.
4.
Please refer to the Adjusted Working Capital – Non-IFRS Financial Measures section for further information.
Conference Call and Webcast
Quarterhill will host a conference call to discuss its financial results on Friday, August 9, 2024, at 10:00 AM Eastern Time.
Webcast Information
Live audio webcast will be available at: https://app.webinar.net/E0GnDAr2wRQWebcast replay will be available at: https://app.webinar.net/E0GnDAr2wRQ
Traditional Dial-in Information
To access the call from the U.S. and Canada, dial 1.800.836.8184 (Toll Free)To access the call from other locations, dial 1.289.819.1350 (International)
Rapidconnect
To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/4cZxWpC
Telephone Replay
Telephone replay will be available from August 9, 2024, until August 16, 2024, at: 1.888.660.6345 (Toll Free North America) or 1.289.819.1450.
Conference ID: 52352 and Replay Passcode: 52352#
Non-IFRS Financial Measures and Non-IFRS Ratios
Quarterhill uses both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.
These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS, and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition, and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.
Adjusted EBITDA – Non-IFRS Financial Measures
We use the non-IFRS financial measure “Adjusted EBITDA” to mean net (loss) income adjusted for (i) income taxes, (ii) finance expense or income; (iii) amortization and impairment of intangibles; (iv) other charges and other one-time items; (v) depreciation of right-of-use assets and property, plant and equipment; (vi) stock- based compensation; (vii) foreign exchange (gain) loss; and (viii) other income which includes equity in earnings from joint ventures; (ix) dividends received from joint ventures; and * changes in fair value of derivative liability. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill. Adjusted EBITDA should not be interpreted as an alternative to net (loss) income and cash flows from operations as determined in accordance with IFRS or as measure of liquidity. The most directly comparable IFRS financial measure is Net (loss) income.
Adjusted EBITDA per share – Non-IFRS ratio
Adjusted EBITDA per share is calculated as Adjusted EBITDA divided by the basic weighted average of common shares. Adjusted EBITDA per share is used by our management and investors to analyze cash generated by Quarterhill on a per share basis. The most comparable IFRS measure is earnings per share.
Adjusted Working Capital
Adjusted Working Capital is calculated as current assets minus current liabilities, adjusted for convertible debentures and derivative liability. Adjusted Working Capital reflects our net working capital expected to be settled in cash within twelve months.
Backlog – Non-IFRS Financial Measures
We use the non-IFRS measure “backlog” to mean the total value of work that has not yet been completed but that in management’s experience of similar situations has: (a) a high certainty of being performed pursuant to existing contracts or work orders specifying job scope, value and timing; (b) an expectation of expansion of existing contracts due to expected extensions; and/or (c) been awarded to one or more of our ITS operating subsidiaries as evidenced by a binding contract or where the finalization of a binding contract is reasonably assured. Activities under such contracts may cover a period of up to 15 years. We do not include in “backlog”, the value of any expected but unsigned change orders that management considers may apply to such contracts.
Supplementary Financial Measures
Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company (b) are not disclosed in the financial statement of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios.
Key supplementary measures disclosed are as follows:
Gross margin %
Calculated as gross profit as a percentage of revenue.
About Quarterhill
Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.
Forward-looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”) regarding Quarterhill, its operating subsidiaries and their respective businesses. Such forward-looking statements relate to future events, conditions or future financial performance of Quarterhill based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as “seek”, “anticipate”, “budget”, ”plan”, “goal”, and similar expressions. These statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. In particular, this news release contains forward-looking statements pertaining to, but not limited to, the following: operational and financial expectations for the 2024 financial year, including revenue, gross margin and Adjusted EBITDA expectations; and the Company’s business plan.
Although the forward-looking statements contained in this news release are based upon assumptions which management of the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, but not limited to: the Company’s ability to execute on its business plan; successful integration of Red Fox; general economic and industry trends; operating assumptions relating to the Company’s operations; demand for the Company’s products and services; cost estimates for fixed price contracts; and the other assumptions set forth in the Company’s most recent annual information form available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
The Company’s actual results could differ materially from those anticipated in the forward-looking statements, as a result of numerous known and unknown risks and uncertainties and other factors including, but not limited to: changes in demand for the Company’s products and services; general economic, political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, stock market volatility; reliance on key management personnel; risks related to competition within the Company’s industry and relating to technological advances; litigation risks; cyber-security risks; fixed price contracts may result in unexpected costs to the Company; risks of health epidemics, pandemics and similar outbreaks; and the other risks set forth in the Company’s most recent annual information form and management’s discussion and analysis for the three and twelve months ended December 31, 2023 available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Readers are therefore cautioned that the foregoing lists of important factors are not exhaustive, and they should not unduly rely on the forward-looking statements included in this news release. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Quarterhill has no intention, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
This news release contains “future-oriented financial information” and “financial outlooks” within the meaning of applicable Canadian securities laws (collectively, “FOFI”), including about the financial results, revenue, gross margin and Adjusted EBITDA of Quarterhill for the year ended December 31, 2024. FOFI, as with forward-looking statements generally, are, without limitation, based on the assumptions and qualifications, and are subject to the risks, set out above in respect of forward-looking statements. Quarterhill’s actual financial position and results of operations may differ materially from management’s current expectations and, as a result, the Company’s financial results may differ materially from the FOFI provided in this news release. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments and the FOFI contained in this news release was approved by management as of the date hereof, for purposes of providing further information about the Company’s future business operations and results. However, because this information is subjective and subject to numerous risks and assumptions, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein, and such information is presented for illustrative purposes only and may not be an indication of the Company’s actual financial position or results of operations.
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(in thousands and in United States dollars, except share and per share amounts)
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
(restated)
(restated)
Revenues
$41,513
$38,623
$76,410
$66,969
Direct cost of revenues
32,997
28,616
61,537
53,205
Gross profit
8,516
10,007
14,873
13,764
Operating expenses
Selling, general and administrative expenses
7,073
6,132
13,448
13,090
Research and development expenses
479
1,008
796
1,877
Depreciation of right-of-use assets
364
384
708
721
Depreciation of property, plant and equipment
383
407
760
818
Amortization of intangible assets
2,140
2,088
4,377
4,175
Other charges
321
555
1,155
1,519
10,760
10,574
21,244
22,200
Results from operations
(2,244)
(567)
(6,371)
(8,436)
Finance income
(97)
(27)
(365)
(60)
Finance expense
1,651
1,731
3,356
3,368
Foreign exchange (gain) loss
(387)
769
(1,497)
1,104
Other income
(267)
(227)
(134)
(458)
Change in fair value of derivative liability
(432)
(11)
(927)
(215)
Loss before taxes
(2,712)
(2,802)
(6,804)
(12,175)
Current income tax expense (recovery)
272
(2,688)
345
(2,570)
Deferred income tax (recovery) expense
(17)
10,073
36
9,665
Income tax expense
255
7,385
381
7,095
Net loss from continuing operations
(2,967)
(10,187)
(7,185)
(19,270)
Net loss from discontinued operations
–
(11,594)
–
(14,061)
Net loss
(2,967)
(21,781)
(7,185)
(33,331)
Other comprehensive loss that may be reclassified
subsequently to net loss:
Foreign currency translation adjustment
(247)
(2,905)
(932)
(2,590)
Comprehensive loss
($3,214)
($24,686)
($8,117)
($35,921)
Loss per share – Basic
From continuing operations
($0.03)
($0.09)
($0.06)
($0.17)
From discontinued operations
–
(0.10)
–
(0.12)
Loss per share – Basic
($0.03)
($0.19)
($0.06)
($0.29)
Loss per share – Diluted
From continuing operations
($0.03)
($0.09)
($0.06)
($0.17)
From discontinued operations
–
(0.10)
–
(0.12)
Loss per share – Diluted
($0.03)
($0.19)
($0.06)
($0.29)
Interim Condensed Consolidated Statements of Financial Position
(in thousands and in United States dollars)
As at
June 30, 2024
December 31, 2023
January 1, 2023
(restated)
(restated)
Current assets
Cash and cash equivalents
$24,041
$42,733
$48,905
Short-term investments
–
–
1,142
Restricted short-term investments
–
–
4,812
Accounts receivable, net
29,396
27,291
17,155
Unbilled revenue
39,465
34,247
30,529
Income taxes receivable
130
–
251
Inventories (net of obsolescence)
11,453
10,760
10,076
Prepaid expenses and deposits
4,067
4,795
5,050
108,552
119,826
117,920
Non-current assets
Accounts and other long-term receivables
4,516
4,364
397
Long-term prepaid expenses and deposits
–
–
1,257
Right-of-use assets, net
5,452
5,288
7,600
Property, plant and equipment, net
3,786
4,136
5,104
Intangible assets, net
79,799
79,092
104,164
Investment in joint venture
4,782
5,054
5,712
Investment in other entity
2,898
2,898
–
Deferred compensation asset
1,048
952
991
Deferred income tax assets
–
–
18,903
Goodwill
31,046
29,019
41,556
133,327
130,803
185,684
TOTAL ASSETS
$241,879
$250,629
$303,604
Liabilities
Current liabilities
Accounts payable and accrued liabilities
$28,350
$30,330
$34,685
Income taxes payable
734
662
724
Current portion of lease liabilities
2,056
1,954
1,924
Current portion of deferred revenue
6,869
5,806
6,295
Current portion of long-term debt
2,125
2,125
21,588
Convertible debentures
37,840
38,196
35,655
Derivative liability
1,296
2,290
1,316
79,270
81,363
102,187
Non-current liabilities
Deferred revenue
1,252
621
2,022
Long-term lease liabilities
5,529
5,727
7,116
Long-term debt
16,293
17,312
–
Deferred compensation liabilities
1,065
945
862
Deferred income tax liabilities
2,032
1,221
1,519
26,171
25,826
11,519
TOTAL LIABILITIES
105,441
107,189
113,706
Shareholders’ equity
Capital stock
314,119
313,738
401,248
Contributed surplus
126,863
126,129
37,545
Accumulated other comprehensive income
14,720
15,652
15,928
Deficit
(319,264)
(312,079)
(264,823)
136,438
143,440
189,898
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$241,879
$250,629
$303,604
Interim Condensed Consolidated Statements of Cash Flows
(in thousands and in United States dollars)
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
(restated)
Operating activities:
Net loss from continuing operations
($2,967)
($10,187)
($7,185)
($19,270)
Add (deduct) non-cash items:
Stock-based compensation expense
708
39
1,212
270
Depreciation and amortization
2,887
2,879
5,845
5,714
Foreign exchange (gain) loss
(387)
769
(1,497)
1,104
Other income
(315)
(227)
(134)
(458)
Deferred and non-cash income tax (recovery) expense
(17)
10,073
36
9,665
Embedded derivatives
(33)
–
6
93
Change in fair value of derivative liability
(432)
(11)
(927)
(215)
Non-cash interest expense
552
873
1,092
1,351
Net change in non-cash working capital balances
806
(11,083)
(7,760)
(11,704)
Cash generated from (used in) continuing operations
802
(6,875)
(9,312)
(13,450)
Net operating cash flows attributable to discontinued operations
–
(3,378)
–
(4,685)
Net cash generated from (used in) operating activities
802
(10,253)
(9,312)
(18,135)
Financing activities:
Dividends paid
–
(1,067)
–
(2,127)
Payment of lease liabilities
(561)
(436)
(1,138)
(828)
Repayment of long-term debt
(531)
(625)
(1,062)
(1,250)
Cash used in financing activities
(1,092)
(2,128)
(2,200)
(4,205)
Net financing cash flows attributable to discontinued operations
–
(51)
–
(100)
Net cash used in financing activities
(1,092)
(2,179)
(2,200)
(4,305)
Investing activities:
Net proceeds from disposition of a subsidiary
–
32,021
–
32,021
Cash sold on disposition of a subsidiary
–
(8,000)
–
(8,000)
Acquisition of business, Red Fox
(7,181)
–
(7,181)
–
Cash acquired on acquisition of business, Red Fox
2,296
–
2,296
–
Proceeds from sale of property, plant and equipment
10
–
10
–
Purchase of property, plant and equipment
(344)
(305)
(545)
(638)
Capitalized software costs
(650)
(932)
(1,373)
(2,316)
Cash (used in) generated from investing activities
(5,869)
22,784
(6,793)
21,067
Net investing cash flows attributable to discontinued operations
–
1,194
–
1,194
Net cash used in investing activities
(5,869)
23,978
(6,793)
22,261
Foreign exchange on cash held in foreign currencies
(223)
(2,514)
(386)
(2,692)
Net (decrease) increase in cash and cash equivalents
(6,382)
9,032
(18,692)
(2,871)
Cash and cash equivalents, beginning of period
30,423
37,002
42,733
48,905
Cash and cash equivalents, end of period
$24,041
$46,034
$24,041
$46,034
Interim Condensed Consolidated Statements of Shareholders’ Equity
(in thousands and in United States dollars)
Capital
Stock
Contributed
Surplus
Accumulated
Other
Comprehensive
Income
Deficit
Total
Shareholders’
Equity
Balance, January 1, 2023 (restated)
$401,248
$37,545
$15,928
($264,823)
$189,898
Net loss
–
–
–
(33,331)
(33,331)
Other comprehensive loss
–
–
(2,590)
–
(2,590)
Stock-based compensation expense
–
288
–
–
288
Common shares issued from restricted stock units
60
(63)
–
–
(3)
Reduction of stated capital
(87,948)
87,948
–
–
–
Dividends declared
–
–
–
(1,060)
(1,060)
Balance, June 30, 2023
$313,360
$125,718
$13,338
($299,214)
$153,202
Balance, January 1, 2024
$313,738
$126,129
$15,652
($312,079)
$143,440
Net loss
–
–
–
(7,185)
(7,185)
Other comprehensive loss
–
–
(932)
–
(932)
Stock-based compensation expense
–
1,212
–
–
1,212
Common shares issued from restricted stock units
326
(423)
–
–
(97)
Common shares issued from deferred stock units
55
(55)
–
–
–
Balance, June 30, 2024
$314,119
$126,863
$14,720
($319,264)
$136,438
Reconciliation of Net Loss to Adjusted EBITDA
(in thousands and in United States dollars, except share and per share amounts)
Three months ended June 30,
2024
2023
$
Per Share [2]
$
Per Share
(restated)
Net loss from continuing operations
($2,967)
($0.03)
($10,187)
($0.09)
Adjusted for:
Income tax expense
255
0.00
7,385
0.06
Foreign exchange (gain) loss
(387)
(0.00)
769
0.01
Finance expense, net
1,554
0.01
1,704
0.02
Other charges
321
0.00
555
0.01
Depreciation and amortization
2,887
0.03
2,879
0.03
Stock based compensation expense
708
0.01
39
0.00
Change in fair value of derivative liability
(432)
(0.00)
(11)
(0.00)
Other income
(267)
(0.00)
(227)
(0.00)
Adjusted EBITDA [1]
$1,672
$0.01
$2,906
$0.03
________________
________________
________________
________________
Weighted average number of Common Shares
Basic
115,274,980
114,649,772
Six months ended June 30,
2024
2023
$
Per Share [2]
$
Per Share
(restated)
Net loss from continuing operations
($7,185)
($0.06)
($19,270)
($0.17)
Adjusted for:
Income tax expense
381
–
7,095
0.06
Foreign exchange gain
(1,497)
(0.01)
1,104
0.01
Finance expense, net
2,991
0.03
3,308
0.03
Other charges
1,155
0.01
1,519
0.01
Depreciation and amortization
5,845
0.05
5,714
0.05
Stock based compensation expense
1,212
0.01
270
0.00
Change in fair value of derivative liability
(927)
(0.01)
(215)
(0.00)
Other income
(134)
–
(458)
(0.00)
Adjusted EBITDA [1]
$1,841
$0.02
($933)
($0.01)
________________
________________
________________
________________
Weighted average number of Common Shares
Basic
115,186,092
114,644,764
1.
Please refer to the Adjusted EBITDA Non- IFRS Financial Measures section for further information.
2.
Please refer to the Supplementary Financial Measures for further information.
View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-q2-2024-financial-results-302218638.html
SOURCE Quarterhill Inc.
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Technology
BTQ Technologies’ QSSN Selected as Core Security Infrastructure for South Korea’s First Bank-Led KRW Stablecoin Proof-of-Concept
Published
13 hours agoon
May 6, 2026By
BTQ provides strategic advisory support and QSSN as core PQC security infrastructure for the iM Bank initiative on the Kaia mainnet, advancing post-quantum migration across global financial infrastructure
BTQ has been selected as the core post-quantum cryptography security technology provider for South Korea’s first bank-led KRW stablecoin proof-of-concept, delivering its Quantum Secure Stablecoin Settlement Network (“QSSN”) for the initiative.
BTQ is providing strategic advisory support and helping coordinate implementation across the partnership with iM Bank and Finger, supporting the integration of post-quantum protections into regulated digital money infrastructure.
Built on the Kaia mainnet, the proof-of-concept is connected to the blockchain ecosystems originally developed by Kakao and LINE, linking the initiative to two of the largest messaging and digital platform ecosystems in Korea and Japan.
VANCOUVER, BC, May 6, 2026 /PRNewswire/ – BTQ Technologies Corp. (“BTQ” or the “Company”) (Nasdaq: BTQ) (CBOE CA: BTQ), a global quantum technology company focused on securing mission-critical networks, today announced that it it has been selected as the core PQC security technology provider through its Quantum Secure Stablecoin Settlement Network (“QSSN”) in a proof-of-concept with its Korean strategic partner, Finger Inc. (“Finger”), and iM Bank, a leading Korean commercial bank, for South Korea’s first bank-led Korean won stablecoin infrastructure incorporating post-quantum cryptography (“PQC”).
The proof-of-concept represents more than a technical pilot. It marks an important step in bringing next-generation quantum security into banking infrastructure within Korea’s regulated financial system. In addition to providing QSSN as the core PQC security framework, BTQ is contributing consulting and strategic coordination across the three-way partnership, helping align the project’s security architecture, implementation approach, and long-term post-quantum migration objectives.
“Post-quantum migration requires more than a cryptographic upgrade. It requires coordination across infrastructure, implementation, and institutional stakeholders,” said Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies. “In this initiative, BTQ is providing both strategic advisory support and QSSN as the post-quantum security architecture, while helping lead coordination across the three-way partnership. We believe this proof-of-concept demonstrates how financial institutions can begin integrating quantum-resilient protections into digital money systems in a practical and operationally viable way.”
South Korea’s First Bank-Led PQC Stablecoin Infrastructure Initiative
BTQ is working alongside iM Bank and Finger on a three-way initiative to validate the issuance and distribution infrastructure for a Korean won stablecoin. In addition to supplying QSSN as the PQC security layer, BTQ is providing consulting support and helping to guide coordination across the partnership as the parties evaluate how to integrate post-quantum protections into bank-led digital asset infrastructure.
The proof-of-concept will validate several key components, including real-time reconciliation between bank reserves and blockchain-issued supply, a global-standard smart contract architecture, connectivity to global infrastructure for overseas distribution, and the integration of a PQC-based dual-signature security structure. By applying BTQ’s PQC signature architecture alongside the existing ECDSA cryptographic framework, the system is designed to preserve operational continuity for financial institutions while proactively addressing future quantum computing threats.
Built on Kaia Mainnet
A notable feature of the proof-of-concept is that it will be implemented on the Kaia mainnet, one of Korea’s leading Layer 1 blockchain networks. Kaia was created through the merger of Klaytn, the blockchain originally developed by Kakao, and Finschia, the blockchain associated with LINE. Kakao and LINE sit at the center of two of the largest messaging and digital platform ecosystems in Korea and Japan, respectively, making Kaia a significant piece of regional digital infrastructure.
Klaytn previously participated in the Bank of Korea’s CBDC pilot ecosystem, and the Bank of Korea has continued to advance CBDC testing through initiatives such as Project Hangang.
By combining BTQ’s PQC technology with blockchain infrastructure tied to the Kakao and LINE ecosystems, the proof-of-concept is intended to establish a model that aligns institutional-grade security, blockchain scalability, and evolving regulatory requirements for digital money infrastructure.
QSSN as the Security Layer
The PQC security foundation for the initiative is BTQ’s Quantum Secure Stablecoin Settlement Network, or QSSN, a quantum-secure network architecture designed for stablecoin, tokenized deposit, payment, and digital asset infrastructure. QSSN is designed to protect critical issuer functions, including stablecoin issuance, burning, transfer authority, upgrade control, and administrative permissions, by integrating PQC-based signatures while maintaining existing user experience and operational workflows.
BTQ has previously announced that QSSN was highlighted in the U.S. Post-Quantum Financial Infrastructure Framework (“PQFIF”) as a model architecture for post-quantum digital money infrastructure. The Company has also positioned QSSN as a standards-oriented initiative advanced through QuINSA and aligned with emerging post-quantum financial infrastructure requirements.
Addressing the Harvest-Now, Decrypt-Later Risk
The timing of the proof-of-concept reflects the growing urgency surrounding the “Harvest-Now, Decrypt-Later” risk, in which attackers may collect encrypted financial data today and decrypt it later once sufficiently advanced quantum capabilities emerge. Global institutions are already accelerating post-quantum migration. The U.S. National Institute of Standards and Technology (“NIST”) has finalized its first set of post-quantum cryptography standards, including ML-DSA, ML-KEM, and SLH-DSA, while major technology companies and financial institutions continue to define their own post-quantum transition timelines.
BTQ’s QSSN addresses this challenge through a dual-signature design that allows existing ECDSA-based infrastructure to operate in parallel with NIST-aligned PQC signatures such as ML-DSA. This approach enables banks and payment infrastructure providers to begin a phased transition toward quantum-safe security without disrupting existing systems.
Expanding BTQ’s Korean Ecosystem
BTQ continues to expand its Korean ecosystem across digital assets, payments, banking infrastructure, and hardware-based security. In October 2025, BTQ announced that Finger had joined Danal as an early participant in BTQ’s QSSN pilot program, with the initiative expected to progress from proof-of-concept toward commercialization under QuINSA-aligned guidelines and broader industry frameworks such as PQFIF.
The commencement of the iM Bank proof-of-concept represents an important commercial signal for BTQ, indicating that demand for post-quantum migration among Korean financial institutions is beginning to move from policy discussion toward infrastructure-level implementation. As Korea advances both quantum technology policy and stablecoin-related regulatory discussions, BTQ believes QSSN is well positioned at the intersection of regulated finance, digital asset infrastructure, and post-quantum security.
About iM Bank
iM Bank is a South Korean commercial bank and a subsidiary of DGB Financial Group. Headquartered in Daegu, iM Bank presents itself as a financial companion for customers and traces its roots to Daegu Bank, which was established in 1967 as Korea’s first regional bank. For more information, please visit https://www.imbank.co.kr/
About Finger Inc. Group
Finger supplies and develops financial IT solutions to provide optimized money management strategies for employees and corporate customers. Providing “Smartphone Financial Services”, “Corporate Cash Management Services” for businesses, “Private Wealth Management Services” for private consumers.
Since the year 2000, Finger has accumulated a number of awards and patents regarding its businesses. Based on its Mobile Enterprise Application Platform(MEAP) Orchestra and its funds management system using screen-scrapping technologies, Finger was the first company in Korea to deliver a smartphone banking banking-service. For more information, please visit http://www.finger.co.kr/
About BTQ
BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ) is a quantum technology company focused on accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio and deep technical expertise, BTQ is advancing a full-stack, neutral-atom quantum computing platform spanning hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.
Connect with BTQ: Website | LinkedIn | X/Twitter
ON BEHALF OF THE BOARD OF DIRECTORS
Olivier Roussy Newton
CEO, Chairman
Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as “anticipate”, “intend”, “expect”, “plan” or “may” and the variations of these words are intended to identify forward-looking statements and information.
The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.
Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company’s research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
View original content to download multimedia:https://www.prnewswire.com/news-releases/btq-technologies-qssn-selected-as-core-security-infrastructure-for-south-koreas-first-bank-led-krw-stablecoin-proof-of-concept-302763840.html
SOURCE BTQ Technologies Corp.
Technology
Zimmer Biomet to Present at the BofA Securities 2026 Health Care Conference
Published
13 hours agoon
May 6, 2026By
WARSAW, Ind., May 6, 2026 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that members of the Zimmer Biomet management team will participate in the Bank of America Securities Health Care Conference on Wednesday, May 13, 2026, with a fireside chat at 8:40 a.m. PT (11:40 a.m. ET).
A live audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com. It will be available for replay following the fireside chat.
About Zimmer Biomet
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.
With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation.
For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X at www.x.com/zimmerbiomet.
Contacts:
Media
Investors
Troy Kirkpatrick
David DeMartino
614-284-1926
646-531-6115
troy.kirkpatrick@zimmerbiomet.com
david.demartino@zimmerbiomet.com
Kirsten Fallon
Zach Weiner
781-779-5561
908-591-6955
View original content to download multimedia:https://www.prnewswire.com/news-releases/zimmer-biomet-to-present-at-the-bofa-securities-2026-health-care-conference-302763299.html
SOURCE Zimmer Biomet Holdings, Inc.
Technology
NextLadder Ventures Announces Co-Founder Leadership Team, Investment Focus Areas For Over $1 Billion Initiative Empowering Americans with Personalized, Tech-Enabled Support Tools
Published
13 hours agoon
May 6, 2026By
New senior hires from Google and The Collaborative Fund to lead product strategy and venture investing
Fund unveils first investment focus areas to catalyze new ‘Navigation Technology’ market, equipping Americans with cutting-edge tools to achieve economic security, opportunity and empowerment
ST. LOUIS, May 6, 2026 /PRNewswire/ — NextLadder Ventures, a new fund backed by more than $1 billion in capital, today announced its priority investment areas for building a new market for “Navigation Technology” (NavTech) — tools that provide Americans with personalized solutions to navigate life’s challenges and achieve greater economic mobility — and announced its co-founding team, including two new senior hires.
The fund’s active focus areas are based on extensive research identifying the key experiences and high-stakes decision points that have an outsized impact on American families’ economic mobility. Launched investment areas include financial health, career navigation, and benefits and social services access, with further exploration underway around housing, legal aid, justice and re-entry, and mental and physical health.
The organization is also today welcoming two senior leaders: Lauren Loktev is joining NextLadder as Managing Director of Investments and Brigitte Hoyer Gosselink as Managing Director of Product. Loktev was most recently a partner at the Collaborative Fund, where she backed several breakout companies in early child development, education, and sustainability. Gosselink comes to NextLadder from Google, where she led the company’s AI and social impact portfolio. They join a growing team which has deep expertise at the intersection of economic mobility, technology, public policy, and philanthropy.
NextLadder’s Focus Areas for Investment
Today, the fund is kicking off a plan to deploy $1 billion over the next seven years to accelerate the design, development, and deployment of accessible NavTech tools that aim to help families more successfully navigate the major life experiences that determine whether they get ahead or fall behind. As NextLadder’s inaugural frontier AI lab partner, Anthropic is supporting the build-out of the organization’s AI-native capabilities and is offering technical assistance to NextLadder’s portfolio organizations.
As an increasing proportion of Americans across income levels find themselves overextended and overwhelmed, NavTech tools are designed to help individuals and families understand their options, connect to information and resources, and take action to recover from a setback or take advantage of an opportunity and reclaim their economic futures.
“Life is getting harder, and too many Americans are stuck facing some of the most complex and consequential moments of their lives without much support,” said Ryan Rippel, CEO of NextLadder Ventures. “Every day, millions in this country face fork-in-the-road decisions that have major implications on whether they climb up the economic ladder or fall farther behind. AI has understandably intensified many Americans’ anxieties about their jobs and their security in the economy. But these technologies are now also making it possible to deliver highly personalized, affordable tools to meet the needs of tens of millions of Americans in a way that has never been practically achievable or financially viable before. With NavTech tools, built for the reality of families’ everyday experiences, we can empower Americans to overcome setbacks, navigate life’s toughest financial decisions, and build more secure futures.”
NavTech tools, built with the needs of individuals, families, and trusted community partners at the center of their design, have the potential to ease burdens most acutely faced by 90 million Americans who live in households that have difficulty in paying for usual home expenses, and turbocharge the capacity of the 1.6 million community workers in non-profit or local, state, and federal government roles who serve them. This growing category of digital technologies includes tools that help families access opportunities such as personalized financial advice and legal aid, get connected with available resources and programs, and manage unexpected hurdles like losing a job or facing an eviction – while freeing social workers and service providers to spend more time on people and less time on red tape and paperwork.
The fund’s active investment areas include:
Financial Health: Developing highly personalized, AI-powered financial health tools that can provide tailored, sustained counsel to help users build savings and protect and recover from financial shocks;
Career Navigation: Building tools to support career navigation, manage and support career transitions, and help workers, case managers, and employers identify pathways to living wage work — all designed to help people successfully find the right jobs for them.
Benefits & Social Services Access: Helping eligible Americans seamlessly identify and enroll in all the benefits and social services available to them, particularly those that support career navigation and transitions, help them navigate critical life moments, and achieve stability toward economic opportunity.
NextLadder is exploring additional focus areas, including housing, legal aid, justice and re-entry, caregiving, and mental and physical health. More on the organization’s vision of these focus areas is available HERE.
In addition to backing direct NavTech solutions, NextLadder is investing in the developers, partners, and standards required to build a durable, self-sustaining market. Across all focus areas, the fund is prioritizing efforts to ensure NavTech tools are reliable, protect users’ privacy, and are trusted by the families who depend on them.
NextLadder’s Co-Founder Leadership Team
NextLadder’s five co-founders will be CEO Ryan Rippel, Chief Strategy and Operations Officer Rhett Dornbach-Bender, Chief of Staff Callie Schwartz, and the two new senior hires: Managing Director of Investments Lauren Loktev and Managing Director of Product Brigitte Hoyer Gosselink, rounding out the fund’s expertise in investing, technology, and impact.
“We’re thrilled to welcome Lauren and Brigitte to the NextLadder team,” said Rippel. “Brigitte has spent her career proving that when applied purposefully, AI and technology can deliver meaningful benefits for communities, and she’ll set the bar for what NavTech tools can deliver for American families today and in the years to come. And with her deep experience backing mission-driven founders, Lauren is the perfect leader to build our venture practice from the ground up and accelerate the growth of the NavTech field. With this team in place, we’re positioned to make NavTech tools easier to build, fund, and access so they reach the people who need them most.”
Loktev brings 15 years of venture capital experience investing at the intersection of for-profit and for-good. Most recently at Collaborative Fund, she backed several companies to significant scale and launched Collab+Sesame, a first-of-its-kind thematic seed fund in partnership with Sesame Workshop focused on early childhood education. At NextLadder, she will build and lead the fund’s venture practice, sourcing and scaling investments in the founders building the next generation of NavTech tools.
“We have a once in a generation opportunity to help steer AI solutions toward those who need them most,” said Loktev. “Many amazing, accomplished founders see this too, and they are on a mission to build scalable, transformative businesses in the critical verticals that help people navigate life-changing moments. I couldn’t be more excited to join NextLadder and to support the most inspiring leaders building this market from the ground up. Thanks to our unique, long-term mandate, we can be creative and flexible in investing across stage and check size to partner with the entrepreneurs and leaders we believe will change the world.”
Prior to her role at NextLadder, Gosselink spent over a decade at Google in several roles including Director of AI and Social Impact, directing more than $500 million in funding for organizations applying AI to address challenges including crisis response, education, and economic opportunity. At NextLadder, she will lead AI and product strategy across the fund’s portfolio, backing solutions and setting market-wide standards for how NavTech tools are designed, evaluated, and improved over time.
“If we collectively harness the AI transformation strategically and purposefully, we can transform the way Americans are empowered to access greater economic mobility,” said Gosselink. “We believe that people-centered products, combined with shifts in the market and the services available to families, can fundamentally reshape how millions of Americans navigate critical moments and achieve prosperity on their own terms.”
To request interviews from the NextLadder Ventures leadership team, contact media@nextladder.com.
About NextLadder Ventures
NextLadder Ventures is a time-bound venture with one goal: empower millions of Americans to reach their potential by 2040. Backed by over $1 billion in capital, the organization invests in breakthrough technologies that remove barriers to economic success and put people in control of their futures. NextLadder Ventures is trailblazing a new market for tech-enabled Navigation Technology tools that help people access the resources they need to navigate pivotal moments — offering flexible, risk-tolerant capital to entrepreneurs building these transformative tools today, while creating a pipeline of tech, talent, and capital for the long run.
SOURCE NextLadder Ventures
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