OneSoft Solutions (OSS) investor relations material

Executive summary

• Q2 2024 revenue increased 24% year-over-year to $3.1M, driven by new and existing CIM customers, despite a decrease in IM operations revenue.

• Gross profit rose 25% to $2.4M, with a stable gross margin of 76%, but higher staff and non-cash expenses led to a net loss of $615K for the quarter.

• Adjusted EBITDA loss improved to $17K in Q2, trending toward positive cash flow.

• The company announced a pending sale to Irth Solutions at $0.88 per share, representing a 42% premium to prior close and a significant premium to market value.

• H1 2024 revenue up 28% to $6M; gross margin improved to 76% from 73%.

Financial highlights

• Q2 2024 revenue grew by CAD 609,000 year-over-year; six-month revenue up CAD 1,307,000 or 28%.

• Gross profit for the six months increased by CAD 1,093,000, with gross margin up 2.2% to 75.6%.

• Net loss for Q2 was $615K (vs. $558K in Q2 2023); six-month net loss increased by $133K.

• Adjusted EBITDA loss for H1 2024 was $261K, a $321K improvement year-over-year.

• Cash and cash equivalents stood at $5.7M as of June 30, 2024; cash generated in the six months was $942,000.

Outlook and guidance

• Fiscal 2024 revenue guidance maintained at $15M–$16M, a 44–54% increase over 2023.

• Management expects to close revenue gap by year-end despite delayed customer signings, with profitability anticipated in the second half if sales forecasts are met.

• Net loss and Adjusted EBITDA guidance unchanged, pending Q3 review.

• Business to operate as usual until Irth transaction closes; focus remains on new modules and customer growth.