Vision Marine Technologies(US:VMAR)2023-11-28 02:20Financial Performance - Total revenues for the year ended August 31, 2023, were $5,651,502, a decrease of 23% compared to $7,350,946 in 2022[15]. - Gross profit for 2023 was $1,536,426, down from $3,285,565 in 2022, indicating a significant decline in profitability[15]. - The net loss for the year was $20,877,186, compared to a net loss of $13,111,785 in 2022, representing a 59% increase in losses[15]. - The company reported a basic and diluted loss per share of $2.25 for 2023, compared to $1.58 in 2022, indicating worsening financial performance on a per-share basis[15]. - Cash used in operating activities was $14,007,923, compared to $10,996,819 in the previous year[17]. - The company experienced a net decrease in cash of $2,465,459 during the year, compared to a decrease of $12,323,105 in 2022[19]. - The company’s cash flows from operations have been negative for three consecutive years[27]. - The company has expressed substantial doubt about its ability to continue as a going concern due to recurring losses from operations[5]. Assets and Liabilities - Total assets decreased to $24,046,512 as of August 31, 2023, down from $29,100,209 in 2022, indicating a reduction in the company's asset base[11]. - Total liabilities increased significantly to $12,482,075 in 2023, compared to $5,071,613 in 2022, highlighting a growing financial burden[11]. - Shareholders' equity fell to $11,564,437 in 2023, down from $24,028,596 in 2022, reflecting the impact of ongoing losses[11]. - Cash reserves decreased to $3,359,257 in 2023 from $5,824,716 in 2022, suggesting liquidity challenges[11]. - Trade payables rose significantly to $1,107,310 in 2023 from $737,946 in 2022, representing an increase of approximately 50.1%[13]. - Lease liabilities closed at $2,641,794 in 2023, up from $2,415,549 in 2022, indicating an increase of about 9.4%[15]. - Long-term debt increased to $305,329 in 2023 from $227,349 in 2022, reflecting a rise of approximately 34.3%[16]. Revenue Breakdown - Sales of boats decreased to $1,287,979 in 2023 from $2,459,365 in 2022, representing a decline of 48%[182]. - Boat rental and boat club membership revenue was $4,038,803 in 2023, down from $4,793,860 in 2022, a decrease of 16%[182]. - The geographical distribution of revenue shows that the USA contributed $5,116,927 in 2023, accounting for the majority of total revenue[182]. Research and Development - Research and development expenses increased to $5,704,912 in 2023, up 154% from $2,242,794 in 2022, reflecting a strong focus on innovation[15]. - The Company has available Canadian federal non-refundable investment tax credits of $642,000 for research and development expenditures, up from $240,000 in 2022, which may reduce future income taxes payable[190]. Impairments and Losses - The company recorded an impairment of $2,637,000 on debentures due to Limestone's bankruptcy filing[137]. - The fair value change of the debentures resulted in a loss of $88,866 for 2023, compared to a loss of $670,000 in 2022[138]. - The Company recorded an impairment loss on Debentures during the three months ended February 28, 2023, based on the estimated recoverable amount of the financial asset[199]. Financing Activities - The company raised net proceeds of $12,437,523 from the issuance of shares during the year[27]. - Cash provided by financing activities was $12,079,484, a significant increase from cash used in financing activities of $361,783 in 2022[17]. - The company is actively pursuing additional financing to fund operations and commercialize its E-Motion powertrain business[27]. - The company is evaluating strategies to increase liquidity, including cost savings initiatives and seeking additional financing[29]. Taxation - The income tax expense for the Company for 2023 was $(280,875), compared to a recovery of $258,343 in 2022, reflecting a significant change in tax status and adjustments in deferred income tax assets[23]. - The total income tax expense for 2023 included a change in recognition of deferred income tax assets amounting to $5,328,487, compared to $2,816,417 in 2022[23]. - The balance of unrecognized deferred tax assets increased to $(11,478,990) as of August 31, 2023, from $(6,016,278) in 2022[23]. Capital Management - The Company manages its capital structure by considering economic conditions and may issue debt or new shares as needed[192]. - The Company does not have any externally imposed capital compliance requirements as of August 31, 2023[193].