Vox Royalty (VOXR) - 2023 Q2 - Quarterly Report

Financial Performance - Total revenue for Q2 2023 was $2,217,384, representing a 26.7% increase from $1,750,754 in Q2 2022[6] - Royalty revenue for the first half of 2023 reached $5,798,239, up 99.1% compared to $2,906,689 in the same period of 2022[6] - Gross profit for Q2 2023 was $1,831,488, a 26.8% increase from $1,444,878 in Q2 2022[6] - The company reported a net loss of $48,443 for Q2 2023, compared to a net income of $432,569 in Q2 2022[6] - Operating expenses for Q2 2023 were $2,349,226, compared to $1,476,025 in Q2 2022, reflecting a 59% increase[6] - Other income for Q2 2023 was $983,342, a decrease of 27.3% compared to $1,352,963 in Q2 2022[56] - Interest income rose significantly to $68,952 in Q2 2023, compared to $8,346 in Q2 2022, marking a 726.5% increase[56] Cash and Liquidity - Cash and cash equivalents increased to $11,278,440 as of June 30, 2023, up from $4,174,654 at the end of Q2 2022[4] - Cash and cash equivalents at the end of the period stood at $11,278,440, a substantial increase from $1,532,542 in the previous period[11] - The company had cash and cash equivalents of $11,278,440 as of June 30, 2023, up from $4,174,654 at the end of 2022, indicating improved liquidity[73] Assets and Equity - Total assets grew to $47,945,297 as of June 30, 2023, compared to $41,805,456 at the end of Q2 2022[4] - Total equity increased to $41,202,776 as of June 30, 2023, up from $35,414,448 at the end of Q2 2022[4] - As of June 30, 2023, the total equity of the company increased to $41,202,776 from $35,414,448 as of December 31, 2022, reflecting a growth of approximately 16%[85] Liabilities and Expenses - Total accounts payable and accrued liabilities decreased to $1,617,923 as of June 30, 2023, down from $1,766,131 as of December 31, 2022, representing a reduction of about 8.4%[33] - General and administrative expenses for Q2 2023 totaled $1,555,689, an increase of 17.5% from $1,323,680 in Q2 2022[55] - Salaries and benefits increased to $786,976 in Q2 2023, up 33.3% from $590,261 in Q2 2022[55] Shareholder Returns - The company declared dividends totaling $1,026,068 during the first half of 2023[8] - Dividends declared included $0.011 per common share for the quarter ending June 30, 2023, totaling $529,672 payable on July 14, 2023[38] - A quarterly dividend of $0.011 per common share was declared on August 10, 2023, payable on October 13, 2023, to shareholders of record as of September 29, 2023[88] Capital Raising and Investments - The company raised $7,260,000 through the issuance of common shares, demonstrating strong investor interest[11] - The company reported a net cash flow from financing activities of $6,062,288, compared to $139,767 in the previous period, reflecting strong capital raising efforts[11] - Cash flows used in investing activities totaled $(6,968) compared to $(4,127,051) in the previous period, indicating a shift towards more conservative investment strategies[11] Royalty and Asset Management - The company prioritized acquiring royalties on producing or near-term producing assets, with approximately 80% of its assets located in Australia, Canada, and the USA[14] - The company fully impaired the Alce royalty, reducing its carrying value by $500,000 to $nil due to the non-renewal of mining claims[29] - The company is committed to milestone payments totaling $12,036,260 related to royalty acquisitions[60] - The company entered into a royalty sale and purchase agreement on July 28, 2023, with a potential cash consideration of up to A$8,000,000, subject to certain rights being exercised[87] Share Structure - The weighted average number of shares outstanding increased to 45,592,341 in Q2 2023 from 41,585,170 in Q2 2022[6] - The number of common shares issued and outstanding increased to 48,151,956 as of June 30, 2023, compared to 44,758,269 as of December 31, 2022, indicating an increase of approximately 7.5%[34] - The company completed a public offering of 3,025,000 common shares at $2.40 per share, generating gross proceeds of $7,260,000[35] Financial Instruments and Valuation - The balance of Level 3 financial instruments decreased to $324,238 as of June 30, 2023, down from $601,715 at the end of 2022, indicating a decline of about 46%[84] - The company reported a change in valuation of financing warrants resulting in a loss of $156,696 for the period ending June 30, 2023[84] - The total liabilities related to warrants decreased to $288,520 as of June 30, 2023, down from $445,216 as of December 31, 2022[47] Taxation - Current tax expense for Q2 2023 was $(25,951), compared to a tax recovery of $57,155 in Q2 2022[69]