Vox Royalty (VOXR) - 2024 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2024, was $2,882,512, a decrease of 19.5% compared to $3,580,855 for the same period in 2023[9] - Gross profit for the period was $2,414,139, down from $2,964,857, reflecting a gross margin decrease[9] - Net loss for the period was $241,387, significantly improved from a net loss of $681,239 in the prior year[9] - Revenue from Australia was $2,862,195, slightly up from $2,819,734 in the previous year, while revenue from Nigeria dropped to $0 from $717,883[71] - The company reported a current tax expense of $591,151 for Q1 2024, compared to $178,977 in Q1 2023, indicating an increase of 230.5%[72] Cash and Liquidity - Cash and cash equivalents increased to $9,565,229 as of March 31, 2024, compared to $4,166,474 at the end of the same period in 2023[13] - The company’s liquidity management strategy includes maintaining sufficient cash and cash equivalents to meet financial obligations, with working capital reported at $10,684,347 as of March 31, 2024[77] - As of March 31, 2024, the company had cash and cash equivalents of $9,565,229, up from $9,342,880 at the end of 2023, reflecting a 2.4% increase[77] Assets and Liabilities - Total assets decreased to $52,237,205 from $52,706,609 year-over-year[6] - Total liabilities decreased to $7,524,712 from $7,782,939, indicating improved financial stability[6] - The total equity of the company as of March 31, 2024, was $44,712,493, a slight decrease from $44,923,670 at the end of 2023[86] - Total accounts payable and accrued liabilities decreased from $1,840,092 in December 2023 to $1,114,042 in March 2024, a reduction of approximately 39.4%[44] - The company’s non-current assets decreased from $39,423,907 on December 31, 2023, to $39,058,086 as of March 31, 2024, a decline of 0.9%[71] Shareholder Information - Share capital increased to $68,230,625 as of March 31, 2024, from $67,889,465 at the end of 2023[10] - The weighted average number of shares outstanding increased to 50,121,850 from 44,976,602 year-over-year[9] - The number of common shares issued and outstanding increased from 49,985,102 as of December 31, 2023, to 50,121,850 as of March 31, 2024[46] - Dividends declared for the three months ended March 31, 2024, amounted to $601,462, with a dividend per common share of $0.012[48] - The company declared a quarterly dividend of $0.012 per common share, payable on July 12, 2024, to shareholders of record as of June 28, 2024[88] Expenses and Costs - General and administrative expenses decreased from $1,301,245 in Q1 2023 to $1,110,134 in Q1 2024, reflecting a decline of approximately 14.7%[61] - Interest expense on the credit facility for the three months ended March 31, 2024, was $24,938, contributing to total interest and finance expenses of $73,705[40] - Key management personnel compensation decreased from $1,318,810 in Q1 2023 to $1,133,701 in Q1 2024, a reduction of approximately 14.0%[63] - The company incurred $458,416 in legal fees related to the credit facility implementation, with a one-time arrangement fee of $150,000 paid to BMO[38] Royalty Interests and Acquisitions - The company is focused on acquiring royalties on producing or near-term producing assets to enhance its portfolio[15] - As of March 31, 2024, total royalty interests amounted to $37,005,967, a decrease from $37,443,198 as of December 31, 2023, representing a decline of approximately 1.2%[34] - Royalties receivable decreased to $3,176,277 from $3,414,128, indicating a reduction of about 6.9%[31] - The company has milestone payments totaling $9,480,993 related to various royalty acquisitions, with significant amounts tied to the Limpopo and Brits projects[67] - The company expects to receive a transaction fee of up to 3.0% from coal royalty transactions under a new Intellectual Property Licensing Agreement[43] Credit Facility - The company entered into a $15,000,000 secured revolving credit facility with the Bank of Montreal, which includes an accordion feature for an additional $10,000,000[36] - As of March 31, 2024, there were no amounts outstanding under the credit facility, and all financial covenants were met[36] - The company has deferred royalty acquisition costs of $12,930 as of March 31, 2024, related to costs incurred prior to the execution of a royalty acquisition[35] Accounting and Standards - The company is currently assessing the impact of new accounting standards, including IFRS 18, which will be effective for annual reporting periods beginning January 1, 2027[26] - The Company recorded a fair value change of other liabilities amounting to $(830,924) in Q1 2024[63] - The company expects to reverse up to $1,000,000 of the 2023 impairment charge if replacement royalties are granted, which would increase net income by the equivalent amount[65] Currency Impact - A 10% increase in the value of the Canadian and Australian dollar relative to the US dollar would increase net loss by approximately $478,000[79]