Turnium Technology Group Inc. Reports Fiscal 2022 Audited Financial Results

February 28, 2023 – Vancouver, Canada – Turnium Technology Group Inc. (TSX.V: TTGI) (“Turnium” or “the Company”), an industry leader in cloud-native software-defined wide area networking solutions (SD-WAN), is pleased to announce its financial results for the 2022 fiscal year. All financial information is provided in Canadian dollars unless otherwise indicated.

The Consolidated Financial Statements and Management Discussion and Analysis (“MD&A”) for the year ended September 31, 2022, are available on the Company’s SEDAR profile at www.sedar.com.

“Turnium generated $5.2 million in revenue, a year-over-year increase of 31% compared to 2021. These results represent a steady execution of our strategic growth initiatives, even during a challenging operating environment. The year also saw substantial operating achievements and cost cutting initiatives combined with management and staffing changes, strengthening its financial foundation for Turnium and positioning the company for future growth,” commented Turnium CEO Derek Spratt.

Spratt continued, “We are in a much stronger position today, even as the 2023 macro conditions and economic environment remains uncertain. In addition, the Turnium team continues to grow its sales pipeline along with expanding its newer product portfolio.  While there is still a lot of work to do, our priorities remain in growing our customer base and expanding our geographic sales footprint, while managing operational costs to provide Turnium significant economies of scale and the ability to improve margins, optimizing return on capital for Turnium shareholders.”

Fourth Quarter 2022 Highlights:

  • Revenue in the fourth quarter increased to $1.37 million, compared to $1.19 million recorded in the fourth quarter of 2021;
  • Gross Margin in the fourth quarter increased to $1.03 million, compared to $0.93 million in the fourth quarter of 2021;
  • Total Expenses in the fourth quarter increased to $2.59 million, compared to $2.35 million in the fourth quarter of 2021;
  • Cash Position at 2022 Fiscal Year End was approximately $608,000;
  • Number of Common Shares Outstanding (basic) at 2022 Fiscal Year End was 68,865,009.

Quarterly Financial Highlights:

The Company’s key financial results for the three months ended September 30, 2022, are as follows:

Canadian Dollars For the three months ended  September 30,  2022 For the three months ended June 30, 2022 For the three months ended March 31, 2022 For the three months ended December 31, 2021
Total revenue 1,370,438 1,116,517 1,451,922 1,216,162
Gross margin 1,038,438 830,511 907,383 920,178
Total Expenses 2,586,146 2,212,734 2,154,491 1,801,751
Other gain (loss) 231,824 (2,055,559) (234,915) (177,365)
Net comprehensive income (loss) (1,315,884) (3,437,782)   (1,482,023) (1,058,938)


Weighted average number of common shares outstanding 61,613,713 59,165,329 58,373,629 57,693,234
Basic and diluted loss per common share (0.02) (0.06) (0.03) (0.01)

Special Notes:

It is anticipated that revenues and expenses may vary, perhaps materially, from quarter to quarter due to several factors, including changes in product mix, costs related to planned increase in market share, global expansion costs and ongoing corporate development initiatives.  Although revenues may fluctuate from quarter to quarter, and such fluctuations may be material, management expects that revenues will increase year over year.

There are no known trends or seasonal impacts on the Company’s business although seasonal trends may develop as the Company grows.

Fiscal Year Financial Results Summary:

Results for the Years ended September 30, 2022 and 2021 are as follows:

Income Statement Data

Canadian Dollars (2)Year Ended September 30, 2022 Consolidated (1)Year Ended September 30, 2021 Consolidated
Revenue 5,080,675 3,898,099
Agent revenue 74,364 51,701
Total Revenue 5,155,039 3,949,800
Cost of good sold (1,458,529) (724,404)
Gross profit 3,696,510 3,225,396
Expenses 8,755,122 6,924,367
Loss before other income (5,058,612) (3,698,971)
Other income (loss) (2,236,015) (2,005,643)
Deferred tax recovery 80,190
Net comprehensive loss for the year (7,294,627)  (5,624,424)
Basic and diluted loss per common share $ (0.12) $ (0.11)
Weighted average number of common shares outstanding 61,613,713 50,537,219

 (1) Income statement data for the year ended September 30, 2021, include the operations of TNET for the period from February 28, 2021 to September 30, 2021. 

(2)  Income statement data for the year ended September 30, 2022, include operations of TNET for October 1, 2021 to September 30, 2022.

Subsequent Events Following September 30, 2022:

Delay in Filings and MCTO:  In January 2023, the Company applied to the applicable Canadian securities regulators requesting that a voluntary management cease trade order (“MCTO”) be imposed to restrict trading in the Company’s securities by insiders of the Company, as opposed to a general cease trade order, which would restrict all trading in the Company’s securities.  On February 14, 2023, the Company provided an update that the Required Filings were in the process of being prepared but haven’t been completed as a result of the Company’s business combination which closed in June of 2022. The Company continues to work closely with its auditor and expects to be in a position to file the Required Filings no later than February 28, 2023.

Amendment to Loan Facility: In November 2022, The Company successfully completed its negotiations with FirePower Capital to amend its $1,850,000 loan agreement. Under the terms of the amended loan agreement, the maturity date has moved from July 30, 2024 to March 31, 2023. Financial performance covenants have been replaced with a minimum cash balance on hand of $350K. This amendment gives the Company the necessary time to arrange for alternative debt and/or equity financing to replace the FirePower loan.

Restructuring and Cost Cutting Initiatives: In October 2022, the Company announced it had completed a restructuring plan aimed to improve operational efficiencies while reducing administrative and overhead costs by over $1 million per year, shortening the projected time to profitability while preserving R&D, sales and marketing capacities.

Strategic M&A Committee: In October 2022, the Company formed an M&A committee of current board members, led by Ralph Garcea, to evaluate various strategic alternatives.

Additional Fourth Quarter Highlights (News Releases):

  • September 14, 2022: Turnium Technology Group Engages RAD-INFO for Sales to US-Based Service Providers
  • September 13, 2022: Turnium Technology Group Inc. Issues Shares in Settlement of Debt
  • August 29, 2022: Turnium Technology Group Inc. Reports Q3 2022 Results and Change in CEO
  • August 17, 2022: Turnium Technology Group Inc. Announces Issuance of Shares for Debt
  • July 26, 2022: Turnium Technology Group Inc. Grants Incentive Stock Options
  • July 21, 2022: Turnium Technology Group Inc. Licenses WedgeARP SASE
  • July 12, 2022: Turnium Announces John Wigboldus as New Chief Revenue Officer
  • July 5, 2022: Turnium Technology Group Inc. to be Featured on Radius Research’s Pitch, Deep Dive and Q&A Webinar

All news releases for 2022 and 2023 are available on the Company’s SEDAR profile at www.sedar.com.

About Turnium Technology Group Inc.

Turnium Technology Group Inc. delivers its SD-WAN solution as a white label, containerized, disaggregated software platform that OEM channel partners host, manage, brand, and price. Turnium is also available to Resellers as a Turnium-branded managed service. Turnium SD-WAN solutions is sold through a channel partner program designed for Communications Service Providers, Internet and Managed Service Providers, System Integrators, and Value-Added Resellers.

For more information, contact sales@ttgi.io, visit www.turnium.com, or follow us on Twitter @turnium.

About SD-WAN

SD-WAN is revolutionizing the networking and telecommunications industry by abstracting secure, high-speed networking and network control from underlying physical circuits. SD-WAN frees enterprises, small and medium businesses, cloud and managed services providers from the business and cost constraints imposed by traditional telecommunications companies.

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Turnium Contact:

Investor Relations: Bill Mitoulas, Email: investor.relations@ttgi.io, Telephone: +1 416-479-9547

Media inquiries: please email media@ttgi.io.

Sales inquiries: please email sales@ttgi.io

www.ttgi.io, www.turnium.com


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain acts, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Some of these risks are described under the “Caution on Forward-Looking Information” section and “Risk Factors” section of the MD&A.  Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.