Argo Corporation Reports Q3 2024 Financial Results
TORONTO, Nov. 29, 2024 /CNW/ – Argo Corporation ARGH, ARGHF (“Argo” or the “Company“) has announced its financial outcomes for the quarter that ended on September 30, 2024 (“Q3 2024“). In this quarter, Argo successfully launched its smart transit system with its initial paying customers and made key advancements in restructuring its previous initiatives.
Key Developments from Argo
- Argo School: The Company rolled out its smart transit solution to various private schools in the Greater Toronto Area. This technology enhances transport operations for students, offering real-time tracking and improved safety for families and schools. Argo plans to expand this service to additional private and public schools in Canada and beyond.
- Argo City: Argo introduces a public transit solution that merges custom software with vehicle hardware. This innovative system will provide on-demand, door-to-door transport options, aimed at reducing private car use and boosting public transit riders through partnerships with local governments and transit agencies. An announcement regarding its first city partnerships is expected soon.
- R&D Investment: In Q3 2024, Argo’s research and development spending surged by 401% compared to the previous year. This investment underscores the Company’s dedication to advancing its integrated city transit system, enhancing software and hardware features for seamless deployments.
Restructuring Efforts
- Vehicle Subscription: Argo reassessed $8.5M in liabilities as held for sale due to the bankruptcy filings of its subsidiaries in Canada and California. These liabilities are expected to be resolved in the upcoming quarters as the legal processes conclude, in line with the restructuring plans outlined in its May 23, 2024 announcement.
- Disputed Office Lease: The Company has initiated a claim regarding an office lease dispute, which amounts to $3.6M in liabilities.
- Sale of Financial Assets: Argo is actively selling off its intellectual property and financial assets from a previous venture. In Q3 2024, it completed the sale of 14,200 shares of preferred stock in Westbrook Global Inc., generating $750K in cash.
Updates on FoodsUp
Argo holds a 59.95% non-controlling stake in FoodsUp Inc. (“FoodsUp“), a major player in the restaurant supply sector in Canada. In Q3 2024, FoodsUp generated revenues of $28.7M, marking a 10% increase from Q2 2024 and a remarkable 61% rise compared to Q3 2023.
The Company is also considering a transaction structure that would allow Argo shareholders to receive net proceeds from any potential sale of its FoodsUp interest, marking a significant move towards separating the two businesses.
Financial Results Overview: Q3 2024 vs. Q3 2023
|
For the three months ending September 30 |
Company Financials Released for 2023: A Closer Look at Revenue and Expenses
An analysis of financial performance for the company reveals key insights into its revenue and expenditure for 2023.
| Year | 2023 | 2022 |
|---|---|---|
| Revenue | $449,567 | $101,851 |
| Cost of Revenue | $29,519 | $59,676 |
| General and Administration | $1,019,001 | $377,350 |
| Operational Support | $520,911 | $274,024 |
| Research and Development | $614,149 | $122,573 |
| Sales and Marketing | $73,054 | N/A |
Comparing the revenue of $449,567 for 2023 with last year’s $101,851 indicates significant growth. Understanding the cost structures, such as costs for revenue and administrative expenses, provides a clearer picture of the company’s financial health.
Historically, businesses have faced ups and downs, and analyzing these periods is crucial for forecasting future trends. The sharp increase in expenses for General and Administration shows the company’s investment in infrastructure and resources, likely aimed at supporting this growth.
Investors and stakeholders will undoubtedly keep a close eye on these results, as they play a central role in decision-making for the upcoming fiscal year.
Financial Report Reveals Significant Operating Losses
Key Numbers from the Latest Financial Statements
| Amortization |
73,068 |
37,108 |
196,865 |
||||||
| Depreciation |
10,941 |
84,831 |
|||||||
| Total operating expenses |
2,304,683 |
1,188,387 |
|||||||
| OPERATING LOSS |
($1,855,166) |
($1,086,536) |
|||||||
| OTHER INCOME (EXPENSES) | |||||||||
| Foreign exchange gain/ (loss) | |||||||||
As we delve into the latest financial results, the organization has reported a significant operating loss, reflecting challenging economic conditions. The figures indicate that total operating expenses reached an alarming $2,304,683, a testament to the firm’s struggles with cost management.
Historically, companies in similar markets have faced comparable financial hurdles, often necessitating strategic adjustments to navigate downturns. The operating loss of ($1,855,166) raises concerns about future profitability and growth.
Investors and stakeholders will be closely monitoring how management approaches these financial challenges in the coming quarters.
Financial Report Reveals Mixed Performance for Company
Key Financial Measures
|
Total expenses |
(28,460) |
(93,854) |
|
Interest expenses |
(532,931) |
(61,018) |
|
Interest income |
1,023 |
272 |
|
Gain/ (Loss) on accounts payable settlements |
301,483 |
– |
|
Gain/ (Loss) on termination |
279,606 |
– |
|
Write down of intangible asset |
(211,182) |
– |
|
Other income/(loss) from discontinued operations |
– |
– |
Understanding the Numbers
The recent financial report highlights various aspects of the company’s spending and income. For instance, interest expenses totaled an eye-catching (532,931), a significant figure that points to the financial strain faced by the company.
Despite the heavy costs, the report also shows some positive movements, such as a gain of 301,483 from accounts payable settlements, reflecting potential improvements in cash flow management. The backdrop of these numbers reveals a complex financial situation, as the company navigates both challenges and opportunities in a volatile market.
By analyzing these figures, stakeholders gain a clearer picture of the company’s financial health and future outlook.
Financial Results Illuminate Significant Losses for the Company
Understanding the Numbers: An Overview of Recent Financial Data
| Financial Item | Current Period | Previous Period | ||||
| Net income/(loss) from continuing operations | (12,992,860) | (4,216,563) | ||||
| Discontinued operations | 12,296,195 | (1,037,987) | ||||
| Net gain (loss) | (696,665) | (5,254,550) | ||||
| Cumulative translation adjustment | 10,285,769 | (115,015) |
In summary, the company has experienced notable losses in its recent financial performance. A deeper analysis shows a significant net loss of $12,992,860 from continuing operations compared to $4,216,563 in the prior period. Discontinued operations did provide a gain, amounting to $12,296,195, yet the overall net loss tallies to $(696,665), indicating continuing challenges. The cumulative translation adjustment shows a bright spot with a positive adjustment of $10,285,769, contrasting with a previous loss of $115,015.
This financial overview underscores the company’s struggles amidst fluctuating operations and varying external pressures. Understanding these figures is crucial for stakeholders as they navigate future strategies and decisions.
Argo Corporation Reports Significant Loss in Recent Financial Results
Argo Corporation has shared its latest financial performance, revealing substantial losses affecting both profits and earnings per share.
|
Net Profit (Loss) and Comprehensive Profit (Loss) |
($871,183) |
($5,508,429) |
||||
|
(Loss) Profit Per Share – Basic and Diluted |
($0.01) |
($0.04) |
||||
|
Weighted Average Shares Outstanding – Basic and Diluted |
133,367,099 |
132,944,615 |
|
1 All figures are accurate to the hundreds. |
In this press release, all references to ‘$’ are in Canadian dollars.
The TSX Venture Exchange and its Regulation Services Provider do not accept responsibility for the accuracy of this release.
About Argo
Argo provides the first integrated city transit system that combines vertical and public aspects. This innovative system is aimed at enhancing public transportation and connecting various intelligently routed vehicles to meet city-wide mobility needs. For more details, visit www.rideargo.com.
Praveen Arichandran, Co-CEO
Argo Corporation
(800) 575-7051
Forward-Looking Information
This news release includes forward-looking statements regarding management’s goals, strategies, and intentions. These statements often include words like “may,” “will,” “expect,” and similar terms related to future results. Such forward-looking information is uncertain and influenced by numerous risks and assumptions, which are detailed in the Company’s filings available at www.sedarplus.ca. Actual outcomes can vary significantly from these predictions, and we advise caution in relying on them. Our obligation to update these statements is limited to legal requirements.
SOURCE: ARGO CORPORATION
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