Wi2Wi Corporation Announces First Quarter 2025 Financial Results (Unaudited)
- Revenue increased 3% year-over-year to $1.55 million
- Gross profit margin improved to 11% from 10% year-over-year
- Strategic focus on core frequency control business could improve operational efficiency
- Secured $955,000 CAD through two private placements
- Received $500,000 follow-on order after resolving quality issue
- Net loss widened to $417,000 from $362,000 year-over-year
- Cash position decreased to $422,000 from $636,000 year-over-year
- Negative operational cash flow of $542,000, significantly worse than -$145,000 in Q1 2024
- Quality issues with major customer shipments
- Dilutive effect from recent private placements
TORONTO, ON / ACCESS Newswire / May 16, 2025 / Wi2Wi Corporation (TSX-V:YTY)(OTC PINK:ISEYF) a leader in precision timing devices, frequency control products, and wireless technologies, today announced its financial results for the first quarter ended March 31, 2025.
First Quarter Financial Highlights (Reported in $USD)
Revenue of
$1.55 million , representing a3% increase compared to$1.50 million in the same period of Fiscal 2024.Gross profit of
$172,000 (11% margin), up from$151,000 (10% margin) in the same period of Fiscal 2024.Net loss of
$417,000 , compared to a net loss of$362,000 in the same period of Fiscal 2024.Cash on hand as of March 31, 2025:
$422,000 Net cash used in operations of:
$542,000 Working capital of:
$3.13 million
CEO Commentary
Ted Clark, CEO stated, "Revenue and gross margin show modest improvements as we continue to work toward a full resolution of the inventory issue that carried into this period. Our focus remains on operational execution, product quality, and supporting key customers in our core frequency control business. We are continuing to align our resources with our Precision Devices frequency control business, which we believe will position us to continue to capture long-term opportunities in aerospace, industrial, and defense markets."
First Quarter Operational Highlights
During the period, the Company completed a strategic reallocation of resources, eliminating further investment and commercial activity in its wireless connectivity division to fully concentrate on its core frequency control business under the Precision Devices ("PDI") brand.
During the period, the Company identified a quality issue in a recent shipment related to a specific component ordered by a major customer. The issue was promptly investigated and traced to a single account, with corrective action taken immediately. Following resolution, the customer placed a follow-on order valued at approximately
$500,000 for the same component. This development reflects the Company's strong customer relationships and its responsiveness in addressing quality. concerns.On February 13, 2025, the Company announced closing of a non-brokered private placement by issuing a total of 7,300,000 units at a price of
$0.05 CDN per Unit, for total gross proceeds$365,000 CDN. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional share of the Company at an exercise price of$0.10 CDN for a period of two years from closing of the Offering, February 13, 2027, subject to an acceleration clause.
On March 5, the Company announced closing of a non-brokered private placement by issuing a total of 11,799,700 units at a price of
$0.05 CDN per Unit, for total gross proceeds$589,985 CDN. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional share of the Company at an exercise price of$0.10 CDN for a period of two years from closing of the Offering, March 5, 2027, subject to an acceleration clause.
First Quarter 2025 Financial Overview (unaudited)
(In thousands of U.S. dollars) | Quarter 1, 2025 | Quarter 1, 2024 | ||||||
Revenue | $ | 1,553 | $ | 1,508 | ||||
Net income | (417 | ) | (362 | ) | ||||
Net cash provided by (used in) operations | (542 | ) | (145 | ) | ||||
Total assets | 9,731 | 7,031 | ||||||
Cash on hand | 422 | 636 | ||||||
Total current liabilities | 1,662 | 1,399 | ||||||
Shareholders' equity | 3,320 | 3,615 | ||||||
Detailed and historical financial information is available here.
About Wi2Wi Corporation
Wi2Wi is a specialized electronic component supplier with expertise in all aspects of frequency control devices as well as in wireless technologies. Wi2Wi's Precision Devices brand of products has earned a premier spot in numerous key markets including avionics, aerospace, industrial equipment, government, and the US military. Wi2Wi's frequency control products are best-in-class and of the highest quality.
Founded in 2005, Wi2Wi's headquarters, design center and state-of-the-art manufacturing facility are located in the heart of America's industrial belt in Middleton, WI. Wi2Wi can deliver specific solutions using its in-house design and manufacturing expertise, as well as leveraging many tier-1 global partnerships with numerous industry leading silicon and wireless technology suppliers.
Wi2Wi has partnered with best-in-class sales leaders. The company uses a global network of manufacturer's representatives to promote its products and services, and has partnered with world class distributors for the fulfillment of orders all of which augment a US-based direct sales team.
Wi2Wi is extremely proud to serve hundreds of the world's top companies with its made-in-America products.
Investor & Media Contact
Ted Clark, Chief Executive Officer
+1-469-545-3423
ted_c@wi2wi.com
Forward-Looking Statements: This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with the ability to access sufficient capital, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, stock market volatility. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward- looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Wi2Wi Corp.
View the original press release on ACCESS Newswire
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