Delota Reports Financial Results for the Three and Six Months Ended September 30, 2025

Rhea-AI Summary

Delota (SYDRF) reported interim results for the three and six months ended September 30, 2025, filed December 2, 2025. Total revenue was $8.67M for the three months and $18.72M for six months, with System-Wide Revenue of $10.42M (3 months) and $20.97M (6 months). Gross margin was 31% for the three-month period and 34% for six months. Adjusted EBITDA was a loss of $357,801 (three months) and $6,001 (six months). Other notable items: customer base > 325,000 accounts, early redemption of convertible debentures of $900,000, change of auditor to Horizon Assurance LLP, and 32 retail locations as of February 2025.

Positive

• System-Wide Revenue stable at $20.97M for six months
• Customer base exceeds 325,000 registered accounts
• Early redemption of convertible debentures of $900,000
• Shareholders' equity improved to $1.101M at Sept 30, 2025

Negative

• Three-month revenue declined 11.1% to $8.67M vs prior year
• Gross profit margin down ~700 bps YoY for six months (41% to 34%)
• Adjusted EBITDA swung from $420,940 to loss of $6,001 for six months
• Working capital deficit increased to $985,095 at Sept 30, 2025

Key Figures

Quarterly revenue $8,672,936 Three months ended September 30, 2025 vs $9,757,783 prior period

Quarterly System-Wide Revenue $10,419,383 Three months ended 2026 vs $10,436,279 prior period

Quarterly gross margin 31% Three months ended 2026 vs 42% prior period

Quarterly Adjusted EBITDA -$357,801 Three months ended 2026 vs $302,233 prior period

Six-month revenue $18,716,606 Six months ended September 30, 2025 vs $19,641,666 prior period

Six-month System-Wide Revenue $20,969,323 Six months ended 2026 vs $20,944,034 prior period

Six-month gross margin 34% Six months ended 2026 vs 41% prior period

Net income (loss) -$222,670 Six months ended September 30, 2025 vs -$167,016 prior period

Market Reality Check

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Volume Volume 1,000 is at 0.03x the 20-day average of 30,213, indicating light trading relative to recent norms. low

Technical Shares traded below the $0.11 200-day moving average with a pre-news price of $0.10, despite a 25% daily gain.

Peers on Argus

SYDRF gained 25% while key peers showed flat moves, and BLMH declined 9.21%, indicating stock-specific action rather than a broad sector move.

Market Pulse Summary

This announcement highlighted Delota’s revenue base and the impact of recent restructuring. Reported revenue reached $8.67M for the quarter and $18.72M over six months, while System-Wide Revenue totaled $20.97M. However, gross margins compressed to 31–34%, and Adjusted EBITDA turned slightly negative at -$6,001 over six months. Investors may watch how margin recovery, Adjusted EBITDA trends, and segment performance in vape B2C/B2B and cannabis B2C evolve in subsequent filings.

Key Terms

system-wide revenue financial

"The Company's "System-Wide Revenue" is a non-IFRS financial measure..."

Total sales generated across an entire business network or platform, including sales by independently owned outlets, partners, or franchisees as well as company-owned locations and channels. It matters to investors because it shows the true scale and customer demand for a brand or platform — like measuring the output of an entire fleet rather than just the company’s own vehicles — but it can overstate the cash flow that actually reaches the company’s books.

non-ifrs financial measure financial

"is a non-IFRS financial measure that does not have a standardized meaning..."

A non-IFRS financial measure is a performance number a company reports that is not defined by official accounting rules and usually adjusts standard results to show what management believes is the company’s underlying performance. Think of it like a photo with a custom filter: it can make important features clearer but may also hide blemishes, so investors use it to understand management’s view while checking how the adjustments were made and reconciled to the official numbers.

ifrs financial

"does not have a standardized meaning under IFRS and may not be comparable..."

International Financial Reporting Standards (IFRS) are a set of common accounting rules used by many companies worldwide to prepare financial statements, so numbers like revenue, profit and assets are measured in the same way across borders. For investors, IFRS matters because it makes it easier to compare the financial health and performance of different companies—like using the same ruler to measure different objects—reducing surprises and helping informed investment decisions.

adjusted ebitda financial

"The Company's "Adjusted EBITDA" is a non-IFRS metric used by management..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

interim consolidated financial statements financial

"it has filed its interim consolidated financial statements, management discussion..."

Interim consolidated financial statements are financial reports prepared for a partial reporting period (such as a quarter) that combine the results of a parent company and all its subsidiaries into a single picture. They matter to investors because they provide a timely snapshot of group performance between annual reports—like checking a car’s dashboard mid-journey—to spot trends, cash flow issues, or changes in profitability before the year-end statements arrive.

royalty fees financial

"the Company earns income through royalty fees, service fees, and related wholesale..."

Royalty fees are recurring payments made by one party to another for the ongoing right to use an asset such as a patent, trademark, mineral rights, or copyrighted work. For investors, royalties indicate predictable income streams for the owner or recurring costs for the user, affecting profitability, cash flow and valuation much like rent payments do for property — steady and contract-driven rather than one-time sales revenue.

ifrs 15 regulatory

"which reflects only the fees recognized by the Company under IFRS 15."

IFRS 15 is an international accounting rule that tells companies when and how to record revenue from contracts with customers, covering sales, services, subscriptions and multi-part deals. It matters to investors because it determines the timing and amount of revenue shown in financial reports, affecting profit figures, comparisons between companies, and valuation models — think of it like rules for deciding when to count partial payments for a long project as income.

lease liabilities financial

"revaluations of its right-of-use assets and lease liabilities and foreign exchange..."

Lease liabilities are the recorded obligations a company has to make future payments for assets it uses under lease contracts, treated on the balance sheet much like a loan for rented equipment or property. Investors care because these liabilities increase a firm’s reported debt and affect measures of leverage, cash requirements and credit risk, so recognizing them gives a clearer picture of financial strength and the company’s ability to meet obligations.

AI-generated analysis. Not financial advice.

Highlights:

• Total revenue of $8.7 million for the Three Months Ended 2026

  • Total System-Wide Revenue of $10.4 million for the Three Months Ended 2026

  • 31% gross profit margin for the Three Months Ended 2026

• Total revenue of $18.7 million for the Six Months Ended 2026

  • Total System-Wide Revenue of $21.0 million for the Six Months Ended 2026

  • 34% gross profit margin for the Six Months Ended 2026

• Segmented revenue for the Six Months Ended 2026:

  • Vape - B2C: $12.2 million, B2B: $4.5 million

  • Cannabis - B2C: $2.0 million

• Customer base of over 325,000 registered accounts across online and brick-and-mortar platforms

Vaughan, Ontario--(Newsfile Corp. - December 2, 2025) - Delota Corp. (CSE: NIC) (FSE: S62) ("Delota" or the "Company"), a leading Canadian omni-channel retailer of nicotine vape and alternative tobacco products, is pleased to report it has filed its interim consolidated financial statements, management discussion and analysis, and associated certifications (collectively, the "Q2 2026 Filings") for the three and six months ended September 30, 2025. The Q2 2026 Filings may be accessed under the Company's SEDAR+ profile at www.sedarplus.ca.

Cameron Wickham, CEO of Delota, commented, "As anticipated, our second quarter results reflect the short-term impact of the operational restructuring initiatives we have implemented during the last six months, resulting in an Adjusted EBITDA loss and lower consolidated revenues in comparison to prior periods. Importantly, we have now included System-Wide Revenue figures which provide additional insight into total sales activity across the Company's retail network, including sales generated through franchise and licensing agreements where the Company recognizes royalty or fee income rather than gross revenue. Our System-Wide Revenue figures have remained stable, demonstrating the underlying resilience of our brand and omni-channel platform. Our restructuring efforts have created a more agile operational structure poised for scalable growth. Moving forward, we are strategically focused on organic customer acquisition strategies to complement our historically successful customer retention strategies to drive meaningful incremental revenue growth and profitability. With our strengthened balance sheet, stable recurring revenue and a clear focus on disciplined growth and operational efficiency, the Company is well-positioned to create long-term value for shareholders."

Financial Highlights:

• Total revenue of $8,672,936 for the three months ended September 30, 2025 ("Three Months Ended 2026") as compared to $9,757,783 for the three months ended July 31, 2024 ("Three Months Ended 2025")

  • Total System-Wide Revenue of $10,419,383 for the Three Months Ended 2026 as compared to $10,436,279 for the Three Months Ended 2025

  • 31% gross profit margin for the Three Months Ended 2026 as compared to 42% for the Three Months Ended 2025

  • Adjusted EBITDA of negative $357,801 for the Three Months Ended 2026 as compared to positive $302,233 for the Three Months Ended 2025

• Total revenue of $18,716,606 for the six months ended September 30, 2025 ("Six Months Ended 2026") as compared to $19,641,666 for the six months ended July 31, 2025 ("Six Months Ended 2025")

  • Total System-Wide Revenue of $20,969,323 for the Six Months Ended 2026 as compared to $20,944,034 for the Six Months Ended 2025

  • 34% gross profit margin for the Six Months Ended 2026 as compared to 41% for the Six Months Ended 2025

  • Adjusted EBITDA of negative $6,001 for the Six Months Ended 2026 as compared to positive $420,940 for the Six Months Ended 2025

• Segmented revenue for the Six Months Ended 2026:

  • Vape - B2C: $12.2 million, B2B: $4.5 million

  • Cannabis - B2C: $2.0 million

Other Highlights:

• On July 15, 2025, the Company changed its auditor to Horizon Assurance LLP.

• On July 7, 2025, the Company announced it had entered into agreements with 180 Global relating to the licensing of the 180 Smoke Vape Store brand for retail online sales in Eastern Canada. 180 Global assumed operational functions in Eastern Canada as a result of the retail partnership in exchange for certain service fees and a royalty fee payable to the Company.

• On April 22, 2025, the Company completed the early redemption of senior secured convertible debentures in the amount of $900,000 plus accrued interest and the security interests and obligations of the Company and its guarantors have been discharged and all pledged securities have been returned to the Company.

• On February 3, 2025, the Company opened a 180 Smoke Vape Store located at 1530 Albion Road, Unit 51A, Albion Mall, Etobicoke, expanding its retail footprint to 32 locations.

• On January 22, 2025, the Company announced a change to its fiscal year end from January 31^st to March 31^st.

• On August 26, 2024, the Company opened a 180 Smoke Vape Store located at 499 Main Street South, Unit 60D, Shoppers World, Brampton.

• On July 25, 2024, the Company opened a 180 Smoke Vape Store located at 70 Joseph Street, Parry Sound.

Select Financial Information

The following selected financial information as at and for the six months ended September 30, 2025 and six months ended July 31, 2024 are derived from the Company's interim consolidated financial statements.

		Six Months Ended September 30, 2025			Six Months Ended July 31, 2024
		$			$
Revenue		18,716,606			19,641,666
Net income (loss) for the period		(222,670	)		(167,016	)
Net earnings (loss) per share - basic and diluted		(0.01	)		(0.01	)
Working capital (deficit)		(985,095	)		(854,417	)
Total assets		13,445,595			14,423,833
Total non-current liabilities		4,638,708			6,106,756
Total liabilities		12,344,404			13,969,884
Share capital		7,832,560			7,832,560
Warrant reserve		99,398			99,398
Contributed surplus		507,513			503,493
Accumulated deficit		(7,338,280	)		(7,981,502	)
Shareholders' equity		1,101,191			453,949

 

System-Wide Revenue

The Company's "System-Wide Revenue" is a non-IFRS financial measure that does not have a standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. This measure is presented to provide readers with additional insight into total sales activity across the Company's network, including sales generated through franchise and licensing arrangements where the Company recognizes royalty or fee income rather than gross revenue. System-Wide Revenue should not be considered in isolation or as a substitute for revenue prepared in accordance with IFRS.

The following table presents System-Wide Revenue for the six months ended September 30, 2025 and July 31, 2024. Following the Company's change in fiscal year-end, comparative periods are not directly aligned.

		Six Months Ended September 30, 2025			Six Months Ended July 31, 2024
		$			$
180 Smoke – Vape B2C		12,241,581			15,472,965
180 Smoke – Vape B2B		6,777,658			3,727,705
Offside Cannabis – Cannabis B2C		1,950,084			1,743,364
Total System-Wide Revenue		20,969,323			20,944,034

 

System-Wide Revenue includes gross sales generated by franchisees and third-party operators under licensing arrangements with the Company. Under these arrangements, the Company earns income through royalty fees, service fees, and related wholesale revenue rather than recording gross sales as revenue. As a result, System-Wide Revenue will not agree to IFRS revenue recognition, which reflects only the fees recognized by the Company under IFRS 15.

Adjusted EBITDA

The Company's "Adjusted EBITDA" is a non-IFRS metric used by management that does not have any standardized meaning prescribed by IFRS and may not be fully comparable to similar measures presented by other companies. Management defines Adjusted EBITDA as the net income (loss) reported, before income taxes and other expense (income) items such as finance costs, finance income, gains and losses related to derivative liability valuations, and adjusted for share-based compensation, depreciation and amortization expenses, gains and losses related to the revaluations of its right-of-use assets and lease liabilities and foreign exchange differences.

The reconciliation of net income (loss) to Adjusted EBITDA is presented below.

		Six Months Ended September 30, 2025			Six Months Ended July 31, 2024
		$			$
Net income (loss) for the period – as reported		(222,670	)		(167,016	)
Depreciation and amortization		253,245			263,892
Interest and accretion expenses		134,591			407,845
Stock-based compensation		-			7,817
Fair value adjustment of derivative liabilities		(68,977	)		(47,139	)
Deferred tax recovery		(31,888	)		(31,888	)
Lease adjustments		(75,776	)		(28,800	)
Foreign exchange loss		5,474			16,229
Adjusted EBITDA		(6,001	)		420,940

 

About Delota Corp.

Delota is the largest omni-channel specialty vape retailer in Ontario with a mission of becoming one of the largest national specialty retailers of nicotine vape and alternative tobacco products. The Company's growth strategy includes aggressively growing its flagship brand, 180 Smoke Vape Store, by expanding its retail footprint organically in Ontario and select provinces across Canada, strengthening its national e-commerce platform, and through strategic M&A to accelerate growth and market consolidation. The Company is committed to expanding its nicotine product assortment, enhancing customer experience, and growing its registered customer base, which now exceeds 325,000 accounts.

Investors interested in learning more about Delota can visit www.delota.com.

For further information, please contact:

Delota Corp.

Cameron Wickham
Executive Vice Chair and CEO
T: (905) 330-1602
E: info@delota.com

Cautionary Statements

This press release contains "forward-looking statements or information". Forward-looking statements can be identified by words such as: anticipate, intend, plan, goal, seek, believe, project, estimate, expect, strategy, future, likely, may, should, will and similar references to future periods. Examples of forward-looking statements in this press release include statements made regarding information about future plans, expectations and objectives of the Company overall.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The Company may not actually achieve its plans, projections, or expectations. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the adequacy of our cash flow and earnings, the availability of future financing and/or credit, developments and changes in laws and regulations, consumer sentiment towards the Company's products, failure of counterparties to perform their contractual obligations, government regulations, competition, loss of key employees and consultants, and general economic, market or business conditions, the impact of technology and social changes on the products and industry, as well as those risk factors discussed or referred to in disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276585

FAQ

What were Delota's (SYDRF) total revenues for the three and six months ended Sept 30, 2025?

Total revenue was $8.67M for the three months and $18.72M for the six months ended Sept 30, 2025.

How did Delota's gross margin change for the six months ended Sept 30, 2025 compared to prior period?

Gross margin declined to 34% for the six months ended Sept 30, 2025 from 41% in the prior period.

What is Delota's System-Wide Revenue for the six months ended Sept 30, 2025 and why it matters?

System-Wide Revenue was $20.97M for the six months; it includes franchise and licensed store sales and shows total network sales activity.

What happened to Delota's Adjusted EBITDA for the six months ended Sept 30, 2025 (SYDRF)?

Adjusted EBITDA was a loss of $6,001 for the six months ended Sept 30, 2025 versus a positive $420,940 in the prior comparable period.

Did Delota (SYDRF) take any notable balance sheet actions in 2025?

Yes; the company completed an early redemption of senior secured convertible debentures totaling $900,000 and changed auditors to Horizon Assurance LLP.

How many retail locations and registered customers did Delota report as of these filings?

Delota reported 32 retail locations (expanded to Feb 2025) and a customer base of over 325,000 registered accounts.