Delota Reports Financial Results for the Three Months Ended June 30, 2025

Rhea-AI Summary

Delota Corp (CSE: NIC) has reported strong financial results for Q1 2026 (three months ended June 30, 2025). The company achieved total revenue of $10.0 million, with a 36% gross profit margin and positive Adjusted EBITDA of $351,800, marking its ninth consecutive quarter of positive EBITDA.

The company's revenue breakdown shows B2C vape sales of $7.7 million, B2B vape sales of $1.4 million, and B2C cannabis sales of $1.0 million. Delota successfully completed the early redemption of $900,000 in senior secured convertible debentures and maintains a customer base of over 300,000 registered accounts.

Notable developments include a new retail partnership with 180 Global for Eastern Canada operations, the expansion of retail footprint to 32 locations, and a change in fiscal year-end from January 31st to March 31st.

Positive

• Ninth consecutive quarter of positive Adjusted EBITDA at $351,800, up from $105,366 in Q1 2025
• Revenue growth to $10.04 million compared to $9.88 million in Q1 2025
• Net income of $209,654 compared to a loss of $508,188 in Q1 2025
• Early redemption of $900,000 in senior secured convertible debentures strengthening balance sheet
• Expansion of retail footprint to 32 locations
• Strong customer base of over 300,000 registered accounts

Negative

• Gross profit margin decreased to 36% from 40% in Q1 2025
• Working capital deficit of $572,931
• Total liabilities remain high at $12.78 million despite reduction from $13.92 million

Highlights:

• Total revenue of $10.0 million for Q1 2026

  • 36% gross profit margin for Q1 2026

  • Positive Adjusted EBITDA of $0.3 million for Q1 2026

• Segmented revenue for Q1 2026: 

  • Vape - B2C: $7.7 million, B2B: $1.4 million

  • Cannabis - B2C: $1.0 million

• Completed the early redemption of senior secured convertible debentures in the amount of $900,000 plus accrued interest

• Customer base of over 300,000 registered accounts across online and brick-and-mortar platforms

Vaughan, Ontario--(Newsfile Corp. - August 29, 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 "Q1 2026 Filings") for the three months ended June 30, 2025. The Q1 2026 Filings may be accessed under the Company's SEDAR+ profile at www.sedarplus.ca.

Cameron Wickham, CEO of Delota, commented, "We are pleased to report another outstanding quarter for Delota generating $10 million in revenue and Adjusted EBITDA of $351,000, marking our ninth consecutive quarter of positive Adjusted EBITDA and our second-highest contribution during this period. These positive results are driven by our focus on improving operational efficiencies throughout our omni-channel platform and strengthening our balance sheet with the early redemption of $900,000 of senior secured convertible debentures. With a clear focus on retail innovation and strategic growth, Delota is well-positioned to capitalize on new opportunities to accelerate growth and profitability in the quarters ahead to drive shareholder value."

Financial Highlights:

• Total revenue of $10,043,670 for the three months ended June 30, 2025 ("Q1 2026") as compared to $9,883,883 for the three months ended April 30, 2024 ("Q1 2025")

  • 36% gross profit margin for Q1 2026 as compared to 40% for Q1 2025

  • Positive Adjusted EBITDA of $351,800 for Q1 2026 as compared to $105,366 for Q1 2025

• Segmented revenue for Q1 2026:

  • Vape - B2C: $7.7 million, B2B: $1.4 million

  • Cannabis - B2C: $1.0 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 for the three months ended June 30, 2025 and the three months ended April 30, 2024 are derived from the Company's interim consolidated financial statements for the three months ended June 30, 2025 and the interim consolidated financial statements for the three months ended April 30, 2024.

		Three Months Ended June 30, 2025			Three MonthsEnded April 30, 2024
		$			$
Revenue		10,043,670			9,883,883
Net income (loss) for the period		209,654			(508,188)
Net earnings (loss) per share - basic and diluted		0.01			(0.02)
Working capital (deficit)		(572,931)			(604,863)
Total assets		14,313,979			14,018,560
Total non-current liabilities		5,024,210			6,899,362
Total liabilities		12,780,464			13,924,196
Share capital		7,832,560			7,807,481
Warrant reserve		99,398			99,398
Contributed surplus		507,513			510,159
Accumulated deficit		(6,905,956	)		(8,322,674	)
Shareholders' equity		1,533,515			94,364

 

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.

		Three Months Ended June 30, 2025			Three Months Ended April 30, 2024
		$			$
Net income (loss) for the period - as reported		209,654			(508,188)
Depreciation and amortization		128,365			132,610
Interest and accretion expenses		111,418			203,918
Stock-based compensation		-			3,154
Fair value adjustment of derivative liabilities		(43,508	)		293,831
Deferred tax recovery		(15,944	)		(15,944	)
Lease adjustments		(41,716	)		(13,341	)
Foreign exchange loss		3,531			9,326
Adjusted EBITDA		351,800			105,366

 

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 300,000 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/264525

FAQ

What were Delota's (CSE: NIC) key financial results for Q1 2026?

Delota reported revenue of $10.04 million, a 36% gross profit margin, and Adjusted EBITDA of $351,800. The company achieved a net income of $209,654 compared to a loss in the previous year.

How is Delota's revenue segmented across its business lines?

For Q1 2026, Delota's revenue was segmented as: B2C vape sales: $7.7 million, B2B vape sales: $1.4 million, and B2C cannabis sales: $1.0 million.

What strategic developments did Delota announce in Q1 2026?

Delota completed the early redemption of $900,000 in convertible debentures, entered a licensing agreement with 180 Global for Eastern Canada operations, and continued retail expansion reaching 32 locations.

How has Delota's profitability changed compared to Q1 2025?

Delota improved profitability with net income of $209,654 in Q1 2026 compared to a loss of $508,188 in Q1 2025. Adjusted EBITDA increased to $351,800 from $105,366.

What is the current state of Delota's balance sheet?

As of Q1 2026, Delota has total assets of $14.31 million, total liabilities of $12.78 million, and shareholders' equity of $1.53 million. The company has a working capital deficit of $572,931.