SOURCE: Axios Mobile Assets Corp.

Axios Mobile Assets Corp.

November 11, 2015 16:23 ET

Axios Reports Financial Results for Third Quarter of 2015

MISSISSAUGA, ON--(Marketwired - Nov 11, 2015) - Axios Mobile Assets Corp. (CSE: AXA) (OTCQB: AXBSD) ("Axios" or the "Company") today announced its financial results for the third quarter ended September 30, 2015.

Financial and Market Highlights

  • Revenue grew 110% quarter on quarter to $737,366
  • Added listing in the United States on the OTCQB under the symbol AXBSD
  • Closed $2,001,750 bridge loan
  • Completed 10 for 1 share consolidation

Operating Highlights

  • Enhanced biosecurity standards by adding automated cleaning line at pallet sanitization center
  • Signed three new contracts, bringing to six the number of egg vendor contracts signed since April 2014
  • Trained customer staff and began onboarding pallets to two new egg farms
  • Expanded footprint into Northeast and Southeast United States
  • Now servicing 23 distribution centers of major US retailer

"Axios had a strong quarter, with revenue more than doubling compared to the three months previous," said Richard MacDonald, President and CEO of Axios Mobile Assets. "Although our net loss expanded, this reflected higher production to meet demand from both existing and new customers for our RFID equipped pallets and logistics services. Our pallet contracts continue to generate recurring revenue in US dollars, so each month draws us closer to the point at which revenue will begin to outstrip investment in production. With the first newly automated sanitization center giving us class-leading biosecurity standards, we are confident that perishable food producers will continue switching to our cost-effective, clean and environmentally friendly solution. We are now beginning to hit our stride in reducing the backlog of pallets needed for our nationwide roll-out of the Axios Solution."

Financial Results

  • Third quarter revenue was $737,366, up 615% over the $103,127 realized in the same period a year ago, and 110% above the $350,892 in the second quarter;
  • Year-to-date revenue totaled $1,097,172, an increase of 661% compared to $144,166 in the same period a year earlier;
  • Gross margin was 32.4%;
  • The net loss totaled $2,759,388, as Axios expanded production capacity and manufactured new pallets to drive recurring revenue growth; the company also incurred a one-time debt settlement expense.

A complete set of financial statements and Management's Discussion and Analysis for the quarter ended September 30, 2015 is available at

About Axios Mobile Assets

Axios Mobile Assets Corp. is a supply chain logistics company. Axios is becoming a key supplier of pooled pallets primarily in the perishable food category. The Axios Solution includes proprietary tracking and information systems that deliver actionable data that helps improve supply chain visibility and food safety. The Axios Solution is gaining market acceptance based on its unique attributes: lower total cost, lighter weight, sanitary pallets, and real time data. Axios was incorporated under the Business Corporations Act (Ontario) and is a reporting issuer in the Province of Ontario. Axios is traded on the Canadian Securities Exchange (CSE) under the symbol AXA, and on the OTCQB Venture Marketplace under the symbol AXBSD.

Further information concerning the Company can be found at, and

Forward Looking Information

This press release contains information that is forward looking information with respect to Axios Mobile Assets Corp. within the meaning of Section 138.4(9) of the Ontario Securities Act (forward looking statements) and other applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts. In particular, statements or assumptions about, economic conditions, benefits of new customer and partner relationships, future opportunities for the company and products and any other statements regarding Axios' objectives (and strategies to achieve such objectives), future expectations, beliefs, goals or prospects are or involve forward-looking information.

Forward-looking information is based on certain factors and assumptions. While the company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature necessarily involves known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those in the forward-looking statements or could cause our current objectives and strategies to change, including but not limited to changing conditions and other risks associated with the retail, supply chain and logistics industries and the market segments in which Axios operates, the ability to effectively develop distribution channels and generate increased demand for products, economic conditions, technological change, unanticipated changes in our costs, regulatory changes, litigation, and other factors, many of which are beyond our control and current expectation or knowledge.

Additional risks and uncertainties affecting Axios can be found in Management's Discussion and Analysis of Results of Operations and Financial Condition and its Annual Information Form for the fiscal years ended December 31, 2013 and 2014 filed on SEDAR at If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein and our current objectives or strategies may change. Axios assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

Consolidated Statements of Income and
Comprehensive Income
(In Canadian dollars)
    Three months ended September 30,     For the nine months ended September 30,  
    2015     2014     2015     2014  
Revenue   $ 737,366     $ 103,127     $ 1,097,172     $ 144,166  
Cost of services     498,518       78,407       766,475       284,407  
Gross margin     238,848       24,720       330,697       (140,241 )
Administrative and other     1,180,257       284,455       3,221,455       1,244,632  
Stock-based compensation     736,523       10,057       1,033,032       53,297  
Depreciation and amortization     403,035       235,083       1,012,984       658,773  
Total expenses     2,319,815       529,595       5,267,471       1,956,702  
Operating loss for the period     (2,080,967 )     (504,875 )     (4,936,774 )     (2,096,943 )
Interest and bank charges     (98,675 )     (83,534 )     (493,857 )     (93,569 )
Accretion expense     (58,851 )     (67,577 )     (116,177 )     (67,577 )
Debt settlement expense     (520,896 )     -       (520,896 )     -  
Other income     -       552,411       -       552,411  
Net loss for the period     (2,759,388 )     (103,575 )     (6,067,704 )     (1,705,678 )
Other Comprehensive Income                                
Unrealized gain on translation to Canadian dollar presentation currency     295,661       -       569,191       -  
Total comprehensive loss for the period   $ (2,463,727 )   $ (103,575 )   $ (5,498,513 )   $ (1,705,678 )
Net loss per share, basic and diluted   $ (0.01 )   $ (0.00 )   $ (0.02 )   $ (0.02 )
Weighted average number of shares outstanding - basic and diluted     234,030,601       112,911,031       197,813,300       111,498,994  
Consolidated Balance Sheets  
  September 30,   December 31,  
  2015   2014  
  Cash $ 793,885   $ 1,428,848  
  Amounts receivable and prepaids   518,993     8,894  
  Government receivables   392,141     71,068  
  Inventory   228,424     90,951  
Total current assets   1,933,443     1,599,761  
  Property and equipment   6,549,284     2,056,422  
  Intangible assets   3,229,786     3,507,749  
  Intangible asset - goodwill   613,711     -  
Total non-current assets   10,392,781     5,564,171  
Total assets $ 12,326,224   $ 7,163,932  
  Bridge loan $ 1,951,972   $ -  
  Accounts payable and accrued liabilities   1,519,409     2,375,852  
  Shareholder loan payable   -     693,182  
Total current liabilities   3,471,381     3,069,034  
  Convertible debentures   2,688,862     2,737,472  
Total liabilities   6,160,243     5,806,506  
Capital stock   20,138,762     14,038,404  
Contributed surplus   5,781,238     1,574,528  
Accumulated other comprehensive income   631,844     62,653  
Deficit   (20,385,863 )   (14,318,159 )
Total equity   6,165,981     1,357,426  
  $ 12,326,224   $ 7,163,932  
Statements of Cash Flows  
    For the nine months ended September 30,  
    2015     2014  
Net loss for the period   $ (6,067,704 )   $ (1,705,678 )
Adjustments for non-cash items:                
  Depreciation and amortization     1,012,984       658,773  
  Convertible debt accretion     116,177       67,577  
  Share-based compensation     1,033,032       53,297  
  Debt settlement expense settled with equity units     520,896       -  
  Common shares issued to settle management fees     -       200,000  
  Gain on sale of fixed asset     -       (51,538 )
Net change in non-cash working capital                
  Amounts receivable and prepaids     (370,934 )     (24,147 )
  Government receivables     (321,073 )     -  
  Inventory     (137,473 )     -  
  Accounts payable and accrued liabilities     179,257       228,233  
  Deferred revenue     -       449,500  
  Deposits     -       (456,580 )
Cash used in operating activities     (4,034,838 )     (580,563 )
  Proceeds on issuance of shares     5,400,000       -  
  Share issue expenses     (529,391 )     -  
  Proceeds from issuance of convertible debt     1,375,000       524,999  
  Debenture issue expenses     (163,259 )     -  
  Proceeds from the bridge loan     2,001,750       -  
  Bridge loan issue expenses     (32,268 )     -  
Cash provided by financing activities     8,051,832       524,999  
  Additions to fixed assets     (4,582,889 )     -  
Cash used in investing activities     (4,582,889 )     -  
Net increase (decrease) in cash during the period     (565,895 )     (55,564 )
Cash, beginning of period     1,428,848       105,097  
Effect of foreign exchange on cash     (77,606 )     -  
Cash acquired on Mobius Logistics Solutions, Inc. acquisition     8,538       -  
Cash, end of period   $ 793,885     $ 49,533  

The Company's shares also trade on the Canadian Securities Exchange under the symbol AXA. Quotes are available at

The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

    Richard MacDonald
    President & CEO
    Email Contact
    877-762-9467 x601

    Peter Murray
    Shareholder Contact
    Email Contact