iFabric Corp.
TSX VENTURE : IFA

February 27, 2015 09:59 ET

iFabric Corp Reports Financial Results for the First Quarter Ended December 31st 2014

MARKHAM, ONTARIO--(Marketwired - Feb. 27, 2015) - iFabric Corp (TSX VENTURE:IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for its first quarter ended December 31st 2014.

FIRST QUARTER ENDED DECEMBER 31st 2014 HIGHLIGHTS:

  • Revenues of $3,042,404 vs $3,005,785 in 2013.

  • Operating loss for the quarter of $131,725 compared to an operating profit of $314,023 in 2013. This operating loss is attributable to regulatory costs related to the Company's Environmental Protection Agency ("EPA") regulatory approval in respect of its products for entry into the medical market, as well as marketing and other costs incurred in advance of future sales for the intelligent fabrics division, which together amounted to $306,000. The loss also includes additional margin guaranty support of approximately $100,000, which was provided to major retailers by the Company's apparel division as an incentive to support current and future programs. Furthermore, an amount of $93,000 was paid and accrued in respect of severance to a former Director and Officer of the company.

    The Company's major push towards securing the regulatory approvals for entry into the medical market is now underway. This anti-bacterial and anti-viral medical market represents a very significant opportunity for iFabric", stated Hylton Karon President and CEO.

    "While sales to the sports market have commenced and I expect these to continue to grow, I wish to remind investors that our primary goal is, and has always been the medical market, which represents by far the largest opportunity for iFabric", added Mr. Karon.

    "Whilst the high level of costs associated with the testing of our unique formulations for regulatory approvals for the medical market, are currently affecting, and will continue to affect our operating performance in the short term, the medical market represents such a large market opportunity for the Company that once regulatory approvals are obtained, we anticipate significant and sustained growth in sales and profitability for the Company, and I remain extremely confident that we will meet these objectives", concluded Mr. Karon.

  • After tax loss was $160,220 (or $0.006 per share basic and diluted) compared to an after tax profit of $213,330 (or $0.008 per share basic and diluted) for the quarter ended December 31st 2013. In addition to the expense items mentioned above, the loss after tax includes an amount of $108,629 in non-cash share based compensation, which has been expensed as required by IFRS (International Financial Reporting Standards).

  • Working capital amounted to $5,460,741 at December 31, 2014 compared to $5,631,275 as at the end of the previous financial quarter.

  • Net of cash, the Company had no operating debt as at December 31st 2014 and available bank operating facilities of $2,000,000.

  • Shareholder Equity was $7,434,690 compared to $7,474,281 at the end of the previous financial quarter.

Complete Financial Statements are available on www.sedar.com and the company's website www.ifabriccorp.com

FINANCIAL HIGHLIGHTS:
Quarter Ended December 31
2014 2013
$ $
Revenue3,042,404 3,005,785
Income from operations(131,725)314,023
Share based compensation(108,629)(47,671)
EBITDA(107,615)385,802
Net income (loss) after tax(160,220)213,330
Net income (loss) per share(0.006)0.008

ABOUT iFABRIC CORP:

iFABRIC CORP currently has 25.89 million shares issued and outstanding. iFABRIC is a manufacturer, distributor, licensor and licensee of ladies intimate apparel products, accessories and sleepwear as well proprietary chemical formulations that render fabrics intelligent, thereby improving the safety and well-being of the wearer.

FORWARD LOOKING STATEMENTS

Forward-looking statements provide an opinion as to the effect of certain events and trends on the business. Certain statements contained in this news release constitute forward looking statements. The use of any words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Forward-looking information includes, but is not limited to, statements with respect to the development potential of the Company's products.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance, or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason except as required by applicable securities laws.

Any financial outlook or future oriented financial information in this news release, as defined by applicable securities legislation, has been approved by management of iFabric. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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