iFabric Corp.

TSX VENTURE : IFA


January 28, 2014 09:15 ET

iFabric Corp. Reports Year End and Fourth Quarter 2013 Results

MARKHAM, ONTARIO--(Marketwired - Jan. 28, 2014) - iFabric Corp. (TSX VENTURE:IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for the year ended September 30th, 2013 and the fourth quarter ended September 30th, 2013.

2013 YEAR ENDED SEPTEMBER 30th HIGHLIGHTS:

  • Revenues of $8,165,983 vs $6,074.766 in 2012, an increase of 34.42%. This increase was mainly attributable to new intimate apparel programs which commenced shipping in January 2013
  • Operating profit for the year ended September 30, 2013 of $602,513 compared to $330,910 in 2012.
  • After tax loss of $144,806 or $0.006 per share compared to an after tax loss of $214,349 or $0.009 per share for the year ended September 30th, 2012. The loss in 2013 is largely attributable to share based compensation costs of $436,414 incurred in connection with the issuance of stock options to directors, officers and employees of the company, an impairment loss of $300,254 attributable to the termination of the Company's joint venture agreement with Intelligent Fabric Technologies PLC, an unrelated company, as well as a net operating loss incurred by the intelligent textiles division amounting to $303,728, of which approximately $240,000 comprised marketing expenses and other costs incurred during the roll out phase of anti-microbial products.
  • Working capital amounted to $3,401,416 at September 30th, 2013
  • Long term debt was reduced by $717,150 to $2,084,741 during the year.
  • Shareholder Equity increased by $391,608 from $4,772,563 in 2012 to $5,164,171 at September 30th, 2013

Q4 2013 HIGHLIGHTS:

  • Revenues of $1,936,414 vs $2,006,645 in Q4 2012
    The company had budgeted for an increase in revenues for Q4 2013 of approximately $500,000. However, a number of shipments scheduled for delivery in Sept 2013 were received late from the supplier and were shipped to customers in October 2013. Accordingly, these revenues will be reflected in Q1, 2014.
  • The net loss after tax amounted to $381,410, compared to net income after tax of $113,386 earned in the same quarter of 2012. The loss for the quarter included an impairment loss of $300,253 attributable to the termination of the Company's joint venture agreement with
    Intelligent Fabric Technologies PLC, an unrelated company, as well as share based compensation costs of $90,204

SUBSEQUENT EVENTS:

  • On December 13th, 2013, the company closed an equity offering comprising 407,250 units at $4.00 per unit, for gross proceeds $1,629,000. Each unit consists of one common share and one half of one common share purchase warrant exercisable at $5.25 for a period of three years. The agent received a cash fee of 7% as well as 28,508 agent warrants.

"This capital injection has further strengthened the Company's working capital and shareholder equity balances and provides the wherewithal to meet testing and other costs required for our next level of regulatory submissions," said Hilton Price, CFO of iFabric.

"The 2013 year was an important milestone for the Company as it represents the final year that the Company's revenues were contributed to by only our apparel division. With the roll out of anti- microbial products to the market late in the fourth quarter of 2013, I am very optimistic that the growth goals that we established for the Company when we invested into intelligent textile technologies are now well on the road to being achieved," said Hylton Karon, President and CEO of iFabric.

Complete Financial Statements are available on www.sedar.com.

FINANCIAL HIGHLIGHTS
Year Ended September 30 Quarter ended September 30
2013 2012 2013 2012
$ $ $ $
Revenue 8,165,983 6,074,766 1,936,414 2,033,481
Income from operations 602,513 330,910 (10,485 ) 163,509
Share based compensation (436,414 ) - (90,204 ) -
Impairment loss (300,253 ) - (300,253 ) -
RTO transaction costs - (572,170 ) - -
EBITDA 113,365 (123,473 ) (651,463 ) 73,017
Net income (loss) after tax (144,806 ) (214,349 ) (381,410 ) 113,386
Net income (loss) per share (0.006 ) (0.009 ) (0.016 ) 0.010

ABOUT iFABRIC CORP.:

iFABRIC CORP. currently has 25.84 million shares issued and outstanding. iFABRIC is a manufacturer, distributor, licensor and licensee of ladies intimate apparel products and accessories as well proprietary chemical compounds 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.

Email: 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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