Wavefront Announces First Quarter 2020 Financial Results

EDMONTON, Alberta, Jan. 29, 2020 (GLOBE NEWSWIRE) -- Wavefront Technology Solutions Inc. (Wavefront or the Company, TSX-V: WEE; OTCQB: WFTSF), an oil field service provider focused on offering the oil and gas industry proprietary, leading edge technology announces its financial results for the first quarter ending November 30, 2019.

An overview of the financial results for the reporting period includes:

• Total recorded revenues for the first quarter 2020 (i.e., three months ended November 30, 2019) were $700,685 a decrease of $243,068 from the comparative quarter (i.e., three months ended November 30, 2018) revenues of $943,753.
  
  Revenues for the first quarter 2020 were not as expected and negatively impacted as US $500,000 in potential revenues related to the General Services Agreement, which was announced on September 9, 2019, were not yet recognized. Revenues were not recognized, at this time, due to unforeseen circumstances beyond the Company’s control.
  
  It is the intent of the Company, at this time, to continue, in good faith, to work with executive management of the exploration and production (“E&P”) client to resolve any matters. Once the Company can recognize revenues, in accordance with International Financial Reporting Standards (“IFRS”), the Company will accordingly disclose any such recognition.
  
  
• Of the recorded revenues for the reporting quarter, $695,184 (2019 - $840,404) relates to Powerwave stimulations, with $571,145 (2019 - $653,503) of those revenues being derived from the Middle East. Powerwave stimulation activity in the Middle East were lower than expected due to decreased activities of Wavefront’s Distributors related to among other issues: end user budgetary constraints; and Distributor field performance resulting in jobs being provided to alternate coiled tubing companies.
  
  
• The net loss for the quarter ended November 30, 2019 was $244,782 (or $0.003 basic and diluted loss per share), compared to the comparative quarter ended November 30, 2018 which reported a net loss of $45,947 (or $0.001 basic and diluted loss per share).
  
  
• Cash from operating activities totalled $91,825 was principally impacted by non-working capital items, and the new accounting treatment of leases, which increases interest cost by $2,486 however, the principal repayment of $36,514 related to leases are no longer in the operating activities section but is recorded in financing activities section of the statement of cash flows.