Annual General Meeting 2020

Date: March 26, 2020

Time: 11.00 AM EST

Venue: Holiday Inn-Burlington Conference Centre
3063 South Service Road
Burlington, ON L7N 3E9

Due to COVID-19 and subsequent closing of Holiday Inn, the Annual General Meeting will be held at the MEMEX HQ:

880 Laurentian Drive – Unit #2
Burlington, Ontario L7N 3V6
Canada

 

Please find below the investor documents:

1) Annual Financial Statement and MD&A

2) NI Card

3) Management Information Circular

Memex Inc. Reports Q4-2019 Results Record Bookings & Revenue Reported for Fiscal Year

Burlington, ON, Canada – January 23, 2020 – Memex Inc. (“Memex” or the “Company”) (TSX-V: OEE), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released its annual financial and operational highlights for its fiscal year ending September 30, 2019. All results are reported in Canadian dollars. A complete set of the Audited September 30, 2019 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed at www.sedar.com.

Summary financial highlights for the three-months ended September 30, 2019:

  • Memex reported revenue of $932 thousand for the three-month period, as compared to $1.08 million in the same period a year ago (a 13% decrease), but still the second highest quarterly revenue ever reported;
  • Gross Bookingsi for the period totalled $735 thousand, versus $421 thousand in the same period a year ago, a 75% increase (net bookings for the quarter were $503 thousand when netted against two cancelled projects that were booked in prior quarters, a 19% increase from a year ago);
  • The Company finished the period with $1.19 million in project backlogii, $89 thousand more than at September 30, 2018;
  • Gross margin was 69.5% for the period compared to 81.9% for the year-ago period;
  • Cash consumed from operations in Q4-2019 (before changes in non-cash items) was $71 thousand, $67 thousand more than the same period a year ago;
  • Net and comprehensive loss for the period was $137 thousand ($0.001 per share), compared to $70 thousand ($0.001 per share) for the same period a year ago; and
  • The Company had $356 thousand in working capital, including $740 thousand in cash at September 30, 2019, as compared with $723 thousand in working capital and $1.048 million in cash at September 30, 2018.

 

Summary financial highlights for the Year ended September 30, 2019:

  • Fiscal 2019 revenue of $3.25 million was the best annual revenue ever reported, exceeding the previous high by more than $340 thousand (12%). Year-over-year, revenue increased 14% from $2.85 million in F2018;
  • Fiscal 2019 bookingsi of $3.48 million set a new benchmark, exceeding the Company’s previous record of $3.42 million recorded in 2016. Year-over-year, bookingsi increased 27% from $2.75 million in F2018;
  • Gross margin for the year was 70.9% compared to 69.9% a year ago;
  • Net and comprehensive loss was $1.07 million ($0.008 per share), compared to $2.25 million ($0.017 per share) loss a year ago.
  • Cash utilized in operating activities (before changes in non-cash items) of $822 thousand in fiscal 2019 was $1.13 million (58%) lower than the prior year, its lowest level since going public in 2013.

Management commentary:

“The team at Memex executed our operational and financial plans exceedingly well in the fourth quarter and fiscal year of 2019,” said Memex CEO David McPhail. “The Company posted several records and near record metrics and did so while consuming record low cash from operations in fiscal 2019. Bookings are up, giving us increased confidence that the MERLIN suite is resonating with the manufacturing industry. In fact, demonstrations of MERLIN’s advanced analytics and agility are primary reasons for our record bookings, as these features address industry trends of streamlining production facility operations and increasing responsiveness to shifts in demand. We’re pleased with our progress, and we look forward to continued execution in fiscal 2020.”

Selected financial information:

   

Three-months periods ended

September 30

 

   

Year ended

September 30

 

(Canadian dollars – in thousands except per share and margin%) 2019 2018 Change  

 

2019 2018 Change
Revenue 932 1,077    13%   3,251 2,853 +    14%
Bookingsi 503 421 +    19%   3,484 2,752 +    27%
Gross margin % 69.5 81.9 +    15%   70.9 69.9 +      1%
Operating expenses 740 939      21%   3,260 4,195     22%
Cash utilized in operating activities1 71 22 +  223%   822 1,949     58%
Net and comprehensive loss for the period 137 70     96%   1,072 2,254     52%
Basic and diluted loss per share – period 0.001 0.001        0%   0.008 0.017     52%
  1. Before changes in non-cash working capital balances.

 

 

 

As at

(Canadian dollars – in thousands except WC ratio)

 

September 30, 2019 September 30, 2018  

 

       
Cash on hand 740 1,048          
Current assets 1,901 1,964          
Total assets 2,189 2,319          
Current liabilities 1,545 1,241          
Working capital* 356 723          
Working capital ratio** 1.23 to 1 1.58 to 1          
Backlogii 1,189 1,100          

*   Working Capital = current assets – current liabilities

**  Working Capital ratio = current assets / current liabilities

 

About Memex Inc.:

Established in 1992, Memex grew to be an industry leader in Industry Internet of Things (IIoT) through the development of MERLIN Tempus, an award-winning platform that delivers real-time, tangible increases in manufacturing productivity. Memex is on the leading edge of industry trends in computing power, machine connectivity, industry standards, advanced software technology, and manufacturing domain expertise.

Our persistent pursuit of innovative IIoT solutions led to a comprehensive understanding of the challenge’s manufacturers face. We made it our mission to, “successfully transform factories of today into factories of the future.” As the global leader in Machine to Machine (M2M) connectivity solutions, our hardware and software products create unparalleled visibility at all levels, from “Shop-Floor-to-Top-Floor.”

The MERLIN Tempus Suite provides effective quantification and management of Overall Equipment Effectiveness (OEE) by revealing hidden capacity using real-time objective data. Further, it offers sustainable benefits that enable world-class OEE such as reducing costs, incorporating strategies for continuous LEAN improvement, and boosting bottom-line financial performance. For more information, please visit: www.MemexOEE.com

For investor inquiries please contact:

Ed Crymble, Chief Financial Officer

905-635-1540

investor.relations@memexOEE.com

David McPhail, President & CEO

905-635-1540

investor.relations@memexOEE.com

 

Sean Peasgood, Investor Relations

647-977-9264

sean@sophiccapital.com

 

Neither the TSX Venture Exchange nor its Regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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i & ii  These non-IFRS financial measures are identified, defined and reconciled to their closest IFRS measures, revenue and unearned revenue, within our Management’s Discussion and Analysis for the years ended September 30, 2019 and 2018, in the section “Other Financial Measures.”  That MD&A is available at www.sedar.com under our company profile.

Memex Inc. Reports Q2-2019 Results

Burlington, ON, Canada – May 30, 2019 – Memex Inc. (“Memex” or the “Company”) (TSX-V: OEE), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released financial and operational highlights for its second quarter of 2019 ending March 31, 2019. All results are reported in Canadian dollars. A complete set of March 31, 2019 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed at www.sedar.com.

 

Summary financial highlights for the three-months ended March 31, 2019:

 

  • Memex reported revenue of $709 thousand for the three-month period, as compared to $764 thousand in the same period a year ago (a 7% decrease);
  • Bookingsi for the period totalled $843 thousand versus $633 thousand in the same period a year ago, a 33% increase;
  • The Company finished the period with $1.28 million in project backlogii, $181 thousand more than at September 30, 2018;
  • Gross margin was 72% for the period compared to 71% for the year-ago period;
  • Cash consumed from operations in Q2-2019 (before changes in non-cash items) was $265 thousand, equating to $151 thousand or 36% less consumed than the same period a year ago;
  • Net and comprehensive loss for the period was $332 thousand ($0.002 per share), compared to $511 thousand ($0.004 per share) for the same period a year ago; and
  • The Company had $759 thousand in working capital, including $1.06 million in cash at March 31, 2018, as compared with $723 thousand in working capital and $1.05 million in cash at September 30, 2018.

Summary financial highlights for the six-months ended March 31, 2019:

 

  • Memex reported revenue of $1.40 million for the six-month period, as compared to $1.13 million in the same period a year ago (a 25% increase);
  • Bookingsi for the period totalled $1.89 million – a record six-month start for the Company, versus $1.29 million in the same period a year ago, a 46% increase;
  • Year-to-date (YTD) Gross margin was 70% for compared to 62% for the year-ago period;
  • Cash consumed from operations in YTD-2019 (before changes in non-cash items) was $566 thousand, equating to $751 thousand or 57% less consumed than the same period a year ago; and
  • YTD Net and comprehensive loss was $680 thousand ($0.005 per share), compared to $1.50 million ($0.011 per share) for the same period a year ago.

Operational and other highlights:

 

 

  • On March 28th Memex completed its negotiations with affiliates of G&G Private Capital (“G&G”) who agreed to provide up to $1.4 million in loan facilities in combination with $100 thousand provided from Officers of Memex for a total of $1.5 million dollars in potential loan facility financing. An initial tranche of $750 thousand ($700 thousand from G&G) was received by Memex on March 28th.
  • In March the Company secured its first significant recurring software subscription contract (Memex offers both perpetual and ongoing subscription software licensing) with a subsidiary of Ford Motor Company to provide 72 subscription licenses to use MERLIN Tempus Enterprise Edition. In addition to software the Company will be providing installation and support services which are expected to be substantially completed during the current fiscal year.
  • Company President and C.E.O. David McPhail continued his series of thought leadership presentations while at EASTEC 2019 (May 14-16, 2019 | Eastern States Exposition, West Springfield, Massachusetts). His topics included “5 Steps to Success: Cashing in on the Promise of Data-Driven Manufacturing” and “Fueling Continuous Improvement with Real-time Data – The Underlying ROI / Business Case.”
  • MERLIN Tempus will be available for operational deployment from the MindSphere platform, as of Mid-June 2019. Customers will be able to securely deploy and manage their own MindSphere-driven applications from this site.  MindSphere is the cloud-based, open IoT operating system from Siemens that connects products, plants, systems and machines, enabling businesses to harness the wealth of data generated by the IoT with advanced analytics.
  • The Company held its fiscal 2018 Annual General Meeting in Burlington on March 21, 2019 where the financial statements, re-appointment of Auditors (MNP) and Stock Option Plans were all approved, and the Board of Directors were re-appointed.

Management commentary:

 

“We’re pleased that our bookings and backlog remain strong,” said Memex CEO David McPhail. “The loan facilities we negotiated with G&G have significantly strengthened our Balance Sheet. And as one of the Officers who invested alongside these loan facilities, I’m confident that Memex will capitalize on the pipeline opportunities ahead of us.”

Selected financial information:

   

Three-months periods ended

March 31

 

   

Six-months periods ended

March 31

 

(Canadian dollars – in thousands except per share and margin%) 2019 2018 Change  

 

2019 2018 Change
Revenue 709 764      7%   1,402 1,126 +    25%
Bookingsi 844 633 +    33%   1,886 1,293 +    46%
Gross margin % 72.3 71.1 +      2%   69.7 62.0 +    12%
Operating expenses 832 1,041      20%   1,631 2,168      25%
Cash utilized in operating activities1 265 416     36%   566 1,317     57%
Net and comprehensive loss for the period 332 511     35%   680 1,497     55%
Basic and diluted loss per share – period (0.002) (0.004)     26%   (0.005) (0.011)     55%
  1. Before changes in non-cash working capital balances.

 

 

 

As at

(Canadian dollars – in thousands except WC ratio)

 

March 31, 2019 September 30, 2018  

 

       
Cash on hand 1,059 1,048          
Current assets 2,449 1,964          
Total assets 2,772 2,319          
Current liabilities 1,690 1,241          
Working capital* 759 723          
Working capital ratio** 1.45 to 1 1.58 to 1          
Backlogii 1,281 1,100          

*   Working Capital = current assets – current liabilities

**  Working Capital ratio = current assets / current liabilities

 

 

About Memex Inc.:

Established in 1992, Memex grew to be an industry leader in Industry Internet of Things (IIoT) through the development of MERLIN Tempus, an award-winning platform that delivers real-time, tangible increases in manufacturing productivity. Memex is on the leading edge of industry trends in computing power, machine connectivity, industry standards, advanced software technology, and manufacturing domain expertise.

Our persistent pursuit of innovative IIoT solutions led to a comprehensive understanding of the challenges manufacturers face. We made it our mission to, “successfully transform factories of today into factories of the future.” As the global leader in Machine to Machine (M2M) connectivity solutions, our hardware and software products create unparalleled visibility at all levels, from “Shop-Floor-to-Top-Floor.”

The MERLIN Tempus Suite provides effective quantification and management of Overall Equipment Effectiveness (OEE) by revealing hidden capacity using real-time objective data. Further, it offers sustainable benefits that enable world-class OEE such as reducing costs, incorporating strategies for continuous LEAN improvement, and boosting bottom-line financial performance. For more information, please visit: www.MemexOEE.com

For investor inquiries please contact:

 

Ed Crymble, Chief Financial Officer

905-635-1540

investor.relations@memexOEE.com

 

David McPhail, President & CEO

905-635-1540

investor.relations@memexOEE.com

 

 

Sean Peasgood, Investor Relations

647-977-9264

sean@sophiccapital.com

 

Forward-Looking Statements

The statement relating to the future delivery of products and services “…installation and support services which are expected to be substantially completed during the current fiscal year,” and the comment from David McPhail “I’m confident that Memex will capitalize on the pipeline opportunities ahead of us” are forward-looking statements. However, there is no guarantee that the contemplated installation and support services will be completed by the end of the fiscal year, or ever, nor that the Company will be able to capitalize on its current pipeline of opportunities. No forward-looking statements can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The aforementioned forward-looking statements are made as of the date of this press release and, except as required by applicable securities legislation, Memex assumes no obligation to update publicly or revise these forward-looking statements to reflect subsequent information, events, or circumstances

 

Neither the TSX Venture Exchange nor its Regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

­­­­­­­­­­­­­­­­­­­­­­­_________________________________

 

i & ii  These non-IFRS financial measures are identified, defined and reconciled to their closest IFRS measures, revenue and unearned revenue, within our Management’s Discussion and Analysis for the periods ended March 31, 2019 and 2018, in the section “Other Financial Measures.”  That MD&A is available at www.sedar.com under