Toronto, Ontario--(Newsfile Corp. - March 20, 2023) - American Aires Inc. (CSE: WIFI) (OTC Pink: AAIRF) (the "Company" or "Aires"), a provider of scientifically-proven EMF modulation technology, provides an update to investors on its activities and important developments that took place in 2022 following the recent announcement of the revocation of the Ontario Securities Commission's Cease-Trade Order and the resumption of trading of the Company's shares on the Canadian Securities Exchange.
During Q3/2022, the Company continued to enjoy the tailwinds from the marketing strategy revamp which commenced in August 2021 and remained on track for a continuous and gradual increase in advertising spend. Based on preliminary and unaudited financial results, the Company continued to build on the strength in demand and realized 2022 sales of $5.8 million, a 128% increase on a year-over-year ("YOY") basis. Advertising expenses increased 57% YOY during 2022 to $4.8 million. The Company achieved record monthly sales surpassing CAD$900,000 (up 124% YOY) in November 2022, despite facing inventory challenges during the last two quarters of the year. Advertising expenses increased 91% YOY in November 2022. The gross profit margin during 2022 was 60% versus 39% a year ago.
"We are incredibly proud of our team's resilience and determination to achieve its sales numbers, particularly during the crucial Q4 period, despite the supply challenges. Consumer demand, even during out-of-stock situations, attests to the genuine market need for our product offerings. This accomplishment highlights our capacity to evolve and innovate. Our success in this period underscores the team's commitment to our vision and further bolsters management's confidence in our ability to drive growth in a challenging and volatile market landscape," said Josh Bruni, CEO.
In addition, along with the Company's long-term strategy of disciplined geographic expansion, sales during 2022 continued to benefit from the launch of fulfillment centres in Australia and Europe in Q1 and Q2, respectively. Through reduced fulfillment time and cost, the new fulfillment centres had a net positive impact on sales in the respective regions. The Australian location helped open up the Oceania geography while the location in Poland, having a much smaller footprint, still added to the growth in sales by increasing the Company's exposure to the European market.
Additionally, in Q4 2022, the Company launched its latest product, the FLEX, which expands the Company's EMF modulation technology lineup, known as Lifetune. The FLEX is a versatile addition to the current range of 4 products, carefully positioned to bridge the gap between personal protection and area protection categories. The FLEX builds on the Company's existing technology and its design allows for flexibility, serving as both a personal and area protection solution by offering a larger field of protection while maintaining a smaller size, making it ideal for use as a wearable.
"We are thrilled to unveil the FLEX as a data-driven design that enhances the Lifetune lineup. The FLEX integrates our powerful C28S microprocessor into a compact and durable form factor. The FLEX meets our customers' demands for advanced EMF protection on the go and underscores our commitment to continuous expansion of revenue streams and revenue growth," said Chief Product Officer, Dimitry Serov.
The Company is committed to expediting its path to profitability, recognizing the importance of financial resilience amid complex capital market conditions and global geopolitical dynamics. In the upcoming quarters, management will prioritize a balance between robust top-line growth, vigilant cost control, and a targeted, disciplined advertising spend.
As previously announced, to further this commitment the Company has strategically restructured the executive team, improving alignment with these objectives. Founder Dimitry Serov has transitioned from CEO to the newly created position of Chief Product Officer. In this new role, Mr. Serov will concentrate on advancing product enhancements and supply chain efficiency. Meanwhile, Josh Bruni has taken the helm, overseeing the Company with a steadfast focus on continued sales growth and profitability. These will be the two key pillars of the Company's strategy for the near future.
The implementation of back-office realignments and the appointment of a full-time CFO highlight the Company's commitment to assembling a robust team capable of building a financial strategy to support sustainable growth as well as handling timely disclosure requirements for investors, capital markets, and regulators. This decisive action and clear vision for the future exemplify the Company's dedication to operational excellence.
With the aforementioned strategy already underway, management is delighted to share a positive update on the progress of the 2022 financial statement audit. A substantial portion of the audit has been successfully completed, and barring any unforeseen circumstances, the Company's plan is to file its 2022 annual Financial Statements and Management's Discussion and Analysis on or ahead of the regulatory deadline. This timely progress demonstrates the Company's commitment to transparency and adherence to regulatory reporting standards.
About American Aires Inc.
American Aires Inc. is a Canadian-based nanotechnology company which has developed proprietary silicon-based microprocessors that reduce the harmful effects of electromagnetic radiation (EMR). The technology was developed by a team of highly accredited scientists and confirmed by independent third-party validation including peer-reviewed studies and publications in scientific journals. Aires' Lifetune products specifically target EMR emitted by consumer electronic devices such as cellphones, computers, baby monitors, and Wi-Fi radiation, including the rapidly expanding next-generation high-speed 5G networks. Aires is listed on the CSE under the ticker 'WIFI' and on the OTC Pink under the symbol 'AAIRF'. Learn more at www.airestech.com.
On behalf of the board of directors
Josh Bruni, CEO
Telephone: (415) 707-0102
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Certain material assumptions regarding such forward-looking statements may be discussed in this news release and the Company's annual and quarterly management's discussion and analysis filed at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States, or to or for the account or benefit of any person in the United States, absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any common shares in the United States, or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. We seek safe harbour.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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