Mr. Mark Silver reports

EDDY SMART HOME SOLUTIONS LTD. (FORMERLY AUMENTO CAPITAL VIII CORP.) ANNOUNCES YEAR ENDED AND Q4/2023 RESULTS

Eddy Smart Home Solutions Ltd. has released its financial statements for the three and 12 months ended Dec. 31, 2023.

Overview

Fourth quarter 2023 is the first time since being a public company that the company had positive net cash flow from operating activities.

"This is a milestone moment for the company. We have successfully reduced [general and administrative expenses], increased revenue, and improved operational and working capital management to achieve positive net cash flow from operating activities during Q4 2023. This is a trend we will do our best to continue," said Boris Baril, chief financial officer.

There were 32,772 devices deployed during 2023 (versus 12,679 in 2022). The deployment of these additional devices will result in increased recurring revenue.

"Our goal for 2024 is to continue to grow our active devices and restructure our liabilities. We installed nearly three times more devices in 2023 versus 2022 and are poised to continue to grow in 2024. Maintaining positive free cash flow from operations and fulfilling our growing pipeline will make Eddy a very strong company for years to come and allows us to remain leaders in this growing industry," said Cory Silver, president.

Revenue

Revenue for the three months ended Dec. 31, 2023, increased by $257,067 to $1,163,006 as compared with $905,939 reported for the three months ended Dec. 31, 2022.

Revenue for the year ended Dec. 31, 2023, increased by $845,220 to $3,409,072 as compared with $2,563,852 reported for the year ended Dec. 31, 2022.

Net loss

For the three months ended Dec. 31, 2023, net loss was ($4,404,094). Excluding the goodwill impairment charge of $3,054,335 during the current quarter, which is non-recurring, non-operating and non-cash, the adjusted net loss for the three months ended Dec. 31, 2023, was ($1,349,759), as compared with ($3,170,998) reported for the three months Dec. 31, 2022.

For the year ended Dec. 31, 2023, the net loss was ($10,568,211). Excluding the goodwill impairment charge, the adjusted net loss for the year ended Dec. 31, 2023, was ($7,513,876), as compared with ($11,800,950) reported for the year ended Dec. 31, 2022.

Cash flow from (used in) operating activities

Cash flow from operating activities for the three months ended Dec. 31, 2023, was $468,077, as compared with ($2,020,456) reported to for the three months ended Dec. 31, 2022. This reflects an improvement of $2,488,533 for the current quarter.

Cash flow used in operating activities for the year ended Dec. 31, 2023, was ($2,429,341) as compared with ($10,334,875) reported for the year ended Dec. 31, 2022. This reflects an improvement of $7,905,534 for 2023. The improvements in the operating cash flows are primarily due to a lesser net loss for 2023 and changes in the non-cash items and improvements in working capital management.

Basic and diluted loss per share

Basic and diluted loss per share for the three months ended Dec. 31, 2023, was (five cents), as compared with (four cents) reported for the comparable period.

Basic and diluted loss per share for the year ended Dec. 31, 2023, was (13 cents), as compared with (16 cents) reported for 2022.

Growth in installed devices

The company's cloud-based leak detection platform for the Eddy Smart brand managed 75,229 in-building devices as at Dec. 31, 2023 (Dec. 31, 2022: 42,457). This represents growth of approximately 77 per cent. These devices are composed of Eddy IQs, Eddy H20s and Eddy Links. Installed devices are an important measure of traction that the company is gaining in the market with the deployment of its leak protection services.

About Eddy Smart Home Solutions Ltd.

Eddy Smart is a North American provider and developer of residential and commercial smart water metering products and monitoring services, helping property owners protect, control and conserve water usage by combining water sensing devices with behavioural learning software.

For further information on the financial results of the company, please review the company's consolidated financial statements and management's discussion and analysis of the financial condition and results of operations for the years ended Dec. 31, 2023, and 2022, available on Eddy Smart's SEDAR+ website.

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