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Avcorp announces 2022 Second Quarter Financial Results

Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp Group”) today announced its financial results for the quarter ended June 30, 2022. All amounts are in Canadian currency unless otherwise stated.

2022 Second Quarter Highlights

Highlights Subsequent to Quarter-End

Review of 2022 Second Quarter Financial Results

For the quarter ended June 30, 2022, the Avcorp Group recorded loss from operations of $3,786,000 (June 30, 2021: $1,978,000). Operating loss in the second quarter of 2022 increased in comparison to 2021 by $1,808,000 mainly due to higher administrative and general expenses as a result of transaction related costs and an impairment of assets write-off of $583,000 incurred during the current quarter. The lower loss in 2021 was also supported by the government loan forgiven of $2,195,000 and CEWS of $1,548,000 recognized as other income in the second quarter of 2021. The higher loss in current quarter was partially offset by the higher gross profit of $2,843,000 compared to a gross loss of $706,000 in 2021.

Cash flows from operating activities, before consideration of changes in non-cash working capital, utilized $2,072,000 during the quarter ended June 30, 2022 as compared to utilizing $780,000 cash during the quarter ended June 30, 2021.

The Company ended the quarter with bank operating line utilization of $77,537,000 (USD $60,171,000) offset by $2,013,000 cash compared to utilization of $75,335,000 (USD $59,421,000) with $4,060,000 cash on hand as of December 31, 2021. The bank indebtedness balance of the modification gain and related adjustments as a result of executing the amending agreement in 2021 was $615,000 as at June 30, 2022 (December 31, 2021, gain of $923,000).

SOURCE Avcorp Industries Inc.

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