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SPoT Coffee Provides Financial and Operational Update

·4 min read

TORONTO, Sept. 23, 2021 /CNW/ - SPOT COFFEE (CANADA) LTD (TSXV: SPP) ("SPoT" or the "Company") is pleased to provide this update on financial and operational matters.

Spot Coffee (Canada) Ltd. (CNW Group/Spot Coffee (Canada) Ltd.)
Spot Coffee (Canada) Ltd. (CNW Group/Spot Coffee (Canada) Ltd.)

Q2 Financial Highlights

The Company's net income for the three-month period ending June 30, 2021, including income purely from operations as well as other income, was $694,734. Furthermore, the Company achieved a positive EBITDA of $1,134,999.

Other key highlights from the Company's financial statements for the 6-month period ending June 30, 2021 include:

  • The working capital of the Company has risen by $1,751,764 since December 31, 2020, mainly due to the closing of the Company's non-brokered private placement, which provided SPoT with $455,030 in equity financing as previously announced in its news release of May 14, 2021. Furthermore, the Company's receipt of $940,137 (US $758,542) from the US Small Business Administration under its Restaurant Revitalization Fund (RRF) program also contributed to the rise in its working capital. The Company anticipates further funding under the RRF program in accordance with its pending application if the ENTRÉE Act, which provides for a US $60 billion replenishment of the RRF, passes.

  • The Company's liabilities have decreased by $1,374,675.

  • In the 6-month period ending June 30, 2021, as compared to the same period in 2020, initial efforts by SPoT's management to reduce operating costs as part of the Company's drive to control spending and allocate its resources more efficiently, have resulted in a total savings of $129,504.

  • Subsequent to June 30, 2021, the Company received confirmation of loan forgiveness of $792,855 (US $639,709) from the US Small Business Administration under the Paycheck Protection Program, which was first reported by the Company in its news release on April 21, 2020.

  • The Company's accounts payable and accrued liabilities decreased by $626,146 as of December 31, 2020 to $1,508,352 as of June 30, 2021.

2021 Operational Highlights

In 2021, Company's management continued implementation, notwithstanding COVID-19 limitations and challenges, of service improvements, menu optimization, quality assurance, procurement, marketing, quality control inspections and online operations. SPoT's management also improved its Toast point-of-sale system with an enterprise expansion that includes a loyalty program and kitchen order display screens. In the last 18 months, SPoT's management has also responded to COVID-19 by implementing and maintaining rigorous operating policies and procedures in accordance with the recommendations of New York State and the Center for Disease Control and Prevention to protect the health and safety of the Company's employees and guests.

Since the onset of COVID-19 pandemic in early 2020 until today, the Company continued to grow with the opening of the following SPoT cafés:

  • 1 Express café in Tops Elmwood supermarket in July of 2020, which is the fifth express café in Tops supermarkets within the greater Buffalo area.

  • 1 Neighborhood café franchise in the city of Niagara Falls, New York in early August of 2020.

  • 1 Neighborhood café franchise in the town of North Tonawanda, NY on February 15, 2021. Mr. Ralph Dailey, franchisee of SPoT Coffee North Tonawanda café, has since decided to re-focus on his primary real estate development business and has entered into an agreement to sell his business and assets in SPoT North Tonawanda café to SPoT Coffee International, Inc. ("SPoT International"), a fully owned subsidiary of SPoT Coffee (Canada) Ltd., for the total consideration of US $350,000. The agreement further provides payment by Spot Coffee International of the Purchase Price in 36 equal monthly instalments. In doing so, Mr. Dailey has terminated his franchise agreement with SPoT International. which is now the owner and operator of the SPoT Coffee North Tonawanda café.

Appointment of Brandon Sterner as President and COO of SPoT International

SPoT is also pleased to announce that Mr. Brandon Sterner has been appointed as President of SPoT International, and that he will continue to serve as Chief Operating Officer as well. Mr. Sterner, a graduate of the Niagara University College of Hospitality and Tourism Management with a BS in Food and Beverage Operations, excelled at overseeing day-to-day administrative and operational functions. He was selected for his new role based on his qualifications, experience, and performance. He brings strong analytical, managerial, communication, and leadership skills to the Buffalo management team.

Mr. Sterner has been instrumental in safeguarding the health and wellbeing of employees and customers during the COVID-19 pandemic by authoring SPoT's Coronavirus response plan and ensuring its proper implementation and ongoing effectiveness.

About SPoT Coffee

SPoT Coffee has been designing, building and operating company-owned and franchise community cafés in the northeastern United States for over 25 years. SPoT's cafés provide their customers with the highest quality service, signature made-to-order meals and award-winning micro-roasted coffee. Each SPoT café is distinctively designed to suit the local neighbourhood, creating a warm and friendly gathering place for the community. SPoT's commercial business focuses on the sale of roasted coffee beans to food service and grocery chains, business offices, and resellers such as universities and hospitals.

We seek Safe Harbor.

Forward-Looking Statements

Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. Except as required by applicable securities laws, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither 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 the release.

SOURCE Spot Coffee (Canada) Ltd.


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