Q2 Financial Highlights
The Company's net income for the three-month period ending
Other key highlights from the Company's financial statements for the 6-month period ending
- The working capital of the Company has risen by
$1,751,764 sinceDecember 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 ofMay 14, 2021 . Furthermore, the Company's receipt of$940,137 (US$758,542 ) from theUS Small Business Administration under itsRestaurant 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 theUS Small Business Administration under the Paycheck Protection Program, which was first reported by the Company in its news release onApril 21, 2020 . - The Company's accounts payable and accrued liabilities decreased by
$626,146 as ofDecember 31, 2020 to$1,508,352 as ofJune 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
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 onFebruary 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 toSPoT Coffee International, Inc. ("SPoT International "), a fully owned subsidiary ofSPoT Coffee (Canada) Ltd. , for the total consideration of US$350,000 . The agreement further provides payment bySpot Coffee International of the Purchase Price in 36 equal monthly instalments. In doing so,Mr. Dailey has terminated his franchise agreement withSPoT International . which is now the owner and operator of the SPoT Coffee North Tonawanda café.
Appointment of
SPoT is also pleased to announce that Mr.
About SPoT Coffee
SPoT Coffee has been designing, building and operating company-owned and franchise community cafés in the northeastern
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.
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SOURCE
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