- A diverse portfolio of 25 innovative companies
- Sectors include:
Digital Health , Artificial Intelligence (AI), Machine Learning (ML), Blockchain, Virtual & Augmented Reality (VR/AR), Gaming, Climate Tech - 2022 unaudited Net Asset Value (NAV) of approx.
$80M as atDecember 31, 2022 * - Cash & liquid securities approx.
$6.8M - Strong Insider Ownership (15%)
Victory Square subsidiary, Hydreight, achieved Adjusted Revenue of$8,425,719 in 2022 compared toC$2,220,424 in 2021, an annual growth rate of 279%.Victory Square currently trades at an approx. 83% discount to its unaudited Net Asset Value (NAV)
"Despite the choppy markets and gloomy headlines, 2022 was a year of continued growth and new opportunities for
Company:
We provide investors a liquid way to invest in early-stage technology companies without buying a venture fund that requires accredited investor status or multi-year commitments.
- A diverse portfolio of 25 innovative companies from around the world (our founders come from:
Ireland ,Sri Lanka ,Bulgaria ,Australia ,India ,Brazil , theMiddle East andNorth America ) - Sectors include:
Digital Health , Artificial Intelligence (AI), Machine Learning (ML), Blockchain, Virtual & Augmented Reality (VR/AR), Gaming, Climate Tech - Owner-operated (15% Management Ownership)
VST is a good way to diversify into early-stage venture.
Business Model:
The
- We have unparalleled access to startups through our internal incubator and International network with over 250+ founders, investors, tech accelerators and venture capital firms from more than 60 countries.
- Second, our management team and advisors are actively involved in our investments from incubation through monetization, providing them with financial, operational, and strategic support to scale globally.
- We drive value by monetizing investments and reinvesting the gains in new innovations. The strategy was to build a self-sustaining business.
Financial Highlights:
The Company’s consolidated financial statements comprise the financial statements of the Company and its subsidiaries:
- The net loss for the year ended
December 31, 2022 , is primarily due to the fair value write-down on portfolio investments due to the market environment as well as operating losses from consolidated subsidiaries. - Revenue for the year ended
December 31, 2022 , was$5,929,096 compared to$1,494,450 for the corresponding prior year. The increase in revenues is primarily related to revenues from XRI subsidiary SVR and organic growth of Hydreight’s user base resulting in increasing subscription, pharmacy and net commission revenues. - Cost of goods sold for the year ended
December 31, 2022 , was$2,672,672 compared to$584,314 for the corresponding prior year period. The increase in cost of goods sold is related to the above-described changes in revenues, primarily due to the cost of pharmacy purchases associated with the increased pharmacy sales of Hydreight. - Gross Margin for the year ended
December 31, 2022 , was$3,256,424 compared to$910,136 or 61% for the corresponding prior year. The current period gross margin is driven primarily by the online pharmacy sales of Hydreight as well as the reclassification of management fee and sublease to the revenue line item. - Cash & liquid securities approx.
$6.8M - Unaudited NAV of approximately
$80M as atDecember 31, 2022 (see Use of Non-GAAP Financial Measures)
“The KPIs that we track more closely for
This update is made based on Victory Square’s established practice of releasing NAV as part of the Company’s ongoing response to shareholder interest in receiving periodic information. NAV is calculated based on the latest audited valuations, third party pricing agency valuations as well as unaudited management review valuations (based on comparables in the market) as at
The Company’s consolidated financial statements for the year ended
The company trades at an approx. 83% discount to its current estimated NAV, well below comparable companies.
Hydreight:
I want to highlight the
In just a few years, Hydreight has become an industry leader in providing nurses in
In order for a nurse to be able to offer services outside of a clinic or hospital, they need to have a medical director, the technology and proper licenses.
Hydreight has built an All-in-one solution for nurses, including a white-label platform, a medical director, a pharmacy and all the required licenses so they can start their own
2022 Business Highlights:
- Hydreight expanded its footprint to 437 cities nationwide in 2022
- 707 new businesses signed up on the platform in 2022, a nearly 600% increase over 2021
- A major platform update was completed to enhance scalability and feature offerings, particularly for whitelabeling strategic business-to-business (B2B) accounts
- A major app update gave service providers on the platform greater control of their service offering as well as improved training, usability, reporting, and more
- Major pharmaceutical partnerships were signed with Empower, McKesson, Medline, and
Olympia - Hydreight participated as the lead sponsor of the "National Nurses March" in
Washington, DC in May of 2022, which attracted tens of thousands of nurses - The completion of a successful merger and acquisition with
Victory Square Technologies (CSE:VST) (OTC: VSQTF), significantly expanded the Company’s network and access to resources - The Company completed a successful listing on the
TSX Venture Exchange onDecember 1, 2022
New Business Partner/Service Provider Signups Per Month:
2021 | 2022 | 2023 | |
January | 4 | 22 | 65 |
February | 5 | 13 | 57 |
March | 9 | 38 | 63 |
April | 10 | 37 | 76 |
May | 9 | 63 | - |
June | 2 | 68 | - |
July | 13 | 49 | - |
August | 4 | 73 | - |
September | 6 | 71 | - |
October | 14 | 103 | - |
November | 14 | 99 | - |
December | 12 | 71 | - |
Total | 102 | 707 | - |
Notable Portfolio Highlights: Digital Health Focus in 2023
With respect to new investments, our main focus is the digital health sector.
The pandemic has not only accelerated tech innovation and adoption in healthcare, but it has also exposed many weaknesses and areas of improvement.
Telehealth is no longer considered a luxury, but an integral part of a healthcare strategy.
Remote healthcare is here to stay, and healthcare practitioners need to invest in the proper technology to remain relevant in an ever-evolving virtual care world — this includes ensuring that patients have the same-quality visits in a virtual setting as they would in the doctor’s office.
Customers have been seeking a more personalized healthcare experience, and now with the explosive growth and familiarity with telehealth, at-home testing and wearables, it has become increasingly simple to monitor a patient’s health in the comfort of their home.
At
A number of factors make virtual-first care a priority right now, including the pandemic, but there are other overarching reasons for why virtual care has become a necessity…ie. The shrinking pool of clinicians – many of whom are burned out or even leaving their profession – won’t be able to scale with the growing demand for patient care. Virtual-first care models allow clinicians to be more efficient with their time by leaning on technology to easily triage patients and their care needs.
The future of healthcare is hybrid, and so the future of the clinician workforce is also hybrid.
The focus for
- Safetest was selected to receive a federal grant in
Brazil for a project using Artificial Intelligence in the diagnosis of neglected diseases, generating quantitative results and data processing to generate epidemiological information in real time. Safetest will receive approximatelyR$1,000,000 in grants for investing in R&D payroll, inventory, software development and equipment for the development of smartphone based rapid tests. - Safetest and Biominas partnered up on a project called Artificial Intelligence in a Point-of-Care Cervical Cancer test, which was selected for a state grant, being the second-best project among hundreds of companies that submitted for this grant. The project will receive approximately
R$1,540,000 for investing in R&D payroll, inventory and lab services for the development of a smartphone based rapid test for the detection of Cervical Cancer. - Safetest was selected for a national open innovation program called IBMP (
Molecular Biology Institute ofParaná ) Hunting. The goal of the program was to find projects that can add innovative solutions to IBMP's in vitro diagnostics and therapeutic biomolecules technological platforms. Safetest and IBMP are signing an NDA to develop aRapid PCR Point -of-Care test, which has the potential to change the Point-of-Care Diagnostics sector. - Safetest signed a contract with one of the largest Vet products companies in
Latin America for the development and production of an unprecedented rapid test that has the potential to be a game changer in the Vet diagnostics sector. - Safetest concluded the development of the HTLV 1 and 2 rapid test and is now going to perform the clinical validation for registering the test at ANVISA. There are currently no tests in the market that differentiate HTLV 1 from 2.
- The development of the Cervical Cancer Rapid Test is moving forward quickly with good results. The next step is to expand the number of samples and the clinical validation.
- Safetest has been granted ANVISA approval for their lab facility, which can produce approx. 2 million tests per month.
Draft Label Technologies - Draft Label subsidiary inks definitive agreement to complete business combination. Draft Label will become a wholly owned subsidiary of AcquisitionCo, which is launching microsites focused on Men’s and Women’s health (ie. Hormone testing, TRT, Perimenopause, PCOS, fertility, weight loss). Draft Label is preparing for a 2023 public listing.
Notable Portfolio Highlights:
We are also excited about a number of our other portfolio companies.
XRI recently announced strategic partnerships with two development studios;
Stardust Solar - We are very bullish on the clean tech space and we feel Stardust Solar is well positioned to take advantage of the solar wave. Revenues have been doubling year over year since inception. They exited 2021 with
Covalent CQT - Covalent announced a partnership with
Next Decentrum - @NextDecentrum, the creative force behind @CryptoPharaohs_, has officially partnered with @flovatar @Piggos_nft @The_Goobz_NFT @Bl0xNFT to bring the best digital collectibles to PopCon ME, the largest pop culture and gaming event in the
FansUnite (TSX:FANS) - Achieved total revenue in the range of
CloudAdvisors - CloudAdvisors listed as 2022 New Innovators in Canadian Business and was named as a 5-Star Insurance Technology Provider in 2022 by
Cassia dba CoPilot - CoPilot exited FY 2022 with
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On behalf of the Board of Directors
“Shafin Diamond Tejani”
Director and Chief Executive Officer
www.victorysquare.com
For further information about
Investor Relations Contact –
Email: ir@victorysquare.com
Telephone: 604 283-9166
Telephone: 604 283-9166
*Use of Non-GAAP Financial Measures:
This release contains references to NAV which is a non-GAAP financial measure. NAV is calculated as the value of total assets. The term NAV does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. There is no comparable GAAP financial measure presented in
ABOUT
What we do differently for startups
VST isn’t your ordinary investor. With real skin in the game, we’re committed to ensuring each company in our portfolio succeeds. Our secret sauce starts with selecting startups that have real solutions, not just ideas. We pair you with senior talent in product, engineering, customer acquisition and more. Then we let you do what you do best — build, innovate and disrupt. In 24-36 months, you’ll scale and be ready to monetize.
What we do differently for investors
For investors, we offer early-stage access to the next unicorns before they’re unicorns. Our portfolio represents a uniquely liquid and secure way for investors to get access to the latest cutting-edge technologies. Because we focus on market-ready solutions that scale quickly, we’re able to provide strong and stable returns while also tapping into emerging global trends with big upsides.
VST is a publicly-traded company headquartered in
For more information, please visit www.victorysquare.com.
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