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Inventronics Limited — Interim / Quarterly Report 2025
Aug 20, 2025
43466_rns_2025-08-20_b7f0324d-3f7e-4932-b169-2d0c8db51ba9.pdf
Interim / Quarterly Report
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INVENTRONICS
INVENTRONICS LIMITED
2025 SECOND QUARTER
UNAUDITED FINANCIAL STATEMENTS
For the periods ended June 30, 2025 and 2024
INVENTRONICS LIMITED
FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION
| As at
(in thousands) | June 30
2025
Unaudited | December 31
2024
Audited |
| --- | --- | --- |
| ASSETS | | |
| Current | | |
| Cash | $ 654 | $ 836 |
| Trade and other receivables [Note 5] | 1,257 | 536 |
| Inventories [Note 6] | 975 | 966 |
| Income taxes recoverable | - | 100 |
| Other current assets | 71 | 31 |
| | 2,957 | 2,469 |
| Non-current | | |
| Property, plant and equipment | 3,178 | 3,244 |
| Total Assets | $ 6,135 | $ 5,713 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | |
| --- | --- | --- |
| Current liabilities | | |
| Trade and other payables [Note 8] | $ 844 | $ 747 |
| Income taxes payable | 105 | - |
| Current portion of long-term debt [Note 9] | 193 | 186 |
| | 1,142 | 933 |
| Non-current liabilities | | |
| Deferred tax liabilities | 250 | 263 |
| Long-term debt [Note 9] | 2,151 | 2,250 |
| Total Liabilities | 3,543 | 3,446 |
| Shareholders’ equity | | |
| Share capital [Note 10] | 1,337 | 1,337 |
| Contributed surplus | 370 | 366 |
| Retained earnings | 885 | 564 |
| Total Shareholders’ Equity | 2,592 | 2,267 |
| Total Liabilities and Shareholders’ Equity | $ 6,135 | $ 5,713 |
See accompanying notes
INVENTRONICS LIMITED
FINANCIAL STATEMENTS
STATEMENT OF COMPREHENSIVE INCOME
Unaudited
| For the periods ended June 30
(in thousands, except per share amounts) | Three months | | | Six months
2024 |
| --- | --- | --- | --- | --- |
| | 2025 | 2024 | 2025 | |
| Revenue | $ 2,190 | $ 1,950 | $ 4,617 | $ 3,394 |
| Cost of sales [Note 7] | 1,734 | 1,515 | 3,618 | 2,761 |
| Gross profit | 456 | 434 | 999 | 632 |
| Selling and administration expense | 234 | 205 | 500 | 354 |
| Interest expense | 34 | 37 | 68 | 74 |
| Earnings, before income tax | 188 | 193 | 431 | 204 |
| Income tax | 50 | 52 | 110 | 55 |
| Net earnings and comprehensive income | $ 138 | $ 141 | $ 321 | $ 149 |
| Basic & diluted earnings per share [Note 12] | 2.8¢ | 2.9¢ | 6.6¢ | 3.1¢ |
See accompanying notes
2
INVENTRONICS LIMITED
FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
Unaudited
| For the periods ended June 30
(in thousands) | Three months | | Six months | |
| --- | --- | --- | --- | --- |
| | 2025 | 2024 | 2025 | 2024 |
| OPERATING ACTIVITIES | | | | |
| Net earnings | $ 138 | $ 141 | $ 321 | $ 149 |
| Add: | | | | |
| Interest on long-term debt | 34 | 37 | 68 | 74 |
| Depreciation | 45 | 51 | 90 | 98 |
| Other items not involving cash | 5 | - | (9) | 1 |
| | 221 | 229 | 470 | 322 |
| Changes in non-cash working capital balances [Note 13] | 64 | 3 | (468) | (181) |
| Cash provided by operating activities | 285 | 232 | 2 | 141 |
| FINANCING ACTIVITIES | | | | |
| Repayment of long-term debt [Note 10] | (46) | (43) | (92) | (86) |
| Interest on long-term debt | (34) | (37) | (68) | (74) |
| Dividends paid | - | - | - | - |
| Issuance of share capital [Note 11] | - | - | - | - |
| Cash (used) by financing activities | (80) | (80) | (160) | (160) |
| INVESTING ACTIVITIES | | | | |
| Acquisition of property, plant and equipment | (5) | (35) | (24) | (94) |
| Cash (used) by investing activities | (5) | (35) | (24) | (94) |
| Increase (decrease) in cash and cash equivalents | 200 | (117) | (182) | (113) |
| Cash and cash equivalents, beginning of the period | 454 | 703 | 836 | 933 |
| Cash and cash equivalents, end of the period | $ 654 | $ 820 | $ 654 | $ 820 |
See accompanying notes
3
INVENTRONICS LIMITED
FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN EQUITY
Unaudited
| (in thousands) | Share capital | Contributed surplus | Retained Earnings | Total Shareholders' equity |
|---|---|---|---|---|
| Balance, December 31, 2023 | $ 1,337 | $ 364 | $ 1,113 | $ 2,814 |
| Option expense | - | 1 | - | 1 |
| Dividend declared | - | - | (487) | (487) |
| Net earnings for the six months ended June 30, 2024 | - | - | 149 | 149 |
| Balance, June 30, 2024 | $ 1,337 | $ 365 | $ 775 | $ 2,477 |
| Balance, December 31, 2024 | $ 1,337 | $ 366 | $ 564 | $ 2,267 |
| --- | --- | --- | --- | --- |
| Option expense | - | 4 | - | 4 |
| Net earnings for the six months ended June 30, 2025 | - | - | 321 | 321 |
| Balance, June 30, 2025 | $ 1,337 | $ 370 | $ 885 | $ 2,592 |
See accompanying notes
4
5
INVENTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the periods ended June 30, 2025 and 2024
Unaudited
1. DESCRIPTION OF BUSINESS
Inventronics Limited ("Corporation"), a corporation publicly traded on the TSX Venture Exchange under the symbol IVX is an individual entity incorporated in Alberta, Canada that is not part of any group of other entities. The Corporation, with its operations located in Brandon, Manitoba, designs and manufactures protective enclosures and related products for the telecommunication, cable, electric distribution, energy, and other industries in Canada and the United States.
2. DATE OF AUTHORIZATION FOR ISSUE
The Corporation's financial statements were authorized for issue on August 20, 2025 by the Corporation's Board of Directors.
3. MATERIAL ACCOUNTING POLICY INFORMATION
These unaudited interim financial statements of the Corporation have been prepared by management in accordance with IFRS® Accounting Standards ("IFRS") using accounting policies and methods applied in the preparation of the Corporation's audited annual financial statements for the year ended December 31, 2024. As such, these interim financial statements do not include all disclosures with respect to the requirements under IFRS for annual financial statements and thus should be read in conjunction with the Corporation's 2024 audited annual financial statements. The accounting principles applied are on the basis that the Corporation is a going concern, which assumes that the Corporation will continue operations into the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. Management routinely plans future activities including forecasting cash flows using detailed projections that are based in part on historical experience as well as anticipated revenue and profit streams. All amounts in these financial statements are reported in Canadian dollars unless specifically stated to the contrary.
4. ADOPTION OF NEW ACCOUNTING STANDARDS
Accounting pronouncements that became effective during the period covered by these unaudited interim financial statements did not have a material impact on the Corporation's reporting. Likewise, accounting pronouncements issued, but not effective until after June 30, 2025, are not expected to have a material impact on the Corporation's financial statements.
5. TRADE AND OTHER RECEIVABLES
| As at (in thousands) | June 30 | December 31 |
|---|---|---|
| 2025 | 2024 | |
| Trade receivables | $ 1,257 | $ 536 |
At June 30, 2023, based on management's review, no provision for doubtful accounts was recorded (2022 - $Nil).
6. INVENTORIES
| As at (in thousands) | June 30 | December 31 |
|---|---|---|
| 2025 | 2024 | |
| Raw materials | $ 718 | $ 800 |
| Work-in-progress | 56 | 16 |
| Finished goods | 201 | 150 |
| $ 975 | $ 966 |
For the six months ended June 30, 2025, the Corporation expensed inventory costs of $2,753 (June 30, 2024 - $2,056) through cost of sales. At June 30, 2025, the provision for net realizable value was $35 (December 31, 2024 - $25).
7. BANK CREDIT FACILITIES
The Corporation has a demand operating credit facility in the form of an overdraft lending account which provided an authorized limit of $1,200 with an interest rate of prime plus 0.90% (December 31, 2024 – prime plus 0.90%) for an effective rate of 5.85% (December 31, 2024 – 6.35%). At June 30, 2025, an amount of $1,200 under this facility was available, of which $Nil was drawn (June 30, 2024 - $1,200 available and $Nil was drawn). The credit facility does not contain any financial covenants and is secured by a general security agreement over accounts receivable and inventory. The Corporation also has an equipment financing facility in the amount of $1,500 (December 31, 2024 - $1,500), to be used when necessary to finance equipment additions.
6
INVENTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the periods ended June 30, 2025 and 2024
Unaudited
8. TRADE AND OTHER PAYABLES
| As at
(in thousands) | June 30
2025 | December 31
2024 |
| --- | --- | --- |
| Trade payables and other accrued expenses | $ 597 | $ 462 |
| Payroll accruals | 223 | 282 |
| Government remittances payable | 24 | 3 |
| | $ 844 | $ 747 |
9. LONG-TERM DEBT
| As at
(in thousands) | June 30
2025 | December 31
2024 |
| --- | --- | --- |
| Fixed rate mortgage bearing interest of 5.25% until April 2034; maturing in 2043; repayable monthly in blended principal and interest installments of $14; secured by a first mortgage on the Corporation's manufacturing facility and land in Brandon, Manitoba, a general security agreement providing a security interest in all of the Corporation's present and after acquired personal property but accepting a subordinate position to all existing registered charges. | $ 1,895 | $ 1,927 |
| Fixed rate equipment loan bearing interest of 7.5% and maturing in September 2028; repayable monthly in blended principal and interest installments of $13; secured by a first claim on the financed equipment. | 449 | 509 |
| | 2,344 | 2,436 |
| Less: current portion | 193 | 186 |
| Long-term portion of long-term debt | $ 2,151 | $ 2,250 |
Although containing general performance conditions, the loan agreements do not contain any financial covenants that must be periodically tested. The Corporation is in compliance with all obligations pertaining to these agreements and the fair values of these loans approximate their carrying values.
10. SHARE CAPITAL
An unlimited number of common shares, with no par value, are authorized for issue. The authorized, issued and outstanding common shares of the Corporation, which are fully paid, are as follows:
| For the
(dollar amounts in thousands) | Six months ended
June 30, 2025 | | Twelve months ended
December 31, 2024 | |
| --- | --- | --- | --- | --- |
| | Number of
shares | Amount | Number of
shares | Amount |
| Outstanding, beginning of period | 4,871,145 | $ 1,337 | 4,871,145 | $ 1,337 |
| Options exercised | - | - | - | - |
| Outstanding, end of period | 4,871,145 | $ 1,337 | 4,871,145 | $ 1,337 |
Stock option plan
Inventronics maintains a stock option plan providing the Corporation the ability to grant options to employees and directors to purchase one common share of the Corporation per option. At June 30, 2025, there were 480,000 options outstanding with an average exercise price of $0.575 per share (December 31, 2024 – 50,000 at $1.65/share). In the second quarter of 2025, there were 430,000 options granted to the directors of the Corporation at an exercise price of $0.45 per share, vesting over two years from the date of grant, and expiring at the end of five years.
The fair value of stock options granted in 2025 was $60 as determined using a Black-Scholes option-pricing model which employed a risk-free interest rate of 2.75%, expected life of 5 years, expected future volatility of 76%, dividend rate of 10%, and no forfeiture rate. The resulting fair values of the stock options granted will be recognized as compensation costs over the vesting period. To date in 2025, the Corporation recognized option expense of $5 (2024 – $1) related to stock options.
There has been no other activity related to the Corporation's stock option plan since June 30, 2025.
7
INVENTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the periods ended June 30, 2025 and 2024
Unaudited
11. EARNINGS PER SHARE
| For the periods ended June 30
(dollar amounts in thousands, except per share amounts) | Three months | | Six months | |
| --- | --- | --- | --- | --- |
| | 2025 | 2024 | 2025 | 2024 |
| Net earnings | $ 138 | $ 141 | $ 321 | $ 149 |
| Weighted average common shares outstanding | 4,871,145 | 4,871,145 | 4,871,145 | 4,871,145 |
| Basic earnings per share | 2.8¢ | 2.9¢ | 6.6¢ | 3.1¢ |
| Diluted earnings per share | 2.8¢ | 2.9¢ | 6.6¢ | 3.1¢ |
12. SUPPLEMENTARY CASH FLOW INFORMATION
| For the periods ended June 30
(in thousands) | Three months | | Six months | |
| --- | --- | --- | --- | --- |
| | 2025 | 2024 | 2025 | 2024 |
| Changes in non-cash working capital balances: | | | | |
| Trade and other receivables | $ 156 | $ (242) | $ (720) | $ (580) |
| Inventories | 24 | 90 | (9) | 4 |
| Other current assets | (27) | (16) | (40) | (31) |
| Trade and other payables | (221) | (12) | 96 | 240 |
| Income tax | 132 | 183 | 205 | 186 |
| | $ 64 | $ 3 | $ (468) | $ (181) |
13. RELATED PARTY TRANSACTIONS
The four-person senior management team are members of Inventronics' Board of Directors ("Board") and receive no compensation for their service as Board members. The Corporation pays fixed and variable compensation to its senior management team for their employment services. For the three and six months ended June 30, 2025, the Corporation expensed $276 (2024 - $200) and $508 (2024 - $322), respectively, related to those compensation arrangements.