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Subject: ERN

CE Brands Reports Second Quarter 2024 Financial Results


CALGARY, AB, Nov. 28, 2023 /CNW/ - CE Brands Inc. (TSXV: CEBI) (TSXV: CEBI.WT) ("CE Brands", "we", "our", or the "Company"), a data-driven consumer-electronics company, today announced its financial results for the six-months ("Q2 2024") ended September 30, 2023. The related financial statements and accompanying notes, and Management's Discussion and Analysis ("MD&A") for Q2 2024 are available on SEDAR+ at www.sedarplus.ca and on CE Brands' website at www.cebrands.ca.

Except as otherwise indicated, all amounts in the press release are expressed in Canadian dollars.

Q2 2024 Highlights

"The second quarter of fiscal 2024 was challenging for CE Brands as management is worked through the re-organization of the business, but these efforts are being realized in the third quarter" said Kalvie Legat, Interim Chief Executive Officer of CE Brands. "Subsequent to this reporting period the Company has cleaned up the balance sheet, re-affirmed key partnerships, and launched a prospectus offering to re-capitalize the business for execution in the coming year".

Outlook

The Company continues to take steps to mitigate the impacts of the ongoing supply constraints on semiconductor chip manufacturing and global supply chain disruptions through supply-chain improvements and strategically prioritizing the Company's product portfolio to conserve cash and improve near-term as well as long-term profitability. In order to continue to meet customer demand, the Company anticipates pursuing additional financing for working capital and general corporate purposes, principally to ensure the Company has sufficient financing on hand for the purchase of inventory.

Due to the working capital and liquidity constraints that the Company has faced and a slower than anticipated return to full operations in our partner factories, the Company withdraws all previously disclosed financial guidance due to the uncertainty in forecasting operating results.

The Company anticipates that it will require additional financing to address the Company's working capital and other financing needs and support the Company's Motorola and Vitalist product launches and sales described below. See "Forward-Looking Information", "Going Concern" and "Other Risk Factors" sections of the MD&A.

Selected Financial Information


Three months ended
September 30

Six months ended
September 30


2023

2022

2023

2022

Total revenue

-

2,247,298

1,218,798

4,688,970

Cost of products and services

-

1,732,669

680,373

3,626,821

Gross profit (loss)

-

514,629

538,425

1,062,149

Net loss

(2,046,427)

(2,128,816)

6,621,546

(4,666,139)

Total comprehensive Income (loss)

(2,046,427)

(1,950,286)

6,639,214

(4,326,951)

Basic and diluted loss per share

(0.08)

(0.08)

0.26

(0.18)

 



As at

September 30,
2023

March 31,
 2023

Total assets

193,743

1,995,279

Total non-current financial liabilities

-

5,097,002

 

References in this press release to the "Company" refer to CEBI and all its direct & indirect subsidiaries till June 27, 2023. As mentioned above with effect from June 27, 2023, CEBI lost control over the assets & liabilities of its wholly owned subsidiary EBN and hence the same has been deconsolidated from the books of CEBI. The assets and liabilities presented as on June 30, 2023 are those of CE Brands Inc. and CE Brands International only.

For more information, please see CE Brands' corporate presentation, which is available on CE Brands' website at www.cebrands.ca/investors

About CE Brands

CE Brands Inc. develops products with leading manufacturers and iconic brand licensors by utilizing proprietary data that identifies key market opportunities. With sales in over 59 countries, our innovative, highly repeatable process, has created an optimal growth path for CE Brands to be the premier global licensed brand manufacturer.

Neither the TSX Venture Exchange nor its regulation services provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Forward-Looking Information

This MD&A contains "forward-looking information" within the meaning of applicable Canadian securities laws. In general, forward-looking information is disclosure about future conditions, courses of action, and events, including information about prospective financial performance or financial position. The use of any of the words "anticipates", "believes", "expects", "intends", "plans", "will", "would", and similar expressions are intended to identify forward-looking information. Forward-looking statements included or incorporated by reference in this MD&A include, without limitation, with respect to:

The forward-looking information is based on certain key expectations and assumptions, including the continuance of manufacturing operations at the Company's partner factories in Asia, the timing of product launches, shipments and deliveries, forecast sales price and sales volumes of the Company's products and the ability of the Company to secure additional sources of financing in 2023 and 2024.

There can be no assurance that the Company will be able to secure additional financing in the future in a timely manner or at all. If the Company fails to secure additional financing, the Company may have insufficient liquidity and capital resources to operate its business resulting in material uncertainty regarding the Company's ability to meet its financial obligations as they become due and continue as a going concern.

By its nature, forward-looking information is subject to various risks, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed in this document. Some of these risks include the following:

Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date of this MD&A, and to not use such forward-looking information other than for its intended purpose. CEBI undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable securities law.

SOURCE CE Brands Inc.


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