Intouch Insight Ltd. (OTC:INXSF)

Intouch Insight Ltd (OTC:INXSF) (INX.V) ($0.34; $8.6M market cap), announced Q4 2024 results:

• Q4 sales of $6.3 million vs $9.0 million in the prior year
• Q4 2024 Non-GAAP EPS of $0.01 vs $0.00 in the prior year
• Full year sales of $28.2 million vs $25.4 million in the prior year
• Full year non-GAAP EPS of $0.03 vs $0.01 in the prior year

"We are pleased with the financial results in 2024 having delivered the strongest year in the company's history with record profits. 82% of our revenues came from the United States and we do not expect to be impacted directly by the current government actions as we operate in the United States through a US corporation," said Cameron Watt, President & Chief Executive Officer of the Company.

"Looking forward we remain committed to sustainable, profitable revenue while ensuring that the organization is able to generate the resources it requires," said Watt.

Intouch Insight Ltd. develops managed mobile software applications and software-as-a-service platforms, and delivers services for private businesses, governments, and regulators in Canada and the United States

Intouch Insight Ltd (OTC:INXSF) ($0.28; $7.2M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced it has closed the acquisition of Alta360 research. The definitive agreement was signed on September 15, 2023 

Intouch Insight Ltd (OTC:INXSF) ($0.51; $11.6M market cap), a company that manages mobile software applications and software-as-a-service platforms announced a definitive agreement to acquire Mystery Researchers, LLC dba SeeLevel HX. 

“SeeLevel had calendar 2019 annual recurring revenues of US$5,048,485, gross margin of 39%, compared to Intouch historical margins of 52%, and the transaction is arm's length from Intouch. The purchase price for the Acquisition is a combination of cash and Intouch shares.  The purchase price is US$2,725,000 in cash of which, US$1,600,000 is payable at closing and US$1,125,000 is payable over the next two years based on achievement of revenue targets. The share component is the issuance of 1,500,000 Intouch common shares.  The common shares issued will have a statutory hold period of four months and one day from the date of issuance.  Intouch plans to finance the Acquisition with a five-year term bank loan for US$1,600,000, and from its existing cash resources.”

With current quarterly sales around $3.4 million, the $5 million in annual revenue would represent a strong contribution to the company’s topline. However, it is important to note that the disclosed financials of the acquired company are from 2019, which leads us to believe that revenues were negatively affected in 2020 due to COVID, as were INXSF’s.