Kneat Announces Record Revenue for Second Quarter 2025

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Katie Keita, Kneat Investor Relations
P: + 1-902-450-2660
E: [email protected]

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Unaudited Condensed Interim Consolidated Statements of Income/(Loss) and Comprehensive Loss
	Three-month period ended June 30, 2025		Three-month period ended June 30, 2024		Six-month period ended June 30, 2025		Six-month period ended June 30, 2024
	$		$		$		$
Revenue	15,405,109		11,675,734		30,152,750		22,442,735

Cost of revenue	(3,777,809	)	(2,982,094	)	(7,600,954	)	(5,816,109	)

Gross profit	11,627,300		8,693,640		22,551,796		16,626,626

Expenses
Research and development	(5,702,497	)	(4,761,889	)	(10,401,162	)	(8,807,437	)
Sales and marketing	(6,129,942	)	(4,368,485	)	(11,246,419	)	(8,400,169	)
General and administrative	(3,792,405	)	(2,194,999	)	(6,304,034	)	(4,300,588	)

Operating loss	(3,997,544	)	(2,631,733	)	(5,399,819	)	(4,881,568	)

Finance expense	(877,545	)	(870,905	)	(1,766,090	)	(1,738,356	)
Interest income	151,053		172,999		349,692		208,075
Foreign exchange gain	4,429,193		258,049		8,691,793		19,286

(Loss) income before income taxes	(294,843	)	(3,071,590	)	1,875,576		(6,392,563	)
Income tax expense	(84,299	)	(28,553	)	(108,729	)	(44,440	)

Net (loss) income for the period	(379,142	)	(3,100,143	)	1,766,847		(6,437,003	)

Other comprehensive loss
Foreign currency translation adjustment to presentation currency	(1,833,771	)	(234,170	)	(3,832,292	)	(43,276	)

Comprehensive loss for the period	(2,212,913	)	(3,334,313	)	(2,065,445	)	(6,480,279	)

(Loss)/Earnings per share – Basic and diluted	(0.00	)	(0.04	)	0.02		(0.08	)

Weighted-average number of common shares outstanding:
Basic	94,728,598		85,581,420		94,469,559		83,293,224
Diluted	94,728,598		85,581,420		97,985,267		83,293,224

Reconciliation:
Net (loss) income for the period	(379,142	)	(3,100,143	)	1,766,847		(6,437,003	)
Finance expense	877,545		870,905		1,766,090		1,738,356
Interest income	(151,053	)	(172,999	)	(349,692	)	(208,075	)
Income tax expense	84,299		28,553		108,729		44,440
Depreciation charge	181,718		190,394		358,719		381,615
Amortization of intangible assets charge	3,155,635		2,688,851		6,002,381		4,523,062
EBITDA	3,769,002		505,561		9,653,074		42,395

Adjustments to EBITDA
Foreign exchange gain	(4,429,193	)	(258,049	)	(8,691,793	)	(19,286	)
Stock based compensation	1,090,175		1,338,990		1,787,193		2,151,163
Adjusted EBITDA	429,984		1,586,502		2,748,474		2,174,272

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kneat.com, inc. Unaudited Condensed Interim Consolidated Statements of Financial Position
	June 30, 2025	December 31, 2024
	$	$
Assets

Current assets
Cash	66,771,997	58,889,572
Amounts receivable	11,176,423	18,377,009
Prepayments	1,861,908	1,870,095

	79,810,328	79,136,676
Non-current assets
Amounts receivable	4,798,361	2,368,006
Property and equipment	8,057,345	6,782,179
Intangible asset	41,999,419	36,290,869

Total Assets	134,665,453	124,577,730

Liabilities

Current liabilities
Accounts payable and accrued liabilities	11,071,328	8,580,104
Contract liabilities	26,550,906	21,631,416
Loan payable	6,012,075	4,116,723
Lease liabilities	401,739	434,096

	44,036,048	34,762,339
Non-current liabilities
Contract liabilities	3,063	33,393
Loan payable and accrued interest	17,338,181	19,038,203
Lease liabilities	6,911,364	5,671,952

Total Liabilities	68,288,656	59,505,887

Equity
Shareholders’ equity	66,376,797	65,071,843

Total Liabilities and Equity	134,665,453	124,577,730

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kneat.com, inc. Unaudited Condensed Interim Consolidated Statement of Cash Flows
	Six-month period ended June 30, 2025		Six-month period ended June 30, 2024
Operating activities	$		$
Net income (loss) for the period	1,766,847		(6,437,003	)
Charges to income (loss) not involving cash:
Depreciation of property and equipment	358,719		381,615
Share-based compensation	1,787,193		2,151,163
Interest expense	1,672,870		1,738,356
Tax expense	108,729		44,440
Amortization of the intangible asset	6,002,381		4,523,062
Amortization of loan issuance costs	93,220		76,194
Foreign exchange gain	(8,691,793	)	(19,286	)
(Decrease)/increase in non-current contract liabilities	(31,359	)	38,241
Net change in non-cash operating working capital related to operations	12,481,190		7,533,596
Net cash provided by operating activities	15,547,997		10,030,378

Financing activities
Proceeds received from public equity financing	–		20,000,110
Share issuance costs associated with public equity financing	–		(1,626,257	)
Payment of principal and interest on loans payable	(3,154,648	)	(1,232,889	)
Proceeds from the exercise of stock options	989,061		1,051,787
Repayment of lease liabilities	(394,650	)	(364,423	)
Net cash (used in)/provided by financing activities	(2,560,237	)	17,828,328

Investing activities
Additions to the intangible asset	(10,599,886	)	(9,675,371	)
Additions to property and equipment	(96,462	)	(50,397	)
Collection of research and development tax credits	1,887,789		2,336,619
Net cash used in investing activities	(8,808,559	)	(7,389,149	)

Effects of exchange rates on cash	3,703,224		170,762

Net change in cash during the period	7,882,425		20,640,319

Cash – Beginning of period	58,889,572		15,252,526

Cash – End of period	66,771,997		35,892,845