Spectra Inc. (SSA.V) Due Diligence Report Current Stock Price: $0.03 Common Shares: 60,509,971 Insider Holdings: 6,355,591 or 10.5% Institutional Holdings: 18,133,000 or 30% - DVOF Debenture Holder Key Notes For 2017: - March News: Director Michael Faye left saving the company $90,000 in expenses - DVOF interest of $187,500 extinguished (see March year end results) - New US customer signed with over 250 locations (see July MD&A) - Spectra Inc. total revenue, net income, asset/debt ratio at it’s best since inception - Q3 2017 Results will be released Mid-End of November - Specta Inc. CEO is paid on a commission structure rather than salary Revenue/Profit Over Last Four Years 2014 - $1,440,000 - $45,000 2015 - $1,820,000 - $189,000 2016 - $1,550,000 - $152,000 2017 - $901,000 - $134,000 (Only 6 months and before new US deal) Most Recent Financials + MD&A ASSETS Cash: $116,009 Accounts Receivable: $225,784 Inventory: $155,070 Prepaid Expenses: $13,494 Equipment: $4,145 Total Assets: $514,502 LIABILITIES Accounts Payable: $119,668 Loans Payable: $50,000 Royalty Debenture: $621,922 (owed to DVOF) Convertible Debenture: $658,141 (owed to DVOF, due August 2019) Total Liabilities: $1449,731 SSA Most Recent Quarter Breakdown Sales: $461,673 Gross Profit: $269,894 Net Income: $78,709 Additional Note: DVOF has worked with Spectra since 2004 and obviously does see value in the company going forward, especially over the last few years with growing sales and profitable quarters. The reason for their leniency is because DVOF knows there is a larger gain coming from share appreciation and sale down the road compared to making 6-7% interest on their debentures which is true. In the end, based on Spectra’s latest sales, they should be able to pay back DVOF their principal and give that fund a higher value for their shares. But in order for DVOF to sell, they will need to find one larger buyer or Spectra will need to sell itself to another company. MD&A Company Highlights About Spectra Inc: Spectra Inc., (the “Company”), through its wholly owned subsidiary, Spectra Products Inc., supplies products to the transportation industry. The current product line includes a visual brake stroke indicator, Brake Safe®, that permits vehicle drivers and maintenance personnel to visually determine the brake adjustment condition of a truck, trailer or bus equipped with an air activated brake system. The Company’s electronic version of Brake Safe® is an air brake diagnostic system called Brake Inspector®. This product provides an in-cab display of air brake status and permits diagnosis of various existing and potential brake problems with the foundation brakes of trucks, trailers and buses. The Company also supplies an anticorrosion lubricant called Termin-8r® to the transportation industry and Zafety Lug Lock® a product that prevents wheel-end lug nuts from loosening leading to wheel damage or wheel loss. The Company’s product includes Hub Alert® a heat sensitive label that is applied to each wheel hub of trucks, trailers, buses and off road vehicles to provide an early warning of critical temperature threshold levels where safety and maintenance issues may be pending. The Company introduced in the fourth quarter of 2014 a new product, the Arrow Logger™. This system is designed to work in conjunction with the Brake Safe® product by providing enhanced brake monitoring. The Company continues to focus its efforts on expanding the present market for its products while introducing those products into new markets as well as seeking out new products to complement our other offerings. The Company will continue to form strategic distribution alliances to accelerate its sales outside the Canadian marketplace. The Company recently signed a new distributor in the US that has over 250 locations and has access to a large fleet customer base. The Company is marginally exposed to foreign currency fluctuations as certain revenues and expenses derived from sales activities in the United States and China are denominated in U.S. dollars. As at June 30, 2017, the Company had $95,344 of net current assets denominated in U.S. dollars. The Company’s sensitivity to foreign currency fluctuations is such that a 10% strengthening or weakening of the U.S. dollar would result in an $9,534 decrease or increase, respectively, to the Company’s loss before income taxes for the six months ended June 30, 2017. Revenue for the six months ended June 30, 2017 increased by 4 percent to $900,406 compared to revenue of $864,617 for the six-month period ended June 30, 2016. The increase in revenue is attributable to increases in sales of Termin-8r® from $248,646 to $285,341; Hub Alert® from $13,686 to $18,005; and sundry income from $66,181 to $92,145; offset by decreases in sales of Brake Safe® from $398,013 to $390,324; Zafety Lug Lock® from $106,061 to $95,948; Brake Inspector® from $28,766 to $17,359 and Arrow Logger™ from $3,264 to $1,284.
Spectra Inc. Reports Third Quarter 2017 Results For Immediate Release – November 8, 2017 Toronto, Ontario – Spectra Inc. (SSA: TSX VENTURE) reports the release of its financial results for the first nine months of 2017. Revenues for the nine-month period ending September 30, 2017 were $1,332,592 compared to $1,206,651 for the same period in 2016. Revenues for the third quarter ending September 30, 2017 were $432,186 compared to $342,034 in 2016. The third quarter ended September 30, 2017 showed a net profit of $56,809 compared to a net profit of $16,360 for the third quarter ended September 30, 2016. During the nine-month period ended September 30, 2017, a net profit of $190,424 was achieved compared to a net profit of $94,115 for the nine-month period ended September 30, 2016. Spectra Inc., through its subsidiary, Spectra Products Inc., is the Toronto-based North American designer, manufacturer and distributor of Brake SafeÒ, the visual brake stroke indicating system, Brake InspectorÒ, the company’s electronic in-cab air brake diagnostic system and the Termin-8RÒ line of anti-corrosion and extreme pressure lubricants. Spectra manufacturers and distributes the new Arrow Logger™ brake stroke data logger that has been designed to enhance the performance of the Brake Safe® system. Spectra distributes Zafety Lug LockÒ, a lug nut retainer that uses the resistance between wheel nuts to minimize their ability to rotate and loosen, reducing the risk of wheel damage or wheel loss and Hub Alert™, an innovative heat sensing label that provides an alert for overheating wheel ends, reducing the risk of bearing failure and corresponding maintenance and repair costs. Except for the historical information contained herein, this news release contains forward looking statements that involve risks and uncertainties, including the impact of competitive products and pricing and general economic conditions as they affect the Corporation’s customers. Actual results and developments may therefore differ materially from those described in this release. On behalf of the Board of Directors, Glen Campbell, Chairman, Spectra Inc. Investor Relations: 1-800-308-5255 E-Mail: [email protected] Website: www.spectrainc.ca
Insiders bought almost 1% of the float today! https://app.tmxmoney.com/research/insidertradesummaries?locale=EN Insider Trade Summaries Last Updated: November 8, 2017 Top 10 Stocks By Net Buys Volume Symbol Company Name Insider Buys Volume Insider Sells Volume Net Buys Volume SSA Spectra Inc. 500,000 0 500,000 MOX Morien Resources Corp. 206,500 0 206,500 PGZ Pan Global Resources Inc. 79,500 0 79,500 PFC PetroFrontier Corp. 74,000 0 74,000 IQ AirIQ Inc. 53,000 0 53,000 RKR Rokmaster Resources Corp. 50,000 0 50,000 EMO Emerita Resources Corp. 47,000 0 47,000 MTU Manitou Gold Inc. 44,000 0 44,000 FLY FLYHT Aerospace Solutions Ltd. 37,300 0 37,300 WTR Westcore Energy Ltd. 33,500 0 33,500 Top 10 Stocks By Net Buys Value Symbol Company Name Insider Buys Value $ Insider Sells Value $ Net Buys Value $ MOX Morien Resources Corp. 128,030 0 128,030 FLY FLYHT Aerospace Solutions Ltd. 74,451 0 74,451 NVO Novo Resources Corp. 39,840 0 39,840 BCM Bear Creek Mining Corporation 26,720 0 26,720 PGZ Pan Global Resources Inc. 13,508 0 13,508 ORE Orezone Gold Corporation 13,000 0 13,000 SSA Spectra Inc. 12,500 0 12,500 RNP Royalty North Partners Ltd 11,844 0 11,844 IQ AirIQ Inc. 9,010 0 9,010 RUP Rupert Resources Ltd. 8,645 0 8,645
SSA.V - Spectra Inc. Q3 Results (Financials + MD&A) Ending September 30th 2017 Current Stock Price: $0.025 Common Shares: 60,509,971 Insider Holdings: 6,355,591 or 10.5% Institutional Holdings: 18,133,000 or 30% - DVOF Debenture Holder ASSETS Cash: $145,467 Accounts Receivable: $200,840 Inventories: $162,585 Prepaid Expenses: $17,862 Equipment: $2,072 Total Assets: $528,826 LIABILITIES Accounts Payable: $123,630 Royalty Debenture: $625,475 (Owed To DVOF) Convertible Debenture: $568,131 (Owed To DVOF, Due August 2019) Total Liabilities: $1,407,246 Sales By Region For 2017(Q1-Q3) Canada: $708,782 (Last Year - $793,476) China: $28,894 (Last Year - $0) United States: $594,916 (Last Year - $413,175) Total Sales: $1,332,592 (Last Year - $1,206,651) Revenue/Profit Over Last Four Years 2014 - $1,440,000 - $45,000 2015 - $1,820,000 - $189,000 2016 - $1,550,000 - $152,000 2017 - $1,333,000 - $191,000 (9 Months Only, Q4 Out In March 2018) In 2017, the Company derived 45% (2016 – 34%) of its revenue from sales to the United States and 2% of its sales from China (2016 – 0%). The Company’s equipment is located in Canada. In 2017, the Company derived sales from three customers amounting to 53% of the total sales revenue (2016 – three customers amounting to 38% of the total revenue). MD&A Highlights Capital Disclosures The Company’s capital structure is comprised of interest bearing debt, a royalty debenture and shareholders’ deficiency. There are no restrictions on the Company’s capital. In order to maintain and adjust its capital structure, the Company may issue share capital, issue new debt and refinance existing debt. Three months ended September 30, 2017 Revenue for the three months ended September 30, 2017 increased by 26 percent to $432,186 compared to revenue of $342,034 for the three-month period ended September 30, 2016. The increase in revenue is attributable to increases in sales of Termin-8r® from $121,566 to $138,882; Brake Safe® from $141,749 to $193,172; Zafety Lug Lock® from $36,156 to $63,035; and Hub Alert® from $4,788 to $5,248; offset by decreases in sales of Brake Inspector® from $8,843 to $2,244; Arrow Logger® from $888 to $361 and sundry income from $29,820 to $29,244. Nine months ended September 30, 2017 Revenue for the nine months ended September 30, 2017 increased by 10 percent to $1,332,592 compared to revenue of $1,206,651 for the nine-month period ended September 30, 2016. The increase in revenue is attributable to increases in sales of Termin-8r® from $370,212 to $424,223; Brake Safe® from $539,762 to $583,496; Zafety Lug Lock® from $142,217 to $158,983; Hub Alert® from $18,474 to $23,253; and sundry income from $96,001 to $121,389; offset by decreases in sales of Brake Inspector® from $37,609 to $19,603 and Arrow Logger® from $2,376 to $1,645. Gross Profit: Three months ended September 30, 2017 Gross profit increased by $11,822 for the three months ended September 30, 2017 to $224,690 or 52 percent of revenue from a comparable $212,868 or 62 percent of revenue for the three months ended September 30, 2016. OUTLOOK The Company continues to focus its efforts on expanding the present market for its products while introducing those products into new markets. As well the Company is seeking out new product to complement other wheel end safety products, Brake Safe®, Hub Alert® and Zafety Lug Lock® Spectra Products Inc. is the only company in North America that provides one stop shopping for wheel end safety products in the transportation industry. Brake Safe® addresses the number one out of service violation in North America during road side inspections being brakes out of adjustment. Zafety Lug Lock® and Hub Alert® address the very serious wheel off situation of trucks and trailer losing a wheel and impacting another vehicle causing major damage or potentially causing fatalities. The Company’s Brake Safe® product is well established in the Canadian market and as previously reported Spectra Products Inc. is executing its strategy to expand its Brake Safe® visual brake stroke indicator and diagnostic tool into the lucrative U.S. Transportation Industry. The brake violation issues are receiving a tremendous amount of attention from U.S. media as well as increased enforcement resulting in vehicles being put out of service and affecting Fleet safety records. This growing awareness is having a very positive impact on sales of Brake Safe® in the U.S. market. The Company’s Termin-8r®product continues to receive strong industry acceptance with a corresponding growth in sales to the transportation segment. The second private label arrangement, introduced in 2010 for a major supplier to the commercial transport industry, is proving to be a strong performer with 2017 private label sales, by dollar amount, now being 81% of total Termin-8r®product sales compared to 71% of total sales during the same period in 2016.
This one looks interesting. What is your target price? My concern is that the latest product that was developed was a few years ago, now it is all about sales and business development.
SSA reminds me of CTZ from back in 2014. Wish we still had that thread from the HSM days, but now it's gone. Anyway, I believe that DVOF will wait as long as needed until SSA pays them back, then sell their position for a premium in the company. Depends on how long your willing to wait. These estimates of mine are based on current sales which range in profit from $60-100K and could change drastically if the company adds new customers or new products to sell. 12 Month Target - I see SSA adding another $250-350K in net income by this time next year, roughly half a cent earning, I give it a multiple of 15, so 7-8 cents(minimum) 18 Month Target - I see SSA adding $500-700K in net income. This would be used to clean up that debenture which is due August 2019. However, this could get extended again which changes everything. Minimum price of $0.10 but likely higher 24 Month Target - SSA has either paid off the one debenture or it's been extended to preserve their cash position. It's always possible that a private placement could be done to cover the rest, as stated in the MD&A(seeking additional financing). But I would think in a couple years, based on current sales and possible new sales, stock could trading in the $0.18-0.20 range. So could it trade in the $0.20-0.25 range by end of 2019, early 2020? Yes that's possible. Seems like a long time, but roughly a 10 bagger for that time period is very impressive. A stock I think you can buy now, sell half or three quarters of it off in a year or a little more, leave a few shares to ride for the long term. This is all about sales like you pointed out and management has told me that even if sales were to triple, costs would remain the same. SSA does between $400-500K each quarter, so if that even went up 25%, it would make a huge impact. Also keep in mind that Michael Faye is still part time, when he leaves end of 2017, SSA saves $100K extra every year going forward.
First time I've come across this document. It tells you all about DVOF and all their holdings. Spectra makes up 2.3% of their fund and they own common shares, debentures and preferred shares in both the holding company and subsidiary. This means that DVOF is very intertwined with Spectra Inc and must see it workout for the sake of their investors. http://docmgt.dynamic.ca/documentdownload/getdocument/606 Page 8, 10, 11, 13 has information on Spectra. DVOF slightly increased their position in the subsidiary year over year.
Director Glen Campbell was the buyer of the 500,000 shares at $0.025. https://www.canadianinsider.com/company?menu_tickersearch=SSA | Spectra Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction Volume or Value Price Nov 10/17 Nov 8/17 Campbell, Glen Direct Ownership Common Shares 10 - Acquisition in the public market 500,000 $0.025
SSA Level 2 7 / 936,000 0.015 0.02 198,000 / 1 6 / 804,000 0.01 0.025 619,000 / 6 7 / 2,961,000 0.005 0.03 613,000 / 6 ---------------------- -- 0.035 220,000 / 5 ------------------------ -- 0.04 215,000 / 6 ----------------------- -- 0.045 156,000 / 6 ------------------------ -- 0.05 92,000 / 5 -- --------------------- -- 0.07 57,000 / 2 ---------------------- -- 0.095 22,000 / 1 ------------------------ -- 0.10 25,000 / 1
Spectra CFO acquires SPI debenture, preferred shares 2017-12-20 12:58 MT - News Release Mr. Andrew Malion reports SPECTRA INC. ANNOUNCES CFO PURCHASES CONVERTIBLE PREFERRED SHARES AND DEBENTURE OF SPECTRA PRODUCTS INC. CABE Financial Corp. has acquired the royalty debenture and convertible preferred shares held by Dynamic Venture Opportunities Fund in Spectra Inc.'s partially owned subsidiary company, Spectra Products Inc. (SPI), as well as 1,315 common shares in SPI also owned by Dynamic Venture Opportunities Fund. The president, and a shareholder, of CABE is Glen Campbell, a director, chief financial officer and chairman of both Spectra and SPI. CABE has also agreed, after completion of the transaction, to amend the terms of the convertible preferred shares to waive the right of CABE to convert such convertible preferred shares to 1,000 common shares of SPI. This waiver ensures Spectra's 67.73-per-cent ownership percentage in SPI will not be reduced in the future as a result of the conversion right previously attached to convertible preferred shares. CABE further agreed, after completion of the transaction, to extend the date upon which the convertible preferred shares could be called for redemption. Currently, this date is May 31, 2018. The retraction privileges will now be amended to a series of dates extending into 2020. These extended retraction dates will allow SPI to better manage its cash flow to enable it to meet these new redemption dates. The transfer of ownership to CABE of the 1,315 common shares in SPI, the royalty debenture and the convertible preferred shares was approved by the board of directors of both Spectra and SPI. Spectra, through its subsidiary, SPI, is the Toronto-based North American designer, manufacturer and distributor of Brake Safe, the visual brake stroke indicating system; Brake Inspector, the company's electronic in-cab air brake diagnostic system; and the Termin-8R line of anti-corrosion and extreme pressure lubricants. © 2017 Canjex Publishing Ltd. All rights reserved.
Toronto, Ontario – Spectra Inc. (SSA: TSX VENTURE) reports the release of its financial results for the twelve-month period ending December 31, 2017. Revenues for the twelve-month period ending December 31, 2017 were $1,780,609 compared to $1,549,112 for the same period in 2016. Revenues for the fourth quarter ending December 31, 2017 were $448,017 compared to $342,461 in 2016. Net income was $222,810 during the twelve-month period ending December 31, 2017 compared to $151,912 for the same period in 2016. Spectra Inc., through its subsidiary, Spectra Products Inc., is the Toronto-based North American designer, manufacturer and distributor of Brake SafeÒ, the visual brake stroke indicating system, Brake InspectorÒ, the company’s electronic in-cab air brake diagnostic system and the Termin-8RÒ line of anti-corrosion and extreme pressure lubricants. Spectra manufacturers and distributes the new Arrow LoggerÒ brake stroke data logger that has been designed to enhance the performance of the Brake Safe® system. Spectra distributes Zafety Lug LockÒ, a lug nut retainer that uses the resistance between wheel nuts to minimize their ability to rotate and loosen, reducing the risk of wheel damage or wheel loss and Hub AlertÒ, an innovative heat sensing label that provides an alert for overheating wheel ends, reducing the risk of bearing failure and corresponding maintenance and repair costs. Except for the historical information contained herein, this news release contains forward looking statements that involve risks and uncertainties, including the impact of competitive products and pricing and general economic conditions as they affect the Corporation’s customers. Actual results and developments may therefore differ materially from those described in this release. On behalf of the Board of Directors, Glen Campbell, Chairman, Spectra Inc. Investor Relations: 1-800-308-5255 E-Mail: [email protected] Website: www.spectrainc.ca
SSA.V - Spectra Inc. Year End Results (Financials + MD&A) Ending December 31st 2017 Note – Q1 2018 results will be released in the next 2-3 weeks with a more accurate picture of financials. This is due to Michael Faye leaving end of 2017(large expense gone) and Glen Campbell taking debt from DVOF to help reduce payments and extend deadline to 2020(Announced December 2017). Current Stock Price: $0.03 Common Shares: 60,509,971 Insider Holdings: 6,855,591 or 11.3% Institutional Holdings: 18,133,000 or 30% - DVOF Debenture Holder ASSETS Cash: $54,811 Accounts Receivable: $244,200 Inventories: $175,883 Prepaid Expenses: $4,737 Total Assets: $479,631 (2016 - $417,393) LIABILITIES Accounts Payable: $140,207 Royalty Debenture: $629,028 Preferred Shares: $556,430 Total Liabilities: $1,325,665 (2016 - $1,486,237) Performance Sales: $1,780,609 (2016 - $1,549,11) Cost of sales: $762,500 Gross Profit: $1,018,109 Debt Extinguishment: $30,423 G&A Expenses: $825,722 Net Income: $222,810 (2016 - $151,912) MD&A Highlights From Year End Results Cash Flow Earned In Operations (Page 4) 2014 - $107,922 2015 - $81,815 2016 - $188,897 2017 - $275,065 Revenue Twelve months ended December 31, 2017 Revenue for the twelve months ended December 31, 2017 increased by 15 percent to $1,780,609 compared to revenue of $1,549,112 for the twelve months ended December 31, 2017. The increase in revenue is attributable to increased sales of all major product lines. Net income Year ended December 31, 2017 The net income for the year ended December 31, 2017 was $222,810 or $0.00 per share basic and fully diluted compared to net income of $151,912 or $0.00 per share basic and fully diluted for the year ended December 31, 2016. Liquidity and Cash Flow Twelve months ended December 31, 2017 For the twelve months ended December 31, 2017, the Company earned $275,065 in operating activities compared to earning $188,897 in 2016. Non-cash items during the twelve months contributed $75,812 compared to $100,726 in 2016. $150,000 was repaid on loans payable during the year and $150,000 of preferred shares were repurchased for cancellation. These all resulted in a net decrease in cash resources of $24,935 and a cash resources balance at the end of the period of $54,811. During the equivalent twelvemonth period in 2016 the Company showed a net increase in cash resources of $35,897 and a cash resources balance at the end of the year of $79,746 The Company‘s current cash and cash equivalents are expected to meet the anticipated need for ongoing expenses, working capital and capital expenditures. In the event the Company’s cash and cash equivalents are insufficient, the Company may seek additional financing as required to provide working capital, inventory and capital equipment necessary to implement its business plan. Management believes that the strong functional and competitive capabilities of its Brake Safe®, Brake Inspector®, Termin-8r® Zafety Lug Lock®, Hub Alert® and Arrow Logger™ product lines will improve the Company’s long-term profitability. OUTLOOK The Company continues to focus its efforts on expanding the present market for its products while introducing those products into new markets as well as seeking out new products to compliment our other offerings. The Company’s Brake Safe® product is well established in the Canadian market and inroads are now being made into the lucrative American market. With the implementation of its new, aggressive, safety enforcement and monitoring program, CSA (Compliance, Safety, Accountability), the Federal Motor Carrier Safety Administration is bringing the focus onto unsafe Carriers and unsafe Drivers in the US transportation industry. A significant increase in roadside enforcement, citations and fines for all driver and vehicle violations will impact positively on the sales growth of Brake Safe® products. A program has been developed to educate companies of these enforcement changes and the resulting increased intervention by regulatory agencies in order to capitalize on sales opportunities for Brake Safe®. The Company’s Termin-8R® product continues to receive strong industry acceptance with a corresponding growth in sales to the transportation segment. The second private label arrangement, introduced in 2010 and made for a major supplier to the commercial transport industry, is proving to be a strong performer with 2017 private label sales, by dollar amount, now being 80% of total Termin-8R® product sales and 27% more than that of the previous year. The company believes that developing new private label arrangements will be a key to the ongoing growth in the sales of this product. The Company will continue to form strategic distribution alliances to accelerate its sales outside the Canadian marketplace. The Company may seek sufficient additional funds to provide working capital, inventory and capital equipment as needs arise, but at the moment, cash flow from operations is sufficient to support current needs.
Spectra Inc. Reports First Quarter 2018 Results For Immediate Release – April 25, 2018 Toronto, Ontario – Spectra Inc. (SSA: TSX VENTURE) reports the release of its financial results for the three-month period ending March 31, 2018. Revenues for the three-month period ending March 31, 2018 were $572,009 compared to $438,733 for the same period in 2017. Net income was $149,776 during the three-month period ending March 31, 2018 compared to $54,906 for the same period in 2017. Spectra Inc., through its subsidiary, Spectra Products Inc., is the Toronto-based North American designer, manufacturer and distributor of Brake SafeÒ, the visual brake stroke indicating system, Brake InspectorÒ, the company’s electronic in-cab air brake diagnostic system and the Termin-8RÒ line of anti-corrosion and extreme pressure lubricants. Spectra manufacturers and distributes the new Arrow LoggerÒ brake stroke data logger that has been designed to enhance the performance of the Brake Safe® system. Spectra distributes Zafety Lug LockÒ, a lug nut retainer that uses the resistance between wheel nuts to minimize their ability to rotate and loosen, reducing the risk of wheel damage or wheel loss and Hub AlertÒ, an innovative heat sensing label that provides an alert for overheating wheel ends, reducing the risk of bearing failure and corresponding maintenance and repair costs. Except for the historical information contained herein, this news release contains forward looking statements that involve risks and uncertainties, including the impact of competitive products and pricing and general economic conditions as they affect the Corporation’s customers. Actual results and developments may therefore differ materially from those described in this release. On behalf of the Board of Directors, Glen Campbell, Chairman, Spectra Inc. Investor Relations: 1-800-308-5255 E-Mail: [email protected] Website: www.spectrainc.ca
SSA.V - Spectra Inc. Q1 2018 Results (Financials + MD&A) Ending March 31st 2018. Current Stock Price: $0.035 Common Shares: 60,509,971 Insider Holdings: 6,855,591 or 11.3% Institutional Holdings: 18,133,000 or 30% - DVOF Debenture Holder Financials ASSETS Cash: $166,650 Accounts Receivable: $318,559 Inventories: $194,230 Prepaid Expenses: $4,737 Total Assets: $684,176 LIABILITIES Accounts Payable: $184,993 Royalty Debenture: $632,665 – Due In 2020 Preferred Shares: $562,775 Total Liabilities: $1,380,434 Q1 2018 Results Revenue: $572,009 Gross Profit: $334,385 G&A Expense: $184,609 Net Income: $149,776 Prior Years 2014 – Total Sales: $1.44M – Net Income - $45K 2015 – Total Sales: $1.82M – Net Income - $189K 2016 – Total Sales: $1.55M – Net Income - $152K 2017 – Total Sales: $1.78M – Net Income - $223K 2018 – Total Sales: $572K – Net Income - $150K Cost reductions and increased sales due to new contracts have made the first quarter of 2018 very strong and should continue. Over a dozen profitable quarters in a row means the cost structure is consistent and stable. MD&A Highlights Revenue for the three months ended March 31, 2018 increased by 30 percent to $572,009 compared to revenue of $438,733 for the three-month period ended March 31, 2017. Brake Safe® had sales of $227,738 in 2018, compared to $165,635 in 2017; Brake Inspector® had sales of $5,565 in 2018, compared to $15,053 in 2017; Termin-8r® sales increased by $39,794 from $157,766 in the 2017 period to $197,560 in 2018; Zafety Lug Lock® had sales in 2018 of $51,355 compared to $50,327 in 2017 and Hub Alert® had 2018 sales of $25,200 compared to $10,755 in 2017. Gross profit increased by 31% for the three months ended March 31, 2018 to $334,385 or 58 percent of revenue from a comparable $254,713 or 58 percent of revenue for the three months ended March 31, 2017. For the quarter ended March 31, 2018, finance costs were $18,984, $11,584 higher than the comparable costs of $7,400 for the quarter ended March 31, 2017. The net income for the three months ended March 31, 2018 was $149,776 or $0.00 per share basic and fully diluted compared to net income of $54,906 or $0.00 per share basic and fully diluted for the three months ended March 31, 2017. Outlook The Company continues to focus its efforts on expanding the present market for its products while introducing those products into new markets as well as seeking out new products to compliment our other offerings. The Company’s Brake Safe® product is well established in the Canadian market and inroads are now being made into the lucrative American market. With the implementation of its new, aggressive, safety enforcement and monitoring program, CSA (Compliance, Safety, Accountability), the Federal Motor Carrier Safety Administration is bringing the focus onto unsafe Carriers and unsafe Drivers in the US transportation industry. A significant increase in roadside enforcement, citations and fines for all driver and vehicle violations will impact positively on the sales growth of Brake Safe® products. A program has been developed to educate companies of these enforcement changes and the resulting increased intervention by regulatory agencies in order to capitalize on sales opportunities for Brake Safe The Company’s Termin-8R® product continues to receive strong industry acceptance with a corresponding growth in sales to the transportation segment. The second private label arrangement, introduced in 2010 and made for a major supplier to the commercial transport industry, is proving to be a strong performer with 2018 private label sales, by dollar amount, now being 83% of total Termin-8R® product sales and 29% more than that of the previous year. The company believes that developing new private label arrangements will be a key to the ongoing growth in the sales of this product. The Company will continue to form strategic distribution alliances to accelerate its sales outside the Canadian marketplace. The Company may seek sufficient additional funds to provide working capital, inventory and capital equipment as needs arise, but at the moment, cash flow from operations is sufficient to support current needs.
News: SSA Appoints New Chairman & Subsidiary Director 2019-01-22 07:20 MT - News Release Mr. Glen Campbell reports SPECTRA INC. REPORTS APPOINTMENT OF NEW CHAIRMAN AND SPECTRA PRODUCTS INC. REPORTS ELECTION OF A NEW DIRECTOR. At a meeting of the board of directors on Jan. 7, 2019, Glen Campbell was appointed as chairman of the board of Spectra Inc. Mr. Campbell had previously held this position, resigning on October 24, 2018, when he was replaced by Mr. Andrew Malion. Also, on January 7, 2019, Mr. Mark Donatelli was elected to the Board of Directors of Spectra Products Inc., a subsidiary of Spectra Inc., replacing Mr. Andrew Malion. Mr. Donatelli is Vice-President at B.E.S.T. Funds. B.E.S.T. Funds represents the largest shareholder of Spectra Inc. and is a welcome addition to the Board. Mr. Malion continues in his roles as a Director of Spectra Inc. and as President of both Spectra Inc. and Spectra Products Inc. Spectra Inc., through its subsidiary, Spectra Products Inc., is the Toronto-based North American designer, manufacturer and distributor of Brake SafeO, the visual brake stroke indicating system, Brake InspectorO, the company's electronic in-cab air brake diagnostic system and the Termin-8RO line of anti-corrosion and extreme pressure lubricants. Spectra Products Inc. distributes Zafety Lug LockO, a lug nut retainer that uses the resistance between wheel nuts to minimize their ability to rotate and loosen, reducing the risk of wheel damage or wheel loss and Hub AlertTM, an innovative heat sensing label that provides an alert for overheating wheel ends, reducing the risk of bearing failure and corresponding maintenance and repair costs. We seek Safe Harbor. © 2019 Canjex Publishing Ltd. All rights reserved.
Spectra Inc. Reports Third Quarter 2018 Results For Immediate Release – October 29, 2018 Toronto, Ontario – Spectra Inc. (SSA: TSX VENTURE) reports the release of its financial results for the first nine months of 2018. Revenues for the nine-month period ending September 30, 2018 were $1,601,377 compared to $1,332,592 for the same period in 2017, an increase of 20.17 percent. Revenues for the third quarter ending September 30, 2018 were $559,181 compared to $432,186 in 2017, an increase of 29.38 percent. The third quarter ending September 30, 2018 showed a net profit of $145,065 compared to a net profit of $56,809 for the third quarter ended September 30, 2017. During the nine-month period ending September 30, 2018, a net profit of $386,936 was generated compared to a net profit of $190,424 for the nine-month period in 2017. Cash generated by operations in the nine-month period ending September 30, 2018 was $423,643 compared to the comparable amount of $215,721 in the nine-month period ended September 30, 2017; an increase of 96.38%. Spectra Inc., through its subsidiary, Spectra Products Inc., is the Toronto-based North American designer, manufacturer and distributor of Brake SafeÒ, the visual brake stroke indicating system, Brake InspectorÒ, the company’s electronic in-cab air brake diagnostic system and the Termin-8RÒ line of anti-corrosion and extreme pressure lubricants. Spectra manufacturers and distributes the new Arrow Logger™ brake stroke data logger that has been designed to enhance the performance of the Brake Safe® system. Spectra distributes Zafety Lug LockÒ, a lug nut retainer that uses the resistance between wheel nuts to minimize their ability to rotate and loosen, reducing the risk of wheel damage or wheel loss and Hub Alert™, an innovative heat sensing label that provides an alert for overheating wheel ends, reducing the risk of bearing failure and corresponding maintenance and repair costs. Except for the historical information contained herein, this news release contains forward looking statements that involve risks and uncertainties, including the impact of competitive products and pricing and general economic conditions as they affect the Corporation’s customers. Actual results and developments may therefore differ materially from those described in this release. On behalf of the Board of Directors, Andrew Malion, Chairman, Spectra Inc. Investor Relations: 1-800-308-5255 E-Mail: [email protected] Website: www.spectrainc.ca
http://bestfunds.ca/ - This is the largest shareholder of Spectra, who is now part of the subsidiary board of directors. About BESTFUNDS: About Founded by John Richardson in 1996, we are a boutique Canadian venture firm with a track record spanning over 22 years. Since our inception, we have been involved with over 350 transactions, and we are proud of the portfolios we’ve built and of the achievements of our portfolio companies past and present. We are actively seeking to build on our track-record by continuing to identify tomorrow’s winning companies. Our Focus We invest across a broad range of sectors including cleantech and financial services. However, our focus is on emerging companies engaged in software, cloud computing, and SaaS business models. We provide growth capital to companies that are seeking to expand on the market penetration of their unique and compelling intellectual property. We invest in equity and debt securities, but our main focus is on providing loans to growing companies. Our capital allows our clients to achieve the milestones they need to in order to drive the value of their business while minimizing dilution and leaving ultimate control in the hands of the entrepreneur. It is our aim to help budding businesses successfully transition into public companies or to position them for a strategic sale. It is this process that creates liquidity for B.E.S.T. Funds and maximizes value for our shareholders and investors. Accredited Investor Funds B.E.S.T. Funds offers high-yield private placement opportunities for accredited investors seeking access to Canada’s most promising private companies in the software, cloud computing, financial services and clean tech fields.
Spectra Inc. (SSA.V) Nine Month Results. All Information Available On SEDAR Ticker Symbol: SSA.V Current Price: $0.03 Common Shares: 60,509,971 Insider Holdings: 8.61% - All held by CEO Institutional Holdings: 30% (Dynamic Venture Opportunities Fund) Spectra Inc. has recorded 16 straight quarters of profits, with revenue increasing year over year Most Recent Financial Statements (September 2018) *Note* - Year End Will be out in March 2019, followed by Q1 2019 results in April ASSETS Cash: $353,454 Accounts Receivable: $291,734 Inventories: $196,269 Prepaid Expenses: 4,737 Total Assets: $846,194 LIABILITIES Accounts Payable : $214,884 Royalty Debenture: $639,940 Preferred Shares: $450,468 Total Liabilities: $1,305,292 9 Month Sales Revenue: $1,601,377 Cost Of Sales: $672,497 Gross Profit: $928,880 Total G&A Expenses: $541,944 Net Income: $386,936 or $0.0064 cents per share. Fair value at 10 times earnings is 6 cents Management Discussion Highlights The Company continues to focus its efforts on expanding the present market for its products while introducing those products into new markets as well as seeking out new products to complement our current wheel end safety offerings. The Company’s Signature Brake Safe® product is well established in the Canadian market and is gaining sales momentum in the lucrative American market. The Commercial Vehicle Safety Alliance [CVSA] is a nonprofit association comprised of local, state, provincial, territorial and federal commercial motor vehicle safety officials and industry representatives. The CVSA holds brake-focused enforcement events throughout the year to identify and remove commercial vehicles with dangerous brake issues from the roadways. Brakes out of adjustment continue to be the number ONE out service violation in North America as evidenced this year during International Roadcheck and Operation Air Brake. A program has been developed to educate companies of these enforcement changes and the resulting increased intervention by regulatory agencies in order to capitalize on sales opportunities for Brake Safe. The Company’s Termin-8R® product continues to receive strong industry acceptance with a corresponding growth in sales to the transportation segment. The private label arrangement made for a leading supplier to the commercial transport industry is proving to be an excellent performer. The Company will continue to form strategic distribution alliances in the United Sates to accelerate its wheel end safety product sales outside the Canadian marketplace. The Company may seek sufficient additional funds to provide working capital, inventory and capital equipment as needs arise, but at the moment, cash flow from operations is sufficient to support current needs The Company’s authorized share capital consists of an unlimited number of common shares; an unlimited amount of first, second, third and fourth preferred shares and 540,000 second preferred shares, Series 1. As at September 30, 2018, there were 60,509,971 outstanding common shares. As at September 30, 2018, the following is a description of the outstanding equity securities and convertible securities previously issued by the Company During the nine months ended September 30, 2018, the Company earned $423,643 in operating activities compared to earning $215,721 from operations during the same period in 2017. In 2018 non-cash items contributed $29,950 for the period compared to $15,035 for the nine months ended September 30, 2017. The Company made preference share redemptions of $125,000 in the nine months ended September 30, 2018, compared to making loan repayments of $150,000 in the nine months ended September 30, 2017. These resulted in a net increase in cash resources of $298,643 and a cash resources balance at the end of the period of $353,454. During the equivalent period in 2017, the Company showed a net increase in cash resources of $65,721 and a cash resources balance of $145,467 at the end of the period. Revenue: Three months ended September 30, 2018 Revenue for the three months ended September 30, 2018 increased by 29 percent to $559,181 compared to revenue of $432,186 for the three-month period ended September 30, 2017. The increase in revenue is attributable to increases in sales of Termin-8r® from $138,882 to $163,013; Brake Safe® from $193,172 to $264,152; Brake Inspector® from $2,244 to $6,899; Hub Alert® from $5,248 to $6,700 and sundry income from $29,244 to $60,228 offset by decreases in sales of Zafety Lug Lock® from $63,035 to $57,920 and Arrow Logger® from $361 to $269. Nine months ended September 30, 2018 Revenue for the nine months ended September 30, 2018 increased by 20 percent to $1,601,377 compared to revenue of $1,332,592 for the nine-month period ended September 30, 2017. The increase in revenue is attributable to increases in sales of Termin-8r® from $424,223 to $450,460; Brake Safe® from $583,496 to $756,570; Brake Inspector® from $19,603 to $21,975; Zafety Lug Lock® from $158,983 to $171,274; Hub Alert® from $23,253 to $35,725 and sundry income from $121,389 to $164,117 offset by decreases in sales of Arrow Logger® from $1,645 to $1,256. Gross Profit: Three months ended September 30, 2018 Gross profit increased by $99,298 for the three months ended September 30, 2018 to $323,988 or 58 percent of revenue from a comparable $224,690 or 52 percent of revenue for the three months ended September 30, 2017. Nine months ended September 30, 2018 Gross profit increased by 24% for the nine months ended September 30, 2018 to $928,880 or 58 percent of revenue from a comparable $749,297 or 56 percent of revenue for the nine months ended September 30, 2017. Gross profit margins will vary depending on the mix of product sales within the various product lines. In addition, the mix of distribution channels may affect margins when sales are generated through distributors, dealers and direct sales to OEM’s.
Spectra Inc. Reports Appointment of a New Director for its subsidiary, Spectra Products Inc. For Immediate Release – April 11, 2019 Toronto, Ontario – Spectra Inc. (SSA: TSX VENTURE) reports that Mr. Mark Donatelli, elected to the Board of Directors of Spectra Products Inc., a subsidiary of Spectra Inc. on January 7, 2019 has resigned from that Board. Mr. Andrew Malion a Director of Spectra Inc. and President of both Spectra Inc. and Spectra Products Inc. and previously a Director of Spectra Products Inc. has been appointed to fill the vacancy on the Board of Spectra Products Inc. created by Mr. Donatelli’s resignation. Spectra Inc., through its subsidiary, Spectra Products Inc., is the Toronto-based North American designer, manufacturer and distributor of Brake SafeÒ, the visual brake stroke indicating system, Brake InspectorÒ, the company’s electronic in-cab air brake diagnostic system and the Termin-8RÒ line of anti-corrosion and extreme pressure lubricants. Spectra Products Inc. distributes Zafety Lug LockÒ, a lug nut retainer that uses the resistance between wheel nuts to minimize their ability to rotate and loosen, reducing the risk of wheel damage or wheel loss and Hub Alert™, an innovative heat sensing label that provides an alert for overheating wheel ends, reducing the risk of bearing failure and corresponding maintenance and repair costs. Except for the historical information contained herein, this news release contains forward looking statements that involve risks and uncertainties, including the impact of competitive products and pricing and general economic conditions as they affect the Corporation’s customers. Actual results and developments may therefore differ materially from those described in this release. On behalf of the Board of Directors, Glen Campbell, Chairman, Spectra Inc. Investor Relations: 1-800-308-5255 E-Mail: [email protected] Website: www.spectrainc.ca
