One of the companies that could be worth tracking this morning is Intermap Technologies (OTCMKTS:ITMSF). The company is a worldwide leader in intelligence solutions and 3D geospatial products. On Monday, the company was in focus after it announced its preliminary results for the second fiscal quarter and also provided an update about a private placement offering.
In the period that ended on June 30, 2023, the company recorded revenues of $1.6 million, which was lower than the revenues of $2 million in the previous quarter and also lower than the $2.4 million generated in revenues in the prior-year quarter. In the half-year period that ended June 30, 2023, Intermap Technologies managed to generate positive cash flow to the tune of $80000 from its operating activities.
The company revealed that its performance in the quarter had been adversely affected due to delays in government contracts. However, the company noted that the contracts in question relate to work that is ongoing and expressed its confidence that it was going to continue in the second half of the year as well.
Additionally, Intermap also stated that some of those contracts would also grow considerably in the second half of 2023. The delays for the customers had been caused by repeat customers who had engaged the company on important programs that had been funded by domestic and foreign governments. The company revealed that its commercial business generated growth through new data and software subscriptions.
Solutions and software revenues went up to $1.1 million as compared to $0.8 million in the prior-year quarter. In the first half of the year, those revenues were $2.3 million, compared to $1.7 million in the prior-year quarter. The revenues generated through the European market went up 76% year over year.
The boost in the European business had mainly been driven by an expansion in its European insurance software and solutions through a range of licensed subscription agreements with nationally recognized insurance associations. In the news release, the company also revealed that as it went into the second half of the year, momentum remained strong. In that period, Intermap Technologies seeks to focus more on pending government contracts and certain commercial opportunities.
The company also announced that on August 10, it had completed the first tranche of a private placement consisting of 810,000 units. Each unit was made up of one Class A common share and one common share purchase warrant, which would be transferable. A warrant holder would be able to exchange it for one more share in the company for the exercise price of C$0.80 up until two years since the day of issuance.
The units had been priced at C$0.55 each, and Intermap managed to raise gross proceeds to the tune of C$445500. On August 14, the company announced that it was looking forward to completing a second tranche of the private placement under the same terms. The fresh capital is expected to boost the company’s balance sheet.