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CE Brands Reports Third Quarter 2023 Financial Results and


CALGARY, Alberta, March 01, 2023 (GLOBE NEWSWIRE) — CE Brands Inc. (TSXV: CEBI; CEBI.WT) (“CE Brands”, “we”, “our”, or the “Company”), a data-driven consumer-electronics company, today announced its financial results for the three and nine-month period ended December 31, 2022 (“Q3 2023”) ⁽¹⁾. The related condensed interim consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) for Q3 2023 are available on SEDAR at and on CE Brands’ website at

Q3 2023 Highlights (Compared to Q2 2022)

  • Total revenue of approximately $1.49 million in the three-month period ending December 31, 2022, which is on similar lines with approximately $1.49 million in the prior year as well.
  • Gross loss of approximately $2.79 million in the three-month period ending December 31, 2022, from a gross profit of approximately $0.26 million in the prior year, representing a decrease of approximately 1192%. The decrease in gross profit was primarily due to an increase in Cost of Products and Services which resulted from higher inventory provisions for slow-moving and non-moving goods along with write-off of spare-parts during the three-months and nine-months ending December 2022.
  • Net loss of approximately $6 million for the three-month period ending December 31, 2022, up by 133% compared with $2.6 million in the same period during the prior year. The increase in net loss was due to increased Cost of Products and Services leading to lower gross profit and increased spend across wages and contractors pay, royalty, technology related expense, legal, accounting, general and administrative expenses, professional fees expenses. Further, the Company has also experienced higher financing costs due to an increase in long-term debt. To a certain extent, this was offset in part by the decrease in selling and distribution, depreciation and amortization, stock-based compensation.

Review of Operations

Total revenue of approximately $1.5 million in the three-month period ended December 31, 2022 as compared to approximately $1.5 million in the three months ended on December 31, 2021. Similar revenue resulted because the decrease in sales of Kodak products and Moto 360 watches have been balanced out by the increase in sales of Moto 100 watches launched in fiscal 2022. Total revenue amounted to approximately $6.07 million in the nine-month period ended December 31, 2022 as compared to approximately $4 million in the nine-months ended on December 31, 2021, representing an increase of approximately 52%. The total revenue has increased primarily due to the launch of the moto watch 100 late in fiscal 2022. Further contributing to the increase in total revenue was increased sales in smart home products, driven primarily by increased sales of air purifiers as well as sales of the KODAK Infinio F882 Outdoor Security Camera which was launched in January 2022.


Following the launch of Moto watch 100, which was announced in mid-November 2021, and the KODAK Infinio F882 Outdoor Security Camera (announced on January 20, 2022), the Company is on track with its plans to launch three new smart watch products in the quarter ending on March 31, 2023 and one new smart watch in the quarter ending on September 30, 2023. In view of this, the Company expects significant improvements in the gross revenue starting quarter four of the fiscal year ending on March 31, 2023 and continuing to the subsequent periods.

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 profitability. The Company continues to believe it is in the early stages of improved sales momentum through increased product deliveries and sales. In order to continue to meet customer demand and fulfill growing order backlog, 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 has withdrawn all previously disclosed financial guidance due to the uncertainty in forecasting operating results. We are confident that we will continue to achieve revenue growth in fiscal 2023 as we execute on our stated new product launches.

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

Selected Financial Information

  As at Dec 31, 2022 As at Dec 31, 2021
Total assets 13,082,789 13,901,560
Total liabilities 18,496,072 9,050,148
  Three months ended
Dec 31, 2022
Three months ended
Dec 31, 2021
Total revenue 1,492,410 1,495,965
Cost of products and services 4,284,653 1,240,255
Gross Profit (2,792,243) 255,710
Net loss (6,064,511) (2,604,135)

⁽¹⁾ References in this press release to the “Company” refer to eBuyNow eCommerce Ltd. (“EBN”) and its direct or indirect subsidiaries for information provided in respect of any period prior to June 18, 2021, which is the date on which the Company’s Qualifying Transaction (as defined in the policies of the TSX Venture Exchange) was completed pursuant to which the business of EBN became the business of CE Brands. Subsequent to June 18, 2021, the “Company” refers to the consolidated operations of CE Brands Inc. and its direct or indirect subsidiaries and the historical operations of EBN and its direct or indirect subsidiaries.

Management Update

As a follow on to the Company’s previous press release regarding management changes, on February 7, 2023, Ms. Elaine Pan has opted not to accept the role of Chief Operating Officer but will stay on in her role as Operations Manager. In addition, Mr. Craig Smith has resigned from the board of Directors of CE Brands but remains a board member of several subsidiaries of the Company.

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 today ​in​ over 70 countries, our innovative, ​highly ​repeatable process, which we call the “CE Method​”,​ 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.

Numerical Amounts

The reporting and the functional currency of the Company is the Canadian dollar.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities laws. In general, forward-looking information refers to disclosure about future conditions, courses of action, and events. The use of any of the words “anticipates”, “believes”, “expects”, “intends”, “plans”, “will”, “would”, and similar expressions are intended to identify forward-looking information. More particularly and without limitation, this press release includes forward-looking information with respect to: new product launches and the timing for such launches; the Company’s expectations of significant improvements in gross revenue and the timing for the same and the ability of the Company to achieve revenue growth; the steps the Company is taking to mitigate the impacts of the ongoing supply constraints and to conserve cash and improve near-term profitability‎; the Company’s belief that it is in the early stages of improved sales momentum through increased product deliveries and ‎sales‎; the Company’s anticipation that it will require additional financing.

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 volume of the Company’s products, market acceptance of the Company’s products, expenses and costs improving or remaining consistent with prior periods, and the ability of the Company to secure additional sources of financing in 2023.‎

There can be no assurance that the Company will be able to secure additional financing in the future and/or access funding under the Choco Facility (as defined in the MD&A) and/or the Vesta Facility (as defined in the MD&A) on the terms contemplated, in a timely manner or at all. If the Company fails to secure additional financing and/or access funding under the Choco Facility and/or the Vesta Facility, then 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 to continue as a going concern.

Although CE Brands believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because CE Brands cannot give any assurance that it will prove to be accurate. By its nature, forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed in this press release. Such risks and uncertainties include, among others: general business, economic, competitive, political ‎and social uncertainties; general capital market conditions and market prices for securities; delay or failure to ‎receive board of directors, third party or regulatory approvals; the actual results of CE Brands’ future operations; ‎competition; changes in legislation affecting CE Brands; the timing and availability of external financing on ‎acceptable terms; lack of qualified, skilled labour or loss of key individuals; the impact of the evolving Covid-19 ‎pandemic on the Company’s business, operations and sales; reliance on third party manufacturers and suppliers; ‎the Company’s ability to stabilize its business and secure sufficient capital, including the funding under various credit facilities and other financing arrangements, which may not be available in a timely manner or at all; the Company’s ‎available liquidity being insufficient to operate its business and meet its financial commitments, which could result ‎in the Company having to refinance or restructure its debt, sell assets or seek to raise additional capital, which ‎may be on unfavorable terms, if available at all; the inability to implement the Company’s objectives and ‎priorities for 2023 and beyond, which could result in financial strain on the Company and continued pressure on ‎the Company’s business; delay in anticipated product launches and commercial partnerships; risks associated ‎with developing and launching new products; increased indebtedness and leverage; the fact that historical and ‎projected financial information may not be representative of the Company’s future results; the inability to ‎position the Company for long-term growth; risks associated with issuing new equity including the possible dilution ‎of the Company’s outstanding common shares; the value of existing equity following the completion of any ‎financing transaction; the Company defaulting on its obligations, which could result in the Company having to ‎file for bankruptcy or undertake a restructuring proceeding; and the Company being put into a bankruptcy or ‎restructuring proceeding. A description of additional risk factors that may cause actual results to differ materially ‎from forward-looking information can be found in CE Brands’ disclosure documents on the SEDAR website at ‎ Although CE Brands has attempted to identify important factors that could cause actual results to ‎differ materially from those contained in forward-looking information, there may be other factors that cause results ‎not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not ‎exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can ‎be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking ‎information contained in this press release is expressly qualified by this cautionary statement. The forward-looking ‎information contained in this press release represents the expectations of CE Brands as of the date of this press ‎release and, accordingly, is subject to change after such date. However, CE Brands expressly disclaims any intention ‎or obligation to update or revise any forward-looking information, whether as a result of new information, future ‎events or otherwise, except as expressly required by applicable securities law.‎.  

Further Information

For further information about CE Brands or its principal operating subsidiary, eBuyNow eCommerce Ltd., please contact:

Kalvie Legat                                                                             
Interim CEO


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