The following Management's Discussion and Analysis of Financial Condition and
Results of Operations ("MD&A") provides information for the three and six month
periods ended
Certain statements in this MD&A constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. You should carefully read the cautionary note in this MD&A regarding forward-looking statements and should not place undue reliance on any such forward-looking statements. See "Cautionary Note Regarding Forward-Looking Statements".
Additional information about the Company, including our most recent consolidated financial statements and our Annual Information Form, is available on our website at www.igen-networks.com, or on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Cautionary Note Regarding Forward-looking Statements
Certain statements and information in this MD&A may not be based on historical
facts and may constitute forward-looking statements or forward-looking
information within the meaning of the
Typically include words and phrases about the future such as "outlook", ? "may", "estimates", "intends", "believes", "plans", "anticipates" and "expects"; ? Are not promises or guarantees of future performance. They represent our current views and may change significantly; ? Are based on a number of assumptions, including those listed below, which could prove to be significantly incorrect: - Our ability to find viable companies in which to invest - Our ability successfully manage companies in which we invest - Our ability to successfully raise capital - Our ability to successfully expand and leverage the distribution channels of our portfolio companies; - Our ability to develop new distribution partnerships and channels - Expected tax rates and foreign exchange rates. ? Are subject to substantial known and unknown material risks and uncertainties. Many factors could cause our actual results, achievements and developments in our business to differ significantly from those expressed or implied by our forward-looking statements. Actual revenues and growth projections of the Company or companies in which we are invested may be lower than we expect for any reason, including, without limitation: - the continuing uncertain economic conditions - price and product competition - changing product mixes, - the loss of any significant customers, - competition from new or established companies, - higher than expected product, service, or operating costs, - inability to leverage intellectual property rights, - delayed product or service introductions
Investors are cautioned not to place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future results.
3 Table of Contents Overview
During the six months of 2021, the Company prepared its new distribution
channels for sell-through revenues along with launching of a new consumer brand.
Notable highlights of the six month period ended
· The County Executive of America branded IGEN's Medallion GPS Fleet Solution as "County Fleet Management" for exclusive service offerings with Counties across the US. · The Company launched the industry's first consumer brand product "FamilyShield" to protect young drivers. · The T-Mobile Partner Program makes available for sale IGEN's Medallion GPS for light-commercial fleets for their Small-to-Medium Business channels. · The Company's "Driver Telematics Signature" Patent Application No. 16/387,858 was accepted by the United States Patent Office and became enforceable as ofJune 15, 2021 .
Financial Condition and Results of Operations
Capital Resources and Liquidity
Current Assets and Liabilities, Working Capital
As of
The Company's current liabilities as of
As of
During the six months ended
Total Assets and Liabilities, Net Assets
As of
As of
The above resulted in net assets as of
The Company is continuing its efforts to increase its asset base, raise funds and improve cashflow to improve its working capital position. As of the date these financial statements were issued, the Company believes it has adequate working capital and projected net revenues and cash flows to maintain existing operations for approximately six months without requiring additional funding. The Company's business plan is predicated on raising further capital for the purpose of further investment and acquisition of targeted technologies and companies, to fund growth in these technologies and companies, and to expand sales and distribution channels for companies it currently owns or is invested. It is anticipated the Company will continue to raise additional capital through private placements or other means in the both the near and medium term.
The reader is cautioned that the Company's belief in the adequacy of its working capital, the continuation and growth of future revenue, the ability of the Company to operate any stated period without additional funding, and the ability to successfully raise capital are forward looking statements for which actual results may vary, to the extent that the company may need capital earlier than anticipated and/or may not be able to raise additional capital.
4 Table of Contents Results of Operations
Revenues and Net Loss for the Three Months Ended
Revenues
For the three months ended
Costs of goods sold for the three months ended
The resulting gross profit percentage was 39% for the three months ended
The Company has addressed the impact of industry chip shortages by securing alternative sources for hardware and focusing on commercial fleet and pre-owned vehicle channels that include the CU Trak, Family Shield, and Medallion GPS Fleet brands.
Expenses
Expenses for the three months ended
For the three months ended
The Company will continue to invest in personnel, channels, and product development in order to drive revenue growth and increase gross profits sufficient to enable the Company to achieve profitability.
Revenues and Net Loss for the Six Months Ended
Revenues
For the six months ended
Costs of goods sold for the six months ended
The resulting gross profit percentage was 29% for the six months ended
The Company has addressed the impact of industry chip shortages by securing alternative sources for vehicle hardware and focusing sales effort on commercial fleet and pre-owned vehicle channels that include the CU Trak, Family Shield, and Medallion GPS Fleet brands.
Expenses
Expenses for the six months ended
For the six months ended
The Company will continue to invest in personnel, channels, and product development in order to drive revenue growth and increase gross profits sufficient to enable the Company to achieve profitability.
5 Table of Contents
Cash Flows and Cash Position
For the six months ended
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