Eddy Smart Home Solutions Ltd. Announces Q4/2024 Financial Results

Toronto, Ontario--(Newsfile Corp. - April 25, 2025) - Eddy Smart Home Solutions Ltd. (TSXV: EDY) ("Eddy" or the "Company") is pleased to announce its financial results for the three and twelve months ended December 31, 2024.

2024 Highlights

Growth in In-Building Devices and Contract Revenue
A key operating metric of the Company's progress and the value of the business can be measured by both the existing contracted revenue and the growth of the contracted sales backlog.

Eddy has increased the number of in-building devices by 46%, from 75,229 as of December 31, 2023, to 109,816 as of December 31, 2024. This significant growth is expected to drive additional revenue and highlights the increasing market acceptance of Eddy's technology and significant market traction.

The Company's contracted sales backlog continued to grow and during 2024 and now stands at approximately $38.7 million (December 31, 2023 - $37.9 million) this represents the future contracted revenue. The future contracted revenue will be recognized over the contract terms which during 2024 had a weighted average of 8.5 years (2023 - 9 years).

Debt Facilities Repayments
On July 15, 2024, the Company repaid in full the amount owed under the working capital facility amounting to $5,589,671. On June 28, 2024, at the closing of the Private Placement, the Credit Facility which amounted to $1,163,880 was fully converted into common shares. These transactions significantly improved the Company's liquidity position, reduced future interest costs and strengthened the balance sheet.

Reduced Expenses
For the three months ended December 31, 2024, Eddy has significantly reduced its general and administrative (G&A) expenses by $273,845 to $1,353,385 as compared to $1,627,231 for Q4/2023 (a 23% improvement).

For the year ended December 31, 2024, G&A expenses decreased by almost $3 million to $4,347,106 as compared to $7,250,983 for 2023 (a 40% improvement). These reductions highlight the company's commitment to operational efficiency and cost management.

Improved Financial Performance
For the three months ended December 31, 2024, Eddy has significantly reduced its net loss to ($927,413), an improvement of $3,476,681, from the net loss of ($4,404,094) for the comparable quarter.

For the year ended December 31, 2024, the net loss was ($3,645,448) as compared to ($10,568,211) for 2023 (which represents a significant improvement of $6,922,763).

The 2024, year-to-date improvement reflects higher revenue, enhanced operational efficiencies, and reduced expenses. The average net loss per month was ($303,787), as compared to ($880,684) for 2023.

Revenue
For the three months ended December 31, 2024, revenue was $1,268,574 as compared to $1,163,006 reported for Q4/2023. For the year ended December 31, 2024, revenue increased by $369,054 to $3,778,126 as compared to $3,409,072 reported for 2023 (an increase of approximately 11%).

Recurring Billings
Billings represent the amount billed to customers for monthly monitoring and equipment rentals.
For the three months ended December 31, 2024, the recurring billings amounted to $787,122 (2023 - $588,508), an increase of $198,614 over the comparable quarter. This represents average monthly recurring revenue of $262,374 (2023 - $196,169), an increase of approximately 34%.

For the year ended December 31, 2024, the recurring billings amounted to $2,858,308 (2023 - $2,121,752), an increase of $736,557. This represents average monthly recurring revenue of $238,192 (2023 - $176,813), an increase of approximately 35%.

Basic and Diluted Loss Per Share
Basic and diluted loss per share for the three months ended December 31, 2024, was ($0.15) as compared to ($5.54) for Q4/2023. Basic and diluted loss per share for the year ended December 31, 2024, was ($1.04) compared to ($13.29) per share reported for 2023.

On June 28, 2024, the Company completed a non-brokered private placement of 5,333,333 post-consolidation common shares and the prior period share amounts have been retrospectively adjusted to reflect the (100:1) Share Consolidation.

As at December 31, 2024, 6,128,623 (December 31, 2023 - 795,290) Common Shares were issued and outstanding.

Subsequent Events
On January 17, 2025, the Company entered into a loan agreement with a non-arm's length private lender for a $1,000,000 revolving credit facility. The Facility bears interest at a rate of 12% per annum and will mature in two years. There were no fees paid in connection with the Facility. The Company intends to use the net proceeds from the Financing largely for inventory purchases, to satisfy its contracted revenue backlog. This Facility can be increased at the request of the Company by an additional $500,000, for an aggregate amount of $1,500,000, based on growth in receivables and increased inventory (current draw on the facility $250,000).

On April 1, 2025, the Company announced that it had granted 36,300 stock options to the officers, 116,400 restricted share units (RSUs) to the directors and 306,431 performance share units (PSUs) to an officer of the Company. The Company has also granted an additional 185,101 stock options to employees of the Company. The stock options are each exercisable at a price of $2.50 per common share and together with the RSUs and PSUs, shall vest in three equal parts (one third on the first anniversary of this grant, one third on the second anniversary and the final third on the third anniversary). In addition, vesting of the PSUs shall also be subject to certain performance criteria. The RSUs and PSUs entitle the holder to new common shares of the Company upon the vesting conditions being satisfied.

About Eddy
Eddy is a leading North American provider and developer of smart water metering products and monitoring services for commercial and residential properties. Eddy's solutions help property owners and developers protect, control, and conserve water usage through advanced sensing devices and behavioral learning software. For more information, visit www.eddysolutions.com.

For further details on the company's financial performance, please review our consolidated financial statements and management's discussion and analysis for the years ended December 31, 2023, and 2022, available on Eddy's SEDAR profile at www.sedar.com.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of applicable securities laws. These statements reflect management's current expectations and are based on assumptions and estimates that involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ are discussed in the company's most recent management's discussion and analysis under "Risks And Uncertainties," available at www.sedar.com. Eddy undertakes no obligation to update these statements, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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