Abbotsford, BC – April 28, 2025 – TheNewswire - Gatekeeper Systems Inc. (“Gatekeeper” or the “Company”) (TSX-V:GSI, OTC:GKPRF) a video and data solutions provider for public transportation and smart cities, reports its financial results for the three and six months ended February 28, 2025.  

 

Key recent business highlights and Fiscal Q2 2025 highlights:

• Announced a contract award with the Toronto Transit Commission for video-based evidence capture and automated ticketing solution;  

• Announced support for Transport Canada’s new mandate for video on all new school buses; 

• Subsequent to February 28, 2025, announced over $5 million of new business contracts including a contract with a new Canadian transit agency for on-board video systems on transit buses; 

• Revenue for the three and six months ended February 28, 2025 was $5.9 million and $13.2 million respectively. Revenue in the prior year comparable periods was $9.9 million and $19.7 million respectively, which included revenue of a large transit contract of $5 million and $8.5 million respectively in addition to the Company’s regular business (see press release dated January 4, 2024). When excluding that large contract, the Company’s regular business revenue grew approximately 22% and 18% respectively, for the three and six months ended February 28, 2025; 

• Gross profit for the three and six months ended February 28, 2025 was $2.3 million and $5.5 million respectively. Gross margin as a percentage of revenue was 39% and 41% respectively;  

• Operating expenses for the three and six months ended February 28, 2025 were $3.6 million and $6.8 million, respectively, as compared to $3.3 million and $6 million for the same prior year comparable periods. Operating expense increase is attributable to higher sales costs, research and development costs, special project costs, and bid preparation costs relating to large transit projects the Company is actively pursuing; 

• Operating loss for the three and six months ended February 28, 2025 was $1.3 million and $1.3 million respectively, as compared to operating profit of $1.7 million and $3.9 million for the same prior year comparable periods; 

• Total Comprehensive Loss for the three and six months ended February 28, 2025 was $1 million and $0.4 million respectively, compared to Total Comprehensive Income of $1.6 million and $3.6 millionfor the same prior year comparable periods; 

• At February 28, 2025, the Company had cash and cash equivalents of $8.5 million, working capital of $16.1 million, no borrowed-money debt, and approximately 94 million shares outstanding; and 

• The Company is arranging to increase its Letter of Credit Facility with TD Bank to $7.5 million prior to the end of June 2025, to accommodate potential inventory purchases and performance bond guarantees for large projects. 

Management Commentary

Doug Dyment, President and CEO of Gatekeeper, commented, “We added two new Canadian transit agencies to our growing list of transit customers, which now stands at over 60. We also announced significant contract wins with US transit agencies. Transit agencies are increasingly rigorous in their cybersecurity protocols, technical specifications and vendor evaluations when awarding contracts for public transit video solutions. Our transit contract win rate is steadily increasing, which is a testament to the effectiveness of the investments we are making in our business.

We feel confident that our recent business investments in sales, engineering, and legal, are building the necessary business foundation for meaningful contract wins in the very near future. Gatekeeper continues to develop strong competitive technical differentiation and an exemplary customer service discipline, which are attributes required by transit and school district customers. The previous year’s comparative revenue was boosted by a large $9 million transit contract. We are working diligently on potential new contracts of similar size and nature while we also grow our base business with an increasing focus on AI, video analytics and evidence management.

The school segment continued to exhibit solid growth and was the main contributor to the 22% growth in our regular business for the quarter. During the current fiscal year, the number of Mobile Data Collectors under contract for monthly-recurring hosted services has increased from approximately 300 to approximately 3,500. This growth trajectory is an encouraging validation of the investments we have made in our data center and hosted software applications for video evidence.”  

Increase in Letter of Credit Facility

The Company has a letter of credit facility (“Letter of Credit Facility”) with the Toronto-Dominion Bank pursuant to which the Toronto-Dominion Bank will issue letters of credit, including supplier payment guarantees, up to $2 million to certain Company suppliers. The Company is currently arranging to increase the Letter of Credit Facility to $7.5 million prior to the end of June 2025, to accommodate potential inventory purchases and performance bond guarantees for large projects.

The Company also has a revolving credit facility with the Toronto-Dominion Bank pursuant to which the Company may draw up to $6 million for working capital provisions.

At February 28, 2025, both credit facilities are undrawn.

            

Selected Financial Information

For the three months ended For the six months ended   February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024           Revenue $     5,922,083 $     9,858,554 $    13,205,719 $    19,683,297 Cost of Sales 3,625,005 4,770,923 7,752,646 9,817,621 Gross Profit 2,297,078 5,087,631 5,453,073 9,865,676 Gross Margin 39% 52% 41% 50%           Expenses 3,636,078 3,341,690 6,759,488 6,000,743           Operating Income (Loss) (1,339,000) 1,745,941 (1,306,415) 3,864,933           Total Comprehensive Income (Loss) for the period $   (1,014,735) $     1,575,860 $     (358,642) $     3,628,972 Earning per share –         Basic $            (0.01) $              0.02 $             (0.00) $              0.04 Diluted $            (0.01) $              0.02 $             (0.00) $              0.04                       February 28, 2025 August 31, 2024               Total Assets $    20,221,256 $     22,368,076               Total Liabilities 2,370,123           4,205,999               Total Shareholders’ Equity $    17,625,133 $     18,162,077

 

Full details of the financial reports and operating results for the fiscal quarter ended February 28, 2025, are described in the Company’s unaudited consolidated financial statements with accompanying notes and related Management’s Discussion and Analysis, available on SEDAR+ at www.sedarplus.ca.

About Gatekeeper Systems Inc.

Gatekeeper is a leading provider of intelligent video and data solutions designed to provide a safer transportation environment for children, passengers, and public safety personnel on multiple transportation modes. The Company uses AI, video analytics, and Mobile Data Collectors to interconnect public transportation assets within a Smart City ecosystem. The Company’s Platform-as-a-Service (PaaS) business model is centered around wirelessly enabled Mobile Data Collectors which forms the foundation of the Company’s data company evolution. www.gatekeeper-systems.com

Contact Information:

Douglas Dyment

President & CEO

ddyment@gatekeeper-systems.com

(604) 864-6187

 

Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. For more exhaustive information on these risks and uncertainties, the reader should refer to the risk factors described in the management's discussion and analysis for the period ended February 28, 2025. The forward-looking statements contained in this press release represent our expectations as of the date hereof. We disclaim any intention and assume no obligation to update or revise any forward-looking statements. Forward-looking statements are presented for the purpose of providing information about management's current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable 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.