CEO Provides Insight into Gowns and BCS Solicitations
VANCOUVER, BRITISH COLUMBIA, CANADA – MAY 2, 2023 – Mission Ready Solutions Inc (“Mission Ready” or the “Company”) (TSX-V: MRS) (OTCQB: MSNVF) (FSE: 2R4), a provider of comprehensive government contracting solutions, recently released its 2022 audited consolidated financial statements for the year ended December 31, 2022 (“FY 2022”).
The following are highlights for FY 2022 (all dollar figures are quoted in Canadian currency unless otherwise specified):
- Gross Revenues: $5.52MM
- Gross Margin: 17%
- Net Income (loss): (22.5MM) 1
- Decrease in Operating Expenses: 29% 2
- Decrease in Total Liabilities: 42% 2
(1) Primarily consists of impairment loss on Unifire goodwill recognized in Q4 2022.
(2) As compared to previous year.
A copy of the audited consolidated financial statements for the year ended December 31, 2022, and the associated Management’s Discussion and Analysis (“MD&A”) are available on SEDAR.com under the Company’s profile.
The Company previously recognized goodwill and intangible assets related to the Unifire, Inc. (“Unifire”) acquisition. The Company reviews goodwill and intangible assets annually and records any necessary impairments. The timing of contracts has resulted in significant year-over-year fluctuations in Unifire’s revenues, making it difficult to project future revenues reliably. As a result, the Company recognized a non-cash impairment on goodwill and intangible assets totaling $17,809,224. This impairment does not affect the Company’s cash position, cash flow from operating activities, or future operations.
“Management’s decision to recognize a write-down (impairment) on the goodwill (and other intangible assets) associated with the Unifire acquisition during the fourth quarter of 2022 was made to mitigate the potential impairment of income during future reporting periods,” said Buck Marshall, President and CEO of Mission Ready. “Given the many open solicitations and sales opportunities before the Company – many of which are significantly past the original award dates – we are hopeful that these delayed opportunities will begin to come to fruition in the very near term. It is our belief that the strategic decisions we make now will have a great and lasting impact on the Company’s success down the road.”
The Company also provides further insight into the recent Ballistic Combat Shirt (BCS) solicitation. The Company had previously received a request to maintain pricing through April from the US Army Contracting Command-Aberdeen Proving Ground. The Company subsequently received another amendment signed by Company officials on April 18, 2023, effectively moving the solicitation’s expected response to October 2023.
“The latest amendment to the solicitation reaffirms the ongoing requirement and aligns with the US. Government’s new fiscal year that could see appropriations for the ballistic combat shirt,” said Francisco Martinez, Chief Technology Officer. “Soldier’s protection remains at the forefront of the US Army priorities for troop enhancements, ensuring that they augment soldier’s mobility while optimizing protection.”
The Company also provides additional insight following its attendance at the Make PPE in America Industry Day. The event, hosted by the Department of Health and Human Services (HHS), also included senior members from the Defense and Logistics Agency (DLA), the Department of Homeland Security (DHS), and the Department of Veterans Affairs (VA). During the event, the agencies provided additional visibility into their current procurement structure, past performance, and goals. Notably:
- VA and DLA currently have active inventories and share a similar structure in procurement, using Prime Vendor programs, Distribution and Pricing Agreements, and Blanket Purchase Agreements to ensure long-term procurement and readiness.
- VA and the Secretary of Defense are working on readiness and resilience, ensuring they can respond to the 4th mission, acting as a backstop for the US healthcare system in the case of catastrophic events.
- All agencies are unanimously committed not to holding expired PPE.
- The lack of adequate supply of domestically produced PPE was an enormous challenge for the US during the COVID-19 pandemic, and they are committed to never face that challenge again.
- Jointly, their goal is to continue fostering industry growth, favoring 2+ years contract domestically sourced, reinforcing compliance of PPE products, and ensuring that the industry is promoted, namely through innovation, helping its products stand out internationally.
Buck Marshall added, “The need for Made in America PPE and the desire to support an industry that jointly stepped up to the challenge when the government called for help is at the forefront of the discussions, and we look forward to continuing to provide US-made solutions to respond to the demand.”
About Mission Ready Solutions Inc.
Mission Ready Solutions provides comprehensive government contracting solutions with extensive experience in delivering quality, mission-critical products and services for law enforcement, firefighters, first responders, military, and other governmental agencies.
Through its privileged access to a host of federal contracting vehicles, including Multiple Award Schedule (“MAS”) contracts awarded and administered by the United States General Services Administration, Mission Ready’s wholly-owned subsidiary, Unifire, Inc., leverages its robust vendor network, time-proven industry relationships, proprietary technology infrastructure, and industry-leading manufacturing and distribution capabilities to efficiently source and deliver more than 1.5 million products.
For further information on Mission Ready Solutions Inc., please visit MRSCorp.com. You can also subscribe to our mailing list at eepurl.com/hznhX9 to receive our press releases and latest news directly by email.
Mission Ready Solutions Inc.
(Signed “Buck L. Marshall”)
Buck L. Marshall
President, CEO and Director
T: +1 877.479.7778
Investor Relations Contact:
T: +1 877.479.7778 (Ext.5)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “forecast”, “project”, “budget”, “schedule”, “may”, “will”, “could”, “might”, “should” or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by Mission Ready Solutions Inc. as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Mission Ready Solutions Inc. to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Mission Ready Solutions Inc. does not undertake to update any forward-looking information that is included herein, except in accordance with applicable securities laws.