Page 1

Nic NTG CLARITY NETWORKS INC . NTG Clarity Networks Announces an Improved Third Quarter 2021 Financial Results Toronto , ON / TNW - Accesswire / November 18 , 2021 / NTG Clarity Networks Inc. ( TSX.V : NCI ) , announces its third quarter results for the period ended September 30 , 2021 ( all figures in Canadian Dollars ) . We have continued our road back to profitability with the fifth straight quarter of positive results . This quarter's net income was $ 237,671 , making the year to date 2021 a total of $ 947,211 or 12.2 % of revenue . Our gross margin for this quarter was 43 % and the income from operations was $ 526,474 . In July , we announced our intention to initiate a board - approved Shares for Debt transaction . In August we closed the transaction and issued 40,000,000 shares and reduced our outstanding payables / loans by $ 2,000,000 . Last quarter , we introduced the NTGapps Digital Toolbox ; a cloud - based suite of digital tools for Telecom Operators , along with orders we had received for the product of approximately $ 1.1 Million . In August we announced two new POs for the product totaling $ 800K . Other announced POs valued at approximately $ 140K were for support of other NTG products . In September we announced receipt of a Letter of Intent ( LOI ) for the purchase of NTG's Asset Management , Network Discovery , Discrepancy and Reconciliation software . The value of this new customer's LOI is approximately $ 4.5M and we anticipate some contribution to revenue in Q4 2021 . Consolidated revenue for the three months ended September 30 , 2021 was $ 2,844,338 compared to $ 2,233,248 for the same period in 2020 and is made up of product - related revenue and professional services . Year to date revenues are up by 22 % from 2020 ( $ 7,763,897 compared to $ 6,359,223 ) . Gross margin for Q3 2021 was $ 1,213,537 or 43 % compared to $ 846,241 or 38 % for Q3 2020. For the nine months ended September 30 , 2021 the gross margin was $ 3,338,310 or 43 % , compared to $ 2,360,901 or 37 % for the same period in 2020 . Selling and marketing expenses for the three and nine months ended September 30 , 2021 were $ 261,654 and $ 616,117 respectively compared to $ 187,105 and $ 654,355 in the previous year . The 40 % increase in the selling and marketing in the quarter occurred as COVID - 19 restrictions are being lifted and travel and some customer visits are resuming . YTD selling expenses were down by 6 % . G & A expenses for the three and nine months ended September 30 , 2021 were $ 397,016 and $ 1,110,561 respectively compared to $ 384,815 and $ 2,172,818 in the previous year . G & A costs have decreased in the quarter , and year to date significantly ( 49 % ) due to lower salary costs and the capitalization of work done on our Smart2Go product . Working capital as at September 30 , 2021 was a deficit of $ 4,440,638 compared to a deficit of $ 6,336,678 at December 31 , 2020 . 1