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Tenet Reports First Quarter 2023 Financial Results

Toronto, Ontario--(Newsfile Corp. - May 26, 2023) - Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) ("Tenet" or the "Company"), an innovative fintech technology services provider and operator of the Cubeler™ Business Hub, today announced its financial results and operating highlights for the three-month period ended March 31, 2023. Similar to the fourth quarter of 2022, the first quarter of 2023 was a difficult one in China from an economic standpoint. Tenet generated $9.49 million in revenue in Q1 and had a net loss of $8.7 million as SMEs in China were still struggling to recover following the sporadic government imposed COVID-19 lockdowns as was stated by the Company's Chinese Operations' CEO and Director of Finance. All amounts expressed are in Canadian dollars.

The Company continues to streamline operations in line with its previous press releases in May 2023.

Q1 Financial Highlights:

  • Total Revenue of $9.49M

  • Adjusted EBITDA of ($5.87M)

  • Net Loss of ($8.7M)

Summary of Quarterly Evolution of Revenue, Adjusted EBITDA and Net Income (Loss)


Q1 2023

Q4 2022

Q3 2022

Q2 2022

Q1 2022













Adjusted EBITDA2






Net Income (Loss) 3






  1. Expenses, for the calculation of Adjusted EBITDA, do not include finance costs, interest, taxes, depreciation and amortization (including impairment of goodwill and intangible assets), change in fair value of contingent consideration payable, loss on investment in associate company and gain on bargain purchase.

  2. Adjusted EBITDA equals net income (loss) before finance costs, taxes, depreciation and amortization (including impairment of goodwill and intangible assets), change in fair value of contingent consideration payable, loss on investment in associate company and gain on bargain purchase. Adjusted EBITDA is provided as a non-IFRS financial measure provided to assist readers in determining the Company's ability to generate cash flows from operations and to cover finance charges. Adjusted EBITDA and EBITDA are also widely used for business valuation purposes. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

  3. The net loss for Q4 2022 includes a combined impairment of $38,433,119 related to the Company's acquisition of Cubeler Inc. for which forecasted revenues shifted by almost another year due to the delayed launched of the Company's Canadian Business Hub. The portion of the above-mentioned impairment related to the intangible assets totaling $2,735,229 may be reversed in the future following the launch of the Company's Canadian operations.

Adjusted EBITDA Reconciliation


Q1 2023

Q4 2022

Q3 2022

Q2 2022

Q1 2022

Net Income (loss)






Income taxes (recovery)






Finance costs






Depreciation of property and equipment






Depreciation of right-of-use assets






Amortization of intangible assets






Amortization of financing issuance costs






Impairment of goodwill






Impairment of intangible assets






Change in fair value of contingent consideration payable






Loss on investment in associate company






Gain on bargain purchase






Adjusted EBITDA








Although the Company has struggled to regain the momentum in revenue growth it had seen in prior quarters, there remains a continued commitment to geographic and industrial vertical expansion of its Chinese operations. The Company has also taken the opportunity to work on customer retention and synergy.

The Company continues to build an ecosystem where it is servicing and gathering data on thousands of SMEs in China operating in various industrial sectors, including retail and wholesale trade, manufacturing, energy, construction and distribution. The Company now has the capability to track metrics such as sales and inventory levels in near real time on Business Hub SME members in China and has been able to show variations across time series, positioning the Company to potentially become a reliable reference of economic activity throughout the country. This will be examined as the Company explores data monetization opportunities.

The largest source of revenue in China is still the supply-chain services, which realized revenues of $6.46 million in the quarter.

The Company's Canadian operations continued to focus on the recently launched Business Hub in Canada and continues to see seek an increase in membership. The Company continues to expect to begin showcasing the value of the data it has been collecting and will collect from SMEs in the future as it continues to explore opportunities for data monetization.

The Company's business plan and outlook will continue to focus on the growth of its operations in China and Canada, however the Company plans to take a hybrid approach to growth that reflects these two businesses.

Full details of the Company's first quarter 2023 financial results can be found in the Unaudited Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) for the three-month period ended March 31, 2023, which are available at

Forward-looking information

Certain statements included in this presentation constitute "forward-looking statements" under Canadian securities law, including statements based on management's assessment and assumptions and publicly available information with respect to the Company. By their nature, forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as "believes," "expects," "anticipates," "assumes," "outlook," "plans," "targets", or other similar words. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from the outlook or any future results, performance or achievements implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements in this news release include, but are not limited to, holding company with significant operations in China; general economic and business conditions, including factors impacting the Company's business in China such as pandemics (ex.: COVID-19); legislative and/or regulatory developments; Global Financial conditions, repatriation of profits or transfer of funds from China to Canada, operations in foreign jurisdictions and possible exposure to corruption, bribery or civil unrest; actions by regulators; uncertainties of investigations, proceedings or other types of claims and litigation; timing and completion of capital programs; liquidity and capital resources, negative operating cash flow and additional funding, dilution from further financing; financial performance and timing of capital; and other risks detailed from time to time in reports filed by the Company with securities regulators in Canada, the United States or other jurisdictions. We refer potential investors to the "Risks and Uncertainties" section of the Company's MD&A. The reader is cautioned to consider these and other risks and uncertainties carefully and not to put undue reliance on forward-looking information.

Forward-looking statements reflect information as of the date on which they are made. The Company assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event the Company does update any forward-looking statement, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

All amounts are in Canadian dollars unless otherwise indicated.

About Tenet Fintech Group Inc.:

Tenet Fintech Group Inc. is the parent company of a group of innovative financial technology (Fintech) companies. All references to Tenet in this news release, unless explicitly specified, include Tenet and all its subsidiaries. Tenet's subsidiaries provide various analytics services to businesses and financial institutions through the Cubeler™ Business Hub, a global ecosystem where analytics are used to create opportunities and facilitate B2B transactions among its members. Please visit our website at:

For more information, please contact:

Tenet Fintech Group Inc.
Christina Boyd, Director, Investor Relations

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