”“”Forward-Looking Statements

The report contains forward-looking statements about the company’s expected revenue, profits, business opportunities, and financing plans. Actual results could differ due to risks and uncertainties.

Overview

Cleartronic, Inc. operates through its wholly owned subsidiary ReadyOp Communications, Inc. ReadyOp sells software subscriptions, hardware products, and consulting services related to its ReadyOp and ReadyMed web-based communications platforms. These platforms help organizations plan, communicate, and manage operations and incidents.

In March 2018, Cleartronic approved spinning off its VoiceInterop subsidiary. In October 2019, it acquired the ReadyMed software platform designed for the healthcare industry.

Revenue

Revenue increased 12.01% to $572,013 in Q1 2024, from $510,668 in Q1 2023. The increase was driven by higher ReadyOp platform subscription revenue, from $492,969 to $550,418, and increased ReadyOp hardware sales, from $17,968 to $21,595. Consulting income decreased from $350 to $0 due to less training activity.

Expenses

Cost of revenue rose 50.9% to $108,029 due to higher hardware costs. Gross profit increased 5.7% to $463,984. Operating expenses grew 23.85% to $452,013, mainly because of a 22.09% administrative expense increase from more consulting fees and new hires. Selling expense grew 30.9% to $87,501 due to more commissions, advertising, and travel.

Profitability

Other income grew to $9,356 from $678 thanks to interest and investment gains. Pre-tax income declined 71.5% to $21,327 as revenue growth was outpaced by cost increases. Net income dropped 82.8% to $11,096.

First Half 2024 vs. First Half 2023

In the first six months, revenue increased 15.8% and gross profit rose 12.4%. But operating expenses grew 27.72%, cutting pre-tax income 57.6% to $38,994. Net income plunged 74.2% to $18,420.

Cash Flow

In the first half, operations provided $290,255 due to net income, non-cash expenses, and a $399,646 deferred revenue increase. This was partially offset by higher receivables, inventory, and prepaid costs. Last year operations used $78,100 due to a deferred revenue decrease despite profitability.

Outlook

Revenue and profits are growing but so are expenses. Managing costs will be key to improving profitability going forward. The company appears to have good liquidity to fund operations. “””