Kadestone Capital Corp. Reports Q4 and Full Year 2025 Financial Results
Newsfile
May 04, 2026 12:30PM GMT
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Vancouver, British Columbia--(Newsfile Corp. - May 4, 2026) - Kadestone Capital Corp. (TSXV: KDSX) ("Kadestone" or the "Company"), a vertically integrated property company today announced its financial results for the year ended December 31, 2025.
Financial Results
For the year ended December 31, 2025, the Company reported a net loss of $6,186,532, or $0.13 per share, compared to a net loss of $5,356,082(1), or $0.11(1) per share, for the same period in the prior year. The increased loss was primarily due to higher operating expenses, including salaries and wages of $1,908,312, consulting fees of $1,482,130, interest expense of $1,034,333, and professional fees of $592,718. In addition, the Company recognized a loss from associates of $442,291, representing the net result of revenues less interest and operating costs while the properties are held for sale. This was partially offset by income of $237,312 from the Company's investment in a mortgage fund.
Net cash used in operating activities also decreased to $4,707,510 for the year ended December 31, 2025, compared to $5,010,386(1) in the prior year due to lower interest expense.
The above audited financial information, including comparative information, is expressed in Canadian dollars and has been prepared in accordance with IFRS Accounting Standards, using the accounting policies and methods of application as described in notes 2 and 3 of the Company's audited consolidated financial statements for the years ended December 31, 2025, and 2024.
Private Placement
The Company also announces that further to its news release on February 25, 2026, wherein the Company announced a non-brokered private placement (the "Private Placement"), and its subsequent news releases on March 11, 2026 and April 13, 2026, announcing the closing of the first and second tranches of the Private Placement, the Private Placement is now closed and no further tranches will be issued under this financing. Pursuant to the Private Placement, the Company issued six secured convertible notes in the aggregate principal amount of $1.98 million and 3,960,000 common share purchase warrants.
About Kadestone
Kadestone was established to pursue the investment in, acquisition, development and management of residential and commercial income producing properties, and procurement and sale of building materials within major urban centres and high-growth, emerging markets in Canada. The Company operates five complimentary business lines spanning building materials procurement and supply, property development and construction, construction finance, asset ownership and property management. These synergistic business lines have solidified Kadestone's vision to become a market leading vertically integrated property company. Additional information can be found at www.kadestone.com.
Note 1 Restatement of Comparative Amounts
During the preparation of the financial statements for the year ended December 31, 2025, the Company identified errors in the prior period relating to the capitalization of borrowing costs, property taxes, and other carrying costs that were previously incorrectly capitalized at equity accounted investees after development activities had ceased or assets were actively marketed for sale, as well as selling and administrative costs that should have been expensed as incurred.
In accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the Company has corrected this error retrospectively, and the comparative information as at and for the year ended December 31, 2024 have been restated. The impact of the restatement adjustments have been summarized below:
Statement of Financial Position
Previously reported | Restatement adjustment | Restated | |
As at December 31, 2024 | |||
Investment in associates | $ 11,799,769 | $ (951,893) | $ 10,847,876 |
Total assets | 18,397,500 | (951,893) | 17,445,607 |
Accumulated deficit | (16,826,128) | (950,334) | (17,776,462) |
Total Shareholder's equity | 6,022,504 | (950,334) | 5,072,170 |
Total liabilities and equity | $ 18,397,500 | $ (951,893) | $ 17,445,607 |
Statement of Loss and Comprehensive Loss
Previously reported | Restatement adjustment | Restated | |
For the year ended December 31, 2024 | |||
Income from associates | $ 834,678 | $ (711,134) | $ 123,544 |
Loss before tax | (4,646,507) | (709,575) | (5,356,082) |
Loss and comprehensive loss | (4,646,507) | (709,575) | (5,356,082) |
Basic and diluted loss per share | $ (0.10) | $ (0.01) | $ (0.11) |
As at January 1, 2024, the Company's investment in associates and accumulated deficit were adjusted by a decrease of $240,759, from $22,866,125 to $22,625,366 and from $12,179,621 to $12,420,380, respectively.
For further information please contact David Negus, CFO, Kadestone Capital Corp., dnegus@kadestone.com, 604 671-8142
ON BEHALF OF THE BOARD
(signed) "Kevin Hoffman"
CEO and Director
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.
Cautionary Statement Regarding Forward-Looking Statements
Certain information in this press release, including, but not limited to, the Company's ability to identify opportunities and secure additional investments and the Company's vision to become a leading vertically integrated property company, may constitute forward looking information (collectively, "forward-looking statements"), which can be identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue" or "believe" (or the negatives) or other similar variations. Because of various risks and uncertainties, including those referenced below, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. As a result, you should not rely on such forward-looking statements. Additional information identifying assumptions, risks and uncertainties relating to Kadestone is contained in Kadestone's filings with the Canadian securities regulators available at www.sedarplus.ca. These risks include those described in the "Risk Factors" section of the Company's final prospectus dated September 2, 2020, and in the Management's Discussion and Analysis for the years ended December 31, 2025 and 2024. The forward-looking statements in this press release are applicable only as of the date of this release or as of the date specified in the relevant forward-looking statement. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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