10:53 AM EDT, 05/15/2024 (MT Newswires) -- Axis Auto Finance (AXIS.TO), a financial technology company, on Wednesday said third quarter adjusted loss narrowed versus the year earlier period, as revenue stayed constant.

The company's adjusted loss fell to $1.4 million, or $0.012 per share, from near $4 million or $0.032 per share, last year. Net loss of $2.1 million compares with a net loss of $4.7 million.

Axis reported revenues of $9.7 million in the quarter, unchanged from the prior year. It had total originations of $21.2 million, consisting of $4.5 million in automotive originations and $16.7 million in equipment originations. Auto loan origination of $4.5 million was down from $32.4 million last year, as credit and underwriting parameters continued to be tightened. Axis did not originate any near prime volumes managed for Westlake Financial Services. Equipment finance origination volumes in the quarter were $16.7 million, a 21.9% decline from $21.3 million in the comparable quarter of 2023.

On its strategic review, the company has entered into non-binding letters of intent with two unrelated parties for potential sales of the auto finance and equipment finance businesses. The counterparties are in the process of completing their due diligence. Axis management hope to be in position to enter into definitive agreements in respect to the auto finance and equipment finance business by the fiscal year ended June 30. "There can be no assurances that either or both of the transactions will be completed or that any successful transaction will result from the strategic process. The company will provide further updates on the process as developments warrant".