VANCOUVER, British Columbia, Nov. 22, 2018 (GLOBE NEWSWIRE) -- Novoheart Holdings Inc. (“Novoheart” or the “Company”) reports financial results for the three months ended September 30, 2018. Amounts, unless specified otherwise, are expressed in Canadian dollars and are in accordance with International Financial Reporting Standards (IFRS).
Q1 2019 Highlights:
- Entered into a $2.2M Service Agreement with Xellera Therapeutics Limited
- Selected as one of the 'Top 50 of Innovative Biotechnology Enterprise in Greater Bay Area’
- Showcased at the Annual Safety Pharmacology Society Meeting
- Recruited a notable Pharma Industry Executive, Bernard Fermini, Ph.D. as Chief R&D Officer
- Appointed a new Senior Vice President to lead Commercial Development
Financial Results for the First Quarter of 2019
The Company recorded net loss of $1,949,801 (loss per share of $0.02) for the three months ended September 30, 2018 compared to a net loss of $6,272,569 (loss per share of $0.58) for the three months ended September 30, 2017. The decrease in the net loss was due primarily to the completion of the reverse takeover transaction that occurred in the first quarter of 2018, for which the Company incurred a non-cash loss on completion of reverse takeover of $5,213,597, offset by the Company’s increases in operating expenses compared to the three months ended September 30, 2017.
Operating Expenses
Operating expenses for the three months ended September 30, 2018 was $1,975,684 compared to $1,083,466 for the three months ended September 30, 2017. The increase in operating expenses is primarily due to the increase in marketing expenses and shared-based compensation expenses for the three months ended September 30, 2018. The increase in marketing expenses is primarily due to the focus of the Company to expand the commercialization of its MyHeartTM platform, along with the hiring of the Senior Vice President Commercial Development in August 2018 to lead the effort. For share-based compensation expenses, there was minimal share-based compensation for the three months ended September 30, 2017 as the stock options were only granted upon the Company being listed on September 27, 2017.
Liquidity and Outstanding Share Capital
As at September 30, 2018, the Company had cash of $503,490. The Company entered into a $2.2m service agreement with Xellera Therapeutics Limited on October 31, 2018, from which the Company received an upfront payment of $248,344 upon signing and received a second payment of $1,076,159 on November 19, 2018. As at November 23, 2018, there were 93,462,025 common shares issued and outstanding, and 6,977,098 common shares issuable upon the exercise of outstanding stock options (of which none are exercisable) at an exercise price of C$0.50 per share and the issuance of vested restricted share units. The Company also has 972,037 purchase warrants outstanding with an exercise price of C$0.50, expiring in September 2019.
ABOUT NOVOHEART HOLDINGS INC.
Novoheart is a global stem cell biotechnology company dedicated to human heart engineering with offices and laboratories in the United States, Canada and Hong Kong. Novoheart’s scientific team has pioneered a range of bioengineering technologies collectively known as the MyHeartTM platform, including the world’s first human mini-heart “novoHeartTM” (otherwise known as a “human heart-in-a-jar”) that is fully capable of pumping and ejecting fluid. Novoheart believes that its proprietary platform uniquely positions the Company to enter into commercial partnerships with leading pharmaceuticals and research institutions to deliver pre-clinical cardiotoxicity screening and to develop custom-tailored engineered heart constructs for disease modeling and drug discovery. Novoheart also believes that the MyHeartTM platform is well-positioned for the potential development of cell-based cardiac regenerative therapies with superior safety and efficacy.
Common shares of Novoheart is traded on the TSX Venture Exchange under the symbol “NVH”.
For further information please contact:
Novoheart Holdings Inc.
Suite 1430, 800 West Pender Street
Vancouver, British Columbia
V6C 2V6
Iris Lo
Chief Financial Officer
+1 604-398-3170
Christian Darbyshire
Media Relations
+1 587-352-5053
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; statements about the Company’s future plans, its goals and expectations, and the potential applications its MyHeartTM platform are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risks identified in the management discussion and analysis section of Novoheart Holdings Inc.’s interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the respective companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
NOVOHEART HOLDINGS INC.
(Formerly Novoheart Holdings Limited)
Condensed Consolidated Interim Statement of Financial Position (unaudited)
(Expressed in Canadian dollars)
| September 30, 2018 | June 30, 2018 | |||
| ASSETS | ||||
| Current | ||||
| Cash and cash equivalents | $ | 503,490 | $ | 1,595,094 |
| Accounts and other receivables | 537,877 | 615,332 | ||
| Prepaid expenses and deposits | 260,034 | 312,161 | ||
| 1,301,401 | 2,522,587 | |||
| Property and equipment, net | 1,145,110 | 1,245,981 | ||
| Intangible assets, net | 258,889 | 277,948 | ||
| Long-term prepayment | 18,438 | - | ||
| $ | 2,723,838 | $ | 4,046,516 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current | ||||
| Accounts payable and accrued liabilities | $ | 1,359,452 | $ | 1,357,713 |
| Due to related parties | 38,274 | 60,684 | ||
| 1,397,726 | 1,418,397 | |||
| Deferred government grants | 35,905 | 40,648 | ||
| Long-term license payable | 76,911 | 75,424 | ||
| 1,510,542 | 1,534,469 | |||
| Shareholders' Equity | ||||
| Share capital | 17,426,693 | 17,426,693 | ||
| Contributed surplus | 2,116,498 | 1,493,175 | ||
| Accumulated other comprehensive income | 330,988 | 303,261 | ||
| Accumulated deficit | (18,660,883) | (16,711,082) | ||
| 1,213,296 | 2,512,047 | |||
| $ | 2,723,838 | $ | 4,046,516 | |
NOVOHEART HOLDINGS INC.
(Formerly Novoheart Holdings Limited)
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (unaudited)
(Expressed in Canadian dollars, except number of common shares)
| Three months ended | |||||||
| September 30, 2018 | September 30, 2017 | ||||||
| OPERATING EXPENSES | |||||||
| Research and development | $ | 359,277 | $ | 263,659 | |||
| Intellectual property and patent | 41,569 | 257,558 | |||||
| General and administrative | 547,204 | 539,394 | |||||
| Marketing | 240,465 | - | |||||
| Share-based compensation | 623,323 | 4,722 | |||||
| Depreciation and amortization | 163,846 | 18,133 | |||||
| 1,975,684 | 1,083,466 | ||||||
| LOSS FROM OPERATIONS | (1,975,684) | (1,083,466) | |||||
| Government grants | 23,869 | 5,377 | |||||
| Other (loss) / income | (344) | 56,809 | |||||
| Interest income / (finance expense) | 1,697 | (505) | |||||
| Foreign exchange gain / (loss) | 661 | (37,187) | |||||
| Non-cash loss on completion of reverse takeover | - | (5,213,597) | |||||
| 25,883 | (5,189,103 | ||||||
| NET LOSS FOR THE PERIOD | $ | (1,949,801) | $ | (6,272,569) | |||
| OTHER COMPREHENSIVE INCOME (LOSS) | |||||||
| Foreign currency translation adjustment | 27,727 | (40,825 | |||||
| COMPREHENSIVE LOSS FOR THE PERIOD | $ | (1,922,074) | $ | (6,313,394) | |||
| Loss per share – Basic and Diluted | $ | (0.02) | $ | (0.58) | |||
| Weighted average number of shares outstanding – basic and diluted | 93,462,025 | 10,759,805 | |||||
NOVOHEART HOLDINGS INC.
(Formerly Novoheart Holdings Limited)
Condensed Consolidated Interim Statements of Cash Flow (unaudited)
(Expressed in Canadian dollars)
| For the three months ended | September 30, 2018 | September 30, 2017 | |||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||
| Net loss for the period | $ | (1,949,801) | $ | (6,272,569) | |
| Items not affecting cash: | |||||
| Non-cash loss on completion of reverse takeover | - | 5,213,597 | |||
| Share-based compensation | 623,323 | 4,722 | |||
| Depreciation and amortization | 163,846 | 18,133 | |||
| (1,162,632) | (1,036,117) | ||||
| Changes in non-cash working capital items: | |||||
| Increase in accounts and other receivables | 87,385 | 55,948 | |||
| Decrease/(increase) in prepaid expenses | 55,640 | (113,186) | |||
| Increase in accounts payable and accrued liabilities | (17,603) | 107,953 | |||
| Increase/(decrease) in due to related parties | (25,885 | 115,170 | |||
| Decrease in deferred government grants | (5,583) | (5,377) | |||
| 93,954 | 160,508 | ||||
| Net cash used in operating activities | (1,068,678) | (875,609) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||
| Acquisition of equipment and payment of leasehold improvements | (12,792) | (7,105) | |||
| Prepayment for equipment | (18,438) | (244,178) | |||
| Net cash used in investing activities | (31,230) | (251,283) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||
| Proceeds from share issuance, net | - | 6,663,982 | |||
| Cash acquired in RTO | - | 112,662 | |||
| Net cash provided by financing activities | - | 6,776,644 | |||
| Change in cash during the period | (1,009,908) | 5,649,752 | |||
| Effect of exchange rate changes on cash held in a foreign currency | 8,304 | (14,926) | |||
| Cash and cash equivalents, beginning of period | 1,595,094 | 1,319,748 | |||
| Cash and cash equivalents, end of period | $ | 503,490 | $ | 6,954,574 | |