NovaBay Pharmaceuticals Reports Third Quarter 2020 Financial Results

NovaBay Pharmaceuticals Reports Third Quarter 2020 Financial Results

  • Revenue increased 34% versus prior year
  • Avenova® unit sales set quarterly record
  • Exited Q3 with $13.4 million in cash and equivalents
  • Regained compliance with NYSE American continued-listing standards
  • Launches CelleRx® Clinical Reset™ into beauty market

Conference call begins at 4:30 p.m. Eastern time today

EMERYVILLE, Calif.–(BUSINESS WIRE)–NovaBay® Pharmaceuticals, Inc. (NYSE American: NBY) reports financial results for the three and nine months ended September 30, 2020 and provides a business update.

“This is an exceptionally exciting time at NovaBay as Avenova unit sales set a new quarterly record and we prepare for the consumer launch of CelleRx Clinical Reset into the beauty market,” said Justin Hall, President and CEO of NovaBay Pharmaceuticals. “Product revenue for the quarter increased 34% to $2.2 million from the prior year, with Avenova revenue reaching its highest level since we introduced the direct-to-consumer channel. Online sales of Avenova Direct continued as the fastest-growing channel driven by our successful digital marketing programs featuring lifestyle messaging and increased customer outreach. Sales from our buy-and-sell channel also surged in recent months with the reopening of doctors’ offices across the country.

“Our groundbreaking product CelleRx Clinical Reset creates a new category in skin care,” he added. “Previously we marketed CelleRx to only medical professionals without targeting the consumer market. With a completely new marketing approach for CelleRx Clinical Reset, we intend to leverage our pharmaceutical pedigree in the beauty industry. Clinical Reset disrupts the layer of bacteria that settles and grows on the face, yet is a gentle way to get skin back to a healthy baseline to heal itself and to better absorb skincare products. Clinical Reset’s unveiling will include robust social media and print advertising campaigns targeted directly to the consumer market. Initial sales will be through our newly designed website, cellerx.com.

“We exited the quarter with our strongest cash position since the commercial launch of Avenova in 2015 and have sufficient funds to support current operations through full year 2021, including our enhanced online advertising programs for Avenova and the consumer launch of CelleRx Clinical Reset. We raised $6.4 million in the third quarter from the renegotiation of warrants, which also enabled us to regain compliance with NYSE American continued-listing requirements,” Mr. Hall added. “I’m proud of our many recent accomplishments as they position NovaBay for a bright future.

“We continue actively working with the U.S. Food and Drug Administration (FDA) on a number of items. Our application for Emergency Use Authorization (EUA) to sell the fluorecare® rapid COVID-19 antibody test is still under review and we have successfully remediated the recent Warning Letter regarding our COVID-19 Avenova marketing. Lastly, we continue to work with the Environmental Protection Agency (EPA) on the inclusion of Avenova on its list of approved disinfectants that kill the COVID-19 virus on hard surfaces,” concluded Mr. Hall.

Third Quarter Financial Results

Net product revenue for the third quarter of 2020 was $2.2 million, a 34% increase from $1.6 million for the third quarter of 2019. Avenova revenue for the third quarter of 2020 was $1.8 million, a 14% increase from $1.6 million for the third quarter of 2019. The increase reflects a higher number of Avenova Direct and buy-and-sell units sold, partially offset by a decrease in the number of units sold through our retail and partner pharmacy channels. The increase in revenue due to unit sales was partially offset by the lower average net selling price associated with Avenova Direct units. Net product revenue for the third quarter of 2020 also includes $0.2 million from the sales of a PhaseOne, a private-label prescription skin and wound care product, with no comparable revenue in the prior-year period.

Gross margin on net product revenue remained unchanged at 75% for the third quarters of 2020 and 2019.

Operating expenses for the third quarter of 2020 were $3.7 million, compared with $2.9 million for the third quarter of 2019. Sales and marketing expenses for the third quarter of 2020 were $1.7 million, compared with $1.5 million for the third quarter of 2019, reflecting an increase in Avenova digital advertising and costs associated with the consumer launch of CelleRx Clinical Reset, partially offset by lower headcount-related costs and lower travel and related expenses due to the impact of COVID-19. General and administrative (G&A) expenses for the third quarter of 2020 were $1.9 million, compared with $1.3 million for the third quarter of 2019, with the increase due to higher legal fees and the cost of the McGovern arbitration. Research and development (R&D) expenses for the third quarter of 2020 were $125,000, compared with $49,000 for the third quarter of 2019.

Operating loss for the third quarter of 2020 was $2.1 million, compared with the operating loss of $1.7 million for the third quarter of 2019.

Non-cash loss on the change of fair value of warrant liability for the third quarter of 2020 was $1.6 million, compared with a non-cash gain of $1.5 million for the third quarter of 2019.

Non-cash gain from adjustments to the fair value of an embedded derivative liability for the third quarter of 2020 was $1,000, compared with $0.7 million for the third quarter of 2019.

Other income, net, for the third quarter of 2020 of $0.4 million is primarily related to qualified expenses incurred under the Paycheck Production Program. This compares with other expense, net, of $0.7 million for the third quarter of 2019, which was due primarily to interest expense recognized on a convertible note that was settled prior to the end of the third quarter of 2020.

The net loss for the third quarter of 2020 was $3.2 million, or $0.08 per share, compared with a net loss for the third quarter of 2019 of $282,000, or $0.01 per share.

Nine Month Financial Results

Net product revenue for the nine months ended September 30, 2020 was $8.0 million, a 66% increase from $4.9 million for the nine months ended September 30, 2019. Gross margin on net product revenue was 61% for the first nine months of 2020, compared with 77% for the first nine months of 2019.

For the nine months ended September 30, 2020, sales and marketing expenses decreased 29% to $4.7 million, G&A expenses of $4.6 million increased 12% and R&D expenses of $0.2 million were relatively unchanged, compared with the nine months ended September 30, 2019.

Operating loss for the first nine months of 2020 was $4.7 million, a 35% improvement from the operating loss of $7.2 million for the first nine months of 2019.

Non-cash loss on the change of fair value of warrant liability for the first nine months of 2020 was $5.2 million, compared with a non-cash gain of $0.9 million for the first nine months of 2019.

Non-cash gain from adjustments to the fair value of an embedded derivative liability for the nine months ended September 30, 2020 was $3,000, compared with $0.4 million for the nine months ended September 30, 2019.

Other income, net, for the first nine months of 2020 was $0.6 million, compared with other expense, net, for the first nine months of 2019 of $1.2 million.

The net loss for the nine months ended September 30, 2020 was $9.3 million, or $0.28 per share, compared with a net loss for the nine months ended September 30, 2019 of $7.0 million, or $0.36 per share.

NovaBay reported cash and cash equivalents of $13.4 million as of September 30, 2020, compared with $6.9 million as of December 31, 2019. The Company raised net proceeds of $5.2 million from the sale of common stock through an ATM agreement during the quarter ended June 30, 2020 and $6.4 million from the renegotiation of warrants during the quarter ended September 30, 2020.

Conference Call

NovaBay management will host an investment community conference call today beginning at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss the Company’s financial and operational results and to answer questions. Shareholders and other interested parties may participate in the conference call by dialing 866-677-7731 from within the U.S. or 480-405-6745 from outside the U.S., and requesting the NovaBay Pharmaceuticals call.

A live webcast of the call will be available at http://novabay.com/investors/events and will be archived for 90 days. A replay of the call will be available beginning two hours after the call ends through 11:59 p.m. Eastern time November 26, 2020 by dialing 855-859-2056 from within the U.S. or 404-537-3406 from outside the U.S., and entering the conference identification number 8439986.

About NovaBay Pharmaceuticals, Inc.: Going Beyond Antibiotics®

NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company focusing on commercializing and developing its non-antibiotic anti-infective products to address the unmet therapeutic needs of the global, topical anti-infective market with its two distinct product categories: the NEUTROX® family of products and the AGANOCIDE® compounds. The Neutrox family of products includes AVENOVA® for the eye care market, CELLERX® for the aesthetic dermatology market and NEUTROPHASE® for the wound care market. The Aganocide compounds, still under development, have target applications in the dermatology and urology markets.

Forward-Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements about the commercial progress and future financial performance of NovaBay Pharmaceuticals, Inc. This release contains forward-looking statements that are based upon management’s current expectations, assumptions, estimates, projections and beliefs. These statements include, but are not limited to, statements regarding our business strategies and current product offerings, potential future product offerings, possible regulatory clearance of any of our products or future products, and any future revenue that may result from selling these products, as well as generally the Company’s expected future financial results. These forward-looking statements are identified by the use of words such as “launch,” “leverage,” “position,” and “continue,” among others. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or achievements to be materially different and adverse from those expressed in or implied by the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, risks and uncertainties relating to the size of the potential market for our products, the possibility that the available market for the Company’s products will not be as large as expected, the Company’s products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet the Company’s cash needs, the effect on sales and potential reputational damage resulting from decisions or actions taken by regulators, including Warning Letters issued by the FDA, and any other potential regulatory problems that may arise. Other risks relating to NovaBay’s business, including risks that could cause results to differ materially from those projected in the forward-looking statements in this press release, are detailed in NovaBay’s latest Form 10-Q/K filings with the Securities and Exchange Commission, especially under the heading “Risk Factors.” The forward-looking statements in this release speak only as of this date, and NovaBay disclaims any intent or obligation to revise or update publicly any forward-looking statement except as required by law.

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Avenova Purchasing Information

For NovaBay Avenova purchasing information:

Please call 800-890-0329 or email [email protected].

www.Avenova.com

Financial tables to follow

NOVABAY PHARMACEUTICALS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value amounts)

 

 

 

September 30,

 

December 31,

 

 

2020

 

2019

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

13,413

 

 

$

6,937

 

Accounts receivable, net of allowance for doubtful accounts ($0 and $51 at September 30, 2020 and December 31, 2019, respectively)

 

 

1,119

 

 

 

1,066

 

Inventory, net of allowance for excess and obsolete inventory and lower of cost or estimated net realizable value adjustments ($194 and $247 at September 30, 2020 and December 31, 2019, respectively)

 

 

785

 

 

 

492

 

Prepaid expenses and other current assets

 

 

695

 

 

 

886

 

Total current assets

 

 

16,012

 

 

 

9,381

 

Operating lease right-of-use assets

 

 

518

 

 

 

1,252

 

Property and equipment, net

 

 

76

 

 

 

110

 

Other assets

 

 

476

 

 

 

477

 

TOTAL ASSETS

 

$

17,082

 

 

$

11,220

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Liabilities:

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

796

 

 

$

331

 

Accrued liabilities

 

 

1,655

 

 

 

1,778

 

Operating lease liabilities

 

 

400

 

 

 

930

 

Note payable, related party

 

 

104

 

 

 

1,202

 

Convertible note

 

 

 

 

 

1,409

 

Other current liabilities

 

 

48

 

 

 

37

 

Total current liabilities

 

 

3,003

 

 

 

5,687

 

Operating lease liabilities-non-current

 

 

197

 

 

 

505

 

Warrant liability

 

 

 

 

 

4,055

 

Total liabilities

 

 

3,200

 

 

 

10,247

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock: 5,000 shares authorized; none issued and outstanding at September 30, 2020 and December 31, 2019

 

 

 

 

 

 

Common stock, $0.01 par value; 75,000 shares and 50,000 shares authorized at September 30, 2020 and December 31, 2019, respectively; 41,760 and 27,938 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

 

 

417

 

 

 

279

 

Additional paid-in capital

 

 

147,774

 

 

 

125,718

 

Accumulated deficit

 

 

(134,309

)

 

 

(125,024

)

Total stockholders’ equity

 

 

13,882

 

 

 

973

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

17,082

 

 

$

11,220

 

NOVABAY PHARMACEUTICALS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(in thousands except per share data)

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

2020

 

2019

 

2020

 

2019

Sales:

 

 

 

 

 

 

 

 

Product revenue, net

 

$

2,167

 

 

$

1,615

 

 

$

8,038

 

 

$

4,854

 

Other revenue, net

 

 

3

 

 

 

 

 

 

8

 

 

 

41

 

Total sales, net

 

 

2,170

 

 

 

1,615

 

 

 

8,046

 

 

 

4,895

 

 

 

 

 

 

 

 

 

 

Product cost of goods sold

 

 

536

 

 

 

401

 

 

 

3,157

 

 

 

1,145

 

Gross profit

 

 

1,634

 

 

 

1,214

 

 

 

4,889

 

 

 

3,750

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

125

 

 

 

49

 

 

 

249

 

 

 

166

 

Sales and marketing

 

 

1,692

 

 

 

1,544

 

 

 

4,675

 

 

 

6,610

 

General and administrative

 

 

1,879

 

 

 

1,333

 

 

 

4,633

 

 

 

4,136

 

Total operating expenses

 

 

3,696

 

 

 

2,926

 

 

 

9,557

 

 

 

10,912

 

Operating loss

 

 

(2,062

)

 

 

(1,712

)

 

 

(4,668

)

 

 

(7,162

)

 

 

 

 

 

 

 

 

 

Non-cash (loss) gain on changes in fair value of warrant liability

 

 

(1,589

)

 

 

1,480

 

 

 

(5,224

)

 

 

936

 

Non-cash gain on changes in fair value of embedded derivative liability

 

 

1

 

 

 

669

 

 

 

3

 

 

 

423

 

Other income (expense), net

 

 

429

 

 

 

(719

)

 

 

605

 

 

 

(1,166

)

 

 

 

 

 

 

 

 

 

Loss before provision for income taxes

 

 

(3,221

)

 

 

(282

)

 

 

(9,284

)

 

 

(6,969

)

Provision for income taxes

 

 

 

 

 

 

 

 

(1

)

 

 

(3

)

Net loss and comprehensive loss

 

$

(3,221

)

 

$

(282

)

 

$

(9,285

)

 

$

(6,972

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders (basic)

 

$

(0.08

)

 

$

(0.01

)

 

$

(0.28

)

 

$

(0.36

)

Net loss per share attributable to common stockholders (diluted)

 

$

(0.08

)

 

$

(0.02

)

 

$

(0.28

)

 

$

(0.36

)

Weighted-average shares of common stock outstanding used in computing net loss per share of common stock (basic)

 

 

40,037

 

 

 

23,096

 

 

 

32,614

 

 

 

19,623

 

Weighted-average shares of common stock outstanding used in computing net loss per share of common stock (diluted)

 

 

40,067

 

 

 

23,213

 

 

 

32,642

 

 

 

19,623

 

 

NovaBay Contact
Justin Hall

Chief Executive Officer and General Counsel

510-899-8800

[email protected]

Investor Contact
LHA Investor Relations

Jody Cain

310-691-7100

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Biotechnology Infectious Diseases Health Pharmaceutical Optical

MEDIA:

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Alpine Immune Sciences Reports Third Quarter 2020 Financial Results and Provides Corporate Update

Alpine Immune Sciences Reports Third Quarter 2020 Financial Results and Provides Corporate Update

– Conference call and webcast today at 4:30 p.m. ET –

SEATTLE–(BUSINESS WIRE)–
Alpine Immune Sciences, Inc. (NASDAQ:ALPN), a leading clinical-stage immunotherapy company focused on developing innovative treatments for cancer and autoimmune / inflammatory diseases, today provided a corporate update and reported financial results for the third quarter ended September 30, 2020.

“Over the last quarter, we built upon the strong momentum created from our option and license agreement with AbbVie for worldwide rights to ALPN-101, by completing an additional private financing with top-tier biotech investors led by Omega Funds, among others,” said Mitch Gold, executive chair and chief executive officer. “These transformative deals have provided us the capital to continue progressing our multiple product candidates through clinical trials.”

Third Quarter 2020 and Subsequent Updates

  • Raised $60 Million in a Private Placement. In July, Alpine raised $60 million in gross proceeds through a private placement led by Omega Funds with participation from Avidity Partners, EcoR1 Capital, LLC, Invus Public Equities, L.P., and Samsara BioCapital, among others. Alpine intends to use the net proceeds to fund the development of its clinical and preclinical pipeline as well as for general corporate purposes.
  • Preparation for a Phase 2 study of ALPN-101 in systemic lupus erythematosus (SLE). Alpine and AbbVie have agreed on the design of an international Phase 2 study of ALPN-101 in adults with active lupus, anticipated to commence enrollment in the first half of 2021. SLE is a potentially life-threatening, multi-system, chronic autoimmune disease with few approved treatment options. As previously announced, ALPN-101 is the subject of an option and licensing agreement with AbbVie.
  • Continued enrollment in NEON-1, a Phase 1 study of ALPN-202 in advanced malignancies. Enrollment is ongoing in the dose escalation portion of NEON-1, a Phase 1, first-in-human monotherapy study of ALPN-202, a first-in-class conditional CD28 costimulator and dual checkpoint inhibitor.

Financial Highlights

  • As of September 30, 2020, Alpine had cash, cash equivalents, restricted cash, and short-term investments totaling $141.3 million.
  • Revenue was $1.9 million for the quarter ended September 30, 2020 compared to $0.3 million in the quarter ended September 30, 2019.
  • Research and development expenses for the third quarter ended September 30, 2020 were $6.2 million compared to $9.5 million for the third quarter ended September 30, 2019.
  • General and administrative expenses for the third quarter ended September 30, 2020 were $2.7 million compared to $2.5 million for the third quarter ended September 30, 2019.
  • Alpine recorded a net loss of $6.1 million and $11.5 million for the third quarters ended September 30, 2020 and 2019, respectively.

As of September 30, 2020, Alpine had $141.3 million in cash, cash equivalents, restricted cash, and short-term investments. Alpine expects that its current cash resources, combined with the potential $75 million in pre-option exercise milestones payable under its option and license agreement with AbbVie, for the development and commercialization of ALPN-101, are sufficient to fund Alpine’s planned operations into 2024, including a planned Phase 2 study of ALPN-101 in systemic lupus erythematosus and the further development of ALPN-202 and ALPN-303.

For additional information regarding Alpine’s planned operations, please refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation – Liquidity and Capital Resources” in Alpine’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, which Alpine anticipates filing with the Securities and Exchange Commission on or about November 12, 2020.

Conference Call

Individuals interested in listening to the conference call may do so by dialing (800) 816-3005 for domestic callers, or (857) 770-0069 for international callers, and using the conference ID: 4382628; or from the webcast link in the investor relations section of the company’s website at: www.alpineimmunesciences.com. The recorded webcast will be available for replay for approximately 30 days following the call.

About Alpine Immune Sciences, Inc.

Alpine Immune Sciences, Inc. is committed to leading a new wave of immune therapeutics. With world-class research and development capabilities, a highly productive scientific platform, and a proven management team, Alpine is creating multifunctional immunotherapies via unique protein engineering technologies designed to improve patients’ lives. For more information, visit www.alpineimmunesciences.com. Follow @AlpineImmuneSci on Twitter and LinkedIn.

“Secreted Immunomodulatory Proteins”, “SIP”, “Transmembrane Immunomodulatory Protein,” “TIP,” “Variant Ig Domain,” “vIgD” and the Alpine logo are registered trademarks or trademarks of Alpine Immune Sciences, Inc. in various jurisdictions.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not based on historical fact and include statements regarding our platform technology and potential therapies, the timing of and results from clinical trials and preclinical development activities, clinical and regulatory objectives and the timing thereof, expectations regarding the sufficiency of cash combined with the potential $75 million in pre-option exercise milestones payable under our option and license agreement with AbbVie to fund operations into 2024, the potential efficacy, safety profile, future development plans, addressable market, regulatory success, and commercial potential of our product candidates, our ability to achieve milestones in our collaboration with AbbVie, the progress and potential of our other ongoing development programs, the timing of our public presentations and potential publication of future clinical data, the efficacy of our clinical trial designs, anticipated enrollment in our clinical trials and the timing thereof, expectations regarding our ongoing collaborations, our anticipated use of the net proceeds from our July 2020 financing and our ability to successfully develop and achieve milestones in our development programs. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions and include words such as “may,” “will,” “should,” “would,” “expect,” “plan,” “intend,” and other similar expressions, among others. These forward-looking statements are based on current assumptions that involve risks, uncertainties, and other factors that may cause actual results, events, or developments to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties, many of which are beyond our control, include, but are not limited to: the impact of the COVID-19 pandemic on our business, research and clinical development plans and timelines and results of operations, including the impact on our clinical trial sites, collaborators, and contractors who act for or on our behalf, may be more severe and prolonged than currently anticipated; clinical trials may not demonstrate safety and efficacy of any of our product candidates; our ongoing discovery and preclinical efforts may not yield additional product candidates; our discovery-stage and preclinical programs may not advance into the clinic or result in approved products; any of our product candidates may fail in development, may not receive required regulatory approvals, or may be delayed to a point where they are not commercially viable; we may not achieve additional milestones in our proprietary or partnered programs; the impact of competition; adverse conditions in the general domestic and global economic markets; as well as the other risks identified in our filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof and we undertake no obligation to update forward-looking statements, and readers are cautioned not to place undue reliance on such forward-looking statements.

Alpine Immune Sciences, Inc.

Selected Consolidated Balance Sheet Data

(In thousands)

 

 

September 30, 2020

 

December 31, 2019

 

 

(unaudited)

 

 

Cash and cash equivalents

 

$

141,075

 

 

$

16,123

 

Short-term investments

 

 

 

24,397

 

Total current assets

 

142,550

 

 

42,302

 

Total assets

 

154,033

 

 

54,093

 

Total current liabilities

 

35,849

 

 

8,681

 

Total stockholders’ equity

 

67,468

 

 

29,474

 

Total liabilities and stockholders’ equity

 

154,033

 

 

54,093

 

Consolidated Statement of Operations and

Comprehensive Income (Loss) Data

 

 

 

 

 

 

 

(In thousands, except share and per share amounts)

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

(unaudited)

Collaboration revenue

$

1,913

 

 

 

$

289

 

 

 

$

3,692

 

 

 

$

856

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

6,156

 

 

 

9,532

 

 

 

18,130

 

 

 

30,048

 

 

General and administrative

2,728

 

 

 

2,467

 

 

 

7,850

 

 

 

7,365

 

 

Total operating expenses

8,884

 

 

 

11,999

 

 

 

25,980

 

 

 

37,413

 

 

Loss from operations

(6,971

)

 

 

(11,710

)

 

 

(22,288

)

 

 

(36,557

)

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense

(214

)

 

 

(66

)

 

 

(560

)

 

 

(197

)

 

Interest income

11

 

 

 

301

 

 

 

202

 

 

 

1,042

 

 

Other income

1,037

 

 

 

 

 

 

1,042

 

 

 

 

 

Loss before taxes

(6,137

)

 

 

(11,475

)

 

 

(21,604

)

 

 

(35,712

)

 

Income tax benefit

 

 

 

 

 

 

6

 

 

 

 

 

Net loss

$

(6,137

)

 

 

$

(11,475

)

 

 

$

(21,598

)

 

 

$

(35,712

)

 

Comprehensive income (loss):

 

 

 

 

 

 

 

Unrealized gain (loss) on investments

 

 

 

5

 

 

 

(16

)

 

 

37

 

 

Unrealized gain (loss) on foreign currency translation

14

 

 

 

(7

)

 

 

(35

)

 

 

(17

)

 

Comprehensive loss

$

(6,123

)

 

 

$

(11,477

)

 

 

$

(21,649

)

 

 

$

(35,692

)

 

Weighted-average shares used to compute basic and diluted net loss per share

22,277,146

 

 

 

18,586,950

 

 

 

19,826,985

 

 

 

18,281,707

 

 

Basic and diluted net loss per share

$

(0.28

)

 

 

$

(0.62

)

 

 

$

(1.09

)

 

 

$

(1.95

)

 

 

Alpine Immune Sciences Inc.

Contact:

Paul Rickey, Chief Financial Officer

Alpine Immune Sciences, Inc.

206-788-4545

[email protected]

Laurence Watts, Managing Director

Gilmartin Group, LLC.

619-916-7620

[email protected]

KEYWORDS: United States North America Washington

INDUSTRY KEYWORDS: Oncology Health Other Science Research Science Pharmaceutical Biotechnology

MEDIA:

Laird Superfood Appoints Scott McGuire as Chief Operating Officer

Laird Superfood Appoints Scott McGuire as Chief Operating Officer

SISTERS, Ore.–(BUSINESS WIRE)–
Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood”), today announced that Scott McGuire has been appointed Chief Operating Officer, effective November 16, 2020. Mr. McGuire joins Laird Superfood with over 30 years of operational and executive leadership experience in various CPG-related businesses. Jamie Eichman, the Company’s current COO, is transitioning to the new role of Chief Administrative Officer.

“We are thrilled to have Scott join the Laird team,” said Paul Hodge Jr., Co-founder, President and Chief Executive Officer of Laird Superfood. “Throughout his career, Scott has demonstrated a deep understanding of the CPG industry and we believe that his extensive experience in operations, supply chain management and shipping and fulfilment will be instrumental as we build Laird Superfood into a unique platform within several multi-billion dollar addressable markets. We look forward to his leadership.”

Mr. McGuire came to Laird from Bonduelle Fresh Americas, a leader in providing plant based, fresh food products. Most recently, he served as the Chief Supply Chain Officer and held various roles over the last 7 years that included Operations, S&OP, Demand Planning and Execution, Customer Service, Agriculture Purchasing and Operations, and Transportation and Logistics. Before joining Bonduelle Fresh Americas, Mr. McGuire ran his own consulting practice, Joseph Logistics and Supply Chain Solutions, where he provided consulting services for various CPG clients, including Nestlé USA. Prior to that, he served as Nestlé USA’s National Director of Logistics for the company’s Direct-Store Delivery (DSD) division. He also served as Service and Distribution Director for Pepsico’s Frito-Lay Division.

Mr. McGuire holds a bachelor’s degree in Industrial Engineering from Cal Poly San Luis Obispo.

Scott McGuire added, “It is an exciting time at Laird and it is a privilege to be working alongside Paul and his exceptional team. I look forward to applying my experience to drive the company’s growth strategy in the evolving food and beverage industry.”

About Laird Superfood

Laird Superfood, Inc. creates award-winning, plant-based superfood products that are both delicious and functional. The Company’s products are designed to enhance your daily ritual and keep consumers fueled naturally throughout the day. The Company was co-founded in 2015 by the world’s most prolific big-wave surfer, Laird Hamilton. Laird Superfood’s offerings are environmentally conscientious, responsibly tested, and made with real ingredients. Shop all products online at lairdsuperfood.com and join the Laird Superfood community on social media for the latest news and daily doses of inspiration.

ICR

Ashley DeSimone

[email protected]

KEYWORDS: United States North America Oregon New York

INDUSTRY KEYWORDS: Supermarket Retail Other Retail Food/Beverage

MEDIA:

Logo
Logo

Lyra Therapeutics to Participate in Fireside Chat at the Jefferies Virtual London Healthcare Conference

Lyra Therapeutics to Participate in Fireside Chat at the Jefferies Virtual London Healthcare Conference

WATERTOWN, Mass.–(BUSINESS WIRE)–
Lyra Therapeutics, Inc. (Nasdaq: LYRA), a clinical-stage therapeutics company focused on the development and commercialization of novel integrated drug and delivery solutions for the localized treatment of patients with ear, nose and throat (ENT) diseases, today announced that Maria Palasis, Ph.D., Lyra’s President and Chief Executive Officer, will participate in a fireside chat at the Jefferies Virtual London Healthcare Conference on Thursday, November 19, 2020 at 12:00 p.m. ET.

Interested parties can access the live audio webcast for this conference from the Investor Relations section of the company’s website at www.lyratherapeutics.com. The webcast replay will be available after the conclusion of the live presentation for approximately 30 days.

About Lyra Therapeutics

Lyra Therapeutics, Inc. is a clinical-stage therapeutics company focused on the development and commercialization of novel integrated drug and delivery solutions for the localized treatment of patients with ear, nose and throat (ENT) diseases. The company’s lead product candidate, LYR-210, is designed to deliver up to six months of continuous anti-inflammatory drug therapy to the sinonasal passages for the treatment of chronic rhinosinusitis (CRS) in patients who have not undergone surgery for the disease. Lyra is also developing LYR-220 for CRS patients who have undergone a prior surgery and have persistent disease. Beyond CRS, the company believes its XTreo™ platform, comprised of drug administered through a bioresorbable polymeric matrix, has the potential to address other disease areas by precisely, consistently and locally delivering medicines for sustained periods with a single administration.

For more information, please visit www.lyratherapeutics.com and follow us on LinkedIn and Twitter.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding the company’s lead product candidate LYR-210 and its cash balance for fiscal year ended December 31, 2020. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the fact that the company has incurred significant losses since inception and expects to incur losses for the foreseeable future; the company’s need for additional funding, which may not be available; the company’s limited operating history; the fact that the company has no approved products; the fact that the company’s product candidates are in various stages of development; the fact that the company may not be successful in its efforts to identify and successfully commercialize its product candidates; the fact that clinical trials required for the company’s product candidates are expensive and time-consuming, and their outcome is uncertain; the fact that the FDA may not conclude that certain of the company’s product candidates satisfy the requirements for the Section 505(b)(2) regulatory approval pathway; the company’s inability to obtain required regulatory approvals; effects of recently enacted and future legislation; the possibility of system failures or security breaches; effects of significant competition; the fact that the successful commercialization of the company’s product candidates will depend in part on the extent to which governmental authorities and health insurers establish coverage, adequate reimbursement levels and pricing policies; failure to achieve market acceptance; product liability lawsuits; the fact that the company relies on third parties for the manufacture of materials for its research programs, pre-clinical studies and clinical trials; the company’s reliance on third parties to conduct its preclinical studies and clinical trials; the company’s inability to succeed in establishing and maintaining collaborative relationships; the company’s reliance on certain suppliers critical to its production; failure to obtain and maintain or adequately protect the company’s intellectual property rights; failure to retain key personnel or to recruit qualified personnel; difficulties in managing the company’s growth; effects of natural disasters; the fact that the global pandemic caused by COVID-19 could adversely impact the company’s business and operations, including the company’s clinical trials; the fact that the price of the company’s common stock may be volatile and fluctuate substantially; significant costs and required management time as a result of operating as a public company and any securities class action litigation. These and other important factors discussed under the caption “Risk Factors” in the company’s Quarterly Report on Form 10-Q filed with the SEC on November 10, 2020 and its other filings with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While the company may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, even if subsequent events cause its views to change.

Investor Contact:

Laurence Watts

619-916-7620

[email protected]

Media Contact:

Kathryn Morris

914-204-6412

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Health Pharmaceutical

MEDIA:

TransAct Technologies to Present Virtually and Host 1×1 Investor Meetings at the Annual Southwest IDEAS Investor Conference on November 18th & 19th

TransAct Technologies to Present Virtually and Host 1×1 Investor Meetings at the Annual Southwest IDEAS Investor Conference on November 18th & 19th

HAMDEN, Conn.–(BUSINESS WIRE)–TransAct Technologies Incorporated (Nasdaq: TACT), a global leader in software-driven technology and printing solutions for high-growth markets, today announced Bart Shuldman, Chairman and Chief Executive Officer will participate in the virtual Southwest IDEAS Investor Conference on November 18, 2020. TransAct Technologies’ presentation will be webcasted and is scheduled to be available at 7:00 am CST on November 18th. The presentation can be accessed through the Southwest IDEAS conference portal for registered participants, in the investor relations section of the Company’s website: visit www.transact-tech.com, and on the IDEAS conference website: www.IDEASconferences.com.

About IDEAS Investor Conferences

The mission of the IDEAS Conferences is to provide independent regional venues for quality companies to present their investment merits to an influential audience of investment professionals. Unlike traditional bank-sponsored events, IDEAS Investor Conferences are “Sponsored BY the Buyside FOR the Buyside” and for the benefit of regional investment communities. Conference sponsors collectively have more than $200 billion in assets under management and include: Adirondack Research and Management, Allianz Global Investors: NFJ Investment Group, Ariel Investments, Aristotle Capital Boston, Barrow Hanley Mewhinney & Strauss, BMO Global Asset Management, Constitution Research & Management, Inc., Fidelity Investments, First Wilshire Securities Management, Inc., Gamco Investors, Granahan Investment Management, Great Lakes Advisors, Greenbrier Partners Capital Management, LLC, GRT Capital Partners, LLC, Hodges Capital Management, Ironwood Investment Management, Keeley Teton Advisors, Luther King Capital Management, Marble Harbor Investment Counsel, Perritt Capital Management, Punch & Associates, Westwood Holdings Group, Inc., and William Harris Investors.

The IDEAS Investor Conferences are held annually in Boston, Chicago and Dallas and are produced by Three Part Advisors, LLC. Additional information about the events can be located at www.IDEASconferences.com.

If interested in participating or learning more about the IDEAS conferences, please contact Lacey Wesley at (817) 769 -2373 or [email protected].

About TransAct Technologies Incorporated

TransAct Technologies Incorporated is a global leader in developing software-driven technology and printing solutions for high-growth markets including restaurant solutions, POS automation, casino and gaming, and oil and gas. The Company’s solutions are designed from the ground up based on customer requirements and are sold under the BOHA!™, AccuDate™, EPICENTRAL®, Epic®, Ithaca® and Printrex® brands. TransAct has sold over 3.3 million printers and terminals around the world and is committed to providing world-class service, spare parts and accessories to support its installed product base. Through the TransAct Services Group, the Company also provides customers with a complete range of supplies and consumable items both online at http://www.transactsupplies.com and through its direct sales team. TransAct is headquartered in Hamden, CT. For more information, please visit http://www.transact-tech.com or call (203) 859-6800.

BOHA! is a trademark of TRANSACT Technologies Incorporated. ©2020 TRANSACT Technologies Incorporated. All rights reserved.

Investor Contact:

Steve DeMartino

President and Chief Financial Officer

TransAct Technologies Incorporated

203-859-6810

Michael Bowen

ICR, Inc.

[email protected]

203-682-8299

Marc P. Griffin

ICR, Inc.

[email protected]

646-277-1290

KEYWORDS: Connecticut United States North America

INDUSTRY KEYWORDS: Software Entertainment Restaurant/Bar Oil/Gas Data Management Energy Technology General Entertainment Other Entertainment Retail Electronic Games Casino/Gaming

MEDIA:

CuriosityStream Announces Third Quarter 2020 Financial Results

CuriosityStream Announces Third Quarter 2020 Financial Results

  • Third quarter 2020 revenue of $8.7 million, up 83% year-over-year
  • Gross margin increases to 61% year-over-year from 59% in Q3 2019
  • Strengthens executive team with key industry veterans  

SILVER SPRING, Md.–(BUSINESS WIRE)–
CuriosityStream Inc. (NASDAQ: CURI), a global factual entertainment company, today announced its financial results for the third quarter ending September 30, 2020.

“We had a strong third quarter, with an 83% year-over-year increase in revenue and growth across all lines of business. Our subscribers more than doubled year over year, with notable increases in annual plans and international subscriptions, as we continued to offer fresh and unique original content every week,” said Clint Stinchcomb, President & CEO. “We continue to be on a three-year trajectory of doubling annual revenue with large recurring revenues and high gross margins as we drive growth across the entire business.”

Third Quarter 2020 Financial Results

  • Revenue of $8.7 million, up from $4.8 million in the third quarter of 2019;
  • Total paying subscribers of approximately 13 million, up 108% year-over-year;
  • Gross margin increased 200 basis points year-over-year to 61%;
  • Operating loss was $(6.8) million compared to operating loss of $(10.1) million in the third quarter of 2019;
  • EBITDA was $(6.7) million compared to EBITDA of $(10.0) million in the third quarter of 2019;
  • GAAP net loss was $(6.7) million and GAAP basic and diluted net loss per share was $(0.56);
  • Sources of cash totaled $23.3 million as of September 30, 2020.

Business Highlights

  • Closed business combination with Software Acquisition Group, Inc. (NASDAQ: SAQN) and began trading on the NASDAQ exchange under ticker symbol “CURI” on October 15, 2020, becoming the first streaming media company devoted to factual entertainment to go public;
  • Named international media executive Bakori Davis to the newly created position of Managing Director and Head of International Distribution;
  • Named industry veteran Nate Stamos VP of Brand Partnerships;
  • Appointed entertainment and cable industry pioneer Matthew Blank, former Chairman and CEO of Showtime Networks, Inc., to CuriosityStream’s Board of Directors;
  • Announced several brand-defining original series including MY WILD BACKYARD,the third season of 4th AND FOREVER, DOUG TO THE RESCUE and NATURE THROUGH HER EYES;
  • In a separate release today, CuriosityStream announced the November 19th, 2020 world premiere of the original new series BEYOND THE SPOTLIGHT from Executive Producer Leonardo DiCaprio and Appian Way Productions and Stephen David Entertainment. First episodes feature Shaquille O’Neal, Kristen Bell and Samuel L. Jackson and LaTanya Richardson Jackson.

Financial Outlook

For the fourth quarter of 2020, CuriosityStream currently expects the following:

  • Revenue of at least $11.3 million, or 69% year-over-year growth

For the full year 2020 & 2021, CuriosityStream currently expects the following:

  • 2020 revenue of at least $39.5 million, or 119% year-over-year growth
  • 2021 revenue of at least $71 million, or 80% year-over-year growth

Conference Call Information

CuriosityStream will host a Q&A conference call today to discuss the Company’s Q3 2020 results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live audio webcast of the call will be available on the CuriosityStream Investor Relations website at https://investors.curiositystream.com. A live dial-in is available domestically at (800) 585-8367 or internationally at (416) 621-4642, with passcode 9085595.

An audio replay of the conference call will be available for two weeks following the call and available on the CuriosityStream Investor Relations website at https://investors.curiositystream.com.

Forward-Looking Statements

Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, CuriosityStream’s expectations or predictions of future financial or business performance or conditions and the information under the heading “Financial Outlook” in this press release. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “predicts” or “intends” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed under “Risk Factors” in the Definitive Proxy Statement on Schedule 14A filed on September 22, 2020, and in CuriosityStream’s other SEC filings. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. Forward-looking statements are based on the current belief of the management of CuriosityStream, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and CuriosityStream is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that CuriosityStream has filed or will file from time to time with the SEC.

In addition to factors previously disclosed in CuriosityStream’s reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) the effect of the merger on CuriosityStream’s business relationships, operating results, and business generally; (ii) failure to realize the benefits expected from the merger; (iii) risks that the merger disrupts CuriosityStream’s current plans and operations and potential difficulties in CuriosityStream’s employee retention as a result of the merger; (iv) the effects of pending and future legislation; (viii) risks related to CuriosityStream’s limited operating history; (ix) the amount of the costs, fees, expenses and other charges related to the merger; (x) risks of the internet, online commerce and media industry; (xi) the highly competitive nature of the internet, online commerce and media industry and CuriosityStream’s ability to compete therein; (xii) litigation, complaints, and/or adverse publicity; (xiii) the ability to meet Nasdaq’s listing standards and (ix) privacy and data protection laws, privacy or data breaches, or the loss of data.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared in accordance with GAAP, we present EBITDA in this press release. Our use of non-GAAP financial measures has limitations as an analytical tool, and these measures should not be considered in isolation or as a substitute for analysis of financial results as reported under GAAP.

We use this non-GAAP financial measure in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including in the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. This measure provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of core operating results, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, EBITDA is widely used by investors and securities analysts to measure a company’s operating performance. We exclude the following items from one or more of our non-GAAP financial measures: other income, income taxes, and depreciation and amortization.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, (1) stock-based compensation expense has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy, (2) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, and (3) EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) or tax payments that may represent a reduction in cash available to us. The non-GAAP measure we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. A reconciliation of these non-GAAP measures has been provided in the financial statement tables included in this press release and investors are encouraged to review the reconciliation.

About CuriosityStream

Launched by media visionary John Hendricks, CuriosityStream is one of the world’s leading global factual streaming services and media companies. Our documentary series and features cover every topic from space exploration to adventure to the secret life of pets, empowering viewers of all ages to fuel their passions and explore new ones. With thousands of titles, many in Ultra HD 4K, including exclusive originals, CuriosityStream features stunning visuals and unrivaled storytelling to demystify science, nature, history, technology, society, and lifestyle. CuriosityStream programming is available worldwide to watch on TV, desktop, mobile and tablets. Find us on Roku, Apple TV Channels and Apple TV, Xbox One, Amazon Fire TV, Google Chromecast, iOS and Android, as well as Amazon Prime Video Channels, YouTube TV, Sling TV, DISH, Comcast Xfinity on Demand, Cox Communications, Altice USA, Suddenlink, T- Mobile, Frndly TV, Vidgo, Sony, LG, Samsung and VIZIO smart TVs, Liberty Global, Com Hem, MultiChoice, StarHub TV, Totalplay, Millicom, Okko, Gazprom and other global distribution partners and platforms. For more information, visit CuriosityStream.com.

CuriosityStream Inc.

Unaudited Statements of Operations

(in thousands, except for per share data)

 

 

 

For the three months ended

September 30,

 

For the nine months ended

September 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Revenues

 

$

8,744

 

 

$

4,791

 

 

$

28,260

 

 

$

11,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

3,411

 

 

 

1,946

 

 

 

10,748

 

 

 

4,384

 

Advertising and marketing

 

 

7,800

 

 

 

9,410

 

 

 

28,673

 

 

 

26,124

 

General and administrative

 

 

4,286

 

 

 

3,539

 

 

 

12,191

 

 

 

10,388

 

 

 

 

15,497

 

 

 

14,895

 

 

 

51,612

 

 

 

40,896

 

Operating loss

 

 

(6,753

)

 

 

(10,104

)

 

 

(23,352

)

 

 

(29,560

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income (expense)

 

 

101

 

 

 

475

 

 

 

519

 

 

 

1,719

 

Loss before income taxes

 

 

(6,652

)

 

 

(9,629

)

 

 

(22,833

)

 

 

(27,841

)

Provision for income taxes

 

 

41

 

 

 

30

 

 

 

118

 

 

 

103

 

Net loss

 

$

(6,693

)

 

$

(9,659

)

 

$

(22,951

)

 

$

(27,944

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Less preferred dividends and accretion of issuance costs (Note 6)

 

 

(4,523

)

 

 

(4,059

)

 

 

(13,114

)

 

 

(11,725

)

Net loss attributable to common stockholders

 

$

(11,216

)

 

$

(13,718

)

 

$

(36,065

)

 

$

(39,669

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

(0.56

)

 

 

(0.69

)

 

 

(1.80

)

 

 

(1.98

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

CuriosityStream Inc.

Balance Sheets

(in thousands, except par value)

 

 

September 30,

 

December 31,

 

 

2020

 

2019

 

 

(unaudited)

 

 

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

3,374

 

 

$

8,819

 

Restricted cash

 

 

5,000

 

 

 

 

Short-term investments

 

 

12,114

 

 

 

35,525

 

Accounts receivable

 

 

5,800

 

 

 

1,777

 

Other current assets

 

 

2,951

 

 

 

2,460

 

Total current assets

 

 

29,239

 

 

 

48,581

 

 

 

 

 

 

 

 

Investments

 

 

2,770

 

 

 

15,654

 

Property and equipment, net

 

 

1,358

 

 

 

1,451

 

Content assets, net

 

 

23,826

 

 

 

16,627

 

Other assets

 

 

2,790

 

 

 

151

 

Total assets

 

$

59,983

 

 

$

82,464

 

 

 

 

 

 

 

 

Liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Current content liabilities

 

$

2,165

 

 

$

3,306

 

Accounts payable

 

 

2,323

 

 

 

5,245

 

Accrued expenses and other liabilities

 

 

2,542

 

 

 

2,266

 

Deferred revenue

 

 

8,885

 

 

 

7,101

 

Line of credit

 

 

950

 

 

 

 

Total current liabilities

 

 

16,865

 

 

 

17,918

 

 

 

 

 

 

 

 

Non-current deferred rent liability

 

 

905

 

 

 

824

 

 

 

 

 

 

 

 

Total liabilities

 

 

17,770

 

 

 

18,742

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable convertible preferred stock, $0.01 par value, 30,000 shares authorized at September 30, 2020 and December 31, 2019; aggregate liquidation preference of $175,104 and $162,514 as of September 30, 2020 and December 31, 2019, respectively; 14,557 shares issued and outstanding at September 30, 2020 and December 31, 2019

 

 

168,288

 

 

 

155,174

 

 

 

 

 

 

 

 

Stockholders’ equity (deficit)

 

 

 

 

 

 

Class A Common stock, $0.01 par value – 50,000 shares authorized at September 30, 2020 and December 31, 2019, respectively; 14 and nil shares issued and outstanding at September 30, 2020 and December 31, 2019 respectively

 

 

 

 

 

 

Class B Common stock, $0.01 par value – 25,000 shares authorized at September 30, 2020 and December 31, 2019; 20,000 shares issued and outstanding at September 30, 2020 and December 31, 2019

 

 

200

 

 

 

200

 

Additional paid-in capital

 

 

 

 

 

 

Accumulated other comprehensive income

 

 

55

 

 

 

189

 

Accumulated deficit

 

 

(126,330

)

 

 

(91,841

)

Total stockholders’ equity (deficit)

 

 

(126,075

)

 

 

(91,452

)

 

 

 

 

 

 

 

Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)

 

$

59,983

 

 

$

82,464

 

CuriosityStream Inc.

Unaudited Statements of Cash Flows

(in thousands)

 

 

For the nine months

ended September 30,

 

 

2020

 

2019

Cash flows from operating activities

 

 

 

 

Net loss

 

$

(22,951

)

 

$

(27,944

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

Additions to content assets

 

 

(14,004

)

 

 

(12,029

)

Change in content liabilities

 

 

(1,141

)

 

 

1,241

 

Amortization of content assets

 

 

6,805

 

 

 

2,441

 

Amortization, depreciation and accretion

 

 

399

 

 

 

64

 

Stock-based compensation

 

 

1,540

 

 

 

671

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

(4,023

)

 

 

(244

)

Other assets

 

 

(773

)

 

 

945

 

Accounts payable

 

 

(3,263

)

 

 

1,460

 

Accrued expenses and other liabilities

 

 

124

 

 

 

407

 

Deferred revenue

 

 

1,784

 

 

 

1,253

 

Net cash used in operating activities

 

 

(35,503

)

 

 

(31,735

)

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Purchases of property and equipment

 

 

(299

)

 

 

(590

)

Sales of investments

 

 

39,744

 

 

 

30,309

 

Maturities of investments

 

 

8,500

 

 

 

7,947

 

Purchase of investments

 

 

(12,227

)

 

 

(48,243

)

Net cash provided by (used in) investing activities

 

 

35,718

 

 

 

(10,577

)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Exercise of stock options

 

 

36

 

 

 

 

Borrowings on line of credit

 

 

8,250

 

 

 

 

Repayments on line of credit

 

 

(7,300

)

 

 

 

Payment of offering costs

 

 

(1,646

)

 

 

 

Net cash used in financing activities

 

 

(660

)

 

 

 

 

 

 

 

 

 

 

Net decrease in cash, cash equivalents and restricted cash

 

 

(445

)

 

 

(42,312

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

8,819

 

 

 

62,516

 

Cash, cash equivalents and restricted cash, end of period

 

$

8,374

 

 

$

20,204

 

 

 

 

 

 

 

 

Supplemental schedule of non-cash financing activities:

 

 

 

 

 

 

Preferred dividends and accretion of issuance costs

 

$

13,114

 

 

$

11,725

 

Reconciliation of GAAP Financial Metrics to Non-GAAP
(in thousands)
(unaudited)
 
Reconciliation of Net Loss to EBITDA
 

For the three months ended

September 30,

 

For the nine months ended

September 30,

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

 
Net loss

$

(6,693

)

$

(9,659

)

$

(22,951

)

$

(27,944

)

Other income

 

(101

)

 

(475

)

 

(519

)

 

(1,719

)

Income taxes

 

41

 

 

30

 

 

118

 

 

103

 

Depreciation and amortization

 

83

 

 

63

 

 

256

 

 

170

 

EBITDA

$

(6,670

)

$

(10,041

)

$

(23,096

)

$

(29,390

)

 

CuriosityStream Public Relations:

Vanessa Gillon

[email protected]

CuriosityStream Investor Relations:

Denise Garcia

[email protected]

KEYWORDS: United States North America Maryland

INDUSTRY KEYWORDS: Film & Motion Pictures Online General Entertainment Entertainment TV and Radio

MEDIA:

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Laird Superfood Reports Third Quarter 2020 Financial Results

Laird Superfood Reports Third Quarter 2020 Financial Results

Net Sales Increased to $7.6 Million, up 118% Year-Over-Year

Completed Initial Public Offering, Raising $64.1 Million of Net Cash

National Roll Out of Laird Superfood Liquid Creamer in Q320

SISTERS, Ore.–(BUSINESS WIRE)–
Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood”), today reported financial results for its third quarter ended September 30, 2020.

Third Quarter 2020 Highlights

  • Net Sales increased to $7.6 million, an increase of 118% year over year.
  • Online sales contributed 49% of net sales, with lairdsuperfood.com sales growing 115% year over year.
  • Wholesale sales contributed 50%, increasing 223% year over year, as retail door expansion reached approximately 7,200 locations.
  • Liquid creamer rolled out to more than 1,200 locations, including Whole Foods and Kroger.
  • Gross profit was $1.9 million and gross margin was 24.7%, compared to gross profit of $1.5 million and a gross margin of 41.9% in the prior year period.
  • Net loss attributable to common stockholders was $4.0 million, or $0.86 per diluted share, compared to net loss of $2.4 million, or $0.66 per diluted share in the prior year period.

Paul Hodge Jr., Co-founder, President and Chief Executive Officer of Laird Superfood, commented, “The third quarter of 2020, our first quarter as a publicly traded company, was a record quarter for us with 118% year over year revenue growth, reflecting continued strength across the business. Our plant-based superfood products appeal to the growing desire for high quality, all-natural whole food ingredients that are also sustainably sourced and packaged.”

Hodge Jr. continued, “We are in the early stages of a long-term growth strategy built on market penetration into billion dollar-plus addressable markets like creamer, coffee and hydration. As a native digital platform, our loyal customer community continues to grow, reflecting the authenticity associated with the Laird Superfood brand. Mahalo to our dedicated team who achieved so much so far this year, despite adapting quickly through the pandemic, while staying focused on our operating goals and true to our culture and values.”

For the Three Months Ended September 30, 2020

 
Three Months Ended September 30,

2020

2019

$ % of Total $ % of Total
Coffee Creamers

$

5,223,724

 

69

%

$

2,224,596

 

64

%

Hydration and Beverage Enhancing Supplements

 

1,031,834

 

14

%

 

633,264

 

18

%

Coffee, Tea, and Hot Chocolate Products

 

2,188,022

 

29

%

 

578,379

 

16

%

Other

 

168,720

 

2

%

 

139,096

 

4

%

Gross Sales

 

8,612,300

 

114

%

 

3,575,335

 

102

%

Shipping income

 

25,737

 

0

%

 

132,033

 

4

%

Returns and discounts

 

(1,024,964

)

-14

%

 

(220,033

)

-6

%

Sales, net

$

7,613,073

 

100

%

$

3,487,335

 

100

%

 
Three Months Ended September 30,

2020

2019

$ % of Total $ % of Total
Online

$

3,713,773

 

49

%

$

2,229,878

 

64

%

Wholesale

 

3,773,285

 

50

%

 

1,168,306

 

34

%

Food Service

 

126,015

 

1

%

 

89,151

 

2

%

Sales, net

$

7,613,073

 

100

%

$

3,487,335

 

100

%

Net sales increased 118% to $7.6 million in the third quarter of 2020 compared to $3.5 million in the third quarter of 2019.Growth in net sales in the third quarter of 2020 was driven primarily by a combination of growth in online and wholesale channels, primarily caused by an increase in sales volume across product lines.

Gross profit was $1.9 million compared to $1.5 million in the prior year period. Gross margin was 24.7% of net sales in the third quarter of 2020, compared to 41.9% of net sales in the prior year period. The decrease in gross margin was primarily due to disposal costs related to the early production and distribution of the liquid creamer product line, elevated outbound shipping costs, and increased co-packing costs primarily associated with the liquid creamer product line.

Operating expenses of $5.3 million compared to $3.9 million in the year ago period reflect General and Administrative expense increases of $843,000, primarily related to the Company’s Initial Public Offering, as well as Sales and Marketing expense increases of $554,000, primarily related to a stock option modification expense.

Loss from operations was $3.4 million in the third quarter of 2020, compared to a loss of $2.4 million in the prior year period.

Net loss attributable to common stockholders was $4.0 million, or $0.86 per diluted share, in the third quarter of 2020, compared to a loss of $2.4 million, or $0.66 per diluted share, in the prior year period.

Valerie Ells, Chief Financial Officer, commented, “We are thrilled with our record net sales performance in the third quarter, which furthers our conviction in the strength of our brand and the compelling addressable market opportunities in front of us. Market share and customer growth are our major priorities and this quarter demonstrated that our authentic brand, and meeting consumers where they are across our omnichannel platform, resonates with today’s consumer seeking healthy, plant-based and sustainable products. We remain confident in our ability to leverage our fixed cost structure as we focus on driving the top line while taking steps toward long-term profitability.”

For the Nine Months Ended September 30, 2020

 
Nine Months Ended September 30,

2020

2019

$ % of Total $ % of Total
Coffee Creamers

$

13,241,592

 

71

%

$

5,933,639

 

66

%

Hydration and Beverage Enhancing Supplements

 

2,881,132

 

15

%

 

1,475,051

 

16

%

Coffee, Tea, and Hot Chocolate Products

 

4,167,163

 

22

%

 

1,309,524

 

15

%

Other

 

368,983

 

2

%

 

346,210

 

4

%

Gross Sales

 

20,658,870

 

110

%

 

9,064,424

 

101

%

Shipping income

 

221,082

 

1

%

 

329,342

 

4

%

Returns and discounts

 

(2,174,824

)

-11

%

 

(461,124

)

-5

%

Sales, net

$

18,705,128

 

100

%

$

8,932,642

 

100

%

 

2020

2019

$ % of Total $ % of Total
Online

$

10,049,039

 

54

%

$

5,325,768

 

60

%

Wholesale

 

8,324,286

 

45

%

 

3,449,941

 

39

%

Food Service

 

331,803

 

1

%

 

156,933

 

1

%

Sales, net

$

18,705,128

 

100

%

$

8,932,642

 

100

%

Net sales increased 109% to $18.7 million for the nine months ended September 30, 2020 compared to $8.9 million in the prior year period.

Gross profit was $5.3 million, or 28.4% of net sales, for the nine months ended September 30, 2020, compared to $3.6 million, or 40.7% of net sales, in the prior year period. The increase in gross profit was primarily due to sales growth. The decrease in gross margin was primarily due to elevated inbound freight expenses in response to an unanticipated increase in demand associated with COVID-19, elevated disposal costs related to the early production and distribution of the new liquid creamer product line and increased co-packing costs primarily associated with the liquid creamer product line.

Operating expenses of $13.7 million compared to $10.2 million in the year ago period reflect General and Administrative expense increases of $1.9 million, primarily related to the Company’s Initial Public Offering and an asset impairment recorded during the second quarter, as well as Sales and Marketing increases of $1.5 million, primarily related to stock option modification expense and increased advertising and payroll expenses.

Loss from operations was $8.4 million for the nine months ended September 30, 2020, compared to $6.5 million in the prior year period.

Net loss attributable to common stockholders was $10.0 million, or $2.26 per diluted share, for the nine months ended September 30, 2020 compared to $6.3 million, or $1.79 per diluted share, in the prior year period.

Balance Sheet and Cash Flow Highlights

The Company’s cash and cash equivalents were $72.9 million as of September 30, 2020 and total outstanding debt was $51,000. Cash and cash equivalents as of September 30, 2020 includes the net proceeds from the Company’s IPO. Net cash used in operating activities was $7.1 million in the nine months ended September 30, 2020, compared to $6.9 million in the prior year period.

Capital expenditures totaled $875,000 for the nine months ended September 30, 2020, compared to $1.6 million in the prior year period.

Successful Initial Public Offering

On September 25, 2020, the Company completed its initial public offering (“IPO”), in which it issued and sold 3,047,500 shares of common stock at a public offering price of $22.00 per share for net proceeds to the Company of approximately $62.1 million, after deducting underwriting discounts, commissions and estimated offering expenses. Danone Manifesto Ventures purchased $2.0 million of the Company’s common stock in a private placement immediately subsequent to the consummation of the IPO, at a price per share of $22.00. The Company continues to expect to use the net proceeds from the IPO for working capital and general corporate purposes, including operating expenses and capital expenditures. Additionally, the Company may use a portion of the net proceeds to acquire businesses or products. On September 30, 2020, subsequent to the IPO, there were 8,874,890 shares of common stock outstanding.

Conference Call and Webcast Details

The Company will host a conference call and webcast at 5:00 p.m. ET today to discuss the results. The live conference call can be accessed by dialing (833) 772-0381 from the U.S. or (236) 384-2050 internationally and using access code 1754637. Alternatively, participants may access the live webcast on the Laird Superfood Investor Relations website at https://investors.lairdsuperfood.com under “Events.”

About Laird Superfood

Laird Superfood, Inc. creates award-winning, plant-based superfood products that are both delicious and functional. The Company’s products are designed to enhance your daily ritual and keep consumers fueled naturally throughout the day. The Company was co-founded in 2015 by the world’s most prolific big-wave surfer, Laird Hamilton. Laird Superfood’s offerings are environmentally conscientious, responsibly tested, and made with real ingredients. Shop all products online at lairdsuperfood.com and join the Laird Superfood community on social media for the latest news and daily doses of inspiration.

Forward-Looking Statements

This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Laird Superfood’s future financial performance, including our outlook for fiscal year 2020. These forward-looking statements are based on Laird Superfood’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Laird Superfood’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to: (1) the effects of the current COVID-19 pandemic, or of other global outbreaks of pandemics or contagious diseases or fear of such outbreaks, including on our supply chain, the demand for our products, and on overall economic conditions and consumer confidence and spending levels; (2) our expectations regarding our revenue, expenses and other operating results; (3) our ability to acquire new customers and successfully retain existing customers; (4) our ability to attract and retain our suppliers, distributors and co-manufacturers; (5) our expectations regarding real or perceived quality with our products or other issues that adversely affect our brand and reputation; (6) our ability to innovate on a cost-effective basis, predict changes in consumer preferences and develop successful new products and marketing strategies in response; (7) expectations regarding prices and availability of raw materials and other inputs, a substantial amount of which come from a limited number of suppliers outside the United States, including in areas which may be adversely affected by climate change; (8) effects of changes in the tastes and preferences of our consumers and consumer preferences for natural and organic food products; (9) the financial condition of, and our relationships with, our suppliers, co-manufacturers, distributors, retailers and foodservice customers, as well as the health of the foodservice industry generally; (10) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (11) the ability of ourselves, our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations; (12) our plans for future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (13) the costs and success of our marketing efforts, and our ability to promote our brand; (14) our reliance on key personnel and our ability to identify, recruit and retain skilled and general working personnel; (15) our ability to effectively manage our growth; (16) our ability to compete effectively with existing competitors and new market entrants; (17) the impact of adverse economic conditions; and (18) the growth rates of the markets in which we compete.

LAIRD SUPERFOOD, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
 
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,

2020

2019

2020

2019

Sales, net

$

7,613,073

 

$

3,487,335

 

$

18,705,128

 

$

8,932,642

 

Cost of goods sold

 

(5,734,144

)

 

(2,026,930

)

 

(13,384,880

)

 

(5,296,485

)

Gross profit

 

1,878,929

 

 

1,460,405

 

 

5,320,248

 

 

3,636,157

 

 
General and administrative
Salaries, wages and benefits

 

1,031,425

 

 

637,913

 

 

2,652,500

 

 

1,758,080

 

Stock-based compensation

 

290,148

 

 

145,281

 

 

589,600

 

 

436,996

 

Professional fees

 

274,244

 

 

143,424

 

 

647,422

 

 

362,134

 

Office expense

 

142,269

 

 

125,594

 

 

364,518

 

 

306,075

 

Occupancy

 

57,378

 

 

52,095

 

 

167,151

 

 

95,985

 

Merchant service fees

 

103,306

 

 

44,100

 

 

248,355

 

 

111,683

 

Netsuite subscription expense

 

33,173

 

 

35,125

 

 

90,491

 

 

112,559

 

Impairment on asset held for sale

 

 

 

 

 

239,734

 

 

 

Other expense

 

286,876

 

 

192,770

 

 

651,061

 

 

526,289

 

Total general and administrative expenses

 

2,218,819

 

 

1,376,302

 

 

5,650,832

 

 

3,709,801

 

 
Research and product development
Salaries, wages and benefits

 

54,454

 

 

77,970

 

 

202,287

 

 

132,691

 

Stock-based compensation

 

2,310

 

 

2,045

 

 

6,694

 

 

5,549

 

Other expense

 

46,115

 

 

29,963

 

 

155,009

 

 

48,172

 

Total research and product development expenses

 

102,879

 

 

109,978

 

 

363,990

 

 

186,412

 

 
Sales and marketing
Salaries, wages and benefits

 

613,961

 

 

744,964

 

 

2,057,517

 

 

1,930,485

 

Stock-based compensation

 

520,022

 

 

70,271

 

 

630,456

 

 

101,150

 

General marketing

 

325,033

 

 

525,521

 

 

895,917

 

 

1,279,391

 

Advertising

 

1,250,169

 

 

730,912

 

 

3,340,592

 

 

1,998,131

 

Amazon selling fee

 

179,425

 

 

159,153

 

 

575,313

 

 

386,648

 

Travel expense

 

4,908

 

 

82,937

 

 

78,872

 

 

266,978

 

Other expense

 

45,543

 

 

71,322

 

 

148,911

 

 

302,517

 

Total sales and marketing expenses

 

2,939,061

 

 

2,385,080

 

 

7,727,578

 

 

6,265,300

 

Total expenses

 

5,260,759

 

 

3,871,360

 

 

13,742,400

 

 

10,161,513

 

Operating loss

 

(3,381,830

)

 

(2,410,955

)

 

(8,422,152

)

 

(6,525,356

)

 
Other income (expense)
Interest and dividend income

 

20,496

 

 

56,602

 

 

51,521

 

 

149,332

 

Gain on sale of available-for-sale securities

 

6,250

 

 

 

 

13,927

 

 

 

Interest expense

 

 

 

(18,829

)

 

 

 

(18,829

)

Grant income

 

 

 

 

 

 

 

50,000

 

Total other income

 

26,746

 

 

37,773

 

 

65,448

 

 

180,503

 

Loss before income taxes

 

(3,355,084

)

 

(2,373,182

)

 

(8,356,704

)

 

(6,344,853

)

Benefit from income taxes

 

 

 

 

 

 

 

 

Net loss

$

(3,355,084

)

$

(2,373,182

)

$

(8,356,704

)

$

(6,344,853

)

Less deemed dividend of beneficial conversion feature

 

 

 

 

 

825,366

 

 

 

Less deemed dividend on warrant discount

 

(645,939

)

 

 

 

(825,366

)

 

 

Net loss attributable to Laird Superfood, Inc. common stockholders

$

(4,001,023

)

$

(2,373,182

)

$

(8,356,704

)

$

(6,344,853

)

 
Net loss per share attributable to Laird Superfood, Inc common stockholders:
Basic

$

(0.86

)

$

(0.66

)

$

(1.89

)

$

(1.79

)

Diluted

$

(0.86

)

$

(0.66

)

$

(1.89

)

$

(1.79

)

Weighted-average shares of common stock outstanding used in computing net loss per share of common stock

 

4,672,041

 

 

3,592,735

 

 

4,427,114

 

 

3,541,001

 

LAIRD SUPERFOOD, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
 
For the Nine Months Ended
September 30,

2020

2019

Cash flows from operating activities
Net loss

$

(8,356,704

)

$

(6,344,853

)

Adjustments to reconcile net loss to net cash from operating activities:
Depreciation

 

344,162

 

 

198,970

 

Loss on disposal of equipment

 

 

 

483

 

Stock-based compensation

 

1,382,864

 

 

546,475

 

Noncash conversion of note payable to grant income

 

 

 

(50,000

)

Impairment on asset held for sale

 

239,734

 

 

 

Gain on sale of investment securities available-for-sale

 

13,927

 

 

 

Changes in operating assets and liabilities:
Accounts receivable

 

(397,669

)

 

(214,122

)

Inventory

 

(1,441,766

)

 

(1,402,745

)

Prepaid expenses and other current assets

 

(1,582,315

)

 

(61,736

)

Deferred rent

 

270,731

 

 

163,365

 

Deposits

 

33,009

 

 

3,115

 

Other assets

 

7,599

 

 

3,528

 

Accounts payable

 

1,613,754

 

 

(166,799

)

Payroll liabilities

 

207,675

 

 

318,513

 

Accrued expenses

 

567,103

 

 

62,447

 

Net cash from operating activities

 

(7,097,896

)

 

(6,943,359

)

 
Cash flows from investing activities
Purchase of property, equipment, and software

 

(874,764

)

 

(1,645,800

)

Deposits on equipment to be acquired

 

 

 

(338,560

)

Sale of investment securities available-for-sale

 

516,459

 

 

 

Purchase of investment securities available-for-sale

 

 

 

(13,445,050

)

Proceeds from maturities of investment securities available-for-sale

 

4,475,000

 

 

7,004,232

 

Net cash from investing activities

 

4,116,695

 

 

(8,425,178

)

 
Cash flows from financing activities
Issuance of common stock

 

66,104,477

 

 

6,663,910

 

Issuance of preferred stock

 

10,000,006

 

 

 

Common stock repurchases

 

(20,532

)

 

(1,079,878

)

Stock options exercised

 

119,838

 

 

34,667

 

Common stock issuance costs

 

(1,131,291

)

 

 

Preferred stock issuance costs

 

(147,721

)

 

(52,073

)

Net cash from financing activities

 

74,924,777

 

 

5,566,626

 

 
Net change in cash and cash equivalents

 

71,943,576

 

 

(9,801,911

)

Cash and cash equivalents, beginning of period

 

1,004,109

 

 

17,340,023

 

Cash and cash equivalents, end of period

$

72,947,685

 

$

7,538,112

 

 
Supplemental disclosures of cash flow information
Interest paid

$

 

$

18,829

 

Supplemental disclosures of non-cash information
Unrealized gain on available-for-sale securities

$

924

 

$

56,081

 

Purchases of equipment included in deposits at the beginning of the period

$

14,699

 

$

4,577

 

 
Purchases of land included in prepaids and other current assets at the
beginning of the period

$

 

$

40,000

 

LAIRD SUPERFOOD, INC.
BALANCE SHEETS
(Unaudited)
 
As of
September 30, 2020 December 31, 2019
Assets
Current assets
Cash and cash equivalents

$

72,947,685

 

$

1,004,109

 

Accounts receivable, net

 

782,475

 

 

384,806

 

Investment securities available-for-sale

 

480,747

 

 

5,485,209

 

Inventory

 

3,877,731

 

 

2,435,965

 

Prepaid expenses and other current assets

 

2,173,123

 

 

590,808

 

Deposits

 

95,619

 

 

143,327

 

Total current assets

 

80,357,380

 

 

10,044,224

 

 
Noncurrent assets
Property and equipment, net

 

3,208,853

 

 

3,153,286

 

Fixed assets held for sale

 

250,000

 

 

 

Licensing agreement – intangible

 

132,100

 

 

132,100

 

Deferred rent

 

2,786,701

 

 

3,057,432

 

Other assets

 

7,544

 

 

15,143

 

Total noncurrent assets

 

6,385,198

 

 

6,357,961

 

Total assets

$

86,742,578

 

$

16,402,185

 

 
Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities
Accounts payable

$

2,338,505

 

$

724,751

 

Payroll liabilities

 

698,767

 

 

491,092

 

Accrued expenses

 

868,149

 

 

301,046

 

Total current liabilities

 

3,905,421

 

 

1,516,889

 

 
Long-term liabilities
Note payable

 

51,000

 

 

51,000

 

Total long-term liabilities

 

51,000

 

 

51,000

 

Total liabilities

 

3,956,421

 

 

1,567,889

 

 
Commitments and contingencies (Note 9)
 
Convertible preferred stock
Preferred stock, $0.001 par value, 5,000,000 and 1,329,680 shares authorized
as of September 30, 2020 and December 31, 2019, respectively;
Series A-1 Preferred Stock, 0 shares authorized, issued, and outstanding
as of September 30, 2020; 1,177,426 shares authorized,162,340 issued and outstanding, and
609,078 undesignated as of December 31, 2019; Series A-2 Preferred Stock 0 shares
authorized, issued, and outstanding as of September 30, 2020; 152,253 shares
authorized, issued, and outstanding as of December 31, 2019

 

 

 

6,722,951

 

Total convertible preferred stock

 

 

 

6,722,951

 

 
Stockholders’ equity
Common stock, $0.001 par value, 100,000,000 and 9,600,000 shares authorized as of
September 30, 2020 and December 31, 2019; 9,239,638 and 8,874,890
issued and outstanding at September 30, 2020, respectively; 4,551,950
and 4,188,558 issued and outstanding at December 31, 2019, respectively

 

8,875

 

 

4,188

 

Additional paid-in capital

 

110,210,155

 

 

27,184,250

 

Accumulated other comprehensive income (loss)

 

698

 

 

(226

)

Accumulated deficit

 

(27,433,571

)

 

(19,076,867

)

Total stockholders’ equity

 

82,786,157

 

 

8,111,345

 

Total liabilities, convertible preferred stock and stockholders’ equity

$

86,742,578

 

$

16,402,185

 

 

Investors:

Ashley DeSimone

[email protected]

KEYWORDS: United States North America Oregon

INDUSTRY KEYWORDS: Restaurant/Bar Other Retail Health Supermarket Food/Beverage Online Retail Fitness & Nutrition Retail

MEDIA:

SITE Centers Declares Common Stock Dividend of $0.05 for Fourth Quarter 2020

SITE Centers Declares Common Stock Dividend of $0.05 for Fourth Quarter 2020

BEACHWOOD, Ohio–(BUSINESS WIRE)–
SITE Centers Corp. (NYSE: SITC) today declared its fourth quarter 2020 common stock dividend of $0.05 per share. The common stock dividend is payable on January 7, 2021 to shareholders of record at the close of business on December 11, 2020. This dividend payment, together with dividends previously paid by the Company in 2020, satisfy the Company’s taxable income distribution requirements for calendar year 2020, as currently projected.

About SITE Centers Corp.

SITE is an owner and manager of open-air shopping centers that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC. Additional information about the Company is available at www.sitecenters.com. To be included in the Company’s e-mail distributions for press releases and other investor news, please click here.

Safe Harbor

SITE Centers Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, the impact of the COVID-19 pandemic on the Company’s ability to manage its properties and finance its operations and on tenants’ ability to operate their businesses, generate sales and meet their financial obligations, including the obligation to pay ongoing and deferred rents; the Company’s ability to pay dividends; local conditions such as the supply of, and demand for, retail real estate space in the area; the impact of e-commerce; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant and the impact of any such event on rental income from other tenants and our properties; redevelopment and construction activities may not achieve a desired return on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing on commercially acceptable terms or at all; impairment charges; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements and the Company’s ability to satisfy conditions to the completion of these arrangements; valuation and risks relating to our joint venture and preferred equity investments; the termination of any joint venture arrangements or arrangements to manage real property and the ability to satisfy conditions of such terminations; property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions or natural disasters in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions or natural disasters; any change in strategy and our ability to maintain REIT status. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company’s most recent reports on Form 10-K and Form 10-Q. The impacts of the COVID-19 pandemic may also exacerbate the risks described therein, any of which could have a material effect on the Company. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

Conor Fennerty, EVP and Chief Financial Officer

216-755-5500

KEYWORDS: United States North America Ohio

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property Restaurant/Bar Supermarket Convenience Store REIT Retail Department Stores

MEDIA:

Logo
Logo

Eros STX Global Corporation Announces Details of Fiscal Year 2020 Annual General Meeting of Shareholders

Eros STX Global Corporation Announces Details of Fiscal Year 2020 Annual General Meeting of Shareholders

DOUGLAS, Isle of Man–(BUSINESS WIRE)–
Eros STX Global Corporation (“ErosSTX” or the “Company”) (NYSE: ESGC), a global entertainment company, announced today that the annual general meeting of its shareholders will be held on Monday, December 21st, 2020, beginning at 2:00 p.m., Greenwich Mean Time (GMT), virtually via the internet at www.meetingcenter.io/234058716 for the transaction of the business listed in the Company’s notice of annual meeting. The password for this meeting is EROS2020. The Company’s notice of annual meeting and form of proxy were issued on November 11th, 2020.

The Company’s notice of the annual meeting, form of proxy, annual report and accounts on Form 20-F for the year ended March 31, 2020 and the transition report and accounts on Form 20-F for the transition period from September 30, 2019 to March 31, 2020 (as amended), are available in the investor relations section of the Company’s website at http://www.erosstx.com.

Eros STX Global Corporation:

Eros STX Global Corporation, (“ErosSTX”) (NYSE: ESGC) is a global entertainment company that acquires, co-produces and distributes films, digital content & music across multiple formats such as theatrical, television and OTT digital media streaming to consumers around the world. Eros International Plc changed its name to Eros STX Global Corporation pursuant to the July 2020 merger with STX Entertainment, merging two international media and entertainment groups. The combination of one of the largest Indian OTT players and premier studio with one of Hollywood’s fastest-growing independent media companies has created an entertainment powerhouse with a presence in over 150 countries. ErosSTX delivers star-driven premium feature film and episodic content across a multitude of platforms at the intersection of the world’s most dynamic and fastest-growing global markets, including US, India, Middle East, Asia and China. The company also owns the rapidly growing OTT platform Eros Now which has rights to over 12,000 films across Hindi and regional languages and had 211.5 million registered users and 36.2 million paying subscribers as of September 30th, 2020. For further information, please visit ErosSTX.com.

Investor Contact:

Drew Borst

EVP, Investor Relations & Business Development

Eros STX Global Corporation

[email protected]

KEYWORDS: Europe Isle of Man United Kingdom

INDUSTRY KEYWORDS: Professional Services Entertainment TV and Radio Film & Motion Pictures Music Finance

MEDIA:

HireQuest Reports Financial Results for the Third Quarter of 2020

HireQuest Reports Financial Results for the Third Quarter of 2020

$800,000 Sequential Improvement in Net Income Validates Confidence that Worst of COVID-19 Impact is Over

GOOSE CREEK, S.C.–(BUSINESS WIRE)–
HireQuest, Inc. (Nasdaq: HQI), a national provider of back-office and operational support for franchised operators of on-demand and temporary staffing service providers, today reported financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Financial Summary

  • Franchise royalties of $3.2 million compared to $3.1 million in the prior year period, an increase of 2.5%.
  • Service revenue, including interest paid on aging accounts receivable, of $164,000 compared to $154,000 in the prior year period, an increase of 6.7%.
  • Total revenue of $3.4 million compared to $3.3 million in the prior year period, an increase of 2.7%.
  • Net Income was $2.0 million, or $0.15 per diluted share, compared to a net loss of $7.8 million, or $(0.60) per share last year. The prior-year quarter included $4.8 million of merger-related expenses and $683,000 of income from discontinued operations.
  • Paid first quarterly cash dividend of $0.05 per share
  • On November 11, 2020, the Board of Directors declared a quarterly cash dividend of $0.05 per share of common stock expected to be paid on December 15, 2020 to shareholders of record as of December 1, 2020 representing an annual dividend yield of 2.4%2. The company intends to pay quarterly cash dividends on its common stock each year in March, June, September and December, subject to final approval by the Board of Directors each quarter after its review of the Company’s financial performance.

System-wide sales1 (a non-GAAP operating performance metric) for the third quarter 2020 of $55.6 million compared to $74.2 million for the quarter ended September 29, 2019.

“Our franchise business model, combined with a solid balance sheet and steady cash flow, are making it possible for us to continue to deliver profitable results while navigating the ongoing challenges resulting from the global healthcare crisis,” commented Rick Hermanns, HireQuest’s President and Chief Executive Officer. “For the first time, we declared a quarterly cash dividend of $0.05 per share. Our Board has again approved a dividend this quarter, and, barring anything currently unforeseen, we expect to continue to pay a similar dividend in the future. Importantly, the payment of quarterly dividends does not rule out the possibility of future acquisitions should we find the right fit for our business. Increasingly, there are distressed businesses that make for attractive opportunities, but we continue to be highly selective as we consider potential targets.”

Mr. Hermanns continued, “During the third quarter, which is generally our strongest quarter, we saw our business stabilize. We are confident that the worst is behind us despite continued uncertainty as to the timing of a recovery in specific sectors of the economy, such as construction, hospitality and large-scale entertainment. Our franchisees have done an outstanding job adjusting their cost structure to align with demand while continuing to meet the needs of their customers. We are facing unprecedented challenges and thus far, not a single franchise has failed. We remain committed to delivering value to our shareholders and believe that a regular cash dividend underscores our confidence in the long-term prospects and resiliency of our business.”

_______________

1 Refer to “Supplemental Operating Metrics” section at the end of this press release for a definition and additional details regarding System-wide sales

2 Based on a closing stock price of $8.35 on November 11, 2020

Third Quarter 2020 Financial Results

The company’s total revenue is calculated by aggregating its revenue derived from franchise royalties and service revenue. Franchise royalties are the royalties earned from franchisees primarily on the basis of their sales to their customers. Service revenue consists of interest charged to franchisees on overdue accounts and other fees for optional services we provide our franchisees.

Franchise royalties in the third quarter of 2020 were $3.2 million compared to $3.1 million in the year-ago quarter, an increase of 2.5%. Service revenue was $164,000 compared to $154,000 in the prior-year quarter, an increase of 6.7%.

Total revenue in the third quarter of 2020 was $3.4 million compared to $3.3 million in the year-ago quarter, an increase of 2.7%, or $90,000. This increase is primarily due to the increase in franchised locations in 2020 as company-owned locations were converted to franchisees in the fourth quarter of 2019, and the results of company-owned locations are presented as discontinued operations in our financial statements.

Selling, general and administrative (“SG&A”) expenses in the third quarter of 2020 were $1.4 million compared to $7.4 million for the third quarter last year. The third quarter of 2019 included approximately $4.7 million of non-recurring, merger-related expenses. The decrease in SG&A was also driven by a decrease in expenses related to workers’ compensation costs and bad debt.

Net Income in the third quarter of 2020 was $2.0 million, or $0.15 per diluted share, compared to a net loss of $7.8 million, or $(0.60) per diluted share, in the third quarter last year. The net loss from continuing operations, which excluded discontinued operations, was $8.5 million, or $(0.65) per diluted share, in the year-ago quarter. The third quarter of 2020 did not include any discontinued operations.

Balance Sheet and Capital Structure

Cash was $10.3 million as of September 30, 2020, compared to $4.2 million at December 31, 2019.

Total assets were $49.1 million as of September 30, 2020. Total liabilities were $13.7 million.

On September 15, 2020, the company paid a quarterly cash dividend of $0.05 per share of common stock to shareholders of record as of September 1, 2020.

On November 11, 2020, the company’s Board of Directors declared a quarterly cash dividend of $0.05 per share of common stock expected to be paid on December 15, 2020 to shareholders of record as of December 1, 2020.

Conference Call

HireQuest will hold a conference call to discuss its financial results.

Date:

 

 

Thursday, November 12, 2020

Time:

 

 

4:30 p.m. Eastern time (2:30 p.m. Mountain time)

Toll-free dial-in number:

 

 

1-844-602-0380

International dial-in number:

 

 

1-862-298-0970

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

The conference call will be broadcast live and available for replay at https://www.webcaster4.com/Webcast/Page/2359/38301 and via the investor relations section of HireQuest’s website at www.hirequest.com.

A replay of the conference call will be available through November 26, 2020.

Toll-free replay number:

 

1-877-481-4010

International replay number:

 

1-919-882-2331

Replay Passcode:

 

38301

About HireQuest

HireQuest, Inc. is a nationwide franchisor that provides on demand labor solutions primarily in the light industrial and blue-collar segments of the staffing industry for HireQuest Direct and HireQuest franchised offices across the United States. Through our national network of approximately 138 franchisee-owned offices in 30 states and the District of Columbia, HireQuest provides employment for approximately 80,000 individuals annually that work for thousands of customers in numerous industries including construction, light industrial, manufacturing, hospitality, and event services. For more information, visit www.hirequest.com.

Important Cautions Regarding Forward-Looking Statements

This news release includes, and the company’s officers and other representatives may sometimes make or provide certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act, including, among others, statements with respect to future revenue, franchise sales, system-wide sales, and the growth thereof; operating results; anticipated benefits of the merger with Command Center, Inc., or the conversion to the franchise model; intended office openings; expectations of the effect on our financial condition of claims and litigation; strategies for customer retention and growth; strategies for risk management; and all other statements that are not purely historical and that may constitute statements of future expectations. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” and similar references to future periods.

While the company believes these statements are accurate, forward-looking statements are not historical facts and are inherently uncertain. They are based only on the company’s current beliefs, expectations, and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. The company cannot assure you that these expectations will occur, and its actual results may be significantly different. Therefore, you should not place undue reliance on these forward-looking statements. Important factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by the company include the following: the level of demand and financial performance of the temporary staffing industry; the financial performance of the company’s franchisees; changes in customer demand; the effects of any global pandemic including the impact of the novel coronavirus disease (“COVID-19”); the extent to which the company is successful in gaining new long-term relationships with customers or retaining existing ones, and the level of service failures that could lead customers to use competitors’ services; significant investigative or legal proceedings including, without limitation, those brought about by the existing regulatory environment or changes in the regulations governing the temporary staffing industry and those arising from the action or inaction of the company’s franchisees and temporary employees; strategic actions, including acquisitions and dispositions and the company’s success in integrating acquired businesses including, without limitation, successful integration following the merger with Command Center, Inc.; disruptions to the company’s technology network including computer systems and software; natural events such as severe weather, fires, floods, and earthquakes, or man-made or other disruptions of the company’s operating systems; and the factors discussed in the “Risk Factors” section and elsewhere in the company’s most recent Annual Report on Form 10-K.

Any forward-looking statement made by the company or its management in this news release is based only on information currently available to the company and speaks only as of the date on which it is made. The company and its management disclaim any obligation to update or revise any forward-looking statement, whether written or oral, that may be made from time to time, based on the occurrence of future events, the receipt of new information, or otherwise, except as required by law.

— Tables Follow —

HireQuest, Inc.

Consolidated Balance Sheets

 

 

September 30,

2020

December 31,

2019

ASSETS

(unaudited)

 

 

Current assets

Cash

$

10,297,147

 

 

$

4,187,450

Accounts receivable, net of allowance for doubtful accounts

 

24,024,564

 

 

28,201,279

Notes receivable

 

2,144,118

 

 

 

3,419,458

Prepaid expenses, deposits, and other assets

 

1,179,333

 

 

188,560

Prepaid workers’ compensation

 

1,978,509

 

 

 

822,938

Other assets

 

 

 

201,440

Total current assets

 

39,623,671

 

 

 

37,021,125

Property and equipment, net

 

2,958,998

 

 

1,900,686

Intangible assets, net

 

186,705

 

 

 

Notes receivable, net of current portion and reserve

 

6,377,779

 

 

7,990,251

Total assets

$

49,147,153

 

 

$

46,912,062

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

 

 

 

Accounts payable

$

5,499

 

$

253,845

Other current liabilities

 

1,664,854

 

 

 

1,893,846

Accrued benefits and payroll taxes

 

2,088,119

 

 

1,113,904

Due to franchisees

 

2,311,372

 

 

3,610,596

Risk management incentive program liability

 

1,018,994

 

 

 

1,811,917

Workers’ compensation claims liability

 

3,165,056

 

 

2,327,869

Total current liabilities

 

10,253,894

 

 

 

11,011,977

Workers’ compensation claims liability, net of current portion

 

1,743,128

 

 

1,516,633

Franchisee deposits

 

1,459,335

 

 

 

1,412,924

Deferred tax liability

 

273,185

 

 

1,688,446

Total liabilities

 

13,729,542

 

 

 

15,629,980

Commitments and contingencies

 

 

 

Stockholders’ equity

 

 

 

Preferred stock – $0.001 par value, 1,000,000 shares authorized; none issued

 

 

 

Common stock – $0.001 par value, 30,000,000 shares authorized; 13,615,605 and 13,518,036 shares issued, respectively

 

13,616

 

 

 

13,518

Additional paid-in capital

 

28,541,062

 

 

27,584,610

Treasury stock, at cost – 33,092 and -0- shares, respectively

 

(146,465

)

 

 

Retained earnings

 

7,009,398

 

 

3,683,954

Total stockholders’ equity

 

35,417,611

 

 

 

31,282,082

Total liabilities and stockholders’ equity

$

49,147,153

 

$

46,912,062

HireQuest, Inc.

Consolidated Statements of Income

(unaudited)

 

Three months ended

Nine months ended

 

September 30,

2020

 

September 29,

2019

September 30,

2020

September 29,

2019

Franchise royalties

$

3,218,606

 

 

$

3,139,158

 

 

$

9,563,135

 

 

$

9,276,714

 

Service revenue

 

164,074

 

 

153,717

 

 

840,515

 

 

727,077

 

Total revenue

 

3,382,680

 

 

 

3,292,875

 

 

 

10,403,650

 

 

 

10,003,791

 

Selling, general and administrative expenses

 

1,357,725

 

 

 

7,393,380

 

 

 

6,542,171

 

 

 

9,817,245

 

Depreciation and amortization

 

32,438

 

 

 

40,200

 

 

 

96,654

 

 

 

75,630

 

Income (loss) from operations

 

1,992,517

 

 

(4,140,705

)

 

3,764,825

 

 

110,916

 

Other miscellaneous income

 

392,709

 

 

 

504,833

 

 

 

932,254

 

 

 

751,693

 

Interest and other financing expense

 

(10,035

)

 

(106,461

)

 

(39,174

)

 

(521,838

)

Net income (loss) before income taxes

 

2,375,191

 

 

 

(3,742,333

)

 

 

4,657,905

 

 

 

340,771

 

Provision for income taxes

 

404,058

 

 

 

4,716,731

 

 

 

654,592

 

 

 

4,816,337

 

Income (loss) from continuing operations

 

1,971,133

 

 

 

(8,459,064

)

 

 

4,003,313

 

 

 

(4,475,566

)

Income from discontinued operations, net of tax

 

 

 

682,674

 

 

 

 

722,756

 

Net income (loss)

$

1,971,133

 

 

$

(7,776,390

)

 

$

4,003,313

 

 

$

(3,752,810

)

 

Basic earnings (loss) per share

 

 

 

 

 

 

 

Continuing operations

$

0.15

 

$

(0.65

)

$

0.30

 

$

(0.41

)

Discontinued operations

 

 

 

 

0.05

 

 

 

 

 

 

0.07

 

Total

$

0.15

 

$

(0.60

)

$

0.30

 

$

(0.34

)

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share

Continuing operations

$

0.15

 

 

$

(0.65

)

 

$

0.30

 

 

$

(0.41

)

Discontinued operations

 

 

 

0.05

 

 

 

 

0.07

 

Total

$

0.15

 

 

$

(0.60

)

 

$

0.30

 

 

$

(0.34

)

 

 

 

 

 

 

 

 

Weightedaverage shares outstanding

 

 

 

 

Basic

 

13,573,086

 

 

12,927,634

 

 

13,551,507

 

 

10,939,318

 

Diluted

 

13,574,863

 

 

 

12,927,634

 

 

 

13,553,619

 

 

 

10,939,318

 

HireQuest, Inc.

Supplemental Operating Metrics

1 Management sometimes refers to total sales generated by its franchisees as “franchise sales.” Management also sometimes refers to sales at offices that were owned and operated by the company, not by one of its franchisees, as “company-owned sales,” all of which were sold as of September 29, 2019. Sales at company-owned offices are reflected net of costs, expenses, and taxes associated with those sales on the company’s financial statements as “Income from discontinued operations, net of tax.” The sum of franchise sales and company-owned sales is referred to as “system-wide sales,” a non-GAAP operating performance metric. In other words, system-wide sales include sales at all offices, whether owned and operated by the company or by its franchisees. While the company does not record franchise sales as revenue, management believes that information on system-wide sales is important to understanding the company’s financial performance because those sales are the basis on which the company calculates and records franchise royalty revenue, are directly related to interest charged on overdue accounts, which the company records under service revenue, and are indicative of the financial health of the franchisee base.

Company Contact:

HireQuest, Inc.

Cory Smith, CFO

(800) 835-6755

Email: [email protected]

Investor Relations Contact:

Hayden IR

Brett Maas

(646) 536-7331

Email: [email protected]

KEYWORDS: United States North America South Carolina

INDUSTRY KEYWORDS: Professional Services Human Resources

MEDIA: