Market Newsdesk

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated November 9, 2020 to its final short form base shelf prospectus for the Province of Quebec and its amended and restated final short form base shelf prospectus for each of the Provinces of Canada except Quebec, each dated October 27, 2020.

VANCOUVER, British Columbia, Nov. 16, 2020 (GLOBE NEWSWIRE) — Westport Fuel Systems Inc. (“Westport Fuel Systems” or the “Company”) (TSX:WPRT / Nasdaq:WPRT) today announced a follow-on contract for new product development work with its current European-based original equipment manufacturer (“OEM”) partner to apply Westport HPDI 2.0™ to an updated base engine platform. The program will incorporate new features for the resulting HPDI 2.0 fuel system as well as certification to meet Euro VI Step E emission regulations that take effect in 2024.

For competitive reasons, product details and the value of the development program have been withheld.

“We see strong growth in the European heavy-duty LNG truck market driven by a number of factors, including increased product availability, an expanding LNG fueling network, purchase incentives and compelling ongoing operating cost savings,” said David M. Johnson, Chief Executive Officer of Westport Fuel Systems. “HPDI 2.0 enables long-haul trucks to fully meet a fleet’s performance demands for payload, performance, and durability compared to state-of-the-art diesel vehicles and outperforms spark-ignited LNG trucks in real world operations. This new development program confirms that HPDI offers a viable compliance pathway for OEMs to achieve the 2025 heavy-duty CO₂ emission reduction requirements and reflects our customer’s satisfaction with the progress we have made growing market share with cleaner, gaseous-fueled transportation solutions.”

Demanding long-haul operations driving more than 100,000 annual kilometres represent almost 90% of CO₂ emissions from the on-road freight sector. With the increasing availability and use of biomethane, the path to achieving net-zero carbon for long-haul trucking is available now.

About Westport Fuel Systems

Westport Fuel Systems is driving innovation to power a cleaner tomorrow. The company is a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global automotive industry. Westport’s technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America and South America, the company serves customers in more than 70 countries with leading global transportation brands. For more information, visit www.wfsinc.com.

Cautionary Note Regarding Forward Looking Statements

This press release contains forward-looking statements, including statements regarding growth in the European heavy-duty LNG truck market and the factors responsible for such growth. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward looking statements. These risks, uncertainties and assumptions include those related to COVID-19, it’s duration, effects and government responses thereto, the general economy, solvency, governmental policies and regulation as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. In addition, the effects and the impact of the COVID-19 outbreak, are unknown at this time and could cause actual results to differ materially from the forward-looking statements contained herein. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this press release are not incorporated by reference herein.

Investor Inquiries:
Christine Marks
Investor Relations
T: +1 604-718-2046
E: [email protected]

TAMPA, Fla., Nov. 16, 2020 (GLOBE NEWSWIRE) — Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a deep-ocean exploration pioneer engaged in the discovery, development and extraction of deep-ocean minerals, reported results for the third quarter ended September 30, 2020, and provided an update on current company operations and projects.

The key focus of Odyssey’s project operations team continues to be the Exploraciones Oceánicas (ExO) Phosphate Project in Mexico, which can provide access to a critical resource needed to produce fertilizer, help achieve food security in Mexico, and supply the phosphate needs of North America for at least 50 years.

Odyssey is pursuing a North American Free Trade Agreement (NAFTA) claim against Mexico for their arbitrary and unlawful denial of the environmental permit, which is the last major milestone before operations can begin. Odyssey, on behalf of its subsidiary ExO, is seeking damages of more than $2.3 billion as detailed in the First Memorial filed in September. This filing is supported by documentary evidence and 20 expert reports and witness statements. Once a redacted version of the Memorial is released by the NAFTA Tribunal, which is expected shortly, Odyssey will provide a link to the filing at www.odysseymarine.com/nafta.

In addition to the NAFTA claim, ExO continues to pursue the annulment of the second arbitrary denial in Mexico’s federal court (the Tribunal Federal de Justicia Administrativa or TFJA). This court ruled unanimously in 2018 that the first denial of the environmental permit was illegal under Mexican environmental law. ExO completed its latest filing in this case in August. A decision in this case is expected in the first half of next year.

A significant funding event was completed in August to ensure that Odyssey and ExO have sufficient cash to last through the outside dates associated with the expected NAFTA timeline. “Based on current budgets and forecasts, we expect this capital to provide Odyssey with the longest duration of operating capital in its 26-year history,” commented Mark Gordon, Odyssey Chairman and CEO. 

“We remain extremely confident in the merits of our NAFTA and TFJA cases, and with this funding we are prepared to take both actions to their full and final conclusions, if necessary. It is unfortunate that we are being forced to fight these legal battles to counter the unlawful actions of Mexico’s previous political administration; actions that have deprived the citizens of Mexico from realizing the substantial societal and economic benefits that the ExO Phosphate Project will deliver. We continue to believe that operationalizing this project is in everyone’s best interests. Mexico imports almost 60% of its phosphate rock and produces domestic phosphate at a very high cost. As a result, a significant portion of Mexico’s arable land remains unfertilized leading to low crop yields, high food prices and a significant national hunger issue. Activation of our project will help President López Obrador realize his stated vision for fertilizer independence and food security for his nation through the creation of a huge domestic supply of very high grade and low-cost phosphate, the key ingredient for fertilizer production. Mexico has already made a very substantial investment in fertilizer production plants but unfortunately the country’s quickly dwindling supply of terrestrial available phosphate has rendered these investments ineffectual.   Commencement of the ExO Phosphate Project would remedy this issue and would allow President López Obrador to deliver on his promise of providing low cost fertilizers to Mexico’s struggling farmers.  

“Our successes in the third quarter have set us up for a strong finish to 2020 and productive 2021,” continued Gordon. “In addition to an expected positive outcome from our ExO Project, we expect to increase the value of our diversified mineral portfolio in 2021, both through the development of completely new assets and from advancing our existing mineral deposit projects up the value curve, from initial desk-based research and permit acquisition to offshore mineral validation, environmental research, engineering and licensing.”

Third
Quarter 2020 Financial Results

The net loss for the quarter ending September 30, 2020 was $5.5 million or $0.51 per share. $4.2 of expenses were one-time NAFTA legal expenses that were funded through a specialized litigation funding agreement.

Total revenue in the current quarter was $0.2 million, a $0.6 million decrease compared to the same period a year ago. The revenue generated in each period was a result of performing marine research, project administration and search and recovery operations for our customers and related parties. The primary reason for this reduction was that the long-term project we were engaged on the last two years reached its life expectancy during this quarter.

Marketing, general and administrative expenses primarily include all costs within the following departments: Executive, Finance & Accounting, Legal, Information Technology, Human Resources, Marketing & Communications, Sales and Business Development. Marketing, general and administrative expenses decreased $2.1 million to $23,351 for the three-month period ended September 30, 2020 compared to the same period in the prior year. The primary contributor to this GAAP expense reduction was a reversal of an accrued liability into the income statement of $1.3 million related to employee incentives and compensation connected to our discretionary incentive reserve and a $0.6 million reduction in non-cash share-based compensation. In addition, during this period, management took several initiatives to reduce future potential cash expenses and gain operational efficiencies to achieve reduced overhead cash expenses resulting in an additional $0.2 million reduction of cash expenses.

Operations and research expenses are primarily focused around deep-sea mineral exploration which include minerals research, scientific services, marine operations and project management. Operations and research expenses increased by $2.7 million from 2019 to 2020 primarily as a result of the following items: (i) a $2.7 million increase in financed litigation costs directly associated with our NAFTA litigation pursuit, (ii) a $0.3 million decrease in our marine services project contract labor and (iii) a $0.1 million savings in operational overhead reductions.

Consolidated financial statements as well as Odyssey’s Quarterly Report on Form 10-Q for the period ended September 30, 2020, are available on the company’s website at www.odysseymarine.com as well as at www.sec.gov.

About Odyssey Marine Exploration

Odyssey Marine Exploration, Inc. (Nasdaq:OMEX) is engaged in deep-ocean exploration using innovative methods and state-of-the-art technology to provide access to critical resources worldwide. Our core focus is the discovery, development and extraction of deep-ocean minerals. Odyssey also provides marine services for private clients and governments. For additional details, please visit www.odysseymarine.com. 

Forward Looking Information

Odyssey Marine Exploration believes the information set forth in this Press Release may include “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Certain factors that could cause results to differ materially from those projected in the forward-looking statements are set forth in “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the Securities and Exchange Commission on March 30, 2020. The financial and operating projections as well as estimates of mining assets are based solely on the assumptions developed by Odyssey that it believes are reasonable based upon information available to Odyssey as of the date of this release. All projections and estimates are subject to material uncertainties and should not be viewed as a prediction or an assurance of actual future performance. The validity and accuracy of Odyssey’s projections will depend upon unpredictable future events, many of which are beyond Odyssey’s control and, accordingly, no assurance can be given that Odyssey’s assumptions will prove true or that its projected results will be achieved.

Cautionary Note to U.S. Investors

The U.S. Securities and Exchange Commission (SEC) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as “measured”, “indicated,” “inferred” and “resources,” which the SEC guidelines strictly prohibit us from including in our filings with the SEC. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. U.S. investors are cautioned not to assume that part or all of the inferred mineral resource exists, or is economically or legally mineable, and are urged to consider closely the disclosures in our Form 10-K which may be secured from us or from the SEC’s website at http://www.sec.gov/edgar.shtml.

CONTACT: 
Laura Barton  
Odyssey Marine Exploration, Inc.
(813) 876-1776 x 2562
[email protected]

Title:


An Oral Tablet Vaccine –


A Potential


Global Solution to COVID-19 and Norovirus

Key topics:

COVID-19: Immunity & Immunological Memory

Norovirus: Disease Burden & Prevention. The Current Status of Vaccine Development

Mucosal Immunity and the importance of secretory IgA

Administration and Logistical Advantages of a Pill

Investor Panel Being Held on Thursday, November 19

^th

@ 12pm Eastern Time

SOUTH SAN FRANCISCO, Calif., Nov. 16, 2020 (GLOBE NEWSWIRE) — Vaxart, Inc., (NASDAQ: VXRT), a clinical-stage biotechnology company developing oral vaccines that are administered by tablet rather than by injection, announced today that it will host a Key Opinion Leader (KOL) panel for investors entitled “An Oral Tablet Vaccine – A Potential Global Solution to COVID-19 and Norovirus?” on Thursday, November 19, 2020 at 12pm Eastern Time.

These KOLs will provide their perspectives on the COVID-19 and Norovirus disease landscapes, highlighting the tracking of immune responses post-infection, and on preventing infection and disease spread. Vaxart’s management team will also provide an update on its first-in-class oral tablet vaccine platform as well as Vaxart’s Phase 1 trial for Norovirus and results from preclinical studies on Vaxart’s investigational COVID-19 vaccine.

Event Agenda:

• Dr. Pepper on the importance of immunological memory and quick responses to a pathogen, and how it relates to COVID-19.
• Dr. Vinjé to speak on Norovirus incidence, outbreak surveillance, and global vaccine developments to date.
• Dr. Sean Tucker, Ph.D. (Vaxart) to discuss VXA-CoV2-1, Vaxart’s oral investigational tablet COVID-19 vaccine. What the pre-clinical data show and what’s next. He will also discuss Vaxart’s Norovirus oral vaccine program.

Both KOLs and the Vaxart management team will be available for Q&A following the formal presentation.

To register for the call, please click here.

Marion Pepper, Ph.D. is an internationally recognized immunologist. She is an Associate Professor in the Department of Immunology at the University of Washington School of Medicine. Her research focuses on how protection from disease, known as immunity, develops. Specifically, her lab strives to understand how specialized immune cells, called T cells and B cells, respond to various types of infection or allergic inflammation in an effort to make better vaccines and therapeutics. Her published work has been cited over 4,000 times, and she is on the editorial board of several top tier journals, including Cell Reports and Immunity. She has served as a scientific consultant for multiple for profit companies focused on immunotherapeutics and is a member of the scientific advisory board of Neoleukin Therapeutics. Dr. Pepper has presented her work at over 70 national and international universities and conferences. In 2017, she was named a recipient of the prestigious Buroughs Wellcome Fund Investigators in the Pathogenesis of Infectious Disease Award. In addition to her research, she is also passionate about communicating science to others and teaches undergraduate, medical school and graduate level courses. She is a strong advocate for women in science, and recently contributed an essay to Nature Immunology on the topic.

Jan Vinjé, Ph.D., is head of the National Calicivirus Laboratory and Director of CaliciNet in the Division of Viral Diseases at the Centers for Disease Control and Prevention (CDC) in Atlanta, GA. Dr. Vinjé received his Ph.D. at the University of Utrecht, the Netherlands, in 1999. After completing a postdoctoral fellowship and an appointment as research assistant professor at the University of North Carolina in Chapel Hill, he joined CDC in 2006. Over the past 10 years, he has served on program advisory committees from several European research projects (FP6, FP7). He has served as technical expert on the norovirus subcommittee of the National Advisory Committee on Microbiological Criteria for Foods and is the chair of the International Committee on Taxonomy of Viruses study groups on Caliciviridae. He is currently a member of the editorial board of the Journal of Clinical Microbiology and associate editor of the journal Food and Environmental Virology, and he serves as an ad hoc reviewer for multiple high-impact journals. Dr. Vinjé has published over 200 peer-reviewed publications and several book chapters. His research interests include all aspects of viral gastrointestinal disease, including detection, characterization, and prevention and control of norovirus infections.

About
Vaxart

Vaxart is a clinical-stage biotechnology company focused on developing oral tablet vaccines designed to generate mucosal and systemic immune responses that protect against a wide range of infectious diseases and have the potential to provide sterilizing immunity for diseases such as COVID-19. Vaxart believes that a room temperature stable tablet is easier to distribute, store and administer than injectable vaccines and may provide a significantly faster response to a pandemic than injectable vaccines, enabling a greater portion of the population to be protected. Vaxart’s development programs include oral tablet vaccines that are designed to protect against coronavirus, norovirus, seasonal influenza and respiratory syncytial virus (RSV), as well as a therapeutic vaccine for human papillomavirus (HPV). For more information, please visit www.vaxart.com.

Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding Vaxart’s strategy, prospects, plans and objectives, results from pre-clinical and clinical trials, commercialization agreements and licenses, beliefs and expectations of management are forward-looking statements. These forward-looking statements may be accompanied by such words as “should,” “believe,” “could,” “potential,” “will,” “expected,” “plan” and other words and terms of similar meaning. Examples of such statements include, but are not limited to, statements relating to Vaxart’s ability to develop and commercialize its product candidates, and preclinical and clinical results and trial data (including plans with respect to the COVID-19 vaccine product candidates); expectations relating to Vaxart’s relationship with Emergent, KindredBio and AMS including their ability to produce bulk cGMP vaccines and the timing thereof; and Vaxart’s expectations with respect to the important advantages it believes its oral vaccine platform can offer over injectable alternatives, particularly for mucosal pathogens such as norovirus, flu and RSV, as well as coronaviruses such as SARS, MERS and SARS-CoV-2. Vaxart may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions, expectations and projections disclosed in the forward-looking statements. Various important factors could cause actual results or events to differ materially from the forward-looking statements that Vaxart makes, including uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement and/or completion dates for clinical trials, regulatory submission dates, regulatory approval dates and/or launch dates, as well as the possibility of unfavorable new clinical data and further analyses of existing clinical data; the risk that clinical trial data are subject to differing interpretations and assessments by regulatory authorities; whether regulatory authorities will be satisfied with the design of and results from the clinical studies; decisions by regulatory authorities impacting labeling, manufacturing processes, and safety that could affect the availability or commercial potential of any product candidate, including the possibility that Vaxart’s product candidates may not be approved by the FDA or non-U.S. regulatory authorities; that, even if approved by the FDA or non-U.S. regulatory authorities, Vaxart’s product candidates may not achieve broad market acceptance; that a Vaxart collaborator may not attain development and commercial milestones; that Vaxart or its partners may experience manufacturing issues and delays due to events within, or outside of, Vaxart’s or its partners control, including the recent outbreak of COVID-19; difficulties in production, particularly in scaling up initial production, including difficulties with production costs and yields, quality control, including stability of the product candidate and quality assurance testing, shortages of qualified personnel or key raw materials, and compliance with strictly enforced federal, state, and foreign regulations; that Operation Warp Speed may not result in a positive financial impact on Vaxart’s financial results that Vaxart may not be able to obtain, maintain and enforce necessary patent and other intellectual property protection; that Vaxart’s capital resources may be inadequate; Vaxart’s ability to resolve pending legal matters; Vaxart’s ability to obtain sufficient capital to fund its operations on terms acceptable to Vaxart, if at all; the impact of government healthcare proposals and policies; competitive factors; and other risks described in the “Risk Factors” sections of Vaxart’s Quarterly and Annual Reports filed with the SEC. Vaxart does not assume any obligation to update any forward-looking statements, except as required by law.

Contacts:
Media Relations	Investor Relations
Gloria Gasaatura LifeSci Communications Tel: (646) 970-4688 [email protected]	David R. Holmes LifeSci Advisors, LLC Tel: (646) 970-4995 [email protected]

– Special Advisor and Former Chief of Staff for the Bill & Melinda Gates Medical Research Institute Joins as Independent Director –

– Biotechnology Leader with 25+ Year Track Record of Creating Shareholder Value Through Strategy, Business Development, Commercial and Financial Leadership –

– Scott Braunstein, M.D., Steps Down from Board of Directors –

BOSTON, Nov. 16, 2020 (GLOBE NEWSWIRE) — Ziopharm Oncology, Inc. (“Ziopharm” or “the Company”) (Nasdaq:ZIOP) today announced the appointment of Mary Thistle, Special Advisor for the Bill & Melinda Gates Medical Research Institute, to the Company’s Board of Directors (the “Board”).

Ms. Thistle brings more than 25 years of experience in business development, strategy and operational leadership in the biotechnology sector. At the Bill & Melinda Gates Medical Research Institute, she previously held the role of Chief of Staff before recently being appointed Special Advisor. Prior to joining the Bill & Melinda Gates Medical Research Institute, Ms. Thistle was Chief Operating Officer of Dimension Therapeutics, where she directed multiple financing rounds (including the company’s IPO), expanded the pipeline through strategic business development transactions, and led the sale of the company for a significant premium. Previously, Ms. Thistle was Senior Vice President, Business Development at Cubist Pharmaceuticals, where she was responsible for multiple acquisitions and assisted in the sale of the company. She has also held leadership positions at ViaCell and PerkinElmer.

“We are delighted to welcome Mary to the Board,” said Scott Tarriff, Chairman of the Board. “Mary is recognized as a strong collaborator and strategic leader, both as an executive and a director. Her extensive industry experience and business acumen will help ensure the Board effectively supports the Company’s long-term strategy. Today’s announcement results from a national search, which demonstrates the Board’s ongoing commitment to refreshment with a diverse set of highly qualified individuals who can help take the Company through clinical and commercial success.”

Ms. Thistle added, “We have an exciting opportunity with Ziopharm, as the Company has established a broad portfolio of innovative, clinical programs to treat a range of cancers and assembled a talented team to advance company-sponsored trials in each of its core programs. I am delighted to begin working with the Board, as well as with Laurence Cooper and the management team.” 

Ms. Thistle began her career in finance as a Certified Public Accountant, after graduating summa cum laude with a bachelor’s degree in business and accounting from the University of Massachusetts. Ms. Thistle serves on the Boards of Directors of Homology Medicines and Enterome SA.

The Company also announced today that Scott Braunstein, M.D., has resigned from the Board. “On behalf of the Board and entire Ziopharm organization, I’d like to thank Scott for his many contributions and wish him the best in the future,” said Scott Tarriff.

The Board consists of eight directors, including seven non-employee directors. Five directors have joined the Board in the last two years. The Board continues to actively review its composition, including addressing feedback from the 2020 annual shareholder meeting, to ensure that the skills and experience of its directors can effectively support the progress of the Company and the delivery of shareholder value.

About Ziopharm Oncology, Inc.

Ziopharm is developing non-viral and cytokine-driven cell and gene therapies that weaponize the body’s immune system to treat the millions of people globally diagnosed with a solid tumor each year. With its multiplatform approach, Ziopharm is at the forefront of immuno-oncology with a goal to treat any type of solid tumor. Ziopharm’s pipeline is built for commercially scalable, cost effective T-cell receptor T-cell therapies based on its non-viral Sleeping Beauty gene transfer platform, a precisely controlled IL-12 gene therapy, and rapidly manufactured Sleeping Beauty-enabled CD19-specific CAR-T program. The Company has clinical and strategic collaborations with the National Cancer Institute, The University of Texas MD Anderson Cancer Center and Regeneron Pharmaceuticals. For more information, please visit www.ziopharm.com.

Forward-Looking Statements Disclaimer
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts, and in some cases can be identified by terms such as “may,” “will,” “could,” “expects,” “plans,” “anticipates,” and “believes.” These statements include, but are not limited to, statements regarding the growth of Ziopharm from a development-stage entity to a commercial-stage company, development of its clinical portfolio and research and development programs. Although Ziopharm’s management team believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Ziopharm, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include among other things, changes in our operating plans that may impact our cash expenditures, the uncertainties inherent in research and development, future clinical data and analysis, including whether any of Ziopharm’s product candidates will advance further in the preclinical research or clinical trial process, including receiving clearance from the U.S. Food and Drug Administration or equivalent foreign regulatory agencies to conduct clinical trials and whether and when, if at all, they will receive final approval from the U.S. FDA or equivalent foreign regulatory agencies and for which indication; the strength and enforceability of Ziopharm’s intellectual property rights; competition from other pharmaceutical and biotechnology companies as well as risk factors discussed or identified in the public filings with the Securities and Exchange Commission made by Ziopharm, including those risks and uncertainties listed in Ziopharm’s Quarterly Report on Form 10-Q filed by Ziopharm with the Securities and Exchange Commission. We are providing this information as of the date of this press release, and Ziopharm does not undertake any obligation to update or revise the information contained in this press release whether as a result of new information, future events or any other reason.

Investor Relations Contacts:

Adam D. Levy, PhD, MBA
EVP, Investor Relations and Corporate Communications
T: 508.552.9255
E: [email protected]

Chris Taylor
VP, IR and Corporate Communications
T: 617.502.1881
E: [email protected]

Media Relations Contact:
LifeSci Communications:
Patrick Bursey
T: 646.876.4932
E: [email protected] 

Announces Promotion of Lourdes Felix to CEO; Brady Granier to Serve as President

ANAHEIM, CA, Nov. 16, 2020 (GLOBE NEWSWIRE) — via NewMediaWire ‒ BioCorRx Inc. (OTCQB: BICX) (the “Company”), a developer and provider of advanced solutions in the treatment of substance use disorders, today provided a business update for the third quarter ended September 30, 2020. The Company also announced the promotion of Lourdes Felix to CEO of BioCorRx, replacing Brady Granier who will serve as President and will continue to serve as CEO of BioCorRx’s subsidiary, BioCorRx Pharmaceuticals Inc. Ms. Felix will continue in her role as CFO, and both Ms. Felix and Mr. Granier will retain their roles as members of the board of directors.

“Lourdes’ vital contribution to the Company makes her the right CEO for the next chapter at BioCorRx. In our partnership over the years, she has been a key player in defining and executing on our strategic initiatives,” said Mr. Granier. “Specifically, this transition will allow her to oversee capital markets and strategic aspects of the operational business, while allowing me more time to focus on the expansion of our subsidiary, BioCorRx Pharmaceuticals Inc., where I will continue to serve as CEO, as we advance our lead candidate, BICX102, through the FDA approval process. I remain highly encouraged by the outlook for the business and look forward to continuing to work closely with Lourdes as President and fellow board member to support the growth and exciting initiatives underway at BioCorRx.”

“I am grateful and honored to serve as CEO of BioCorRx and appreciate the confidence shown by Brady and the Board of Directors,” said Lourdes. “I would like to thank Brady for his outstanding leadership over the years and his tremendous contributions to BioCorRx, as he has been instrumental in expanding our R&D program under the Company’s subsidiary, BioCorRx Pharmaceuticals Inc., building strategic partnerships and expanding into new markets. I look forward to continuing to work closely with Brady and executing on the Company’s strategic vision in advancing our addiction treatment and weight loss solutions.”

“Our subsidiary, BioCorRx Pharmaceuticals Inc., continues to progress our pivotal good laboratory practice (GLP) preclinical studies of BICX102, a sustained release naltrexone implant for the treatment of opioid and alcohol use disorders. The main GLP study began in March of this year and while limited, we have experienced some delays due to scheduling challenges on the part of the contract research organization (CRO) conducting the study. Our team is currently working on the IND application that we still strive to submit by the end of the year, however that could also happen after the new year if we experience any delays from any of the various third parties we rely on to receive data or prepare the application. Our subsidiary also continues to work on preclinical studies of VDM-001, a new molecule being developed to reverse opioid overdose. Fentanyl has become a major driving force behind the opioid epidemic in the US which continues to be exacerbated by the COVID-19 pandemic. We are very encouraged by some early preclinical data that demonstrated the ability of VDM-001 to block analgesic effects of fentanyl in vivo.”

“We also recently announced that we have formed a partnership with Truusight Health, a healthcare solutions and care navigation and management company, to bring the Company’s Recovery Program to self-funded health plans. Through this partnership, plan members covered under Truusight Health programs will now have access to Beat Addiction Recovery, a medication-assisted treatment (MAT) program, which combines proprietary cognitive-behavioral therapy (CBT) and peer support, with medication prescribed by a licensed treatment provider. We are excited to expand the reach of our recovery program, which helps ensure people have access to remote treatment and recovery during this difficult time,” concluded Lourdes.

About BioCorRx

BioCorRx Inc. (OTCQB: BICX) is an addiction treatment solutions company offering a unique approach to the treatment of substance use and other related disorders. Beat Addiction Recovery (formerly the BioCorRx® Recovery Program) is a substance use disorder recovery program that typically includes BioCorRx’s proprietary Cognitive Behavioral Therapy (CBT) modules along with peer support via mobile app along with medication prescribed by an independent treating physician under their discretion. The UnCraveRx™ Weight Loss Program is also a medication assisted weight loss program; please visit www.uncraverx.com for more information on UnCraveRx™. The Company also conducts R&D under its controlled subsidiary, BioCorRx Pharmaceuticals. For more information on BICX and product pipeline, please visit www.BioCorRx.com.

Safe Harbor Statement

The information in this release includes forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown. risks as well as uncertainties. Although the Company believes that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof.

BioCorRx Inc.

[email protected]

714-462-4880

Investor Relations:

Crescendo Communications, LLC
(212) 671-1020 x304
[email protected]

DOYLESTOWN, Pennsylvania, Nov. 16, 2020 (GLOBE NEWSWIRE) — ProPhase Labs, Inc. (NASDAQ: PRPH), a diversified medical science and technology company, today announced net sales of $3.8 million for the three months ended September 30, 2020, compared to net sales of $2.8 million for the three months ended September 30, 2019. The Company incurred a net loss from continued operations for the three months ended September 30, 2020 of $569,000, or ($0.05) per share, compared to a net loss from continued operations of $428,000, or ($0.04) per share, for the three months ended September 30, 2019. For the three months ended September 30, 2020, the Company also recognized income from discontinued operations of $161,000, or $0.01 per share. The Company incurred a net loss for the three months ended September 30, 2020 of $408,000, or ($0.04) per share, compared to a net loss of $428,000, or ($0.04) per share, for the three months ended September 30, 2019.

Results for the third quarter of 2020 compared to the third quarter of 2019 principally reflect the net effect of (i) an increase in net sales of $1.0 million due to an increase in third party customer orders, (ii) a decrease in sales and marketing expenses of $49,000 resulting from a reduction in marketing expenditures, offset by (iii) an increase in administrative costs of $363,000 due principally to an increase in professional fees.

The Company generated net sales for the nine months ended September 30, 2020 of $9.4 million, as compared to $6.7 million for the nine months ended September 30, 2019. The Company incurred a net loss from continued operations for the nine months ended September 30, 2020 of $1.3 million, or ($0.11) per share, compared to a net loss from continued operations of $2.7 million, or ($0.23) per share, for the nine months ended September 30, 2019. For the nine months ended September 30, 2020, the Company also recognized income from discontinued operations of $161,000, or $0.01 per share. The Company incurred a net loss for the nine months ended September 30, 2020 of $1.1 million, or (0.10) per share, as compared to a net loss of $2.7 million, or (0.23) per share, for the nine months ended September 30, 2019.

Results for the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019 principally reflect the net effect of (i) an increase in net sales of $2.6 million due to an increase in third party customer orders, (ii) a decrease in sales and marketing expenses of $362,000 resulting from a reduction in marketing expenditures and (iii) a decrease in research and development expenditures of $65,000; offset by (iv) an increase in administrative costs of $95,000 due principally to an increase in professional fees.

Ted Karkus, CEO of ProPhase Labs, stated: “Our manufacturing and dietary supplement businesses are strong and growing. We recently expanded distribution of our lead dietary supplement, Legendz XL^®, into Walmart and CVS, in addition to Walgreens, Rite-Aid and other FDM (Food, Drug and Mass) retailers. We are pleased to have achieved a critical mass of distribution and intend to accelerate our television, radio and social media advertising to grow our brands. We also recently announced that we completed the acquisition of a Clinical Laboratory Improvement Amendments (“CLIA”) accredited laboratory headquartered in Old Bridge, New Jersey which can provide a wide range of laboratory testing for diagnosis, screening and evaluation of diseases, including COVID-19 and Respiratory Pathogen Panel (“RPP”) Molecular tests. The lab is owned by the Company’s new, wholly-owned subsidiary, ProPhase Diagnostics, Inc., which was formed to aggregate medical testing business opportunities and expand the lab’s capabilities and capacity. In addition to being validated for swabs, our new lab is also validated for the widely distributed Spectrum Solutions saliva collection COVID-19 test kit. Demand for the Spectrum test kit is high and we look forward to working with and providing these important services to users of Spectrum’s test kits.”

Mr. Karkus continued, “Given our efficient processing, our goal is to provide highly competitive pricing to our customers and to be able to report test results, in most cases, within 24 hours. We believe that these dynamics will lead to significant demand for our testing services.”

Mr. Karkus added, “If ProPhase Labs is able to generate a net margin of just $30 per COVID-19 test (which we believe is conservative based on current industry dynamics), for each 1,000 tests processed per day, our lab could generate approximately $30,000 in net operating income. If these levels can be attained and sustained, just on the basis of processing 1,000 units a day, five days per week, we would project approximately $7.5 million in annualized pre-tax operating income. However, we expect our lab to have capacity to process many more test kits than just 1,000 per day. Our current goal is to have a run rate of at least 4,000 units processed per day, on average, by the end of the first quarter of 2021. We also anticipate processing up to seven days per week.”

Mr. Karkus continued, “We are planning to significantly ramp up our lab’s capacity with the acquisition and installation of highly efficient equipment. We believe that our capacity will be greater than 5,000 tests per day before year-end 2020, and we hope to reach capacity to process 10,000 tests per day by early 2021. Because there are such favorable dynamics in this industry, and significant interest in lab testing services, we are also pursuing adding greater CLIA lab capacities, either by acquisition or by building an additional facility, or both.”

Mr. Karkus cautioned that “The success of the Company’s new diagnostic testing labs business will depend on both the Company attracting sufficient customers who will choose to use the Company’s lab to process their test kits, and the Company’s ability to successfully operate this new business line.”

“We are also pleased to announce that we closed on the sale of our headquarters in Doylestown, Pennsylvania for $2.2 million. These funds are in addition to the approximately $15 million of available working capital as of September 30, 2020. We believe that we have ample working capital for all of our current and projected needs related to the build out of our CLIA lab testing services. We are also aggressively pursuing other strategic investments and acquisitions and hope to have more to share in the near future,” concluded Mr. Karkus.

About ProPhase Labs

ProPhase Labs (NASDAQ: PRPH) is a diversified medical science and technology company with deep experience with OTC consumer healthcare products and dietary supplements. The Company is engaged in the research, development, manufacture, distribution, marketing and sale of OTC consumer healthcare products and dietary supplements in the United States. This includes the development and marketing of dietary supplements under the TK Supplements^® brand. The Company is also developing ProPhase Diagnostics, Inc. (“ProPhase Diagnostics”) to offer COVID-19 and other Respiratory Pathogen Panel (RPP) Molecular tests. The Company also continues to actively pursue strategic investments and acquisition opportunities for other companies, technologies and products inside and outside the consumer products industry. For more information visit us at www.ProPhaseLabs.com.

Forward Looking Statements

Except for the historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our plans to accelerate our media advertising for Legendz XL, our ability to ramp up lab testing capacity and attract users of any labs we might own or acquire, projected net operating profits and pre-tax operating income, demand for our testing services, our plans to acquire or build out additional CLIA labs, demand for our testing services, and our ability to satisfy near-term working capital needs. Management believes that these forward-looking statements are reasonable as and when made. However, such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include but are not limited to the scale, scope and duration of the COVID-19 pandemic, consumer demand for our lab processing services, the competitive environment, challenges relating to entering into new business lines, the failure to obtain certain regulatory approvals, our ability to ramp up our lab’s testing capacity and execute on our business plan, our ability to obtain necessary equipment and raw materials, and the risk factors listed from time to time in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any subsequent SEC filings. 

Investor Contact

Chris Tyson
Managing Director
MZ Group – MZ North America
949-491-8235
[email protected]
www.mzgroup.us

ProPhase Labs, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

		For the Three Months Ended								For the Nine Months Ended
		September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
Net sales		$	3,840			$	2,766			$	9,351			$	6,735
Cost of sales			2,798				1,932				6,615				5,120
Gross profit			1,042				834				2,736				1,615
Operating expenses:
Sales and marketing			253				302				548				910
Administration			1,299				936				3,327				3,232
Research and development			57				57				181				246
Total operating expenses			1,609				1,295				4,056				4,388
Loss from operations			(567	)			(461	)			(1,320	)			(2,773	)
Interest income, net			39				33				53				94
Other expenses			(41	)			–				(41	)			–
Loss from continuing operations			(569	)			(428	)			(1,308	)			(2,679	)
Discontinued Operations:
Income from discontinued operations			161				–				161				–
Income from discontinued operations			161				–				161				–
Net loss		$	(408	)		$	(428	)		$	(1,147	)		$	(2,679	)
Other comprehensive loss:
Unrealized gain (loss) on marketable debt securities			(8	)			(5	)			(2	)			18
Total comprehensive loss		$	(416	)		$	(433	)		$	(1,149	)		$	(2,661	)
Basic and diluted earnings (loss) per share:
loss from continuing operations		$	(0.05	)		$	(0.04	)		$	(0.11	)		$	(0.23	)
Income from discontinued operations			0.01				–				0.01				–
Net loss per share		$	(0.04	)		$	(0.04	)		$	(0.10	)		$	(0.23	)
Weighted average common shares outstanding:
Basic and diluted			11,604				11,565				11,593				11,561

ProPhase Labs, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

		September 30,				December 31,
		2020				2019
						(audited)
Cash and cash equivalents		$	10,860			$	434
Marketable debt securities, available for sale		$	1,403			$	926
Accounts receivable, net		$	2,999			$	2,010
Inventory		$	2,138			$	1,459
Total current assets		$	17,910			$	9,945
Total assets		$	23,033			$	12,274
Total current liabilities		$	2,145			$	933
Total non-current liabilities		$	10,127			$	110
Total stockholders’ equity		$	10,761			$	11,231

UNIONDALE, N.Y., Nov. 16, 2020 (GLOBE NEWSWIRE) — Flushing Financial Corporation (the “Company”) (Nasdaq: FFIC), the parent holding company for Flushing Bank (the “Bank”), announced today that it has successfully completed the integration of Empire Bancorp, Inc. 

John R. Buran, President and CEO, Flushing Financial stated: “I am pleased to report that we successfully completed the transfer of Empire National Bank’s customers to our core systems over this past weekend. We completed this systems conversion in an exceptionally efficient manner – within weeks of the closing of the acquisition. I am extremely proud of all our employees who worked tirelessly and demonstrated superb teamwork, in spite of the challenges presented by the pandemic, to ensure that this integration was a smooth transition for the former Empire customers. With the integration behind us, we are well-positioned to begin to realize the operating efficiencies and growth potential of our new organization.”

About Flushing Financial Corporation

Flushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank^®, a New York State—chartered commercial bank insured by the Federal Deposit Insurance Corporation. The Bank serves consumers, businesses, professionals, corporate clients, and public entities by offering a full complement of deposit, loan, equipment finance, and cash management services through its banking offices located in Queens, Brooklyn, Manhattan, and on Long Island. As a leader in real estate lending, the Bank’s experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. Flushing Bank is an Equal Housing Lender. The Bank also operates an online banking division consisting of iGObanking.com^®, which offers competitively priced deposit products to consumers nationwide, and BankPurely^®, an eco-friendly, healthier lifestyle community brand.

Additional information on Flushing Bank and Flushing Financial Corporation may be obtained by visiting the Company’s website at http://www.flushingbank.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “forecasts”, “goals”, “potential” or “continue” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.

Contact:

Maria A. Grasso
Senior Executive Vice President, Chief Operating Officer
Flushing Financial Corporation
718-961-5400

NEW YORK, Nov. 16, 2020 (GLOBE NEWSWIRE) — BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”) today announced its financial results for the third quarter and nine months ended September 30, 2020.

“We have made good progress in line with our new business, especially the online-to-offline strategy. We opened our first retail pharmacy store in Chongqing at the end of June 2020, then gradually opened five more stores in the latter part of the third quarter,” said Mr. Tiewei Song, Chief Executive Officer and President of BOQI International Medical Inc. “We are also developing our online healthcare platform. We plan to connect the platform with pharmacies, hospitals and other medical institutions to further strengthen our capabilities in online and offline healthcare services.”

Revenues

Revenues for the three months ended September 30, 2020 and 2019 were $3,091,071 and $208,402, respectively. The Company’s revenues for the three months ended September 30, 2020 were principally attributable to wholesale sales of medical devices and generic drugs by our newly acquired Guanzan Group. The Company’s revenues for the three months ended September 30, 2019 were attributable to the sales of products manufactured by the NF Group and from energy saving technical services and product collaboration processing services performed by the NF Group, which we sold in June 2020. Revenues from the wholesale medical devices segment and the wholesale medicine segment for the three months ended September 30, 2020 were $670,296 and $2,391,674, respectively. Revenues from the retail pharmacy segment for the three months ended September 30, 2020 were $29,101.

Revenues for the nine months ended September 30, 2020 and 2019 were $7,317,449 and $1,120,804, respectively. The 553% increase in revenues is attributable to the acquisition of the Guanzan Group in late March 2020. Revenues from the wholesale medicine segment for the nine months ended September 30, 2020 were $4,698,985 and revenues from the wholesale medical device segment for the nine months ended September 30, 2020 were $2,567,029. Revenues from the retail pharmacy segment for the nine months ended September 30, 2020 were $42,898.  

Cost of Revenues

Cost of revenues for the three months ended September 30, 2020 and 2019 were $2,833,793 and $281,014, respectively, reflecting the impact of the acquisition of the Guanzan Group. For the three months ended September 30, 2020, the cost of revenues of the wholesale medical devices segment was $586,939. For the three months ended September 30, 2020, the cost of revenues of our wholesale medicine segment was $2,032,947. For the three months ended September 30, 2020, the cost of revenues for retail pharmacy segment was $227,883, which included an inventory impairment charge of $202,981.
  
Cost of revenues for the nine months ended September 30, 2020 and 2019 were $6,240,962 and $1,030,862, respectively. For the nine months ended June 30, 2020, the cost of revenues of our wholesale medical devices segment was $2,051,563. For the nine months ended September 30, 2020, the cost of revenues of our wholesale medicine segment was $3,759,707. For the nine months ended September 30, 2020, cost of revenues of our retail pharmacy segment was $426,293, which included an inventory write-off of $390,923.

Gross Profit

For the three months ended September 30, 2020, the Company had a gross profit margin of 8.32% compared with a negative gross profit margin of 34.84 % in the quarter ended September 30, 2019. On a sequential basis, gross profit decreased by 14.07% from the second quarter of 2020, due to the decrease in revenues from high gross profit wholesale medical devices segment. The gross profit margin of the wholesale medical devices and wholesale medicine segments for three months ended September 30, 2020 were 12.44% and 15%, respectively. The retail pharmacy segment’s cost of revenues exceeded its revenues by $198,782 in the quarter.

For the nine months ended September 30, 2020, the Company had a gross profit margin of 14.71% compared with a gross profit margin of 8.02% in the first nine months of 2019. The improvement in the gross profit margin in the first nine months ended September 30, 2020 is mainly due to the inclusion of the revenues from the wholesale medical devices and wholesale medicine segments since the acquisition in March 2020. The gross profit margin of the wholesale medical devices and wholesale medicine segments for nine months ended September 30, 2020 were 20.08% and 19.99%, respectively. The retail pharmacy segment’s cost of revenues exceeded its revenues by $383,395 in the nine-month period ended September 30, 2020. 

Operating Expenses

Operating expenses were $1,689,962 for the three months ended September 30, 2020 compared to $359,307 for the same period in 2019, an increase of $1,330,655. The increase is mainly due to the additional amortization of the discounted convertible notes and intangible assets and impairment loss of intangible asset.

Operating expenses were $6,579,201 for the nine months ended September 30, 2020 compared to $1,607,763 for the same period in 2019, an increase of $ 4,975,922 or 309%. Operating expenses for the nine months ended September 30, 2020 consist mainly of amortization of the discounted convertible notes, amortization of intangible assets, meeting and promotional expenses, pharmaceutical and medical device industry compliance management expenses, legal fees, convertible note issuance-related costs in the amount of $211,425 and other professional service fees. The Company also reduced the contingent consideration payable to the former shareholders of Lasting (the parent of Boqi Zhengji) by $5,655,709, following a re-evaluation of such commitment.

Operating expenses also included a $903,573 impairment loss with respect to the intangible assets recognized in the acquisition of Boqi Zhengji.

Other Income

For the three months ended September 30, 2020, the Company reported other income of $5,247 and other interest expense of $339,780, as compared to other income of $58,718 and other interest expense of $ 466,582 for the three months ended September 30, 2019.

For the nine months ended September 30, 2020, the Company reported other income of $6,973,409 and other interest expense of $717,226 compared to other income of $11,021 and other interest expense of $717,226 in the nine months ended September 30, 2019. Other income in the nine months ended September 30, 2020 includes the gain generated from the disposal of the NF Group. 

Net Profit (Loss)

For the three months ended September 30, 2020, the Company reported a net loss of $1,860,573 compared to a net loss of $547,689 for the same period of 2019. For the nine months ended September 30, 2020, the Company reported a net profit of $611,090 compared to a net loss of $1,973,382 for the same period in 2019.

Liquidity and Capital Resources

On September 30, 2020, the Company had cash and cash equivalents of $11, 585,325 compared to cash and cash equivalents of $36,363 on December 31, 2019. As of September 30, 2020, the Company had negative working capital of $5,439,912 as compared to negative working capital of $500,765 on December 31, 2019.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These unaudited condensed financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.

About BOQI International Medical Inc.

BOQI International Medical Inc. (formerly known as NF Energy Saving Corporation) (NASDAQ: BIMI) was founded in 2006. In February 2019, the Board of Directors of the company was reorganized with a focus on the health industry. The Company is now exclusively a healthcare products provider, offering a broad range of healthcare products and related services. For more information about BOQI International Medical, please visit www.usbimi.com.

Safe Harbor Statement

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, the Company’s ability to achieve profitable operations, its ability to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements, the effects of the spread of the Coronavirus (COVID-19), the demand for the Company’s products and the Company’s customers’ economic condition, risk of operations in the People’s Republic of China, general economic conditions and other risk factors detailed in the Company’s annual report and other filings with the United States Securities and Exchange Commission. Investors are urged to read the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020 for further information about the Company’s financial results, liquidity and capital resources.

IR Contact:

Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email: [email protected]  

BOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

		September 30,				December 31,
		2020				2019
		(Unaudited)
ASSETS
CURRENT ASSETS
Cash		$	11,585,321			$	36,363
Restricted cash			1,365				311
Accounts receivable, net			3,935,514				24,840
Advances to suppliers			2,251,811				1,252
Amount due from related parties			–				1,350
Inventories, net			4,195,247				707,526
Prepayments and other receivables			3,495,570				59,333
Assets from discontinued operations			–				21,218,983
Total current assets			25,464,828				22,049,958
NON-CURRENT ASSETS
Deferred tax assets			165,995				–
Property, plant and equipment, net			854,897				38,641
Intangible assets, net			642,741				7,973,179
Goodwill			6,443,170				–
Total non-current assets			8,106,803				8,011,820
TOTAL ASSETS		$	33,571,631			$	30,061,778
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans		$	866,297			$	–
Long-term loans due within one year			185,147				–
Convertible promissory notes, net			3,616,330				107,383
Derivative liability			1,173,505				1,272,871
Accounts payable, trade			6,790,000				641,927
Advances from customers			710,515				67,975
Amount due to related parties			586,027				305,760
Taxes payable			308,920				861
Other payables and accrued liabilities			5,788,175				6,044,378
Liabilities from discontinued operations			–				13,108,038
Total current liabilities			20,024,916				21,549,193
Long-term loans – non-current portion			138,632				–
TOTAL LIABILITIES			20,163,548				21,549,193
EQUITY
Common stock, $0.001 par value; 50,000,000 shares authorized; 10,505,821 and 9,073,289 shares issued and outstanding as of September 30 2020 and December 31, 2019, respectively			10,506				9,073
Additional paid-in capital			24,081,799				15,643,825
Statutory reserves			–				2,227,634
Accumulated deficit			(10,834,660	)			(10,881,667	)
Accumulated other comprehensive income			26,633				1,683,770
Total BOQI International Medical Inc.’s equity			13,284,278				8,682,635
NON-CONTROLLING INTERESTS			123,805				(170,050	)
Total equity			13,408,083				8,512,585
Total liabilities and equity		$	33,571,631			$	30,061,778

 BOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (GAIN)/LOSS
(UNAUDITED)

		For the Three Months Ended September 30								For the Nine Months Ended September 30
		2020				2019				2020				2019
REVENUES			3,091,071				208,402				7,317,449				1,120,804
COST OF REVENUES			2,833,793				281,014				6,240,962				1,030,862
GROSS PROFIT/(LOSS)			257,278				(72,612	)			1,076,487				89,942
OPERATING EXPENSES:
Sales and marketing			377,977				33,096				1,028,746				119,820
General and administrative			1,311,985				326,211				5,554,939				1,487,943
Total operating expenses			1,689,962				359,307				6,583,685				1,607,763
LOSS FROM OPERATIONS			(1,432,684	)			(431,919	)			(5,507,198	)			(1,517,821	)
OTHER INCOME (EXPENSE)
Interest expense			(339,780	)			(174,488	)			(717,226	)			(466,582	)
Other income			5,247				58,718				6,973,409				11,021
Total other income (expense), net			(334,533	)			(115,770	)			6,256,183				(455,561	)
INCOME (LOSS) BEFORE INCOME TAXES			(1,767,217	)			(547,689	)			748,985				(1,973,382	)
PROVISION FOR INCOME TAXES			93,356				—				137,895				—
NET INCOME (LOSS)			(1,860,573	)			(547,689	)			611,090				(1,973,382	)
Less: net income (loss) attributable to  non-controlling interest			49,374				(3,220	)			75,648				777
NET INCOME (LOSS) ATTRIBUTE TO BOQI INTERATIONAL MEDICAL INC.		$	(1,909,947	)		$	(544,469	)		$	535,442			$	(1,974,159	)
OTHER COMPREHENSIVE INCOME(LOSS)
Foreign currency translation adjustment			(108,236	)			(271,289	)			34,802				(244,964	)
TOTAL COMPREHENSIVE INCOME(LOSS)			(1,968,809	)			(818,978	)			645,892				(2,218,346	)
Less: comprehensive income (loss) attributable to non-controlling interests			1,193				(1,260	)			(1,408	)			3,286
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO BOQI INTERNATIONAL MEDICAL INC.		$	(1,970,002	)		$	(817,718	)		$	647,300			$	(2,221,632	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
Basic and diluted			10,505,821				8,073,289				9,987,848				7,871,824
INCOME (LOSS) PER SHARE
Basic and diluted		$	(0.19	)		$	(0.07	)		$	0.06			$	(0.25	)

  

BOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
(CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

		For the Nine Months Ended September 30,
		2020				2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (Loss)		$	611,090			$	(1,973,382	)
Adjustments to reconcile net income/(loss) to cash used in operating activities:
Depreciation and amortization			810,264				716,433
(Profit) on disposal of property			(6,944,469	)			(43,712	)
Allowance for doubtful accounts			(263,260	)			(75,203	)
Amortization of discount of convertible promissory notes			1,950,901				1,239
Change in derivative liabilities			43,224				2,132
Impairment loss from construction in progress			–				24,803
Allowance for inventory provision			390,923				–
Impairment loss of intangible assets			903,573				–
Change in operating assets and liabilities
Accounts receivable			(1,284,400	)			970,444
Advances to suppliers			418,847				–
Inventories			(2,928,419	)			(634,860	)
Prepayments and other receivables			(1,245,981	)			(67,709	)
Accounts payable, trade			4,844,674				(284,077	)
Advances from customers			(707,586	)
Taxes payable			(9,368	)			55,943
Other payables and accrued liabilities			594,793				371,982
Net cash used in operating activities			(2,815,194	)			(935,967	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash received from acquisition of Guanzan Group			95,220				–
Proceeds from disposal of property, planet, and equipment			–				50,063
Purchase of property, planet, and equipment			(121,176	)			–
Cash received from sale of NF Group			10,375,444				–
Repayment from related party loan			–				540,294
Loan to related party			–				(1,161,458	)
Net cash provided by (used in) investing activities			10,349,488				(571,101	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of convertible promissory notes			3,457,325				–
Proceeds from short-term loans			27,371				5,835,897
Repayment of short-term loans			(65,516	)			(5,838,815	)
Repayment of long-term loans			(48,164	)			–
Amount financed by related parties			173,547				1,591,910
Net cash provided by financing activities			3,544,563				1,588,992
EFFECT OF EXCHANGE RATE ON CASH			471,155				(33,401	)
INCREASE IN CASH			11,550,012				48,523
CASH AND CASH EQUIVALENTS, beginning of period			36,674				197,356
CASH AND CASH EQUIVALENTS, end of period		$	11,586,686			$	245,879
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income tax		$	42,130			$	–
Cash paid for interest expense, net of capitalized interest		$	62,636			$	434,198
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES
Issuance of common shares for the equity acquisition of Chongqing Guanzan Technology Co., Ltd.		$	2,717,000			$	–
Goodwill recognized from the equity acquisition of the Boqi Group		$	6,443,170			$	2,040,000
Outstanding payment for the equity acquisition of Chongqing Guanzan Technology Co., Ltd.		$	4,414,119			$	–
Common shares to be issued upon conversion of convertible promissory notes		$	5,160,473			$	–

PHILADELPHIA, Pa., Nov. 16, 2020 (GLOBE NEWSWIRE) — Prudential Bancorp, Inc. (the “Company”) (Nasdaq:PBIP), the holding company for Prudential Bank (the “Bank”), reported net income of $548,000, or $0.07 per basic and diluted share, for the quarter ended September 30, 2020 as compared to $2.6 million, or $0.30 per basic share and $0.29 per diluted share, for the same quarter in fiscal 2019. For the fiscal year ended September 30, 2020, the Company reported net income of $9.6 million, or $1.12 per basic and diluted share as compared to $9.5 million, or $1.09 per basic and $1.07 per diluted share, for fiscal 2019.  

Dennis Pollack, President and CEO, commented, “As we continue to serve our customers and communities in this challenging time, we are maintaining our focus on credit quality and being well capitalized, due to the on-going economic volatility caused by the COVID-19 pandemic. Our overall operating performance remained solid, while we continued to prudently provision an additional $1.6 million during the fourth quarter due to the economic uncertainty created by the pandemic and to strengthen the balance sheet.” Mr. Pollack continued, “We are striving to create additional operational efficiencies in our organization to offset margin compression and increased provisioning. We are continuing to closely monitor the rapidly challenging environment surrounding the COVID-19 pandemic but remain confident in our long-term strength and stability and our ability to weather the storm of this crisis. I also want to thank our dedicated staff who have continued to go the extra mile to help our customers and community during these challenging times.”

Highlights for the
Fiscal Year
and Quarte
r
Ended
September
30, 2020

• Record level of net income for the fiscal year ended September 30, 2020.
• Dividends for the fiscal year ended September 30, 2020 totaled $0.71 per share as compared to $0.65 per share for fiscal 2019.
• Our efficiency ratio improved significantly during the fiscal year ended September 30, 2020, improving to 54.1% as compared to 58.4% for fiscal 2019.
• On a linked quarter basis, our net interest margin improved to 1.89% for the three months ended September 30, 2020 compared to 1.83% for the three months ended June 30, 2020.
• The Company repurchased 829,388 shares of common stock at a weighted average cost of $12.70, well below the Company’s book value per share.
• The Company’s tangible book value per share (non-GAAP) was $15.07 per share at September 30, 2020 as compared to $14.97 at September 30, 2019.
• The Company announced a new stock repurchase program to repurchase up to 5% (407,000 shares) of its outstanding shares of common stock over a one-year period or such longer period of time as may be necessary to complete such repurchases.
• The Company originated 63 Paycheck Protection Program loans totaling approximately $5.1 million. These loans were subsequently sold at a gain of $111,000.
• Based on management’s evaluation and taking into account the estimated effects of the COVID-19 pandemic, provisions for loan losses totaling $1.7 million and $3.0 million, respectively, for the three months and the fiscal year ended September 30, 2020 were established.
• The allowance for loan losses increased to $8.3 million or 1.4% of total loans as of September 30, 2020 as compared to $5.4 million or 0.9% of total loans as of September 30, 2019.

Net Interest Income:

For the three months ended September 30, 2020, net interest income decreased by $831,000 to $5.4 million as compared to $6.2 million for the same period in fiscal 2019. The decrease reflected the effects of a $2.0 million, or 17.5%, decrease in interest income partially offset by a decrease of $1.2 million, or 22.1%, in interest paid on deposits and borrowings. The decline in net interest income continued to primarily reflect the effects of margin compression. The weighted average yield on interest-earning assets decreased by 47 basis points, to 3.38% for the quarter ended September 30, 2020 from the comparable period in 2019 due to the decline in market yields of interest, in particular as a result of the Federal Reserve’s Open Market Committee’s action to reduce the Federal Funds Rate earlier in the year. The weighted average rate paid on interest-bearing liabilities decreased from 1.99% to 1.62% as we continued our efforts to reduce the Company’s reliance on wholesale funds, which are generally a more expensive funding source.

In addition, with the unexpected significant decline in the Wall Street Journal Prime Rate (“WSJ Prime”) during the second half of fiscal 2020 as a result of actions taken to address the COVID-19 pandemic, a significant portion of the Company’s commercial real estate and construction loan loans which bear adjustable rates experienced downward adjustments in the interest rates borne by such loans during the third and fourth quarters of fiscal 2020.

For the fiscal year ended September 30, 2020, net interest income was $22.8 million as compared to $24.8 million for the same period in fiscal 2019. The decrease primarily was due to a decrease of $1.6 million, or 6.0%, in interest on loans combined with a$136,000 or 0.7% increase in interest expense. The weighted average yield on interest-earning assets decreased by 37 basis points, to 3.54%, for the fiscal year ended September 30, 2020 from 3.92% for fiscal 2019 primarily due to the reduction in market yields of interest which created downward pressure on our yields in all interest-earning asset categories, in particular commercial real estate and construction loans. The increase in interest expense was due to a $74.7 million increase in the average balance of interest-bearing liabilities to fund growth during fiscal 2020. The weighted average cost of borrowings and deposits decreased by 12 basis points to 1.79% for fiscal 2020 from 1.91% for fiscal 2019.

For the three months and the fiscal year ended September 30, 2020, the net interest margin was 1.89% and 1.92%, respectively, compared to 2.05% and 2.20%, respectively, for the same periods in fiscal 2019. The margin compression experienced in the 2020 periods in large part reflected the more rapid decline in asset yields as compared to declines in liability costs as a result of the declining interest rate environment. As part of the Company’s strategic lending initiatives, the Company has increased its involvement in commercial real estate and construction lending. The yields on such loans are typically tied to the WSJ Prime and adjust rapidly with changes in the WSJ Prime. As a result of the implementation of the Company’s strategic lending initiatives, its interest-earning assets are more rate sensitive than its interest-bearing liabilities and as a result, adjust more rapidly to changes in interest rates than its interest-bearing liabilities.

For the three months ended September 30, 2020, net interest income increased by $62,000 to $5.4 million as compared to $5.3 million for the three months ended June 30, 2020. The decrease reflected the effects of a decrease of $253,000, or 5.6%, in interest paid on deposits and borrowings, partially offset by a decrease of $22,000, or 2.0% in interest earned on interest-earning assets. The weighted average rate paid on interest-bearing liabilities decreased from 1.73% to 1.62% as we continued our efforts to reduce the Company’s reliance on wholesale funds.  

Non-Interest Income:

Non-interest income amounted to $841,000 and $8.1 million for the three months and the fiscal year ended September 30, 2020, respectively, compared to $985,000 and $3.1 million, respectively, for the comparable periods in fiscal 2019. The increase experienced in fiscal 2020 was primarily attributable to the gain on sale of investment securities totaling $6.0 million compared to gains of totaling $1.1 million during fiscal 2019.   The investment securities sales were consummated to recognize gains in the portfolio in order to take advantage of the historically low interest rate environment which has resulted in significant appreciation in the fair value of such investments.

Non-Interest Expenses:

For the three months and the fiscal year ended September 30, 2020, non-interest expense increased $306,000 or 7.8%, and $455,000 or 2.8%, respectively, compared to the same periods in fiscal 2019. The increase was due in large part to the hiring of additional personnel in our lending operations to support our expanded lending activities.   Partially offsetting this increase for the fiscal year ended September 30, 2020 was a decrease in occupancy and advertising expense as the Company maintained its focus on the continued implementation of operating efficiencies. The continued improvement of the Company’s efficiency ratio reflects the success of management’s efforts. The efficiency ratio for the fiscal year ended September 30, 2020 improved to 54.1% from 58.4% for fiscal 2019.

Income Taxes:

For the three months and fiscal year ended September 30, 2020, the Company recorded an income tax benefit of $239,000 and income tax expense of $1.6 million, respectively, compared to income tax expense of $554,000 and $1.9 million, respectively, for the same periods in fiscal 2019. The decrease in both 2020 periods was primarily due to tax benefits recognized as a result of stock compensation plans.

Balance Sheet:

The Company had total assets of $1.2 billion at September 30, 2020 compared to $1.3 billion at September 30, 2019. At September 30, 2020, the investment portfolio decreased by $138.3 million to $443.2 million as compared to $581.5 million at September 30, 2019 primarily as a result of investment securities sales, calls and paydowns of amortizing mortgage-backed securities. Net loans receivable increased slightly by $1.7 million to $587.2 million at September 30, 2020 from $585.5 million at September 30, 2019 due primarily to the continued intense competition for quality loans combined with the uncertain economic climate created by the COVID-19 pandemic. In addition, the Company sold a $14.0 million package of long-term, fixed-rate mortgage loans as part of its strategy to address interest-rate margin compression as well as sold the PPP loans generated in the third quarter of fiscal 2020.

Total liabilities were $1.1 billion at both September 30, 2020 and September 30, 2019. Deposits increased by $25.5 million to $770.9 million at September 30, 2020 from $745.4 million at September 30, 2019. The increase was primarily in demand deposit and money market products. FHLB borrowings decreased by $91.7 million to $285.3 million at September 30, 2020 from $376.9 million at September 30, 2020 as the Company allowed higher costing FHLB borrowings to run-off as they mature in order to reduce its cost of funds.

Total stockholders’ equity decreased by $10.5 million to $129.1 million at September 30, 2020 from $139.6 million at September 30, 2019. The decrease was primarily due to treasury stock purchases, net of stock plan activity, totaling $9.5 million. During the fiscal year ended September 30, 2020, the Company repurchased 829,388 shares at an average cost of $12.70, which is well below book value per share.   Also contributing to the decrease were dividend payments totaling $6.2 million combined with an aggregate $4.1 million decrease in the fair market value of interest rate swaps and available for sale securities which significantly reduced other comprehensive income (loss). The decrease in the fair value of the interest rate swaps was due to the large decrease in market rates of interest during the second and third quarters of fiscal 2020. These decreases were partially offset by net income of $9.6 million for the fiscal year ended September 30, 2020.

Asset Quality:

At September 30, 2020, the Company’s non-performing assets totaled $13.0 million or 1.1% of total assets as compared to $14.3 million or 1.1% of total assets at September 30, 2019. Non-performing assets at September 30, 2020 included five construction loans aggregating $8.5 million, 28 one-to-four family residential loans aggregating $3.1 million and four commercial real estate loans aggregating $1.4 million. There was no real estate acquired through foreclosure or deed-in-lieu as of September 30, 2020. At September 30, 2020, the Company had four loans totaling $5.0 million that were classified as troubled debt restructurings (“TDRs”). One TDR is on non-accrual and consists of a $415,000 loan secured by a single-family residential property and is performing in accordance with the restructured terms. The three remaining TDRs totaling $4.6 million are also classified as non-accrual and are part of a lending relationship totaling $10.4 million (after taking into account the previously disclosed $1.9 million write-down recognized during the quarter ending March 31, 2017 related to this borrowing relationship). The primary project of the borrower (the development of a 169-unit townhouse project in Bristol Borough, Pennsylvania) is the subject of litigation between the Bank and the borrower. As previously disclosed, subsequent to the commencement of the litigation, the borrower filed for bankruptcy under Chapter 11 (Reorganization) of the federal bankruptcy code in June 2017. The Bank has moved the underlying litigation noted above with the borrower and the Bank from state court to the federal bankruptcy court in which the bankruptcy proceeding is being heard. The state litigation is stayed pending the resolution of the bankruptcy proceedings. Nine units have been sold in the project and a portion of the proceeds have been applied against the outstanding debt.

The Company recorded provisions for loan losses of $1.7 million and $3.0 million, respectively, for the three months and the fiscal year ended September 30, 2020, compared to a $100,000 provision for loan losses for the same periods in fiscal 2019, primarily due to the continued uncertainty associated with the economic effects of the COVID-19 pandemic, especially in light of the increasing level of cases of COVID-19 in recent months, and the potential credit deterioration caused thereby. Minimal delinquencies have occurred as of September 30, 2020 due to the effects of the COVID-19 pandemic. There were no loan deferments outstanding as of September 30, 2020 and all existing deferrals had ended by September 30, 2020 compared to loans on deferral totaling $149.7 million, or 21.6% of total loans at June 30, 2020.  Two participation interests in commercial real estate loans aggregating $10.0 million, or 1.5% of total loans, each entered into a subsequent deferral period during October 2020.  With respect to one of the two loan participations on deferral in the amount of $3.0 million, the Company was granted a put option as an integral part of the purchase of the participation from the lead lender. The Company has notified the lead lender that it is exercising the put option. These deferments were not considered to be TDRs as of September 30, 2020 as all applicable borrowers were current as of December 31, 2019 and the request for the deferments were related to the current economic conditions caused by the COVID-19 pandemic, and not by underlying weaknesses within the respective loans. Notwithstanding the foregoing, the Company believes there is a material risk that credit losses and non-performing assets may increase due to current economic conditions. During the quarter and fiscal year ending September 30, 2020, the Company recorded charge offs of $50,000 and $145,000, respectively. During the three months and fiscal year ended September 30, 2020, the Company recorded recoveries aggregating $12,000 and $30,000, respectively.  During the three months and the fiscal year ended September 30, 2019, the Company recorded two charge offs amounting to $38,000. Recoveries of $2,000 and $166,000 were recognized during the quarter and fiscal year ended September 30, 2019, respectively.

The allowance for loan losses totaled $8.3 million, or 1.4% of total loans and 63.7% of total non-performing loans at September 30, 2020 as compared to $5.4 million, or 0.9% of total loans and 38.7% of total non-performing loans at September 30, 2019. The Company believes that the allowance for loan losses at September 30, 2020 was sufficient to cover all inherent and known losses associated with the loan portfolio at such date.

COVID-19 Related Information

As noted above, in response to the current situation surrounding the COVID-19 pandemic, the Company is providing assistance to its customers in a variety of ways. The Company participated in the Paycheck Protection Program offered under the CARES Act as a Small Business Administration (“SBA”) lender. During the quarter ended June 30, 2020, we had originated 63 requests for PPP loans totaling approximately $5.1 million. These loans were sold during the quarter ended September 30, 2020 at a net gain of $111,000. We are working closely with our loan customers to effectively manage our portfolio through the ongoing uncertainty surrounding the duration, impact and government response to the crisis.

The primary method of relief is to allow the borrower to defer their loan payments for three months (and extending the term of the loan accordingly). The CARES Act and regulatory guidelines suspend temporarily the determination of certain loan modifications related to the COVID19 pandemic from being treated as TDRs. See “Asset Quality” above”.

While the Company’s banking operations were not restricted by the government stay-at-home orders, the Company took steps to protect its employees and customers by providing for remote working for many employees, enhancing cleaning procedures for the Company’s offices, in particular its branch offices, requiring face masks to be worn by employees and maintaining appropriate social distancing in our offices. The Company continues to assess and monitor the COVID-19 pandemic and will take additional such steps as are necessary to protect its employees and assist its depositor and borrower customers during this difficult time.

About Prudential Bancorp, Inc.:

Prudential Bancorp, Inc. is the holding company for Prudential Bank. Prudential Bank is a Pennsylvania-chartered, FDIC-insured savings bank that was originally organized in 1886. The Bank conducts business from its headquarters and main office in Philadelphia, Pennsylvania as well as nine additional full-service financial centers, seven of which are in Philadelphia, one in Drexel Hill, Delaware County, and one in Huntingdon Valley, Montgomery County, Pennsylvania.

Forward




–




Looking Statements:

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, expectations or predictions of future financial or business performance, conditions relating to the Company. These forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond the Company’s control). The words “may,” “could,” “should,” “would,” “will,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements.

In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission (“SEC”) and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; the scope and duration of the COVID-19 pandemic; the effects of the COVID-19 pandemic, including on the Company’s credit quality and operations as well as its impact on general economic conditions; legislative and regulatory changes including actions taken by governmental authorities in response to the COVID-19 pandemic; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, in each case as may be affected by the COVID-19 pandemic, competition, changes in the quality or composition of the Company’s loan, investment and mortgage-backed securities portfolios; geographic concentration of the Company’s business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees.

The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company to reflect events or circumstances occurring after the date of this press release.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review the Company’s filings with the SEC, including the “Risk Factors” section in its most recent Annual Report on Form 10-K for the year ended September 30, 2019, as supplemented by its Form 10-Q for the quarter ended June 30, 2020 and as may be further supplemented by quarterly or other reports subsequently filed with the SEC.

	SELECTED CONSOLIDATED FINANCIAL OPERATING AND OTHER DATA
	(Unaudited)
	At September 30,						At September 30,
	2020						2019
	(Dollars in Thousands)
Selected Consolidated Financial and Other Data (Unaudited):
Total assets	$	1,223,353					$	1,289,434
Cash and cash equivalents		117,081						47,968
Investment and mortgage-backed securities:
Held-to-maturity		22,860						68,635
Available-for-sale		420,415						512,822
Loans receivable, net		587,230						585,456
Goodwill and intangible assets		6,442						6,550
Deposits		770,949						745,444
FHLB advances		285,254						376,904
Non-performing loans		13,037						13,936
Non-performing assets		13,037						14,284
Stockholders’ equity		129,117						139,611
Full-service offices		10						10

	At or For the Three Months Ended September 30,										At or For the Fiscal Year Ended September 30,
		2020				2019						2020				2019
	(Dollars in Thousands, Except Per Share Amounts)
Selected Operating Data (unaudited) :
Total interest income	$	9,599			$	11,631					$	42,227			$	44,040
Total interest expense		4,233				5,434						19,425				19,289
Net interest income		5,366				6,197						22,802				24,751
Provision for loan losses		1,650				100						3,025				100
Net interest income after provision for loan losses		3,716				6,097						19,777				24,651
Total non-interest income		841				985						8,103				3,094
Total non-interest expense		4,248				3,942						16,725				16,270
Income before income taxes		309				3,140						11,155				11,475
Income tax (benefit) expense		(239	)			554						1,600				1,945
Net income	$	548			$	2,586					$	9,555			$	9,530
Basic earnings per share	$	0.07			$	0.30					$	1.12			$	1.09
Diluted earnings per share	$	0.07			$	0.29					$	1.12			$	1.07
Dividends paid per common share	$	0.07			$	0.05					$	0.71			$	0.65
Tangible book value per share at end of period(1)	$	15.07			$	14.97					$	15.07			$	14.97
Common shares outstanding (at period end)		8,138,675				8,889,447						8,138,675				8,889,447
Selected Operating Ratios( 2 ) (unaudited) :
Average yield on interest-earning assets		3.38	%			3.85			%			3.54	%			3.92		%
Average rate paid on interest-bearing liabilities		1.62	%			1.99			%			1.79	%			1.91		%
Average interest rate spread (3)		1.76	%			1.86			%			1.75	%			2.00		%
Net interest margin (3)		1.89	%			2.05			%			1.92	%			2.20		%
Average interest-earning assets to average interest-bearing liabilities		108.94	%			110.83			%			109.69	%			111.46		%
Net interest income after provision for loan losses to non-interest expense		87.48	%			154.67			%			118.25	%			151.51		%
Total non-interest expense to total average assets		1.39	%			1.26			%			1.33	%			1.38		%
Efficiency ratio(4)		68.44	%			54.89			%			54.12	%			58.43		%
Return on average assets		0.18	%			0.83			%			0.76	%			0.81		%
Return on average equity		1.69	%			7.47			%			6.88	%			7.06		%
Average equity to average total assets		10.62	%			11.08			%			11.04	%			11.47		%

	At or for the Three Months Ended September 30,					At or for the Fiscal Year Ended September 30,
	2020		2019			2020		2019
Asset Quality Ratios( 5 )
Non-performing loans as a percentage of loans receivable, net(6)	2.22	%	2.38	%		2.22	%	2.38	%
Non-performing assets as a percentage of total assets(6)	1.07	%	1.11	%		1.07	%	1.11	%
Allowance for loan losses as a percentage of total loans	1.39	%	0.91	%		1.39	%	0.91	%
Allowance for loan losses as a percentage of non-performing loans	63.68	%	38.70	%		63.68	%	38.70	%
Net charge-offs (recoveries) to average loans receivable	0.04	%	(0.07	)%		0.02	%	(0.03	)%
Capital Ratio s ( 7 )
Tier 1 leverage ratio
Company	10.34	%	10.89	%		10.34	%	10.89	%
Bank	10.51	%	10.49	%		10.51	%	10.49	%
Tier 1 common risk-based capital ratio
Company	17.21	%	18.43	%		17.21	%	18.43	%
Bank	16.88	%	18.10	%		16.88	%	18.10	%
Tier 1 risk-based capital ratio
Company	17.21	%	18.43	%		17.21	%	18.43	%
Bank	16.88	%	18.10	%		16.88	%	18.10	%
Total risk-based capital ratio
Company	18.41	%	19.27	%		18.41	%	19.27	%
Bank	18.08	%	18.94	%		18.08	%	18.94	%

(1) Non-GAAP measure: see reconciliation below. (2) With the exception of end of period ratios, all ratios are based on average monthly balances during the indicated periods and are annualized where appropriate. (3) Average interest rate spread represents the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities. Net interest margin represents net interest income as a percentage of average interest-earning assets. (4) The efficiency ratio represents the ratio of non-interest expense divided by the sum of net interest income and non-interest income. (5) Asset quality ratios and capital ratios are end of period ratios, except for net charge-offs to average loans receivable. (6) Non-performing assets generally consist of all loans on non-accrual, loans which are 90 days or more past due as to principal or interest, and real estate acquired through foreclosure or acceptance of a deed-in-lieu of foreclosure. Non-performing assets and non-performing loans also include loans classified as troubled debt restructurings (“TDR”) due to being recently restructured. TDRs are initially placed on non-accrual in connection with such restructuring and remain on non-accrual until such time that an adequate sustained payment period under the restructured terms has been established to justify returning the loan to accrual status, generally at least six months. It is the Company’s policy to cease accruing interest on all loans which are 90 days or more past due as to interest or principal. (7) The Company is not subject to the regulatory capital ratios imposed by Basel III on bank holding companies because the Company is deemed to be a small bank holding company.

Non-GAAP Measures Disclosure

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management believes that the supplemental non-GAAP information provided in this press release is utilized by market analysts and others to evaluate a company’s financial condition and, therefore, such information is useful to investors. This disclosure should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures presented by other companies.

The following table shows the reconciliation of the Company’s book value and tangible book value (a non-GAAP measure which excludes goodwill and the core deposit intangible resulting from the Polonia Bancorp, Inc. acquisition as of January 1, 2017 from total stockholders’ equity as calculated in accordance with GAAP).

		As of September 3 0 , 20 20					As of September 30, 201 9
(In Thousands, Except Per Share Amounts)
		Book Value		Tangible Book Value			Book Value		Tangible Book Value
Total stockholders’ equity		$	129,117	$	129,117		$	139,611	$	139,611
Less intangible assets:
Goodwill			—		6,102			—		6,102
Core deposit intangible			—		342			—		448
Total intangibles		$	—	$	6,444		$	—	$	6,550
Adjusted stockholders’ equity		$	129,117	$	122,673		$	139,611	$	133,061
Shares of common stock outstanding			8,138,675		8,138,675			8,889,447		8,889,447
Adjusted book value per share		$	15.86	$	15.07		$	15.71	$	14.97

Contact: Jack E. Rothkopf
Chief Financial Officer
(215) 755-1500

NEW YORK, Nov. 16, 2020 (GLOBE NEWSWIRE) — EXL [NASDAQ: EXLS], a leading operations management and analytics company, today announced the release of its 2019 sustainability report. The report highlighted EXL’s strategies for promoting the health and growth potential of employees, responsibly managing its environment footprint, and positively impacting the communities in which it operates.

“As we confront historic new operational, social, and environmental challenges, we have all seen first-hand that agility, resilience, and sustainability are some of the most valuable commodities that a business can have,” stated Rohit Kapoor, Vice Chairman and Chief Executive Officer, EXL, within the report. “The experience of the last several months has forced us all to dig deeper, look harder at the status quo and commit ourselves to business strategies that foster growth beyond bottom line financial metrics.”

The report focuses on EXL’s sustainability measures across several key areas aligned with the United Nations’ Sustainable Development Goals. These areas include:

• Business Integrity to ensure long-term success through corporate governance, ethics and business partner management
• Our People to continuously train employees and create the next generation of leaders, as well as promote workforce diversity to foster an inclusive atmosphere
• Environmental
  Stewardship to promote the efficient use of natural resources and minimize pollution
• Operational Excellence to provide resilient high-quality services, implement innovative solutions and ensure data integrity
• Community Engagement to drive positive social change across every geography and community in which EXL operates

The report was developed as per the Global Reporting Initiative Standards. To view the full report, please visit this link.

About EXL

EXL (NASDAQ: EXLS) is a leading operations management and analytics company that helps our clients build and grow sustainable businesses. By orchestrating our domain expertise, data, analytics and digital technology, we look deeper to design and manage agile, customer-centric operating models to improve global operations, drive profitability, enhance customer satisfaction, increase data-driven insights, and manage risk and compliance. Headquartered in New York, EXL has more than 31,800 professionals in locations throughout the United States, the UK, Europe, India, the Philippines, Colombia, Australia and South Africa. EXL serves multiple industries including insurance, healthcare, banking and financial services, utilities, travel, transportation and logistics, media and retail, among others. For more information, visit www.exlservice.com.

Media - US
Michael Sherrill
Vice President Marketing
646-419-0778
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Media - Europe, India and APAC
Shailendra Singh
Vice President Corporate Communications
+91-98104-76075
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Investor Relations
Steven N. Barlow
Vice President Investor Relations
212-624-5913
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