Market Newsdesk

November 12, 2020 4:09 pm

Kubient Reports Third Quarter 2020 Results

PR Newswire

NEW YORK, Nov. 12, 2020 /PRNewswire/ — Kubient, Inc. (NasdaqCM: KBNT, KBNTW) (“Kubient” or the “Company”), a cloud-based software platform for digital advertising, today reported financial results for the third quarter and nine months ended September 30, 2020.

Third Quarter 2020 and Recent Operational Highlights

Onboarded former Director at Centro, advertising technology and publishing veteran, Ryan Adams, as Senior Vice President of Partnerships
Appointed Chairman, Founder, and Chief Strategy Officer (“CSO”), Paul Roberts, as Interim Chief Executive Officer (“CEO”)
Evaluated and streamlined The Associated Press’ (“AP”) digital advertising supply chain, resulting in a reduction in half of its non-essential vendors and a more optimized and cost-effective infrastructure
Discovered new “Weasel Injection” ad fraud scheme or fake traffic being purchased by Demand Side Platforms (“DSP”) and Supply Side Platforms (“SSP”) of major brands
Publisher inventory that Kubient can monetize, or ad impression opportunities, for the Audience Cloud, Kubient’s flexible open marketplace for advertisers and publishers to reach, monetize and connect their audiences, increased 428% from September to October
Closed an initial public offering (IPO) of 2,500,000 units, resulting in gross proceeds of approximately $12.5 million, before deducting underwriting discounts and commissions and other offering expenses

Management Commentary

“Our results for the third quarter were an encouraging step forward, driven by a number of key developments including our successful optimization of the AP’s ad infrastructure as well as our noteworthy detection of the Weasel Injection fraud through our Kubient Artificial Intelligence (KAI) pre-bid ad-fraud prevention tool,” said Kubient Founder, Chairman, CSO, and Interim CEO Paul Roberts. “As the digital advertising industry began to pick back up during the period, we witnessed an influx of ‘supply’ or publisher inventory connected to our audience cloud platform. To address this unmet and growing need, we’ve brought on a senior level ad veteran in Ryan Adams, who will be focused on maximizing this new monetization opportunity. Our plan with his new team will be to attract more brands and ad agencies to our audience cloud, ultimately driving demand-side revenue and supporting the ready-made supply-side inventory.

“The additional data points of progress we’re seeing with our ad fraud prevention tool KAI are also encouraging. The Weasel Injection scheme proved to be a major issue for a number of global enterprises, underscoring just how prevalent this issue is and highlighting how important we believe our product can be. In an industry where speed is crucial, KAI is the fastest tool in a $42 billion ad fraud market. Thanks to the success of our initial beta tests in the first half of the year, we have received an increase in demand for KAI from a number of prospective customers. We also plan on rolling out KAI as a stand-alone application in the coming months, providing more optionality and expanding our potential customer base. In parallel, we are also looking to launch a self-serve DSP for a number of brands that have been requesting an alternative to the outdated mode of driving their campaigns through a third-party DSP or agency trading desk. With a number of major events on the horizon and a steadily recovering market, we look forward to driving continued growth and increasing share in the digital advertising industry.”

Third Quarter 2020 Financial Results

Net revenues increased to $280,000 compared to $92,000 in the prior quarter and from $56,000 in the equivalent quarter in 2019. The sequential and year-over-year increase in net revenue was due to increased engagement from two customers in the quarter.

Total operating expenses increased to $1.7 million compared to $1.2 million in the previous quarter and $1.0 million in the same period last year. The increase in total operating expenses was primarily due to higher technology expenses related to amortization expense of intangible assets and higher general and administrative expenses related to one-time compensation expenses related to the company’s IPO.

GAAP net loss attributable to common shareholders was $5.8 million, or $(1.03) loss per share, compared to a net loss of $1.5 million, or $(0.42) loss per share, in the prior quarter and net loss of $1.4 million, or $(0.38) loss per share, in the same year-ago period. The year-over-year increase in net loss was primarily due to higher non-cash other expenses of approximately $2.4 million as well as a non-cash deemed dividend of $1.7 million related to a warrant down round adjustment in the period.

As of September 30, 2020, the Company had cash of $8.4 million.

Nine Month 2020 Financial Results

Net revenues increased to $1.8 million from $162,000 in the same period last year. The increase was primarily due to revenue generated in connection with the beta testing of KAI, in addition to increased engagement from two customers in the quarter.

Total operating expenses increased to $4.1 million from $2.6 million in the same period last year. The increase in total operating expenses was primarily due to higher technology expenses related to amortization expense of intangible assets and higher general and administrative expenses related to one-time compensation expenses related to the company’s IPO.

GAAP net loss attributable to common shareholders was $7.4 million, or $(1.72) loss per share, compared to $3.0 million, or $(0.82) loss per share, in the same year-ago period. The higher net loss was due to higher non-cash other expenses of approximately $3.1 million, a non-cash deemed dividend of $1.7 million related to a warrant down round adjustment in the period and higher operating expenses, partially offset by higher net revenues.

Conference Call

Kubient will hold a conference call today (November 12, 2020) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these results.

Kubient management will host the conference call, followed by a question and answer period.

U.S. dial-in: 1-877-407-9208
International dial-in: 1-201-493-6784

Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the Investor Relations section of Kubient’s website.

A telephonic replay of the conference call will be available after 8:00 p.m. Eastern time through November 19, 2020.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13712644

About Kubient

Kubient is a technology company with a mission to transform the digital advertising industry to audience-based marketing. Kubient’s next generation cloud-based infrastructure enables efficient marketplace liquidity for buyers and sellers of digital advertising. The Kubient Audience Cloud is a flexible open marketplace for advertisers and publishers to reach, monetize and connect their audiences. The Company’s platform provides a transparent programmatic environment with proprietary artificial intelligence-powered pre-bid ad fraud prevention, and proprietary real-time bidding (RTB) marketplace automation for the digital out of home industry. The Audience Cloud is the solution for brands and publishers that demand transparency and the ability to reach audiences across all channels and ad formats. For additional information, please visit https://kubient.com/.

Forward-Looking Statements

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Kubient Investor Relation
Gateway Investor Relations
Matt Glover and Tom Colton
T: 1-949-574-3860
[email protected]

Kubient, Inc.
Condensed Consolidated Statements of Operations
(unaudited)

		For the Three Months Ended		For the Nine Months Ended
		September 30,		September 30,
		2020	2019	2020	2019

Net Revenues		$ 280,401	$ 55,872	$ 1,753,851	$ 161,828

Operating Expenses:
	Technology	545,639	315,824	1,577,197	1,070,561
	General and administrative	1,167,861	703,238	2,489,867	1,494,609

	Total Operating Expenses	1,713,500	1,019,062	4,067,064	2,565,170

	Loss From Operations	(1,433,099)	(963,190)	(2,313,213)	(2,403,342)

Other (Expense) Income:
	Interest expense	(389,319)	(362,179)	(1,118,614)	(522,278)
	Interest expense – related parties	(200,821)	(29,551)	(403,372)	(29,666)
	Amortization of beneficial conversion feature	(1,984,322)	–	(1,984,322)	–
	Gain on settlement of notes and other payables	139,333	–	139,333	–
	Gain on forgiveness of accounts payable – supplier	–	–	236,248	–
	Loss on extinguishment of convertible note payable	(297,272)	–	(297,272)	–
	Other income	1,000	12	13,294	256

	Total Other Expense	(2,731,401)	(391,718)	(3,414,705)	(551,688)

	Net Loss	(4,164,500)	(1,354,908)	(5,727,918)	(2,955,030)

	Deemed dividend related to warrant down round adjustment	(1,682,000)	–	(1,682,000)	–

	Net Loss Attributable to Common Shareholders	$ (5,846,500)	$ (1,354,908)	$ (7,409,918)	$ (2,955,030)

	Net Loss Per Share – Basic and Diluted	$ (1.03)	$ (0.38)	$ (1.72)	$ (0.82)

	Weighted Average Common Shares Outstanding –
	Basic and Diluted	5,676,561	3,599,300	4,300,905	3,599,909

Kubient, Inc.
Condensed Consolidated Balance Sheets

	September 30,	December 31,
	2020	2019
	(unaudited)
Assets

Current Assets:
Cash	$ 8,356,834	$ 33,785
Accounts receivable, net	797,422	38,704
Prepaid expenses and other current assets	117,085	28,072

Total Current Assets	9,271,341	100,561
Intangible assets, net	1,357,726	83,333
Property and equipment, net	8,088	4,549
Deferred offering costs	10,000	285,196

Total Assets	$ 10,647,155	$ 473,639

Liabilities and Stockholders’ Equity (Deficiency)

Current Liabilities:
Accounts payable – suppliers	$ 319,484	$ 785,180
Accounts payable – trade	1,531,084	867,554
Accrued expenses and other current liabilities	766,621	478,674
Accrued interest	3,001	117,912
Accrued interest – related parties	–	4,204
Due to related party	29,000	29,000
Notes payable, current portion	136,242	113,967
Convertible notes payable, current portion, net of discount of $0
and $630,994 as of September 30, 2020 and December 31, 2019, respectively	–	2,569,006
Convertible notes payable – related parties, current portion, net of discount of $0
and $281,701 as of September 30, 2020 and December 31, 2019, respectively	–	548,799

Total Current Liabilities	2,785,432	5,514,296
Notes payable, non-current portion	269,848	–

Total Liabilities	3,055,280	5,514,296

Commitments and contingencies

Stockholders’ Equity (Deficiency):
Preferred stock, $0.00001 par value; 5,000,000 shares authorized;
No shares issued and outstanding
as of September 30, 2020 and December 31, 2019	–	–
Common stock, $0.00001 par value; 95,000,000 shares authorized;
7,661,300 and 3,601,521 shares issued and outstanding
as of September 30, 2020 and December 31, 2019	77	36
Additional paid-in capital	21,723,133	3,362,724
Accumulated deficit	(14,131,335)	(8,403,417)

Total Stockholders’ Equity (Deficiency)	7,591,875	(5,040,657)

Total Liabilities and Stockholders’ Equity (Deficiency)	$ 10,647,155	$ 473,639

Kubient, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)

	For the Nine Months Ended
	September 30,
	2020	2019

Cash Flows From Operating Activities:
Net loss	$ (5,727,918)	$ (2,955,030)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	227,355	4,303
Bad debt expense	3,734	(10,670)
Gain on forgiveness of accounts payable – supplier	(236,248)	–
Allowance for other asset	–	200,000
Stock-based compensation:
Stock options	15,993	15,894
Common stock	62,484	30,800
Amortization of debt discount and debt issuance costs	915,994	444,928
Amortization of debt discount and debt issuance costs – related parties	357,201	27,541
Amortization of beneficial conversion feature	1,984,322	–
Loss on extinguishment of convertible note payable	297,272	–
Gain on settlement of notes and other payables	(139,333)	–
Changes in operating assets and liabilities:
Accounts receivable	(762,452)	288,830
Prepaid expenses and other current assets	(89,013)	(36,967)
Other asset	–	(200,000)
Accounts payable – suppliers	(193,334)	(180,514)
Accounts payable – trade	68,002	403,470
Accrued expenses and other current liabilities	492,372	13,304
Accrued interest	195,596	–
Accrued interest – related parties	53,026	–

Net Cash Used In Operating Activities	(2,474,947)	(1,954,111)

Cash Flows From Investing Activities:
Purchase of intangible assets	(855,019)	(70,000)
Purchase of property and equipment	(5,287)	(2,449)
Advances to related party	–	(75,000)
Repayment of related party advances	–	75,000

Net Cash Used In Investing Activities	(860,306)	(72,449)

Cash Flows From Financing Activities:
Proceeds from sale of common stock and warrants in initial
public offering, net [1]	11,503,488	–
Payment of initial public offering issuance costs	(841,376)	–
Proceeds from issuance of convertible notes payable and
investor warrants [2]	–	2,127,401
Advances from related party	–	29,250
Repayment of advance from related party	–	(45,000)
Proceeds from issuance of notes payable	656,190	–
Repayment of notes payable	(95,000)	(90,427)
Proceeds from issuance of notes payable – related parties	585,000	–
Repayment of note payable – related party	(150,000)	–

Net Cash Provided By Financing Activities	11,658,302	2,021,224

Net Increase (Decrease) In Cash	8,323,049	(5,336)

Cash – Beginning of the Period	33,785	7,518

Cash – End of the Period	$ 8,356,834	$ 2,182

[1] Includes gross proceeds of $12,503,750, less underwriting discounts and commissions of $1,000,262.
[2] Includes gross proceeds of $2,500,000, less issuance costs of $372,599 deducted directly from the offering proceeds.

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SOURCE Kubient

November 12, 2020 4:09 pm

Farfetch Announces Third Quarter 2020 Results

Farfetch Announces Third Quarter 2020 Results

Q3 2020 Gross Merchandise Value and Digital Platform GMV growth rates accelerate – up 62% and 60% year-over-year, respectively, to record highs of $798 million and $674 million, respectively
Q3 2020 Revenue increases 71% year-over-year to $438 million
Q3 2020 Gross Profit and Digital Platform Order Contribution up 82% and 98% year-over-year, respectively
Gross Profit Margin of 48% and Digital Platform Order Contribution Margin of 37%
Q3 2020 Loss After Tax of $537 million
Q3 2020 Adjusted EBITDA improved to $(10) million from $(36) million in Q3 2019
Announced global partnership with Alibaba and Richemont to accelerate the digitization of luxury industry; strategic partners to invest total $1.15 billion in Farfetch Limited and new Farfetch China joint venture

LONDON–(BUSINESS WIRE)–
Farfetch Limited (NYSE: FTCH), the leading global platform for the luxury fashion industry, today reported its financial results for the third quarter ended September 30, 2020.

José Neves, Farfetch Founder, Chairman and CEO said: “The Farfetch platform continued to accelerate in third quarter 2020, setting another quarterly GMV record and further indicating we are witnessing a paradigm shift in favor of online luxury. The Farfetch platform is not only capturing this opportunity but is helping drive this paradigm shift both for luxury consumers and brands.

“What we are seeing is the acceleration of the secular trend of online adoption in luxury – an industry that is still very underpenetrated. The capabilities developed across the Farfetch platform over the past 13 years in anticipation of the eventual digitization of the luxury industry uniquely position Farfetch to capture this opportunity today. And our recently announced partnership with Alibaba and Richemont further position us to seize the opportunity to bring the luxury industry into the next generation and drive sustained growth and market share for many years to come.”

Elliot Jordan, CFO of Farfetch, said: “I’m delighted by the results of our third quarter, reflecting strong momentum behind the Farfetch platform and an acceleration of growth on the marketplace. This strong growth in revenue, steady improvement in unit economics and further operating cost efficiencies means we are another step closer to achieving the key milestone of operational profitability in the near-term.

“The strong underlying financial profile of Farfetch and recent investments by our new strategic partners who form part of Luxury New Retail initiative means we are well placed to support the global luxury industry in navigating the continued growth in online over the coming years.”

Consolidated Financial Summary and Key Operating Metrics(in thousands, except per share data, Average Order Value, or otherwise stated):

	Three months ended September 30,
	2019			2020
Consolidated Group:
Gross Merchandise Value (“GMV”)	$	492,014		$	797,840
Revenue		255,481			437,700
Adjusted Revenue		228,227			386,778
Gross profit		115,139			209,029
Gross profit margin	45.1%			47.8%
Loss after tax	$	(90,484	)	$	(536,960	)
Adjusted EBITDA		(35,638	)		(10,314	)
Adjusted EBITDA Margin	(15.6)%			(2.7)%
Earnings per share (“EPS”)	$	(0.30	)	$	(1.58	)
Adjusted EPS		(0.20	)		(0.17	)
Digital Platform:
Digital Platform GMV	$	420,266		$	674,097
Digital Platform Services Revenue		156,479			263,035
Digital Platform Gross Profit		83,294			143,318
Digital Platform Gross Profit Margin	53.2%			54.5%
Digital Platform Order Contribution	$	48,973		$	97,133
Digital Platform Order Contribution Margin	31.3%			36.9%
Active Consumers		1,889			2,742
Average Order Value (“AOV”) – Marketplace	$	582		$	574
AOV – Stadium Goods		327			340
Brand Platform:
Brand Platform GMV	$	62,671		$	112,327
Brand Platform Revenue		62,671			112,327
Brand Platform Gross Profit		27,464			58,738
Brand Platform Gross Profit Margin	43.8%			52.3%

See “Notes and Disclosures” on page 19 for further explanations. See “Non-IFRS and Other Financial and Operating Metrics” on page 19 for reconciliations of non-IFRS measures to IFRS measures. As we acquired New Guards in August 2019, our results for third quarter 2019 include only two months of New Guards’ performance.

Recent Business Highlights

COVID-19

Maintained continuity of operations with health and wellbeing of Farfetch employees, partners and customers continuing to be our top priority
Collaborated with boutique and brand partners to drive continued growth of their digital sales via the Marketplace; Autumn-Winter 2020 supply reached previous year levels despite initial delays at the beginning of the quarter
Maintained and expanded our relationships with logistics partners, preserving continuity of fulfilment and delivery operations, with no material disruptions to lead times or customer service levels during third quarter 2020
Following the heightened restrictions recently announced by European governments, we have closed our retail stores in affected locations and will continue to comply as these measures evolve

Luxury New Retail

Announced a global partnership with Alibaba and Richemont to accelerate the digitization of the luxury industry
- Alibaba to launch Farfetch luxury shopping channels on Tmall Luxury Pavilion and Luxury Soho
- New China joint venture to be formed to operate Farfetch marketplace in China; to be 75% owned by Farfetch, with remaining 25% owned equally by Alibaba and Richemont
- Farfetch and Alibaba to leverage their platforms and augmented retail technologies to pursue Luxury New Retail initiative to accelerate the digitization of the global luxury industry
- Farfetch and Alibaba form Luxury New Retail steering group; to be joined by Richemont Chairman, Johann Rupert, and Artemis Chairman, François-Henri Pinault
- Alibaba, Richemont and Artemis to invest in Farfetch Limited and new Farfetch China joint venture a total of $1.15 billion

Digital Platform

Re-branded Farfetch.com in conjunction with global ‘Open Doors to a World of Fashion’ brand campaign in September 2020, designed to build brand awareness and to continue capturing market share of the online luxury fashion industry

Accelerated GMV growth to 60% in third quarter 2020 driven by acceleration across all three geographic regions – the Americas, EMEA and APAC, including each of our top 5 countries, which grew faster than during second quarter 2020
Third-party transactions generated 83% of Digital Platform GMV at a take rate of 30.4% in third quarter 2020
AOV recovered to a (1)% year-over-year change from an (18)% year-over-year decline reported last quarter driven by increases in sales of full-priced and higher-priced items, despite continued shift into lower-price categories
Digital Platform Order Contribution Margin increased to 37% year-over-year, driven by a significant decrease in funded promotions and efficiencies in demand generation spending
Continued high levels of customer engagement, with an increase in Active Consumers of 45% year-over-year; app installs increased over 70% year-over-year, increasingly becoming a preferred channel for consumers
- Continued to build membership in our loyalty program to 2.5 million enrolled ACCESS members, and enhanced features to increase awareness of program benefits

Expanded offering to Marketplace consumers with signings of new e-concession partners Moncler, Dolce & Gabbana, Ralph Lauren and watch maker RADO, our first e-concession from the Swatch Group, among other labels; also added new supply points from existing brand partners
Added new features to enhance customer experience
- Launched new iOS and Android app in China, providing a more localized experience
- Initiated rollout of improved delivery features in select markets
  - Expanded shipping capabilities to enable multi-leg logistics, which incorporate services from multiple providers and increase flexibility of our fulfilment operations
  - Piloted new customer communication solution in Germany and the Middle East with ParcelLab aimed at providing customers increased transparency in their shopping experience, from check-out to delivery, including returns
- New virtual sneaker try-on available on the Farfetch app, allowing customers to simulate the experience of trying-on their new favorite sneakers
Farfetch Platform Solutions re-platformed e-commerce sites for Palm Angels, Marcelo Burlon County of Milan and Ambush
Celebrated the 50^th anniversary of Browns with a combination of online and offline activities, including over 40 exclusive capsule collections in collaboration with household names such as Givenchy, Balmain, Fendi, Loewe and Off-White, among others
Opened second store for Stadium Goods in Chicago, also adding a new market center for consignment intake and operations

New Guards

For the sixth consecutive quarter, GMV from New Guards brands, in aggregate, exceeded GMV for any other single brand on the Farfetch Marketplace in third quarter 2020
Generated third quarter 2020 Brand Platform Revenue of $112 million, a year-over-year increase of 79%, reflecting the timing of New Guards’ acquisition in Q3 2019, as well as strong demand for New Guards’ brands
New Guards’ brand portfolio continued to create culturally relevant collections
- Off-White released second homeware collection, and new sneaker collaborations – Off-White x Nike rubber dunk in “Green Strike” and Off-White x Air Jordan 5 “Sail”
- Palm Angels continued to gain traction and became one of the top 10 brands on the Farfetch Marketplace, based on GMV

Third Quarter 2020 Results Summary

Gross Merchandise Value (in thousands):

	Three months ended September 30,
	2019		2020
Digital Platform GMV	$	420,266	$	674,097
Brand Platform GMV		62,671		112,327
In-Store GMV		9,077		11,416
GMV	$	492,014	$	797,840

Gross Merchandise Value (“GMV”) increased by $305.8 million from $492.0 million in third quarter 2019 to $797.8 million in third quarter 2020, representing year-over-year growth of 62.2%. Digital Platform GMV increased by $253.8 million from $420.3 million in third quarter 2019 to $674.1 million in third quarter 2020, representing year-over-year growth of 60.4%. Excluding the impact of changes in foreign exchange rates, Digital Platform GMV would have increased by approximately 61.0%.

The increase in GMV primarily reflects the growth in Digital Platform GMV and $49.7 million increase in Brand Platform GMV from New Guards as a result of our August 2019 acquisition and a strong demand for products within their brand portfolio. The increase in Digital Platform GMV was primarily driven by growth in Active Consumers to 2.7 million in third quarter 2020, increased available supply from over 1,300 partners, and growth of direct-to-consumer brand sales from New Guards. This was partially offset by a decrease in the Marketplace AOV within the Digital Platform from $582 to $574 due to a higher mix of sales of lower price categories, a trend that has continued since the outset of COVID-19 restrictions, and lower units per order. However, we have seen a positive trend during third quarter 2020 with consumers purchasing higher price-point items and a greater mix of items sold at full-price as we progressed through the quarter. During third quarter 2020, we also saw year-over-year growth in transactions through websites managed by Farfetch Platform Solutions, primarily driven from incremental activity from websites newly launched throughout 2020, including Harrods.com, Off—White.com, and Palmangels.com among others.

Revenue (in thousands):

	Three months ended September 30,
	2019		2020
Digital Platform Services third-party revenue	$	106,983	$	157,174
Digital Platform Services first-party revenue		49,496		105,861
Digital Platform Services Revenue		156,479		263,035
Digital Platform Fulfilment Revenue		27,254		50,922
Brand Platform Revenue		62,671		112,327
In-Store Revenue		9,077		11,416
Revenue	$	255,481	$	437,700

Revenue increased by $182.2 million year-over-year from $255.5 million in third quarter 2019 to $437.7 million in third quarter 2020, representing growth of 71.3%. The increase was driven by 68.1% growth in Digital Platform Services Revenue to $263.0 million, plus the impact of the acquisition of New Guards during third quarter 2019. In-Store Revenue increased by 25.8% to $11.4 million, primarily driven by the acquisition of New Guards retail stores in August 2019, as well as the opening of new stores throughout the year, partially offset by reduced foot traffic across our retail store network as a result of COVID-19 restrictions.

The increase in Digital Platform Services Revenue of 68.1% was driven by 60.4% overall growth in Digital Platform GMV. Digital Platform Services first-party GMV, which is composed of our sales of owned-inventory including First-Party Original, is included in Digital Platform Services Revenue at 100% of the GMV. Digital Platform Services first-party GMV increased 113.9% year-over-year to $105.9 million, primarily driven by the integration of New Guards to the Farfetch Marketplace during fourth quarter 2019, as well as growth in Browns, primarily driven by a higher sell-through of full-price products.

Digital Platform Fulfilment Revenue represents the pass-through of delivery and duties charges incurred by our global logistics solutions, net of any Farfetch-funded consumer promotions and incentives. Whilst Digital Platform Fulfilment Revenue would be expected to grow in line with the cost of delivery and duties, which increase as Digital Platform GMV and order volumes grow, variations in the level of Farfetch-funded promotions and incentives will impact Digital Platform Fulfilment Revenue. In third quarter 2020, Digital Platform Fulfilment Revenue increased 86.8% year-over-year, a higher rate as compared to Digital Platform Services Revenue growth, due to a reduced number of Farfetch-funded promotions year-over-year.

Cost of Revenue (in thousands):

	Three months ended September 30,
	2019		2020
Digital Platform Services third-party cost of revenue	$	36,314	$	52,691
Digital Platform Services first-party cost of revenue		36,871		67,026
Digital Platform Services cost of revenue		73,185		119,717
Digital Platform Fulfilment cost of revenue		27,254		50,922
Brand Platform cost of revenue		35,207		53,589
In-Store cost of goods sold		4,696		4,443
Cost of revenue	$	140,342	$	228,671

Cost of revenue increased by $88.4 million, or 63.0% year-over-year from $140.3 million in third quarter 2019 to $228.7 million in third quarter 2020. This was primarily driven by the increased volume of transactions driving up costs associated with delivery and duties, the addition of Brand Platform cost of revenue related to New Guards since its acquisition in August 2019, and the cost of goods associated with the growth in first-party GMV.

We are reliant on third-parties to provide shipping and delivery services, and potential changes in their operations due to the ongoing impacts of COVID-19 could result in future impacts to our service levels or cost of revenue, however there were no such material adverse impacts to our service levels or cost of revenue in third quarter 2020.

Gross profit (in thousands):

	Three months ended September 30,
	2019		2020
Digital Platform third-party gross profit	$	70,669	$	104,483
Digital Platform first-party gross profit		12,625		38,835
Digital Platform Gross Profit		83,294		143,318
Brand Platform Gross Profit		27,464		58,738
In-Store Gross Profit		4,381		6,973
Gross profit	$	115,139	$	209,029

Gross profit increased by $93.9 million, or 81.6% year-over-year, from $115.1 million in third quarter 2019 to $209.0 million in third quarter 2020, primarily due to growth in our Digital Platform Services Revenue and the addition of New Guards gross profit starting from August 2019. Gross profit margin increased from 45.1% to 47.8% year-over-year, primarily driven by a higher Digital Platform Gross Profit Margin as well as a higher Brand Platform Gross Profit Margin. Digital Platform Gross Profit Margin increased from 53.2% to 54.5% year-over-year driven by increases in both third-party and first-party gross profit margins, partially due to fewer Farfetch-funded consumer promotions during the period. The increase in first-party gross profit margin also reflects an increased mix of full-price sales, and higher margin first-party revenues from sales of New Guards brands’ owned-products sold direct-to-consumers through our platform.

Selling, general and administrative expenses by type (in thousands):

	Three months ended September 30,
	2019		2020
Demand generation expense	$	34,321	$	46,185
Technology expense		22,322		29,809
Share based payments		31,760		81,840
Depreciation and amortization		35,097		54,007
General and administrative		94,134		143,349
Other items		10,061		860
Selling, general and administrative expense	$	227,695	$	356,050

Third quarter 2020 demand generation expense increased 34.6% year-over-year to $46.2 million, driven by the increase in GMV. However, in third quarter 2020, demand generation expense as a percentage of Digital Platform GMV improved from 8.2% to 6.9% year-over-year, as we saw the benefit of our focus on mobile app installations help drive a lower paid digital marketing mix compared to third quarter 2019. In addition, we saw lower paid digital marketing costs as a percentage of Digital Platform GMV year-over-year, with a less competitive digital advertising environment due to COVID-19 leading to efficiencies in our paid channels, alongside other incremental demand generation efficiencies.

Technology expense, which primarily relates to development and operations of our platform features and services, and also includes software, hosting and infrastructure expenses, increased by $7.5 million, or 33.5%, year-over-year in third quarter 2020, mainly driven by an increase in technology staff headcount. We continue to operate three globally distributed data centers, which support the processing of our growing base of transactions, including one in Shanghai dedicated to serving our Chinese customers. Third quarter 2020 technology expense as a percentage of Adjusted Revenue decreased from 9.8% to 7.7% year-over-year as Adjusted Revenue growth outpaced growth of our underlying technology costs.

Share based payments increased by $50.1 million, or 157.7%, year-over-year in third quarter 2020. The increase was mainly due to an increase in our share price during third quarter 2020 as compared to a decrease in our share price during third quarter 2019. Employment related taxes and the cost of cash-settled awards increased by $33.8 million and $18.9 million, respectively, primarily as a result of the change in share price and quarterly revaluation. Grants of additional equity-settled awards also contributed to the year-over-year increase.

Depreciation and amortization expense increased by $18.9 million, or 53.8%, year-over-year from $35.1 million in third quarter 2019 to $54.0 million in third quarter 2020. Amortization expense increased primarily due to $31.4 million of amortization recognized on intangible assets acquired in recent acquisitions. Amortization expense also increased as a result of the historical investment into technology, where qualifying technology development costs are capitalized and amortized over a three-year period. Depreciation expense primarily increased as a result of new leases entered into across the group during the last 12 months and, to a lesser extent, due to depreciation on property, plant and equipment from recent acquisitions.

General and administrative expense increased by $49.2 million, or 52.3%, year-over-year in third quarter 2020, primarily due to additional performance-based employee compensation accrued in third quarter 2020, the addition of New Guards starting in August 2019, marketing spend related to our brand campaign launch in September 2020, and an increase in non-technology headcount across a number of areas to support the expansion of our business. General and administrative expense decreased as a percentage of Adjusted Revenue to 37.1% compared to 41.2% in third quarter 2019 primarily due to Adjusted Revenue growing more than the general and administrative expense as a percentage of Adjusted Revenue.

Other items of $0.9 million in third quarter 2020 primarily reflects transaction-related legal and advisory expenses.

Gains/(losses) on items held at fair value and remeasurements (in thousands):

	Three months ended September 30,
	2019			2020
Remeasurement gains/(losses) on put and call option liabilities	$	53,812		$	(77,800	)
Fair value losses on embedded derivative liabilities		–			(295,279	)
Change in fair value of acquisition related consideration		(21,526	)		–
Gains/(losses) on items held at fair value and remeasurements	$	32,286		$	(373,079	)

In third quarter 2020, we recorded a $77.8 million present value remeasurement loss related to Chalhoub Group’s put option over their non-controlling interest in Farfetch International Limited, compared to a $53.8 million present value remeasurement gain related to the put option in third quarter 2019. The $295.3 million fair value losses on embedded derivative liabilities comprised $138.2 million fair value revaluation loss related to $250 million 5.00% convertible senior notes due 2025, and $157.1 million fair value revaluation loss related to $400 million 3.75% convertible senior notes due 2027. There were no fair value losses on embedded derivatives in third quarter 2019 and no change in the fair value of acquisition related consideration in third quarter 2020.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA improved by $25.3 million, to $(10.3) million in third quarter 2020, for the reasons described above. Adjusted EBITDA Margin improved from (15.6)% to (2.7)% over the same prior year period, primarily reflecting higher gross profit, lower general and administrative expenses, lower demand generation expense and technology expenses as percentages of Adjusted Revenue.

Loss After Tax

Loss after tax increased by $446.5 million to $537.0 million in third quarter 2020. The increase was primarily driven by losses on items held at fair value and remeasurements, which increased $405.4 million year-over-year, as well as increases in share-based payments, general and administrative expenses, and depreciation and amortization expense, partially offset by an increase in gross profit, as explained above.

Liquidity

At September 30, 2020 cash and cash equivalents were $756.7 million, an increase of $434.3 million compared to $322.4 million at December 31, 2019. The increase in cash and cash equivalents is primarily due to the private placement of convertible senior notes in first half 2020, partially offset by a net cash outflow from operating activities, mainly due to the funding of our operations in the nine months to September 2020, as well as New Guards’ investments into its brand portfolio.

Events After the Reporting Period

As part of the November 5, 2020 agreement between Farfetch Limited (the “Company”), Alibaba Group (“Alibaba”) and Cie Financiere Richemont SA (“Richemont”), Alibaba and Richemont have each agreed to purchase $300 million of 0% convertible senior notes due 2030 (the “Notes”) issued by Farfetch Limited for total gross proceeds of $600 million. The additional capital will support Farfetch’s long-term strategy of delivering a global technology platform for the luxury fashion industry and facilitate the Company’s continued focus on executing its growth plans and driving towards operational profitability. Additionally, Artemis has agreed to purchase 1,889,338 of our Class A ordinary shares for total gross proceeds of approximately $50 million. The sale of the Notes to Alibaba and Richemont, and the issuance of shares to Artemis, is expected to settle on or about November 17, 2020, subject to customary closing conditions.

Alibaba and Richemont will also invest in Farfetch China, taking a combined 25% stake in the new joint venture that will include Farfetch’s marketplace operations in the China region for $500 million ($250 million each). The investments by Alibaba and Richemont in Farfetch China and the establishment of the joint venture are expected to be completed during the first half of calendar year 2021, subject to the satisfaction of closing conditions.

In conjunction with the above strategic developments, Farfetch has agreed to close its consumer-facing channels on JD.com, Inc.’s (“JD.com”) platform. The Level 1 access button, acquired in 2019 as part of the acquisition of Toplife, provides direct access to Farfetch’s direct consumer-facing channels on JD.com. As at September 30, 2020, the carrying value of the Level 1 access button was $6.0 million. As a result of our agreement to terminate this channel, management impaired the full value of the Level 1 access button from the execution date of the binding agreement, in line with the requirements of IAS 36 Impairment of Assets. An impairment loss on intangible assets of $5.8 million, which is outside of the normal scope of our ordinary activities, will be recognized in our fourth quarter 2020 results on the consolidated statement of operations.

Outlook

The following forward-looking statements reflect Farfetch’s expectations as of November 12, 2020.

For the Fourth Quarter 2020:

Digital Platform GMV of $880 million to $910 million, representing growth of 40% to 45% year-over-year
Brand Platform GMV of $85 million to $90 million
Positive Adjusted EBITDA

Uncertainties resulting from the spread COVID-19 and the evolving nature of the situation could have material impacts on our future performance and projections. Factors involving COVID-19 that could potentially impact our future performance include, among others:

disruptions to our operations, fulfilment network, shipments
reduced or delayed supply from potential factors, including reduced inventory from brands and retailers, as well as additional shutdowns
weakened consumer sentiment and discretionary income potentially arising from a prolonged shutdown and declining macro-economic conditions

Conference Call Information

Farfetch will host a conference call today, November 12, 2020 at 4:30 p.m. Eastern Time to discuss the Company’s results as well as expectations about Farfetch’s business. Listeners may access the live conference call via audio webcast at http://farfetchinvestors.com, where listeners can also access Farfetch’s earnings press release and slide presentation. Following the call, a replay of the webcast will be available at the same website for 30 days.

Unaudited interim condensed consolidated statements of operations
for the three months ended September 30
(in $ thousands, except share and per share data)

	2019			2020
Revenue		255,481			437,700

Cost of revenue		(140,342	)		(228,671	)
Gross profit		115,139			209,029

Selling, general and administrative expenses		(227,695	)		(356,050	)
Operating loss		(112,556	)		(147,021	)

Gains/(losses) on items held at fair value and remeasurements		32,286			(373,079	)
Share of results of associates		371			385
Finance income		1,672			1,033
Finance costs		(12,361	)		(15,396	)
Loss before tax		(90,588	)		(534,078	)

Income tax benefit/(expense)		104			(2,882	)
Loss after tax		(90,484	)		(536,960	)

(Loss)/profit after tax attributable to:
Equity holders of the parent		(95,277	)		(544,320	)
Non-controlling interests		4,793			7,360
		(90,484	)		(536,960	)

Loss per share attributable to equity holders of the parent
Basic and diluted		(0.30	)		(1.58	)

Weighted-average ordinary shares outstanding
Basic and diluted		322,226,776			344,185,603

Unaudited interim condensed consolidated statements of comprehensive loss
for the three months ended September 30
(in $ thousands)

	2019			2020
Loss after tax		(90,484	)		(536,960	)

Other comprehensive (loss)/income:
Items that may be subsequently reclassified to the consolidated statement of operations (net of tax):
Exchange differences (loss)/gain on translation of foreign operations		(3,286	)		6,668
(Loss)/gain on cash flow hedges		(3,082	)		4,839
Items that will not be subsequently reclassified to the consolidated statement of operations (net of tax):
Impairment loss on investments		(100	)		–
Remeasurement loss on severance plan		(31	)		–
Other comprehensive (loss)/income for the period, net of tax		(6,499	)		11,507
Total comprehensive loss for the period, net of tax		(96,983	)		(525,453	)

Total comprehensive (loss)/income attributable to:
Equity holders of the parent		(101,776	)		(532,813	)
Non-controlling interests		4,793			7,360
		(96,983	)		(525,453	)

Unaudited interim condensed consolidated statements of operations
for the nine months ended September 30
(in $ thousands, except share and per share data)

	2019			2020
Revenue		638,805			1,133,817

Cost of revenue		(355,095	)		(612,037	)
Gross profit		283,710			521,780

Selling, general and administrative expenses		(577,660	)		(914,378	)
Impairment losses on tangible assets		–			(2,292	)
Operating loss		(293,950	)		(394,890	)

Gains/(losses) on items held at fair value and remeasurements		32,286			(586,267	)
Share of results of associates		404			(140	)
Finance income		15,131			2,734
Finance costs		(16,163	)		(72,203	)
Loss before tax		(262,292	)		(1,050,766	)

Income tax expense		(1,270	)		(1,270	)
Loss after tax		(263,562	)		(1,052,036	)

(Loss)/profit after tax attributable to:
Equity holders of the parent		(268,390	)		(1,066,026	)
Non-controlling interests		4,828			13,990
		(263,562	)		(1,052,036	)

Loss per share attributable to owners of the company
Basic and diluted		(0.86	)		(3.12	)

Weighted-average ordinary shares outstanding
Basic and diluted		311,858,726			341,896,665

Unaudited interim condensed consolidated statements of comprehensive loss
for the nine months ended September 30
(in $ thousands)

	2019			2020
Loss after tax		(263,562	)		(1,052,036	)
Other comprehensive income/(loss):
Items that may be subsequently reclassified to the consolidated statement of operations (net of tax):
Exchange differences gain on translation of foreign operations		18,507			22,264
Loss on cash flow hedges		(8,162	)		(3,643	)
Items that will not be subsequently reclassified to the consolidated statement of operations (net of tax):
Impairment loss on investments		(100	)		–
Remeasurement loss on severance plan		(31	)		(3	)
Other comprehensive income for the period, net of tax		10,214			18,618
Total comprehensive loss for the period, net of tax		(253,348	)		(1,033,418	)

Total comprehensive (loss)/income attributable to:
Equity holders of the parent		(258,176	)		(1,047,408	)
Non-controlling interests		4,828			13,990
		(253,348	)		(1,033,418	)

Unaudited interim condensed consolidated statements of financial position
(in $ thousands)
	December 31, 2019			September 30, 2020
Non-current assets
Other receivables		12,388			14,041
Deferred tax assets		5,324			5,923
Intangible assets, net		1,362,967			1,334,397
Property, plant and equipment, net		67,999			79,338
Right-of-use assets		115,176			140,803
Investments		16,229			8,344
Investments in associates		2,466			2,253
Total non-current assets		1,582,549			1,585,099
Current assets
Inventories		128,107			128,071
Trade and other receivables		189,897			190,421
Current tax assets		1,873			42,577
Derivative financial assets		3,024			3,242
Cash and cash equivalents		322,429			756,713
Total current assets		645,330			1,121,024
Total assets		2,227,879			2,706,123

Liabilities and equity
Non-current liabilities
Provisions		23,704			55,252
Deferred tax liabilities		219,789			200,156
Lease liabilities		100,833			129,833
Employee benefit obligations		16,455			19,204
Derivative financial liabilities		–			659,576
Borrowings		–			469,430
Put and call option liabilities		61,268			182,249
Total non-current liabilities		422,049			1,715,700
Current liabilities
Trade and other payables		413,696			459,036
Provisions		–			12,597
Current tax liability		28,289			35,735
Lease liabilities		18,485			21,783
Derivative financial liabilities		5,601			10,825
Put and call option liabilities		1,118			1,125
Other financial liabilities		809			1,374
Total current liabilities		467,998			542,475
Total liabilities		890,047			2,258,175
Equity
Share capital		13,584			13,842
Share premium		878,007			890,116
Merger reserve		783,529			783,529
Foreign exchange reserve		(30,842	)		(8,578	)
Other reserves		349,463			415,850
Accumulated losses		(826,135	)		(1,810,512	)
Equity attributable to the parent		1,167,606			284,247
Non-controlling interests		170,226			163,701
Total equity		1,337,832			447,948
Total equity and liabilities		2,227,879			2,706,123

Unaudited interim condensed consolidated statements of cash flows
for the nine months ended September 30
(in $ thousands)
	2019			2020
Cash flows from operating activities
Operating loss		(293,950	)		(394,890	)
Adjustments to reconcile operating loss to net cash outflow from operating activities:
Depreciation		19,533			28,113
Amortization		43,993			128,975
Non-cash employee benefits expense		75,525			124,644
Net loss on sale of non-current assets		5			–
Impairment losses on tangible assets		–			2,292
Impairment of investments		5,000			169
Net exchange differences		(1,966	)		–
Change in working capital
Increase in receivables		(2,124	)		(2,168	)
(Increase)/decrease in inventories		(6,746	)		961
Increase in payables		5,824			41,449
Change in other assets and liabilities
Increase in non-current receivables		(2,558	)		(1,203	)
Increase in other liabilities		16,936			15,749
Increase in provisions		–			42,616
Decrease in derivative financial instruments		(5,011	)		(13,549	)
Income taxes paid		(1,947	)		(57,790	)
Net cash outflow from operating activities		(147,486	)		(84,632	)

Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired		(461,690	)		(12,016	)
Payments for property, plant and equipment		(38,013	)		(16,732	)
Payments for intangible assets		(58,497	)		(65,525	)
Payments for investments		(18,733	)		(2,872	)
Interest received		10,701			3,345
Dividends received from associate		–			58
Net cash outflow from investing activities		(566,232	)		(93,742	)

Cash flows from financing activities
Repayment of the principal elements of lease payments		(13,597	)		(12,695	)
Interest paid and fees paid on loans		(2,807	)		(20,662	)
Dividends paid to holders of non-controlling interests		–			(20,515	)
Proceeds from issue of shares, net of issue costs		8,249			27,687
Proceeds from borrowings, net of issue costs		–			641,861
Net cash (outflow)/inflow from financing activities		(8,155	)		615,676

Net (decrease)/increase in cash and cash equivalents		(721,873	)		437,302
Cash and cash equivalents at the beginning of the period		1,044,786			322,429
Effects of exchange rate changes on cash and cash equivalents		(4,538	)		(3,018	)
Cash and cash equivalents at end of period		318,375			756,713

Unaudited interim condensed consolidated statements of changes in equity

(in $ thousands)

Share

capital

Share

premium

Merger

reserve

Foreign

exchange reserve

Other

reserves

Accumulated

losses

Equity

attributable to

the parent

Non- controlling

interests

Total

equity

Balance at January 1, 2019

11,994

772,300

783,529

(23,509

)

67,474

(483,357

)

1,128,431

–

1,128,431

Changes in equity

(Loss)/income after tax for the period

–

(268,390

)

(268,390

)

4,828

(263,562

)

Other comprehensive income/(loss)

–

18,507

(8,293

)

–

10,214

–

10,214

Issue of share capital, net of transaction costs

1,576

104,144

–

389,879

–

495,599

–

495,599

Share based payment – equity settled

–

51,364

45,743

97,107

–

97,107

Share based payment – reverse vesting shares

–

(92,425

)

–

(92,425

)

–

(92,425

)

Transaction with non- controlling interests

–

(101,311

)

–

(101,311

)

–

(101,311

)

Non-controlling interest arising from a business combination

–

158,616

158,616

Non-controlling interest put option

–

(4,322

)

(4,322

)

–

(4,322

)

Balance at September 30, 2019

13,570

876,444

783,529

(5,002

)

306,688

(710,326

)

1,264,903

163,444

1,428,347

Balance at January 1, 2020

13,584

878,007

783,529

(30,842

)

349,463

(826,135

)

1,167,606

170,226

1,337,832

Changes in equity

(Loss)/income after tax for the period

–

(1,066,026

)

(1,066,026

)

13,990

(1,052,036

)

Other comprehensive income/(loss)

–

22,264

(3,646

)

–

18,618

–

18,618

Issue of share capital, net of transaction costs

258

12,109

–

4,808

–

17,175

–

17,175

Share based payment – equity settled

–

45,655

81,649

127,304

–

127,304

Share based payment – reverse vesting shares

–

19,570

–

19,570

–

19,570

Dividends paid to non-controlling interests

–

(20,515

)

(20,515

)

Balance at September 30, 2020

13,842

890,116

783,529

(8,578

)

415,850

(1,810,512

)

284,247

163,701

447,948

Supplemental Metrics ¹	2018			2019												2020
	Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter
	(in thousands, except per share data or otherwise stated)
Consolidated Group:
Gross Merchandise Value (“GMV”)	$	466,490		$	419,273		$	488,475		$	492,014		$	739,937		$	610,874		$	721,310		$	797,840
Revenue		195,533			174,064			209,260			255,481			382,232			331,437			364,680			437,700
Adjusted Revenue		170,089			146,374			180,738			228,227			337,738			301,152			307,877			386,778
In-Store Revenue		4,314			4,536			4,220			9,077			9,788			8,516			3,926			11,416
Gross profit		94,197			83,291			85,280			115,139			176,136			153,376			159,375			209,029
Gross profit margin	48.2%			47.9%			40.8%			45.1%			46.1%			46.3%			43.7%			47.8%
Demand generation expense	$	(33,934	)	$	(31,423	)	$	(34,444	)	$	(34,321	)	$	(51,162	)	$	(37,966	)	$	(47,378	)	$	(46,185	)
Technology expense		(18,159	)		(20,159	)		(19,073	)		(22,322	)		(22,653	)		(26,307	)		(29,284	)		(29,809	)
Share based payments		(2,821	)		(38,714	)		(45,710	)		(31,760	)		(42,238	)		(26,760	)		(61,915	)		(81,840	)
Depreciation and amortization		(7,185	)		(14,106	)		(14,323	)		(35,097	)		(50,065	)		(51,323	)		(51,758	)		(54,007	)
General and administrative		(56,679	)		(61,945	)		(69,339	)		(94,134	)		(120,247	)		(111,422	)		(107,888	)		(143,349	)
Other items		–			(2,493	)		1,764			(10,061	)		(5,584	)		(5,025	)		(1,302	)		(860	)
Impairment losses on tangible assets		–			–			–			–			–			(2,292	)		–			–
Gains / (losses) on items held at fair value and remeasurements		–			–			–			32,286			(10,565	)		65,434			(278,622	)		(373,079	)
Loss after tax		(9,912	)		(77,686	)		(95,392	)		(90,484	)		(110,126	)		(79,177	)		(435,899	)		(536,960	)
Adjusted EBITDA		(14,575	)		(30,236	)		(37,576	)		(35,638	)		(17,926	)		(22,319	)		(25,175	)		(10,314	)
Adjusted EBITDA Margin	(8.6)%			(20.7)%			(20.8)%			(15.6)%			(5.3)%			(7.4)%			(8.2)%			(2.7)%
Earnings per share (“EPS”)	$	(0.03	)	$	(0.26	)	$	(0.31	)	$	(0.30	)	$	(0.34	)	$	(0.24	)	$	(1.29	)	$	(1.58	)
Adjusted EPS		(0.02	)		(0.11	)		(0.16	)		(0.20	)		(0.08	)		(0.24	)		(0.20	)		(0.17	)
Digital Platform:
Digital Platform GMV	$	462,176		$	414,737		$	484,255		$	420,266		$	628,610		$	494,899		$	651,036		$	674,097
Digital Platform Services Revenue		165,775			141,838			176,518			156,479			226,411			185,177			237,603			263,035
Digital Platform Fulfilment Revenue		25,444			27,690			28,522			27,254			44,494			30,285			56,803			50,922
Digital Platform Gross Profit		92,632			80,941			84,106			83,294			123,572			97,207			130,579			143,318
Digital Platform Gross Profit Margin	55.9%			57.1%			47.6%			53.2%			54.6%			52.5%			55.0%			54.5%
Digital Platform Order Contribution	$	58,698		$	49,518		$	49,662		$	48,973		$	72,410		$	59,241		$	83,201		$	97,133
Digital Platform Order Contribution Margin	35.4%			34.9%			28.1%			31.3%			32.0%			32.0%			35.0%			36.9%
Active Consumers		1,382			1,699			1,773			1,889			2,068			2,149			2,524			2,742
AOV – Marketplace	$	637		$	601		$	600		$	582		$	636		$	571		$	493		$	574
AOV – Stadium Goods		–			300			336			327			301			314			304			340
Brand Platform:
Brand Platform GMV	$	–		$	–		$	–		$	62,671		$	101,539		$	107,459		$	66,348		$	112,327
Brand Platform Revenue		–			–			–			62,671			101,539			107,459			66,348			112,327
Brand Platform Gross Profit		–			–			–			27,464			47,543			52,480			27,729			58,738
Brand Platform Gross Profit Margin		–			–			–		43.8%			46.8%			48.8%			41.8%			52.3%

See “Notes and Disclosures” which includes “Non-IFRS and Other Financial and Operating Metrics” on page 19 for reconciliations of non-IFRS measures to IFRS measures.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, the expected timing of the sale of the Notes to Alibaba and Richemont, the issuance of shares to Artemis, the establishment of and investment in the Farfetch China joint venture and our expected performance for fourth quarter 2020, statements regarding our profitability for 2021, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: purchasers of luxury products may not choose to shop online in sufficient numbers; our ability to generate sufficient revenue to be profitable or to generate positive cash flow on a sustained basis; the volatility and difficulty in predicting the luxury fashion industry, in particular in light of COVID-19 and its impact on consumer spending patterns; our reliance on a limited number of retailers and brands for the supply of products on our Marketplace; our reliance on retailers and brands to anticipate, identify and respond quickly to new and changing fashion trends, consumer preferences and other factors; our reliance on retailers and brands to make products available to our consumers on our Marketplace and to set their own prices for such products; fluctuation in foreign exchange rates; our reliance on information technologies and our ability to adapt to technological developments; our ability to acquire or retain consumers and to promote and sustain the Farfetch brand; our ability or the ability of third parties to protect our sites, networks and systems against security breaches, or otherwise to protect our confidential information; our ability to successfully launch and monetize new and innovative technology; our acquisition and integration of other companies or technologies, for example, Stadium Goods and New Guards, could divert management’s attention and otherwise disrupt our operations and harm our operating results; we may be unsuccessful in integrating any acquired businesses or realizing any anticipated benefits of such acquisitions; our dependence on highly skilled personnel, including our senior management, data scientists and technology professionals, and our ability to hire, retain and motivate qualified personnel; the effect of the COVID-19 pandemic on our business and results of operations, as well as on the luxury fashion industry and consumer spending more broadly, and our ability to successfully implement our business plan during a global economic downturn caused by the COVID-19 pandemic; José Neves, our chief executive officer, has considerable influence over important corporate matters due to his ownership of us, and our dual-class voting structure will limit your ability to influence corporate matters, including a change of control; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) for the fiscal year ended December 31, 2019 and in Exhibit 99.2 to our Current Report on Form 6-K filed with the SEC on April 27, 2020, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and on our website at http://farfetchinvestors.com. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

NOTES AND DISCLOSURES

Segment Realignment

Following the acquisition of New Guards in August 2019, management determined that it had three operating segments: (i) Digital Platform, (ii) Brand Platform and (iii) In-Store, given our new organizational structure and the manner in which our business is reviewed and managed. In fourth quarter 2019, we realigned our reportable operating segments to reflect how our Chief Operating Decision-Maker was making operating decisions, allocating resources and evaluating operating performance. The comparative periods have been revised to reflect this segment realignment.

Our results for first, second, and part of third quarter 2019 do not include New Guards’ performance.

Revisions to Previously Reported Financial Information

We have revised previously reported finance income and costs, loss after tax, and loss per share for each of the first three quarters of 2019. Refer to fourth quarter 2019 earnings release furnished on February 27, 2020 for further information.

Presentation Change

Beginning in second quarter 2020, we changed the presentation of our operating loss to reflect losses on items held at fair value and remeasurements, and share of results of associates, as non-operating items in the consolidated statement of operations. These items are now presented below operating loss, and all prior periods in this release reflect this change. We have made this presentation change in order to improve comparability of our period-over-period operating loss, particularly given the increased volatility of the items with a valuation dependent on our market share prices. As a result of this presentation change, the consolidated statement of cash flows now starts with operating loss rather than loss before tax as previously reported. This change had no impact on our historical loss after tax or on any of our historical unaudited condensed consolidated statements of financial position, changes in equity, cash flows or on our previously provided non-IFRS and operational measures. We determined that these presentation changes had no material impact on the previously reported financial information or on any previously issued annual financial statements.

Non-IFRS and Other Financial and Operating Metrics

This release includes certain financial measures not based on IFRS, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Adjusted Revenue, Digital Platform Order Contribution, and Digital Platform Order Contribution Margin (together, the “Non-IFRS Measures”), as well as operating metrics, including GMV, Digital Platform GMV, Brand Platform GMV, In-Store GMV, Active Consumers and Average Order Value. See the “Definitions” section below for a further explanation of these terms.

Management uses the Non-IFRS Measures:

as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations;
for planning purposes, including the preparation of our internal annual operating budget and financial projections;
to evaluate the performance and effectiveness of our strategic initiatives; and
to evaluate our capacity to fund capital expenditures and expand our business.

The Non-IFRS Measures may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner. We present the Non-IFRS Measures because we consider them to be important supplemental measures of our performance, and we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Management believes that investors’ understanding of our performance is enhanced by including the Non-IFRS Measures as a reasonable basis for comparing our ongoing results of operations. Many investors are interested in understanding the performance of our business by comparing our results from ongoing operations period over period and would ordinarily add back non-cash expenses such as depreciation, amortization and items that are not part of normal day-to-day operations of our business. By providing the Non-IFRS Measures, together with reconciliations to IFRS, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.

Items excluded from the Non-IFRS Measures are significant components in understanding and assessing financial performance. The Non-IFRS Measures have limitations as analytical tools and should not be considered in isolation, or as an alternative to, or a substitute for loss after tax, revenue or other financial statement data presented in our consolidated financial statements as indicators of financial performance. Some of the limitations are:

such measures do not reflect revenue related to fulfilment, which is necessary to the operation of our business;
such measures do not reflect our expenditures, or future requirements for capital expenditures or contractual commitments;
such measures do not reflect changes in our working capital needs;
such measures do not reflect our share based payments, income tax expense or the amounts necessary to pay our taxes;
although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any costs for such replacements; and
other companies may calculate such measures differently than we do, limiting their usefulness as comparative measures.

Due to these limitations, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Revenue should not be considered as measures of discretionary cash available to us to invest in the growth of our business and are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. In addition, the Non-IFRS Measures we use may differ from the non-IFRS financial measures used by other companies and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. Furthermore, not all companies or analysts may calculate similarly titled measures in the same manner. We compensate for these limitations by relying primarily on our IFRS results and using the Non-IFRS Measures only as supplemental measures.

Digital Platform Order Contribution and Digital Platform Order Contribution Margin are not measurements of our financial performance under IFRS and do not purport to be alternatives to gross profit or loss after tax derived in accordance with IFRS. We believe that Digital Platform Order Contribution and Digital Platform Order Contribution Margin are useful measures in evaluating our operating performance within our industry because they permit the evaluation of our digital platform productivity, efficiency and performance. We also believe that Digital Platform Order Contribution and Digital Platform Order Contribution Margin are useful measures in evaluating our operating performance because they take into account demand generation expense and are used by management to analyze the operating performance of our digital platform for the periods presented.

Farfetch reports under International Financial Reporting Standards (“IFRS”). Farfetch provides earnings guidance on a non-IFRS basis and does not provide earnings guidance on an IFRS basis. A reconciliation of the Company’s Adjusted EBITDA guidance to the most directly comparable IFRS financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that are made for future changes in the fair value of cash-settled share based payment liabilities; foreign exchange gains/(losses) and the other adjustments reflected in our reconciliation of historical non-IFRS financial measures, the amounts of which, could be material.

Reconciliations of these non-IFRS measures to the most directly comparable IFRS measure are included in the accompanying tables.

The following table reconciles Adjusted EBITDA to the most directly comparable IFRS financial performance measure, which is loss after tax:

(in $ thousands, except as otherwise noted)

	2018				2019												2020
		Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter

Loss after tax		$	(9,912	)	$	(77,686	)	$	(95,392	)	$	(90,484	)	$	(110,126	)	$	(79,177	)	$	(435,899	)	$	(536,960	)
Net finance (income)/expense			(14,915	)		(8,408	)		(1,249	)		10,689			(16,182	)		34,355			20,751			14,363
Income tax expense/(benefit)			261			560			813			(104	)		(108	)		2,506			(4,118	)		2,882
Depreciation and amortization			7,185			14,106			14,323			35,097			50,065			51,323			51,758			54,007
Share based payments (a)			2,821			38,714			45,710			31,760			42,238			26,760			61,915			81,840
(Gains)/losses on items held at fair value and remeasurements (b)			–			–			–			(32,286	)		10,565			(65,434	)		278,622			373,079
Other items (c)			–			2,493			(1,764	)		10,061			5,584			5,025			1,302			860
Impairment losses on tangible assets			–			–			–			–			–			2,292			–			–
Share of results of associates			(15	)		(15	)		(17	)		(371	)		38			31			494			(385	)
Adjusted EBITDA		$	(14,575	)	$	(30,236	)	$	(37,576	)	$	(35,638	)	$	(17,926	)	$	(22,319	)	$	(25,175	)	$	(10,314	)

Represents share based payment expense.
Represents (gains)/losses on items held at fair value and remeasurements. See “gains/(losses) on items held at fair value and remeasurements” on page 24 for a breakdown of these items.
Represents other items, which are outside the normal scope of our ordinary activities. See “Other items” on page 24 for a breakdown of these expenses. Other items is included within selling, general and administrative expenses.

The following table reconciles Adjusted Revenue to the most directly comparable IFRS financial performance measure, which is revenue:

(in $ thousands, except as otherwise noted)

	2018				2019												2020
		Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter

Revenue		$	195,533		$	174,064		$	209,260		$	255,481		$	382,232		$	331,437		$	364,680		$	437,700
Less: Digital Platform Fulfilment Revenue			(25,444	)		(27,690	)		(28,522	)		(27,254	)		(44,494	)		(30,285	)		(56,803	)		(50,922	)
Adjusted Revenue		$	170,089		$	146,374		$	180,738		$	228,227		$	337,738		$	301,152		$	307,877		$	386,778

The following table reconciles Digital Platform Order Contribution to the most directly comparable IFRS financial performance measure, which is Digital Platform Gross Profit:

(in $ thousands, except as otherwise noted)

	2018				2019												2020
		Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter

Digital Platform Gross Profit		$	92,632		$	80,941		$	84,106		$	83,294		$	123,572		$	97,207		$	130,579		$	143,318
Less: Demand generation expense			(33,934	)		(31,423	)		(34,444	)		(34,321	)		(51,162	)		(37,966	)		(47,378	)		(46,185	)
Digital Platform Order Contribution		$	58,698		$	49,518		$	49,662		$	48,973		$	72,410		$	59,241		$	83,201		$	97,133

The following table reconciles Adjusted EPS to the most directly comparable IFRS financial performance measure, which is Earnings per share:

(per share amounts)

	2018				2019												2020
		Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter

Earnings per share		$	(0.03	)	$	(0.26	)	$	(0.31	)	$	(0.30	)	$	(0.34	)	$	(0.24	)	$	(1.29	)	$	(1.58	)
Share based payments (a)			0.01			0.13			0.15			0.11			0.12			0.08			0.18			0.24
Amortization of acquired intangible assets			0.00			0.01			0.01			0.06			0.09			0.09			0.09			0.09
(Gains)/losses on items held at fair value and remeasurements (b)			–			–			–			(0.10	)		0.03			(0.19	)		0.82			1.08
Other items (c)			–			0.01			(0.01	)		0.03			0.02			0.01			0.00			0.00
Impairment losses on tangible assets			–			–			–			–			–			0.01			–			–
Share of results of associates			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Adjusted EPS		$	(0.02	)	$	(0.11	)	$	(0.16	)	$	(0.20	)	$	(0.08	)	$	(0.24	)	$	(0.20	)	$	(0.17	)

Represents share based payment expense on a per share basis.
Represents (gains)/losses on items held at fair value and remeasurements on a per share basis. See “gains/(losses) on items held at fair value and remeasurements” on page 24 for a breakdown of these items.
Represents other items on a per share basis, which are outside the normal scope of our ordinary activities. See “Other items” on page 24 for a breakdown of these expenses. Other items included within selling, general and administrative expenses.

The following table represents gains/(losses) on items held at fair value and remeasurements:

(in $ thousands, except as otherwise noted)

	2018			2019										2020
		Fourth Quarter		First Quarter		Second Quarter		Third Quarter			Fourth Quarter			First Quarter		Second Quarter			Third Quarter
Fair value remeasurements:
Shares issued as part of New Guards acquisition		$	–	$	–	$	–	$	(21,526	)	$	–		$	–	$	–		$	–
$250 million 5.00% Notes due 2025 embedded derivative			–		–		–		–			–			44,014		(135,093	)		(138,171	)
$400 million 3.75% Notes due 2027 embedded derivative			–		–		–		–			–			–		(77,758	)		(157,108	)

Present value remeasurements:
Chalhoub put option			–		–		–		53,812			(8,959	)		21,420		(65,771	)		(77,800	)
CuriosityChina call option			–		–		–		–			(1,606	)		–		–			–
Gains / (losses) on items held at fair value and remeasurements		$	–	$	–	$	–	$	32,286		$	(10,565	)	$	65,434	$	(278,622	)	$	(373,079	)

Farfetch share price (end of day)		$	17.71	$	26.91	$	20.80	$	8.64		$	10.35		$	7.90	$	17.27		$	25.16

The following table represents other items:

(in $ thousands, except as otherwise noted)

	2018			2019												2020
		Fourth Quarter		First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter

Transaction-related legal and advisory expenses		$	–	$	(2,493	)	$	(2,236	)	$	(5,061	)	$	(5,584	)	$	(4,925	)	$	(1,799	)	$	(860	)
Release of tax provisions			–		–			4,000			–			–			–			–			–
Loss on impairment of investments carried at fair value			–		–			–			(5,000	)		–			(100	)		(69	)		–
Other			–		–			–			–			–			–			566			–
Other items		$	–	$	(2,493	)	$	1,764		$	(10,061	)	$	(5,584	)	$	(5,025	)	$	(1,302	)	$	(860	)

Definitions

We define our non-IFRS and other financial and operating metrics as follows:

“Active Consumers” means active consumers on our directly owned and operated sites and related apps. A consumer is deemed to be active if they made a purchase within the last 12-month period, irrespective of cancellations or returns. Active Consumers includes Farfetch Marketplace, BrownsFashion.com, Stadium Goods, and New Guards-owned sites operated by Farfetch Platform Solutions. Due to technical limitations, Active Consumers is unable to fully de-dupe Stadium Goods consumers from consumers on our other sites. The number of Active Consumers is an indicator of our ability to attract and retain our consumer base to our platform and of our ability to convert platform visits into sale orders.

“Adjusted EBITDA” means loss after taxes before net finance expense/(income), income tax expense/(benefit) and depreciation and amortization, further adjusted for share based compensation expense, share of results of associates and items outside the normal scope of our ordinary activities (including other items, within selling, general and administrative expenses, losses/(gains) on items held at fair value and remeasurements through profit and loss, and impairment losses on tangible assets). Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA may not be comparable to other similarly titled metrics of other companies.

“Adjusted EBITDA Margin” means Adjusted EBITDA calculated as a percentage of Adjusted Revenue.

“Adjusted EPS” means earnings per share further adjusted for share based payments, amortization of acquired intangible assets, items outside the normal scope of our ordinary activities (including other items, within selling, general and administrative expenses, losses/(gains) on items held at fair value and remeasurements through profit and loss, and impairment losses on tangible assets) and the related tax effects of these adjustments. Adjusted EPS provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EPS may not be comparable to other similarly titled metrics of other companies.

“Adjusted Revenue” means revenue less Digital Platform Fulfilment Revenue.

“Average Order Value” (“AOV”) means the average value of all orders excluding value added taxes placed on either the Farfetch Marketplace or the Stadium Goods Marketplace, as indicated.

“Brand Platform Gross Profit” means Brand Platform Revenue less the direct cost of goods sold relating to Brand Platform Revenue.

“Brand Platform GMV” and “Brand Platform Revenue” mean revenue relating to the New Guards operations less revenue from New Guards’: (i) owned e-commerce websites, (ii) direct to consumer channel via our Marketplaces and (iii) directly operated stores. Revenue realized from Brand Platform is equal to GMV as such sales are not commission based.

“Digital Platform Fulfilment Revenue” means revenue from shipping and customs clearing services that we provide to our digital consumers, net of Farfetch-funded consumer promotional incentives, such as free shipping and promotional codes. Digital Platform Fulfilment Revenue was referred to as Platform Fulfilment Revenue in previous filings with the SEC.

“Digital Platform GMV” means GMV excluding In-Store GMV and Brand Platform GMV. Digital Platform GMV was referred to as Platform GMV in previous filings with the SEC.

“Digital Platform Gross Profit” means gross profit excluding In-Store Gross Profit and Brand Platform Gross Profit. Digital Platform Gross Profit was referred to as Platform Gross Profit in previous filings with the SEC.

“Digital Platform Gross Profit Margin” means Digital Platform Gross Profit calculated as a percentage of Digital Platform Services Revenue. We provide fulfilment services to Marketplace consumers and receive revenue from the provision of these services, which is primarily a pass-through cost with no economic benefit to us. Therefore, we calculate our Digital Platform Gross Profit Margin, including Digital Platform third-party and first-party gross profit margin, excluding Digital Platform Fulfilment Revenue.

“Digital Platform Order Contribution” means Digital Platform Gross Profit after deducting demand generation expense, which includes fees that we pay for our various marketing channels. Digital Platform Order Contribution provides an indicator of our ability to extract digital consumer value from our demand generation expense, including the costs of retaining existing consumers and our ability to acquire new consumers. Digital Platform Order Contribution was referred to as Platform Order Contribution in previous filings with the SEC.

“Digital Platform Order Contribution Margin” means Digital Platform Order Contribution calculated as a percentage of Digital Platform Services Revenue. Digital Platform Order Contribution Margin was referred to as Platform Order Contribution Margin in previous filings with the SEC.

“Digital Platform Revenue” means the sum of Digital Platform Services Revenue and Digital Platform Fulfilment Revenue. Digital Platform Revenue was referred to as Platform Revenue in previous filings with the SEC.

“Digital Platform Services Revenue” means Revenue less Digital Platform Fulfilment Revenue, In-Store Revenue and Brand Platform Revenue. Digital Platform Services Revenue is driven by our Digital Platform GMV, including commissions from third-party sales and revenue from first-party sales.

“Digital Platform Services third-party revenues” represent commissions and other income generated from the provision of services to sellers in their transactions with consumers conducted on our dematerialized platforms, as well as fees for services provided to brands and retailers.

“Digital Platform Services first-party revenues” represents sales of owned-product, including First-Party Original through our digital platform. The revenue realized from first-party sales is equal to the GMV of such sales because we act as principal in these transactions and, therefore, related sales are not commission based.

“Digital Platform Services third-party cost of revenues” and “Digital Platform Services first-party cost of revenues” include packaging costs, credit card fees, and incremental shipping costs provided in relation to the provision of these services. Digital Platform Services first-party cost of revenues also includes the cost of goods sold of the owned products.

“First-Party Original” refers to brands developed by New Guards and sold direct to consumers on the digital platform.

“Gross Merchandise Value” (“GMV”) means the total dollar value of orders processed. GMV is inclusive of product value, shipping and duty. It is net of returns, value added taxes and cancellations. GMV does not represent revenue earned by us, although GMV and revenue are correlated.

“In-Store Gross Profit” means In-Store Revenue less the direct cost of goods sold relating to In-Store Revenue.

“In-Store GMV” and “In-Store Revenue” mean revenue generated in our retail stores which include Browns, Stadium Goods and New Guards’ directly operated stores. Revenue realized from In-Store sales is equal to GMV of such sales because such sales are not commission based.

“Third-Party Take Rate” means Digital Platform Services Revenue excluding revenue from first-party sales, as a percentage of Digital Platform GMV excluding GMV from first-party sales and Digital Platform Fulfilment Revenue. Revenue from first-party sales, which is equal to GMV from first-party sales, means revenue derived from sales on our platform of inventory purchased by us.

Certain figures in the release may not recalculate exactly due to rounding. This is because percentages and/or figures contained herein are calculated based on actual numbers and not the rounded numbers presented.

About Farfetch

Farfetch Limited is the leading global platform for the luxury fashion industry. Founded in 2007 by José Neves for the love of fashion, and launched in 2008, Farfetch began as an e-commerce marketplace for luxury boutiques around the world. Today the Farfetch Marketplace connects customers in over 190 countries with items from more than 50 countries and over 1,300 of the world’s best brands, boutiques and department stores, delivering a truly unique shopping experience and access to the most extensive selection of luxury on a single platform. Farfetch’s additional businesses include Farfetch Platform Solutions, which services enterprise clients with e-commerce and technology capabilities; Browns and Stadium Goods, which offer luxury products to consumers; and New Guards, a platform for the development of global fashion brands. Farfetch also invests in innovations such as its Store of the Future augmented retail solution, and develops key technologies, business solutions, and services for the luxury fashion industry.

For more information, please visit www.farfetchinvestors.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112006062/en/

Investor Relations:

Alice Ryder

VP Investor Relations

[email protected]

Media:

Susannah Clark

VP Communications, Global

[email protected]

+44 7788 405224

Brunswick Group

[email protected]

US: +1 (212) 333 3810

UK: +44 (0) 207 404 5959

KEYWORDS: United Kingdom Europe

INDUSTRY KEYWORDS: Fashion Professional Services Online Retail Retail Luxury Finance

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November 12, 2020 4:09 pm

IMPORTANT NOV. 20 DEADLINE Pawar Law Group Announces a Securities Class Action Lawsuit Against GoHealth, Inc. – GOCO

NEW YORK, Nov. 12, 2020 (GLOBE NEWSWIRE) — Pawar Law Group announces that a class action lawsuit has been filed on behalf of shareholders who purchased shares of GoHealth, Inc. (NASDAQ: GOCO) pursuant and/or traceable to the registration statement issued in connection with the Company’s July 2020 initial public offering (the “IPO”). The lawsuit seeks to recover damages for GoHealth, Inc. investors under the federal securities laws.

To join the class action, go here or call Vik Pawar, Esq. toll-free at 888-589-9804 or email [email protected] for information on the class action.

According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the Medicare insurance industry was undergoing a period of elevated churn, which had begun in the first half of 2020; (2) GoHealth suffered from a higher risk of customer churn as a result of its unique business model and limited carrier base; (3) GoHealth suffered from degradations in customer persistency and retention as a result of elevated industry churn, vulnerabilities that arose from the Company’s concentrated carrier business model, and GoHealth’s efforts to expand into new geographies, develop new carrier partnerships and worsening product mix; (4) GoHealth had entered into materially less favorable revenue sharing arrangements with its external sales agents; and (5) these adverse financial and operational trends were internally projected by GoHealth to continue and worsen following the IPO. When the true details entered the market, the lawsuit claims that investors suffered damages.

If you wish to serve as lead plaintiff, you must move the Court no later than November 20, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

No class has been certified. Until a class is certified, you are not represented by counsel unless you hire one. You may hire counsel of your choice. You may also do nothing at this time and be an absent member of the class. Your ability to share in any future recovery is not dependent upon being a lead plaintiff.

Pawar Law Group represents investors from around the world. Attorney advertising. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
——————————-

Contact:
Vik Pawar, Esq.
Pawar Law Group
20 Vesey Street, Suite 1410
New York, NY 10007
Tel: (917) 261-2277
Fax: (212) 571-0938
[email protected]

November 12, 2020 4:09 pm

DocuSign Announces Timing of Third Quarter Fiscal 2021 Earnings Conference Call

PR Newswire

SAN FRANCISCO, Nov. 12, 2020 /PRNewswire/ — DocuSign (Nasdaq: DOCU) today announced that its third quarter fiscal 2021 results will be released on Thursday, December 3, 2020, after the close of the market. The company will host a conference call at 1:30 p.m. PT (4:30 p.m. ET) to discuss its financial results. A live webcast of the event will be available on the DocuSign Investor Relations website at docusign.com/investors. A live dial-in will be available domestically at 877-407-0784 or internationally at 201-689-8560. A replay will be available domestically at 844-512-2921 or internationally at 412-317-6671 until midnight (ET) December 17, 2020 using the passcode 13713254.

About DocuSign
DocuSign helps organizations connect and automate how they prepare, sign, act on, and manage agreements. As part of the DocuSign Agreement Cloud, DocuSign offers eSignature: the world’s #1 way to sign electronically on practically any device, from almost anywhere, at any time. Today, nearly 750,000 customers and hundreds of millions of users in over 180 countries use DocuSign to accelerate the process of doing business and to simplify life.

For more information, visit www.docusign.com, call +1-877-720-2040, or follow @DocuSign on Twitter, LinkedIn, Facebook and Instagram.

Investor Relations:

Annie Leschin

VP Investor Relations
[email protected]

Media Relations:

Adrian Wainwright

Head of Communications
[email protected]

View original content to download multimedia:http://www.prnewswire.com/news-releases/docusign-announces-timing-of-third-quarter-fiscal-2021-earnings-conference-call-301172348.html

SOURCE DocuSign, Inc.

November 12, 2020 4:09 pm

Biocept Reports Third Quarter 2020 Financial Results

Revenues of $6.6 million – a result of decision to offer COVID-19 testing

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

PR Newswire

SAN DIEGO, Nov. 12, 2020 /PRNewswire/ — Biocept, Inc. (Nasdaq: BIOC), a leading commercial provider of molecular diagnostic assays, products and services designed to provide physicians with clinically actionable information to improve patient outcomes, reports financial results for the three and nine months ended September 30, 2020 and provides an update on its business progress.

“Third quarter revenues increased more than four-fold compared with the third quarter of 2019 to $6.6 million due to our decision to perform and offer COVID-19 RT-PCR testing. I am very proud of our hard-working team who have rallied to support public health efforts with our COVID-19 testing, while continuing to provide excellent service for our core oncology clients and the patients under their care,” said Michael Nall, President and CEO of Biocept.

“Offering COVID-19 testing services was the right thing to do, and we fully expect this testing to be an important part of our business until the pandemic subsides,” he added. “That said, oncology remains our long-term focus and we continue executing on priorities to build our business for a strong post-pandemic future.

“During the quarter we experienced an anticipated recovery in our oncology testing volume over the second quarter, driven by our new strategy in neuro-oncology. Our Target Selector™ CSF assays are proving to be more sensitive than conventional cytology alone in detecting lung and breast cancer that has metastasized to the brain or central nervous system,” said Mr. Nall. “These CSF assays have value as a diagnostic tool in helping to determine whether a patient’s cancer has metastasized to the cerebrospinal fluid and in profiling biomarkers to help physicians with treatment selection. We are implementing new clinical programs focused on neuro-oncology testing, which we view as a significant growth opportunity.”

Third Quarter 2020 and Recent Highlights

Corporate Developments

Named Michael C. Dugan, M.D. as Chief Medical Officer and Medical Director with responsibilities for overseeing medical policy decision-making and the operations of Biocept’s CLIA-certified, CAP-accredited, high-complexity molecular laboratory. Dr. Dugan is highly respected in the molecular diagnostics industry and has served in leading medical positions at Exact Sciences, Quest Diagnostics Nichols Institute and Roche Molecular Systems.
Appointed Samuel D. Riccitelli to Board of Directors. Mr. Riccitelli has more than 35 years of experience in the healthcare industry, including extensive experience in the molecular diagnostics industry, having served in executive-level positions and on the Boards of multiple publicly traded companies.

Commercial Developments and Agreements

Received more than 100,000 samples for RT-PCR COVID-19 testing in its high-complexity, CLIA-certified, CAP-accredited and BSL-2 safety level laboratory. The vast majority of results to date have been reported to healthcare providers within 48 hours of sample receipt.
Announced a positive coverage decision by Highmark, America’s fourth largest Blue Cross Blue Shield affiliate, for Biocept’s Target Selector™ liquid biopsy assays for use in the diagnosis and treatment of patients with non-small cell lung cancer (NSCLC). The coverage determination follows two years of evaluation by the Allegheny Health Network Cancer Institute of Biocept’s liquid biopsy assays to more rapidly assess the molecular status of patients with NSCLC, enabling oncologists to select the most appropriate therapy while also reducing the overall cost of care.
Expanded the agreement with MultiPlan, a healthcare cost management company offering payment integrity and network-based and analytics-based services, to include COVID-19 testing at a pre-negotiated price per test. More than 1 million healthcare providers participate in MultiPlan’s networks and 60 million health plan members have access to its services.

Development

Biocept is developing and undertaking patent protection, for a broad-based pathogen collection kit, with specific applications to COVID-19. This tube has been shown to rapidly kill COVID-19, and to preserve COVID-19 RNA for analysis at room temperature for several weeks. It has also been shown to be fully compatible with standard nucleic acid isolation methods. Biocept-developed COVID-19 sample collection tubes are on track for validation and for patent filing by the end of 2020.
Progress is being made under the agreement with Aegea Biotechnologies to develop a new, highly sensitive, next-generation PCR-based COVID-19 assay utilizing the patented Switch-Blocker™ technology. The test is designed for improved analytical performance in order to better assist healthcare providers in screening and managing patients. The collaboration highlights the potential to apply the Switch-Blocker™ technology to molecular diagnostics in COVID-19 and other infectious diseases, in addition to oncology applications.

Industry Conference Presentation

Presented results from a small prospective study comparing Target Selector™ cerebrospinal fluid (CSF) testing to conventional cytology in patients with NSCLC and leptomeningeal metastasis at the “Hot Topic: Liquid Biopsy” meeting of the International Association for the Study of Lung Cancer. Study results indicate that Target Selector™ may play an important role in providing valuable information to neuro-oncologists in making treatment decisions for patients with lung cancer metastases to the brain and spinal cord.
Announced the upcoming presentation at the Society for Neuro-Oncology’s SNO2020 Virtual Conference of results from a study using its Target Selector™ CSF assays to analyze cerebrospinal fluid samples of patients with primary lung or breast cancer with either brain or leptomeningeal disease. The conference is being held November 19-21, 2020.

Intellectual Property

Awarded a Japanese patent for the use of binding entities in combination with any solid surface to capture and detect any target of interest, including circulating tumor cells (CTCs), from any sample type. This patent combines well with Biocept’s patented microchannel and cell-staining platforms, and provides opportunities for out-licensing technology with a focus on any target of interest, including single-cell analysis and other methodologies.
Awarded U.S. and Japanese patents for Primer-Switch technology, which is useful for the detection of rare mutations, including cancer biomarkers, found in tissue, blood and cerebrospinal fluid using circulating tumor DNA (ctDNA) analysis through RT-PCR and associated analysis methods, including next-generation sequencing (NGS).
Received a Hong Kong patent covering the enhanced detection of rare cells, including cancer cells, further expanding Biocept’s global patent estate for capturing and detecting rare cells of interest, including CTCs, to aid in the treatment of patients with cancer.
Expanded its U.S. and international patent portfolio for molecular technologies to 44 issued patents.

Third Quarter Financial Results

Revenues for the third quarter of 2020 were $6.6 million, compared with $1.5 million for the third quarter of 2019, with the increase attributable to RT-PCR COVID-19 testing. Revenues for the third quarter of 2020 included $6.4 million in commercial test revenue, which includes $5.7 million attributable to RT-PCR COVID-19 testing, $47,000 in development services test revenue and $154,000 in revenue for distributed products, Target Selector™ RUO kits, CEE-Sure® blood collection tubes and payments from Aegea Bioscience for services associated with the development of a COVID-19 assay. Revenues for the third quarter of 2019 included $1.4 million in commercial test revenue, $38,000 in development services test revenue and $59,000 from distributed products.

Biocept accessioned 52,993 total samples during the third quarter of 2020, compared with 1,429 total samples during the third quarter of 2019. The Company accessioned 52,773 billable samples during the third quarter of 2020, compared with 1,189 billable samples during the third quarter of 2019. The increase in total and billable samples was attributable primarily to RT-PCR COVID-19 testing.

Cost of revenues for the third quarter of 2020 was $5.9 million, compared with $2.8 million for the third quarter of 2019. Research and development (R&D) expenses for the third quarter of 2020 were $1.1 million, compared with $1.2 million for the third quarter of 2019, with the decrease primarily due to a reduction in laboratory allocated costs. General and administrative (G&A) expenses for the third quarter of 2020 were $3.0 million, compared with $1.7 million for the third quarter of 2019, with the increase primarily due to legal and investor relations expenses, as well as headcount additions to handle COVID-19 related activities. Sales and marketing expenses for the third quarter of 2020 were $1.4 million, compared with $1.5 million for the third quarter of 2019, staying relatively flat due to curtailed sales and marketing activities due to the pandemic.

The net loss attributable to common shareholders for the third quarter of 2020 was $4.9 million, or $0.43 per share on 11.3 million weighted-average shares outstanding. The net loss attributable to common shareholders for the third quarter of 2019 was $5.7 million, or $2.47 per share on 2.3 million weighted-average shares outstanding.

Nine Month Financial Results

Revenues for the first nine months of 2020 were $9.0 million, compared with $3.7 million for the first nine months of 2019. Revenues for the first nine months of 2020 included $8.5 million in commercial test revenue, which includes $5.7 million attributable to RT-PCR COVID-19 testing, $145,000 in development services test revenue and $261,000 in revenue for Target Selector™ RUO kits, CEE-Sure blood collection tubes and payments from Aegea Bioscience for services associated with the development of a COVID-19 assay.

Operating expenses for the first nine months of 2020 were $26.4 million, and included cost of revenues of $11.3 million, R&D expenses of $4.0 million, G&A expenses of $6.8 million and sales and marketing expenses of $4.2 million. Operating expenses for the first nine months of 2019 were $21.2 million, and included cost of revenues of $8.1 million, R&D expenses of $3.5 million, G&A expenses of $5.1 million and sales and marketing expenses of $4.5 million.

The net loss for the first nine months of 2020 was $19.7 million, or $1.48 per share on 13.3 million weighted-average shares outstanding. This compares with a net loss for the first nine months of 2019 of $19.5 million, or $10.96 per share on 1.8 million weighted-average shares outstanding.

Biocept reported cash and cash equivalents as of September 30, 2020 of $16.9 million, compared with $9.3 million as of December 31, 2019. In the third quarter of 2020, as a result of sales and anticipated demand for COVID-19 testing, the Company increased consumable inventory by $2.3 million and grew accounts receivable by $4.8 million.

Conference Call and Webcast

Biocept will hold a conference call today at 4:30 p.m. Eastern time to discuss these results and answer questions. The conference call can be accessed by dialing (855) 656-0927 for domestic callers, (855) 669-9657 for Canadian callers or (412) 902-4109 for other international callers. A live webcast of the conference call will be available on the investor relations page of the company’s website at http://ir.biocept.com/events.cfm.

A replay of the call will be available for 48 hours following its conclusion and can be accessed by dialing (877) 344-7529 for domestic callers, (855) 669-9658 for Canadian callers or (412) 317-0088 for other international callers. Please use event passcode 10149217. A replay of the webcast will be available for 90 days.

About Biocept

Biocept, Inc. is a molecular diagnostics company with commercialized assays for lung, breast, gastric, colorectal and prostate cancers, melanoma, and tumors metastatic to the central nervous system (brain and spinal cord). The Company uses its proprietary liquid biopsy technology to provide physicians with clinically actionable information for treating and monitoring patients diagnosed with cancer. The Company’s patented Target Selector™ liquid biopsy technology platform captures and analyzes tumor-associated molecular markers in both circulating tumor cells (CTCs) and in circulating tumor DNA (ctDNA) found in both blood and Cerebral Spinal Fluid. With thousands of tests performed, the platform has demonstrated the ability to identify cancer mutations and alterations to inform physicians about a patient’s disease and therapeutic options. In addition, Biocept is conducting COVID-19 testing to support efforts to fight the pandemic. For additional information, please visit www.biocept.com.

Forward-Looking Statements Disclaimer Statement
This news release contains forward-looking statements that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, we can give no assurance that such expectations and assumptions will prove to be correct. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project,” or the negative of these words or other variations on these words or comparable terminology. To the extent that statements in this news release are not strictly historical, including, without limitation, statements as to our ability to provide physicians with clinically actionable information to improve the outcomes of cancer patients, the future role of COVID-19 testing in our business, the sensitivity of our Target Selector CSF assays in detecting lung and breast cancer and the value of such assays as a diagnostic tool and in profiling biomarkers to help physicians with treatment selection, the potential growth of our new clinical programs focused on neuro-oncology testing, the timing of our COVID-19 sample collection tubes validation and patent filing, the potential of our development agreement with Aegea Biotechnologies, including the potential to utilize Switch-Blocker™ technology to develop a new, highly sensitive, next-generation PCR-based COVID-19 and molecular diagnostics for other infectious diseases, the potential role of Target Selector in providing information to neuro-oncologists in making treatment decisions for patients with lung cancer metastases to the brain and spinal cord, and our upcoming presentation at the Society for Neuro-Oncology’s SNO2020 Virtual Conference, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous risk factors as set forth in our Securities and Exchange Commission (SEC) filings. The effects of such risks and uncertainties could cause actual results to differ materially from the forward-looking statements contained in this news release. We do not plan to update any such forward-looking statements and expressly disclaim any duty to update the information contained in this press release except as required by law. Readers are advised to review our filings with the SEC at http://www.sec.gov/.

Investor Contact

:

LHA Investor Relations

Jody Cain

[email protected]

(310) 691-7100


BIOCEPT, INC.
CONDENSED BALANCE SHEETS

	December 31,		September 30,

	2019		2020

				(unaudited)
ASSETS
Cash	$	9,301,406	$	16,857,941
Accounts receivable, net		3,527,078		7,954,625
Inventories, net		767,986		3,315,789
Prepaid expenses and other current assets		296,127		697,946
TOTAL CURRENT ASSETS		13,892,597		28,826,301
FIXED ASSETS, NET		1,504,330		1,607,177
LEASE RIGHT-OF-USE ASSETS		2,335,717		2,371,157
TOTAL ASSETS	$	17,732,644	$	32,804,635
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES, NET	$	5,558,812	$	10,113,652
NON-CURRENT LIABILITIES, NET		973,189		1,337,686
TOTAL LIABILITIES		6,532,001		11,451,338
SHAREHOLDERS’ EQUITY		11,200,643		21,353,297
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	17,732,644	$	32,804,635


BIOCEPT, INC.
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

	For the three months ended September 30,				For the nine months ended September 30,
	For the three months ended September 30,				For the nine months ended September 30,
	2019		2020		2019		2020
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
NET REVENUES	$	1,529,262	$	6,586,144	$	3,744,824	$	8,950,160
COSTS AND EXPENSES
Cost of revenues	$	2,832,735	$	5,859,370	$	8,105,422	$	11,323,668
Research and development expenses		1,163,546		1,087,741		3,535,116		3,989,133
General and administrative expenses		1,700,380		3,023,337		5,058,525		6,839,467
Sales and marketing expenses		1,462,335		1,434,481		4,451,628		4,232,867
Total costs and expenses		7,158,996		11,404,929		21,150,691		26,385,135
LOSS FROM OPERATIONS		(5,629,734)		(4,818,785)		(17,405,867)		(17,434,975)
WARRANT INDUCEMENT, INTEREST AND OTHER EXPENSE		(62,028)		(59,549)		(2,018,691)		(2,274,000)
LOSS BEFORE INCOME TAXES		(5,691,762)		(4,878,334)		(19,424,558)		(19,708,975)
INCOME TAXES		—		—		—		—
NET LOSS AND COMPREHENSIVE LOSS	$	(5,691,762)	$	(4,878,334)	$	(19,424,558)	$	(19,708,975)
Deemed dividend related to warrants down round provision		—		—		(99,743)		(2,774)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(5,691,762)	$	(4,878,334)	$	(19,524,301)	$	(19,711,749)
NET LOSS PER SHARE
– Basic	$	(2.47)	$	(0.43)	$	(10.96)	$	(1.48)
– Diluted	$	(2.47)	$	(0.43)	$	(10.96)	$	(1.48)
WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
– Basic		2,301,819		11,324,289		1,780,727		13,333,427
– Diluted		2,301,819		11,324,289		1,780,727		13,333,427

View original content to download multimedia:http://www.prnewswire.com/news-releases/biocept-reports-third-quarter-2020-financial-results-301172345.html

SOURCE Biocept, Inc.

November 12, 2020 4:09 pm

ThermoGenesis Holdings Announces Financial Results for the Third Quarter Ended September 30, 2020 and Provides Corporate Update

Conference Call to be Held Today at 1:30 p.m. PT/4:30 p.m. ET

PR Newswire

RANCHO CORDOVA, Calif., Nov. 12, 2020 /PRNewswire/ — ThermoGenesis Holdings, Inc. (Nasdaq: THMO), a market leader in automated cell processing tools and services in the cell and gene therapy field, today announced financial and operating results for the third quarter ended September 30, 2020 and provided a corporate update.

Financial Results for the Quarter Ended September 30, 2020

Net Revenues. Consolidated net revenues for the three months ended September 30, 2020 were $2.4 million compared to $4.1 million for the three months ended September 30, 2019, a decrease of $1.7 million or 42%. The decrease was driven by lower AXP® disposable and CAR-TXpress^™ sales. The COVID-19 pandemic appears to be the main driver of the decline as fewer cord blood units are being stored globally during the pandemic. The Company expects sales to increase after the pandemic is over.

Gross Profit. The Company’s gross profit was $1.5 million or 64% of net revenues for the three months ended September 30, 2020, compared to $1.9 million or 47% of net revenues for the quarter ended September 30, 2019, a decrease of $0.4 million. The decrease was driven by the decline in AXP disposable and CAR-TXpress sales, partially offset by a refund of approximately $0.8 million from ImmuneCyte for its mark-up on sales of the testing kits which were previously reserved by the Company.

Sales and Marketing Expenses. Consolidated sales and marketing expenses were $539,000 for the three months ended September 30, 2020, as compared to $502,000 for the three months ended September 30, 2019, an increase of 7%. The increase was driven by accrued expenses related to the Company’s employee short-term incentive program and for consulting expenses. These increases were partially offset by lower stock compensation expense in the quarter ended September 30, 2020.

Research and Development Expenses. Consolidated research and development expenses were $750,000 for the three months ended September 30, 2020, compared to $584,000 for the three months ended September 30, 2019, an increase of $166,000 or 28%. The increase was driven by development expenses for the Company’s COVID-19 cartridge reader.

General and Administrative Expenses. Consolidated general and administrative expenses for the three months ended September 30, 2020 were $1.3 million, compared to $1.1 million for the three months ended September 30, 2019, an increase of $0.2 million or 15%. The primary driver of the increase was accrued expenses related to the Company’s employee short-term incentive program and severance expense.

Interest Expense. Interest expense for the three months ended September 30, 2020 was $1.5 million, compared to $1.2 million for the three months ended September 30, 2019, an increase of $0.3 million. The increase was driven by additional interest expense and amortization of the debt discount related to the Revolving Credit Agreement with Boyalife Asset Holding II, Inc.

Net Loss. For the quarter ended September 30, 2020, the Company reported a comprehensive loss attributable to common stockholders of $2.5 million, or $(0.37) per share, based on 6,711,664 weighted average basic and diluted common shares outstanding. This compares to a comprehensive net loss of $2.3 million, or $(0.78) per share, based on 2,913,198 weighted average basic and diluted common shares outstanding for the quarter ended September 30, 2019.

Adjusted EBITDA. In addition to the results reported under U.S. GAAP, the Company also uses a non-GAAP measure, adjusted EBITDA, to evaluate operating performance and to facilitate the comparison of its historical results and trends. The Company uses the metric to determine operational cash flow. Adjusted EBITDA for the three months ended September 30, 2020 was a loss of $672,000, compared to income of $125,000 for the three months ended September 30, 2019, a decrease of $797,000. The adjusted EBITDA decrease was driven by a reduction in gross profit as the result of lower sales, inventory reserves, accrued expenses related to the Company’s employee short-term incentive program, increased research and development expenses and severance expense. These decreases were partially offset by an $0.8 million refund received from ImmuneCyte for its mark-up portion of the testing kits previously reserved by the Company. A reconciliation of adjusted EBITDA to net loss is set forth below.

Liquidity and Capital Resources. At September 30, 2020, the Company had cash and cash equivalents totaling $4.4 million, compared with $3.2 million at December 31, 2019. Working capital improved to $7.1 million at September 30, 2020 as compared to $3.2 million at December 31, 2019.

Conference Call and Webcast Information
ThermoGenesis will host a conference call today at 1:30 p.m. PT/4:30 p.m. ET. To participate in the conference call, please dial 1-844-889-4331 (domestic), 1-412-380-7406 (international) or 1-866-605-3852 (Canada). To access a live webcast of the call, please visit: https://thermogenesis.com/investors/news-and-events/events-webcasts.

A webcast replay will also be available on ThermoGenesis’ website for three months, please visit: https://thermogenesis.com/investors/news-and-events/events-webcasts.

About ThermoGenesis Holdings, Inc.
ThermoGenesis Holdings, Inc. develops, commercializes, and markets a range of automated technologies for CAR-T and other cell-based therapies. The Company currently markets a full suite of solutions for automated clinical biobanking, point-of-care applications, and automation for immuno-oncology, including its semi-automated, functionally-closed CAR-TXpress™ platform, which streamlines the manufacturing process for the emerging CAR-T immunotherapy market. For more information about ThermoGenesis, please visit: www.thermogenesis.com.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained herein. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect” and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. Actual results, performance or achievements could differ materially from the results expressed in or implied by these forward-looking statements. Readers should be aware of important factors that, in some cases, have affected, and in the future could affect, actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of the Company. These factors include without limitation, the ability to obtain capital and other financing in the amounts and at the times needed to launch new products, market acceptance of new products, the nature and timing of regulatory approvals for both new products and existing products for which the Company proposes new claims, realization of forecasted revenues, expenses and income, initiatives by competitors, price pressures, failure to meet FDA regulated requirements governing the Company’s products and operations (including the potential for product recalls associated with such regulations), risks associated with initiating manufacturing for new products, failure to meet Foreign Corrupt Practice Act regulations, legal proceedings, uncertainty associated with the COVID-19 pandemic, and other risk factors listed from time to time in our reports with the Securities and Exchange Commission (“SEC”), including, in particular, those set forth in ThermoGenesis Holdings’ Form 10-K for the year ended December 31, 2019.

Company Contact:

Wendy Samford

916-858-5191
[email protected]

Investor Contact:

Paula Schwartz, Rx Communications
917-322-2216
[email protected]

Financials

ThermoGenesis Holdings, Inc. Condensed Consolidated Balance Sheets (Unaudited)

	September 30, 2020	December 31, 2019

ASSETS
Current assets:
Cash and cash equivalents	$4,436,000	$3,157,000
Restricted cash	—	1,000,000
Accounts receivable, net	1,698,000	1,278,000
Inventories, net	5,876,000	3,824,000
Prepaid expenses and other current assets	766,000	602,000

Total current assets	12,776,000	9,861,000

Equipment and leasehold improvements, net	1,537,000	2,028,000
Right-of-use operating lease assets, net	765,000	859,000
Goodwill	781,000	781,000
Intangible assets, net	1,382,000	1,467,000
Other assets	48,000	218,000

Total assets	$17,289,000	$15,214,000

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$1,661,000	$1,447,000
Other current liabilities	4,059,000	5,238,000

Total current liabilities	5,720,000	6,685,000

Long-term liabilities	8,267,000	7,613,000

ThermoGenesis Holdings, Inc. stockholders’ equity	3,132,000	386,000

Noncontrolling interests	170,000	530,000

Total liabilities and equity	$17,289,000	$15,214,000

ThermoGenesis Holdings, Inc. Condensed Consolidated Statements of Operations (Unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019

Net revenues	$2,355,000	$4,058,000	$7,797,000	$11,325,000
Cost of revenues	844,000	2,163,000	7,426,000	6,220,000

Gross profit	1,511,000	1,895,000	371,000	5,105,000

Expenses:

Sales and marketing	539,000	502,000	1,424,000	1,227,000
Research and development	750,000	584,000	1,937,000	1,758,000
General and administrative	1,305,000	1,139,000	4,489,000	3,617,000

Total operating expenses	2,594,000	2,225,000	7,850,000	6,602,000

Loss from operations	(1,083,000)	(330,000)	(7,479,000)	(1,497,000)

Interest expense	(1,531,000)	(1,188,000)	(6,377,000)	(3,531,000)
Loss on equity method investments	—	—	(13,000)	—
Loss on extinguishment of debt	—	(840,000)	—	(840,000)
Other income (expenses)	5,000	(15,000)	7,000	(27,000)

Total other expenses	(1,526,000)	(2,043,000)	(6,383,000)	(4,398,000)

Net loss	(2,609,000)	(2,373,000)	(13,862,000)	(5,895,000)

Loss attributable to noncontrolling interests	(146,000)	(91,000)	(360,000)	(445,000)
Net loss attributable to common stockholders	$(2,463,000)	$(2,282,000)	$(13,502,000)	$(5,450,000)

ThermoGenesis Holdings, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended September 30,
	2020	2019
Cash flows from operating activities:
Net cash used in operating activities	$(11,859,000)	$(3,518,000)

Cash flows from investing activities:
Capital expenditures	(23,000)	(178,000)
Net cash used in investing activities	(23,000)	(178,000)

Cash flows from financing activities:
Proceeds from convertible promissory note-related party	4,287,000	1,513,000
Payments on financing lease obligations	(32,000)	(15,000)
Proceeds from issuance of common stock, net of expenses	5,580,000	756,000
Proceeds from exercise of options, warrants and pre-funded warrants	1,683,000	42,000
Proceeds from long-term debt	—	1,800,000
Proceeds from note payable	646,000	—

Net cash provided by financing activities	12,164,000	4,096,000

Effects of exchange rate changes on cash and cash equivalents	(3,000)	—
Net increase (decrease) in cash, cash equivalents and restricted cash	279,000	400,000

Cash, cash equivalents and restricted cash at beginning of period	4,157,000	3,400,000
Cash, cash equivalents and restricted cash at end of period	$4,436,000	$3,800,000

ThermoGenesis Holdings, Inc. Reconciliation of Adjusted EBITDA to Net Income (Loss) (Unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Net loss	$(2,609,000)	$(2,373,000)	$(13,862,000)		$(5,895,000)

Deduct:
Interest expense	(1,531,000)	(1,188,000)	(6,377,000)	(3,531,000)
Fair value change of derivative instruments and other	5,000	(15,000)	7,000	(27,000)
Loss on extinguishment of debt	—	(840,000)	—	(840,000)
Loss on equity method investments	—	—	(13,000)	—
Loss from operations	$(1,083,000)	$(330,000)	$(7,479,000)	$(1,497,000)

Add:
Depreciation and amortization	177,000	202,000	569,000	604,000
Stock-based compensation expense	234,000	253,000	615,000	459,000
Adjusted EBITDA	$(672,000)	$125,000	$(6,295,000)	$(434,000)

The Company defines adjusted EBITDA as income (or loss) from operations less, depreciation, amortization, stock compensation and impairment of intangible assets.

View original content:http://www.prnewswire.com/news-releases/thermogenesis-holdings-announces-financial-results-for-the-third-quarter-ended-september-30-2020-and-provides-corporate-update-301172327.html

SOURCE ThermoGenesis Holdings, Inc.

November 12, 2020 4:09 pm

Hain Celestial to Participate in the Bernstein Operational Decisions Conference

PR Newswire

LAKE SUCCESS, N.Y., Nov. 12, 2020 /PRNewswire/ — The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain Celestial”, “Hain” or the “Company”), a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East providing consumers with A Healthier Way of Life™, today announced that the Company is hosting a fireside chat discussion at the Bernstein Operational Decisions Conference on Monday, November 16, 2020 at 12:30 PM Eastern Time. The webcast can be accessed on Hain Celestial’s website at www.hain.com under Investor Relations and the Press & Events section.

About The Hain Celestial Group, Inc.
The Hain Celestial Group (Nasdaq: HAIN), headquartered in Lake Success, NY, is a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East. Hain Celestial participates in many natural categories with well-known brands that include Celestial Seasonings®, Clarks™, Cully & Sully®, Dream®, Earth’s Best®, Ella’s Kitchen®, Farmhouse Fare™, Frank Cooper’s®, GG UniqueFiber®, Gale’s®, Garden of Eatin’®, Hain Pure Foods®, Hartley’s®, Health Valley®, Imagine®, Joya®, Lima®, Linda McCartney® (under license), MaraNatha®, Natumi®, New Covent Garden Soup Co.®, Orchard House®, Robertson’s®, Sensible Portions®, Spectrum®, Sun-Pat®, Sunripe®, Terra®, The Greek Gods®, William’s™, Yorkshire Provender® and Yves Veggie Cuisine®. The Company’s personal care products are marketed under the Alba Botanica®, Avalon Organics®, Earth’s Best®, JASON®, Live Clean®, One Step® and Queen Helene® brands.

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SOURCE The Hain Celestial Group, Inc.

November 12, 2020 4:09 pm

iAnthus Announces Postponement of Annual General Meeting

PR Newswire

NEW YORK and TORONTO, Nov. 12, 2020 /PRNewswire/ – iAnthus Capital Holdings, Inc. (“iAnthus” or the “Company”) (CSE: IAN) (OTCPK: ITHUF), which owns, operates and partners with regulated cannabis operations across the United States, announces that, due to the challenges related to COVID-19 and the expected reconstitution of the board of directors of the Company contemplated in connection with the previously announced recapitalization transaction (the “Recapitalization Transaction”), the Company’s management determined that it is in the best interest of shareholders to postpone the Company’s 2020 annual general meeting (“AGM”). The Company has been granted an extension (of up to six months with an outside date of June 30, 2021) by the BC Registrar of Companies, which will allow the Company sufficient time to prepare the required information circular and communicate effectively with shareholders on material matters. The Company will continue to monitor the COVID-19 situation and, as the Recapitalization Transaction progresses, the Company will set a date for its next AGM and will file a notice of meeting and record date on the Company’s website and under the Company’s SEDAR profile at www.sedar.com.

For further details on the Court’s approval for the Recapitalization Transaction, see the Company’s news release dated October 6, 2020, a copy of which is available under the Company’s SEDAR profile at www.sedar.com.

About iAnthus

iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States. For more information, visit www.iAnthus.com.

COVID-19 Risk Factor

The Company may be impacted by business interruptions resulting from pandemics and public health emergencies, including those related to COVID-19. An outbreak of infectious disease, a pandemic, or a similar public health threat, such as the recent outbreak of COVID-19, or a fear of any of the foregoing could adversely impact the Company by causing operating, manufacturing, supply chain, and project development delays and disruptions, labor shortages, travel, and shipping disruption and shutdowns (including as a result of government regulation and prevention measures). It is unknown whether and how the Company may be affected if such a pandemic persists for an extended period of time, including as a result of the waiver of regulatory requirements or the implementation of emergency regulations to which the Company is subject. Although the Company has been deemed essential and/or has been permitted to continue operating its facilities in the states in which it cultivates, processes, manufactures, and sells cannabis during the pendency of the COVID-19 pandemic, there is no assurance that the Company’s operations will continue to be deemed essential and/or will continue to be permitted to operate. The Company may incur expenses or delays relating to such events outside of its control, which could have a material adverse impact on its business, operating results, financial condition, and the trading price of the Common Shares.

Forward Looking Statements

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties, including concerning COVID-19 and the specific factors disclosed here and elsewhere in iAnthus’ periodic filings with Canadian securities regulators. When used in this news release, words such as “will”, “hope”, “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “believe”, “should”, “our vision” and similar expressions, are forward-looking statements.

Forward-looking statements may include, without limitation, the timing of the Company’s next AGM and the timing and outcome of closing of the Recapitalization Transaction.

Readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. iAnthus disclaims any intention or obligation to update or revise such information, except as required by applicable law, and iAnthus does not assume any liability for disclosure relating to any other company mentioned herein.

The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.

The securities to be issued pursuant to the Restructuring Transaction have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. “United States” and “U.S. person” are as defined in Regulation S under the U.S. Securities Act.

View original content:http://www.prnewswire.com/news-releases/ianthus-announces-postponement-of-annual-general-meeting-301172261.html

SOURCE iAnthus Capital Holdings, Inc.

November 12, 2020 4:09 pm

BIOLASE Reports Strong Sequential Revenue Growth In Third Quarter 2020

Reopening of Dental Practices Drives Sequential Revenue Growth

Clinically Proven Product Portfolio Reduces Potential Risk of Infectious Pathogens; Creates Significant Growth Opportunities as Dental Professionals Seek Safer Technologies to Treat Patients

PR Newswire

FOOTHILL RANCH, Calif., Nov. 12, 2020 /PRNewswire/ — BIOLASE, Inc. (NASDAQ: BIOL), the global leader in dental lasers, today announced its financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Financial Highlights:

U.S. laser revenue increased 16% year over year
U.S. consumables and other revenue increased 25% year over year
New customers represented over 90% of U.S. laser sales in the quarter
Total revenue more than doubled sequentially, while down 24% year over year
Operating expenses decreased 24% year over year
Significantly strengthened balance sheet with an $18.0 million equity raise

“Our significantly improved third quarter revenue was driven by several factors, including 95% of dental offices having reopened in the United States, dental procedure levels having reached 70-80% of their pre-Covid-19 levels, and the fact that our product portfolio reduces the risk of infectious pathogens,” said Todd Norbe, President and Chief Executive Officer. “Our Epic Hygiene dental laser meets the Centers for Disease Control and Prevention (CDC) guidelines to minimize the risk of COVID-19, while our all-tissue Waterlase dental lasers create 98% less aerosol than traditional dental handpieces, meeting the American Dental Association’s recommendation of reduced aerosol production to limit the spread of infectious pathogens, such as COVID-19. These unique attributes meet the rising needs of both dentists and patients as they look for solutions that allow them to provide and receive dental treatment in the safest way possible.”

2020 Third Quarter Financial Results

Net revenue for the third quarter of 2020 was $6.5 million, an increase of 124% sequentially from second quarter revenue of $2.9 million, and a decrease of 24% compared to net revenue of $8.6 million for the third quarter of 2019. U.S. laser revenue was $2.7 million in the third quarter of 2020, up 16% when compared to U.S. laser revenue of $2.3 million for the third quarter of 2019. This increase is due to higher average selling prices in the third quarter of 2020 than in 2019. U.S. consumables and other revenue for the third quarter of 2020, which consists of revenue from consumable products such as disposable tips, increased 25% compared to the third quarter of 2019. Outside the U.S., laser revenue declined 64% to $1.0 million for the third quarter of 2020 compared to $2.8 million for the third quarter of 2019.

Gross margin for the third quarter of 2020 was 35%, compared to 34% for the third quarter of 2019. The higher gross margin reflects higher average U.S. selling prices of our lasers and a higher percentage of U.S. sales, partially offset by a decline in revenues relative to our fixed costs. Total operating expenses were $5.9 million for the third quarter of 2020 compared to $7.9 million for the third quarter of 2019, a decrease of approximately 24%. Operating loss for the third quarter of 2020 was $3.7 million, compared to an operating loss of $4.9 million in the third quarter of 2019, a decrease of 25% year over year. Net income for the third quarter of 2020 was $12,000 and less than $0.01 per share before a deemed dividend on preferred stock of $17.4 million, compared to a net loss of $5.5 million, or $0.25 per share, for the third quarter of 2019. Net loss after the deemed dividend was $17.4 million or $0.21 per share for the three months ended September 30, 2020.

Cash, cash equivalents, and restricted cash totaled $19.2 million as of September 30, 2020, and included proceeds from the rights offering completed in July.

Use of Non-GAAP Measures

The Reconciliation of GAAP Net Loss to Adjusted EBITDA at the end of this news release provides the details of the Company’s non-GAAP disclosures and the reconciliation of GAAP net loss and net loss per share to the Company’s Adjusted EBITDA and Adjusted EBITDA per share.

Adjusted EBITDA loss for the third quarter of 2020 was $2.5 million, or $0.03 per share, compared with Adjusted EBITDA loss of $2.7 million, or $0.12 per share, for the third quarter of 2019.

Conference Call Information

BIOLASE, Inc. will host a conference call today at 4:30 p.m. Eastern Time to discuss its operating results for the third quarter ended September 30, 2020, and to answer questions. For both “listen-only” participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the U.S./Canada is 800-367-2403. For international participants outside the U.S./Canada, the dial-in number is 334-777-6978. For all callers, refer to the Conference ID 9286776. To access the live webcast, visit the Investor Relations section of the BIOLASE website at www.biolase.com and see “Investor Events”.

An audio archive of the webcast will be available for 30 days on the Investor Relations section of the BIOLASE website.

About BIOLASE

BIOLASE is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine. BIOLASE’s products advance the practice of dentistry and medicine for patients and healthcare professionals. BIOLASE’s proprietary laser products incorporate approximately patented 259 and 41 patent-pending technologies designed to provide biologically clinically superior performance with less pain and faster recovery times. BIOLASE’s innovative products provide cutting-edge technology at competitive prices to deliver superior results for dentists and patients. BIOLASE’s principal products are revolutionary dental laser systems that perform a broad range of dental procedures, including the treatment of periodontitis, and a full line of dental imaging equipment. BIOLASE has sold over 41,500 laser systems to date in over 80 countries around the world. Laser products under development address BIOLASE’s core dental market and other adjacent medical and consumer applications.

For updates and information on Waterlase iPlus®, Waterlase Express™, and laser dentistry, find BIOLASE online at www.biolase.com, Facebook at www.facebook.com/biolase, Twitter at www.twitter.com/biolaseinc, Instagram at www.instagram.com/waterlase_laserdentistry, and LinkedIn at www.linkedin.com/company/biolase.

BIOLASE®, Waterlase® and Waterlase iPlus® are registered trademarks of BIOLASE, Inc.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties, including statements, predictions, or expectations regarding BIOLASE’s revenue during the third quarter of 2020. Forward-looking statements can be identified through the use of words such as may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “continue,” “expect,” “believe,” “anticipate,” “estimate,” “predict,” “outlook,” “potential,” “plan,” “seek,” and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect BIOLASE’s current expectations and speak only as of the date of this release. Actual results may differ materially from BIOLASE’s current expectations depending upon a number of factors. These factors include, among others, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the “Risk Factors” section of BIOLASE’s annual report filed on Form 10-K filed with the Securities and Exchange Commission. Except as required by law, BIOLASE does not undertake any responsibility to revise or update any forward-looking statements.

Tables to Follow

BIOLASE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net revenue	$	6,539	$	8,646	$	14,260	$	27,617
Cost of revenue		4,265		5,677		9,692		17,746
Gross profit		2,274		2,969		4,568		9,871
Operating expenses:
Sales and marketing		2,678		3,515		7,475		10,665
General and administrative		2,300		3,210		7,446		8,114
Engineering and development		963		1,126		2,644		3,665
Total operating expenses		5,941		7,851		17,565		22,444
Loss from operations		(3,667)		(4,882)		(12,997)		(12,573)
(Gain) loss on foreign currency transactions		(53)		19		68		68
Interest expense, net		568		551		1,782		1,559
Other (income) expense, net		(4,209)		—		(4,209)		—
Non-operating loss		(3,694)		570		(2,359)		1,627
Income (loss) before tax provision		27		(5,452)		(10,638)		(14,200)
Income tax provision		15		26		49		68
Net income (loss)	$	12	$	(5,478)	$	(10,687)	$	(14,268)

Net income (loss)	$	12	$	(5,478)	$	(10,687)	$	(14,268)
Deemed dividend on convertible preferred stock		(17,378)		—		(17,378)		—
Net loss per share attributable to common stockholders:	$	(17,366)	$	(5,478)	$	(28,065)	$	(14,268)

Basic	$	(0.21)	$	(0.25)	$	(0.56)	$	(0.66)
Diluted	$	(0.21)	$	(0.25)	$	(0.56)	$	(0.66)
Shares used in the calculation of net loss per share:
Basic		81,341		21,898		50,366		21,545
Diluted		81,341		21,898		50,366		21,545

BIOLASE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)

	September 30,		December 31,
	2020		2019
	(Unaudited)		(Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	18,847	$	5,789
Restricted cash		312		312
Accounts receivable, less allowance of $3,837 and $2,531 in 2020 and 2019, respectively		3,393		8,760
Inventory		12,592		10,995
Prepaid expenses and other current assets		903		1,163
Total current assets		36,047		27,019
Property, plant and equipment, net		742		1,193
Goodwill		2,926		2,926
Right of use asset		2,061		276
Other assets		220		433
Total assets	$	41,996	$	31,847

LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,592	$	5,332
Accrued liabilities		4,279		4,744
Deferred revenue, current portion		1,616		2,237
Term loan (net of discount)		12,946		13,466
Total current liabilities		21,433		25,779
Deferred revenue		412		358
Warranty accrual		204		245
Other liabilities		1,097		1,119
Non current lease liability		1,859		4
Non current term loans		3,140		—
Total liabilities		28,145		27,505
Redeemable preferred stock:
Series E Preferred stock, par value $0.001 per share	$	—	$	3,965
Total redeemable preferred stock		—		3,965
Stockholders’ equity:
Series F Preferred Stock, par value $0.001 per share		141		—
Common stock, par value $0.001 per share		93		31
Additional paid-in capital		259,385		235,594
Accumulated other comprehensive loss		(534)		(701)
Accumulated deficit		(245,234)		(234,547)
Total stockholders’ equity		13,851		377
Total liabilities, redeemable preferred stock and stockholders’ equity	$	41,996	$	31,847

BIOLASE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

	Nine Months Ended
	September 30,
	2020		2019
Cash Flows from Operating Activities:
Net loss	$	(10,687)	$	(14,268)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Depreciation and amortization		527		754
Provision for bad debts		1,263		1,243
Provision for sales returns		87		—
Amortization of discounts on lines of credit		123		103
Amortization of debt issuance costs		240		130
Change in fair value of warrants		(5,850)		—
Issuance costs for common stock warrants		1,640		—
Earned interest income		—		2
Stock-based compensation		2,367		1,974
Deferred income taxes		—		(6)
Changes in operating assets and liabilities:
Accounts receivable		4,017		1,393
Inventory		(1,597)		711
Prepaid expenses and other current assets		430		1,011
Accounts payable and accrued liabilities		(3,445)		(1,157)
Deferred revenue		(562)		36
Net cash and cash equivalents used in operating activities		(11,447)		(8,074)
Cash Flows from Investing Activities:
Purchases of property, plant, and equipment		(78)		(138)
Net cash and cash equivalents used in investing activities		(78)		(138)
Cash Flows from Financing Activities:
Proceeds from the issuance of common stock		6,912		—
Proceeds from the issuance of Series F Convertible Preferred Stock		2,700		—
Proceeds from the issuance of July 2020 Warrants		15,300		—
Payments of equity offering costs		(1,281)		(50)
Payments of warrant issuance costs		(1,640)		—
Borrowings on other long-term loans		3,140		—
Borrowings under term loan		—		2,500
Principal payment on term loan		(700)		—
Borrowings on credit facility		3,000		—
Repayment of credit facility		(3,000)		—
Proceeds from the exercise of common stock warrants		46		—
Payment of debt issuance costs		(75)		(38)
Proceeds from exercise of stock options		—		4
Net cash and cash equivalents provided by financing activities		24,402		2,416
Effect of exchange rate changes		181		(157)
Decrease in cash, cash equivalents and restricted cash		13,058		(5,953)
Cash, cash equivalents and restricted cash, beginning of period		6,101		8,356
Cash, cash equivalents and restricted cash, end of period	$	19,159	$	2,403
Supplemental cash flow disclosure:
Cash paid for interest	$	1,438	$	1,315
Cash paid for income taxes	$	21	$	19
Cash paid for operating leases	$	417	$	414
Non-accrual for accrual for equity offering costs	$	—	$	191
Non-cash accrual for capital expenditures	$	—	$	4
Non-cash settlement of performance award liability	$	151	$	—
Non-cash right-of-use assets obtained in exchange for lease obligation	$	2,037	$	824
Deemed dividend on preferred stock	$	17,378	$	—
Warrants issued in connection with debt instruments	$	67	$	209

Non-GAAP Disclosure

In addition to the financial information prepared in conformity with generally accepted accounting principles in the U.S. (“GAAP”), this press release includes certain historical non-GAAP financial information. Management believes that these non-GAAP financial measures assist investors in making comparisons of period-to-period operating results and that, in some respects, these non-GAAP financial measures are more indicative of the Company’s ongoing core operating performance than their GAAP equivalents. In 2019, the Company revised its non-GAAP financial measures to include the change in allowance for doubtful accounts in an effort to better align its Adjusted EBITDA with its loan covenants and how management evaluates business performance.

Adjusted EBITDA is defined as net loss before interest, taxes, depreciation and amortization, stock-based compensation, change in fair value of patent litigation settlement liability, and allowance for doubtful accounts. Management uses Adjusted EBITDA in its evaluation of the Company’s core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Further, the non-GAAP financial measures presented by the Company may be different from similarly named non-GAAP financial measures used by other companies.

BIOLASE, INC.
Reconciliation of GAAP Net Loss to Adjusted EBITDA
(Unaudited)
(In thousands, except per share data)

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2020		2019		2020		2019
GAAP net loss attributable to common stockholders	$	(17,366)	$	(5,478)	$	(28,065)	$	(14,268)
Deemed dividend on convertible preferred stock		17,378		—		17,378		—
GAAP net income (loss)	$	12	$	(5,478)	$	(10,687)	$	(14,268)
Adjustments:
Interest expense, net		568		551		1,782		1,559
Income tax provision		15		26		49		68
Depreciation and amortization		46		268		527		754
Change in allowance for doubtful accounts		256		1,131		1,263		1,243
Stock-based compensation		847		770		2,367		1,974
Other (income) expense, net		(4,209)		—		(4,209)		—
Adjusted EBITDA	$	(2,465)	$	(2,732)	$	(8,908)	$	(8,670)

GAAP net loss attributable to common stockholders per share, basic and diluted	$	(0.21)	$	(0.25)	$	(0.56)	$	(0.66)
Deemed dividend on convertible preferred stock		0.21		—		0.35		—
GAAP net income (loss) per share, basic and diluted	$	0.00	$	(0.25)	$	(0.21)	$	(0.66)
Adjustments:
Interest expense, net		0.01		0.03		0.04		0.07
Income tax provision		—		—		—		—
Depreciation and amortization		—		0.01		0.01		0.03
Change in allowance for doubtful accounts		—		0.05		0.02		0.06
Stock-based compensation		0.01		0.04		0.04		0.09
Other (income) expense, net		(0.05)		—		(0.08)		—
Adjusted EBITDA per share, basic and diluted	$	(0.03)	$	(0.12)	$	(0.18)	$	(0.41)

View original content to download multimedia:http://www.prnewswire.com/news-releases/biolase-reports-strong-sequential-revenue-growth-in-third-quarter-2020-301172354.html

SOURCE BIOLASE, Inc.

November 12, 2020 4:09 pm

Trecora Resources Announces Upcoming Financial Conference Schedule

PR Newswire

SUGAR LAND, Texas, Nov. 12, 2020 /PRNewswire/ — Trecora Resources (NYSE: TREC), a leading provider of specialty hydrocarbons and specialty waxes, today announced its upcoming conference schedule:

Sidoti Virtual Microcap Conference 2020
Date and Time: Thursday, November 19, 2020 from 3:15 p.m. – 3:45 p.m. ET
(12:15 p.m. – 12:45 p.m. PT)
* Pat Quarles, President & CEO, and Sami Ahmad, CFO, will be available for one-on-one meetings throughout the day.

Investors interested in scheduling a meeting should contact their Sidoti representative.

There will be a live webcast for the Sidoti Virtual Microcap Conference with replays available for 90 days. The slides that accompany the webcast will be available on the Company’s website: www.trecora.com. To listen to the webcast please click on the link below:

Sidoti Virtual Microcap Conference 2020
https://sidoti.zoom.us/webinar/register/WN_OapwQroURLiFGnmGv7dNiw

About Trecora Resources (TREC)
TREC owns and operates a specialty petrochemicals facility specializing in high purity hydrocarbons and other petrochemical manufacturing and a specialty wax facility, both located in Texas, and provides custom processing services at both facilities.

Investor Relations Contact:
Jason Finkelstein
The Piacente Group, Inc.
212-481-2050
[email protected]

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SOURCE Trecora Resources