Novoheart Holdings Inc. announces second quarter 2020 financial results

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VANCOUVER, British Columbia, 31 August 2020 (GLOBE NEWSWIRE) – Novoheart Holdings Inc.(“Novoheart” or “Company”) publishes its monetary effects for the 3 and six months ended June 30, 2020.are expressed in Canadian dollars and comply with International Financial Reporting Standards (IFRS).

Company Highlights:

Patent application filed in bioreactor ‘human center in a pot’ next generation

Successful advertising contract with one of the 20 most sensible pharmaceutical companies

Heart protection from cOVID-19 treatment

Novoheart’s newly renovated lab and studies open up smoothly in Hong Kong

Awarded outstanding biomedical technology award at the 2020 Capital Outstanding Enterprise Awards

Patent application filed in next generation ‘human centre in a bottle’ bioreactor

In June 2020, the company filed a provisional patent application in the United States for a next-generation bioreactor for the “human center in a bottle” with many vital new features that were not available in previous versions. With the new design, this next generation bioreactor will supply the best mini-center camera homes, very vital to the center’s human disease styles. specific style to check the protection and effectiveness of new curative candidates.

Successful advertising contract with one of the 20 most sensible pharmaceutical companies

In April 2020, Novocenter entered into its advertising agreement with one of the company’s 20 most sensible pharmaceutical corporations, the company’s human ventricular center (hvCTS) tissue strips to examine the effects of blind drugs on cardiac contractility.

Assessment of the heart protection of the cOVID-19 remedy on cardiac contractility and arrhythmogenicity

Novoheart completed a may 2020 examination of our synthetic cardiac constructions to examine the effects of hydroxychloroquine and azithromycin on contractility and arrhythmogenicity in the human heart. Our cardiac structures have provided a useful platform for detecting cardiac protection and efficacy when treatments opposed to COVID-19 occur.

Novoheart’s newly renovated lab and studies open up smoothly in Hong Kong

On June 22, 2020, the company quietly opened the newly renovated laboratory and studio workplace in Hong Kong. The site houses the company’s study center with a larger workplace and laboratory. The facility will provide an indispensable area to meet our expansion and allow us to rent more skills to continue providing state-of-the-art service to our global customers.

Awarded the Outstanding Biomedical Technology Award at the CAPITAL Outstanding Enterprise Awards 2020 The CAPITAL Outstanding Enterprise Awards are one of the most identified corporate awards in Hong Kong, with the aim of rewarding corporations that have achieved remarkable functionality and achievements throughout the year. Novoheart was very pleased that its innovative technologies had earned the popularity of Hong Kong’s business community.

Financial effects for the 3 and six months ended June 30, 2020

The Company recorded a net loss after tax of $1901944 (loss consistent with a consistent percentage of $0.01) for the 3 months ended June 30, 2020 at a net after-tax loss of $2582062 (loss consistent with a consistent percentage of $0.03) for the 3 months ended June 30, 2019. Since the beginning of the fiscal year, the Company recorded a net loss of $4,738,984 (loss consistent with a consistent percentage of $0.03) for the six months ended June 30, 2020, at a net loss of $3,761,260 (a loss consistent with a percentage of $0.04) for the six months ended June 30, 2019.

Revenue and sales

For the 3 months ended June 30, 2020, the Company posted earnings of $39,662 and a $17,683 sales charge compared to earnings of $51,821 and a sales fee of $24,620 for the 3 months ended June 30, 2019. The Company posted earnings $49,782 and sales charge of $21,537 for the six months ended June 30, 2020 compared to the $159,776 gain and sales charge of $73,743 for the six months ended June 30, 2019. As of March 2020, COVID-19 has an effect on that has many of the company’s partners. The effect continued to be felt through Novoheart and its partners throughout the 2020 quarter, leading to delays in the communication and execution of the contract.

Operating expenses

Operating expenses increased from $2,611,560 for the 3 months ended June 30, 2019 to $2,411,107 for the 3 months ended June 30, 2020. Minimization of operating expenses is primarily similar to depreciation, actions, overhead and administrative expenses, and new marketing. Minimization is offset by increases in study prices and the progression and rates of patents and high-level rates.

During the 3 months ended June 30, 2020, depreciation expenses decreased due to the cancellation of capitalized lease innovations in Phase 3 of the Hong Kong Science Park; in the past, capitalized leasing innovations have been eliminated to turn the area into a GMP-compliant facility. Share-based reimbursement expense decreased as the company’s maximum of the Company’s characteristics in past periods was acquired and accounted for. General and administrative expenses decreased mainly due to the expenses incurred in the comparative quarter that were not incurred in the current quarter; in particular, staff and pro-fee bonuses similar to the acquisition of Xellera Therapeutics Limited (“the acquisition”) in June 2019. Marketing expenses were basically reduced by the dismissal of the company’s former senior vice president of business operations.

For the 3 months ended June 30, 2020, study and progression expenses increased mainly due to the expansion of the Company’s clinical team and acquisition, which ended in June 2019. Intellectual assets and patent fees have increased due to the filing of new patents as well as licenses signed with Harvard University in November 2019.

Operating expenses increased from $4,351,365 for the six months ended June 30, 2019 to $5059,344 for the six months ended June 30, 2020 Increases in operating expenses are basically similar to general and administrative expenses, studies and development, as well as high-level expenses.and patent expenditures compared to the six months ended June 30, 2019.Accumulation was offset by decreases in depreciation and amortization, inventory reimbursement expenses, and marketing expenses.

The accumulation of overhead and administrative expenses for the semester ended June 30, 2020 is basically due to higher occupancy prices by laboratory and workplace prices and the structure of the GMP facility. Research and progression prices and high-level assets and patent rates increased in the six months ended June 30, 2020 for the same reasons discussed earlier for the quarter ended June 30, 2020.

The main reasons for minimizing depreciation, inventory reimbursement, and marketing expenses for the six months ended June 30, 2020 are the same reasons discussed earlier for the quarter ended June 30, 2020.

Liquidity and slope

As of June 30, 2020, the Company had money and monetary equivalents of $13236527. As of August 31, 2020, there were 188,640,774 non-unusual inventories issued and notable and 8,272,373 non-unusual inventories that can be issued by increasing notable inventory characteristics with a settlement value ranging from $0.32 to $0.50 consistent with the share.

Departure from the Chief Scientific Officer of Xellera Therapeutics Limited

During the last quarter of 2020, Dr. Roger Hajjar resigned as Chief Scientific Officer of Xellera Therapeutics Limited to hold a position at a personal equity firm specializing in clinical research. Dr. Hajjar, as XT CSO, made a significant contribution to the direction of clinical translation in the initial phase of plan development, i.e. in the gene therapy table, as the basis of XT. In the coming months, the focus will be on regulatory structure and licensing. All clinical questions will be shared through the Drs. Founders. Godfrey Chan and Ronald Li with contributions from the Co-Chairmen of the Scientific Advisory Council, Drs. Marc Turner and Paul Tam. The Society would like to thank Dr. Hajjar for his contribution during his term of office and to wish each and every one of them good luck in the future.

Departure from Novoheart Research Development Director

On July 31, 2020, Dr. Bernard Fermini, the company’s director of studies and development, resigned. Dr. Fermini hired to lend a hand to the drs. clinical co-founders. Kevin Costa and Ronald Li in studies and development. His daily work was transferred and controlled in component through the Drs. Costa and Li, who are also, respectively, lead clinical director and CEO of the company. The company would like to thank Dr. Fermini for his contribution while serving as Director of Research and Development.

ABOUT NOVOHEART HOLDINGS INC.

Novocenter is a global mobile stem biotechnology company that is at the forefront of a variety of next-generation human center fabric prototypes. It is the first company in the world to design miniature living human center pumps that can revolutionize drug discovery, saving time and money to expand new treatments. Also known as the ”human center in a bottle’, novocenter’s bio-artificial human center constructions are created using complex approaches and technologies of bioengineering and stem mobiles and are used through drug expanders for preclinical testing of the efficacy and protection of new drugs. maximize drug discovery successes while minimizing prices and harm to patients. With the acquisition of Xellera Therapeutics Limited for the manufacture of good Manufacturing Product (GMP) quality clinical materials, Novocenter now introduces genetic and mobile treatments as well as other next-generation treatments for cardiac repair or regeneration.

Novoheart’s non-unusual shares are traded on the TSX Venture Exchange under the symbol “NVH”.

For information, contact:

Novoheart Holdings Inc., office 2600, 595 Burrard Street, Vancouver, British Columbia V7X 1L3

Ronald Li, managing director

(604) [email protected]

Caution related to forward-looking statements

The data contained in this press release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements related to long- and long-term occasions. In this context, forward-looking statements relate to long-term monetary and commercial functionality and involve words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend” and “intend,” “statements that an action or occasion” possibly”, “” could “,” “”deserve “or” adopt “or” adopt “or happen, or other similar expressions.” All statements, other than statements of old facts, included there are, including, without limitation; Statements regarding the Company’s long-term plans, objectives and expectations, as well as the prospective programs of its MyHeart ™ platform, are forward-looking statements. By their nature, forward-looking statements involve known and unknown hazards, uncertainties, and other points that would possibly cause actual results, functionality, or other long-term achievements to differ materially from the results, functionality, or long-term accomplishments expressed or implied. through such forward-looking statements. These points include, among other things, the known hazards in the discussion and investigation segment of Novoheart Holdings Inc.’s intermediate and maximum annual monetary statements or other reports and presentations to the TSX Venture Exchange and the corresponding Canadian securities regulators. Forward-looking statements are made on the basis of management’s beliefs, estimates and reviews from the date the statements are made and the respective corporations adopt not to update any forward-looking statements that merit such beliefs, estimates and revisions or other exchange cases. unless necessary. applicable securities laws. Investors are cautioned to object to undue certainty in forward-looking statements.

NOVOHEART HOLDINGS INC. Condensed (unaudited) consolidated interim financial statements (expressed in Canadian dollars)

 

 

June 30, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

TRUMPS

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

Cash and money equivalents

 

Ps

13 236 527

 

Ps

12 167 583

 

Guaranteed deposit

 

 

 

 

5,004,000

 

Accounts and collections

 

 

82,236

 

 

317 819

 

Prepaid expenses and deposits

 

 

311392

 

475 638

 

 

 

 

13630 155

 

 

17,965,040

 

 

 

 

 

 

 

Property and equipment, net

 

 

691,083

 

 

532,589

 

Right-of-use assets

 

 

6,570,247

 

 

6,996,852

 

Intangible assets, net

 

 

199,599

 

 

231,052

 

Construction in progress

 

 

774,800

 

 

 

Goodwill

 

 

8,806,998

 

 

8,806,998

 

 

 

 

 

 

 

 

 

$

30,672,882

 

$

34,532,531

 

 

 

 

 

 

 

COMMITMENTS AND EQUITY

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

Accounts payable and accrued liabilities

 

$

833,339

 

$

921,672

 

Lease liabilities – current

 

 

1,298,489

 

 

1,124,678

 

Contract liabilities

 

 

34 130

 

 

22 549

 

Deferred grants

 

 

58,265

 

 

8 253

 

Due to similar parties

 

 

 

 

32 835

 

 

 

 

2,224,223

 

2 109 987

 

 

 

 

 

 

Rent – not current

 

 

5 036 241

 

 

5 555 838

 

Restoration fix

 

 

476,323

 

 

451937

 

Long-term leave payable

 

 

 

 

24 238

 

 

 

 

 

 

 

 

7 736 787

 

8 142 000

 

 

 

 

 

 

CAPITAL

 

 

 

 

Sharing capital

 

 

52 179 118

 

 

52 179 118

More contributions

 

 

2237 675

 

 

1,888,156

 

Cumulative others of the overall result

 

 

1 247 656

 

 

312 627

 

Cumulative deficit

 

 

(32 728 354

)

 

(27 989 370

)

 

 

 

22 936 095

 

 

26 390 531

 

 

 

 

 

 

 

 

Ps

30 672 882

 

Ps

34 532 531

 

NOVOHEART HOLDINGS INC.

Consolidated interim statements summarized of losses and general source of income (unaudited) (expressed in Canadian dollars, for the number of non-unusual shares)

 

 

 

It ended three months

Six months completed

 

 

 

June 30, 2020

 

 

June 30, 2019

 

 

June 30, 2020

 

 

June 30, 2019

 

 

 

 

 

 

 

 

Revenue

 

Ps

39 662

 

Ps

51,821

 

Ps

49 782

 

$

              159,776

 

The cost of sales

 

 

17,683

 

 

24,620

 

 

21 537

 

 

73 743

 

 

 

 

21 979

 

 

27 201

 

 

28 245

 

 

86 033

 

OPERATING COSTS

 

 

 

 

 

 

Research and development

 

 

773233

 

 

709039

 

 

1 498 650

 

 

1 241 717

 

Intellectual assets and patents

 

 

151820

 

 

105 731

 

 

305 591

 

 

168 124

 

General and administrative

 

 

1 648

 

 

1 235 148

 

 

2 445 491

 

 

1 812 283

 

Marketing

 

 

134 775

 

 

175 221

 

 

280 443

 

 

342 486

 

Share compensation

 

 

140 094

 

 

216 244

 

 

349 519

 

 

448 351

 

Depreciation and amortization

 

 

50 537

 

 

170 177

 

 

179650

 

 

338 404

 

 

 

 

2 411 107

 

 

2 611 560

 

 

5,059,344

 

 

4 351 365

 

LOSS OF OPERATIONS

 

 

(2 389 128

)

 

(2 584 359

)

 

(5031099

)

 

(4 265 332

)

 

 

 

 

 

 

 

Government subsidies

 

 

351111

 

 

79 602

 

 

405 352

 

 

543 929

 

Other income

 

 

260 283

 

 

223

 

 

335 841

 

 

410

 

Elimination of losses

 

 

(3 149

)

 

 

 

(188 841

)

 

 

Financial expenses

 

 

(117 659

)

 

(11 218

)

 

(225 564

)

 

(11 667

)

Change (loss) / gain

 

 

(3 402

)

 

(36 772

)

 

(500

)

 

938

 

 

 

 

487 184

 

 

31 835

 

 

326 288

 

 

533 610

 

 

 

 

 

 

 

 

NET LOSS OF THE PERIOD BEFORE TAXES

 

 

(1901944

)

 

(2 552 524

)

 

(4.704.811

)

 

(3 731 722

)

 

 

 

 

 

 

 

Tax expenses

 

 

3 794

 

 

29 538

 

 

34 173

 

 

29 538

 

 

 

 

 

 

 

 

NET LOSS OF THE PERIOD

 

 

(1905 738

)

 

(2 582062

)

 

(4 738 984

)

 

(3761260

)

 

 

 

 

 

 

 

OTHER GLOBAL INCOME (LOSSES)

 

 

 

 

 

 

Currency conversion adjustment

 

 

(618 616

)

 

66 393

 

 

935029

 

 

29 957

 

 

 

 

 

 

 

 

GLOBAL LOSS OF THE PERIOD

 

Ps

(2 524 354

)

Ps

(2 515 669

)

Ps

(3 803 955

)

Ps

(3 731 303

)

 

 

 

 

 

 

 

Percentage-consistent loss – fundamental and diluted

 

Ps

(0,01

)

Ps

(0,03

)

Ps

(0,03

)

Ps

(0,04

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Significant weighted average number of shares: fundamental and diluted

 

Ps

188 640 774

 

 

97 438 816

 

 

188 640 774

 

 

96014 445

 

 

 

 

 

 

 

NOVOHEART HOLDINGS INC.

Consolidated interim cash flow statements (unaudited) (expressed in Canadian dollars)

 

 

                                  

For the six months ended

 

 

June 30, 2020

 

 

June 30, 2019

 

 

 

 

 

CASH FLOW FROM OPERATIONS ACTIVITIES

 

 

 

Net loss for the after-tax period

 

Ps

(4 738 984

)

Ps

(3761260

)

Items that do not specify:

 

 

 

Share compensation

 

 

349 519

 

 

448 351

 

Interest on liabilities

 

 

225 564

 

 

 

Amortization of assets the right of use

 

 

804591

 

 

 

Depreciation and amortization

 

 

179650

 

 

338,404

 

Elimination of losses

 

 

188 841

 

 

 

Reduce rent due to rental concessions

 

 

(214 113

)

 

 

 

 

 

(3.204.932

)

 

(2 974 505

)

Changes in non-cash working capital elements:

 

 

 

Decrease in accounts and receivables

 

 

252 814

 

 

357 126

 

Decrease / (increase) in prepayment and deposits

 

 

182 733

 

 

(184 845

)

(Decrease) / accumulation of creditors and commissions payable

 

 

(120 878

)

 

411 158

 

Decrease in amounts owed to similar parties

 

 

(34 614

)

 

(2 231

)

Decreased long-term liabilities

 

 

(25 560

)

 

(39 256

)

Increase / (decrease) in deferred grants

 

 

49 595

 

 

(11 398

)

Increased contractual liabilities

 

 

7 917

 

 

475 590

 

 

 

 

312 007

 

 

1006 144

 

 

 

 

 

 

 

 

 

Net money used in operating activities

 

 

(2 892 925

)

 

(1968 361

)

 

 

 

 

CASH FLOWS FROM INVESTMENT ACTIVITIES

 

 

 

Acquisition of equipment

 

 

(454 376

)

 

(47 270

)

Acquisition of works in progress

 

 

(775 240

)

 

 

Cash in the acquisition of a subsidiary

 

 

 

 

22 692695

 

Decrease / (increase) in promised deposit

 

 

5 004 000

 

 

(5 028 000

)

 

 

 

 

Net money generated by investment activities

 

 

3 774 384

 

 

17 617 425

 

 

 

 

 

CASH FLOW FROM FINANCING ACTIVITIES

 

 

 

Loan product

 

 

 

 

1 688 417

 

Payment and interest on rent

 

 

(718 100

)

 

 

 

 

 

 

Net money (used in) / generated through financing activities

 

 

(718 100

)

 

1 688 417

 

 

 

 

 

Changes in money and monetary equivalents of the period

 

 

163,359

 

 

17 337 481

 

 

 

 

 

Effect of exchange rate adjustments on foreign currency cash

 

 

905 585

 

 

141 742

 

Cash and money equivalents, start of the period

 

 

12 167 583

 

 

666 494

 

 

 

 

 

Cash and money equivalents, end-of-period

 

 

13 236 527

 

 

18 717

 

 

 

 

 

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