? Maintained production operations during COVID-19 pandemic crisis, providing our customers essential products while ensuring the health and safety of our employees ?
? R&D activities focused on the development of innovative delivery systems ?
? First quarter 2020 sales increased 34% vs. first quarter 2019 ?
? Net profit of $1,126,000 for Q1 2020 vs. net loss of $637,000 for Q1 2019 ?
EDMONTON, Alberta, May 28, 2020 (GLOBE NEWSWIRE) -- Ceapro Inc. (TSX-V: CZO) ("Ceapro" or the "Company"), a growth-stage biotechnology company focused on the development and commercialization of active ingredients for healthcare and cosmetic industries, today announced financial results and operational highlights for the first quarter ended March 31, 2020.
"We are very pleased with the progress we have made on multiple fronts during the first quarter of this year, despite the COVID-19 pandemic crisis. While our first quarter financial results were very strong, our focus remains on the health and safety of our associates during these unprecedented times, followed by business continuity. These solid results are a clear testament to the dedication and hard work of every one of our employees during these challenging times and we are very proud of their commitment to support our customers heightened demand by delivering high quality products. Importantly, these results also reflect the sound foundation and the strength of our base business deliberately built over the last few years," stated Gilles Gagnon, M.Sc., MBA, President and CEO.
Corporate and Operational Highlights
Pipeline Development:
Technology:
Corporate:
Financial Highlights for the First Quarter Ended March 31, 2020
"As we respond to the potential impacts and uncertainties of COVID-19 by taking the necessary steps to preserve our financial position, we continue to execute on our transition to a new business model from a contract manufacturer to a biopharmaceutical company. We remain dedicated to executing on our milestones ahead and depending on the pandemic situation, look forward to what we believe will be an exciting year," concluded Mr. Gagnon.
CEAPRO INC. | ||
Consolidated Balance Sheets | ||
Unaudited | ||
March 31, | December 31, | |
2020 | 2019 | |
$ | $ | |
ASSETS | ||
Current Assets | ||
Cash and cash equivalents | 2,254,986 | 1,857,195 |
Trade receivables | 3,923,939 | 3,659,541 |
Other receivables | 70,888 | 46,812 |
Inventories (note 3) | 1,016,858 | 669,005 |
Prepaid expenses and deposits | 233,094 | 178,908 |
7,499,765 | 6,411,461 | |
Non-Current Assets | ||
Investment tax credits receivable | 607,700 | 607,700 |
Deposits | 85,755 | 85,755 |
Licences (note 4) | 20,736 | 21,477 |
Property and equipment (note 5) | 19,324,874 | 19,764,122 |
Deferred tax assets | 378,643 | 378,643 |
20,417,708 | 20,857,697 | |
TOTAL ASSETS | 27,917,473 | 27,269,158 |
LIABILITIES AND EQUITY | ||
Current Liabilities | ||
Accounts payable and accrued liabilities | 827,761 | 1,291,204 |
Current portion of long-term debt (note 6) | 63,899 | 111,865 |
Current portion of lease liabilities (note 7) | 268,611 | 265,123 |
Current portion of CAAP loan (note 9) | 75,677 | 72,942 |
1,235,948 | 1,741,134 | |
Non-Current Liabilities | ||
Long-term lease liabilities (note 7) | 2,707,152 | 2,775,627 |
CAAP loan (note 9) | 63,953 | 61,580 |
Deferred tax liabilities | 378,643 | 378,643 |
3,149,748 | 3,215,850 | |
TOTAL LIABILITIES | 4,385,696 | 4,956,984 |
Equity | ||
Share capital (note 8 (b)) | 16,503,089 | 16,401,677 |
Contributed surplus (note 8 (e)) | 4,642,226 | 4,650,090 |
Retained earnings | 2,386,462 | 1,260,407 |
23,531,777 | 22,312,174 | |
TOTAL LIABILITIES AND EQUITY | 27,917,473 | 27,269,158 |
CEAPRO INC. | ||||
Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) | ||||
Unaudited | ||||
2020 | 2019 | |||
Three Months Ended March 31, | $ | $ | ||
Revenue (note 15) | 4,273,374 | 3,196,930 | ||
Cost of goods sold | 1,901,223 | 1,840,298 | ||
Gross margin | 2,372,151 | 1,356,632 | ||
Research and product development | 502,542 | 800,504 | ||
General and administration | 865,034 | 733,019 | ||
Sales and marketing | 48,228 | 107,678 | ||
Finance costs (note 12) | 101,609 | 108,374 | ||
Income (loss) from operations | 854,738 | (392,943 | ) | |
Other income (expenses) (note 11) | 271,317 | (243,685 | ) | |
Income (loss) before tax | 1,126,055 | (636,628 | ) | |
Income taxes | - | - | ||
Total comprehensive income (loss) for the period | 1,126,055 | (636,628 | ) | |
Net income (loss) per common share (note 18): | ||||
Basic | 0.01 | (0.01 | ) | |
Diluted | 0.01 | (0.01 | ) | |
Weighted average number of common shares outstanding (note 18): | ||||
Basic | 77,538,314 | 77,046,786 | ||
Diluted | 77,880,861 | 77,046,786 | ||
CEAPRO INC. | ||||
Consolidated Statements of Cash Flows | ||||
Unaudited | ||||
2020 | 2019 | |||
Three Months Ended March 31, | $ | $ | ||
OPERATING ACTIVITIES | ||||
Net income (loss) for the period adjusted for non-cash and working capital items | 1,126,055 | (636,628 | ) | |
Adjustments for items not involving cash | ||||
Finance costs | 40,947 | 43,703 | ||
Transaction costs | 554 | 2,526 | ||
Depreciation and amortization | 460,088 | 456,209 | ||
Foreign exchange gain on long-term debt | - | (307 | ) | |
Accretion | 5,108 | 7,145 | ||
Share-based payments | 93,548 | 97,628 | ||
Net income (loss) for the period adjusted for non-cash items | 1,726,300 | (29,724 | ) | |
CHANGES IN NON-CASH WORKING CAPITAL ITEMS | ||||
Trade receivables | (264,398 | ) | 490,366 | |
Other receivables | (24,076 | ) | 11,515 | |
Inventories | (347,853 | ) | (257,846 | ) |
Prepaid expenses and deposits | (54,186 | ) | 46,008 | |
Accounts payable and accrued liabilities relating to operating activities | (463,443 | ) | 150,553 | |
Total changes in non-cash working capital items | (1,153,956 | ) | 440,596 | |
Net income (loss) for the period adjusted for non-cash and working capital items | 572,344 | 410,872 | ||
Interest paid | (40,947 | ) | (43,703 | ) |
CASH GENERATED FROM OPERATIONS | 531,397 | 367,169 | ||
INVESTING ACTIVITIES | ||||
Purchase of property and equipment | (20,099 | ) | (14,754 | ) |
Deposits relating to investment in equipment | - | (53,239 | ) | |
Accounts payable and accrued liabilities relating to investing activities | - | (3,458 | ) | |
CASH USED IN INVESTING ACTIVITIES | (20,099 | ) | (71,451 | ) |
FINANCING ACTIVITIES | ||||
Stock options exercised | - | 1,283 | ||
Repayment of long-term debt | (48,520 | ) | (164,963 | ) |
Repayment of lease liabilities | (64,987 | ) | (76,053 | ) |
CASH USED IN FINANCING ACTIVITIES | (113,507 | ) | (239,733 | ) |
Increase in cash and cash equivalents | 397,791 | 55,985 | ||
Cash and cash equivalents at beginning of the period | 1,857,195 | 1,844,134 | ||
Cash and cash equivalents at end of the period | 2,254,986 | 1,900,119 | ||
The complete financial statements are available for review on SEDAR at https://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00010110 and on the Company's website at www.ceapro.com.
About Ceapro Inc.
Ceapro Inc. is a Canadian biotechnology company involved in the development of proprietary extraction technology and the application of this technology to the production of extracts and "active ingredients" from oats and other renewable plant resources. Ceapro adds further value to its extracts by supporting their use in cosmeceutical, nutraceutical, and therapeutics products for humans and animals. The Company has a broad range of expertise in natural product chemistry, microbiology, biochemistry, immunology and process engineering. These skills merge in the fields of active ingredients, biopharmaceuticals and drug-delivery solutions. For more information on Ceapro, please visit the Company's website at www.ceapro.com.
For more information contact:
Jenene Thomas
JTC Team, LLC
Investor Relations and Corporate Communications Advisor
T (US): +1 (833) 475-8247
E: [email protected]
Issuer:
Gilles R. Gagnon, M.Sc., MBA
President & CEO
T: 780-421-4555
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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