Novoheart announced financial results for the three months ended September 30, 2017. Amounts, unless specified otherwise, are expressed in Canadian dollars and are in accordance with International Financial Reporting Standards (IFRS).
“This first quarter as a public company was very much about ensuring the long-term viability of Novoheart well into the future and I adamantly believe we accomplished this through several channels,” said Dr. Ronald Li, CEO of Novoheart. “The initial capital secured in the first quarter has allowed us to establish locations in both North America and Hong Kong, two locations that are critical for us to be active in. Furthermore, we have actively invested in infrastructure that will allow us to be at the forefront of innovation and further advance our commercial scalability in the near future.”
Financial Results for the First Quarter of 2018
The Company recorded net loss of C$6,272,569 (loss per share of C$0.09) for the three months ended September 30, 2017 compared to a net loss of C$436,122 (loss per share of C$36.85) for the three months ended September 30, 2016. The increase in net loss was due primarily to the completion of the reverse takeover transaction, for which the Company incurred a non-cash loss on completion of reverse takeover of $5,213,597.
Operating expenses for the first quarter of 2018 was C$1,083,466 compared to operating expense of C$495,024 for the first quarter of 2017. The increase in operating expenses is primarily related to an increase in intellectual property and patent expenses, and general and administrative expenses. The increase in intellectual property and patent expenses is due to fees incurred for the IP licensing agreements that the Company entered into in calendar year 2017. The increase in general and administrative expenses is primarily due to increases in professional and regulatory fees due to the reverse takeover listing as well as the increase in personnel costs resulting from the build-out of the Company’s management team.
The Company earned other income of C$56,809 in the three months ended Sept 30, 2018 compared to other income of C$66,963 in the three months ended Sept 30, 2017. Other Income is earned from the agreement with a global pharmaceutical partner.
Liquidity and Outstanding Share Capital
As at September 30, 2017, the Company had cash of C$6,954,574. The Company closed a subscription receipt offering for gross proceeds of C$7,150,000 in the first quarter of 2018. As at November 28, 2017, there were 93,462,018 common shares issued and outstanding, and 4,203,576 common shares issuable upon the exercise of outstanding stock options (of which none are exercisable) at an exercise price of C$0.50 per share. The Company also has 972,037 purchase warrants outstanding with an exercise price of C$0.50, expiring in September 2019.
For complete consolidated results please refer back to our Press Releases Section: http://www.novoheart.com/global/press/detail/17