Novoheart reports financial results for the three and six months ended December 31, 2017. Amounts, unless specified otherwise, are expressed in Canadian dollars and are in accordance with International Financial Reporting Standards (IFRS).
Financial Results for the Second Quarter of 2018
The Company recorded net loss of C$1,660,675 (loss per share of C$0.02) for the three months ended December 31, 2017 compared to a net loss of C$780,106 (loss per share of C$0.15) for the three months ended December 31, 2016. On a year-to-date basis, the Company recorded a net loss of C$7,933,244 (loss per share of C$0.15) for the six months ended December 31, 2017 compared to a net loss of C$1,216,229 (loss per share of C$0.23) for the six months ended December 31, 2016. The increase in net loss on a year-to-date basis 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 C$5,213,597.
Operating expenses for the second quarter of 2018 was C$1,737,289 compared to operating expense of C$867,165 for the second quarter of 2017. Operating expenses for the six months ended December 31, 2017 and 2016 were C$2,820,756 and C$1,362,190, respectively. 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 intellectual property licensing agreements that the Company entered into during 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 and the listing on the Frankfurt Stock Exchange, 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$53,856 and C$110,665 in the three and six months ended December 31, 2017 compared to other income of C$68,308 and C$135,271 in the three and six months ended December 31, 2017. Other Income is earned from the agreement with a global pharmaceutical partner. Work for the agreement was completed in December 2017.
Liquidity and Outstanding Share Capital
As at December 31, 2017, the Company had cash of C$4,723,926. As at February 26, 2018, there were 93,462,025 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.
Results of Annual General Meeting
Novoheart is pleased to announce the results of its annual general meeting of shareholders held on February 23, 2018.
The shareholders also approved all other matters proposed, including the appointment of KPMG LLP, Chartered Accountants as auditors of the Company for the ensuing year, the re-approval of the Company's stock option plan and the approval of the Company's restricted share unit plan (the "RSU Plan"), pursuant to which 2,803,860 shares are reserved for issuance. In combination, all share compensation arrangements of the Company, including the RSU Plan, will not exceed 10% of the issued and outstanding Common Shares. The RSU Plan remains subject to final acceptance by the TSX Venture Exchange.
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