Release – Axcella Reports Second Quarter Financial Results and Provides Business Update

Posted on August 12, 2022 by Admin

Axcella Reports Second Quarter Financial Results and Provides Business Update

Research, News, and Market Data on Axcella Therapeutics

August 12, 2022 at 7:30 AM EDT

Announced Statistically Significant Clinical
Improvement in Fatigue in the Phase 2A Long COVID Trial Topline data

NASH Trial interim Data
Expected in Late Q3 2022

Company to Host Conference Call
at 8:30 a.m. ET today

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Aug. 12, 2022– Axcella Therapeutics (Nasdaq: AXLA), a clinical-stage biotechnology company pioneering a new approach to treat complex diseases using multi-targeted endogenous metabolic modulator (EMM) compositions, today announced financial results for the second quarter ended
June 30, 2022 and provided a business update.

“Axcella has been a leader in clinical development in Long COVID. We continued this leadership through the second quarter as we advanced the development of our two clinical programs for AXA1125. Our Phase 2A trial of Long COVID in collaboration with
Oxford University
is now complete. The results were extremely encouraging and showed that administration of AXA1125 to patients significantly reduced mental and physical fatigue,” said Bill Hinshaw , President and Chief Executive Officer of Axcella. “Since reporting our data last week, we have received extremely positive feedback from our community of physicians and patients regarding their excitement about the further development of this therapeutic and its potential to benefit patients once it reaches the clinic. In addition, we continue to participate in investors meetings to get the story of the company out to the wider investment community.”

Financial Results

Cash Position: As of
June 30, 2022, cash, cash equivalents, and marketable securities totaled
$44.4 million
, compared to
$55.0 million
as of
December 31, 2021. In
March 2022, the Company received approximately
$25.0 million
in gross proceeds from a registered direct offering of common stock. Axcella expects that its current cash balance will be sufficient to meet its operating needs into the first quarter of 2023, provided that, if the Company is unable to satisfy the cash covenants contained in its loan and security agreement with SLR Investment Corp., and SLR Investment Corp. seeks immediate repayment of the loan in full, the Company believes that its cash and cash equivalents will be sufficient to fund its operations into the fourth quarter of 2022.

R&D Expenses: Research and development expenses for the quarter and six months ended
June 30, 2022 were
$16.9 million
and
$30.4 million
, respectively. Research and development expenses for the same periods ended
June 30, 2021 were
$10.3 million
and
$20.5 million
, respectively. These increases are the result of the Company’s EMMPACT and Long COVID Phase 2 clinical trials, as well as closure costs for its EMMPOWER Phase 2 clinical trial.

G&A Expenses: General and administrative expenses for the quarter and six months ended
June 30, 2022 were
$3.8 million
and
$8.5 million
, respectively. General and administrative expenses for the same periods ended
June 30, 2021 were
$4.9 million
and
$9.2 million
. These decreases are primarily the result of lower non-cash stock-based compensation expenses.

Net Loss: Net loss for the quarter and six months ended
June 30, 2022 was
$21.3 million
, or
$0.40 per basic and diluted share, and
$40.3 million
, or
$0.86 per basic and diluted share, respectively. This compares with a net loss of
$15.9 million
, or
$0.42 per basic and diluted share, and
$31.1 million
, or
$0.83 per basic and diluted share, for the quarter and six months ended
June 30, 2021.

Internet Posting of
Information

Axcella uses the “Investors and News” section of its website, www.axcellatx.com, as a means of disclosing material nonpublic information, to communicate with investors and the public, and for complying with its disclosure obligations under Regulation FD. Such disclosures include, but may not be limited to, investor presentations and FAQs,
Securities and Exchange Commission filings, press releases, and public conference calls and webcasts. The information that we post on our website could be deemed to be material information. As a result, we encourage investors, the media and others interested to review the information that we post there on a regular basis. The contents of our website shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

About Axcella
Therapeutics (Nasdaq: AXLA)

Axcella is a clinical-stage biotechnology company pioneering a new approach to treat complex diseases using compositions of endogenous metabolic modulators (EMMs). The company’s product candidates are comprised of EMMs and derivatives that are engineered in distinct combinations and ratios to restore cellular homeostasis in multiple key biological pathways and improve cellular energetic efficiency. Axcella’s pipeline includes lead therapeutic candidates in Phase 2 development for the treatment of Long COVID, and non-alcoholic steatohepatitis (NASH). The company’s unique model allows for the evaluation of its EMM compositions through non-IND clinical studies or IND clinical trials. For more information, please visit www.axcellatx.com.

Forward-Looking
Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding the timing of the company’s clinical trial data readouts, its expected cash runway and the potential impact of the company’s recent clinical trial data readouts on market interest and acceptance of the company’s product candidates and investment interest in the company’s securities. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, those related to the potential impact of COVID-19 on the company’s ability to conduct and complete its ongoing or planned clinical studies and clinical trials in a timely manner or at all due to patient or principal investigator recruitment or availability challenges, clinical trial site shutdowns or other interruptions and potential limitations on the quality, completeness and interpretability of data the company is able to collect in its clinical trials of AXA1125, other potential impacts of COVID-19 on the company’s business and financial results, including with respect to its ability to raise additional capital and operational disruptions or delays, changes in law, regulations, or interpretations and enforcement of regulatory guidance, whether data readouts support the company’s clinical trial plans and timing, clinical trial design and target indications for AXA1125, the clinical development and safety profile of AXA1125 and its therapeutic potential, whether and when, if at all, the company’s product candidates will receive approval from the FDA or other comparable regulatory authorities, potential competition from other biopharma companies in the company’s target indications, and other risks identified in the company’s
SEC filings, including Axcella’s Annual Report on Form 10-K, Quarterly Report on Form 10-Q and subsequent filings with the
SEC. The company cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. Axcella disclaims any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. Any forward-looking statements contained in this press release represent the company’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. The company explicitly disclaims any obligation to update any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220812005033/en/

Ashley Robinson arr@lifesciadvisors.com
(617) 430-7577

Source: Axcella Therapeutics

Is Index Fund Popularity Going to Cool-Off?

Posted on August 12, 2022 by Admin




Image Credit: Laura Pontiggia (Flickr)

Has the Bear Market Left a Permanent Mark on Indexed Investments?

As much as 25% of the S&P 500 index is comprised of only five stocks. Most active investors can guess them easily enough: Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN), Tesla (TSLA), and Alphabet (GOOG). As of the end of the second quarter (2022), 7.1% of the S&P 500 index was allocated to Apple alone. Funds that mimic indexes have done extraordinary up until now as the trend has been toward index investing. In the first quarter of this year alone, which includes IRA season, these funds took in $8.5 trillion in retail investments. According to Morningstar, this is more than all active management strategies combined. They have been the go-to investment idea for financial advisors and the way this generation has learned to think about investing.

What Might Change?

The persistent sell-off in the markets earlier this year, and the surprise geopolitical events, may cause investors to question if these funds are properly diversified. Even an allocation of 60% stocks and 40% bonds would place an investor’s exposure, using an S&P 500 fund, to nearly 5% of AAPL. Worse yet, the top five, comprising 25%, often trade in lock-step, both up and down.

They are, after all, the big guys. They certainly have the power to grow further but also much further to fall than most. Will recovering from the bear market, with lessons learned, cause the popularity of these funds to lessen? The funds were viewed as ideal diversifiers when they first gained popularity, but their own success, that is, the amount of money that poured into this good idea, has given them weaknesses. An unsettling weakness is much higher average valuations among holdings than stocks just outside of any large index.

History Until Now

The history of Index funds’ popularity is easy to understand. For financial advisors, they found it provided low-cost diversification for their clients. They got this by placing assets in an indexed ETF; as a bonus, they avoided what were then large transaction fees with individual stocks.

For most individual investors, transaction fees are no longer a barrier to personally managing accounts; the costs simply aren’t as high. For individual self-directed investors, buy-and-hold and diversification have been drilled into their heads. So these indexed funds easily accomplish this set-it and forget-it (buy and hold) position. But, the level of diversification isn’t what it once was, and investors forgo the nimbleness of taking individual stocks out of their portfolio or more heavily weighting better risk/reward alternatives.

For the fund managers themselves, especially those benchmarked off an index, no one can tell you you’re performance is horrible if it is in line with the index. It’s an easy job; just own the index in the same ratio the index weights the underlying stocks. With today’s computers, it is almost a back-office clerical function.

Lifecycle of Investment Products

But, like many products, they may have run their course, something better could replace them, or they more likely start to slide under the weight of their own success.

Index funds, especially those that mimic the large-cap Nasdaq100 or S&P 500, are in theory diversified as to names, but they are also capitalization weighted, which means even new money flows unevenly into the larger, more popular stocks. Over time, the combination of index fund popularity together with index construction favoring the more popular stocks has meant that more has flowed into fewer and fewer stocks. Therefore, capitalization-weighted equity indexing adds to the momentum of stocks that may not be worthy.

Much of this money might not otherwise be in these companies if not for the popularity of index funds and the self-perpetuating, dare I say bubble, that is the result of this setup.

According to an article in Barron’s this month, “The purveyors of indexes, being human, tend to make the concentration in a few expensive stocks even worse.” Barron’s wrote. The article then explains that the committee that oversees the S&P 500 has changed the make-up often, “and in the process tended to add stocks with price/earnings ratios more than twice that of those deleted.”

Are Investors Ready to Transition?

With more new money, in unfathomable amounts, reaching these funds each quarter and then being dispersed into the underlying stocks, weaker stocks fall even farther and strong stocks rise more than they may otherwise have risen. This undermines the efficient market theory as stocks that have sunk low enough to be worthwhile for many investors are not considered. The efficient markets theory is supposed to take into account all available information. Over the years, investors have set their portfolios on “in the market” or “out of the market,” with the market being one of the major indexes.

Could it be that as the market turns around and heads up, value hunters in individual stocks will lead, and indexes and index funds will not have as high relative performance?

Index funds, now that they have grown to the size they have, have developed other contradictions. Aside from ignoring the principle that the price paid represents a key determinant of long-term return, indexing ignores the flexibility to reward. Companies in an index that find themselves in trouble will keep receiving new money as investors add funds to their indexed accounts. This is without regard to how undeserving some companies in the fund are or whether they even will be in business in a year. In the meantime, companies not in the index find inclusion gets further out of reach.

Will Stock-Pickers Replace Index Funds?

In an ideal world, there is a selection of suitable products that all have similar results. For commuting, some take the bus to work, others drive, and still, others Zoom in. No one method of commuting is ideal for everyone. Those that wish to not worry about what many individual stocks are doing but instead concentrate on “the market” will keep adding money to these indexed products. Others that realize that they may be full of relatively expensive stocks will gravitate to old-fashioned stock selection – this time without all the commissions. And there will be those that keep their money in low-interest savings accounts that knowingly lose buying power to inflation.

The next “Apple stock” surely has more potential for growth than today’s top five stocks. Currently, the company may be just a hand full of people working out their idea from a handful of remote locations. Finding that company in the initial public offering stage (IPO) or after it has gone public is the dream of most active investors. It can’t be found in an indexed fund.

There is no functioning crystal ball, but there are resources, including no-paywall Channelchek to help investors quickly review data on over 6000 small and microcap companies. And access the same research professionals consult with before making decisions. In addition, Channelchek has helpful videos and articles sent to your inbox daily to alert you to new perspectives and actionable opportunities.

Sign-up
here.

Paul Hoffman

Managing Editor, Channelchek

Suggested Content

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Together, Self-Directed Investors own More Equities than Institutional – Will they Seize Control?

Sources

https://www.morningstar.com/articles/1087146/us-value-funds-beat-growth-in-the-first-quarter

https://www.barrons.com/articles/the-bear-market-could-finally-break-index-funds-51660287600?mod=hp_LEADSUPP_1

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Release – Alvopetro Announces Record Funds Flow from Operations for the Second Quarter of 2022 & Q2 Results Webcast

Posted on August 12, 2022 by Admin

Alvopetro Announces Record Funds Flow from Operations for the Second Quarter of 2022 & Q2 Results Webcast

Research, News, and Market Data on Alvopetro Energy

Aug 11, 2022

CALGARY, AB, Aug. 11, 2022 /CNW/ – Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces operating and financial results for the second quarter of 2022 including record funds flow from operations of $12.4 million. We will host a live webcast to discuss Q2 2022 results on Friday August 12, 2022 beginning at 8:00 am Mountain time.

All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.

Financial and Operating Highlights – Second Quarter of 2022

Daily sales averaged 2,359 boepd in Q2 2022, consistent with the Q2 2021 average of 2,361 boepd and a 6% reduction from the Q1 2022 average of 2,501 boepd as a result of a planned five-day shut-down of our gas processing facility to complete necessary work in advance of the facility expansion.
On February 1, 2022, our contracted natural gas price under our long-term gas sales agreement increased 48% to Brazilian real (“BRL”)1.94/m3. With all natural gas sales in Q2 2022 at this higher price and an appreciation of the BRL relative to the USD compared to Q2 2021, our average realized natural gas price increased to $11.90/Mcf compared to the Q2 2021 average price of $6.06/Mcf and the Q1 2022 average price of $10.03/Mcf. Higher commodity prices resulted in a 93% increase in our natural gas, condensate and oil revenue compared to Q2 2021.
With higher realized sales prices, our operating netback increased to $63.96 per boe in Q2 2022, an improvement of 103% from Q2 2021 and 19% from Q1 2022.
We generated cash flows from operating activities of $13.0 million ($0.38 per basic share and $0.35 per diluted share) and funds flows from operations of $12.4 million ($0.37 per basic share and $0.34 per diluted share), increases of $7.3 million and $7.0 million, respectively compared to Q2 2021.
We reported net income of $6.6 million, an increase of $2.8 million compared to Q2 2021.
Capital expenditures totaled $6.3 million, focused on drilling costs for our 182-C1 and 183-B1 wells, long lead purchases, final costs for our Murucututu field production facility installation on other development costs on our Murucututu project.
We repaid an additional $2.5 million of our credit facility, bringing the balance outstanding to $2.5 million. As at June 30, 2022, we had a net working capital surplus of $11.6 million, including $13.7 million in cash and cash equivalents. The Company’s working capital net of our credit facility balance improved to $9.1 million, compared to $7.3 million as of March 31, 2022.
Effective August 1, 2022 our natural gas price has been set at BRL1.94/m3 or $11.28/Mcf (based on our average heat content to date of 107% and the July 31, 2022 BRL/USD foreign exchange rate of 5.19). The adjusted price is based on the ceiling price in the contract, which was adjusted to $10.22/MMBtu effective August 1, 2022. While the ceiling price increased by 6% from the February 1, 2022 ceiling price, due to the appreciation of the BRL relative to the USD in the first half of 2022 compared to the latter half of 2021, the BRL denominated contractual price remained consistent. This price will be effective for all natural gas sales from August 1, 2022 to January 31, 2023.

The following table provides a summary of Alvopetro’s financial and operating results for three and six months ended June 30, 2022 and June 30, 2021. The consolidated financial statements with the Management’s Discussion and Analysis (“MD&A) are available on our website at www.alvopetro.com and will be available on the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.

	As at and Three Months EndedJune 30,			As at and Six Months EndedJune 30,
	2022	2021	Change (%)	2022	2021	Change (%)
Financial
*($000s, except where noted)*
Natural gas, oil and condensate sales	15,787	8,182	93	29,759	15,121	97
Net income – restated⁽¹⁾	6,631	3,784	75	17,746	2,837	526
Per share – basic restated ($)⁽¹⁾⁽²⁾	0.20	0.11	82	0.52	0.09	478
Per share – diluted restated ($)⁽¹⁾⁽²⁾	0.18	0.11	64	0.49	0.08	513
Cash flow from operating activities	12,997	5,665	129	21,330	9,969	114
Per share – basic ($)⁽²⁾	0.38	0.17	124	0.63	0.30	110
Per share – diluted ($)⁽²⁾	0.35	0.16	119	0.59	0.29	103
Funds flow from operations ⁽³⁾	12,434	5,471	127	23,338	10,227	128
Per share – basic ($)⁽²⁾	0.37	0.16	131	0.69	0.31	123
Per share – diluted ($)⁽²⁾	0.34	0.16	113	0.64	0.30	113
Dividends declared	2,728	–	–	5,444	–	–
Per share⁽²⁾	0.08	–	–	0.16	–	–
Capital expenditures	6,338	918	590	10,138	1,782	469
Cash and cash equivalents	13,672	4,249	222	13,672	4,249	222
Net working capital surplus ⁽³⁾	11,641	4,499	159	11,641	4,499	159
Working capital, net of debt (net debt)⁽³⁾	9,096	(3,046)	–	9,096	(3,046)	–
Weighted average shares outstanding
Basic (000s)⁽²⁾	33,973	33,265	2	33,941	33,250	2
Diluted (000s)⁽²⁾	36,637	34,339	7	36,426	34,075	7
Operations
Natural gas, NGLs and crude oil sales:
Natural gas (Mcfpd)	13,546	13,512	–	13,940	12,991	7
NGLs – condensate (bopd)	97	105	(8)	98	101	(3)
Oil (bopd)	5	5	–	8	2	300
Total (boepd)	2,359	2,361	–	2,429	2,269	7

Average realized prices⁽³⁾:
Natural gas ($/Mcf)	11.90	6.06	96	10.94	5.88	86
NGL – condensate ($/bbl)	121.93	74.47	64	114.11	69.65	64
Oil ($/bbl)	94.47	59.63	58	83.90	59.63	41
Company total ($/boe)	73.54	38.08	93	67.68	36.82	84

Operating netback ($/boe)⁽³⁾
Realized sales price	73.54	38.08	93	67.68	36.82	84
Royalties	(5.35)	(2.82)	90	(4.84)	(3.05)	59
Production expenses	(4.23)	(3.68)	15	(4.00)	(3.66)	9
Operating netback	63.96	31.58	103	58.84	30.11	95
Operating netback margin⁽³⁾	87 %	83 %	5	87 %	82 %	6

Notes:
(1)	The 2021 comparative periods in the table above have been restated. See “Restatement of the 2021 Comparative Period” section within the MD&A and Note 14 of the unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2022 for further details.
(2)	Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share.
(3)	See “Non-GAAP and Other Financial Measures” section within this news release.

Second Quarter 2022 Results Webcast

Alvopetro will host a live webcast to discuss Q2 2022 financial results at 8:00 am Mountain time on August 12, 2022. Details for joining the event are as follows:

Date: August 12, 2022Time: 8:00 AM Mountain/10:00 AM Eastern
Link: https://us06web.zoom.us/j/89887067576Dial-in
Numbers: https://us06web.zoom.us/u/kSVhrrkB0Webinar
ID: 898 8706 7576

The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com.

Corporate Presentation

Alvopetro’s updated corporate presentation is available on our website at: http://www.alvopetro.com/corporate-presentation.

Social Media

Follow Alvopetro on our social media channels at the following links:

Twitter – https://twitter.com/AlvopetroEnergy Instagram –
https://www.instagram.com/alvopetro/ LinkedIn –
https://www.linkedin.com/company/alvopetro-energy-ltd

Alvopetro Energy Ltd.’s vision is to become a
leading independent upstream and midstream operator in Brazil. Our
strategy is to unlock the on-shore natural gas potential in the state of Bahia
in Brazil,
building off the development of our Caburé natural gas field and our strategic
midstream infrastructure.

Neither the 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 news release.

All amounts contained in this new release are in United States dollars,
unless otherwise stated and all tabular amounts are in thousands of United States dollars,
except as otherwise noted.

Abbreviations:
boepd	=	barrels of oil equivalent (“boe”) per day
bopd	=	barrels of oil and/or natural gas liquids (condensate) per day
BRL	=	Brazilian Real
m³	=	cubic metre
Mcf	=	thousand cubic feet
Mcfpd	=	thousand cubic feet per day
MMcf	=	million cubic feet
MMcfpd	=	million cubic feet per day
NGLs	=	natural gas liquids
Q1 2022	=	three months ended March 31, 2022
Q2 2021	=	three months ended June 30, 2021
Q2 2022	=	three months ended June 30, 2022

Non-GAAP and Other Financial Measures

This news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company’s use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this report should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company’s reported financial performance or position. These are complementary measures that are used by management in assessing the Company’s financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the “Non-GAAP
Measures and Other Financial Measures” section of the Company’s MD&A which may be accessed through the SEDAR website at www.sedar.com.

Non-GAAP Financial Measures

Operating netback

Operating netback is calculated as natural gas, oil and condensate revenues less royalties and production expenses. This calculation is provided in the “Operating Netback” section of the Company’s MD&A using our IFRS measures. The Company’s MD&A may be accessed through the SEDAR website at www.sedar.com. Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.

Non-GAAP Financial Ratios

Operating netback per boe

Operating netback is calculated on a per unit basis, which is per barrel of oil equivalent (“boe”). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company’s producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (barrels of oil equivalent). This calculation is provided in the “Operating Netback” section of the Company’s MD&A using our IFRS measures. The Company’s MD&A may be accessed through the SEDAR website at www.sedar.com. Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations on a per unit basis (boe).

Operating netback margin

Operating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:


	Three Months EndedJune 30,		Six Months EndedJune 30,
	2022	2021	2022	2021
Operating netback – $ per boe	63.96	31.58	58.84	30.11
Average realized price – $ per boe	73.54	38.08	67.68	36.82
Operating netback margin	87 %	83 %	87 %	82 %

Funds Flow from Operations Per Share

Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by the weighted the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share is as follows:


	Three Months EndedJune 30,		Six Months EndedJune 30,
$ per share	2022	2021	2022	2021
Per basic share:
Cash flows from operating activities	0.38	0.17	0.63	0.30
Funds flow from operations	0.37	0.16	0.69	0.31

Per diluted share:
Cash flows from operating activities	0.35	0.16	0.58	0.29
Funds flow from operations	0.34	0.16	0.64	0.30

Capital Management Measures

Funds Flow from Operations

Funds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company’s ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:


	Three Months EndedJune 30,		Six Months EndedJune 30,
	2022	2021	2022	2021
Cash flows from operating activities	12,997	5,665	21,330	9,969
Add back changes in non-cash working capital	(563)	(194)	2,008	258
Funds flow from operations	12,434	5,471	23,338	10,227

Net Working Capital

Net working capital is computed as current assets less current liabilities. Net working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows:


	As at June 30,
	2022	2021
Total current assets	21,461	8,413
Total current liabilities	(9,820)	(3,914)
Net working capital surplus	11,641	4,499

Working Capital Net of Debt (Net Debt)

Working capital net of debt is computed as net working capital surplus decreased by the carrying amount of the Credit Facility. Working capital net of debt is used by management to assess the Company’s overall financial position. As of June 30, 2022, Alvopetro’s net working capital surplus exceeds the balance outstanding on the Credit Facility.


	As at June 30,
	2022	2021
Net working capital surplus	11,641	4,499
Credit Facility, balance outstanding	(2,545)	(7,545)
Working capital, net of debt (net debt)	9,096	(3,046)

Supplementary Financial Measures

“Average realized natural gas price – $/Mcf” is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company’s natural gas sales volumes.

“Average realized NGL – condensate price – $/bbl” is comprised of condensate sales as determined in accordance with IFRS, divided by the Company’s NGL sales volumes from condensate.

“Average realized oil price – $/bbl” is comprised of oil sales as determined in accordance with IFRS, divided by the Company’s oil sales volumes.

“Average realized price – $/boe” is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company’s total natural gas, condensate and oil sales volumes (barrels of oil equivalent).

“Royalties per boe” is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, condensate and oil sales volumes (barrels of oil equivalent).

“Production expenses per boe” is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, condensate and oil sales volumes (barrels of oil equivalent).

BOE Disclosure

The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this MD&A are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Forward-Looking Statements and Cautionary Language

This news release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words “will”, “expect”, “intend” and other similar words or expressions are intended to identify forward-looking information. Forward?looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning the plans relating to the Company’s operational activities, the expected natural gas price, gas sales and gas deliveries under Alvopetro’s long-term gas sales agreement, exploration and development prospects of Alvopetro, the expected timing of certain of Alvopetro’s testing and operational activities, future results from operations, and the Company’s plans for dividends in the future. The forward?looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to equipment availability, the timing of testing of the 182-C1 and the 183-B1 wells and the results from such testing, the timing of regulatory licenses and approvals, the success of future drilling, completion, testing, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of the COVID-19 pandemic and other significant worldwide events, the performance of producing wells and reservoirs, well development and operating performance, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our restated annual information form which may be accessed on Alvopetro’s SEDAR profile at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Alvopetro Energy Ltd.

Michael Burry Uses Twitter to Offer More Proof of His Theory

Posted on August 12, 2022 by Admin




Image(s): Wikimedia.org

Does Michael Burry Have a Problem with John Maynard Keynes?

There is no doubt that Dr. Michael J. Burry is familiar with Keynesian economics theory. Under the theory, the government should help control aggregate demand by infusing money into a weakening economy to create added demand or withdraw currency to reduce demand. But there is a caveat to this basic tenet of Keynes’ theory, and it seems Michael Burry, famous hedge fund manager at Scion Asset Management, has little patience for it.

Followers, both fans and haters, pay close attention to the tweets the Scion Asset Management founder often uses to share his thoughts. Burry’s tweets are usually deleted by him shortly after he sends to keep BOT benefactors down. So his Twitter account isn’t always the best place to see his thinking that is more than a few hours old.

What is Michael Burry is Saying

Burry’s recent tweets have indicated he believes retailers could cut prices to rid themselves of inventories caused by seasonal delivery inventory mismatches. Also, dwindling savings and soaring debt could spark a recession. He just offered more proof of his theory.

At about 4 am this morning (presumed Pacific time), Burry posted a Bloomberg chart on U.S. consumer credit use. The graph reaches back to 1991 and carries into the recent monetary policy tightening. Along with the chart, Burry tweeted, “Net consumer credit balances are rising at record rates as consumers choose violence rather than cut back on spending in the face of inflation. Remember the savings problem? No more. COVID helicopter cash taught people to spend again, and it’s addictive. Winter coming.

Source: @michaeljburry (Twitter)

When speaking of economic cycles, “winter” is often referred to as the downside of the cycle; there is death and dormancy among businesses in the winter. It’s miserable, but it leads to the spring part of the cycle with new growth. Translating further, if the consumers continue to buy, despite having an unsustainable ability to continue at the previous pace, a more violent winter may fall upon the economy.

The chart attached to the tweet shows the net change of consumer debt each month as recorded by the Federal Reserve. The historical average, including negative periods, is $27.5 billion. The current monthly pace is $27.5 billion.

Burry noted in May that American consumers, faced with rising food, fuel, and housing costs, were pulling from their incomes, racking up credit-card debt, and poised to virtually exhaust their savings by the end of 2022.

What Keynesian Theory Says

Keynesian economic theory says the government should help free markets when they are faltering by injecting cash. The cash will then spur aggregate demand for goods and services. And the government should also pull money from the system to reduce demand in an overheated situation. Having a smoothing hand, in addition to the free market’s invisible hand, could lead to a more balanced outcome and a more even keel.

The theory also recognizes that if additional money is put into consumers’ hands today that it works its way into the economy quickly. The U.S. experienced this a couple of years ago with stimulus checks that began stimulating right after being announced – even before distribution. However, if money is removed from the system, spending continues at the same pace for a while as consumer spending habits don’t back off the consumption gas pedal as quickly.

Most consumers are no longer receiving benefits doled out through the pandemic and are now confronted with rampant inflation. Yet, despite worsening cash flow and higher prices, they are consuming at the same level, making up the difference by pulling from savings and increasing debt. This is right in line with what John Maynard Keynes would expect. At least at the beginning.

Keynes would also expect a turn to more conservative spending eventually, currently, consumer tapering on spending is just beginning. And based on his theory, it will be followed by a reduction in consumption.

Is Burry at Odds with Keynes?

The short answer is what Burry has been bringing to investors’ attention is right in line with what Keynes, in 1936, said could be expected. Apparently, human nature related to consumption hasn’t evolved.

I am sure Dr. Burry understands that reactions when it comes to cutting back aren’t immediate. But what may frustrate him is that the markets (not the consumer) always take so long to spot what he is seeing. He has a habit of getting into trades much earlier than others. His expectations, more often than most, play out as he expects, with one exception. The exception is timing. Even in his famous “big short” of the mortgage market, he was a couple of years ahead on his credit default swap play. One can presume that he felt a good deal of pain as housing continued on its path for much longer than expected.

Practical Use

The central bank has to be out ahead of the economy when the pace is heating up because taking the proverbial “punch bowl” away doesn’t cause immediate sobriety. Burry predicted consumer spending would drop as a result of tightening and believes retailers will cut prices to lessen overstocking and badly timed inventories. This would help derail inflation and put pressure on retail and other earnings by Christmas. The tweeted chart of consumer debt above shows the “party” is still raging as the government-supplied punch bowl has been removed, but people are tapering by using their limited stash. When that stash taps out, there will be an abrupt end.

Earlier this week he tweeted about the turnaround in the stock market, specifically Nasdaq. He warned that the big-tech heavy index may be 20% off its low, but history indicates that this doesn’t mean that it can’t fall dramatically as it did seven times after 2000 when the dot-com bubble burst.

Source: @BurryArchive (Twitter)

Frustration is a common theme of his tweets. Some of the frustration is a lack of patience for things like the nuances of Keynesian economics and the overall behavioral patterns of investors across many asset classes.

Burry He also has asserted the pain for investors might not end until they swear off owning tech stocks, cryptocurrencies, and non-fungible tokens (NFTs). Referring to the latest w/streetbets “meme-stock” additions AMTD (HKD) (which rose 21,000%) and Magic Empire (MEGL) (which rose 2,000%) he recently complained that market “silliness” is back after the two IPOs skyrocketed.

Source: @BurryArchive (Twitter)

Take Away

An investor can be consistently right about the future direction of individual stocks or the markets. If they perceive what is going to happen to be timed much sooner than the other players, they will miss other opportunities, or more frustrating, lose patience with the position and get out of it before it becomes profitable.

In the book about Michale Burry’s housing crisis position, it took a long time for what he was certain to happen, to become reality. He lost a lot of investors in his funds while waiting for what he believed to be inevitable, played out. Classic economic theory tells us that we should expect delays in cause and effect. As investors, we need to remind ourselves if we are long-term and willing to ride out the ups and downs to stick to the plan. Or if we are more active, we may try to take advantage of shorter moves that may be against our overall thoughts on the long-term direction.

Follow Channelchek’s Twitter account and let us know under this article your overall thoughts on the market, and favorite small-cap stocks.

Paul Hoffman

Managing Editor, Channelchek

Suggested Content

Michael Burry is Predicting More Red

Is Michael Burry Frustrated that the Market Hasn’t Yet Crashed?

Are Consumer Price Increases Negatively Correlated to Stock Market Price Levels?

Cathie Wood’s Expectations for Inflation, Recession, Markets, China, and Jobs

Sources

https://twitter.com/BurryArchive/status/1557518533172477952/photo/1

https://twitter.com/BurryArchive/status/1557430160512524288

https://twitter.com/michaeljburry

W.
Carl Biven (1989). Who Killed John Maynard Keynes? Conflicts in The Evolution
of Economic Policy

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Release – Ocugen CEO to Present at H.C. Wainwright 2nd Annual Ophthalmology Virtual Conference

Posted on August 12, 2022 by Admin

Ocugen CEO to Present at H.C. Wainwright 2nd Annual Ophthalmology Virtual Conference

Research, News, and Market Data on Ocugen

August 12, 2022

MALVERN, Pa., Aug. 12, 2022 (GLOBE NEWSWIRE) — Ocugen, Inc. (“Ocugen” or the “Company”) (NASDAQ: OCGN), a biotechnology company focused on discovering, developing, and commercializing novel gene therapies, biologicals, and vaccines, announced that Dr. Shankar Musunuri, Chairman, Chief Executive Officer and Co-Founder of Ocugen, will deliver a virtual presentation at the
H.C. Wainwright 2 ^nd Annual Ophthalmology Virtual
Conference on August 17.

A video webcast of the presentation will be available on demand beginning at 7:00 a.m. ET on August 17, 2022 for those registered for the event and will be available on the events page of the Ocugen
investor site. The webcast replay will be archived for 90 days following the event.

About Ocugen, Inc.
Ocugen, Inc. is a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies and vaccines that improve health and offer hope for patients across the globe. We are making an impact on patient’s lives through courageous innovation—forging new scientific paths that harness our unique intellectual and human capital. Our breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with a single product, and we are advancing research in infectious diseases to support public health and orthopedic diseases to address unmet medical needs. Discover more at www.ocugen.com and follow us on Twitter and LinkedIn.

Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995, which are subject to
risks and uncertainties. We may, in some cases, use terms such as “predicts,”
“believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,”
“expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” or
other words that convey uncertainty of future events or outcomes to identify
these forward-looking statements. Such statements are subject to numerous
important factors, risks, and uncertainties that may cause actual events or
results to differ materially from our current expectations. These and other
risks and uncertainties are more fully described in our periodic filings with
the Securities and Exchange Commission (SEC), including the risk factors
described in the section entitled “Risk Factors” in the quarterly and annual
reports that we file with the SEC. Any forward-looking statements that we make
in this press release speak only as of the date of this press release. Except
as required by law, we assume no obligation to update forward-looking
statements contained in this press release whether as a result of new
information, future events, or otherwise, after the date of this press release.

Contact:
Tiffany Hamilton
Head of Communications
IR@ocugen.com

One Stop Systems (OSS) – Another Record Revenue Quarter

Posted on August 12, 2022 by Admin

Friday, August 12, 2022

One Stop Systems (OSS)
Another Record Revenue Quarter

One Stop Systems, Inc. (OSS) designs and manufactures innovative AI Transportable edge computing modules and systems, including ruggedized servers, compute accelerators, expansion systems, flash storage arrays, and Ion Accelerator™ SAN, NAS, and data recording software for AI workflows. These products are used for AI data set capture, training, and large-scale inference in the defense, oil and gas, mining, autonomous vehicles, and rugged entertainment applications. OSS utilizes the power of PCI Express, the latest GPU accelerators and NVMe storage to build award-winning systems, including many industry firsts, for industrial OEMs and government customers. The company enables AI on the Fly® by bringing AI datacenter performance to ‘the edge,’ especially on mobile platforms, and by addressing the entire AI workflow, from high-speed data acquisition to deep learning, training, and inference. OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2Q22 Results. One Stop Systems reported another record revenue quarter for 2Q22. Revenue of $18.3 million was up 23% y-o-y and above management’s $17.3 million guide. We had forecast $17.3 million. GAAP EPS of $0.02 per share versus $0.09 last year. Adjusted EPS of $0.04 per share versus $0.04 per share in 2Q21. We had forecast $0.03 and $0.05 respectively.

Disguise, Bressner Driving Results. Once again, OSS’s media and entertainment client, Disguise had a record revenue quarter for OSS, up 135% to $6.4 million, with strong virtual and large gathering revenues. Bressner revenue increased 31% y-o-y to $7.6 million, a record, driven by increased market share….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.

Release – (SHWZ) Schwazze Announces Second Quarter Results

Posted on August 11, 2022 by Admin

Schwazze Announces Second Quarter Results

Research, News, and Market Data on Schwazze

Record Quarterly Revenue and Adjusted EBITDA

Revenue Increases 44% to $44.3 Million Compared to $30.7 Million
in Q2 2021

Adjusted EBITDA of $15 Million, 33.9% of Revenue

Revised Guidance Driven by Short-Term, Challenging Colorado
Market Conditions
Q4 2022 Projected Revenue Annualized Run Rate: $175 Million – $200 Million
Q4 2022 Projected Adjusted EBITDA Annualized Run Rate: $60 Million – $72
Million

Conference Call & Webcast Scheduled for Today – 5:00 pm EDT

DENVER, Aug. 11, 2022 /PRNewswire/ – Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), today announced financial results for the second quarter ended June 30, 2022 (“Q2 2022”).

Q2 2022 Financial
Summary:

Revenues of $44.3 million increased 44% compared to $30.7 million in second quarter ended June 30, 2021 (“Q2 2021”)
Retail sales were $38.1 million up 77% when compared to Q2 2021
Gross Margin of $25.2 million was up 69% compared to $14.9 million in Q2 2021, this quarter was affected by $0.2M in purchase accounting
Net Income was $33.8 million compared to a Net Income of $4.4 million for the same period last year
Adjusted EBITDA of $15 million was 33.9% of revenue, compared to $10 million for the same period last year
Colorado two year stacked IDs for Q2 2022 compared to Q2 2021 and Q2 2020 for same store sales⁽¹⁾ were 1.8% and one year IDs⁽¹⁾ were (12.7%) comparing Q2 2022 to Q2 2021

Average basket size⁽¹⁾ for Q2 2022 was $59.98 down 4.1% compared to Q2 2021
Recorded customer visits⁽¹⁾ for Q2 2022 totaled 444,771 down 8.9%, compared to Q2 2021

New Mexico two year stacked IDs for Q2 2022 compared to Q2 2021 and Q2 2020 for same store sales⁽¹⁾ were 41.0% and one year IDs⁽¹⁾ were 30.4% comparing Q2 2022 to Q2 2021

Average basket size⁽¹⁾ for Q2 2022 was $54.56 down 12.7% compared to Q2 2021
Recorded customer visits⁽¹⁾ for Q2 2022 totaled 209,591 up 49.4%, compared to Q2 2021

Accomplishments
Since December 2021, Schwazze has closed acquisitions adding 15 cannabis dispensaries, 10 in New Mexico and five in Colorado as well as four cultivation facilities in New Mexico and one in Colorado and one manufacturing asset in New Mexico.

Closed Acquisition of Urban Health & Wellness Assets
Listed Common Stock on the NEO Exchange
Closed Acquisition of Brow 2 LLC Assets
Closed Acquisition of Emerald Fields
Added President of New Mexico Division
Closed New Mexico Acquisition, Becoming a Regionally Focused MSO
Added to Key Senior Leadership Team
Closed Acquisition of Drift Assets

Justin Dye, Chairman and CEO of Schwazze stated
, “Similar to the rest of the country, the cannabis industry in
Colorado is also experiencing a slowdown in growth compared to the last couple
of years. Schwazze, however, is demonstrating that our regional strategy, built
on a customer first approach, developing significant scale, building brands and
leveraging data analytics and technology is not only sound but gaining momentum
as demonstrated by revenue and unit sales growth, customer loyalty and by once
again outpacing the legacy market growth by approximately 12%. We believe
this model will travel well to other states as we find attractive
opportunities. Despite share price weakness driven by broader market
influences, we remain bullish on our business and have conviction that as
Schwazze continues to deliver superior operating results that our shareholders
will be rewarded.”

Justin continued, “As we look to
the future, we expect continued growth in Colorado and New Mexico through both
organic and inorganic means. Our operations continue to mature and gain
momentum, and we firmly believe that we are winning in our markets. Our team
will continue to focus on growing profitably and generating cash flow from
operations. When positive federal legislation is passed, Schwazze will be
well-positioned as a market leader to take advantage of banking services and
institutional investment.”

Q2 2022 Revenue
Revenues for the three months ended June 30, 2022, totaled $44.3 million, including (i) retail sales of $38.1 million (ii) wholesale sales of $6.1 million and (iii) other operating revenues of $43,750, compared to revenues of $30.7 million, including (i) retail sales of $21.5 million, (ii) wholesale of $9.2 million, and (iii) other operating revenues of $16,844 during the three months ended June 30, 2021, representing an increase of $13.5 million or 44%. This increase was due to increased sale of our products as well as execution of our growth through acquisition initiatives. In the second quarter of 2022, the Company acquired one additional retail dispensary, which generated additional retail revenue. Additionally, recreational marijuana sales became legal in New Mexico in April 2022, which increased sales volume and revenues in New Mexico. Wholesale revenues in Colorado decreased due to increased cultivation capacity in the state resulting in an over-supply of wholesale cannabis materials.

Cost of goods and services for the three months ended June 30, 2022, totaled $19.1 million compared to cost of services of $15.8 million during the three months ended June 30, 2021, representing an increase of $3.3 million or 21%. The increase in cost of goods is driven by the increase in revenue, however not at the same rate. In the quarter, the Company experienced a reduction in costs driven by vertical integration and third-party price negotiations.

Gross profit increased to $25.2 million for Q2 2022 compared to $14.9 million during the same period in 2021. Gross profit margin increased as a percentage of revenue from 48.5% to 56.8%, and net of purchase accounting, the gross margin increased to 57.4%. This positive result, net of purchase accounting continues to reflect our consolidated purchasing approach, the implementation of our retail playbook, and vertical product sales in New Mexico.

Operating expenses for the three months ended June 30, 2022, totaled $16.1 million, compared to operating expenses of $10.5 million during the three months ended June 30, 2021, representing an increase of $5.6 million or 54%. This increase is due to increased selling, general and administrative expenses, professional service fees, salaries, benefits, and related employment costs driven by growth from acquisitions.

Other income for the three months ended June 30, 2022, totaled $29.2 million compared to $0.2 million during the three months ended June 30, 2021, representing an increase in income of $29 million or 18,435%. The increase in other income is due to the revaluation of the derivative liability related to the Investor Notes, offset by higher interest payments.

The Company generated net income for the three months ended June 30, 2022, of $33.8 million, compared to net income of $4.4 million for the three months ended June 30, 2021.

Adjusted EBITDA for Q2 2022 was $15 million representing 33.9% of revenue, compared to $10 million and 32.6% of revenue for the same period last year. This is derived from Operating Income and adjusting one-time expenses, merger and acquisition and capital raising costs, non-cash related compensation costs, and depreciation and amortization. See the financial table for Adjusted EBITDA below adjustment for details.

For six months ending June 30, 2022, the Company used cash for operations of ($8.0) million compared to generating cash of $1.4 million for the same period in 2021. The Company has cash and cash equivalents of $33.9 million at the end of Q2 2022.

Nancy Huber, CFO for Schwazze commented, ”
During Q2 we focused on completing integration of our acquisitions and
made sure that we used our resources effectively. We are focused on reducing
operating and SG&A expenses and judiciously investing growth capital to
ensure adequate liquidity and profitability despite difficult market conditions
in Colorado, which we believe to be transitory and temporary. Our balance sheet
remains strong, and we have ample liquidity. We are focused on delivering
positive cash flow net of acquisition costs for the year while driving organic
growth and making smart acquisitions.”

2022 Guidance

The Company has revised its guidance for a fourth-quarter 2022 (Q4 2022) annualized run rate, which excludes transactions that are announced but not closed. Q4 2022 revenue annualized run rate is projected to be $175 million to $200 million, and the Q4 2022 adjusted EBITDA annualized run rate is projected to be from $60 million to $72 million.

NOTES:

(1) Schwazze did not own all the
assets and entities in part of 2021, 2020 and 2019 and is using unaudited
numbers for this comparison.

Adjusted EBITDA represents income (loss) from operations, as reported, before
tax, adjusted to exclude non-recurring items, other non-cash items, including
stock-based compensation expense, depreciation, and amortization, and further
adjusted to remove acquisition and capital raise related costs, and other
one-time expenses, such as severance, retention, and employee relocation. The
Company uses adjusted EBITDA as it believes it better explains the results of
its core business. The Company has not reconciled guidance for adjusted EBITDA
to the corresponding GAAP financial measure because it cannot provide guidance
for the various reconciling items. The Company is unable to provide guidance
for these reconciling items because it cannot determine their probable
significance, as certain items are outside of its control and cannot be
reasonably predicted. Accordingly, a reconciliation to the corresponding GAAP
financial measure is not available without unreasonable effort.

Webcast – August 11,
2022 – 5:00 PM EDT
Investors and stakeholders may participate in the conference call by dialing 416 764 8650 or by dialing North American toll free 1-888-664-6383 or listen to the webcast from the Company’s website at https://ir.schwazze.com The webcast will be available on the Company’s website and on replay until August 18, 2022, and may be accessed by dialing 1-888-390-0541 / # 575833

Following their prepared remarks, Chief Executive Officer, Justin Dye and Chief Financial Officer, Nancy Huber will answer investor questions. Investors may submit questions in advance or during the conference call itself through the weblink: https://app.webinar.net/lwXbZbBZmKN This weblink has been posted to the Company’s website and will be archived on the website. All Company SEC filings can also be accessed on the Company website at https://ir.schwazze.com/sec-filings

About Schwazze
Schwazze (OTCQX: SHWZ, NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious practices. Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

Forward-Looking
Statements
Such forward-looking statements may be preceded by the words “plan,” “will,” “may,” “continue,” “anticipate,” “become,” “build,” “develop,” “expect,” “believe,” “poised,” “project,” “approximate,” “could,” “potential,” or similar expressions as they relate to Schwazze. Forward-looking statements include the guidance provided regarding the Company’s Q4 2022 performance and annual capital spending. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and New Mexico and outside the states, (vii) our ability to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, (x) the timing and extent of governmental stimulus programs, (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws, and (xii) our ability to achieve the target metrics, including our annualized revenue and EBIDTA run rates set out in our Q4 2022 guidance. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

View original content to download multimedia:https://www.prnewswire.com/news-releases/schwazze-announces-second-quarter-results-301604597.html

SOURCE Schwazze

Released August 11,
2022

Release – Onconova Therapeutics Reports Second Quarter 2022 Financial Results and Provides Business Update

Posted on August 11, 2022 by Admin

Onconova Therapeutics Reports Second Quarter 2022 Financial Results and Provides Business Update

News and Market Data on Onconova Therapeutics

Conference call and live webcast at 4:30 p.m. ET today

NEWTOWN, Pa., Aug. 11, 2022 (GLOBE NEWSWIRE) — Onconova Therapeutics, Inc. (NASDAQ: ONTX), (“Onconova”), a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer, today announced financial results for the three months ended June 30, 2022, and provided a business update.

Highlights for the second quarter of 2022 and recent weeks include:

Safety data from the ongoing Phase 1 solid tumor trials of narazaciclib in the United States and China continue to be encouraging with the maximum tolerated dose not yet reached in either study. The trial in the United States is currently enrolling its fifth dose escalation cohort, with continuous dosing. The trial in China is also enrolling its fifth dose escalation cohort but once a day on days 1-21 of 28-day cycles. A protocol amendment to enable further dose escalation in the trial in China is being prepared.
Data from
in
vitro and cell-based assays that suggest narazaciclib’s inhibitory profile may provide safety and efficacy advantages over currently approved CDK4/6 inhibitors were featured in an abstract published at the American Society of Clinical Oncology (ASCO) Annual Meeting.
Each of rigosertib’s investigator-sponsored trials continues to progress. A Phase 2 trial evaluating rigosertib plus pembrolizumab in patients with checkpoint inhibitor refractory metastatic melanoma is on schedule to be initiated in the second half of 2022. The expansion cohort of the Phase 1/2a trial of rigosertib plus nivolumab in patients with KRAS-mutated non-small cell lung cancer continues to enroll patients, with additional data from the trial expected in Q3 2022. The Phase 2 trial of rigosertib monotherapy in advanced squamous cell carcinoma associated with recessive dystrophic epidermolysis bullosa also continues to enroll patients.
Mark Guerin was appointed Chief Operating Officer in addition to his role as Chief Financial Officer and Dr. Adar Makovski Silverstein was promoted to Senior Director and Head of Corporate Development.
Cash and cash equivalents at June 30, 2022 were $46.5 million, which the Company believes will be sufficient to fund ongoing clinical trials and business operations for at least eighteen months.

Management Commentary

“We saw sustained progress across our pipeline over the past months and are well positioned to complete our current Phase 1 trials as we move through the second half of the year,” said Steven M. Fruchtman, M.D., President and Chief Executive Officer of Onconova. “Narazaciclib continues to show a favorable safety profile in its Phase 1 studies, which will be key to informing the design of future trials seeking to address the unmet needs posed by the limitations of currently available CDK4/6 inhibitors. These limitations stem from issues related to safety, tolerability, and primary and acquired drug resistance, which we believe narazaciclib’s differentiated inhibitory profile may overcome. We were pleased to publish preclinical data supporting this hypothesis at the most recent ASCO meeting and look forward to continued efforts to translate these promising findings to the clinic.”

Dr. Fruchtman continued, “Alongside narazaciclib’s advancement, we also made key progress in rigosertib’s investigator-sponsored studies. This includes a Phase 2 trial evaluating rigosertib combined with a PD-1 checkpoint inhibitor in checkpoint inhibitor refractory metastatic melanoma which is on schedule to open for enrollment in the second half of 2022. This study seeks to leverage rigosertib’s immunomodulatory effects and is supported by initial data from the ongoing trial of rigosertib plus anti-PD-1 therapy in KRAS-mutated NSCLC. These data provided strong evidence of the studied doublet’s activity in patients who previously failed checkpoint inhibitor therapy, which is a finding we aim to build upon with the presentation of additional data at a medical meeting later this quarter. Data has been presented, which will be updated, demonstrating that responses seen with rigosertib in this setting are agnostic to the type of KRAS mutation present. This upcoming milestone highlights how rigosertib’s investigator-sponsored studies enable the capital efficient pursuit of value creating opportunities to complement our lead narazaciclib program.”

Second Quarter Financial Results

Cash and cash equivalents as of June 30, 2022, were $46.5 million, compared with $55.1 million as of December 31, 2021. The Company believes that its cash and cash equivalents will be sufficient to fund ongoing clinical trials and business operations for at least eighteen months.

Research and development expenses were $2.0 million for the second quarter of 2022, compared with $1.9 million for the second quarter of 2021.

General and administrative expenses were $2.1 million for the second quarter of 2022, compared with $2.9 million for the second quarter of 2021.

Net loss for the second quarter of 2022 was $4.0 million, or $0.19 per share on 20.9 million weighted shares outstanding, compared with a net loss of $4.2 million, or $0.27 per share for the second quarter of 2021 on 15.8 million weighted shares outstanding.

Conference Call and Webcast

Onconova will host an investment community conference call today beginning at 4:30 p.m. Eastern Time, during which management will discuss financial results for the second quarter of 2022, provide a business update, and answer questions. Interested parties can participate by dialing (800) 289-0571 (domestic callers) or (856) 344-9290 (international callers) and using conference ID 3600715.

A live webcast of the conference call will be available in the Investors & Media section of the Company’s website at www.onconova.com. A replay of the webcast will be available on the Onconova website for 90 days following the call.

About Onconova Therapeutics, Inc.

Onconova Therapeutics is a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer. The Company has proprietary targeted anti-cancer agents designed to disrupt specific cellular pathways that are important for cancer cell proliferation.

Onconova’s novel, proprietary multi-kinase inhibitor narazaciclib (formerly ON 123300) is being evaluated in two separate and complementary Phase 1 dose-escalation and expansion studies. These trials are currently underway in the United States and China.

Onconova’s product candidate rigosertib is being studied in an investigator-sponsored study program, including in a dose-escalation and expansion Phase 1/2a investigator-sponsored study with oral rigosertib in combination with nivolumab for patients with KRAS+ non-small cell lung cancer.

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

Forward-Looking Statements

Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. These statements relate to Onconova’s expectations regarding the timing of Onconova’s and investigator-initiated clinical development and data presentation plans, and the mechanisms and indications for Onconova’s product candidates. Onconova has attempted to identify forward-looking statements by terminology including “believes,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” “preliminary,” “encouraging,” “approximately” or other words that convey uncertainty of future events or outcomes. Although Onconova believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including the success and timing of Onconova’s clinical trials, investigator-initiated trials and regulatory agency and institutional review board approvals of protocols, Onconova’s collaborations, market conditions and those discussed under the heading “Risk Factors” in Onconova’s most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking statements contained in this release speak only as of its date. Onconova undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

Company Contact:
Mark Guerin
Onconova Therapeutics, Inc.
267-759-3680

ir@onconova.us
https://www.onconova.com/contact/

Investor Contact:
Bruce Mackle
LifeSci Advisors, LLC
646-889-1200

bmackle@lifesciadvisors.com

ONCONOVA
THERAPEUTICS, INC.

Condensed
Consolidated Balance Sheets

(in
thousands)

	*June 30*			*December 31,*
		*2022*			*2021*
*Assets*	(unaudited)
Current assets:
Cash and cash equivalents	$	46,533		$	55,070
Receivables		28			28
Prepaid expenses and other current assets		1,472			332
Total current assets		48,033			55,430
Property and equipment, net		31			38
Other non-current assets		10			10
Total assets	$	48,074		$	55,478

*Liabilities and stockholders’ equity*
Current liabilities:
Accounts payable	$	3,003		$	2,757
Accrued expenses and other current liabilities		3,231			3,132
Deferred revenue		226			226
Total current liabilities		6,460			6,115
Deferred revenue, non-current		3,130			3,243
Total liabilities		9,590			9,358

Stockholders’ equity:
Preferred stock		–			–
Common stock		209			209
Additional paid in capital		491,181			490,644
Accumulated other comprehensive loss		(41	)		(14	)
Accumulated deficit		(452,865	)		(444,719	)
Total stockholders’ equity		38,484			46,120
Total liabilities and stockholders’ equity	$	48,074		$	55,478

ONCONOVA
THERAPEUTICS, INC.

Condensed
Consolidated Statements of Operations

(in
thousands, except share and per share amounts)

	*Three Months Ended June 30,*						Six months months ended June 30,
		*2022*			*2021*			*2022*			*2021*

Revenue	$	57		$	57		$	113		$	113
Operating expenses:
General and administrative		2,139			2,850			4,325			5,067
Research and development		2,038			1,852			4,040			3,789
Total operating expenses		4,177			4,702			8,365			8,856
Loss from operations		(4,120	)		(4,645	)		(8,252	)		(8,743	)

Change in fair value of warrant liability		–			427			–			(209	)
Other income (loss,) net		96			(13	)		106			6
Net loss		(4,024	)		(4,231	)		(8,146	)		(8,946	)
Net loss per share of common stock, basic and diluted	$	(0.19	)	$	(0.27	)	$	(0.39	)	$	(0.59	)
Basic and diluted weighted average shares outstanding		20,904,085			15,780,863			20,904,085			15,201,719

Release – Lineage Cell Therapeutics Reports Second Quarter 2022 Financial Results and Provides Business Update

Posted on August 11, 2022 by Admin

Lineage Cell Therapeutics Reports Second Quarter 2022 Financial Results and Provides Business Update

Research, News, and Market Data on Lineage Cell Therapeutics

Advanced RG6501 (OpRegen^®)
Development in Partnership with Roche and Genentech
Published OPC1 Phase 1/2a Clinical Study
Results in Journal of Neurosurgery: Spine
Completed Key Activities to Support Planned
Regulatory Interactions for OPC1 and VAC2
Expanded Collaboration with Advanced BioMatrix
for HyStem^® Cell Drug Delivery Technology
Cash, Cash Equivalents, and Marketable
Securities of $72.0 Million as of June 30,
2022 Expected to Provide Capital Through Q2 2024

CARLSBAD, Calif.–(BUSINESS WIRE)–Aug. 11, 2022– Lineage Cell
Therapeutics, Inc. (NYSE American and TASE: LCTX), a clinical-stage biotechnology company developing allogeneic cell therapies for unmet medical needs, today reported financial and operating results for the second quarter of 2022. Lineage management will host a conference call and webcast today at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time to discuss its second quarter 2022 financial and operating results and to provide a business update.

“We are pleased with the progress on RG6501 (OpRegen) product development under our collaboration with Roche and Genentech. During the second quarter this year, we have made progress across multiple functional areas, including clinical, regulatory, and technology transfer activities,” stated Brian M. Culley, Lineage CEO. “As we continue to position Lineage as a leader in regenerative medicine through the transplant of specific cell types, our focus is on completing the necessary clinical, regulatory and related activities which can create value and reduce risk across our portfolio of five cell transplant assets. In particular, our efforts have been focused on preparing for OPC1 and VAC2 regulatory interactions to enable their next phases of clinical testing in spinal cord injury and oncology, respectively. In parallel, we are advancing our auditory neuron and photoreceptor programs through preclinical development activities which are necessary to support initial clinical testing. We believe our disciplined use of capital and our increased strategic business development activities can support multiple years of growth and the achievement of important milestones in the months and years to come.”

Second quarter milestones and activities included:

– RG6501 (OpRegen)

Continued execution under our collaboration with Roche and Genentech across multiple functional areas, including:
- Conducting additional OpRegen manufacturing runs and supporting Chemistry Manufacturing and Controls (CMC) activities.
- Continuing technology transfer activities.
- Actively participating in both Joint Advisory and Joint Manufacturing Committees, forums for discussion and planning with respect to next steps in clinical development and related activities.
Continuing long-term follow-up of patients from the Phase 1/2a clinical study of OpRegen:
- Enrolled patients have continued to do well, supporting multi-year durability of a treatment effect with RG6501 (OpRegen).

– OPC1

Results from a Phase 1/2a clinical study in subacute cervical spinal cord injury were
published in the
Journal of Neurosurgery: Spine;
- OPC1 has demonstrated an excellent safety profile, and at one-year post-treatment, 96% of patients had recovered one or more levels of neurological function on at least one side of their body, and 32% of patients had recovered two or more levels of neurological function on at least one side of their body.
Preclinical testing of a new thaw and inject formulation of OPC1, manufactured via an improved and larger-scale process, has demonstrated functional recovery, improvement in gait coordination and motor performance with a reduction of the area of cavitation.
A majority of the verification and validation activities for the novel parenchymal spinal delivery (PSD) system, and its preclinical testing in support of a regulatory submission have been completed.
Preclinical activities to support upcoming regulatory interactions are near completion.
Engagement with the California Institute of Regenerative Medicine (CIRM), as well as various patient advocacy organizations and patient advocates, is underway.

– VAC2

Following technology transfer of the program from Cancer Research UK (CRUK) to Lineage and improvement of manufacturing processes, production scale was increased and accordingly the cost of goods has been reduced significantly, along with marked improvements in the purity and functionality of the manufactured material.
CRUK continues to follow patients on the Phase 1 NSCLC clinical study; Lineage has received all necessary clinical information from CRUK required to support U.S., or other, regulatory interactions.

– ANP1 & PNC1

Preclinical activities are continuing, including thought leader engagement to support future preclinical testing.

– Business Development

Broadened collaboration with Advanced BioMatrix, a division of BICO Group AB (STO: BICO), for the HyStem delivery technology to include clinical/commercial GMP (Good Manufacturing Practice) material, increasing the milestone payments and royalty percentages due to Lineage upon ABM reaching certain development milestones and/or product sales.
Continued work under our collaboration with our strategic partner, Immunomic Therapeutics (“ITI”); currently awaiting decision on next steps for ITI’s allogeneic cell-based cancer immunotherapy for the treatment of glioblastoma based on the VAC platform.

Some of the key upcoming milestones and activities anticipated
by Lineage include:

– Planned interaction with FDA in Q4 2022 to discuss an OPC1 IND amendment submission to enable clinical performance and safety testing of a novel PSD system.

– A pre-IND regulatory interaction in Q4 2022 to seek feedback on a VAC2 CMC, nonclinical, and clinical package to support U.S. clinical development; pre-IND briefing package submission in Q3 2022.

– Submission of a grant application to the California Institute for Regenerative Medicine (CIRM) for the continued support of the clinical development of OPC1.

– Clinical data update from the ongoing VAC2 Phase 1 non-small cell lung cancer (NSCLC) study, pending release from CRUK.

– Preclinical activities for both the ANP1 and PNC1 programs.

– Additional OPC1 publications, including preclinical study results utilizing a new thaw and inject formulation of OPC1, manufactured via an improved and larger-scale process.

– An additional OPC1 manuscript from a Phase 1/2a clinical study in subacute cervical spinal cord injury, focused on MRI data.

– Evaluation of new partnership opportunities and/or expansion of existing collaborations.

– Continued participation in investor and partnering meetings and medical and industry conferences to broaden awareness of our mission and accomplishments.

Balance Sheet Highlights

Cash, cash equivalents, and marketable securities totaled $72 million as of June 30, 2022, which is expected to support operations through Q2 2024.

Second Quarter Operating Results

Revenues: Lineage’s revenue is generated primarily from licensing fees, royalties, collaboration revenues, and research grants. Total revenues for the three months ended June 30, 2022 were approximately $4.6 million, a net increase of $4.0 million as compared to $0.5 million for the same period in 2021. The increase was primarily related to licensing fees recognized from deferred revenues in connection with the $50.0 million upfront licensing payment received in the first quarter of 2022 from Roche.

Operating Expenses: Operating expenses are comprised of research and development (“R&D”) expenses and general and administrative (“G&A”) expenses. Total operating expenses for the three months ended June 30, 2022 were $8.6 million, an increase of $1.1 million as compared to $7.5 million for the same period in 2021.

R&D Expenses: R&D expenses for the three months ended June 30, 2022 were $3.3 million, a net increase of $0.4 million as compared to $2.9 million for the same period in 2021. The net increase was driven by $0.1 million in higher OpRegen related expenses to support the Roche Collaboration. Another $0.2 million and $0.1 million of the increase was related to R&D spending on the new auditory neuron and photoreceptor cell therapy programs, respectively.

G&A Expenses: G&A expenses for the three months ended June 30, 2022 were $5.3 million, a net increase of approximately $0.7 million as compared to $4.5 million for the same period in 2021. The increase was primarily attributable to $0.4 million in payroll and related benefits expense, and $0.5 million in share-based compensation, partially offset by $0.2 million in lower investor relations expense.

Loss from Operations: Loss from operations for the three months ended June 30, 2022 was $4.2 million, a decrease of $2.9 million as compared to $7.1 million for the same period in 2021.

Other Income/(Expenses), Net: Other income (expenses), net for the three months ended June 30, 2022 reflected other expense, net of ($2.5) million, compared to other income, net of $2.1 million for the same period in 2021. The net change was primarily driven by exchange rate fluctuations related to Lineage’s international subsidiaries, as well as a decrease in the value of marketable equity securities, and partially offset by the gain on extinguishment of debt from Lineage’s Paycheck Protection Program loan forgiveness recognized in the prior year’s quarter.

Net Loss Attributable to Lineage: The net loss attributable to Lineage for the three months ended June 30, 2022 was $6.8 million, or $0.04 per share (basic and diluted), compared to a net loss attributable to Lineage of $4.8 million, or $0.03 per share (basic and diluted), for the same period in 2021.

Conference Call and Webcast

Interested parties may access today’s conference call by dialing (800) 715-9871 from the U.S. and Canada and (646) 307-1952 from elsewhere outside the U.S. and Canada and should request the “Lineage Cell Therapeutics Call” or provide conference ID number 6448886. A live webcast of the conference call will be available online in the Investors section of Lineage’s website. A replay of the webcast will be available on Lineage’s website for 30 days and a telephone replay will be available through August 18, 2022, by dialing (800) 770-2030 from the U.S. and Canada and entering conference ID number 6448886.

About Lineage Cell Therapeutics, Inc.

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include five allogeneic (“off-the-shelf”) product candidates: (i) OpRegen, a retinal pigment epithelial cell therapy in development for the treatment of geographic atrophy secondary to age-related macular degeneration, is being developed under a worldwide collaboration with Roche and Genentech, a member of the Roche Group; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of acute spinal cord injuries; (iii) VAC2, a dendritic cell therapy produced from Lineage’s VAC technology platform for immuno-oncology and infectious disease, currently in Phase 1 clinical development for the treatment of non-small cell lung cancer; (iv) ANP1, an auditory neuronal progenitor cell therapy for the potential treatment of auditory neuropathy; and (v) PNC1, a photoreceptor neural cell therapy for the treatment of vision loss due to photoreceptor dysfunction or damage. For more information, please visit www.lineagecell.com or follow the company on Twitter @LineageCell.

Forward-Looking Statements

Lineage cautions you that all statements, other than statements of historical facts, contained in this press release, are forward-looking statements. Forward-looking statements, in some cases, can be identified by terms such as “believe,” “aim,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “can,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” “contemplate,” “project,” “target,” “tend to,” or the negative version of these words and similar expressions. Such statements include, but are not limited to, statements relating to: our ability to support our operations for at least two years with our existing cash, cash equivalents and marketable securities; our ability to create value and reduce risk across our portfolio; our ability to support multiple years of progress and achieve important milestones; our collaboration and license agreement with Roche and Genentech and the potential to receive milestone and other consideration thereunder; the potential benefits of treatment with OpRegen; the potential future achievements of our clinical and preclinical programs; the timing of anticipated FDA interactions, preclinical activities, clinical trials, and clinical data updates related to our programs, and the submission of a grant application to the CIRM; plans and expectations regarding publications relating to our programs; plans and expectations regarding potential new partnership opportunities and existing collaborations; our ability to broaden awareness of our mission and accomplishments; plans and expectations regarding our products in development. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Lineage’s actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements in this press release, including, but not limited to, the following risks: that we may need to allocate our cash to unexpected events and expenses causing us to use our cash more quickly than expected; that positive findings in early clinical and/or nonclinical studies of a product candidate may not be predictive of success in subsequent clinical and/or nonclinical studies of that candidate; that competing alternative therapies may adversely impact the commercial potential of OpRegen; that Roche and Genentech may not successfully advance OpRegen or be successful in completing further clinical trials for OpRegen and/or obtaining regulatory approval for OpRegen in any particular jurisdiction; that we may not establish new partnerships or expand existing collaborations; that we do not successfully broaden awareness of our mission or accomplishments; that Lineage may not be able to manufacture sufficient clinical quantities of its product candidates in accordance with current good manufacturing practice; and those risks and uncertainties inherent in Lineage’s business and other risks discussed in Lineage’s filings with the Securities and Exchange Commission (SEC). Lineage’s forward-looking statements are based upon its current expectations and involve assumptions that may never materialize or may prove to be incorrect. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. Further information regarding these and other risks is included under the heading “Risk Factors” in Lineage’s periodic reports with the SEC, including Lineage’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC and its other reports, which are available from the SEC’s website. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they were made. Lineage undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005126/en/

Lineage Cell Therapeutics, Inc. IR
Ioana C. Hone
(
ir@lineagecell.com)
(442) 287-8963

Russo Partners – Media Relations
Nic Johnson or David Schull
Nic.johnson@russopartnersllc.com
David.schull@russopartnersllc.com
(212) 845-4242

Source: Lineage Cell Therapeutics, Inc.

Inflationary and Deflationary Cryptocurrency Tokens

Posted on August 11, 2022 by Admin


Image Credit: SUN ZU Lab

What is Tokenomics and Why Does it Matter?

Tokenomics historical perspective. Let’s start this article with the famous experience of Philip II, King of Spain in the 16^th century, with the Eldorado discovery and the massive rise in inflation that followed throughout the entirety of Europe!

In the 16^th century, Spain conquered Latin America and discovered an immeasurable wealth within gold and silver mines. The kingdom hit the jackpot, and its financial deficits appeared long behind it. This wasn’t the case, nevertheless, the problem came from the fact that the Crown of Spain was over-indebted to many European creditors, leading the massive silver and gold discoveries to only make a quick passage through Spain before enriching the coffers of its French and Dutch neighbors. The European market ended up being flooded with coins so that the immense Spanish wealth was diminished relative to other European kingdoms.

In the end, the excessive amount of silver and gold imported, and above all distributed, in Europe caused an important devaluation of what Philip II could think of as his Eldorado. A better financial management could have allowed him to preserve his reserves of invaluable minerals and thus be able to develop on a more important scale of time his fabulous treasure.

This story shows the importance of the quantity put into circulation on the valuation of an asset. This analysis works perfectly for the cryptocurrency market as well; any analysis of an asset’s ecosystem requires careful attention to the notions of quantity in circulation, total quantity, and inflation management.

Inflation and the Importance of Tokenomics

While the media usually describes inflation as a rise in the price of everyday consumer goods, it is in reality, the value of money that tends to fall rather than prices getting higher. This notion of inflation is at the heart of tokenomics, a merger of “token” and “economics” used to refer to all the elements that make a particular cryptocurrency valuable and interesting to investors. In this regard, there exist two predominant models: deflationary and inflationary tokens.

The Limited Quantity Deflationary Model

This is the model used by Bitcoin, i.e. a fixed total supply and less and less money issued over time. Many cryptocurrencies are governed under this model, like Solana, Litecoin, Tron, and many others, alongside the king of cryptos.

In the case of Bitcoin, for example, a block is mined about every 10 minutes, rewarding the miner 6.25 BTC (when Bitcoin started it was 50 BTC per block, then 25, 12.5, 6.25, etc). The reward is halved every 210K blocks, leading to a halving every 4 years with the 10 minutes mining-time per block assumption. Without changes to the protocol, the final Bitcoin will be mined around the year 2140.

The Balanced Inflation Model

Many blockchains have been coded without incorporating a limited amount of token issuance. This choice can be made for a variety of reasons, usually involving the use to be made of the blockchain in question. The Ethereum protocol for example, operates under this model. However, some mechanisms are put in place to limit inflation or even to create a deflationary system.

This is the objective of the implementation of future updates of the Ethereum network: while the annual rate of ETH tokens issuance is currently equal to nearly 4.5%, the switch from Proof of Work to Proof of Stake should allow developers to reduce this rate to less than 1%. The network introduced as well a burn mechanism, meaning that part of the fees paid by Ethereum users in the future will not be returned to validators but will be removed altogether. This could not only achieve a balance with the issuance rate but potentially lead to a decrease in the number of tokens in circulation in case of high network usage.

Both models have their strengths and weaknesses, with good justifications behind their use. For example, the Ethereum white paper indicates that a stable issuance rate would prevent the excessive concentration of wealth in the hands of a few actors/validators. Whereas Bitcoin’s deflationary system, as previously stated, allowed for the growing development of its ecosystem by paying miners large amounts of Bitcoin when it was not worth the tens of thousands of dollars it is worth today.

More generally, it is always a good idea to look into a project’s tokenomics before getting involved. This can help answer questions like:

What is the current token supply as well as total supply?
Does the token have an inflationary or deflationary model?
What is the real-world use case?
Who owns the majority of coins? Is it well spread out or concentrated?

Main Differences Between Deflationary and Inflationary
Tokens

Solana Case Study

Let’s take a deep dive into one of the most prominent blockchains’ tokenomics. Solana has a native token called SOL that has two primary use cases within the network:

Staking: users can stake their SOL either directly on the network or delegate their holding to an active validator to help secure the network. In return, stakers will receive inflation rewards.

Transaction Fees: users can use SOL to pay fees related to transaction processing or running smart contracts.

The Solana team distributed tokens in five different funding rounds, four of which were private sales. These private sales began in Q1 2019 and culminated in a $20 million Series A led by Multicoin Capital, announced in July 2019. Additional participants included Distributed Global, BlockTower Capital, Foundation Capital, Blockchange VC, Slow Ventures, NEO Global Capital, Passport Capital, and Rockaway Ventures. The firms received SOL tokens in exchange for their investments, although the number of tokens allocated to investors was not disclosed.

The initial distribution of SOL tokens was as follows:

According to Messari data, vesting schedules were as follows: Solana’s three pre-launch private sales all came with a nine-month lockup after the network launched. The project’s public auction sale (held in March 2020) did not come with a lockup schedule, and the SOL tokens distributed in that sale were fully liquid once the network launched. The founder’s allocation (13% of the initial supply) was also subject to a nine-month lockup post-network launch. After the lockup period ends, these tokens will vest monthly for another two years (expected to fully vest by January 2023). This last clause is good protection for investors as team members’ tokens are locked up for a longer period. The Grant Pool and Community Reserve (both overseen by the Solana Foundation) contain ~39% of the initial SOL supply combined. These allocations began to vest in small amounts since Solana’s main net launch.

Inflation stands at an initial annual inflation rate of 8%. However, this inflation rate will decrease at an annual rate of 15% (“dis-inflation rate”). The inflation decrease is thus non-linear and much more important in the first years. Solana’s inflation rate will continue to decrease until it reaches an annual rate of 1.5%, which the network should reach in about ten years or 2031. 1.5% will remain the long-term inflation rate for Solana unless the network’s governance system votes to change it.

Source: docs.solana

Major identified issues with current projects’ tokenomics:

Is it Really that Decentralised?

Using the Solana example, we can see that more than 50% of the tokens in circulation are concentrated, during a long period after the project’s launch, in the hands of the core team, VCs and early investors. This is hardly an exception to Solana as similar distributions are very common within the blockchain ecosystem projects. Can we talk seriously about the benefits of blockchain decentralization with such capital and governance concentration without forgetting technical knowledge concentration as well?

What Happens After the End of the Lock-Up Period?

Blockchain projects often come with varying lock-up periods that can last from less than a year to five years for early investors and the founding team, who usually cash out their investments after this period. What we identify as a significant issue after the end of the lock-up period is the huge and asymmetric risk-return transfer between this first group, which realized a pretty good return on their initial investments and are completely de-risked at this stage, and retail investors joining the project at a stage where core decision-makers are no longer incentivized to ensure the well-functioning of the project.

What Rights for Token Investors?

Cryptocurrency projects often use ICOs (Initial Coin Offering), among other fundraising techniques, to raise funds through the issue of crypto-assets in exchange for either fiat currency or an established cryptocurrency like bitcoin or ether. The issuing entity usually accounts for digital assets collected as an intangible asset, or as a financial instrument in the case of stablecoins for example, as they are redeemable for cash. The accounting for tokens distributed on the other hand, depends on the promise given to investors under the terms of the ICO, which could include: free or discounted access to the entity’s goods or services for a specified or indefinite period of time; a share of the profits of the entity or access to an exchange through which it can transact with other users of the exchange in buying goods or services. Digital asset projects may also offer equity tokens, which are a type of security tokens that work more like a traditional stock asset, giving their holders some form of ownership in their investments. The use of these equity instruments remains restricted, nevertheless raising the question of the rights and guarantees given to retail investors in particular in exchange for the funds given to the cryptocurrency project.

VC Double-Dipping Practices

What we refer to as double-dipping practices, in this case, relates to VCs investing in cryptocurrency projects and realizing important capital gains on their equity shares as well as digital token holdings. This privilege is almost unique to the cryptocurrency ecosystem, raising some questions again about asymmetric information advantages against retail investors: compared to traditional VC funding, crypto VC investors enjoy a double economic as well as governance advantage, having control over token and equity.

Conclusion

Tokenomics is an important aspect of cryptocurrency, which covers almost anything to do with the token. Professional as well as retail investors should spend a lot of time studying a project’s tokenomics before investing to be well aware of the financial and governance rights attributed to them via the token purchase. There is an absolute need in our view for regulation on this particular topic to evolve in order to provide better transparency and, eventually, protection levels for investors.

This article was republished with permission from the SUN ZU Lab website. It was authored by Chadi El Adnani, Crypto
Research Analyst at SUN ZU Lab.

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Highlights and Outlook from OPEC’s August Report

Posted on August 11, 2022 by Admin




Image Credit: Kishjar (Flickr)

OPEC Sees a Better Balance of Supply and Demand in New Forecast

The Organization of Petroleum Exporting Nations (OPEC) released a 92-page report dated August 11, 2022, on the state of the global oil market. The topics include expected supply and demand balance shifts, global demand expectations, world economy expectations, and physical versus futures prices. The OPEC Monthly Oil Market Report suggests the cartel is not expecting to increase output.

Supply

The global oil supply has risen steadily over the past several months. This includes OPEC coordination with countries participating in the Declaration of Cooperation (DoC). However, ongoing low overall investment is limiting non-OPEC oil supply growth. Signs of slowing growth in the world economy and oil demand have been causing a better balance of output and consumption.

The oil market since the beginning of 2022 has been riddled with price volatility, this became much more pronounced after February 2022. The late winter imbalances were triggered by concerns in Eastern Europe. Sanctions on Russian oil by some major oil importing nations served to increase the premium that was built into crude prices. The sanctions led to significant changes to inter-regional trade flows. This raised supply concerns heading into the summer travel season.

The early summer was characterized by increased pressure on prices in most regions and soaring prices. This created a situation that resulted in crude differentials rising to record-high levels in 2Q22, along with steepening backwardation, a situation where physical oil is priced higher than futures contracts.

Demand

The OPEC report shows fundamentals in the physical oil market remain heightened, and volatility in the futures markets is reacting to expectations of lower GDP growth. Lower growth expectations are fed by rising worldwide inflation and the central banks’ reaction to slow economies.

Another factor impacting world demand is the US dollar’s value which strengthened further against major currencies. Oil is priced in US Dollars. Moreover, market price volatility contributed to reduced market liquidity, as seen in declining futures and options open interest in ICE Brent and NYMEX WTI dropped in July 2022 to the lowest since June 2015.

Source: OPEC Monthly Oil Market Report (August 2022)

Prices

Fuel prices surged in the first half of the year due to lower supplies amid refinery closures and a busy refinery turnaround season. The summer also ushered in stronger fuel consumption as pandemic-related travel restrictions were lifted in most regions. Adjustments to flow tied to the war in Eastern Europe further produced tightness. Combined, this all worked to push oil prices to record highs in June.

Jet fuel became the second strongest performer in the US product market. The product saw its price benefit from growing international air travel.

Prices peaked in June, with US gasoline reaching $193.06/b, up by $97.79/b, or 103%, y-o-y.

In July, rising refinery run rates reduced some of the tightness, mostly in US Gulf Coast (USGC), where product prices declined by $26.83/b, on average. In Europe, average prices declined the least, $20.24/b, m-o-m.

Looking Ahead

Refined product markets in the coming months are expected to experience seasonal support from transport fuels, while fuel sales could increase from the trend of moderating product prices.

Available refinery capacity will be helped by the operational ramp-up of at least two large capacity additions last year. These include the Middle East. The countries participating in the DoC will continue to monitor market developments and seek investment to help ensure adequate levels of capacity and bolster their efforts to maintain a stable oil market balance which is perceived to be in the interest of producers and consumers alike.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://momr.opec.org/pdf-download/

https://www.bloomberg.com/news/articles/2022-08-11/opec-sees-global-oil-market-tipping-into-surplus-this-quarter

https://www.investopedia.com/terms/b/backwardation.asp#:~:text=Key%20Takeaways,months%20through%20the%20futures%20market.

https://www.wsj.com/articles/opec-cuts-oil-demand-forecasts-as-economic-growth-slows-11660220861?mod=hp_lead_pos2

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Release – Direct Digital Holdings Reports Second Quarter 2022 Financial Results

Posted on August 11, 2022 by Admin

Direct Digital Holdings Reports Second Quarter 2022 Financial Results

Research, News, and Market Data on Direct Digital Holdings

HOUSTON, Aug. 11, 2022 /PRNewswire/ — Direct Digital Holdings, Inc. (Nasdaq: DRCT) (“Direct Digital” or the “Company”), a leading advertising and marketing technology platform through its operating companies Colossus Media, LLC (“Colossus Media”), Huddled Masses LLC (“Huddled Masses”) and Orange142, LLC (“Orange142”), today announced financial results for the second quarter ended June 30, 2022.

Mark Walker, Chairman and Chief Executive Officer of Direct Digital, commented, “We are pleased to report record revenue for the second quarter of 2022, demonstrating the strong growth driven by our business model. By focusing on expanding both of our impactful buy- and sell-side business segments, we have been able to expand our portfolio and client reach, delivering increased topline revenue, and consequently, overall growth in our adjusted EBITDA.”

Keith Smith, President of Direct Digital, added, “This quarter’s results are a testament to Direct Digital’s diverse and open digital marketplace business model. This, along with our supportive partner in Lafayette Square Loan Servicing, LLC, who has recently allowed us to extend our existing non-dilutive debt facility, has propelled the Company to exceptional results for the quarter, which we expect will provide us a strong remainder of the year. Consequently, Direct Digital will be raising guidance for full-year 2022.”

Second Quarter 2022 Financial Highlights:

Revenue increased to $21.3 million in the second quarter of 2022, an increase of $10.1 million, or up 90% over the $11.2 million in the same period of 2021.
- Sell-side advertising segment, consisting of the Colossus Media business, grew to $11.9 million and contributed $9.8 million of the increase, or up 477% over the $2.1 million in the same period of 2021.
- Buy-side advertising segment, consisting of the Huddled Masses and Orange142 businesses, grew to $9.3 million and contributed $0.2 million of the increase, or up 2% over the $9.1 million in the same period of 2021.
Operating income increased $0.6 million, up 22%, to $3.1 million for the second quarter of 2022, compared to income of $2.5 million in the same period of 2021. Operating income was impacted by approximately $0.7 million of public company related costs for the quarter.
Net income was $2.6 million in the second quarter of 2022, up 58%, compared to $1.7 million in the same period of 2021.
Adjusted EBITDA⁽¹⁾ increased 18% to $3.6 million in the second quarter 2022, compared to $3.0 million in the same period of 2021.
Net operating cash provided by operating activities for the six-months ended June 30, 2022 was $0.1 million, compared to a net operating cash of $2.6 million generated in the same period of 2021.

Business Highlights

For the second quarter ended June 30, 2022, Direct Digital processed approximately 98 billion monthly impressions through its sell-side advertising segment, an increase of 176% over the same period of 2021, with over 643 billion bid requests for the quarter.
In addition, the Company’s sell-side advertising platforms received over six billion bid responses, an increase of over 857% over the same period in 2021, through 88,000 buyers for the quarter.
The Company’s buy-side advertising segment served over 152 customers, an increase of 18% compared to the same period of 2021.

Financial Outlook

Direct Digital’s guidance assumes that the U.S. economy continues to recover, and there are no major COVID-19-related setbacks that may cause economic conditions to deteriorate or otherwise significantly reduce advertiser demand. Direct Digital plans to offer annual guidance and update it throughout the year. Accordingly, the Company estimates the following:

For fiscal year 2022, Direct Digital is raising expectations for guidance by approximately 40% to increase from a range of $48.0 million-$52.0 million to $70 million-$75 million, or up 113% year-over-year growth at the mid-point, while targeting an Adjusted EBITDA Margin in the double digits.

Conference Call and Webcast Details

Direct Digital will host a conference call on Thursday, August 11, 2022 at 5:00 p.m. Eastern Time to discuss the Company’s quarterly results. The live webcast and replay can be accessed at https://ir.directdigitalholdings.com/. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. For those who cannot access the webcast, a replay will be available at https://ir.directdigitalholdings.com/ for a period of twelve months following the live webcast.

Footnote

⁽¹⁾“Adjusted EBITDA” is a non-GAAP financial measure and Adjusted EBITDA Margin is an operating ratio derived from a non-GAAP financial measure. The section titled “Non-GAAP Financial Measures” below describes our usage of non-GAAP financial measures and provides reconciliations between historical GAAP and non-GAAP information contained in this press release.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and which are subject to certain risks, trends and uncertainties.

As used below, “we,” “us,” and “our” refer to Direct Digital. We use words such as “could,” “would,” “may,” “might,” “will,” “expect,” “likely,” “believe,” “continue,” “anticipate,” “estimate,” “intend,” “plan,” “project” and other similar expressions to identify forward-looking statements, but not all forward-looking statements include these words. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements.

All of our forward-looking statements involve estimates and uncertainties that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Our forward-looking statements are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, many factors could affect our actual operating and financial performance and cause our performance to differ materially from the performance expressed in or implied by the forward-looking statements, including, but not limited to: our dependence on the overall demand for advertising, which could be influenced by economic downturns; any slow-down or unanticipated development in the market for programmatic advertising campaigns; the effects of health epidemics, such as the ongoing global COVID-19 pandemic; operational and performance issues with our platform, whether real or perceived, including a failure to respond to technological changes or to upgrade our technology systems; any significant inadvertent disclosure or breach of confidential and/or personal information we hold, or of the security of our or our customers’, suppliers’ or other partners’ computer systems; any unavailability or non-performance of the non-proprietary technology, software, products and services that we use; unfavorable publicity and negative public perception about our industry, particularly concerns regarding data privacy and security relating to our industry’s technology and practices, and any perceived failure to comply with laws and industry self-regulation; restrictions on the use of third-party “cookies,” mobile device IDs or other tracking technologies, which could diminish our platform’s effectiveness; any inability to compete in our intensely competitive market; any significant fluctuations caused by our high customer concentration; any violation of legal and regulatory requirements or any misconduct by our employees, subcontractors, agents or business partners; any strain on our resources, diversion of our management’s attention or impact on our ability to attract and retain qualified board members as a result of being a public company; our dependence, as a holding, of receiving distributions from Direct Digital Holdings, LLC to pay our taxes, expenses and dividends; and other factors and assumptions discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” and other sections of our filings with the SEC that we make from time to time. Should one or more of these risks or uncertainties materialize or should any of these assumptions prove to be incorrect, our actual operating and financial performance may vary in material respects from the performance projected in these forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and except as required by law, we undertake no obligation to update any forward-looking statement contained in this release to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

About Direct Digital Holdings
Direct Digital Holdings, Inc. (Nasdaq: DRCT), through its operating companies Colossus Media, LLC, Huddled Masses LLC and Orange142, LLC, brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. Direct Digital Holdings’ sell-side platform, Colossus Media, LLC, offers advertisers of all sizes extensive reach within general market and multicultural media properties. The company’s subsidiaries Huddled Masses LLC and Orange142, LLC deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare to travel to financial services. Direct Digital Holdings, Inc’s sell- and buy-side solutions manage approximately 88,000 clients monthly, generating over 98 billion impressions per month across display, CTV, in-app and other media channels. The company has been named a top minority-owned business by The Houston Business Journal.

View original content to download multimedia, including tables:https://www.prnewswire.com/news-releases/direct-digital-holdings-reports-second-quarter-2022-financial-results-301604344.html

SOURCE Direct Digital Holdings

Released
August 11, 2022

Release – InPlay Oil Corp. Announces Second Quarter 2022 Financial and Operating Results Highlighted by Record Quarterly Production and Financial Results, and a Fully Conforming and Increased Credit Facility

Posted on August 11, 2022 by Admin

InPlay Oil Corp. Announces Second Quarter 2022 Financial and Operating Results Highlighted by Record Quarterly Production and Financial Results, and a Fully Conforming and Increased Credit Facility

News and Market Data on InPlay Oil Corp

August 11, 2022 08:00 ET | Source: InPlay Oil Corp.

CALGARY, Alberta, Aug. 11, 2022 (GLOBE NEWSWIRE) — InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) (“InPlay” or the “Company”) announces its record setting financial and operating results for the three and six months ended June 30, 2022. InPlay’s condensed unaudited interim financial statements and notes, as well as Management’s Discussion and Analysis (“MD&A”) for the three and six months ended June 30, 2022 will be available at “www.sedar.com” and our website at “www.inplayoil.com”. Our updated corporate presentation will also soon be available on our website.

Second Quarter 2022 Financial & Operating Highlights

Achieved record average quarterly production of 9,063 boe/d⁽¹⁾ (57% light crude oil and NGLs), an increase of 68% from second quarter production in 2021 of 5,386 boe/d⁽¹⁾ (68% light crude oil and NGLs) and an increase of 10% compared to our previous record of 8,221 boe/d
⁽¹⁾ (59% light crude oil and NGLs) in the first quarter of 2022. Average production per weighted average basic share increased 32% compared to the second quarter of 2021 (43% on a debt adjusted⁽⁴⁾ basis) and 10% compared to the first quarter of 2022 (17% on a debt adjusted basis).
Generated record quarterly adjusted funds flow (“AFF”)⁽²⁾ of $40.9 million ($0.47 per weighted average basic share⁽³⁾), an increase of 398% compared to $8.2 million ($0.12 per weighted average basic share) in the second quarter of 2021 and an increase of 39% compared to $29.4 million ($0.34 per weighted average basic share) in the first quarter of 2022, our prior record quarter.
Increased operating netbacks⁽⁴⁾ by 84% to $61.02/boe from $33.09/boe in the second quarter of 2021 and by 32% compared to $46.06/boe in the first quarter of 2022, our prior record quarter.
Realized quarterly record operating income⁽⁴⁾ and operating income profit margin⁽⁴⁾ of $50.3 million and 71% respectively compared to $16.2 million and 64% in the second quarter of 2021; $34.1 million and 65% in the first quarter of 2022, our prior record quarter.
Reduced operating expenses to $12.28/boe compared to $12.51/boe in the second quarter of 2021 and $12.96/boe in the first quarter of 2022, despite rising costs of services in the industry.
Generated free adjusted funds flow (“FAFF”)
⁽⁴⁾ of $23.1 million, a quarterly record for the Company, resulting in a 31% reduction to net debt from March 31, 2022.
Achieved a quarterly annualized net debt⁽²⁾ to earnings before interest, taxes and depletion (“EBITDA”)⁽⁴⁾ ratio of 0.3x, compared to 1.9x in the second quarter of 2021 and 0.6x in first quarter of 2022 and a trailing twelve month net debt to EBITDA ratio of 0.5x to June 30, 2022.
Realized net income of $29.0 million ($0.33 per basic share; $0.32 per diluted share).

Financial and Operating Results:

(CDN) ($000’s)	Three months ended June 30				Six months ended June 30
	2022		2021		2022		2021
Financial
Oil and natural gas sales	71,287		25,267		123,444		45,268
Adjusted funds flow⁽²⁾	40,922		8,219		70,303		14,324
Per share – basic⁽³⁾	0.47		0.12		0.81		0.21
Per share – diluted⁽³⁾	0.45		0.12		0.77		0.21
Per boe⁽³⁾	49.62		16.77		44.93		15.29
Comprehensive income	29,032		59,127		47,808		51,591
Per share – basic	0.33		0.87		0.55		0.76
Per share –diluted	0.32		0.85		0.53		0.75
Capital expenditures – PP&E and E&E	17,850		4,744		39,413		16,954
Property acquisitions (dispositions)	–		(101	)	(1	)	(82	)
Corporate acquisitions	(20	)	–		411		–
Net debt⁽²⁾	(50,473	)	(76,113	)	(50,473	)	(76,113	)
Shares outstanding	87,138,301		68,288,616		87,138,301		68,288,616
Basic weighted-average shares	86,873,664		68,259,781		86,662,821		68,258,207
Diluted weighted-average shares	91,282,528		69,187,825		90,913,356		68,687,889

Operational
Daily production volumes
Light and medium crude oil (bbls/d)	3,865		2,942		3,719		2,804
Natural gas liquids (bbls/d)	1,333		730		1,320		765
Conventional natural gas (Mcf/d)	23,191		10,286		21,631		9,643
Total (boe/d)	9,063		5,386		8,644		5,177
Realized prices⁽³⁾
Light and medium crude oil & NGLs ($/bbls)	116.74		66.46		107.48		61.29
Conventional natural gas ($/Mcf)	7.61		3.27		6.49		3.25
Total ($/boe)	86.44		51.55		78.90		48.31
Operating netbacks ($/boe)⁽⁴⁾
Oil and natural gas sales	86.44		51.55		78.90		48.31
Royalties	(11.90	)	(4.83	)	(11.13	)	(3.85	)
Transportation expense	(1.24	)	(1.12	)	(1.22	)	(1.03	)
Operating costs	(12.28	)	(12.51	)	(12.60	)	(13.40	)
Operating netback	61.02		33.09		53.95		30.03
Realized (loss) on derivative contracts	(6.77	)	(9.39	)	(3.95	)	(8.16	)
Operating netback (including realized derivative contracts)	54.25		23.70		50.00		21.87

Second Quarter 2022 Financial & Operations Overview:

Production averaged 9,063 boe/d⁽¹⁾ (57% light crude oil & NGLs) of sales in the second quarter of 2022, not including over 5,000 bbls of light crude oil inventory build (equal to over 55 bbls/d during the quarter) that was not sold due to difficulty trucking oil as a result of wet weather at the end of June. NGL’s were slightly lower than expected in the quarter due to certain third party facilities having leaner liquids cuts in the quarter. Production increased by 68% compared to 5,386 boe/d⁽¹⁾ (68% light crude oil & NGLs) in the second quarter of 2021 and 10% compared to 8,221 boe/d⁽¹⁾ (59% light crude oil & NGLs) in the first quarter of 2022. This resulted in a quarterly record $40.9 million of AFF generated during the second quarter of 2022 and $23.1 million in FAFF which reduced net debt levels by 31% from March 31, 2022 to $50.5 million at June 30, 2022. Liquidity ratios to the end of the quarter improved significantly resulting in a quarterly annualized net debt to EBITDA ratio of 0.3x and a trailing twelve month net debt to EBITDA ratio of 0.5x to June 30, 2022.

InPlay’s capital program for the second quarter of 2022 consisted of $17.8 million of capital expenditures. During the quarter, InPlay drilled three (3.0 net) 1.5 mile Extended Reach Horizontal (“ERH”) wells in Pembina which were completed and tied in and came on production at the end of May. The Company also finished the drilling operations of an additional two (1.9 net) 2 mile ERH wells in Willesden Green. Completions of these wells was delayed due to the wet weather in June but have now been completed and are in the early cleanup phase. Construction of a modular multi-well facility in Willesden Green began during the quarter to accommodate current and future drilling in the area.

As a result of using a consistent drill crew since the beginning of the year and exceptional project execution, the two 2 mile ERH wells in Willesden Green were drilled in 10.3 and 10.7 days respectively, which were among the fastest drilling operations for 2 mile wells in the area. In comparison to the last 2 mile wells drilled by the Company in Willesden Green in 2018, drilling times improved by approximately 20% which is a positive result for the Company and is an example of InPlay’s continuous drive to achieve operational efficiencies.

Efficient field operations and increased production levels resulted in the Company achieving lower operating expenses of $12.28/boe compared to $12.51/boe in the second quarter of 2021 and $12.96/boe in the first quarter of 2022. This is a significant achievement given the inflationary pressures and supply chain disruptions facing our industry. The resulting operating income and operating income profit margin for the second quarter of 2022 were quarterly records for the Company at $50.3 million and 71% respectively.

Credit Facilities

InPlay is pleased to announce that it has entered into an amended credit facility with its first-lien and second-lien lenders resulting in a fully conforming revolving credit facility with an increased total lending capacity and borrowing base of $110 million. InPlay’s credit facility is now comprised of a $100 million revolving credit facility and a $10 million operating line of credit (together, the “Credit Facility”). The term out date of the Credit Facility has been extended to May 30, 2023 with a maturity date of May 30, 2024. As part of the renegotiated Credit Facility, the Company’s previously outstanding $25 million term facility with the Business Development Bank of Canada (“BDC”) and the remaining $14 million of its senior term facility have been repaid.

InPlay is also pleased to announce that Canadian Western Bank (“CWB”) and BDC have joined ATB Financial as members of the amended Credit Facility syndicate.

The outcome of the Credit Facility redetermination is an extremely positive result for the Company and is anticipated to reduce overall interest costs and provide InPlay with a stable liquidity position.

Outlook

The Company’s strategy has been focused on delivering measured but top-tier production growth amongst our light oil peers while seeking to maximize FAFF which has been used to reduce debt and leverage ratios. Results from our high quality asset base has allowed us to exceed our expectations with production growth per share of 32% (43% on a debt adjusted per share basis) in the past year. Strong and record setting operational and financial performance combined with continued commodity price strength has placed InPlay well ahead of schedule in the reduction of debt levels. The Company has achieved a 0.5x trailing twelve months net debt to EBITDA ratio in the second quarter of 2022 with expectations of leverage ratios continuing to drop throughout the balance of the year based on current commodity prices.

Although the world economic picture and energy prices remain volatile, the Company finds itself in the best operational and financial position in our history. We believe that a target of approximately 0.5x trailing twelve months net debt to EBITDA is a prudent leverage ratio in a higher commodity price environment and will provide the Company significant financial flexibility in a volatile pricing environment. Having achieved this target and with leverage continuing to drop, the Company is now evaluating a potential return of capital to shareholders, while continuing to pursue other accretive acquisition opportunities, with the ultimate goal of strong overall returns to shareholders.

Wet weather in late June delayed the start of our third quarter capital program. The program is now well underway with drilling operations ongoing on the third well of a three (2.9 net) ERH well pad in Willesden Green which is expected to be on production in late August. The drilling operations of an additional two (1.9 net) ERH wells in Willesden Green are planned for the third quarter which are expected to be on production late in September. The Company’s third quarter drilling program is in an area with anticipated higher oil weightings which is expected to result in increased liquids percentages into the second half of the year.

As a result of the strong operational results to date, the Company’s previously released 2022 guidance⁽⁵⁾ is reiterated with annual average production anticipated to be 8,900 to 9,400 boe/d⁽¹⁾.

InPlay plans on releasing our inaugural sustainability report in September. In addition, an operational update, a long range forecast, and an update on the evaluation of a potential return to shareholders is expected to be released in September.

Management would like to thank our employees, board members, lenders and shareholders for their support and we look forward to continuing our journey of deleveraging and delivering strong returns to shareholders in a sustainable, prudent and responsible manner.

For further information please contact:

Doug Bartole
President and Chief Executive Officer
InPlay Oil Corp.
Telephone: (587) 955-0632

Darren Dittmer
Chief Financial Officer
InPlay Oil Corp.
Telephone: (587) 955-0634

Notes:

See “Production Breakdown by
Product Type” at the end of this press release.
Capital management measure. See
“Non-GAAP and Other Financial Measures” contained within this press
release.
Supplementary financial measure.
See “Non-GAAP and Other Financial Measures” contained within this press
release.
Non-GAAP financial measure or ratio
that does not have a standardized meaning under International Financial
Reporting Standards (IFRS) and GAAP and therefore may not be comparable
with the calculations of similar measures for other companies. Please
refer to “Non-GAAP and Other Financial Measures” contained within this
press release.
See “Reader Advisories – Forward
Looking Information and Statements” and InPlay’s press release dated May
11, 2022 for full details and key budget and underlying assumptions
related to our 2022 capital program and associated guidance.

Reader Advisories

Non-GAAP and Other Financial Measures

Throughout this press release and other materials disclosed by the Company, InPlay uses certain measures to analyze financial performance, financial position and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under GAAP and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with GAAP as indicators of the Company performance. Management believes that the presentation of these non-GAAP and other financial measures provides useful information to shareholders and investors in understanding and evaluating the Company’s ongoing operating performance, and the measures provide increased transparency and the ability to better analyze InPlay’s business performance against prior periods on a comparable basis.

Non-GAAP Financial Measures and Ratios

Included in this document are references to the terms “free adjusted funds flow (“FAFF”)”, “operating income”, “operating netback per boe”, “operating income profit margin”, “Net Debt to EBITDA” and “Debt adjusted production per share”. Management believes these measures and ratios are helpful supplementary measures of financial and operating performance and provide users with similar, but potentially not comparable, information that is commonly used by other oil and natural gas companies. These terms do not have any standardized meaning prescribed by GAAP and should not be considered an alternative to, or more meaningful than “profit (loss) before taxes”, “profit (loss) and comprehensive income (loss)”, “adjusted funds flow”, “capital expenditures”, “corporate acquisitions, net of cash acquired”, “net debt”, “weighted average number of common shares (basic)” or assets and liabilities as determined in accordance with GAAP as a measure of the Company’s performance and financial position.

Free Adjusted Funds Flow

Management considers free adjusted funds flow (“FAFF”) and FAFF per share important measures to identify the Company’s ability to improve its financial condition through debt repayment, which has become more important recently with the introduction of second lien lenders, on an absolute and weighted average per share basis. FAFF should not be considered as an alternative to or more meaningful than AFF as determined in accordance with GAAP as an indicator of the Company’s performance. FAFF is calculated by the Company as AFF less exploration and development capital expenditures and property dispositions (acquisitions) and is a measure of the cashflow remaining after capital expenditures before corporate acquisitions that can be used for additional capital activity, corporate acquisitions, repayment of debt or decommissioning expenditures or potentially return of capital to shareholders. FAFF per share is calculated by the Company as FAFF divided by weighted average outstanding shares. Refer below for a calculation of historical FAFF and to the “Forward Looking Information and Statements” section for a calculation of forecast FAFF.

(thousands of dollars)	Three Months Ended June 30				Six Months Ended June 30
	2022		2021		2022		2021
Adjusted funds flow	40,922		8,219		70,303		14,324
Exploration and dev. capital expenditures	(17,850	)	(4,744	)	(39,413	)	(16,954	)
Property dispositions (acquisitions)	–		101		1		82
Free adjusted funds flow	23,072		3,576		30,891		(2,548	)

Operating Income/Operating Netback per boe/Operating Income Profit Margin

InPlay uses “operating income”, “operating netback per boe” and “operating income profit margin” as key performance indicators. Operating income is calculated by the Company as oil and natural gas sales less royalties, operating expenses and transportation expenses and is a measure of the profitability of operations before administrative, share-based compensation, financing and other non-cash items. Management considers operating income an important measure to evaluate its operational performance as it demonstrates its field level profitability. Operating income should not be considered as an alternative to or more meaningful than net income as determined in accordance with GAAP as an indicator of the Company’s performance. Operating netback per boe is calculated by the Company as operating income divided by average production for the respective period. Management considers operating netback per boe an important measure to evaluate its operational performance as it demonstrates its field level profitability per unit of production. Operating income profit margin is calculated by the Company as operating income as a percentage of oil and natural gas sales. Management considers operating income profit margin an important measure to evaluate its operational performance as it demonstrates how efficiently the Company generates field level profits from its sales revenue. Refer below for a calculation of operating income, operating netback per boe and operating income profit margin.

(thousands of dollars)	Three Months Ended June 30				Six Months Ended June 30
	2022		2021		2022		2021
Revenue	71,287		25,267		123,444		45,268
Royalties	(9,811	)	(2,366	)	(17,410	)	(3,611	)
Operating expenses	(10,125	)	(6,129	)	(19,713	)	(12,551	)
Transportation expenses	(1,021	)	(547	)	(1,914	)	(965	)
Operating income⁽²⁾	50,330		16,225		84,407		28,141

Sales volume (Mboe)	824.7		490.1		1,564.6		937.0
Per boe
Revenue	86.44		51.55		78.90		48.31
Royalties	(11.90	)	(4.83	)	(11.13	)	(3.85	)
Operating expenses	(12.28	)	(12.51	)	(12.60	)	(13.40	)
Transportation expenses	(1.24	)	(1.12	)	(1.22	)	(1.03	)
Operating netback per boe	61.02		33.09		53.95		30.03
Operating income profit margin	71%		64%		68%		62%

Net Debt to EBITDA

Management considers Net Debt to EBITDA an important measure as it is a key metric to identify the Company’s ability to fund financing expenses, net debt reductions and other obligations. EBITDA is calculated by the Company as adjusted funds flow before interest expense. When this measure is presented quarterly, EBITDA is annualized by multiplying by four. When this measure is presented on a trailing twelve month basis, EBITDA for the twelve months preceding the net debt date is used in the calculation. This measure is consistent with the EBITDA formula prescribed under the Company’s Senior Credit Facility. Net Debt to EBITDA is calculated as Net Debt divided by EBITDA. Refer to the “Forward Looking Information and Statements” section for a calculation of forecast Net Debt to EBITDA.

Production per Debt Adjusted Share

InPlay uses “Production per debt adjusted share” as a key performance indicator. Debt adjusted shares should not be considered as an alternative to or more meaningful than common shares as determined in accordance with GAAP as an indicator of the Company’s performance. Debt adjusted shares is a non-GAAP measure used in the calculation of Production per debt adjusted share and is calculated by the Company as common shares outstanding plus the change in net debt divided by the Company’s current trading price on the TSX, converting net debt to equity. Debt adjusted shares should not be considered as an alternative to or more meaningful than weighted average number of common shares (basic) as determined in accordance with GAAP as an indicator of the Company’s performance. Management considers Debt adjusted share is a key performance indicator as it adjusts for the effects of capital structure in relation to the Company’s peers. Production per debt adjusted share is calculated by the Company as production divided by debt adjusted shares. Management considers Production per debt adjusted share is a key performance indicator as it adjusts for the effects of changes in annual production in relation to the Company’s capital structure. Refer below for a calculation of Production per debt adjusted share.

		Three Months Ended June 30
			2022		2021
Production	Boe/d		9,063		5,386
Net Debt	$ millions	$	50.5	$	76.1
Weighted average outstanding shares	# millions		86.9		68.3
Assumed Share price⁽²⁾	$		4.00
Production per debt adjusted share growth⁽²⁾			43%
		Three Months Ended
		June 30, 2022		March 31, 2022
Production	Boe/d		9,063		8,221
Net Debt	$ millions	$	50.5	$	73.4
Weighted average outstanding shares	# millions		86.9		86.4
Assumed Share price⁽²⁾	$		4.00
Production per debt adjusted share growth⁽²⁾			17%

⁽¹⁾	Production per debt adjusted share is calculated by the Company as production divided by debt adjusted shares. Debt adjusted shares is calculated by the Company as common shares outstanding plus the change in net debt divided by the Company’s current trading price on the TSX, converting net debt to equity.
⁽²⁾	Weighted average share price throughout the second quarter of 2022.

Capital Management Measures

Adjusted Funds Flow

Management considers adjusted funds flow to be an important measure of InPlay’s ability to generate the funds necessary to finance capital expenditures. Adjusted funds flow (“AFF”) is a GAAP measure and is disclosed in the notes to the Company’s consolidated financial statements for the year ending December 31, 2021 and the most recently filed quarterly financial statements. All references to AFF throughout this document are calculated as funds flow adjusting for decommissioning expenditures and transaction and integration costs. This item is adjusted from funds flow as decommissioning expenditures are incurred on a discretionary and irregular basis and are primarily incurred on previous operating assets and transaction costs are non-recurring costs for the purposes of an acquisition, making the exclusion of these items relevant in Management’s view to the reader in the evaluation of InPlay’s operating performance. The Company also presents AFF per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of profit (loss) per common share.

Net Debt

Net debt is a GAAP measure and is disclosed in the notes to the Company’s consolidated financial statements for the year ending December 31, 2021 and the most recently filed quarterly financial statements. The Company closely monitors its capital structure with a goal of maintaining a strong balance sheet to fund the future growth of the Company. The Company monitors net debt as part of its capital structure. The Company uses net debt (bank debt plus accounts payable and accrued liabilities less accounts receivables and accrued receivables, prepaid expenses and deposits and inventory) as an alternative measure of outstanding debt. Management considers net debt an important measure to assist in assessing the liquidity of the Company.

Supplementary Measures

“Average realized crude oil price” is comprised of crude oil commodity sales from production, as determined in accordance with IFRS, divided by the Company’s crude oil production. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments.

“Average realized NGL price” is comprised of NGL commodity sales from production, as determined in accordance with IFRS, divided by the Company’s NGL production. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments.

“Average realized natural gas price” is comprised of natural gas commodity sales from production, as determined in accordance with IFRS, divided by the Company’s natural gas production. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments.

“Average realized commodity price” is comprised of commodity sales from production, as determined in accordance with IFRS, divided by the Company’s production. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments.

“AFF per weighted average basic share” is comprised of AFF divided by the basic weighted average common shares.

“AFF per weighted average diluted share” is comprised of AFF divided by the diluted weighted average common shares.

“AFF per boe” is comprised of AFF divided by total production.

Forward-Looking Information and Statements

This news release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “forecast”, “targets”, “framework” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward looking information and statements pertaining to the following: the Company’s business strategy, milestones and objectives including, without limitation, the anticipated continuation of debt reduction the anticipated impact of the redetermined Credit Facility; improved leverage ratios and generation of FAFF; the Company’s targeted net debt to EBITDA ratio of 0.5 times; future intentions regarding the implementation of a return of capital program and the timing thereof; statements regarding the Company’s plans or expectations for the initiation of a potential dividend, the reaching of targets and satisfaction of conditions thereto and the amount and timing thereof; expectations regarding future commodity prices; future oil and natural gas prices; future liquidity and financial capacity; future results from operations and operating metrics; future costs, expenses and royalty rates; future interest costs; the exchange rate between the $US and $Cdn; future development, exploration, acquisition, development and infrastructure activities and related capital expenditures, including our planned 2022 capital program and associated guidance.

Without limitation of the foregoing, readers are cautioned that the Company’s return to shareholders framework including future dividend payments to shareholders of the Company, if any, and the level thereof remains uncertain and accordingly management’s expectations related thereto should not be unduly relied upon. The Company’s dividend policy and funds available for the payment of dividends, if any, from time to time, is dependent upon, among other things, levels of FAFF, leverage ratios, financial requirements for the Company’s operations and execution of its growth strategy, fluctuations in commodity prices and working capital, the timing and amount of capital expenditures, credit facility availability and limitations on distributions existing thereunder, and other factors beyond the Company’s control. Further, the ability of the Company to implement a return to shareholder program will be subject to applicable laws, including satisfaction of solvency tests under the ABCA, and satisfaction of certain applicable contractual restrictions contained in the agreements governing the Company’s outstanding indebtedness.

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of InPlay which have been used to develop such statements and information but which may prove to be incorrect. Although InPlay believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because InPlay can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which InPlay operates; the timely receipt of any required regulatory approvals; the ability of InPlay to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which InPlay has an interest in to operate the field in a safe, efficient and effective manner; the ability of InPlay to obtain debt financing on acceptable terms and the anticipated lifting of certain restrictions on the payment of distributions to shareholders which currently exist thereunder; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and the ability of InPlay to secure adequate product transportation; future commodity prices; that various conditions to a shareholder return strategy can be satisfied; expectations regarding the potential impact of COVID-19 and the Russia/Ukraine conflict; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which InPlay operates; and the ability of InPlay to successfully market its oil and natural gas products. The forward-looking information and statements included herein are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: the continuing impact of the COVID-19 pandemic and the Russia/Ukraine conflict; changes in our planned 2022 capital program; changes in commodity prices and other assumptions outlined herein; the risk that the Company is unable to implement a return to shareholder strategy or, if implemented, the risk that dividend payments thereunder may be reduced, suspended or cancelled; the potential for variation in the quality of the reservoirs in which we operate; changes in the demand for or supply of our products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans or strategies of InPlay or by third party operators of our properties; changes in our credit structure, increased debt levels or debt service requirements; inaccurate estimation of our light crude oil and natural gas reserve and resource volumes; limited, unfavorable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in InPlay’s continuous disclosure documents filed on SEDAR including our Annual Information Form and our MD&A.

This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about InPlay’s financial and leverage targets and objectives, and potential dividends and share buybacks, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. The actual results of operations of InPlay and the resulting financial results will likely vary from the amounts set forth in this press release and such variation may be material. InPlay and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, InPlay undertakes no obligation to update such FOFI. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about InPlay’s anticipated future business operations and strategy. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein.

The forward-looking information and statements contained in this news release speak only as of the date hereof and InPlay does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The key budget and underlying material assumptions used by the Company in the development of its 2022 guidance including forecasted production, operating income, capital expenditures, AFF, FAFF, FAFF yield, Net Debt, Net Debt/EBITDA, EV/DAAFF, production per debt adjusted share growth are as follows:

		Actuals FY 2021	Guidance FY 2022⁽¹⁾
WTI	US$/bbl	$67.91	$95.40
NGL Price	$/boe	$37.79	$47.80
AECO	$/GJ	$3.44	$6.00
Foreign Exchange Rate	CDN$/US$	0.80	0.79
MSW Differential	US$/bbl	$3.88	$2.70
Production	Boe/d	5,768	8,900 – 9,400
Royalties	$/boe	5.51	11.50 – 13.00
Operating Expenses	$/boe	12.83	11.00 – 14.00
Transportation	$/boe	1.11	1.05 – 1.30
Interest	$/boe	2.67	0.85 – 1.25
General and Administrative	$/boe	2.83	2.40 – 2.95
Hedging loss	$/boe	6.20	1.85 – 2.15
Decommissioning Expenditures	$ millions	$1.4	$2.0 – $2.5
Adjusted Funds Flow	$ millions	$47.0	$147 – $156
Weighted average outstanding shares	# millions	69.8	86.5
Adjusted Funds Flow per share	$/share	0.67	1.70 – 1.80

		Actuals FY 2021	Guidance FY 2022⁽¹⁾
Adjusted Funds Flow	$ millions	$47.0	$147 – $156
Capital Expenditures	$ millions	$33.3	$64.0
Free Adjusted Funds Flow	$ millions	$13.6	$83 – $92
Shares outstanding, end of year	# millions	86.2	86.5
Assumed Share Price	$	2.18⁽³⁾	3.66
Market capitalization	$ millions	$188	$317
FAFF Yield	%	7%	26% – 29%

		Actuals FY 2021	Guidance FY 2022⁽¹⁾
Adjusted Funds Flow	$ millions	$47.0	$147 – $156
Interest	$/boe	2.67	0.85 – 1.25
EBITDA	$ millions	$52.6	$150 – $159
Net Debt/(Positive working capital)	$ millions	$80.2	($1) – ($10)
Net Debt/EBITDA		1.5	0.0 – 0.1

		Actuals Q2 2021	Guidance Q2 2022⁽¹⁾	Actuals Q2 2022
Adjusted Funds Flow	$ millions	$8.2	$37 – $40	$40.9
Interest	$/boe	3.27	1.00 – 1.25	1.56
EBITDA	$ millions	$9.8	$38 – $41	$42.2
Annualized EBITDA	$ millions	$39.2	$154 – $162	$168.8
Net Debt	$ millions	$76.1	$50 – $53	$50.5
Net Debt/EBITDA		1.9	0.3	0.3

		Actuals FY 2021	Guidance FY 2022⁽¹⁾
Production	Boe/d	5,768	8,900 – 9,400
Opening Net Debt	$ millions	$73.7	$80.2
Ending Net Debt/(Positive working capital)	$ millions	$80.2	($1) – ($10)
Weighted average outstanding shares	# millions	69.8	86.5
Assumed Share price	$	1.16⁽⁴⁾	3.66
Production per debt adjusted share growth⁽²⁾		31%	70% – 80%

		Actuals FY 2021	Guidance FY 2022⁽¹⁾
Share outstanding, end of year	# millions	86.2	86.5
Assumed Share price	$	2.18⁽³⁾	3.66
Market capitalization	$ millions	$188	$317
Net Debt/(Positive working capital)	$ millions	$80.2	($1) – ($10)
Enterprise value	$millions	$268.2	$307 – $316
Adjusted Funds Flow	$ millions	$44.1	$147 – $156
Interest	$/boe	2.67	0.85 – 1.25
Debt Adjusted AFF	$ millions	$49.7	$151 – $160
EV/DAAFF		5.4	1.9 – 2.1

⁽¹⁾	As previously released May 11, 2022.

⁽²⁾	Production per debt adjusted share is calculated by the Company as production divided by debt adjusted shares. Debt adjusted shares is calculated by the Company as common shares outstanding plus the change in net debt divided by the Company’s current trading price on the TSX, converting net debt to equity. Share price at December 31, 2022 is assumed to be consistent with the current share price.

⁽³⁾	Ending share price at December 31, 2021.

⁽⁴⁾	Weighted average share price throughout 2021.

See “Production Breakdown by Product Type” below
Quality and pipeline transmission adjustments may impact realized oil prices in addition to the MSW Differential provided above
Changes in working capital are not assumed to have a material impact between Dec 31, 2021 and Dec 31, 2022.

Test Results and Initial Production (“IP”) Rates
Test results and initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long term performance or of ultimate recovery. A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed.

Production Breakdown by Product Type
Disclosure of production on a per boe basis in this press release consists of the constituent product types as defined in NI 51-101 and their respective quantities disclosed in the table below:

	Light and Medium Crude oil (bbls/d)	NGLS (boe/d)	Conventional Natural gas (Mcf/d)	Total (boe/d)
Q1 2021 Average Production	2,665	802	8,994	4,965
Q2 2021 Average Production	2,942	730	10,286	5,386
2021 Average Production	2,981	782	12,030	5,768
Q1 2022 Average Production	3,571	1,307	20,054	8,221
Q2 2022 Average Production	3,865	1,333	23,191	9,063
2022 Annual Guidance	4,320	1,311	21,114	9,150⁽¹⁾

Notes:

This reflects the mid-point of the
Company’s 2022 production guidance range of 8,900 to 9,400 boe/d.
With respect to forward-looking
production guidance, product type breakdown is based upon management’s
expectations based on reasonable assumptions but are subject to
variability based on actual well results.

References to crude oil, NGLs or natural gas production in this press release refer to the light and medium crude oil, natural gas liquids and conventional natural gas product types, respectively, as defined in National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities (“Nl 51-101”).

BOE Equivalent
Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of 6:1, utilizing a 6:1 conversion basis may be misleading as an indication of value.

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