Release – Helius Medical Technologies, Inc. Reports Second Quarter 2021 Financial Results

Posted on August 13, 2021 by Admin

Helius Medical Technologies, Inc. Reports Second Quarter 2021 Financial Results

NEWTOWN, Pa., Aug. 12, 2021 (GLOBE NEWSWIRE) — Helius Medical Technologies, Inc. (Nasdaq:HSDT) (TSX:HSM) (“Helius” or the “Company”), a neurotech company focused on neurological wellness, today reported financial results for the quarter ended June 30, 2021.

Second Quarter and Recent Business Updates

Frederick Fantazzia appointed Vice President of Sales & Marketing, North America, June 1, 2021
Dane Andreeff and Jeffrey Mathiesen appointed President & Chief Executive Officer and Chief Financial Officer, respectively, June 14, 2021
Antonella Favit-Van Pelt, M.D., Ph.D. appointed Chief Medical Officer, July 7, 2021
New website launched for U.S.-based patients and physicians: https://ponstreatment.com

Second Quarter 2021 Financial Summary

Revenue: $71 thousand, vs. $133 thousand in Q2 2020
Operating loss: $6.2 million vs. $3.7 million in Q2 2020
- Q2 2021 included $1.9 million of increased non-cash stock-based compensation expense comprised of a one-time fully vested stock option grant valued at $1.0 million and stock options granted to key management and sales executives
Net loss: $6.0 million vs. $3.4 million in Q2 2020
Cash balance: $7.4 million at June 30, 2021 vs. $3.3 million at December 31, 2020

“Helius made important progress during the second quarter and in recent weeks in preparing for U.S. commercialization, following the receipt of U.S. marketing authorization of our PoNS device for MS in late March,” said Dane Andreeff, President and Chief Executive Officer of Helius. “Most notably, we enhanced and expanded our senior leadership team with the appointment of several highly qualified individuals, including a Vice President of Sales and Marketing for North America who will inform and lead our strategy to commercialize in the U.S. We also secured many of the required state licenses that will enable us to distribute and sell our PoNS device and are now cleared to sell in approximately 85% of states in the U.S. Lastly, we continued to develop our go-to-market strategy by refining our plan to initially target the estimated 130,000 MS patients with gait deficit who may require physical therapy. With respect to our operations in Canada, although the country remained severely impacted by the effects of the COVID-19 pandemic during the second quarter, with restrictions on both the clinics and patients we serve, we are cautiously optimistic that these headwinds will moderate in the second half of 2021 as the operating environment begins to recover.”

Mr. Andreeff continued: “During the second half of this year, we will remain keenly focused on pursuing our pre-commercial activities in order to meet our goal of beginning U.S. commercialization of our PoNS Treatment during the first quarter of 2022. Specifically, we plan to begin building our commercial team and appropriately engage centers of excellence to allow them to gain experience with PoNS in the target population, with the goal that they will then disseminate their experience with PoNS to colleagues and health care providers. The focus of these efforts will include the 10 states we have identified that comprise more than 50% of the targeted MS patients. We will also be engaging with payers in our pursuit to establish PoNS pricing in line with benchmark pricing for comparable devices used in the neurorehabilitation space. By executing on these near-term initiatives, we aim to bring our innovative PoNS technology to the aid of U.S. patients as quickly and efficiently as possible, which we believe represents the best path to creating value for our shareholders.”

Second Quarter 2021 Financial Results

Total revenue for the second quarter of 2021 was $71 thousand, compared to $133 thousand in the second quarter of 2020. Product sales represented 89% of total revenue in the second quarter of 2021 compared to 95% in the prior year period. Product sales in both periods were generated through sales of the PoNS device pursuant to supply agreements with PoNS Authorized clinic locations in Canada. License and fee revenue represented 11% of sales in the second quarter of 2021, compared with 5% of sales in the prior year period.

Gross profit for the second quarter of 2021 was $4 thousand, compared to gross profit of $69 thousand in the second quarter of 2020.

Operating expenses for the second quarter of 2021 increased $2.4 million, or 63% year-over-year, to $6.2 million, compared to $3.8 million in the second quarter of 2020. Operating expenses in the second quarter of 2021 included a $1.9 million increase in non-cash stock-based compensation expense comprised of a one-time fully vested stock option grant valued at $1.0 million and stock options granted in conjunction with the addition of key management and sales executives.

Operating loss for the second quarter of 2021 increased $2.5 million, or 66% year-over-year, to $6.2 million, compared to $3.7 million in the second quarter of 2020.

Total other income for the second quarter of 2021 was $185 thousand, compared to total other income of $361 thousand in the second quarter of 2020.

Net loss for the second quarter of 2021 was $6.0 million, or $(2.58) per basic and diluted common share, compared to a net loss of $3.4 million, or $(2.90) per basic and diluted common share, in the second quarter of 2020. Weighted average shares used to compute basic and diluted net loss per common share were 2.3 million and 1.2 million for the second quarter of 2021 and 2020, respectively.

Six Months Ended June 30, 2021 Financial Results

Total revenue for the six months ended June 30, 2021 was $155 thousand, compared to $339 thousand for the six months ended June 30, 2020. Product sales represented 90% of total revenue for the six months ended June 30, 2021, compared to 94% of total revenue for the six months ended June 30, 2020. Product sales in both periods were generated through sales of the PoNS device pursuant to supply agreements with PoNS Authorized clinic locations in Canada. License and fee revenue represented 10% of total revenue for the six months ended June 30, 2021, compared to 6% of total revenue for the six months ended June 30, 2020.

Gross profit for the six months ended June 30, 2021 was $72 thousand, compared to gross profit of $174 thousand for the six months ended June 30, 2020. Operating expenses for the six months ended June 30, 2021 increased $1.8 million, or 23% year-over-year, to $9.7 million, compared to $7.9 million for the six months ended June 30, 2020.

Operating loss for the six months ended June 30, 2021 increased $2.0 million, or 25% year-over-year, to $9.7 million, compared to operating loss of $7.7 million for the six months ended June 30, 2020. Operating expenses in the six months ended June 30, 2021 included a $1.7 million increase in stock-based compensation expense comprised of a one-time fully vested stock option grant valued at $1.0 million and stock options granted in conjunction with the addition of key management and sales executives.

Total other income for the six months ended June 30, 2021 was $324 thousand, compared to $394 thousand of total other expense for the six months ended June 30, 2020.

Net loss for the six months ended June 30, 2021 was $9.3 million, or $(4.29) per basic and diluted common share, compared to net loss of $8.1 million, or $(7.85) per basic and diluted common share, for the six months ended June 30, 2020. Weighted average shares used to compute basic and diluted net per share were 2.2 million and 1.0 million for the six months ended June 30, 2021 and the six months ended June 30, 2020, respectively.

Net cash provided by financing activities during the six months ended June 30, 2021 was $10.8 million.

As of June 30, 2021, the Company had cash of $7.4 million, compared to $3.3 million at December 31, 2020. The Company had no debt outstanding at June 30, 2021.

Conference Call

Management will host a conference call at 5:00 p.m. Eastern Time on August 12, 2021 to discuss the results of the quarter and business outlook. Those who would like to participate may dial 877-407-2988 (201-389-0923 for international callers) and provide access code 13721027. A live webcast of the call will also be provided on the Events section of the Company’s investor relations website at:

https://heliusmedical.com/index.php/investor-relations/events/upcoming-events.

For those unable to participate, a replay of the call will be available for two weeks at 877-660-6853 (201-612-7415 for international callers); access code 13721027. The webcast will be archived on the Events section of the Company’s investor relations website.

About Helius Medical Technologies, Inc.

Helius Medical Technologies is a neurotech company focused on neurological wellness. The Company’s purpose is to develop, license and acquire unique and non-invasive platform technologies that amplify the brain’s ability to heal itself. The Company’s first commercial product is the Portable Neuromodulation Stimulator (PoNS™). For more information, visit www.heliusmedical.com.

About the PoNS™ Device and PoNS Treatment™

The Portable Neuromodulation Stimulator (PoNS™) is an innovative non-surgical device, inclusive of a controller and mouthpiece, which delivers electrical stimulation to the surface of the tongue to provide treatment of gait deficit. The PoNS device is indicated for use in the United States as a short term treatment of gait deficit due to mild-to-moderate symptoms from multiple sclerosis (“MS”) and is to be used as an adjunct to a supervised therapeutic exercise program in patients 22 years of age and over by prescription only. It is authorized for sale in Canada as a class II, non-implantable, medical device intended as a short term treatment (14 weeks) of gait deficit due to mild and moderate symptoms from MS, and chronic balance deficit due to mild-to-moderate traumatic brain injury (“mmTBI”) and is to be used in conjunction with physical therapy. The PoNS™ is an investigational medical device in the European Union (“EU”) and Australia (“AUS”). It is currently under premarket review by the AUS Therapeutic Goods Administration.

Cautionary Disclaimer Statement:

Certain statements in this news release are not based on historical facts and constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws. All statements other than statements of historical fact included in this news release are forward-looking statements that involve risks and uncertainties. Forward-looking statements are often identified by terms such as “believe,” “continue,” “will,” “goal,” “aim to” and similar expressions. Such forward-looking statements include, among others, statements regarding the COVID-19 pandemic, including its impact on the Company, the Company’s future growth and operational progress, including pre-commercial activities for the PoNS device, and expected time to begin commercialization of the PoNS device in the U.S..

There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those expressed or implied by such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include uncertainties associated with the Company’s capital requirements to achieve its business objectives, the impact of the COVID-19 pandemic, the Company’s ability to train physical therapists in the supervision of the use of the PoNS Treatment, the Company’s ability to secure contracts with rehabilitation clinics, the Company’s ability to obtain national Medicare coverage and to obtain a reimbursement code so that the PoNS device is covered by Medicare and Medicaid, the Company’s ability to build internal commercial infrastructure, secure state distribution licenses, build a commercial team and build relationships with Key Opinion Leaders, neurology experts and neurorehabilitation centers, market awareness of the PoNS device, future clinical trials and the clinical development process, manufacturing and supply chain risks, potential changes to the MCIT program resulting from the 60-day deferral of the program implementation, the product development process and FDA regulatory submission review and approval process, other development activities, ongoing government regulation, and other risks detailed from time to time in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, its Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and its other filings with the United States Securities and Exchange Commission and the Canadian securities regulators, which can be obtained from either at www.sec.gov or www.sedar.com.

The reader is cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements except to the extent required by law.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Helius Medical Technologies, Inc.
Unaudited Consolidated Balance Sheets
(Except for share data, amounts in thousands)

	June 30, 2021			December 31, 2020
ASSETS
Current assets
Cash	$	7,425		$	3,331
Accounts receivable, net		51			74
Other receivables		169			156
Inventory, net		507			389
Prepaid expenses		833			735
Total current assets		8,985			4,685
Property and equipment, net		449			486
Other assets
Goodwill		783			759
Intangible assets, net		438			527
Operating lease right-of-use asset, net		62			90
Total other assets		1,283			1,376
TOTAL ASSETS	$	10,717		$	6,547
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	912		$	747
Accrued liabilities		873			1,337
Operating lease liability		62			59
Deferred revenue		290			281
Total current liabilities		2,137			2,424
Non-current liabilities
Operating lease liability		—			32
Deferred revenue		213			220
TOTAL LIABILITIES		2,350			2,676
STOCKHOLDERS’ EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2021 and December 31, 2020		—			—
Class A Common stock, $0.001 par value; 150,000,000 shares authorized; 2,317,772 and 1,484,362 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively		2			1
Additional paid-in capital		138,023			123,872
Accumulated other comprehensive loss		(1,412	)		(1,099	)
Accumulated deficit		(128,246	)		(118,903	)
TOTAL STOCKHOLDERS’ EQUITY		8,367			3,871
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	10,717		$	6,547

Helius Medical Technologies, Inc.
Unaudited Consolidated Statements of Operations and Comprehensive Loss
(Amounts in thousands except share and per share data)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Revenue:
Product sales	$	63		$	126		$	140		$	317
Fee revenue		—			—			—			9
License revenue		8			7			15			13
Total operating revenue		71			133			155			339
Cost of sales:
Cost of product sales		67			64			83			165
Gross profit		4			69			72			174
Operating expenses:
Research and development		1,377			1,308			2,694			2,428
Selling, general and administrative		4,744			2,394			6,939			5,255
Amortization expense		49			89			106			215
Total operating expenses		6,170			3,791			9,739			7,898
Operating loss		(6,166	)		(3,722	)		(9,667	)		(7,724	)
Other income (expense):
Other income		—			56			—			63
Change in fair value of derivative financial instruments		—			(1	)		—			3
Foreign exchange gain (loss)		185			306			324			(460	)
Total other income (expense)		185			361			324			(394	)
Net loss		(5,981	)		(3,361	)		(9,343	)		(8,118	)
Other comprehensive loss:
Foreign currency translation adjustments		(185	)		(255	)		(313	)		381
Comprehensive loss	$	(6,166	)	$	(3,616	)	$	(9,656	)	$	(7,737	)
Net loss per share
Basic	$	(2.58	)	$	(2.90	)	$	(4.29	)	$	(7.85	)
Diluted	$	(2.58	)	$	(2.90	)	$	(4.29	)	$	(7.85	)
Weighted average shares outstanding
Basic		2,317,389			1,160,661			2,179,878			1,033,692
Diluted		2,317,389			1,160,661			2,179,878			1,033,692

Helius Medical Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)

	Six Months Ended
	June 30,
	2021			2020
Cash flows from operating activities:
Net loss	$	(9,343	)	$	(8,118	)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of derivative financial instruments		—			(3	)
Stock-based compensation expense		3,156			1,571
Unrealized foreign exchange (gain) loss		(323	)		433
Depreciation expense		56			67
Amortization expense		106			215
(Recovery of) provision for doubtful accounts		(11	)		153
Non-cash lease expense		30			196
Intangible asset impairment		—			181
Loss from disposal of property and equipment		—			110
Gain from lease modification		—			(56	)
Changes in operating assets and liabilities:
Accounts receivable		34			1
Other receivables		(13	)		226
Inventory		(118	)		28
Prepaid expenses		(98	)		(105	)
Operating lease liability		(31	)		(126	)
Accounts payable		229			(1,288	)
Accrued liabilities		(366	)		(381	)
Deferred revenue		2			(83	)
Net cash used in operating activities		(6,690	)		(6,979	)
Cash flows from investing activities:
Purchase of property and equipment		(19	)		(3	)
Proceeds from sale of property and equipment		—			61
Internally developed software		(2	)		(7	)
Net cash (used in) provided by investing activities		(21	)		51
Cash flows from financing activities:
Proceeds from the issuance of common stock and accompanying warrants		11,037			7,233
Share issuance costs		(1,523	)		(506	)
Proceeds from the exercise of warrants		1,320			—
Proceeds from Paycheck Protection Program Loan		—			323
Repayment of Paycheck Protection Program Loan		—			(323	)
Net cash provided by financing activities		10,834			6,727
Effect of foreign exchange rate changes on cash		(29	)		6
Net increase (decrease) in cash		4,094			(195	)
Cash at beginning of year		3,331			5,459
Cash at end of year	$	7,425		$	5,264

CONTACT: Investor Relations Contact:

Westwicke on behalf of Helius Medical Technologies, Inc.
Jack Powell, Vice President
[email protected]

Release – OSS Reports Q2 2021 Revenue up 28 to $14.9 Million Delivering Income of $1.7 Million or $0.09 per Share

Posted on August 13, 2021 by Admin

OSS Reports Q2 2021 Revenue up 28% to $14.9 Million, Delivering Income of $1.7 Million or $0.09 per Share

ESCONDIDO, Calif., Aug. 12, 2021 (GLOBE NEWSWIRE) — One Stop Systems, Inc. (Nasdaq: OSS), a leader in AI Transportable solutions on the edge, reported results for the second quarter ended June 30, 2021. All quarterly comparisons are to the same year-ago period unless otherwise noted. The company will hold a conference call at 5:00 p.m. Eastern time today to discuss the results (see dial-in information below).

Q2 2021 Financial Highlights

Revenue totaled $14.9 million, up 12% sequentially and up 28% versus the same year-ago quarter.
Gross margin was 31.2%, up 2.6 percentage points.
GAAP net income totaled $1.7 million or $0.09 per diluted share versus a net loss of $12,000 or $(0.00) per diluted share in the year-ago quarter. GAAP net income includes forgiveness of PPP loan of approximately $1.5 million.
Non-GAAP net income was $812,000 or $0.04 per basic and diluted share, versus $248,000 or $0.01 per diluted share in the same year-ago quarter. Non-GAAP net income excludes $1.5 million of PPP loan forgiveness (see definition of this and other non-GAAP measures and reconciliation to GAAP, below).
Adjusted EBITDA was $1.4 million, up $1.3 million and reaching more than 9% of total revenue. Adjusted EBITDA excludes $1.5 million of PPP loan forgiveness.
Cash, cash equivalents and short-term investments totaled $18.5 million on June 30, 2021.

First Half 2021 Financial Highlights

Revenue totaled a record $28.2 million, up 13%.
Gross margin was 32.2%, up 5.3 percentage points.
GAAP net income totaled $1.7 million or $0.09 per share, up by $2.8 million. GAAP net income includes forgiveness of PPP loan of approximately $1.5 million.
Non-GAAP net income was $1.5 million or $0.08 per basic and diluted share, up by $1.9 million. Non-GAAP net income excludes $1.5 million of PPP loan forgiveness.
Adjusted EBITDA was $2.5 million, up by $3.3 million. Adjusted EBITDA excludes $1.5 million of PPP loan forgiveness.

Q2 2021 Operational Highlights

Secured three major design wins, which included two AI on the Fly® applications, a transportable edge flash storage solution, an autonomous vehicle training system, and a high-performance computing medical controller system. Total major wins for the first half of the year totaled six wins. In addition to the confirmed wins, the company has 17 major pending opportunities.
Operating expenses as a percentage of revenue decreased to 27.7% from 32.1% in the same year-ago quarter, which was primarily due to the company’s expense reduction program initiated in early 2020.

Management Commentary

“In Q2, we achieved strong top-line growth with revenue up 28% to $14.9 million, and this helped drive first half revenue up 13% to a record $28.2 million,” commented OSS president and CEO, David Raun. “The strong top-line performance reflects our broadening customer base and new wins with major accounts.

“We also drove down our operating expenses as a percentage of revenue. Together, these results generated solid bottom-line improvements with net income in the second quarter increasing $1.7 million versus the year-ago quarter and adjusted EBITDA up by $1.3 million, reaching more than 9% of total revenue.

“During the second quarter, we won three new major opportunities that included a medical control system, an edge flash storage program, and a GPU-accelerated training and inference system with a major vehicle supplier in Germany. The vehicle supplier win expanded our footprint in the autonomous vehicle market. Altogether, these successes brought our first half of the year major wins to six. We also shipped our latest SDS rugged server which was designed into a military mobile datacenter application.

“While we expect the effects of the pandemic to continue through the rest of the year, we are seeing improving customer demand. Even our commercial aerospace customers, which were severely affected by COVID, are re-engaging with us on new programs, as well as bringing back programs previously put on hold. We have now 17 major pending opportunities in our pipeline that we are focused on closing.

“Executing on our long-term strategic vision and product road map continues to be our top priority. This plan includes strengthening our value proposition in the fast-growing, edge-computing industry with the goal of becoming the market leader in the AI Transportables space. This target market requires the highest performance computing in a challenging mobile environment, which we believe to be one of our greatest strengths.

“We continue to proactively manage the challenges imposed by the pandemic, and in doing so, our team has become adept at optimizing engineering and manufacturing processes, shipping product on time, and not only protecting but increasing margins.

“While we are experiencing increased product demand, supply chain challenges such as price increases and long lead-times continue to be significant. However, our team is managing the fluid landscape on multiple fronts by qualifying additional vendors, implementing extended purchase planning, and focusing on other strategic and tactical activities.

“We believe our execution of our strategic plan, corporate reorganization, and improved board composition has contributed to a tripling of shareholder value over the past two years. So far this year, we have made better-than-expected top- and bottom-line progress.

“Given our adjusted EBITDA at 9% of total revenue in the first half of the year, we are well on our way to achieving our objective of it being no less than 10% of revenues. For the current third quarter, we believe we are on track to generate revenue of about $15.9 million, which would represent an increase of 23% over the same year-ago quarter and would exceed all historical third quarters.”

Q2 2021 Financial Summary
Revenue in the second quarter of 2021 increased 28% to $14.9 million, compared to $11.6 million in the same year-ago quarter. This growth was primarily driven by improvements in the sale of ruggedized servers in the media and entertainment markets, differentiated military AI Transportables data processing and storage products, as well as continued expansion of the company’s customer base and new applications within key accounts.

Gross profit was $4.7 million or 31.2% of revenue in the second quarter of 2021, up from $3.3 million or 28.6% of revenue in Q2 2020. The improvement in quarterly margin was attributed to changes in product mix and type of customer.

Operating expenses increased 11% to $4.1 million in the second quarter of 2021 compared to $3.7 million in the same year-ago quarter. Operating expenses as a percentage of revenue decreased to 27.7% in the second quarter of 2021 versus 32.1% in the year-ago quarter.

Net income on a GAAP basis totaled $1.7 million in the second quarter of 2021 or $0.09 per diluted share compared to a net loss of $12,000 or $(0.00) per diluted share in the year-ago period. This improvement was due to more favorable gross margins as well as debt and interest forgiveness on the company’s PPP loan of approximately $1.5 million.

Non-GAAP net income totaled $812,000 or $0.04 per basic and diluted share in the second quarter of 2021, as compared to a non-GAAP net income of $248,000 or $0.01 per diluted share in the same year-ago period. Non-GAAP net income excludes the $1.5 million PPP loan forgiveness.

Adjusted EBITDA, a non-GAAP term, totaled $1.4 million in the second quarter of 2021 as compared to $73,000 in the same year-ago period. Adjusted EBITDA excludes the $1.5 million PPP loan forgiveness.

Cash, cash equivalents and short-term investments totaled $18.5 million as of June 30, 2021, as compared to $19.6 million on March 31, 2021. The company believes its cash position and other available funds provide sufficient liquidity to meet its cash requirements for working capital and paying down debt, while supporting its strategic growth initiatives.

First Half 2021 Financial Summary

Total revenues increased 13% to a record $28.2 million compared to $25.0 million in the prior year. This growth was primarily driven by improvements in the sale of ruggedized servers in the media and entertainment markets, our differentiated military AI Transportables data processing and storage products, as well as continued expansion of our customer base and new applications within key accounts.

Gross profit for the first half of 2021 was $9.1 million or 32.2% of revenue, compared to $6.7 million or 26.9% of revenue in the same year-ago period. The improvements in quarterly margins were attributable to product mix, additional sales of high-value products, and increased efficiencies.

Total operating expenses decreased 4% to $8.3 million versus the first half of 2020. Operating expenses as a percentage of revenue improved to 29.4% during the first half of 2021 versus 34.6% in the same year-ago period.

Net income on a GAAP basis totaled $1.7 million or $0.09 per diluted share, as compared to a loss of $1.1 million or $(0.07) per share in the first half of 2020. Net Income includes the $1.5 million PPP loan forgiveness.

Non-GAAP net income totaled $1.5 million or $0.08 per diluted share, as compared to non-GAAP net loss of $466,000 or $(0.03) per share in the first half of 2020. Non-GAAP net income excludes the $1.5 million PPP loan forgiveness.

Adjusted EBITDA, a non-GAAP term, totaled $2.5 million as compared to negative $885,000 in the first half of 2020. Adjusted EBITDA excludes the $1.5 million PPP loan forgiveness.

Outlook
For the third quarter of 2021, OSS expects revenue of approximately $15.9 million which would be an increase of 7% sequentially and 23% versus the same year-ago quarter.

Conference Call
OSS management will hold a conference call to discuss its second quarter 2021 results later today, followed by a question-and-answer period.

Date: Thursday, August 12, 2021
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-866-269-4260
International dial-in number: 1-786-204-3966
Conference ID: 1453156

The conference call will be webcast live and available for replay here as well as via a link in the Investors section of the company’s website at onestopsystems.com/pages/investors. OSS regularly uses its website to disclose material and non-material information to investors, customers, employees and others interested in the company.

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.

A replay of the call will be available after 8:00 p.m. Eastern time on the same day through August 26, 2021.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1453156

About One Stop Systems
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.

Non-GAAP Financial Measures
Management believes that the use of adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, is helpful for an investor to assess the performance of the Company. The Company defines adjusted EBITDA as income (loss) before interest, taxes, depreciation, amortization, acquisition expenses, impairment of long-lived assets, financing costs, fair value adjustments from purchase accounting, stock-based compensation expense and expenses related to discontinued operations. For this reporting period, it excludes PPP loan forgiveness, which the company does not anticipate will reoccur in the foreseeable future.

Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States, or GAAP. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash operating expenses, management believes that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between the company’s core business operating results and those of other companies, as well as providing management with an important tool for financial and operational decision making and for evaluating the company’s own core business operating results over different periods of time.

The company’s adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in the company’s industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. The Company’s adjusted EBITDA is not a measurement of financial performance under GAAP, and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. Management does not consider adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results.

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Net income (loss)	$	1,697,122		$	(12,162	)	$	1,738,320		$	(1,108,194	)
Depreciation and amortization		394,794			402,385			775,572			798,210
Amortization of deferred gain		–			(12,359	)		–			(53,838	)
Stock-based compensation expense		465,336			85,378			903,730			293,139
Interest expense		169,031			150,186			319,013			218,970
Interest income		(61,798	)		(99,343	)		(67,098	)		(123,980	)
PPP loan and interest forgiveness		(1,514,354	)		–			(1,514,354	)		–
Provision (benefit) for income taxes		235,293			(441,511	)		295,815			(908,809	)
Adjusted EBITDA	$	1,385,424		$	72,574		$	2,450,998		$	(884,502	)

Adjusted EPS excludes the impact of certain items and therefore has not been calculated in accordance with GAAP. Management believes that exclusion of certain selected items assists in providing a more complete understanding of the company’s underlying results and trends and allows for comparability with its peer company index and industry. Management uses this measure along with the corresponding GAAP financial measures to manage the company’s business and to evaluate its performance compared to prior periods and the marketplace. The company defines Non-GAAP (loss) income as (loss) or income before amortization, stock-based compensation, expenses related to discontinued operations, impairment of long-lived assets and non-recurring acquisition costs. For this reporting period, it excludes PPP loan forgiveness, which the company does not anticipate will reoccur in the foreseeable future. Adjusted EPS expresses adjusted (loss) income on a per share basis using weighted average diluted shares outstanding.

Adjusted EPS is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. Management expects to continue to incur expenses similar to the adjusted income from continuing operations and adjusted EPS financial adjustments described above, and investors should not infer from the company’s presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring.

The following table reconciles net loss attributable to common stockholders and diluted earnings per share:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Net income (loss)	$	1,697,122		$	(12,162	)	$	1,738,320		$	(1,108,194	)
Amortization of intangibles		163,901			174,525			327,801			349,051
Stock-based compensation expense		465,336			85,378			903,730			293,139
PPP loan and interest forgiveness		(1,514,354	)		–			(1,514,354	)		–
Non-GAAP net income (loss)	$	812,005		$	247,741		$	1,455,497		$	(466,004	)
Non-GAAP net income (loss) per share:
Basic	$	0.04		$	0.02		$	0.08		$	(0.03	)
Diluted	$	0.04		$	0.01		$	0.08		$	(0.03	)
Weighted average common shares outstanding:
Basic		18,513,620			16,488,325			17,934,022			16,410,660
Diluted		19,735,383			16,867,921			19,305,842			16,410,660

Forward-Looking Statements
One Stop Systems cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems or its partners that any of our plans or expectations will be achieved, including but not limited to, to our management’s expectations for revenue growth generated by new products and design wins. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading “Risk Factors” in our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Media Contact:
Katie Rivera
One Stop Systems, Inc.
Tel (760) 745-9883
Email contact

Investor Relations:
Ronald Both or Justin Lumley
CMA
Tel (949) 432-7557
Email contact

ONE STOP SYSTEMS, INC. (OSS)

UNAUDITED CONSOLIDATED BALANCE SHEETS

	Unaudited
	June 30,			December 31,
	2021			2020
ASSETS
Current assets
Cash and cash equivalents	$	3,975,069		$	6,316,921
Short-term investments		14,524,249			–
Accounts receivable, net		6,527,109			7,458,383
Inventories, net		12,411,490			9,647,504
Prepaid expenses and other current assets		996,801			655,708
Total current assets		38,434,718			24,078,516
Property and equipment, net		3,218,341			3,487,178
Deposits and other		48,155			81,709
Deferred tax assets, net		3,485,709			3,698,593
Goodwill		7,120,510			7,120,510
Intangible assets, net		334,456			662,257
	$	52,641,889		$	39,128,763

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	4,149,482		$	976,420
Accrued expenses and other liabilities		3,036,793			3,481,444
Current portion of notes payable, net of debt discount of $0 and
$2,047, respectively		1,777,715			1,365,204
Current portion of related party notes payable, net of debt discount
of $0 and $6,726, respectively		–			199,943
Current portion of senior secured convertible note, net of debt discounts of $74,458 and $256,242, respectively		2,516,451			1,789,212
Total current liabilities		11,480,441			7,812,223
Senior secured convertible note, net of current portion and debt discounts of $0 and $14,107, respectively		–			531,347
Paycheck protection program note payable		–			1,499,360
Total liabilities		11,480,441			9,842,930
Commitments and contingencies
Stockholders’ equity
Common stock, $.0001 par value; 50,000,000 shares authorized;
18,538,689 and 16,684,424 shares issued and outstanding, respectively		1,854			1,668
Additional paid-in capital		41,037,948			30,758,354
Accumulated other comprehensive income		145,062			287,547
Accumulated deficit		(23,416	)		(1,761,736	)
Total stockholders’ equity		41,161,448			29,285,833
	$	52,641,889		$	39,128,763

ONE STOP SYSTEMS, INC. (OSS)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
Revenue	$	14,905,009		$	11,625,327		$	28,220,761		$	24,984,964
Cost of revenue		10,252,265			8,300,132			19,135,233			18,264,082
Gross profit		4,652,744			3,325,195			9,085,528			6,720,882
Operating expenses:
General and administrative		1,648,785			1,877,358			3,806,404			4,391,423
Marketing and selling		1,479,292			845,098			2,647,193			2,034,449
Research and development		1,008,017			1,008,625			1,840,250			2,212,050
Total operating expenses		4,136,094			3,731,081			8,293,847			8,637,922
Income (loss) from operations		516,650			(405,886	)		791,681			(1,917,040	)
Other income (expense), net:
Interest income		61,798			99,343			67,098			123,980
Interest expense		(169,031	)		(150,186	)		(319,013	)		(218,970	)
Other income (expense), net		1,522,998			3,056			1,494,369			(4,973	)
Total other income (expense), net		1,415,765			(47,787	)		1,242,454			(99,963	)
Income (loss) before income taxes		1,932,415			(453,673	)		2,034,135			(2,017,003	)
Provision (benefit) for income taxes		235,293			(441,511	)		295,815			(908,809	)
Net income (loss)	$	1,697,122		$	(12,162	)	$	1,738,320		$	(1,108,194	)

Net income (loss) per share:
Basic	$	0.09		$	(0.00	)	$	0.10		$	(0.07	)
Diluted	$	0.09		$	(0.00	)	$	0.09		$	(0.07	)
Weighted average common shares
outstanding:
Basic		18,513,620			16,488,325			17,934,022			16,410,660
Diluted		19,735,383			16,488,325			19,305,842			16,410,660

Source: One Stop Systems, Inc.

Release – Onconova Therapeutics Reports Second Quarter 2021 Financial Results And Provides Business Update

Posted on August 13, 2021 by Admin

Onconova Therapeutics Reports Second Quarter 2021 Financial Results And Provides Business Update

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

NEWTOWN, Pa., Aug. 12, 2021 (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, 2021 and provided a business update.

Highlights for the second quarter of 2021 and subsequent weeks include:

Enrollment in the first cohort of the Phase 1 solid tumor study of ON 123300 in the United States is complete with no dose limiting toxicities (DLT’s) observed. The second cohort is currently open for enrollment.
The Phase 1 solid tumor study of ON 123300 in China is ongoing with no DLT’s observed to date. The study is currently enrolling the third dose cohort.
The investigator-initiated Phase 1/2 study evaluating rigosertib in combination with the checkpoint inhibitor nivolumab in KRAS mutated non-small cell lung cancer (NSCLC) continues to progress. Initial data from the trial provide preliminary evidence of the anti-cancer activity of rigosertib-nivolumab combination therapy in patients who had previously failed all standard of care treatment, including checkpoint inhibition, and show that the maximum tolerated dose of rigosertib in combination with nivolumab was not yet determined in the three cohorts of the trial’s dose-escalation phase.
The first patient was dosed in an investigator-initiated Phase 2 study designed to assess the efficacy and safety of rigosertib in patients with recessive dystrophic epidermolysis bullosa (RDEB)-associated locally advanced/metastatic squamous cell carcinoma (SCC), an ultra-rare and invariably fatal condition.
The Company strengthened its management team with the appointment of Mark Gelder, M.D., as Chief Medical Officer.
Preclinical data published in the peer-reviewed journal Molecular Cancer show that rigosertib synergistically enhanced the efficacy of immune checkpoint blockade in a murine melanoma model via the induction of immune-mediated cancer cell death, supporting the continued clinical evaluation of rigosertib in combination with checkpoint inhibitors.

Management Commentary

“During the second quarter we achieved key clinical and corporate milestones,” said Steven M. Fruchtman, M.D., President and Chief Executive Officer of Onconova. “In our lead ON 123300 program, we initiated our U.S. Phase 1 study and recently opened enrollment to the second cohort, and our partner, HanX Biopharmaceuticals, is currently enrolling to the third dose cohort of the complementary Phase 1 study underway in China. Through these trials, which are evaluating different dosing administration regimens, we aim to inform the design of a future Phase 2 basket trial evaluating ON 123300 in multiple high unmet need indications, including CDK 4/6 inhibitor refractory HR+ HER2- metastatic breast cancer. Given ON 123300’s ability in preclinical studies to overcome resistance to the most widely prescribed CDK 4/6 inhibitor, we believe this novel multi-kinase inhibitor has the potential to be a best-in-class therapy for this and other cancers.”

Dr. Fruchtman continued, “Beyond our lead program, we also reported very encouraging preliminary results from the investigator-initiated study evaluating rigosertib plus nivolumab in advanced KRAS-mutated NSCLC. These results highlighted the doublet’s favorable safety profile and provided preliminary evidence of efficacy in an extremely challenging patient population. Additional preliminary data from the trial is expected to be presented at a RAS-focused medical meeting in September. Looking forward, we will continue to leverage investigator-initiated programs to further rigosertib’s clinical development, while maintaining our primary focus and resources on ON 123300. Milestones ahead for the remainder of the year include continued progress of our ON 123300 clinical trials, expansion of rigosertib investigator-initiated studies program, and potentially acquiring new assets to augment our pipeline. With a strong financial position and a talented management team that was recently bolstered by the appointment of Dr. Mark Gelder as CMO, we believe we are well positioned to take advantage of the product development opportunities presented.”

Second Quarter Financial Results

Cash and cash equivalents as of June 30, 2021 were $43.7 million, compared with $19.0 million as of December 31, 2020. The Company believes that its cash and cash equivalents will be sufficient to fund ongoing clinical trials and business operations for more than eighteen months.

Research and development expenses were $1.9 million for the second quarter of 2021, compared with $4.8 million for the second quarter of 2020. The decrease was primarily related to higher clinical trial and consulting expenses in the 2020 period due to the INSPIRE study.

General and administrative expenses were $2.9 million for the second quarter of 2021, compared with $2.6 million for the second quarter of 2020. The increase was primarily due to expenses related to special meetings by proxy in the 2021 period.

Net loss for the second quarter of 2021 was $4.2 million, or $0.27 per share on 15.8 million weighted average shares outstanding, compared with a net loss for the second quarter of 2020 of $7.4 million, or $0.65 per share on 11.3 million weighted average 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 2021, provide a business update and answer questions. Interested parties can participate by dialing (855) 428-5741 (domestic callers) or (210) 229-8823 (international callers) and using conference ID 3876025.

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 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-initiated study program, including in a dose-escalation and expansion Phase 1/2a investigator-initiated study targeting patients with KRAS+ non-small cell lung cancer with oral rigosertib in combination with nivolumab.

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,” “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, the timing of the Company’s annual stockholder meeting, 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:
Avi Oler
Onconova Therapeutics, Inc.
267-759-3680
[email protected]
https://www.onconova.com/contact/

Investor Contact:
Bruce Mackle
LifeSci Advisors, LLC
646-889-1200
[email protected]

(Tables to follow)



ONCONOVA THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets

(in thousands)
	June 30,			December 31,
		2021			2020
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	43,709		$	19,025
Receivables		27			37
Prepaid expenses and other current assets		457			722
Total current assets		44,193			19,784
Property and equipment, net		45			52
Other non-current assets		140			150
Total assets	$	44,378		$	19,986

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	4,290		$	4,833
Accrued expenses and other current liabilities		2,983			4,962
Deferred revenue		226			226
Total current liabilities		7,499			10,021
Warrant liability		530			321
Deferred revenue, non-current		3,356			3,469
Total liabilities		11,385			13,811

Stockholders’ equity:
Preferred stock		–			–
Common stock		158			124
Additional paid in capital		470,335			434,593
Accumulated other comprehensive income		2			14
Accumulated deficit		(437,502	)		(428,556	)
Total stockholders’ equity		32,993			6,175
Total liabilities and stockholders’ equity	$	44,378		$	19,986


ONCONOVA THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations (unaudited)

(in thousands, except share and per share amounts)

	Three Months Ended June 30,						Six months months ended June 30,
		2021			2020			2021			2020

Revenue	$	57		$	56		$	113		$	108
Operating expenses:
General and administrative		2,850			2,594			5,067			4,401
Research and development		1,852			4,801			3,789			8,171
Total operating expenses		4,702			7,395			8,856			12,572
Loss from operations		(4,645	)		(7,339	)		(8,743	)		(12,464	)

Change in fair value of warrant liability		427			(56	)		(209	)		(119	)
Other (loss) income, net		(13	)		–			6			96
Net loss		(4,231	)		(7,395	)		(8,946	)		(12,487	)
Net loss per share of common stock, basic and diluted	$	(0.27	)	$	(0.65	)	$	(0.59	)	$	(1.14	)
Basic and diluted weighted average shares outstanding		15,780,863			11,303,508			15,201,719			10,996,624

Debt Limit Debates Impact on Stocks and U.S. Credit Ratings

Posted on August 13, 2021 by Admin

Debt Ceiling Season’s Impact on Stocks and U.S. Credit Ratings

The debt ceiling wrestling match and the U.S. Treasury’s inability to meet the responsibilities of the U.S. Government are likely to cause higher market volatility in the coming months. The suspension of debt limits has just expired, this kicks off the 2021 season, and a note from Janet Yellen is about to make a lot of people concerned.

The debt ceiling (statutory debt limit) is the maximum amount of debt the United States can have outstanding in Treasury debt. The limit had been suspended in March of 2020 to keep the economy afloat by raising money through debt for businesses and individuals. The suspension was not indefinite and has recently expired.

The balance in the Treasury General Account (TGA), which is effectively the checking account for bill paying by the US government, has plunged from $1 trillion at the end of April, to $435 billion this week (August 12). This steep plunge in altitude was required to comply with the end of the statutes’ hiatus. In January, the Secretary of the Treasury Yellen said it would draw down the TGA from its then level of $1.6 trillion to $500 billion by this summer. On August 1, the existing debt ceiling became effective. According to the letter Yellen wrote to the House Speaker and Senate leaders there are immediate expenses that won’t be able to get paid.

In this letter to Congress concerning the US meeting entitlement obligations, Yellen spelled out to Congress some “extraordinary measures,” the Treasury will take to keep the US from defaulting. The three large government-funded retirement systems topped her list:

-The Civil Service Retirement and Disability Fund

-The Postal Service Retiree Health Benefits Fund.

-The Government Securities Investment Fund (G Fund) of the Thrift Savings Fund that are part of the Federal Employees’ Retirement System.

All entitlements above are required by law to be (eventually) funded and are expected to be made whole as money becomes available by Congress hiking the amount of debt the Treasury can borrow by issuing US Treasury obligations.

If the debt ceiling is not raised by Congress, (or taxes hiked and budgets slashed), this list will grow. At some point, if money isn’t made available there will be concern that the US Treasury won’t be able to meet its debt payments. This will draw a reaction by rating agencies and investors. For example, in August of 2011, the rating agency S&P cut the U.S. credit rating to AA+ and maintained a negative outlook. With the ratings change S&P analysts cited concerns of growing budget deficits. Rating downgrades typically cause investors (lenders) to seek higher interest rates for their new perceived risk.

Rating Agencies

Fitch, a Nationally Recognized Statistical Rating Organization (NRSRO), placed the US’s credit rating on negative outlook in July of 2020. Last month while reaffirming its AAA rating Fitch expressed heightened concern of financial activity they say will push the country further from a stabilized debt burden. The NRSRO said the US could be downgraded without a plan to balance debt and spending “in the post-pandemic phase.”

In June, Moody’s expressed its views about the US debt burden. “While the coronavirus pandemic has created unprecedented challenges for the US economy and exacerbated the pace of deterioration of the government’s fiscal position, Moody’s expects the US economy to recover over time and the sovereign’s credit profile to remain resilient to the shock,”

S&P, the third NRSRO covering US debt has a stable outlook on its AA+ rating. This maintained level is based on the dollar’s reserve status and institutional strengths, as well as the credibility of the Federal Reserve.

Looking Toward History for Guidance on Debt

The current year may not follow the pattern of other years as there have been many new and inventive financial strategies the US has taken to achieve goals over the past 18 months. However, this is what has generally happened each year over the decades (the statutory debt ceiling was enacted in 1917).

Since 1960, each time the debt ceiling needed to be raised by Congress to pay bills required by Congress, those involved in working out the solution let the activity go down to the wire thereby creating an emergency situation. Defaulting on Treasury debt would topple world bond and equity markets while likely strengthening some commodities like gold and silver. Each time this has happened concessions were made, the debt ceiling was either raised or extended (or suspended), and we moved on until the following year when debt ceiling season.

Take-Away

Debt ceiling season this year has all the ingredients it needs to be even more tumultuous. The government debt is viewed as excessive relative to GDP. Washington’s spending “guarantees” have grown dramatically, there are still some concerned about how ready workers are to return to work, and money is flowing from the Treasury’s checkbook at a pace of $100 billion per week.

During past years the talk of if there “will be a deal,” “will they vote on a deal,” “they have a deal but Congress is on vacation,” sends the stock market into a volatility-tizzy. There’s no reason to expect this year’s to not be disruptive.

Stay in touch with our updates on the economy, exciting industries, and company research by registering at no cost at Channelchek.

Paul Hoffman

Managing Editor, Channelchek

Suggested Reading:

What Metals Can Tell Us About the Economy

The Correlation Between Stocks and Unemployment

Metals & Mining – Second Quarter 2021 Review and Outlook

Energy Industry – 2021 2Q Review and Outlook

Sources:

https://home.treasury.gov/system/files/136/Debt-Limit-Letter-Congress_20210802_Pelosi.pdf

https://home.treasury.gov/news/press-releases/jy0304

https://www.federalreserve.gov/releases/h41/

https://www.bbc.com/news/world-us-canada-14428930

https://www.moodys.com/research/Moodys-affirms-United-States-Aaa-rating-maintains-stable-outlook–PR_423587

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Release – Harte Hanks Reports Second Quarter 2021 Financial Results

Posted on August 13, 2021 by Admin

Harte Hanks Reports Second Quarter 2021 Financial Results

Company posts increase in revenues and positive net income.

AUSTIN, Texas,
Aug. 12, 2021 /PRNewswire/ — Harte Hanks, Inc. (OTCQX: HRTH), an industry leader in data-driven, omnichannel marketing, today announced financial results for the second quarter ended June 30, 2021.

Second Quarter Operational and Financial Highlights

Revenues improved by 18% to
$49.3 million, compared to
$41.6 million in the same period last year.
Operating income of
$1.4 million, compared to operating loss of
($5.9) million in the same period last year.
Net income of
$10.6 million, compared to net loss of
($6.2) million in the same period last year.
EBITDA improved to
$2.1 million compared to
($4.8) million in the same period last year.¹
Adjusted EBITDA improved to
$4.4 million compared to
$480,000 in the same period last year.¹
On
June 23, 2021, the Company promoted Brian Linscott to Chief Executive Officer. Mr. Linscott has served as the Company’s Chief Operating Officer since
January 2020.

The second quarter results by segment were as follows:

1) Customer Care, $19.2 million in revenue, 39% of total – Revenue increased by
$4 million from the previous year quarter and year-over-year EBITDA improved to
$3.4 million from
$2.1 million. Customer Care continued to experience strong revenue tailwinds from COVID-related project work. New business wins for the quarter included a major regional sports network for streaming support and an expanded relationship with two media entertainment organizations.

2) Fulfillment & Logistics, $15.9 million in revenue, 32% of total – Revenue increased by
$2.5 million compared to the previous year quarter and year-over-year EBITDA improved to
$1.7 million from (
$1 million). The consolidation of Fulfillment operations into the
Kansas City facility resulted in increased margins for the quarter. New business wins for the quarter included product sampling campaigns for a Fortune 500 CPG company and fulfillment of branded product and apparel for a leading
U.S. tech company.

3) Marketing Services, $14.2 million revenue, 29% of total – Revenue increased by
$1.2 million compared to the previous year quarter and year-over-year EBITDA improved to
$1.7 million from
$1.2 million. New business wins for the quarter included a major global packaged goods company, a leading North American automotive parts retailer, and a national sports association.

Harte Hanks CEO, Brian Linscott, commented: “I want to thank our
Harte Hanks team for delivering another strong quarter with improvement across each of our business segments. We are excited about our new business wins and continued profitable growth and remain focused on executing margin improvement initiatives and identifying cost reduction opportunities across all segments. As a result, we believe our efforts will deliver significant incremental EBITDA improvement in 2022.” Mr. Linscott continued: “I am proud to work alongside our seasoned leadership team and look forward to building on the favorable progress we have made over the last two years.”

Second Quarter 2021 Results

Second quarter revenues were $49.3 million, up from
$41.6 million a year ago and up sequentially from
$43.8 million in the first quarter of 2021. Continued growth in our Customer Care segment led our second quarter performance.

Second quarter operating income was
$1.4 million, compared to an operating loss of (
$5.9) million in the second quarter of 2020. The improvement resulted from the Company’s revenue increases and cost reduction efforts, including a 10% reduction in advertising, selling, general and administrative expense as well as a 67% reduction in restructuring expense.

Second quarter Adjusted Operating Income² was
$3.7 million, compared to a loss of (
$563,000) in the second quarter of 2020. The improvement in Adjusted Operating Income reflects improved revenue and continued cost-cutting actions taken by management. Income attributable to common stockholders for the second quarter was $9.1 million, or $1.36 and
$1.27 per basic and diluted share, respectively. This includes a
$10 million gain on extinguishment of debt related to forgiveness of the Company’s PPP loan.

Conference Call Information

The Company will host a conference call and live webcast to discuss these results today at 4:30 p.m. EST. To access the live call, please dial (866) 548-4713 (toll free) or (323) 794-2093 and reference conference ID 6013966. The conference call will also be webcast live in the Investors Events section of the Harte Hanks website and can be accessed from the link here.

Following the conclusion of the live call, a telephonic replay will be available for 48 hours by dialing (844) 512-2921 or (412) 317-6671 and using the pin number 6013966. The replay will also be available for at least 90 days in the Investors Events section of the
Harte Hanks website.

Cautionary Note Regarding Forward-Looking Statements:

Our press release and related earnings conference call contain “forward-looking statements” within the meaning of U.S. federal securities laws. All such statements are qualified by this cautionary note, provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements other than historical facts are forward-looking and may be identified by words such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “seeks,” “could,” “intends,” or words of similar meaning. These forward-looking statements are based on current information, expectations and estimates and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from what is expressed in or indicated by the forward-looking statements. In that event, our business, financial condition, results of operations or liquidity could be materially adversely affected and investors in our securities could lose part or all of their investments. These risks, uncertainties, assumptions and other factors include: (a) local, national and international economic and business conditions, including (i) the outbreak of diseases, such as the COVID-19 coronavirus and new variants thereof, which has curtailed travel to and from certain countries and geographic regions, disrupted business operations and reduced consumer spending, (ii) market conditions that may adversely impact marketing expenditures and (iii) the impact of economic environments and competitive pressures on the financial condition, marketing expenditures and activities of our clients and prospects; (b) the demand for our products and services by clients and prospective clients, including (i) the willingness of existing clients to maintain or increase their spending on products and services that are or remain profitable for us, and (ii) our ability to predict changes in client needs and preferences; (c) economic and other business factors that impact the industry verticals we serve, including competition and consolidation of current and prospective clients, vendors and partners in these verticals; (d) our ability to manage and timely adjust our facilities, capacity, workforce and cost structure to effectively serve our clients; (e) our ability to improve our processes and to provide new products and services in a timely and cost-effective manner though development, license, partnership or acquisition; (f) our ability to protect our facilities against security breaches and other interruptions and to protect sensitive personal information of our clients and their customers; (g) our ability to respond to increasing concern, regulation and legal action over consumer privacy issues, including changing requirements for collection, processing and use of information; (h) the impact of privacy and other regulations, including restrictions on unsolicited marketing communications and other consumer protection laws; (i) fluctuations in fuel prices, paper prices, postal rates and postal delivery schedules; (j) the number of shares, if any, that we may repurchase in connection with our repurchase program; (k) unanticipated developments regarding litigation or other contingent liabilities; (l) our ability to complete anticipated divestitures and reorganizations, including cost-saving initiatives; (m) our ability to realize the expected tax refunds; and (n) other factors discussed from time to time in our filings with the Securities and Exchange Commission, including under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 which was filed on March 24, 2021. The forward-looking statements in this press release and our related earnings conference call are made only as of the date hereof, and we undertake no obligation to update publicly any forward-looking statement, even if new information becomes available or other events occur in the future.

Supplemental Non-GAAP Financial Measures:

The Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). In this press release and our related earnings conference call, however, the Company may use certain non-GAAP measures of financial performance in order to provide investors with a better understanding of operating results and underlying trends to assess the Company’s performance and liquidity. We have presented herein a reconciliation of these measures to the most directly comparable GAAP financial measure.

The Company presents the non-GAAP financial measure “Adjusted Operating Income (Loss)” as a measure useful to both management and investors in their analysis of the Company’s financial results because it facilitates a period-to-period comparison of Operating Revenue and Operating Income (Loss) by excluding restructuring expense, impairment expense and stock-based compensation. The most directly comparable measure for this non-GAAP financial measure is Operating Income (Loss).

The Company also presents the non-GAAP financial measure “Adjusted EBITDA” as a supplemental measure of operating performance in order to provide an improved understanding of underlying performance trends. The Company defines “Adjusted EBITDA” as earnings before interest expense net , income tax expense (benefit), depreciation expense, restructuring expense, impairment expense, stock-based compensation expense, and other non-cash expenses. The most directly comparable measure for Adjusted EBITDA is Net Income (Loss). We believe Adjusted EBITDA is an important performance metric because it facilitates the analysis of our results, exclusive of certain non-cash items, including items which do not directly correlate to our business operations; however, we urge investors to review the reconciliation of non-GAAP Adjusted EBITDA to the comparable GAAP Net Income (Loss), which is included in this press release, and not to rely on any single financial measure to evaluate the Company’s financial performance.

The foregoing measures do not serve as a substitute and should not be construed as a substitute for GAAP performance, but provide supplemental information concerning our performance that our investors and we find useful. The Company evaluates its operating performance based on several measures, including these non-GAAP financial measures. The Company believes that the presentation of these non-GAAP financial measures in this press release and earnings conference call presentations are useful supplemental financial measures of operating performance for investors because they facilitate investors’ ability to evaluate the operational strength of the Company’s business. However, there are limitations to the use of these non-GAAP measures, including that they may not be calculated the same by other companies in our industry limiting their use as a tool to compare results. Any supplemental non-GAAP financial measures referred to herein are not calculated in accordance with GAAP and they should not be considered in isolation or as substitutes for the most comparable GAAP financial measures.

EBITDA is the Company’s measure of segment profitability. For additional information please see the Company’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2021.

About Harte Hanks:

Harte Hanks (OTCMKTS: HRTH) is a global omnichannel customer experience company. We work with clients to define, execute, and optimize their customer journey through our Marketing Services, Customer Care, and Fulfillment and Logistics offerings. From visionary thinking to tactical execution,
Harte Hanks partners with some of the world’s most respected brands to create unforgettable customer experiences, including
Bank of America, Cisco, IBM, Pfizer, Sony and
Ford, among others. Headquartered in
Austin, Texas,
Harte Hanks has more than 2,000 employees in offices across the
Americas,
Europe and
Asia Pacific.

As used herein, ”
Harte Hanks” or “the Company” refers to Harte Hanks, Inc. and/or its applicable operating subsidiaries, as the context may require.
Harte Hanks’ logo and name are trademarks of Harte Hanks.

Investor Relations Contact:
Sheila Ennis
Abernathy MacGregor
415-745-3294
[email protected]

¹	EBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Supplemental Non-GAAP Financial Measures” below. EBITDA is also the Company’s measure of segment profitability. For additional information please see the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021.
²	Adjusted Operating Income is a non-GAAP financial measure. See “Supplemental Non-GAAP Financial Measures” below.

Harte Hanks, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
	Three Months Ended June 30,		Six Months Ended June 30,
In thousands, except per share data	2021	2020	2021	2020
Revenues	$ 49,259	$ 41,601	$ 93,013	$ 82,123
Operating expenses
Labor	28,366	25,613	54,718	49,561
Production and distribution	12,460	10,518	23,729	23,764
Advertising, selling, general and administrative	4,591	5,093	8,712	11,041
Restructuring expense	1,744	5,219	3,942	6,585
Depreciation expense	663	1,043	1,361	2,164
Total operating expenses	47,824	47,486	92,462	93,115
Operating Income (loss)	1,435	(5,885)	551	(10,992)
Other expenses (income), net
Interest expense, net	155	298	423	609
Gain on extinguishment of debt (Paycheck Protection Program Term Note)	(10,000)	–	(10,000)	–
Other, net	456	1,570	471	2,327
Total other (income) expenses, net	(9,389)	1,868	(9,106)	2,936
Income (loss) before income taxes	10,824	(7,753)	9,657	(13,928)
Income tax expense (benefit)	255	(1,518)	846	(12,811)
Net income (loss)	10,569	(6,235)	8,811	(1,117)
Less Preferred Stock dividends	124	123	246	247
Less: Earnings attributable to participating securities	1,361	–	1,118	–
Income (loss) attributable to common stockholders	$ 9,084	$ (6,358)	$ 7,447	$ (1,364)


Income (loss) per common share
Basic	$ 1.36	$ (0.99)	$ 1.12	$ (0.21)
Diluted	$ 1.27	$ (0.99)	$ 1.05	$ (0.21)

Weighted-average common shares outstanding
Basic	6,686	6,453	6,669	6,386
Diluted	7,193	6,453	7,131	6,386

Harte Hanks, Inc.
Reconciliations of Non-GAAP Financial Measures (Unaudited)
	Three Months Ended June 30,		Six Months Ended June 30,
In thousands, except per share data	2021	2020	2021	2020
Net Income (loss)	$ 10,569	$ (6,235)	$ 8,811	$ (1,117)
Gain on extinguishment of debt	(10,000)	–	(10,000)	–
Income tax expense (benefit)	255	(1,518)	846	(12,811)
Interest expense, net	155	298	423	609
Other, net	456	1,570	471	2,327
Depreciation expense	663	1,043	1,361	2,164
EBITDA	$ 2,098	$ (4,842)	$ 1,912	$ (8,828)

Restructuring expense	1,744	5,219	3,942	6,585
Stock-based compensation	541	103	763	319
Adjusted EBITDA	$ 4,383	$ 480	$ 6,617	$ (1,924)


Operating income (loss)	$ 1,435	$ (5,885)	$ 551	$ (10,992)
Restructuring expense	1,744	5,219	3,942	6,585
Stock-based compensation	541	103	763	319
Adjusted operating income (loss)	$ 3,720	$ (563)	$ 5,256	$ (4,088)
Adjusted operating margin (a)	7.6%	(1.4)%	5.7%	(5.0)%

(a) Adjusted Operating Margin equals Adjusted Operating Income (loss) divided by Revenues.

Harte Hanks, Inc.
Condensed Consolidated Balance Sheets (Unaudited)

In thousands, except per share data	June 30, 2021	December 31, 2020

ASSETS
Current Assets
Cash and cash equivalents	$ 19,291	$ 29,408
Restricted cash	3,681	4,154
Accounts receivable (less allowance for doubtful accounts of $351 at June 30, 2020 and $241 at December 31, 2020)	47,735	41,533
Contract assets	338	613
Prepaid expenses	3,032	2,256
Prepaid income tax and income tax receivable	7,487	7,388
Other current assets	905	886
Total current assets	82,469	86,238

Net property, plant and equipment	6,033	5,878
Right-of-use assets	22,566	24,750
Other assets	2,629	2,632
Total assets	$ 113,697	$ 119,498

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable and accrued expenses	$ 16,981	$ 16,294
Accrued payroll and related expenses	8,123	5,248
Short-term debt	–	4,926
Deferred revenue and customer advances	5,959	4,661
Customer postage and program deposits	6,005	6,497
Other current liabilities	2,678	2,903
Short-term lease liabilities	6,870	6,663
Total current liabilities	46,616	47,192

Long-term debt	13,100	22,174
Pensions	65,298	67,490
Long-term lease liabilities	19,085	21,295
Other long-term liabilities	2,434	4,747
Total liabilities	146,533	162,898

Preferred Stock	9,723	9,723

Stockholders’ deficit
Common stock	12,121	12,121
Additional paid-in capital	336,938	383,043
Retained earnings	804,934	796,123
Less treasury stock	(1,132,075)	(1,178,799)
Accumulated other comprehensive loss	(64,477)	(65,611)
Total stockholders’ deficit	(42,559)	(53,123)

Total liabilities, Preferred Stock and stockholders’ deficit	$ 113,697	$ 119,498

Harte Hanks, Inc.
Statement of Operations by Segments (Unaudited)

Quarter ended June 30,	Marketing Services	Customer Care	Fulfillment & Logistics Services	Restructuring	Unallocated Corporate	Total
			(In thousands)
2021
Revenues	$ 14,208	$ 19,191	$ 15,860	$ —	$ —	$ 49,259
Segment Operating Expense	$ 11,377	$ 15,138	$ 13,426	$ —	$ 5,476	$ 45,417
Restructuring	$ —	$ —	$ —	$ 1,744	$ —	$ 1,744
Contribution margin	$ 2,831	$ 4,053	$ 2,434	$ (1,744)	$ (5,476)	$ 2,098
Overhead Allocation	$ 1,105	$ 703	$ 779	$ —	$ (2,587)	$ —
EBITDA	$ 1,726	$ 3,350	$ 1,655	$ (1,744)	$ (2,889)	$ 2,098
Depreciation	$ 144	$ 203	$ 192	$ —	$ 124	$ 663
Operating income (loss)	$ 1,582	$ 3,147	$ 1,463	$ (1,744)	$ (3,013)	$ 1,435



2020
Revenues	$ 12,965	$ 15,227	$ 13,409	$ —	$ —	$ 41,601
Segment Operating Expense	$ 10,479	$ 12,226	$ 13,450	$ —	$ 5,069	$ 41,224
Restructuring	$ —	$ —	$ —	$ 5,219	$ —	$ 5,219
Contribution margin	$ 2,486	$ 3,001	$ (41)	$ (5,219)	$ (5,069)	$ (4,842)
Overhead Allocation	$ 1,286	$ 873	$ 973	$ —	$ (3,132)	$ —
EBITDA	$ 1,200	$ 2,128	$ (1,014)	$ (5,219)	$ (1,937)	$ (4,842)
Depreciation	$ 140	$ 240	$ 495	$ —	$ 168	$ 1,043
Operating income (loss)	$ 1,060	$ 1,888	$ (1,509)	$ (5,219)	$ (2,105)	$ (5,885)

View original content to download multimedia:https://www.prnewswire.com/news-releases/harte-hanks-reports-second-quarter-2021-financial-results-301354687.html

SOURCE
Harte Hanks, Inc.

Release – Schwazze to Host Second Quarter 2021 Conference Call Webcast – August 16 2021

Posted on August 13, 2021 by Admin

Schwazze to Host Second Quarter 2021 Conference Call & Webcast – August 16, 2021

DENVER, Aug. 12, 2021 /PRNewswire/ – Schwazze, (OTCQX: SHWZ) (“Schwazze” or the “Company”), announces that it will host a second quarter 2021 conference call and webcast on August 16, 2021 at 4:30 p.m. ET.

Q2 2021 Webcast

Investors and stakeholders may participate in the conference call by dialing 416 764 8650 or by dialing North American toll free 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 30, 2021, and may be accessed by dialing 888-390-0541 / Code 605725#.

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://produceredition.webcasts.com/starthere.jsp?ei=1481988&tp_key=212e8e52ee 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) is building the premier vertically integrated cannabis company in Colorado and plans to take its operating system to other states where it can develop a differentiated 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 best 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.

Investors
Joanne Jobin
Investor Relations
[email protected]
647 964 0292

Media
Julie Suntrup, Schwazze
Vice President | Marketing & Merchandising
[email protected]
303 371 0387

SOURCE Medicine Man Technologies, Inc.

Release – Gevo Reports Second Quarter 2021 Financial Results

Posted on August 13, 2021 by Admin

Gevo Reports Second Quarter 2021 Financial Results

ENGLEWOOD, Colo., Aug. 12, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) today announced financial results for the second quarter of 2021 and recent corporate highlights.

Recent Corporate Highlights

On August 9, 2021, Gevo announced that its wholly-owned renewable natural gas (“RNG”) project company, Gevo NW Iowa RNG, LLC (“Gevo RNG”), has signed binding, definitive agreements with BP Canada Energy Marketing Corp. and BP Products North America Inc. for the sale of RNG. The RNG project is on schedule and on budget with an anticipated startup early 2022. Beginning in late 2022, Gevo RNG expects to generate cash distributions to Gevo of approximately $9 to $16 million per year.
On August 2, 2021, Gevo announced the appointment of Jaime Guillen to its Board of Directors. Mr. Guillen is a Managing Partner at Faros Infrastructure Partners LLC, an investment firm with offices in the United Kingdom, the United States and Mexico.
On April 15, 2021, Gevo closed the offering of $68,155,000 in 2021 Bonds to finance the construction of its renewable natural gas project in Iowa.

2021 Second Quarter Financial Highlights

Ended the quarter with cash, cash equivalents, restricted cash and marketable securities totaling $567.2 million compared to $525.3 as of the end of Q1 2021 and $6.3 million as of the end of Q2 2020

Revenue of $0.4 million for the quarter compared to $1.0 million in Q2 2020
Loss from operations (which includes $5.5 million of preliminary stage project costs for Net-Zero 1) of ($19.0) million for the quarter compared to ($5.3) million in Q2 2020
Non-GAAP cash EBITDA loss ¹of ($17.1) million for the quarter compared to ($3.1) million in Q2 2020
Net loss per share of ($0.09) for the quarter compared to ($0.40) in Q2 2020
Non-GAAP adjusted net loss per share ²of ($0.09) for the quarter compared to ($0.39) in Q2 2020

Commenting on the second quarter of 2021 and recent corporate events, Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer, said “The engineering and design work for our Net-Zero 1 Project is going well. We are figuring out the optimizations and integrations for Net-Zero 1, and how to generate more cash sooner. We are looking forward to completing the next phase of the engineering work in December of this year and moving forward towards getting the financing closed in the first half of next year.”

Second Quarter 2021 Financial Results

Revenue for the three months ended June 30, 2021 was $0.4 million compared with $1.0 million in the same period in 2020.

During the three months ended June 30, 2021, hydrocarbon revenue was $0.3 million compared with $0.9 million in the same period in 2020. Hydrocarbon sales decreased because of lower production volumes at Gevo’s demonstration plant at the South Hampton Resources, Inc. facility in Silsbee, Texas (the “South Hampton Facility”). Gevo’s hydrocarbon revenue is comprised of sales of sustainable aviation fuel and renewable premium gasoline.

As a result of COVID-19 and in response to an unfavorable commodity environment, Gevo terminated its production of ethanol and distiller grains in March 2020. As previously announced, Gevo’s production facility in Luverne, Minnesota (the “Luverne Facility”) is currently producing isobutanol. During the second half of 2021, Gevo expects to send finished isobutanol from the Luverne Facility to the South Hampton Facility so that renewable premium gasoline or jet fuel can be produced.

Cost of goods sold was $2.8 million for the three months ended June 30, 2021, compared with $2.6 million in the same period in 2020. Cost of goods sold includes $1.6 million associated with the maintenance of the Luverne and South Hampton Facilities and approximately $1.2 million in depreciation expense for the three months ended June 30, 2021.

Gross loss was $2.4 million for the three months ended June 30, 2021, compared with a $1.7 million gross loss in the same period in 2020.

Research and development expense increased by $0.7 million during the three months ended June 30, 2021 compared with the same period in 2020, due primarily to an increase in personnel and consultant expenses as we work to improve our process for growing and fermenting yeast strains.

Selling, general and administrative expense increased by $2.1 million during the three months ended June 30, 2021, compared with the same period in 2020, due primarily to increases in personnel, professional fees and insurance to support the growth in operations and an increase in consulting related to creating our first Environmental, Social and Governance (“ESG”) report, which will be released during the third quarter 2021, and documenting our compliance with Section 404(b) of the Sarbanes-Oxley Act.

Preliminary stage project costs increased by $5.3 million during the three months ended June 30, 2021, compared with the same period in 2020, due primarily to increased consulting for preliminary engineering costs, depreciation of the right of use assets related the agreements with the fuel supply and lease agreements and personnel expenses to support the growth in business activity at our Net-Zero projects.

Loss from operations in the three months ended June 30, 2021 was ($19.0) million, compared with a ($5.3) million loss from operations in the same period in 2020.

Non-GAAP cash EBITDA loss ³in the three months ended June 30, 2021 was ($17.1) million, compared with a ($3.1) million non-GAAP cash EBITDA loss in the same period in 2020.

Interest expense has decreased by $0.5 million in the three months ended June 30, 2021 as compared to the same period in 2020, due to the conversion of all of Gevo’s 12% convertible senior secured notes due 2020/2021 to common stock during 2020.

In the three months ended June 30, 2021, Gevo recognized net non-cash gain totaling less than $0.1 million due to changes in the fair value of certain of its financial instruments, such as warrants.

Gevo incurred a net loss for the three months ended June 30, 2021 of ($18.3) million, compared with a net loss of ($6.0) million during the same period in 2020. Non-GAAP adjusted net loss ⁴for the three months ended June 30, 2021 was ($18.3) million, compared with a non-GAAP adjusted net loss of ($5.8) million during the same period in 2020.

Cash, cash equivalents, restricted cash and marketable securities at June 30, 2021 was $567.2 million compared to $525.3 as of the end Q1 2021.

Webcast and Conference Call Information

Hosting today’s conference call at 4:30 p.m. EDT (2:30 p.m. MDT) will be Dr. Patrick R. Gruber, Chief Executive Officer, L. Lynn Smull, Chief Financial Officer, Carolyn M. Romero, Chief Accounting Officer, and Geoffrey T. Williams, Jr., Vice President – General Counsel & Secretary. They will review Gevo’s financial results and provide an update on recent corporate highlights.

To participate in the conference call, please dial 1 (833) 729-4776 (inside the U.S.) or 1 (830) 213-7701 (outside the U.S.) and reference the access code 2267135# or through the event weblink https://edge.media-server.com/mmc/p/8w4ypxhw .

A replay of the call and webcast will be available two hours after the conference call ends on August 12, 2021. To access the replay, please dial 1 (855) 859-2056 (inside the U.S.) or 1 (404) 537-3406 (outside the U.S.) and reference the access code 2267135#. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com .

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented, technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, Gevo’s Net-Zero Projects, Gevo’s RNG Project, the engineering and design work for the Net-Zero 1 Project, Gevo’s offtake agreements, Gevo’s plans to develop its business, Gevo’s ability to successfully construct and finance its operations and growth projects, Gevo’s ability to achieve cash flow from its planned projects, the ability of Gevo’s products to contribute to lower greenhouse gas emissions, particulate and sulfur pollution and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Non-GAAP Financial Information

This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (GAAP), including non-GAAP cash EBITDA loss, non-GAAP adjusted net loss and non-GAAP adjusted net loss per share. Non-GAAP cash EBITDA loss excludes depreciation and amortization and non-cash stock-based compensation. Non-GAAP adjusted net loss and adjusted net loss per share excludes non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of Gevo’s financial instruments, such as warrants, convertible debt and embedded derivatives . Management believes these measures are useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below.

¹Cash EBITDA loss is a non-GAAP measure calculated by adding back depreciation and amortization and non-cash stock compensation to GAAP loss from operations. A reconciliation of cash EBITDA loss to GAAP loss from operations is provided in the financial statement tables following this release.

²Adjusted net loss per share is a non-GAAP measure calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives, to GAAP net loss per share. A reconciliation of adjusted net loss per share to GAAP net loss per share is provided in the financial statement tables following this release.

³Cash EBITDA loss is a non-GAAP measure calculated by adding back depreciation and amortization and non-cash stock compensation to GAAP loss from operations. A reconciliation of cash EBITDA loss to GAAP loss from operations is provided in the financial statement tables following this release.

⁴Adjusted net loss is a non-GAAP measure calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives, to GAAP net loss. A reconciliation of adjusted net loss to GAAP net loss is provided in the financial statement tables following this release.

Gevo, Inc.

Condensed Consolidated Balance Sheets Information

(Unaudited, in thousands, except share and per share amounts)

	June 30, 2021			December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	17,085		$	78,338
Marketable securities (current)		246,886			?
Restricted cash (current)		57,645			?
Accounts receivable		847			527
Inventories		2,216			2,491
Prepaid expenses and other current assets		4,497			1,914
Total current assets		329,176			83,270

Property, plant and equipment, net		79,243			66,408
Long-term marketable securities		175,169			?
Long-term restricted cash		70,464			?
Operating right-of-use asset		1,770			133
Financing right-of-use asset		27,491			176
Deposits and other assets		2,361			2,112
Total assets	$	685,674		$	152,099

Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	16,393		$	3,943
Operating lease liabilities (current)		?			172
Finance lease liabilities (current)		4,888			10
Loans payable – other (current)		174			807
Total current liabilities		21,455			4,932

2021 Bonds payable (long-term)		66,120			?
Loans payable – other (long-term)		394			447
Operating lease liabilities (long-term)		1,783			?
Financing lease liabilities (long-term)		19,715			162
Other long-term liabilities		84			179
Total liabilities		109,551			5,720

Commitments and Contingencies

Stockholders’ Equity
Common Stock, $0.01 par value per share; 250,000,000 authorized, 197,964,476 and 128,138,311 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively.		1,980			1,282
Additional paid-in capital		1,100,932			643,269
Accumulated other comprehensive loss		(307	)		?
Accumulated deficit		(526,482	)		(498,172	)
Total stockholders’ equity		576,123			146,379
Total liabilities and stockholders’ equity	$	685,674		$	152,099

Gevo, Inc.

Condensed Consolidated Statements of Operations Information

(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020
Revenue and cost of goods sold
Ethanol sales and related products, net	$	?		$	83		$	?		$	3,783
Hydrocarbon revenue		346			859			359			984
Grant and other revenue		76			46			156			46
Total revenues		422			988			515			4,813

Cost of goods sold		2,794			2,644			4,788			10,783

Gross loss		(2,372	)		(1,656	)		(4,273	)		(5,970	)

Operating expenses
Research and development expense		1,404			677			2,782			1,257
Selling, general and administrative expense		4,820			2,698			8,692			5,325
Preliminary stage project costs		5,472			221			8,199			377
Loss on disposal of assets		4,954			?			4,954			38
Restructuring expenses		?			5			?			304
Total operating expenses		16,650			3,601			24,627			7,301

Loss from operations		(19,022	)		(5,257	)		(28,900	)		(13,271	)

Other income (expense)
Gain on forgiveness of SBA loan		641			?			641			?
Interest Expense		(6	)		(541	)		(11	)		(1,086	)
(Loss) on modification of 2020 Notes		?			(57	)		?			(726	)
Gain (loss) from change in fair value of derivative warrant liability		43			1			(10	)		8
(Loss) from change in fair value of 2020/21 Notes embedded derivative liability		?			(176	)		?			(276	)
Other income (expense)		91			(13	)		(30	)		55
Total other income (expense), net		769			(786	)		590			(2,025	)

Net loss	$	(18,253	)	$	(6,043	)	$	(28,310	)	$	(15,296	)

Net loss per share – basic and diluted	$	(0.09	)	$	(0.40	)	$	(0.15	)	$	(1.04	)
Weighted-average number of common shares outstanding – basic and diluted		198,137,420			15,071,105			190,892,223			14,771,952

Gevo, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020

Net Loss	$	(18,253	)	$	(6,043	)	$	(28,310	)	$	(15,296	)
Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale securities, net of tax		(307	)		?			(307	)		?
Total change in unrealized gains (losses) on marketable securities		(307	)		?			(307	)		?

Comprehensive Loss	$	(18,560	)	$	(6,043	)	$	(28,617	)	$	(15,296	)

Gevo, Inc.

Condensed Consolidated Statements of Stockholders’ Equity Information

(Unaudited, in thousands, except share amounts)

	Common Stock					Paid-In Capital			Accumulated Other Comprehensive Loss			Accumulated Deficit			Stockholders’ Equity
	Shares		Amount			Paid-In Capital			Accumulated Other Comprehensive Loss			Accumulated Deficit			Stockholders’ Equity

Balance, December 31, 2020	128,138,311		$	1,282		$	643,269		$	–		$	(498,172	)	$	146,379

Issuance of common stock, net of issue costs	68,170,579			682			457,008			–			–			457,690
Issuance of common stock upon exercise of warrants	1,863,058			18			1,099			–			–			1,117
Non-cash stock-based compensation	–			–			562			–			–			562
Issuance of common stock under stock plans, net of taxes	(121,499	)		(1	)		1			–			–			–
Net loss	–			–			–			–			(10,057	)		(10,057	)

Balance, March 31, 2021	198,050,449			1,981			1,101,939			–			(508,229	)		595,691

Issuance of common stock, net of issue costs	–			–			(45	)		–			–			(45	)
Issuance of common stock upon exercise of warrants	3,700			–			4			–			–			2
Non-cash stock-based compensation	–			–			858			–			–			858
Issuance of common stock under stock plans, net of taxes	(89,673	)		(1	)		(1,824	)		–			–			(1,823	)
Other comprehensive loss	–			–			–			(307	)		–			(307	)
Net loss	–			–			–			–			(18,253	)		(18,253	)

Balance, June 30, 2021	197,964,476		$	1,980		$	1,100,932		$	(307	)	$	(526,482	)	$	576,123

Balance, December 31, 2019	14,083,232		$	141		$	530,349		$	–		$	(457,986	)	$	72,504

Issuance of common stock, net of issue costs	425,776			4			902			–			–			906
Non-cash stock-based compensation	–			–			336			–			–			336
Issuance of common stock under stock plans, net of taxes	105,882			–			–			–			–			–
Net loss	–			–			–			–			(9,253	)		(9,253	)

Balance, March 31, 2020	14,614,890			145			531,587			–			(467,239	)		64,493

Issuance of common stock, net of issue costs	917,345			9			1,238			–			–			1,247
Non-cash stock-based compensation	–			–			497			–			–			497
Issuance of common stock under stock plans, net of taxes	(18,137	)		–			(307	)		–			–			(307	)
Net loss	–			–			–			–			(6,043	)		(6,043	)

Balance, June 30, 2020	15,514,098		$	154		$	533,015		$	–		$	(473,282	)	$	59,887

Gevo, Inc.

Condensed Consolidated Cash Flow Information

(Unaudited, in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021				2020
Operating Activities
Net Loss	$	(18,253	)	$	(6,043	)	$	(28,310		)	$	(15,296		)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss (gain) from change in fair value of derivative warrant liability		(43	)		(1	)		10				(8		)
Loss from change in fair value of 2020/21 Notes and 2020 Notes embedded derivative liability		?			176				?			276
Loss on sales of property, plant and equipment		4,954			38			4,954				38
(Gain) from forgiveness of SBA PPP loans		(641	)		?			(641		)			?
Stock-based compensation		692			501			1,617				673
Depreciation and amortization		1,223			1,629			2,372				3,278
Non-cash lease expense		(75	)		14			(58		)		29
Non-cash interest expense		?			243			2				393
Other non-cash expenses		5			?			5					?
Changes in operating assets and liabilities:
Accounts receivable		(755	)		(594	)		(320		)		389
Inventories		236			201			275				721
Prepaid expenses and other current assets, deposits and other assets:		1,131			331			(3,142		)		164
Accounts payable, accrued expenses and long-term liabilities		(777	)		(338	)		3,768				(1,475		)
Net cash used in operating activities		(12,303	)		(3,843	)		(19,468		)		(10,818		)

Investing Activities
Acquisitions of property, plant and equipment		(9,537	)		(817	)		(14,167		)		(1,607		)
Purchase of marketable securities		(422,362	)		?			(422,362		)			?
Net cash used in investing activities		(431,899	)		(817	)		(436,529		)		(1,607		)

Financing Activities
Proceeds from issuance of 2021 Bonds		68,995			?			68,995					?
Debt and equity offering costs		(3,074	)		(63	)		(34,757		)		(115		)
Proceeds from issuance of common stock and common stock warrants		(1,824	)		1,313			487,549				2,271
Proceeds from the exercise of warrants		2			?			1,119					?
Net settlement of common stock under stock plans		27			(156	)			?			(310		)
Payments on secured debt		(53	)		(392	)		(53		)		(392		)
Proceeds from SBA loans		?			1,006				?			1,006
Net cash provided by financing activities		64,073			1,708			522,853				2,460

Net increase (decrease) in cash and cash equivalents		(380,129	)		(2,952	)		66,856				(9,965		)

Cash, cash equivalents, and restricted cash
Beginning of period		525,323			9,289			78,338				16,302

End of period	$	145,194		$	6,337		$	145,194			$	6,337

Gevo, Inc.

Reconciliation of GAAP to Non-GAAP Financial Information

(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
Non-GAAP Cash EBITDA		2021			2020			2021			2020

Loss from operations	$	(19,022	)	$	(5,257	)	$	(28,900	)	$	(13,271	)
Depreciation and amortization		1,223			1,629			2,372			3,278
Stock-based compensation		692			501			1,617			673
Non-GAAP cash EBITDA	$	(17,107	)	$	(3,127	)	$	(24,911	)	$	(9,320	)

Non-GAAP Adjusted Net Loss

Net Loss	$	(18,253	)	$	(6,043	)	$	(28,310	)	$	(15,296	)
Adjustments:
(Loss) on modification of 2020 Notes		?			(57	)		?			(726	)
Gain (loss) from change in fair value of derivative warrant liability		43			1			(10	)		8
(Loss) from change in fair value of 2020/21 Notes and 2020 Notes embedded derivative liability		?			(176	)		?			(276	)
Total adjustments		43			(232	)		(10	)		(994	)
Non-GAAP Net Income (Loss)	$	(18,296	)	$	(5,811	)	$	(28,300	)	$	(14,302	)
Non-GAAP adjusted net loss per share – basic and diluted	$	(0.09	)	$	(0.39	)	$	(0.15	)	$	(0.97	)
Weighted-average number of common shares outstanding – basic and diluted		198,137,420			15,071,105			190,892,223			14,771,952

Investor and Media Contact

+1 720-647-9605

[email protected]

Kelly Services Inc. (KELYA) – Recovery Continuing Reinstates Dividend

Posted on August 13, 2021 by Admin

Friday, August 13, 2021

Kelly Services Inc. (KELYA)
Recovery Continuing; Reinstates Dividend

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

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

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

2Q21. Revenue of $1.26 billion was up 29% year-over-year (26.2% in constant currency) driven by increased customer demand as the economy recovers and a 310 bp impact from Softworld. Kelly reported operating earnings of $13.7 million, up 24.1% y-o-y, and up 29.3% sequentially. GAAP EPS for 2Q21 was $0.60 compared to $1.04 in 2Q20. Adjusted EPS for the second quarter was $0.49 versus $0.51 last year. We had projected revenue of $1.25 billion and adjusted EPS of $0.32.

Demand Continues to Rebound. Kelly saw strong demand across all of its operating segments in the quarter. P&I revenues rose 14.8% y-o-y, SET rose 20.6%, Education was up 322.1%, OCG revenues rose 28.2%, and International revenues were up 31.6% y-o-y. Operating earnings rose in each segment, with the exception of P&I …

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 – ProMIS Neurosciences Announces Second Quarter 2021 Results

Posted on August 12, 2021 by Admin

ProMIS Neurosciences Announces Second Quarter 2021 Results

TORONTO, Ontario and CAMBRIDGE, Massachusetts – August 12, 2021 – ProMIS Neurosciences, Inc. (TSX: PMN) (OTCQB: ARFXF) (“ProMIS or the Company”), a biotechnology company focused on the discovery and development of antibody therapeutics targeting toxic oligomers implicated in the development of neurodegenerative diseases, today announced its operational and financial results for the three and six months ended June 30, 2021.

ProMIS Neurosciences is applying its patented technology platform to build a portfolio of antibody therapies, therapeutic vaccines, and diagnostics in neurodegenerative diseases, including Alzheimer’s disease (AD) and other dementias, Parkinson’s Disease (PD), and amyotrophic lateral sclerosis (ALS).

These diseases share a common biologic cause – misfolded versions of proteins, that otherwise perform a normal function, kill neurons and produce disease.

ProMIS’ technology platform is an example of the advances in drug discovery enabled by computational power, in silico discovery, and/or artificial intelligence. This platform provides an advantage in either selectively targeting the toxic misfolded proteins with therapeutics or detecting them with diagnostics. This capability has given ProMIS a growing portfolio of potential “best in class” monoclonal antibodies (or corresponding therapeutic vaccines), including our lead program PMN310, targeting toxic oligomers of amyloid in AD.

Corporate Highlights

On May 21, 2021, we re-initiated the path to Investigational New Drug application for PMN310 in AD with the start of producer cell line development. This key first step in the manufacturing of antibody therapeutics is being carried out by Selexis, SA, using Selexis’ proprietary SUREtechnology Platform™.
On June 3, 2021, the Company announced that it had filed a preliminary Prospectus with the securities regulators in each of the provinces and territories of Canada, except Quebec. The Prospectus will allow the Company to make offerings of common shares, warrants, units, debt securities, subscription receipts, convertible securities or any combination thereof for up to an aggregate total of US$50 million during the 25-month period that the Prospectus is effective.
On July 8, 2021, the Company announced that it had filed, and obtained a receipt for the Prospectus with the securities regulators in each of the provinces and territories of Canada, except Quebec.
On July 2, 2021, the Company announced the voting results of the Company’s annual meeting of shareholders held on June 30, 2021, in Vancouver, British Columbia, Canada. All resolutions described in the Management Proxy Circular and placed before the meeting were approved by the shareholders.

People

On May 12, 2021, Dr. Rudolph Tanzi, Ph.D., was appointed as the Chair of the Company’s Scientific Advisory Board. Dr. Tanzi is the Joseph P. and Rose F. Kennedy Professor of Neurology at Harvard University and Vice-Chair of Neurology, Director of the Genetics and Aging Research Unit, and Co-Director of the Henry and Allison McCance Center for Brain Health at Massachusetts General Hospital.
On May 13, 2021, we appointed Neil K. Warma, to the Company’s Board of Directors. Neil Warma has been a healthcare entrepreneur for over 25 years having managed and advised numerous biotechnology and pharmaceutical companies.
On May 25, 2021, the Company appointed Owen Dempsey to lead the commercialization program for its COVID-19 serology assay.
On May 27, 2021, Dr. David Wishart, Distinguished University Professor in the Departments of Biological Sciences and Computing Science at the University of Alberta, was appointed as Chief Physics Officer at ProMIS.

Financial Results

Results of Operations – Three months ended June 30, 2021 and 2020

Net Loss for the three months ended June 30, 2021 were $297,346 compared to $1,650,218 for the three months ended June 30, 2020. Included in the net loss amount for the three months ended June 30, 2021, was non-cash expenses/(income) of ($1,049,745) representing the change in the fair value of the embedded derivative of ($1,245,388), share-based compensation of $180,392, amortization of property and equipment and an intangible asset of $12,252 compared to $76,310 for the three months ended June 30, 2020, consisting of share-based compensation of $74,642 and amortization of an intangible asset of $1,668.

Operating loss for the three months ended June 30, 2021 was $1,378,603, as compared to $1,650,218 in the three months ended June 30, 2020. The decrease in the operating loss for the three months ended June 30, 2021, reflects decreased contracted salaries and associated costs of $350,622 due to reduction in compensation to management and attrition of contract staff, decreased investor relations of $203,971 due to scale down of investor relations activities and consultants and foreign exchange gains of $233,874 due to the foreign exchange on US denominated assets and liabilities offset by increased costs associated with external contract research organizations for internal programs of $172,518 as the company restarts the internal programs, share-based compensation of $105,749 due to the grant of share options, increased patent expense of $40,162 due to increased maintenance fees, increased legal expense of $45,752, increased consulting expense of $137,522, increase in amortization of property and equipment and intangible asset of $13,584 and decreased revenue of $1,565.

Research and development expenses for the three months ended June 30, 2021 were $1,065,197, as compared to $898,887 in the three months ended June 30, 2020. The increase in research and development expense for the three months ended June 30, 2021, compared to the same period ended June 30, 2020, is primarily attributed to increased costs associated with external contract research organizations for internal programs of $172,518 as the company restarts the internal programs, increased share-based compensation of $28,579 due to the grant of share options, increased patent expense of $40,162 due to increased maintenance fees ,increased outside consultants of $137,706 and increase in amortization of property and equipment and intangible asset of $13,584 offset by decreased contracted research salaries and associated costs of $226,238 due to reduction in compensation to management and attrition of contract staff.

General and administrative expenses for the three months ended June 30, 2021 were $313,406, as compared to $752,896 in the three months ended June 30, 2020. The decrease for the three months ended June 30, 2021, compared to the same period in 2020, is primarily attributable to a reduction in contracted corporate salaries and associated costs of $124,383 due to reduction in compensation to management and attrition of contracted staff, decreased investor relations of $203,971 due to scale down of investor relations activities and consultants and foreign exchange gains of $233,874 due to the foreign exchange on US denominated assets and liabilities offset by share-based compensation of $77,171 due to the grant of share options, and increased legal expense of $45,752.

Results of Operations – Six months ended June 30, 2021 and 2020

Net loss for the six months ended June 30, 2021 were $7,896,763 compared to $3,412,137 for the six months ended June 30, 2020. Included in the net loss amount for the six months ended June 30, 2021, was non-cash expense $5,909,542, representing the change in the fair value of the embedded derivative of $5,766,915, share-based compensation of $112,123, amortization of property and equipment and an intangible asset of $30,504 for the six months ended June 30, 2021, compared to $290,048 for the six months ended June 30, 2020, consisting of share-based compensation of $286,712 and amortization of an intangible asset of $3,336.

Operating loss for the six months ended June 30, 2021 was $1,960,934, as compared to $3,412,137 in the six months ended June 30, 2020. The decrease in the operating loss for the six months ended June 30, 2021, reflects decreased contract salaries and associated costs of $924,565 due to reduction in compensation to management and attrition of contracted staff, decreased investor relations of $380,959 due to scale down of investor relation activities and consultants, decreased share-based compensation of $174,589 due to forfeiture of unvested/vested share options due to termination of consulting arrangement and foreign exchange gains of $293,012 due to the foreign exchange on US denominated offset by increased costs associated with external contract research organizations for internal programs of $88,673 as the company restarts the internal programs, increased patent expense of $3,617 due to increased maintenance fees, increased legal expense of $99,572, increased consulting expense of $101,315, increase in amortization of property and equipment and intangible asset of $27,168 and decreased revenue of $1,578.

Research and development expenses for the six months ended June 30, 2021 were $1,259,120, as compared to $1,872,473 in the six months ended June 30, 2020. The decrease in research and development expense for the six months ended June 30, 2021, compared to the same period ended June 30, 2020, reflects the conservation of cash resources and decreased contract salaries and associated costs of $673,785 due to reduction in compensation to management and attrition of contracted staff and decreased share-based compensation of $145,459 due to forfeiture of unvested/vested share options due to termination of consulting arrangement offset by increased costs associated with external contract research organizations for internal programs of $88,673 as the company restarts the internal programs, increased patent expense of $3,617 due to increased maintenance fees, increased consulting expense of $86,435 and increase in amortization of property and equipment and intangible asset of $27,168.

General and administrative expenses for the six months ended June 30, 2021 were $701,814, as compared to $1,541,242 in the six months ended June 30, 2020. The decrease for the six months ended June 30, 2021, compared to the same period in 2020, is primarily attributable to a reduction in contract salaries and associated costs of $250,780 due to reduction in compensation to management and attrition of contracted staff, decreased investor relations of $380,959 due to scale down of investor relation activities and consultants, decreased share-based compensation of $29,129 due to forfeiture of unvested/vested share options due to termination of consulting arrangement and foreign exchange gains of $293,012 due to the foreign exchange on US-denominated offset by the increased legal expense of $99,572 and increased consulting expense of $14,880.

Outlook

Going forward ProMIS will focus on accelerating or re-initiating programs in our core business area, best-in-class therapeutics for neurodegenerative diseases. In addition, we will continue to expand the application of our unique discovery platform, with which we can “rationally design” antibodies or vaccines to be selective for only mis-folded, pathogenic proteins involved in disease.

In Alzheimer’s we will restart IND enabling work for PMN310, our antibody highly selective for toxic oligomers of amyloid. That selectivity may prove to give PMN310 significant competitive advantages in safety and efficacy over products from Biogen, Lilly, and Eisai that appear to provide benefit slowing the progression of Alzheimer’s disease. In addition, starting with the same proprietary technology that creates selective antibodies (“passive” immunotherapy), we are moving forward our program to create therapeutic vaccines (“active” immunotherapy) targeting toxic oligomers of amyloid. Therapeutic vaccines may be a preferred therapy for Alzheimer’s prevention; the ultimate goal in Alzheimer’s treatment is to detect disease in the ~20 year window before symptoms arise and treat to prevent symptoms of cognitive decline.

In ALS we will advance our program targeting toxic TDP-43 with further in vitro and in vivo validation, and we will build on the significant scientific advances we have made targeting RACK1 (Receptor for A Activated C Kinase 1). We will also further advance our alpha-synuclein program with further in vivo and in vitro validation, targeting diseases like Parkinson’s disease and Multiple System Atrophy.

About ProMIS Neurosciences, Inc.

ProMIS Neurosciences, Inc. is a development stage biotechnology company focused on discovering and developing antibody therapeutics selectively targeting toxic oligomers implicated in the development and progression of neurodegenerative diseases, in particular Alzheimer’s disease (AD), amyotrophic lateral sclerosis (ALS) and Parkinson’s disease (PD). The Company’s proprietary target discovery engine is based on the use of two complementary techniques. The Company applies its thermodynamic, computational discovery platform -ProMIS and Collective Coordinates – to predict novel targets known as Disease Specific Epitopes on the molecular surface of misfolded proteins. Using this unique approach, the Company is developing novel antibody therapeutics for AD, ALS and PD. ProMIS is headquartered in Toronto, Ontario, with offices in Cambridge, Massachusetts. ProMIS is listed on the Toronto Stock Exchange under the symbol PMN, and on the OTCQB Venture Market under the symbol ARFXF.

Visit us at www.promisneurosciences.com, follow us on Twitter and LinkedIn

For Investor Relations please contact:
Alpine Equity Advisors
Nicholas Rigopulos, President
[email protected]
Tel. 617 901-0785

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Release – Comtech Telecommunications Corp. Awarded $3.6 Million in Contracts for Military X-band SSPAs

Posted on August 12, 2021 by Admin

Comtech Telecommunications Corp. Awarded $3.6 Million in Contracts for Military X-band SSPAs

MELVILLE, N.Y.–(BUSINESS WIRE)–Aug. 12, 2021–
August 12, 2021—
Comtech Telecommunications Corp. (NASDAQ: CMTL), a global leading provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today, that during its fourth quarter of fiscal 2021, it was awarded multiple contracts aggregating
$3.6 million from a
U.S. system integrator for X-band SSPAs and BUCs for transportable satellite communication terminals.

Secure and available satellite communications are required to support all phases of a mission from the command center to the tactical edge. Comtech’s X-band SSPAs and BUCs are rugged and compact, supporting voice, video and data communications among dispersed elements of the battle force.

“Comtech’s SSPAs and BUCs have a proven heritage across multiple military systems and operate with high reliability in certified terminals around the globe,” said Fred Kornberg, Chairman of the Board and Chief Executive Officer of
Comtech Telecommunications Corp. “We are pleased with the ongoing success of these transportable terminals.”

Comtech, a world leader in high-power amplifiers, manufactures a wide variety of tube-based and solid-state power amplifiers for military and commercial satellite uplink applications. The product range encompasses power levels from 8 W to 3 kW, with frequency coverage in sub-bands within the 2 GHz to 52 GHz spectrum. Amplifiers are available for fixed and ground-based, shipboard, and airborne mobile applications. Please visit www.xicomtech.com for more information.

Comtech Telecommunications Corp. is a leading provider of next-generation 911 emergency systems and critical wireless communication technologies to commercial and government customers around the world. Headquartered in
Melville, New York and with a passion for customer success,
Comtech designs, produces and markets advanced and secure wireless solutions to customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such
Securities and Exchange Commission filings.

Comtech Investor Relations:
631-962-7005
[email protected]

Source:
Comtech Telecommunications Corp.

Release – Euroseas Ltd. Reports Results for the Six-Month Period and Quarter Ended June 30 2021 and Announces Three-year Charter for its Vessel MV Diamantis P.

Posted on August 12, 2021 by Admin

Euroseas Ltd. Reports Results for the Six-Month Period and Quarter Ended June 30, 2021 and Announces Three-year Charter for its Vessel, M/V Diamantis P.

ATHENS, Greece, Aug. 11, 2021 (GLOBE NEWSWIRE) — Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today its results for the three and six month periods ended June 30, 2021.

Second Quarter 2021 Financial Highlights:

Total net revenues of $18.3 million. Net income of $7.9 million and net income attributable to common shareholders (after a $0.1 million dividend on Series B Preferred Shares and a $0.3 million of preferred deemed dividend arising out of the redemption of approximately $6.4 million of Series B Preferred Shares in the second quarter of 2021) of $7.6 million or $1.12 and $1.11 earnings per share basic and diluted, respectively. Adjusted net income attributable to common shareholders¹ for the period was $7.6 million or $1.12 per share basic and diluted.
Adjusted EBITDA¹ was $10.3 million.
An average of 14.00 vessels were owned and operated during the second quarter of 2021 earning an average time charter equivalent rate of $14,853 per day.

First Half 2021 Financial Highlights:

Total net revenues of $32.6 million. Net income of $11.7 million; net income attributable to common shareholders (after a $0.3 million of dividend on Series B Preferred Shares and a $0.3 million of preferred deemed dividend arising out of the redemption of approximately $8.4 million of Series B Preferred Shares in the first half of 2021) of $11.1 million or $1.65 and $1.64 earnings per share basic and diluted, respectively. Adjusted net income attributable to common shareholders¹ for the period was $10.7 million or $1.58 and $1.57 per share basic and diluted, respectively.
Adjusted EBITDA¹ was $15.9 million.
An average of 14.00 vessels were owned and operated during the first half of 2021 earning an average time charter equivalent rate of $13,523 per day.

New Charter for M/V Diamantis

The Company announced today a new time charter contract for its container vessel M/V “Diamantis P”, a 2,008 teu vessel built in 1998. The vessel was chartered for a period between a minimum of thirty-six (36) and a maximum of forty (40) months at the option of the charterer, at a gross daily rate of $27,000. The new rate, which is more than four times higher than the vessel’s current charter rate, will commence between October 5, 2021 and October 15, 2021, after the vessel completes its upcoming drydocking.

¹ Adjusted EBITDA, Adjusted net income and Adjusted earnings per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for Euroseas financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Other Developments

During the second quarter of 2021, the holders of the Company’s Series B Preferred Shares (“Series B shares”) converted all the remaining Series B shares into shares of common stock as per the terms of the Series B shares. As a result of the conversion, Euroseas issued 453,044 common shares to the holders of the Series B shares for the outstanding amount of $6.365 million. Following the conversion of the Series B shares into common stock, the Company’s Director Mr. Christian Donohue, originally appointed to the Board by Tennenbaum Capital Partners, LLC / Blackrock, Inc. as Series B director and, recently, re-elected as director, resigned from Board in accordance to Blackrock Inc. policy.
In June,2021, the Company signed a term sheet with a bank to draw a loan of $10.0 million with M/V “Aegean Express” and M/V “EM Corfu” as collateral. The loan is expected to be drawn in the fourth quarter of 2021 and it will partly refinance the balloon payment of $12.1 million due in November 2021.

Aristides Pittas, Chairman and CEO of Euroseas commented: “Containership markets, both charter rates and secondhand prices, have continued unabated their upward path that started in the fall of last year reaching all time highs in all size segments. Selected short term “fill-the-gap” charters have been reported in extremely high levels while long term charters of two to five years are widely offered by charterers for the various types and ages of vessels. There is no doubt that part of the near term increase in demand for vessels is fueled by the inefficiencies brought about by the effects of the COVID pandemic in the transportation system, in addition to rebounding trade growth. However, the strong demand for securing capacity for the medium and longer term can only come from expectations that vessel capacity will be in short supply in view of the expected demand. We believe that the favorable market fundamentals will continue as incremental regulatory requirements coming in 2023 will further restrict the effective supply of vessels and assist in absorbing increased new deliveries starting from the latter part of 2023 onwards as a result of recently placed newbuilding orders.

“Chartering-wise, we have pursued to-date a staggered expiration strategy which has allowed us to follow the upward path of the market having charters coming due for renewal on a rolling basis. Today, we announced the three-year long charter of our vessel, Diamantis P., at a rate of $27,000 per day which will provide us with more than $28.5 million of contracted revenues and $21 million EBITDA during the term of the charter. As the containership markets keep their present levels or continue to rise, we expect our profitability to rise as well, in addition to providing increased visibility of our earnings which now extends into next year and in 2023.

“Our broader strategy is to build Euroseas in a key long term participant in the feeder/intermediate containership segment as evidenced with the placement of our order to build two 2,800 teu vessels to be delivered in the first half of 2023. In that spirit, we continue to evaluate additional uses of any accumulated earnings for the benefit of our shareholders, like, expanding in a risk measured and accretive manner, targeting to use our public listing as a potential platform to consolidate privately owned vessels or fleets or rewarding our shareholders by re-instituting common stock dividends.”

Tasos Aslidis, Chief Financial Officer of Euroseas commented: “The results of the second quarter of 2021 reflect the increased charter rates our vessels earned due to the major recovery of the market compared to the same period of 2020, despite the decrease in the number of vessels we operated during the second quarter of 2021 to 14 vessels, from 19 vessels operated during the same period last year. Our net revenues increased to $18.3 million in the second quarter of 2021 compared to $13.5 million during the same period of last year. On a per-vessel-per-day basis, our vessels earned a 57.0% higher average charter rate in the second quarter of 2021 as compared to the same period of 2020. Our results have also benefitted from other operating income of $1.1 million, net, mainly consisting of the proceeds of a claim award related to the sale of one of our vessels, M/V “Manolis P”, for scrap in March 2020 that initially failed due to COVID-related reasons with the vessel finally being sold to another buyer within the second quarter of 2020.

“Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, averaged $6,860 per vessel per day during the second quarter of 2021 as compared to $6,120 per vessel per day for the same quarter of last year, and $6,887 per vessel per day for the first half of 2021 as compared to $6,003 per vessel per day for the same period of 2020, reflecting a 12.1% and 14.7% increase, respectively, which was attributable to increased supply of stores, increase in hull and machinery insurance premiums and the increased crewing costs for our vessels resulting from difficulties in crew rotation due to COVID-19 related restrictions.

“Adjusted EBITDA during the second quarter of 2021 was $10.3 million versus $4.4 million in the second quarter of last year. As of June 30, 2021, our outstanding debt (excluding the unamortized loan fees) was $62.0 million versus restricted and unrestricted cash of $11.0 million. As of the same date, our scheduled bank debt repayments over the next 12 months amounted to about $20.1 million (excluding the unamortized loan fees), and we are in compliance with all our loan covenants.”

Second Quarter 2021 Results:
For the second quarter of 2021, the Company reported total net revenues of $18.3 million representing a 35.4% increase over total net revenues of $13.5 million during the second quarter of 2020 which was a result of the increased market charter rates our vessels earned in the second quarter of 2021 compared to the same period of 2020. The Company reported a net income for the period of $7.9 million and a net income attributable to common shareholders of $7.6 million, as compared to a net income of $1.3 million and a net income attributable to common shareholders of $1.1 million, respectively, for the same period of 2020. Drydocking expenses amounted to $0.1 million during the second quarter of 2021 related to certain expenses incurred in connection with upcoming drydockings. In the corresponding period of 2020, one vessel passed its intermediate survey in-water and another vessel its special survey in-water for a total cost of $0.4 million. Depreciation expenses for the second quarter of 2021 amounted to $1.6 million compared to $1.7 million for the same period of 2020, due to the decreased number of vessels in the Company’s fleet. Vessel operating expenses were $6.9 million in the second quarter of 2021 as compared to $8.5 million for the second quarter of 2020. The decreased amount is due to the lower number of vessels owned and operated in the second quarter of 2021 compared to the corresponding period of 2020, partly offset by the increased crewing costs for our vessels compared to the same period of 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions, the increased supply of stores and the increase in hull and machinery insurance premiums. General and administrative expenses amounted to $0.7 million for the second quarter of 2021, marginally lower compared to $0.8 million for the second quarter of 2020. On average, 14.0 vessels were owned and operated during the second quarter of 2021 earning an average time charter equivalent rate of $14,853 per day compared to 19.0 vessels in the same period of 2020 earning on average $9,458 per day.

Interest and other financing costs for the second quarter of 2021 amounted to $0.7 million compared to $1.1 million for the same period of 2020. This decrease is due to the decreased amount of debt and the decrease in weighted average LIBOR rate in the current period compared to the same period of 2020.

Adjusted EBITDA for the second quarter of 2021 was $10.3 million compared to $4.4 million achieved during the second quarter of 2020.

Basic and diluted earnings per share attributable to common shareholders for the second quarter of 2021 was $1.12 and $1.11, calculated on 6,778,829 basic and 6,826,305 diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $0.20 for the second quarter of 2020, calculated on 5,576,960 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized loss on derivative, the adjusted earnings attributable to common shareholders for the quarter ended June 30, 2021 would have been $1.12 per share basic and diluted, compared to adjusted earnings of $0.25 per share basic and diluted for the quarter ended June 30, 2020, after excluding unrealized loss on derivative, amortization of below market time charters acquired and loss on write down of vessel held for sale. Usually, security analysts do not include the above item in their published estimates of earnings per share.

First Half 2021 Results:
For the first half of 2021, the Company reported total net revenues of $32.6 million representing a 12.6% increase over total net revenues of $28.9 million during the first half of 2020, as a result of the higher average charter rates our vessels earned during the period as compared to the same period of last year. The Company reported a net income for the period of $11.7 million and a net income attributable to common shareholders of $11.1 million, as compared to a net income of $3.2 million and a net income attributable to common shareholders of $2.9 million respectively, for the first half of 2020. Depreciation expenses for the first half of 2021 were $3.2 million compared to $3.4 million during the same period of 2020. On average, 14.0 vessels were owned and operated during the first half of 2021 earning an average time charter equivalent rate of $13,523 per day compared to 19.0 vessels in the same period of 2020 earning on average $9,541 per day.

Interest and other financing costs for the first half of 2021 amounted to $1.4 million compared to $2.4 million for the same period of 2020. This decrease is due to the decreased amount of debt and the decrease in weighted average LIBOR rate of our bank loans in the current period compared to the same period of 2020.

Adjusted EBITDA for the first half of 2021 was $15.9 million compared to $8.4 million achieved during the first half of 2020.

Basic and diluted earnings per share attributable to common shareholders for the first half of 2021 was $1.65 calculated on 6,745,305 basic and $1.64, calculated on 6,789,718 diluted weighted average number of shares outstanding compared to basic and diluted earnings per share of $0.52 for the first half of 2020, calculated on 5,576,960 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the income attributable to common shareholders for the first half of the year of the unrealized gain on derivative, the adjusted earnings per share attributable to common shareholders for the six-month period ended June 30, 2021 would have been $1.58 and $1.57, basic and diluted, respectively, compared to adjusted earnings of $0.42 per share basic and diluted for the same period in 2020, after excluding unrealized loss on derivative, amortization of below market time charters acquired and loss on write down of vessel held for sale. As mentioned above, usually, security analysts do not include the above items in their published estimates of earnings per share.

Fleet Profile:

The Euroseas Ltd. fleet profile is as follows:

Name	Type		Dwt	TEU	Year Built	*Employment()**	TCE Rate ($/day)
Container Carriers
AKINADA BRIDGE⁽^*)	Intermediate		71,366	5,610	2001	TC until Oct-21 TC until Oct-22	$17,250 $20,000
SYNERGY BUSAN⁽^*)	Intermediate		50,726	4,253	2009	TC until Aug-21 TC until Aug-24	$12,000 $25,000
SYNERGY ANTWERP⁽^*)	Intermediate		50,726	4,253	2008	TC until Sep-23	$18,000
SYNERGY OAKLAND⁽⁺⁾	Intermediate		50,787	4,253	2009	TC until Oct-21	CONTEX(**) 4250 less 10%
SYNERGY KEELUNG⁽⁺⁾	Intermediate		50,969	4,253	2009	TC until Jun-22 plus 8- 12 months option	$11,750 option $14,500
EM KEA⁽^*)	Feeder		42,165	3,100	2007	TC until May-23	$22,000
EM ASTORIA⁽⁺⁾	Feeder		35,600	2,788	2004	TC until Feb-22	$18,650
EVRIDIKI G⁽⁺⁾	Feeder		34,677	2,556	2001	TC until Jan-22	$15,500
EM CORFU⁽⁺⁾	Feeder		34,654	2,556	2001	TC until Sep-21	$10,200
DIAMANTIS P⁽⁺⁾^(*)	Feeder		30,360	2,008	1998	TC until Sep- 21 then from Oct-21 until Oct-24	$6,500 then $27,000
EM SPETSES⁽^*)	Feeder		23,224	1,740	2007	TC until Aug-24	$29,500
EM HYDRA⁽^*)	Feeder		23,351	1,740	2005	TC until Apr-23	$20,000
JOANNA⁽^*)	Feeder		22,301	1,732	1999	TC until Oct-22	$16,800
AEGEAN EXPRESS⁽^*)	Feeder		18,581	1,439	1997	TC until Mar-22	$11,500
Total Container Carriers on the Water	14		539,487	42,281

Vessels under construction		Type	Dwt	TEU	To be delivered
H4201		Feeder	37,237	2,800	Q1 2023
H4202		Feeder	37,237	2,800	Q2 2023

Note:
(*) TC denotes time charter. Charter duration indicates the earliest redelivery date; All dates listed are the earliest redelivery dates under each TC unless the contract rate is lower than the current market rate in which cases the latest redelivery date is assumed; vessels with the latest redelivery date shown are marked by (+).
(**) The CONTEX (Container Ship Time Charter Assessment Index) has been published by the Hamburg and Bremen Shipbrokers’ Association (VHBS) since October 2007. The CONTEX is a company-independent index of time charter rates for container ships. It is based on assessments of the current day charter rates of six selected container ship types, which are representative of their size categories: Type 1,100 TEU and Type 1,700 TEU with a charter period of one year, and the Types 2,500, 2,700, 3,500 and 4,250 TEU all with a charter period of two years.

Summary Fleet Data:

	Three months, ended June 30, 2020		Three months, ended June 30, 2021		Six months, ended June 30, 2020		Six months, ended June 30, 2021
FLEET DATA
Average number of vessels (1)	19.00		14.00		19.00		14.00
Calendar days for fleet (2)	1,729.0		1,274.0		3,458.0		2,534.0
Scheduled off-hire days incl. laid-up (3)	210.3		0.0		210.3		0.0
Available days for fleet (4) = (2) – (3)	1,518.7		1,274.0		3,247.7		2,534.0
Commercial off-hire days (5)	81.6		0.0		99.8		0.0
Operational off-hire days (6)	3.9		1.1		69.7		42.3
Voyage days for fleet (7) = (4) – (5) – (6)	1,433.2		1,272.9		3,078.2		2,491.7
Fleet utilization (8) = (7) / (4)	94.4	%	99.9	%	94.8	%	98.3	%
Fleet utilization, commercial (9) = ((4) – (5)) / (4)	94.6	%	100.0	%	96.9	%	100.0	%
Fleet utilization, operational (10) = ((4) – (6)) / (4)	99.7	%	99.9	%	97.9	%	98.3	%

AVERAGE DAILY RESULTS
Time charter equivalent rate (11)	9,458		14,853		9,541		13,523
Vessel operating expenses excl. drydocking expenses (12)	5,665		6,279		5,544		6,295
General and administrative expenses (13)	455		581		459		592
Total vessel operating expenses (14)	6,120		6,860		6,003		6,887
Drydocking expenses (15)	210		116		109		91

(1) Average number of vessels is the number of vessels that constituted the Company’s fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of the Company’s fleet during the period divided by the number of calendar days in that period.

(2) Calendar days. We define calendar days as the total number of days in a period during which each vessel in our fleet was in our possession including off-hire days associated with major repairs, drydockings or special or intermediate surveys or days of vessels in lay-up. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during that period.

(3) The scheduled off-hire days including vessels laid-up, vessels committed for sale or vessels that suffered unrepaired damages are days associated with scheduled repairs, drydockings or special or intermediate surveys or days of vessels in lay-up, or of vessels that were committed for sale or suffered unrepaired damages.

(4) Available days. We define available days as the Calendar days in a period net of scheduled off-hire days including laid up. We use available days to measure the number of days in a period during which vessels were available to generate revenues.

(5) Commercial off-hire days. We define commercial off-hire days as days a vessel is idle without employment.

(6) Operational off-hire days. We define operational off-hire days as days associated with unscheduled repairs or other off-hire time related to the operation of the vessels.

(7) Voyage days. We define voyage days as the total number of days in a period during which each vessel in our fleet was in our possession net of commercial and operational off-hire days. We use voyage days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes.

(8) Fleet utilization. We calculate fleet utilization by dividing the number of our voyage days during a period by the number of our available days during that period. We use fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs or days waiting to find employment.

(9) Fleet utilization, commercial. We calculate commercial fleet utilization by dividing our available days net of commercial off-hire days during a period by our available days during that period.

(10) Fleet utilization, operational. We calculate operational fleet utilization by dividing our available days net of operational off-hire days during a period by our available days during that period.

(11) Time charter equivalent rate, or TCE rate, is a measure of the average daily revenue performance of our vessels. Our method of calculating TCE is determined by dividing time charter revenue and voyage charter revenue net of voyage expenses by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, or are related to repositioning the vessel for the next charter. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters, pool agreements and bareboat charters) under which the vessels may be employed between the periods. Our definition of TCE may not be comparable to that used by other companies in the shipping industry.

(12) Daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and management fees are calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period. Drydocking expenses are reported separately.

(13) Daily general and administrative expense is calculated by dividing general and administrative expenses by fleet calendar days for the relevant time period.

(14) Total vessel operating expenses, or TVOE, is a measure of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses, management fees and general and administrative expenses; drydocking expenses are not included. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

(15) Drydocking expenses include expenses during drydockings that would have been capitalized and amortized under the deferral method divided by the fleet calendar days for the relevant period. Drydocking expenses could vary substantially from period to period depending on how many vessels underwent drydocking during the period. The Company expenses drydocking expenses as incurred.

Conference Call and Webcast:
Tomorrow, August 12, 2021 at 9:00 a.m. Eastern Time, the Company’s management will host a conference call and webcast to discuss the results.

Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote “Euroseas” to the operator.

To listen to the archived audio file, visit our website http://www.euroseas.gr and click on Company Presentations under our Investor Relations page. The audio replay of the conference call will remain available until Wednesday, August 18, 2021.

Audio webcast – Slides Presentation:
There will be a live and then archived audio webcast of the conference call, via the internet through the Euroseas website (www.euroseas.gr). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. A slide presentation on the Second Quarter 2021 results in PDF format will also be available 10 minutes prior to the conference call and webcast accessible on the company’s website (www.euroseas.gr) on the webcast page. Participants to the webcast can download the PDF presentation.

Euroseas Ltd.
Unaudited Consolidated Condensed Statements of Operations
(All amounts expressed in U.S. Dollars – except number of shares)

	Three Months Ended June 30,		Three Months Ended June 30,			Six Months Ended June 30,		Six Months Ended June 30,
	2020		2021			2020		2021
	(unaudited)					(unaudited)
Revenues
Time charter revenue	14,135,109		19,057,379			30,266,431		33,973,743
Commissions	(626,398	)	(766,732		)	(1,324,913	)	(1,373,981	)
Net revenues	13,508,711			18,290,647		28,941,518		32,599,762

Operating expenses
Voyage expenses	580,496		150,573			895,049		277,982
Vessel operating expenses	8,482,050		6,937,767			16,530,150		13,802,119
Drydocking expenses	362,783		147,175			376,369		229,384
Vessel depreciation	1,659,641		1,596,543			3,386,726		3,193,086
Related party management fees	1,313,546		1,061,816			2,642,368		2,148,221
Other operating income	(2,688,194	)	(1,080,000		)	(2,688,194	)	(1,296,496	)
General and administrative expenses	785,890		739,674			1,588,266		1,500,651
Loss on sale of vessel	–		–			–		9,417
Loss on write down of vessel held for sale	121,165		–			121,165		–
Total operating expenses	10,617,377		9,553,548			22,851,899		19,864,364

Operating income	2,891,334		8,737,099			6,089,619		12,735,398

Other income/(expenses)
Interest and other financing costs	(1,137,609	)	(687,360		)	(2,389,021	)	(1,381,667	)
(Loss) / gain on derivative, net	(468,146	)	(96,765		)	(468,146	)	388,145
Foreign exchange gain / (loss)	555		(7,263		)	2,183		(7,504	)
Interest income	4,185		740			12,780		1,954
Other expenses, net	(1,601,015	)	(790,648		)	(2,842,204	)	(999,072	)
Net income	1,290,319		7,946,451			3,247,415		11,736,326
Dividend Series B Preferred shares	(179,507	)	(117,055		)	(339,069	)	(255,324	)
Preferred deemed dividend	–		(259,067		)	–		(345,423	)
Net income attributable to common shareholders	1,110,812		7,570,329			2,908,346		11,135,579
Weighted average number of shares, basic	5,576,960		6,778,829			5,576,960		6,745,305
Earnings per share, basic	0.20		1.12			0.52		1.65
Weighted average number of shares, diluted	5,576,960		6,826,305			5,576,960		6,789,718
Earnings per share, diluted	0.20		1.11			0.52		1.64

Euroseas Ltd.
Unaudited Consolidated Condensed Balance Sheets
(All amounts expressed in U.S. Dollars – except number of shares)

	December 31, 2020	June 30, 2021

ASSETS
Current Assets:
Cash and cash equivalents	3,559,399	8,267,771
Trade accounts receivable, net	2,013,023	1,536,746
Other receivables	1,866,624	2,525,962
Inventories	1,662,422	1,530,069
Restricted cash	345,010	876,187
Prepaid expenses	244,315	442,307
Total current assets	9,690,793	15,179,042
Fixed assets:
Vessels, net	98,458,447	95,598,016
Long-term assets:
Restricted cash	2,433,768	1,900,000
Derivative	–	230,640
Total assets	110,583,008	112,907,698

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities:
Long-term bank loans, current portion	20,645,320	14,993,800
Related party loan, current	2,500,000	–
Trade accounts payable	2,854,377	2,219,766
Accrued expenses	1,300,420	1,158,617
Accrued preferred dividends	168,676	332,393
Deferred revenue	949,364	883,129
Due to related company	24,072	747,680
Derivative	203,553	322,741
Total current liabilities	28,645,782	20,658,126

Long-term liabilities:
Long-term bank loans, net of current portion	46,220,028	46,699,188
Derivative	362,195	–
Total long-term liabilities	46,582,223	46,699,188
Total liabilities	75,228,005	67,357,314

Mezzanine equity:
Series B Preferred shares (par value $0.01, 20,000,000 shares authorized, 8,365 and nil issued and outstanding, respectively)	8,019,636			–
Shareholders’ equity:
Common stock (par value $0.03, 200,000,000 shares authorized, 6,708,946 and 7,244,891, issued and outstanding)	201,268			217,347
Additional paid-in capital	257,467,980			264,531,339
Accumulated deficit	(230,333,881		)	(219,198,302	)
Total shareholders’ equity	27,335,367			45,550,384
Total liabilities, mezzanine equity and shareholders’ equity	110,583,008			112,907,698

Euroseas Ltd.
Unaudited Consolidated Condensed Statements of Cash Flows
(All amounts expressed in U.S. Dollars)

	Six Months Ended June 30,		Six Months Ended June 30,
	2020		2021

Cash flows from operating activities:
Net income	3,247,415		11,736,326
Adjustments to reconcile net income to net cash provided by operating activities:
Vessel depreciation	3,386,726		3,193,086
Amortization of deferred charges	122,787		98,560
Share-based compensation	60,808		57,850
Unrealized loss / (gain) on derivative	468,146		(473,647	)
Amortization of fair value of below market time charters acquired	(1,160,839	)	–
Loss on write down of vessel held for sale	121,165		–
Loss on sale of vessel	–		9,417
Changes in operating assets and liabilities	(2,273,177	)	(511,343	)
*Net cash provided by operating activities*	3,973,031		14,110,249

Cash flows from investing activities:
Cash paid for vessels capitalized expenses and sale expenses	(256,482	)	(225,136	)
Advance received for vessel held for sale	540,783		–
*Net cash provided by / (used in) investing activities*	284,301		(225,136	)

Cash flows from financing activities:
Redemption of Series B preferred shares	–		(2,000,000	)
Proceeds from issuance of common stock, net of commissions paid	–		743,553
Preferred dividends paid	(320,877	)	(91,608	)
Repayment of long-term bank loans and vessel profit participation liability	(5,295,920	)	(5,270,920	)
Repayment of related party loan	(625,000	)	(2,500,000	)
Offering expenses paid	(40,486	)	(60,357	)
*Net cash used in financing activities*	(6,282,283	)	(9,179,332	)

Net (decrease) / increase in cash, cash equivalents and restricted cash	(2,024,951	)	4,705,781
Cash, cash equivalents and restricted cash at beginning of period	5,930,061		6,338,177
Cash, cash equivalents and restricted cash at end of period	3,905,110		11,043,958

Cash breakdown

Cash and cash equivalents	1,338,375	8,267,771
Restricted cash, current	432,468	876,187
Restricted cash, long term	2,134,267	1,900,000
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	3,905,110	11,043,958

Euroseas Ltd.
Reconciliation of Adjusted EBITDA to Net income
(All amounts expressed in U.S. Dollars)

	Three Months Ended June 30, 2020		Three Months Ended June 30, 2021	Six Months Ended June 30, 2020		Six Months Ended June 30, 2021
Net income	1,290,319		7,946,451	3,247,415		11,736,326
Interest and other financing costs, net (incl. interest income)	1,133,424		686,620	2,376,241		1,379,713
Vessel depreciation	1,659,641		1,596,543	3,386,726		3,193,086
Loss / (gain) on interest rate swap derivative, net	468,146		96,765	468,146		(388,145	)
Amortization of below market time charters acquired	(314,434	)	–	(1,160,839	)	–
Loss on sale of vessel	–		–	–		9,417
Loss on write down of vessel held for sale	121,165		–	121,165		–
Adjusted EBITDA	4,358,261		10,326,379	8,438,854		15,930,397

Adjusted EBITDA Reconciliation:
Euroseas Ltd. considers Adjusted EBITDA to represent net income before interest, income taxes, depreciation, (gain) / loss on interest rate swaps, amortization of below market time charters acquired, loss on sale of vessel and loss on write down of vessel held for sale. Adjusted EBITDA does not represent and should not be considered as an alternative to net income, as determined by United States generally accepted accounting principles, or GAAP. Adjusted EBITDA is included herein because it is a basis upon which the Company assesses its financial performance and liquidity position and because the Company believes that this non- GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period by excluding the potentially disparate effects between periods, of financial costs, (gain)/ loss on interest rate swaps, depreciation, amortization of below market time charters acquired, loss on vessel sale and loss on write down of vessel held for sale. The Company’s definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries.

Euroseas Ltd.
Reconciliation of Net income to Adjusted net income
(All amounts expressed in U.S. Dollars – except share data and number of shares)

	Three Months Ended June 30, 2020		Three Months Ended June 30, 2021		Six Months Ended June 30, 2020		Six Months Ended June 30, 2021
Net income	1,290,319		7,946,451		3,247,415		11,736,326
Unrealized loss / (gain) on derivative	468,146		54,128		468,146		(473,647	)
Amortization of below market time charters acquired	(314,434	)	–		(1,160,839	)	–
Loss on write down of vessel held for sale	121,165		–		121,165		–
Loss on sale of vessel	–		–		–		9,417
Adjusted net income	1,565,196		8,000,579		2,675,887		11,272,096
Preferred dividends	(179,507	)	(117,055	)	(339,069	)	(255,324	)
Preferred deemed dividend	–		(259,067	)	–		(345,423	)
Adjusted net income attributable to common shareholders	1,385,689		7,624,457		2,336,818		10,671,349
Adjusted earnings per share, basic	0.25		1.12		0.42		1.58
Weighted average number of shares, basic	5,576,960		6,778,829		5,576,960		6,745,305
Adjusted earnings per share, diluted	0.25		1.12		0.42		1.57
Weighted average number of shares, diluted	5,576,960		6,826,305		5,576,960		6,789,718

Adjusted net income and Adjusted earnings per share Reconciliation:
Euroseas Ltd. considers Adjusted net income to represent net income before unrealized (gain) / loss on derivative, amortization of below market time charters acquired, loss on write down of vessel held for sale and loss on sale of vessel. Adjusted net income and Adjusted earnings per share is included herein because we believe it assists our management and investors by increasing the comparability of the Company’s fundamental performance from period to period by excluding the potentially disparate effects between periods of unrealized (gain) / loss on derivative, loss on write down of vessel held for sale, loss on sale of vessel and amortization of below market time charters acquired, which items may significantly affect results of operations between periods.

Adjusted net income and Adjusted earnings per share do not represent and should not be considered as an alternative to net income or earnings per share, as determined by GAAP. The Company’s definition of Adjusted net income and Adjusted earnings per share may not be the same as that used by other companies in the shipping or other industries.

About Euroseas Ltd.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA.

Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

The Company has a fleet of 14 vessels, including 9 Feeder containerships and 5 Intermediate Containerships. Euroseas 14 containerships have a cargo capacity of 42,281 teu.

Forward Looking Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for containerships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Visit our website www.euroseas.gr

Company Contact	Investor Relations / Financial Media
Tasos Aslidis Chief Financial Officer Euroseas Ltd. 11 Canterbury Lane, Watchung, NJ 07069 Tel. (908) 301-9091 E-mail: [email protected]	Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: [email protected]

Release – Capstone Green Energy (NASDAQ:CGRN) Reports First Quarter Fiscal 2022 Financial Results

Posted on August 12, 2021 by Admin

Capstone Green Energy (NASDAQ:CGRN) Reports First Quarter Fiscal 2022 Financial Results

Total Revenue Grew 13% Year-Over-Year

Cash and Cash Equivalents of $49.2M

Book-to-Bill Ratio of 1:1 for the Quarter with New Gross Product Orders of $8.2M

Webcast to be Held Today, August 11, 2021 at 1:45 PM PT; 4:45 PM ET

VAN NUYS, CA / ACCESSWIRE / August 11, 2021 / Capstone Green Energy Corporation (NASDAQ:CGRN), formerly Capstone Turbine Corporation (NASDAQ:CPST) (“Capstone,” the “Company,” “we” or “us”), a global leader in carbon reduction and on-site resilient green energy solutions, today announced financial results for its fiscal year 2022 first quarter ended June 30, 2021.

Financial Highlights of Fiscal Year 2022 First Quarter:

Total revenue in the quarter was $16.1 million, up 13%, compared to $14.2 million in the first quarter last year as orders and shipments gradually started to rebound despite continued negative impacts from the ongoing COVID-19 global pandemic.
The book-to-bill ratio was 1:1 for the quarter, and new gross product orders were $8.2 million despite continued negative global impacts from the ongoing COVID-19 global pandemic in key markets like Europe, Latin America, Asia, and Australia.
The long-term microturbine rental fleet increased 1.5 megawatts (MWs) to 12.1 MWs from 10.6 MWs during the quarter as the Company continues to execute against its plan to increase the fleet to 21.1 MWs by March 31, 2022.
Total cash and cash equivalents as of June 30, 2021, were $49.2 million, a decrease of $0.3 million, compared to $49.5 million as of March 31, 2021.
Cash provided by financing activities was $11.0 million during the quarter, as the Company continued to focus on strengthening liquidity as it accelerates the expansion of the long-term rental fleet.
Net loss of $2.2 million for the quarter, compared to a net loss of $1.8 million in the first quarter of fiscal 2021.
Adjusted EBITDA of negative $2.3 million, compared to Adjusted EBITDA of $0.1 million in the first quarter of fiscal 2021.

“I am pleased that we were again able to drive year-over-year revenue growth as the global recovery from the COVID-19 global pandemic continued to evolve, and we executed upon our revenue growth strategy,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “We also announced during the quarter that we expanded our long-term rental fleet from 10.6 megawatts to 12.1 megawatts as we march towards our goal of growing the fleet to 21.1 megawatts by the end of our fiscal year. This remains a key driver in our long-term strategy, as rental-related revenue drives a much higher margin than a typical product sale. This, along with our Factory Protection Plan program, are important supporting pillars in growing our Energy as a Service business,” added Mr. Jamison.

“We also took steps during the quarter to expand our direct solutions sales team as their effort in the field is creating a robust project pipeline. We are excited for the second half of the year as we expect to start to close on potential projects deploying not only our existing microturbine technology, but the new energy products and service offerings we added on the back of our evolution into Capstone Green Energy Corporation, announced on Earth Day in April 2021,” concluded Mr. Jamison.

Financial Results for Fiscal Year 2022 First Quarter

Total revenue for the quarter increased $1.9 million to $16.1 million, compared with total revenue of $14.2 million in the year-ago quarter. The increase in revenue was the result of higher MWs shipped, as the year-ago quarter was more negatively impacted by the global COVID-19 pandemic.

Gross margin decreased $0.8 million, to $2.6 million in the first quarter compared to $3.4 million in the same period last year, primarily due to lower overhead expenses in the prior period as a result of the Company’s COVID-19 Business Continuity Plan, which consisted of pay cuts, furloughs, and other cost-cutting measures.

Gross margin as a percentage of revenue decreased to 16% in the first quarter, compared to 24% in the same period last year, primarily due to lower overhead expenses in the prior period as a result of the Company’s COVID-19 Business Continuity Plan. Additionally, Factory Protection Plan margins were higher in the prior-year period primarily due to site shutdowns caused by the pandemic, which delayed servicing events.

Operating expenses in the first quarter of fiscal year 2022 were $6.2 million, an increase of $2.3 million from $3.9 million in the year-ago quarter, as the year-ago quarter had reduced expenses from the COVID-19 Business Continuity Plan, which reduced operating expenses and increased working capital during the pandemic.

Net loss was $2.2 million for the first quarter of fiscal year 2022, compared to a net loss of $1.8 million in the year-ago quarter. Net loss per share improved to $0.16 cents per share compared to $0.17 cents in the year-ago quarter. Adjusted EBITDA was negative $2.3 million for the first quarter of fiscal year 2022, compared to an adjusted EBITDA of $0.1 million in the year-ago quarter.

Cash and cash equivalents were $49.2 million as of June 30, 2021, compared to $49.5 million as of March 31, 2021.

Conference Call and Webcast

Capstone will host a live webcast on August 11, 2021, at 1:45 PM Pacific Time (4:45 PM Eastern Time) to provide the results of the fiscal year 2022 first quarter ended June 30, 2021. Capstone will discuss its financial results and will provide an update on its business activities. At the end of the conference call, Capstone will host a question-and-answer session to provide an opportunity for financial analysts to ask questions. Investors and interested individuals are invited to listen to the webcast by logging on to Capstone’s investor relation’s webpage at www.CapstoneGreenEnergy.com. A replay of the webcast will be available on the website for 30 days.

About Capstone Green Energy

Capstone Green Energy (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: [email protected]. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated to be approximately $698 million in energy savings and approximately 1,115,100 tons of carbon savings.

For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events, or for any other reason.

Financial Tables to Follow

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) (Unaudited)

	June 30,			March 31,
	2021			2021
Assets
Current Assets:
Cash and cash equivalents	$	49,216		$	49,533
Accounts receivable, net of allowances of $324 at June 30, 2021 and $314 at March 31, 2021		23,871			20,593
Inventories, net		14,937			11,829
Prepaid expenses and other current assets		5,718			4,953
Total current assets		93,742			86,908
Property, plant, equipment and rental assets, net		10,669			9,630
Non-current portion of inventories		1,802			1,845
Other assets		7,497			7,639
Total assets	$	113,710		$	106,022
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable and accrued expenses	$	22,396		$	19,767
Accrued salaries and wages		1,565			1,889
Accrued warranty reserve		3,904			5,850
Deferred revenue		6,000			6,374
Current portion of notes payable and lease obligations		1,097			576
Total current liabilities		34,962			34,456
Deferred revenue – non-current		734			765
Term note payable, net		50,923			52,865
Long-term portion of notes payable and lease obligations		4,589			4,762
Total liabilities		91,208			92,848
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $.001 par value; 1,000,000 shares authorized; none issued		–			–
Common stock, $.001 par value; 51,500,000 shares authorized, 15,206,891 shares issued and 15,128,731 shares outstanding at June 30, 2021; 12,898,144 shares issued and 12,824,190 shares outstanding at March 31, 2021		15			13
Additional paid-in capital		945,918			934,381
Accumulated deficit		(921,453	)		(919,271	)
Treasury stock, at cost; 78,160 shares at June 30, 2021 and 73,954 shares at March 31, 2021		(1,978	)		(1,949	)
Total stockholders’ equity		22,502			13,174
Total liabilities and stockholders’ equity	$	113,710		$	106,022

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)

	Three Months Ended
	June 30,
	2021			2020
Revenue:
Product and accessories	$	8,389		$	6,606
Parts and service		7,693			7,587
Total revenue		16,082			14,193
Cost of goods sold:
Product and accessories		8,992			6,800
Parts and service		4,442			4,020
Total cost of goods sold		13,434			10,820
Gross margin		2,648			3,373
Operating expenses:
Research and development		883			370
Selling, general and administrative		5,324			3,546
Total operating expenses		6,207			3,916
Loss from operations		(3,559	)		(543	)
Other income		665			4
Interest income		5			8
Interest expense		(1,235	)		(1,291	)
Gain on debt extinguishment		1,950			–
Loss before provision for income taxes		(2,174	)		(1,822	)
Provision for income taxes		8			1
Net loss		(2,182	)		(1,823	)

Net loss per common share attributable to common stockholders-basic and diluted	$	(0.16	)	$	(0.17	)
Weighted average shares used to calculate basic and diluted net loss per common share attributable to common stockholders		13,226			10,598

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (In thousands, except per share data) (Unaudited)

	Three months ended
Reconciliation of Reported Net Loss to EBITDA and Adjusted EBITDA	June 30,
	2021			2020
Net loss, as reported	$	(2,182	)	$	(1,823	)
Interest expense		1,235			1,291
Provision for income taxes		8			1
Depreciation and amortization		386			354
EBITDA	$	(553	)	$	(177	)

Gain on debt extinguishment		(1,950	)		–
Additional PPP loan forgiveness		(660	)		–
Stock-based compensation and other expense		870			298
Adjusted EBITDA	$	(2,293	)	$	121

To supplement the company’s unaudited financial data presented on a generally accepted accounting principles (GAAP) basis, management has presented Adjusted EBITDA, a non-GAAP financial measure. This non-GAAP financial measure is among the indicators management uses as a basis for evaluating the company’s financial performance as well as for forecasting future periods. Management establishes performance targets, annual budgets and makes operating decisions based in part upon this metric. Accordingly, disclosure of this non-GAAP financial measure provides investors with the same information that management uses to understand the company’s economic performance year-over-year.

EBITDA is defined as net income before interest, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA before gain on debt extinguishment, additional PPP loan forgiveness and stock-based compensation and other expense. Gain on debt extinguishment and additional PPP loan forgiveness relates to the Paycheck Protection Program loan forgiveness. Stock-based compensation and other expense includes expense related to stock issued to employees, directors, and vendors.

Adjusted EBITDA is not a measure of the company’s liquidity or financial performance under GAAP and should not be considered as an alternative to, net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of its liquidity.

While management believes that the non-GAAP financial measure provides useful supplemental information to investors, there are limitations associated with the use of this measure. The measures are not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation. Management compensates for these limitations by relying primarily on the company’s GAAP results and by using Adjusted EBITDA only supplementally and by reviewing the reconciliations of the non-GAAP financial measure to its most comparable GAAP financial measure.

Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP.

CONTACT:
Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
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Seanergy Maritime (SHIP) – Stock Buyback Another Sign of Financial Stability

Posted on August 12, 2021 by Admin

Thursday, August 12, 2021

Seanergy Maritime (SHIP)
Stock Buyback Another Sign of Financial Stability

Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed in the US capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and class A warrants under “SHIPW”.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

Stock buy back program announced. The Board of Directors approved a stock buy back program of up to $17 million. At the current price, the buy back equals ~16.4 million shares, or close to 10% of the current shares outstanding of ~168.5 million. We believe that this positive move should help support the stock price, especially if the buy back program is active.

Buy back program reinforces our view that equity issuance near the current price is unlikely. As highlighted in recent notes, the financial position has improved markedly, and we believe that no additional equity will be issued despite the F-3 filing on July 2nd. After pending transactions close, pro forma 3Q2021 cash should be $45-$50 million, or close to 2Q2021 cash of $56 million. Financial …

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

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Seanergy Maritime (SHIP)Stock Buyback Another Sign of Financial Stability

Kelly Services Inc. (KELYA)
Recovery Continuing; Reinstates Dividend

Seanergy Maritime (SHIP)
Stock Buyback Another Sign of Financial Stability