Category:

Release – Direct Digital Holdings Reports First Quarter 2022 Financial Results

Posted on by Admin



Direct Digital Holdings Reports First Quarter 2022 Financial Results

Research, News, and Market Data on Direct Digital Holdings

First Quarter 2022 Revenue Up 100% Year-Over-Year to $11.4
Million

HOUSTON, May 12, 2022 /PRNewswire/ — Direct Digital Holdings, Inc. (Nasdaq: DRCT) (“Direct Digital”), a leading advertising and marketing technology platform, announced financial results for the first quarter ended March 31, 2022.

Chairman and Chief Executive Officer Mark Walker said, “We are pleased to report record revenue for the first quarter of 2022, which demonstrates the increasing value of Direct Digital’s world-class buy- and sell-side advertising platform for middle-market clients. Our quarterly growth was primarily driven by our sell-side advertising segment, and we are excited about the prospect of maintaining this momentum throughout 2022 by continuing to innovate our programmatic advertising offerings for the middle market segment, enhance our publisher partner engagement and monetization strategies, and further extend our reach into the underserved and underrepresented publisher communities.”

Keith Smith, President, added, “Our recent IPO, strategic debt refinance, and successful repurchase of equity from one of Direct Digital’s pre-IPO owners have optimally positioned Direct Digital to achieve its ambitious goals for 2022 and beyond.”

First Quarter 2022
Financial Highlights:

  • Revenue increased to $11.4 million in the first quarter of 2022, an increase of $5.7 million, or 100% over the $5.7 million in the same period of 2021.
    • Our sell-side advertising segment grew to $5.6 million, or 540% over the $0.9 million in the same period of 2021, and contributed $4.7 million of the increase in overall revenue.
    • Our buy-side advertising segment grew to $5.8 million, or 21% over the $4.8 million in the same period of 2021, and contributed $1.0 million of the increase in overall revenue.
  • Operating income increased to $0.6 million for the first quarter of 2022 compared to an operating loss of approximately ($26,000) in the same period of 2021.
  • Net loss was $(0.7) million in the first quarter of 2022, compared to $(0.8) million in the same period of 2021.
  • Adjusted EBITDA(1) increased 113% to $1.1 million in the first quarter 2022, compared to $0.5 million in the same period of 2021.
  • Net operating cash used in the first quarter was ($0.9) million compared to a net operating cash of $3.6 million generated in the same period of 2021.

Business Highlights

  • For the first quarter ended March 31, 2022, we processed approximately 90 billion monthly impressions through our sell-side advertising segment, an increase of 93% growth in the same period of 2021, with over 570 billion bid requests for the quarter.
  • In addition, our sell-side advertising platforms received over 3 billion bid responses, an increase of over 849% over the same period in 2021, through 69,000 buyers for the quarter.
  • Our buy-side advertising segment served over 128 customers, an increase of 41% in comparison to the same period of 2021.

Financial Outlook

Our guidance assumes that the U.S. economy continues to recover, and we do not have any major COVID-19-related setbacks or other major shocks that may cause economic conditions to deteriorate or otherwise significantly reduce advertiser demand. We plan to offer annual guidance and update it throughout the year, accordingly, we estimate the following:

  • For fiscal year 2022, we continue to expect revenue to be in the range of $48.0 million to $52.0 million, or 31% year-over-year growth at the mid-point.

“We are happy to report such a strong first quarter, which is a testament to our strategic post-IPO operating plan. We believe we are poised to continue to deliver significant growth, and favorable conditions in the advertising industry will also drive our business as we take advantage of these tailwinds to execute on both our organic and inorganic growth strategies, ultimately providing long-term shareholder value,” commented Mark Walker.

Conference Call and
Webcast Details

Direct Digital will host a conference call on Thursday, May 12, 2022 at 5:00 p.m. Eastern Time to discuss the Company’s quarterly results. The live webcast, dial-in information and replay can be accessed at https://ir.directdigitalholdings.com/.  Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. For those who cannot access the webcast, a replay will be available at https://ir.directdigitalholdings.com/ for a period of twelve months.

(1)

“Adjusted EBITDA” is a non-GAAP financial measure. The section titled “Non-GAAP Financial Measures” below describes our usage of non-GAAP financial measures and provides reconciliations between historical GAAP and non-GAAP information contained in this press release.

 Forward
Looking Statements

This press release may contain forward-looking statements within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and which are subject to certain risks, trends and uncertainties. As used below, “we,” “us,” and “our” refer to Direct Digital. We use words such as “could,” “would,” “may,” “might,” “will,” “expect,” “likely,” “believe,” “continue,” “anticipate,” “estimate,” “intend,” “plan,” “prospect,” “project” and other similar expressions to identify forward-looking statements, but not all forward-looking statements include these words. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements. All of our forward-looking statements involve estimates and uncertainties that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Our forward-looking statements are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, many factors could affect our actual operating and financial performance and cause our performance to differ materially from the performance expressed in or implied by the forward-looking statements, including, but not limited to: our dependence on the overall demand for advertising, which could be influenced by economic downturns; any slow-down or unanticipated development in the market for programmatic advertising campaigns; the effects of health epidemics, such as the ongoing global COVID-19 pandemic; operational and performance issues with our platform, whether real or perceived, including a failure to respond to technological changes or to upgrade our technology systems; any significant inadvertent disclosure or breach of confidential and/or personal information we hold, or of the security of our or our customers’, suppliers’ or other partners’ computer systems; any unavailability or non-performance of the non-proprietary technology, software, products and services that we use; unfavorable publicity and negative public perception about our industry, particularly concerns regarding data privacy and security relating to our industry’s technology and practices, and any perceived failure to comply with laws and industry self-regulation; restrictions on the use of third-party “cookies,” mobile device IDs or other tracking technologies, which could diminish our platform’s effectiveness; any inability to compete in our intensely competitive market; any significant fluctuations caused by our high customer concentration; our limited operating history, which could result in our past results not being indicative of future operating performance; any violation of legal and regulatory requirements or any misconduct by our employees, subcontractors, agents or business partners; any strain on our resources, diversion of our management’s attention or impact on our ability to attract and retain qualified board members as a result of being a public company; our dependence, as a holding company, on receiving distributions from Direct Digital Holdings, LLC to pay our taxes, expenses and dividends; and other factors and assumptions discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” and other sections of our filings with the SEC that we make from time to time. Should one or more of these risks or uncertainties materialize or should any of these assumptions prove to be incorrect, our actual operating and financial performance may vary in material respects from the performance projected in or implied by these forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and except as required by law, we undertake no obligation to update any forward-looking statement contained in this release to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

About Direct Digital
Holdings

Direct Digital Holdings (Nasdaq: DRCT) brings state-of-the-art supply- and demand-side advertising platforms together under one umbrella company. The holding group’s supply-side platform Colossus SSP offers advertisers of all sizes extensive reach within general market and multicultural media properties. Its operating companies Huddled Masses and Orange142 deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare and travel to financial services. Direct Digital Holdings’ buy-side solutions manages over 200 clients daily, and the sell-side solution serves over 80,000 advertisers generating over 70+ billion impressions per month across display, CTV, in-app, and other media channels.

 

CONSOLIDATED BALANCE SHEETS

March 31, 2022

December 31, 2021

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

4,406,800

$

4,684,431

Accounts receivable, net

7,754,091

7,871,181

Prepaid expenses and other current assets

875,928

1,225,447

Total current assets

13,036,819

13,781,059

Goodwill

6,519,636

6,519,636

Intangible assets, net (Note 3)

15,103,123

15,591,578

Deferred financing costs, net (Note 2)

66,869

96,152

Operating lease – right-of-use assets

917,877

–

Other long-term assets

56,602

11,508

Total assets

$

35,700,926

$

35,999,933

LIABILITIES AND MEMBERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

5,920,459

$

6,710,015

Accrued liabilities

6,087,173

1,044,907

Notes payable, current portion

687,500

550,000

Deferred revenues

431,432

1,348,093

Operating lease liabilities, current portion

209,914

–

Related party payables (Note 7)

–

70,801

Total current liabilities

13,336,478

9,723,816

Notes payable, net of short-term portion and $2,153,821 and $2,091,732, deferred financing cost, respectively

19,021,179

19,358,268

Mandatorily redeemable non-participating preferred units

–

6,455,562

Line of credit

400,000

400,000

Paycheck Protection Program loan

287,143

287,143

Economic Injury Disaster Loan

150,000

150,000

Operating lease liabilities, net of current portion

708,262

–

Total liabilities

33,903,062

36,374,789

COMMITMENTS AND CONTINGENCIES (Note 8)

STOCKHOLDERS’ / MEMBERS’ EQUITY (DEFICIT)

Units, 1,000,000 units authorized at December 31, 2021; 34,182 units issued and outstanding as of December 31, 2021

–

4,294,241

Class A common stock, $0.001 par value per share, 160,000,000 shares authorized, 2,800,000 shares issued and outstanding as of March 31, 2022

2,800

–

Class B common stock, $0.001 par value per share, 20,000,000 shares authorized, 11,378,000 shares issued and outstanding as of March 31, 2022

11,378

–

Additional paid-in capital

7,272,856

–

Accumulated deficit

(5,489,170)

(4,669,097)

Total stockholders’ / members’ equity (deficit)

1,797,864

(374,856)

Total liabilities and stockholders’ / members’ equity

$

35,700,926

$

35,999,933

 

CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)

Three Months Ended
March 31,

2022

2021

Revenues

Buy-side advertising

$

5,831,041

$

4,828,048

Sell-side advertising

5,539,296

865,686

      Total revenues

11,370,337

5,693,734

Cost of revenues

Buy-side advertising

2,069,346

1,954,640

Sell-side advertising

4,520,192

741,693

      Total cost of revenues

6,589,538

2,696,333

Gross Profit

4,780,799

3,482,420

Operating expenses

Compensation, taxes and benefits

2,555,036

1,773,081

General and administrative

1,640,892

1,250,515

      Total operating expenses

4,195,928

3,023,596

Income (loss) from operations

584,871

(26,195)

Other (expense) income

(1,256,494)

(783,098)

      Tax expense (benefit)

–

–

Net loss

$

(671,623)

$

(809,293)

Net loss per share of common stock / common unit:

      Basic and diluted

$

(0.09)

$

(23.68)

Weighted-average number of shares / common units outstanding:

      Basic and diluted

7,089,000

34,182

 

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Three Months Ended

March 31,

2022

2021

Cash Flows Provided By (Used In) Operating Activities:

Net loss

$

(671,623)

$

(809,293)

     Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Amortization of deferred financing costs

152,287

84,629

Amortization of intangible assets

488,455

488,455

Amortization of right-of-use assets

17,602

–

Forgiveness of Paycheck Protection Program loan

–

(10,000)

Paid-in-kind interest

–

95,344

Loss on redemption of non-participating preferred units

590,689

–

Bad debt expense

(2,425)

–

Changes in operating assets and liabilities:

Accounts receivable

119,515

1,508,681

Prepaid expenses and other current assets

304,423

(84,211)

Accounts payable

(926,581)

(717,036)

Accrued liabilities

62,803

46,148

Deferred revenues

(916,661)

2,966,693

Related party payable

(70,801)

–

                       Net cash provided by (used in) operating activities

(852,317)

3,569,410

Cash Flows Provided By (Used In) Financing Activities:

Proceeds from issuance of Class A common shares, net of transaction costs

11,329,818

–

Payments on term loan

(137,500)

(77,801)

Payment of deferred financing costs

(185,093)

–

Redemption of non-participating preferred shares

(7,046,251)

–

Redemption of common units

(3,237,838)

–

Distributions to members

(148,450)

(144)

                     Net cash provided used in financing activities

574,686

(77,945)

                     Net (decrease) increase in cash and cash equivalents

(277,631)

3,491,465

Cash and cash equivalents, beginning of the period

4,684,431

1,611,998

Cash and cash equivalents, end of the year

$

4,406,800

$

5,103,463

NON-GAAP FINANCIAL
MEASURES

In addition to our results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), including, in particular operating income, net cash provided by operating activities, and net income, we believe that earnings before interest, taxes, depreciation and amortization (“EBITDA”), as adjusted for acquisition transaction costs, forgiveness of Paycheck Protection Program loans, gain from revaluation and settlement of seller notes and earnout liability, loss on early extinguishment of debt, and loss on early redemption of non-participating preferred units, (“Adjusted EBITDA”), a non-GAAP measure, is useful in evaluating our operating performance. The most directly comparable GAAP measure to Adjusted EBITDA is net loss.

In addition to operating income and net income, we use Adjusted EBITDA as a measure of operational efficiency. We believe that this non-GAAP financial measure is useful to investors for period-to-period comparisons of our business and in understanding and evaluating our operating results for the following reasons:

  • Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as depreciation and amortization, interest expense, provision for income taxes, and certain one-time items such as acquisition transaction costs and gains from settlements or loan forgiveness that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired;
  • Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and
  • Adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

Our use of this non-GAAP financial measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. The following table presents a reconciliation of Adjusted EBITDA to net loss for each of the periods presented:

RECONCILIATION OF NON-GAAP FINANCIAL METRICS
(Unaudited)

For the Three Months
Ended March 31,

2022

2021

Net loss

$

(671,676)

$

(890,293)

Add back (deduct):

    Amortization of intangible assets

488,455

488,455

    Interest expense

713,787

811,757

    Forgiveness of Paycheck Protection Program loan

–

(10,000)

    Loss on early redemption of non-participating preferred units

590,689

–

Adjusted EBITDA

$

1,121,305

$

480,919

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/direct-digital-holdings-reports-first-quarter-2022-financial-results-301546560.html

SOURCE Direct Digital Holdings


Beasley Broadcast Group (BBGI) – A Lot More Work To Do On The Digital Front

Posted on by Admin

Wednesday, May 11, 2022

Beasley Broadcast Group (BBGI)
A Lot More Work To Do On The Digital Front

Beasley Broadcast Group, Inc. owns and operates 61 stations (47 FM and 14 AM) in 15 large- and mid-size markets in the United States. Approximately 20 million consumers listen to the Company’s radio stations weekly over-the-air, online and on smartphones and tablets, and millions regularly engage with the Company’s brands and personalities through digital platforms such as Facebook, Twitter, text messaging, digital and web applications and email. The Overwatch League’s Houston Outlaws esports team is a wholly owned subsidiary. The Company also owns BeasleyXP, a national esports content hub, and AXLR-R8, a Rocket League Championship Series team, in its esports portfolio. For more information, please visit www.bbgi.com.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Exceeds Q1 expectations. The company reported Q1 revenue of $55.7 million, 5% above our expectation of $53 million. Adj. EBITDA of $1.88 million also our beat our expectation of a loss of $0.55 million.

Second quarter outlook. Q2 revenue is pacing up 7%, which is a little lighter than our original 9% growth estimate. Local advertising is pacing up a strong 17%, but national advertising is pacing down 23%. Digital advertising is expected to be up in the 20% plus range. As such, we are tweaking our Q2 revenue and adj. EBITDA estimate.  …

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. 

Element79 Gold Corp. (ELMGF) – Getting In On the Ground Floor

Posted on by Admin

Wednesday, May 11, 2022

Element79 Gold Corp. (ELMGF)
Getting In On the Ground Floor

Element79 Gold is a mineral exploration company focused on the acquisition, exploration and development of mining properties for gold and associated metals. Element79 Gold has acquired its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties, where it has recently completed a 43-101-compliant, pit-constrained mineral resource estimate reflecting an Inferred resource of 3.71 million ounces of gold equivalent* “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag)) with an effective date of Feb. 4, 2022. The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which the Company is analyzing for further merit of exploration, along with the potential for sale or spin-out. In British Columbia, Element79 Gold has executed a Letter of Intent to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. In Peru, Element79 Gold has signed a letter of intent to acquire the business and assets of Calipuy Resources Inc., which holds 100% interest in the past-producing Lucero Mine, one of the highest-grade underground mines to be commercially mined in Peru’s history, as well as the past-producing Machacala Mine. The Company also has an option to acquire 100% interest in the Dale Property which consists of 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township.

Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

Initiating coverage with an Outperform rating. From the time of its initial public offering in August 2021, Element79 Gold has rapidly assembled a diversified portfolio of precious metals properties in the United States, Canada, and Peru. The company’s 20-property portfolio, including those for which it has an option or letter of intent to acquire, includes sixteen 100%-owned projects in Nevada, two in Canada, and two in Peru. Its flagship Maverick Springs project in Nevada, which was acquired in December 2021, hosts an inferred resource of 3.71 million ounces of gold equivalent with significant expansion potential. The company also owns 15 properties along the Battle Mountain Trend in Nevada and is considering each for additional exploration, joint venture, sale, or spin-out.

Accelerated path to cash flow generation. Element79 Gold recently executed a letter of intent to acquire two past producing gold mines in Peru, the Lucero and Machacala mines, with the intent to return Machacala to production within the next 18 to 24 months at a maximum rate of 350 tonnes per day. A definitive agreement is expected to be executed by the end of June with the transaction closing shortly thereafter. While the company’s Nevada projects provide scale and underpin the company’s valuation with an existing resource, the projects in Peru offer the potential for higher grade ore and the prospect of near-term production and cash flow….

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. 

Information Services Group (III) – One for the Record Books

Posted on by Admin

Wednesday, May 11, 2022

Information Services Group (III)
One for the Record Books

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For additional information, visit www.ISG-One.com

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

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

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

A Quarter Filled with Records. ISG had an outstanding first quarter, the Company’s best start to a year ever. ISG generated record revenues, record profitability, record recurring revenues, and record consultant utilization. A strong start to the year indeed.

Drivers. What was behind the record setting performance? Technology is crucial to improving customer and employee experiences and making organizations more agile and adaptable to dynamic market conditions. Coming through the worst of the pandemic, companies are increasing their reliance on the cloud and other digital solutions to power their businesses. There is growing demand for specialized services like cybersecurity, data analytics, application development, and technology modernization. The number of choices is staggering and making internal technology and external ecosystems work together is no easy feat. More and more companies are looking for a trusted partner like ISG to bring clarity to complexity, support continuous transformation, and help get the most out of technology investments….

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. 

Salem Media Group (SALM) – Transforming The Way You Think About Salem

Posted on by Admin

Wednesday, May 11, 2022

Salem Media Group (SALM)
Transforming The Way You Think About Salem

Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Solid 1st quarter. The company reported Q1 revenue of $62.9 million, 1.8% above our estimate of $61.5 million. Adj. EBITDA of $6.85 million was virtually in line with our forecast of $6.9 million, deviating by just 0.8%.

Block programming looking strong. Block programming revenue was up 10%, which consists of 3% growth in local and 13% growth in national. This was due in part to the addition of two large ministries in the quarter. Notably, Salem has a 95%+ renewal rate with block programming….

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. 

Townsquare Media (TSQ) – The Engine That Could

Posted on by Admin

Wednesday, May 11, 2022

Townsquare Media (TSQ)
The Engine That Could

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Exceeds Q1 expectations, above guidance. The company reported Q1 revenue of $100.2 million, above our estimate of $99.4 million and management’s previous guidance. Adj. EBITDA in the quarter was $22.1 million, exceeding our estimate of $21.4 million.

Digital inflection point. Total Digital revenue grew an attractive 15.9% year-over-year to $51.1 million. Notably, after accounting for 48% of total revenue in Q4 of 2021, Digital eclipsed the 50%-mark, accounting for 51% of total revenue in Q1. In our view, this milestone emphasizes that Townsquare truly has become a digital-first media company.  …

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 – Cocrystal Pharma Reports First Quarter 2022 Financial Results and Provides Updates on its Antiviral Development Programs and Milestones

Posted on by Admin



Cocrystal Pharma Reports First Quarter 2022 Financial Results and Provides Updates on its Antiviral Development Programs and Milestones

Research, News, and Market Data on Cocrystal Pharma

  • Reported favorable preliminary data from the two initial cohorts in its Phase 1 study with CC-42344 for the treatment of pandemic and seasonal influenza A
  • Announced a collaboration with the National Institute of Allergy and Infectious Diseases (NIAID) to evaluate the Company’s COVID-19 protease inhibitors
  • Initiated scale-up synthesis and process chemistry development in preparation to begin a Phase 1 study with oral and inhalation inhibitors for the treatment of COVID-19

BOTHELL, Wash., May 11, 2022 (GLOBE NEWSWIRE)
— Cocrystal Pharma, Inc. (Nasdaq: COCP) reports financial results for the three months ended March 31, 2022, and provides updates on its antiviral pipeline, upcoming milestones and business activities.

“I am pleased to be reporting progress and important developments with our antiviral programs for the treatment of influenza and COVID-19,” said Sam Lee, Ph.D., President and co-interim CEO of Cocrystal. “With our oral PB2 inhibitor, CC-42344 for the treatment of pandemic and seasonal influenza A, we announced favorable preliminary safety and pharmacokinetic data from the first two cohorts of healthy adults in our dose-escalation Phase 1 study underway in Australia. Enrollment in the remaining cohorts is ongoing.

“We are also advancing toward the start of a Phase 1 study with our novel, broad-spectrum inhalation SARS-CoV-2 3CL (main) protease inhibitor CDI-45205 for the treatment of COVID-19. Scale-up synthesis and process chemistry development are ongoing as we prepare data to support an IND application,” Dr. Lee added.

“Among our goals this year is to complete the 
CC-42344 Phase 1 influenza study and to initiate two Phase 1 COVID-19 studies with CDI-45205 and a novel, broad-spectrum orally administered protease inhibitor designed and developed using our proprietary structure-based drug discovery platform technology,” said James Martin, CFO and co-interim CEO. “We are well positioned to execute on these goals in the current challenging economic environment, given our clean capital structure and a cash balance we believe is sufficient to fund planned operations through 2023.”

Antiviral Pipeline Overview
Many antiviral drugs are effective only against certain strains of a virus and are less effective or not effective at all against other strains or variants. Cocrystal is developing drug candidates that specifically target proteins involved in viral replication. Despite the numerous strains that may exist or emerge, these enzymes are required for viral replication and are essentially similar (highly conserved) across all strains. By targeting these highly conserved regions of the replication enzymes, our antiviral compounds are designed and tested to be effective against major virus strains.

COVID-19 and Other
Coronavirus Programs
By targeting viral replication enzymes and protease, we believe it is possible to develop an effective treatment for all coronavirus diseases including COVID-19, Severe Acute Respiratory Syndrome (SARS) and Middle East Respiratory Syndrome (MERS). Our main SARS-CoV-2 protease inhibitors showed potent in
vitro pan-viral activity against common human coronaviruses, rhinoviruses and respiratory enteroviruses that cause the common cold, as well as against noroviruses that can cause symptoms of acute gastroenteritis.

  • Intranasal/Pulmonary Protease
    Inhibitor CDI-45205
    • CDI-45205 is our novel SARS-CoV-2 3CL (main) protease inhibitor being developed as a potential treatment for COVID-19 and its variants via intranasal/pulmonary delivery.
    • We have initiated scale-up synthesis and process chemistry development with CDI-45205 as we assemble data to support an IND application with the goal of progressing to a first-in-human clinical trial in 2022.
    • We received guidance from the FDA regarding further preclinical and clinical development of CDI-45205 that provides a clearer pathway for the Phase 1 study we plan to initiate in 2022, as well as directives for designing a subsequent Phase 2 study.
    • CDI-45205 and several analogs showed potent in
      vitro       activity against the SARS-CoV-2 Omicron (Botswana and South Africa/BA.1), Delta (India/B.1.617.2), Gamma (Brazil/P.1), Alpha (United Kingdom/B.1.1.7) and Beta (South Africa/B.1.351) variants, surpassing the activity observed with the original wild-type (Wuhan) strain.
    • CDI-45205 demonstrated good bioavailability in mouse and rat pharmacokinetic studies via intraperitoneal injection, and no cytotoxicity against a variety of human cell lines. CDI-45205 also demonstrated a strong synergistic effect with the FDA-approved COVID-19 medicine remdesivir.
    • CDI-45205 was among the broad-spectrum viral protease inhibitors obtained from Kansas State University Research Foundation (KSURF) under an exclusive license agreement announced in 2020. We believe the protease inhibitors obtained from KSURF have the ability to inhibit the inactive SARS-CoV-2 polymerase replication enzymes into an active form.
  • Oral Protease Inhibitors

    • We selected investigational novel antiviral drug candidates CDI-988 and CDI-873 for further development as potential oral treatments for SARS-CoV-2. Both candidates were designed and developed using our proprietary structure-based drug discovery platform technology. These agents are chemically differentiated and exhibit superior in vitro potency again SARS-CoV-2, with activity maintained against current variants of concern. Both candidates demonstrated a favorable safety profile and pharmacokinetic properties that are supportive of daily oral dosing.
    • We plan to initiate a Phase 1 study as soon as possible in 2022 with one of these candidates. We believe the FDA’s guidance for further development of CDI-45205 provides us with a clearer pathway for the clinical development of our oral COVID-19 program.
  • Replication Inhibitors

    • We are using our proprietary structure-based drug discovery platform technology to discover replication inhibitors as orally administered therapeutic and prophylactic treatments for SARS-CoV-2. Replication inhibitors hold potential to work with protease inhibitors in a combination therapy regimen.

Influenza Programs
Influenza is a severe respiratory illness caused by either the influenza A or B virus that results in outbreaks of disease mainly during the winter months. The global market for influenza therapeutics is expected to reach nearly $6.5 billion annually by 2022, according to a report published by BCC Research in May 2018.

  • Pandemic and Seasonal Influenza
    A
    • A novel PB2 inhibitor, CC-42344 has shown excellent antiviral activity against influenza A strains including pandemic and seasonal strains, as well as strains resistant to Tamiflu® and Xofluza
      ®. CC-42344 also has favorable pharmacokinetic and drug-resistance profiles.
    • In March 2022 we initiated enrollment in our Phase 1 study with orally administrated antiviral CC-42344 in healthy adults. This randomized, double-controlled, dose-escalating study is designed to assess the safety, tolerability and pharmacokinetics of 
      CC-42344.
    • In April 2022 we announced preliminary data from our Phase 1 study with CC-42344, demonstrating a favorable safety and pharmacokinetic profile in the first two cohorts administered single-ascending doses of 100 mg and 200 mg. We expect to report full results from the Phase 1 clinical study in 2022.
  • Pandemic and Seasonal Influenza
    A/B program
    • In January 2019 we entered into an Exclusive License and Research Collaboration Agreement with Merck Sharp & Dohme Corp. to discover and develop certain proprietary influenza antiviral agents that are effective against both influenza A and B strains. This agreement includes milestone payments of up to $156 million plus royalties on sales of products discovered under the agreement.
    • In January 2021 we announced completion of all research obligations under the agreement. Merck is now solely responsible for further preclinical and clinical development of compounds discovered under this agreement.
    • Merck continues development activities with the compounds discovered under this agreement.

Norovirus Program

  • We are developing certain proprietary broad-spectrum protease and replication inhibitors for the treatment of norovirus infections.
  • We plan to select preclinical leads in the 2022-2023 timeframe.
  • Norovirus is a global public health problem responsible for nearly 90% of epidemic, non-bacterial outbreaks of gastroenteritis around the world.

Hepatitis C Program

  • We are seeking a partner to advance the development of CC-31244 following successful completion of a Phase 2a study. This compound has shown favorable safety and preliminary efficacy in a triple-regimen Phase 2a study in combination with Epclusa (sofosbuvir/velpatasvir) for the ultra-short duration treatment of individuals infected with the hepatitis C virus (HCV).
  • HCV is a viral infection of the liver that causes both acute and chronic infection. The 2017 World Health Organization Global Hepatitis Report estimates that 71 million people worldwide have chronic HCV infections.

First Quarter 2022 Financial Results
Research and development (R&D) expenses for the first quarter of 2022 were $2.9 million compared with $1.6 million for the first quarter of 2021, with the increase primarily related to COVID-19 and influenza programs. The Company expects R&D expenses to increase during 2022 due to the advancement of its influenza A program into the clinic and progress with preclinical COVID-19 programs toward clinical development. General and administrative expenses for the first quarter of 2022 were $1.3 million compared with $1.2 million for the first quarter of 2021, with the increase primarily due to insurance costs and reduced by the conclusion of certain previously reported legal matters.

The net loss for the first quarter of 2022 was $4.2 million, or $0.04 per share, compared with a net loss for the first quarter of 2021 of $2.7 million, or $0.04 per share.

The Company reported unrestricted cash of $54.8 million as of March 31, 2022, compared with $58.7 million as of December 31, 2021. Net cash used in operating activities for the first quarter of 2022 was $3.9 million. The Company reported working capital of $53.8 million as of March 31, 2022.

About Cocrystal Pharma, Inc.
Cocrystal Pharma, Inc. is a clinical-stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication process of influenza viruses, coronaviruses (including SARS-CoV-2), hepatitis C viruses and noroviruses. Cocrystal employs unique structure-based technologies and Nobel Prize-winning expertise to create first- and best-in-class antiviral drugs. For further information about Cocrystal, please visit www.cocrystalpharma.com.

Cautionary Note Regarding Forward-Looking
Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our goals of initiating two Phase 1 studies for our COVID-19 programs in 2022, our expectations of reporting data from the Phase 1 clinical study of our Influenza A product candidate later in 2022, the viability and efficacy of potential treatments for coronavirus and other diseases, expectations for the global market for influenza therapeutics, our attempts to discover replication inhibitors, our development of antiviral treatments for norovirus, our expectations concerning R&D expenses, the expected sufficiency of our cash balance to fund our planned operations and our liquidity. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events. Some or all of the events anticipated by these forward-looking statements may not occur. Important factors that could cause actual results to differ from those in the forward-looking statements include, but are not limited to, the risks arising from the impact of the COVID-19 pandemic and the Ukraine war on our Company, our collaboration partners, and on the national and global economy, including manufacturing and research delays arising from raw materials and labor shortages, supply chain disruptions and other business interruptions including and adverse impacts on our ability to obtain raw materials and test animals as well as similar problems with our vendors and our current Clinical Research Organization (CRO) and any future CROs and Contract Manufacturing Organizations, the impact of inflation and Federal Reserve interest rate increases in response thereto on the economy, the ability of our current CRO to recruit volunteers for, and to proceed with, clinical studies, possible delays resulting from future lockdowns in Australia, our reliance on Merck for further development in the influenza A/B program under the license and collaboration agreement, our and our collaboration partners’ technology and software performing as expected, financial difficulties experienced by certain partners, the results of future preclinical and clinical trials, general risks arising from clinical trials, receipt of regulatory approvals, regulatory changes, development of effective treatments and/or vaccines by competitors, including as part of the programs financed by the U.S. government, and potential mutations in a virus we are targeting which may result in variants that are resistant to a product candidate we develop. Further information on our risk factors is contained in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2021. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Investor Contact:
LHA Investor Relations
Jody Cain
310-691-7100

jcain@lhai.com

Media Contact:
JQA Partners
Jules Abraham
917-885-7378

Jabraham@jqapartners.com

Release – The Big Tomato, Hydroponic Division of Schwazze, Receives Westword Best of Denver Award for the Best Home Cultivation Store

Posted on by Admin



The Big Tomato, Hydroponic Division of Schwazze, Receives Westword Best of Denver Award for the Best Home Cultivation Store

Research, News, and Market Data on Schwazze


DENVER, May 9, 2022 /PRNewswire/ – 
Schwazze, (OTCQX: SHWZ) (NEO: SHWZ), a premier vertically integrated, multi-state operating cannabis company with assets in Colorado and New Mexico is proud to announce that its hydroponic and indoor gardening brand, The Big Tomato has been named the Best Home Cultivation Store in the city of Denver by Westword magazine.

Westword magazine states, “The Big Tomato was helping home growers long before the dispensary boom, selling indoor gardening supplies for over two decades. Now owned by Schwazze, a Denver-based cannabis corporation, the Big Tomato still offers the same friendly service for newbies and regulars, but now has even more of a cannabis focus — and an online shopping option, to boot. For beginning green thumbs, finding a trustworthy growing store is like searching for a new mechanic; more cynical shops can take advantage of that lack of experience by suggesting unnecessary lighting equipment and nutrients. That’s not the case at the Big Tomato, so don’t be afraid to ask questions.”

“We are honored to receive the Westword award for Best Home Cultivation Store in Denver,” said Jeremy Bullock, Vice President – Commercial Sales. “We are proud to serve our community and provide expert advice to an industry that has historically lacked access to information and education about the best practices for cultivating cannabis.”

The Big Tomato (Big Tomato) has served the indoor, hydroponic and community of Colorado for over 20 years. Big Tomato predates the hydroponics boom, and offers competitive prices and an extensive selection of expertly curated supplies. The experienced growers at Big Tomato offer superior product knowledge to hobbyists and commercial growers alike. From propagation to harvest, Big Tomato has developed a reputation as the go-to source for all garden supply needs.

695 Billing St.,
Aurora, Colorado
303-364-4769

thebigtomato.com

About Schwazze

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

Forward-Looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,”, “predicts,” or similar words. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to consummate the acquisition described in this press release or to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, * the timing and extent of governmental stimulus programs, (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws, and * out ability to satisfy the closing conditions for the private finding described in this press release. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

Cision View original content:https://www.prnewswire.com/news-releases/the-big-tomato-hydroponic-division-of-schwazze-receives-westword-best-of-denver-award-for-the-best-home-cultivation-store-301541846.html

SOURCE Schwazze


Release – BioSig Technologies, Inc. Issues Shareholder Letter with Corporate Update on Recent Achievements

Posted on by Admin



BioSig Technologies, Inc. Issues Shareholder Letter with Corporate Update on Recent Achievements

News and Market Data on BioSig Technologies

Westport, CT, May 11, 2022 (GLOBE NEWSWIRE) —

  • To date,
    Company’s FDA 510(k) cleared PURE EP(TM) system has completed over
    2,200 patient cases with 75 physicians at 17 hospitals across the United
    States
  • The Company adds
    new executives to accelerate sustained commercial momentum developing
    a national installed base of the PURE EP systems

BioSig Technologies, Inc. (Nasdaq: BSGM) (“BioSig” or the “Company”), a medical technology company advancing electrophysiology workflow by delivering greater intracardiac signal fidelity through its proprietary signal processing platform, today issued a Letter to Shareholders providing highlights on the Company’s recent developments and updates.

Recent Company highlights include:

  • The growth of its PURE EP(TM) System from its first-in-human surgical procedures in 2019 to completing over 2,200 patient cases with 75 physicians at 17 hospitals across the United States.
  • BioSig strengthened its management with a new commercialization team led by industry veteran Gray Fleming, Chief Commercial Officer, who spent 18 years with St. Jude Medical.
  • The rollout of a two-phase approach for purchase, lease, or rental options for PURE EP and a new go-to-market strategy for commercialization.
  • Launch of its new NOVA-5 software at the Heart Rhythm Society Convention on April 29, 2022. NOVA-5 offers greater customization and smarter workflows with the aim of further driving clinical adoption.
  • Recapped the successful completion of its first blinded clinical trial in 2021 and published those results in a leading peer-reviewed journal. Titled “Evaluation
    of a novel cardiac signal processing system for electrophysiology
    procedures: The PURE EP 2.0 study    ,” the study was conducted at three leading medical centers across the United States: St. David’s Medical Center (TCAI), Mayo Clinic, and Massachusetts General Hospital.
  • A snapshot into Biosig’s financing included no debt and positioning in a global electrophysiology device market which, according to Grand View Research, could reach $12.2 billion by 2026 and expand at a growth rate of approximately 12%.

“We have made great strides on multiple fronts and felt it was an important time to communicate to our shareholders the strength of our business and the initiatives we are executing that have served as the foundation for our growth trajectory,” said Kenneth L. Londoner, Chairman, and CEO of BioSig Technologies, Inc. “We strongly believe in the value of our technology and are now supported with both peer-reviewed clinical data and third-party economic data, proving the value of what we have built. We are eager to continue working on our new commercialization strategy, seeing the impact of our new NOVA-5 software has, and all our initiatives we are undertaking to drive shareholder value and expand PURE EP.”

To view the Company’s Shareholder Letter in its entirety, please visit: Presentations :: BioSig
Technologies, Inc. (BSGM).

The PURE EP(TM) is an FDA 510(k) cleared non-invasive class II device that aims to drive procedural efficiency and efficacy in cardiac electrophysiology. To date, 75 physicians have completed more than 2,200 patient cases with the PURE EP(TM) System.

Clinical data acquired by the PURE EP(TM) System in a multi-center study at Texas Cardiac Arrhythmia Institute at St. David’s Medical Center, Mayo Clinic Jacksonville, and Massachusetts General Hospital was recently published in the Journal of Cardiovascular Electrophysiology and is available electronically with open access via the Wiley Online Library. Study results showed 93% consensus across the blinded reviewers with a 75% overall improvement in intracardiac signal quality and confidence in interpreting PURE EP(TM) signals over conventional sources.

About
BioSig Technologies
BioSig Technologies is a medical technology company commercializing a proprietary biomedical signal processing platform designed to improve signal fidelity and uncover the full range of ECG and intra-cardiac signals (www.biosig.com).

The Company’s first product, PURE EP(TM) System, is a computerized system intended for acquiring, digitizing, amplifying, filtering, measuring and calculating, displaying, recording, and storing electrocardiographic and intracardiac signals for patients undergoing electrophysiology (EP) procedures in an EP laboratory.

Forward-looking
Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) the geographic, social, and economic impact of COVID-19 on our ability to conduct our business and raise capital in the future when needed, (ii) our inability to manufacture our products and product candidates on a commercial scale on our own, or in collaboration with third parties; (iii) difficulties in obtaining financing on commercially reasonable terms; (iv) changes in the size and nature of our competition; (v) loss of one or more key executives or scientists; and (vi) difficulties in securing regulatory approval to market our products and product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events, or otherwise.


Andrew Ballou

BioSig Technologies, Inc.

Vice President, Investor Relations

55 Greens Farms Road

Westport, CT 06880

aballou@biosigtech.com

203-409-5444, x133

Release – Endeavour Silver Announces Strong Q1 2022 Financial and Operating Results with Earnings Per Share of $0.07

Posted on by Admin



Endeavour Silver Announces Strong Q1 2022 Financial and Operating Results with Earnings Per Share of $0.07

Research, News, and Market Data on Endeavour Silver


VANCOUVER, British Columbia, May 11, 2022 (GLOBE NEWSWIRE) —
Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK;
TSX: EDR) is pleased to announce its financial and operating results for the three months ended March 31, 2022. All dollar amounts are in US dollars (US$).

“Our first quarter performance was strong, putting us on track to achieve our 2022 production guidance,” stated Dan Dickson, CEO of Endeavour Silver. “High-grade ore at Guanacevi was a driving force and is expected to continue throughout the balance of the year, while production at Bolanitos remains solid.  Industry-wide inflation is a growing challenge and we continue to look for ways to mitigate its negative impact.”

Added Mr. Dickson, “Looking ahead to the second quarter, we are targeting two major milestones:     securing debt financing for Terronera and closing the Pitarrilla transaction. This acquisition, which is fully financed, is expected to close this quarter following receipt of approval from the Mexican Federal Economics Competition Commission. After the deal closes, drilling will commence to verify Pitarrilla’s historical data and update the historical resource. This will become a key focus for us for the balance of 2022.”

Q1 2022 Highlights

  • Strong Production: 1,314,955 ounces (oz) of silver and 8,695 oz of gold for 2.0 million oz silver equivalent (AgEq) ( 1) .
  • Significant Growth in Net Revenue : Net revenue of $57.7 million from the sale of 1,717,768 oz of silver and 8,381 oz of gold at average realized prices of $24.38 per oz silver and $1,970 per oz gold.
  • Slight Decline in Net Earnings : Net earnings of $11.7 million, or $0.07 per share, down from net earnings of $12.2 million, or $0.08 per share in Q1 2021. Mine operating earnings of $20.3 million, up from mine operating earnings of $5.7 million in Q1 2021.
  • Improved Earnings Before Interest, Taxes, Depreciation &
    Amortization (EBITDA)     ( 2) : $25.6 million, an increase of 7% from Q1 2021.
  • Increased Cash Flow : $20.6 million in operating cash flow before working capital changes ( 2) , an increase of 293%. Mine operating cash flow before taxes ( 2) increased 101% to $26.7 million.
  • Higher Costs Due to Industry-Wide Inflation: Cash costs ( 2) of $10.21 per oz payable silver and all-in sustaining costs ( 2 ) of $20.90 per oz payable silver, net of gold credits. Cash costs ( 2) were slightly above guidance due to increased labour, power and consumables costs.
  • Healthy Balance Sheet: Cash position of $151.0 million and working capital ( 2) $168.4 million as at March 31, 2022.
  • Guanacevi Continued to Outperform: Production exceeded plan driven by higher grades.
  • Bolañitos Remained Steady: Strong silver production, higher silver grades and increased throughput were offset by lower than anticipated gold production and lower gold grades.
  • Reduced Metal Inventories : Sold 1,717,768 oz silver and 8,381 oz gold during the quarter. Management significantly reduced silver inventory and slightly increased gold inventory during the quarter and carried metal inventory at quarter end totaling 608,788 oz silver and 1,911 oz gold of bullion inventory and 59,594 oz silver and 1,931 oz gold in concentrate inventory.
  • Advanced the Terronera Project : The Terronera project continued to progress as work continued on final detailed engineering, early earth works, critical contracts and the procurement of long lead items. The Company intends to make a formal construction decision subject to completion of a financing package and receipt of additional amended permits in the coming months.
  • Announced Definitive Agreement to Acquire the Pitarrilla
    Project:     Endeavour’s acquisition of Pitarrilla, one of the largest undeveloped silver deposits in the world, is expected to close in Q2 2022.
  • Completed $46.0 Million Bought Deal Financing: On March 22, 2022 Endeavour completed a prospectus offering for the issuance of 9,293,150 common shares at a price of $4.95 per common share for gross proceeds of $46.0 million. The Company plans to use the net proceeds to pay the $35 million cash consideration payable to SSR Mining Inc. on completion of the Company’s acquisition of the Pitarrilla project and for the Company’s general corporate purposes and working capital.

Financial Overview (see appendix for consolidated financial statements)

Highlights

Three Months Ended March 31

 

2022

2021

% Change

Production

 

 

 

Silver ounces produced

1,314,955

1,048,100

25%

Gold ounces produced

8,695

11,109

(22%)

Payable silver ounces produced

1,303,540

1,036,710

26%

Payable gold ounces produced

8,549

10,894

(22%)

Silver equivalent ounces produced (2)

2,010,555

1,936,820

4%

Cash costs per silver ounce (2)

10.21

7.86

30%

Total production costs per ounce (2)

15.13

15.41

(2%)

All-in sustaining costs per ounce (2)

20.90

19.94

5%

Processed tonnes

206,147

209,453

(2%)

Direct operating costs per tonne (2)

122.86

112.36

9%

Direct costs per tonne (2)

148.53

126.23

18%

Silver co-product cash costs (2)

15.18

15.16

0%

Gold co-product cash costs (2)

1,226

950

29%

Financial

Revenue ($ millions)

57.7

34.5

67%

Silver ounces sold

1,717,768

623,379

176%

Gold ounces sold

8,381

10,663

(21%)

Realized silver price per ounce

24.38

27.17

(10%)

Realized gold price per ounce

1,970

1,703

16%

Net earnings ($ millions)

11.7

12.2

(5%)

Adjusted net earnings (loss) (2) ($ millions)

11.7

(4.5)

357%

Mine operating earnings ($ millions)

20.3

5.7

258%

Mine operating cash flow before taxes (2) ($ millions)

26.7

13.3

101%

Operating cash flow before working capital changes (2)

20.6

5.2

293%

EBITDA (2) ($ millions)

25.6

24.0

7%

Working capital (2) ($ millions)

168.4

113.1

49%

Shareholders

Earnings per share – basic ($)

0.07

0.08

(13%)

Adjusted earnings (loss) per share – basic (8) ($)

0.07

(0.03)

339%

Operating cash flow before working capital changes per share (2)

0.12

0.03

266%

Weighted average shares outstanding

171,557,220

159,670,842

7%

( 1 ) Silver equivalent (AgEq) is calculated using an 80:1 silver:gold ratio.

(2) These are non-IFRS financial measures and ratios. Further details on these non-IFRS financial measures and ratios are provided at the end of this press release and in the MD&A accompanying the Company’s financial statements, which can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov .

For the three months ended March 31, 2022, net revenue, net of $0.7 million of smelting and refining costs, increased by 67% to $57.7 million (Q1 2021: $34.5 million).

Gross sales of $58.4 million in Q1 2022 represented a 66% increase over the $35.1 million in Q1 2021. Silver oz sold increased by 176%, due to both increased silver production and the sale of the larger finished goods inventory held at December 31, 2021. There was a 10% decrease in the realized silver price, resulting in a 148% increase in proceeds from silver sales. Gold oz sold decreased by 21% with a 16% increase in the realized gold price, resulting in a 9% decrease in proceeds from gold sales. During the period, the Company sold 1,717,768 oz silver and 8,381 oz gold for realized prices of $24.38 and $1,970 per oz, respectively, compared to Q1 2021 sales of 623,379 oz silver and 10,663 oz gold for realized prices of $27.17 and $1,703 per oz, respectively. In Q1 2022, London spot prices for silver and gold averaged $24.01 and $1,877, respectively.

The Company significantly decreased its finished goods silver inventory and slightly increased its finished goods gold inventory to 668,382 oz and 3,841 oz, respectively, at March 31, 2022 compared to 1,082,610 oz silver and 3,674 oz gold at December 31, 2021. The cost allocated to these finished goods was $13.5 million at March 31, 2022 compared to $15.6 million at December 31, 2021. At March 31, 2022, the finished goods inventory fair market value was $24.1 million, compared to $31.7 million at December 31, 2021. Earnings and other financial metrics, including mine operating cash flow ( 2) , operating cash flow (2) and EBITDA (2) were impacted by the sale during Q1 2022 of the increased bullion inventory held at year end.

After cost of sales of $37.4 million (Q1 2021 – $28.8 million), an increase of 30%, mine operating earnings were $20.3 million (Q1 2021 – $5.7 million). The increase in cost of sales was impacted by both an increase in the quantity of silver ounces sold during the period, increased production and increased labour, power and consumables costs with significantly higher royalty costs, partially offset by improved productivity at the Guanaceví and Bolañitos operations. Royalties increased 75% to $4.3 million primarily due to the increase in silver ounces sold during the period.

The Company had operating earnings of $12.6 million (Q1 2021: $14.3 million) after exploration and evaluation costs of $3.2 million (Q1 2021: $4.1 million), general and administrative costs of $4.3 million (Q1 2021: $3.5 million), and care and maintenance cost of $0.2 million (Q1 2021: $0.5 million). Operating earnings in Q1 2021 were also positively impacted by an impairment reversal of $16.8 million as a result of the valuation assessment done for El Cubo mine and related assets upon classification as held for sale.

Earnings before income taxes were $18.9 million (Q1 2021: $16.0 million) after finance costs of $0.3 million (Q1 2021: $0.3 million), a foreign exchange gain of $0.8 million (Q1 2021: loss of $0.7 million), and investment and other income of $5.8 million (Q1 2021: $2.7 million). The investment and other income during Q1 2022 primarily resulted from an unrealized gain on marketable securities and warrants of $5.4 million (Q1 2021: $2.5 million).

The Company realized net earnings for the period of $11.7 million (Q1 2021: $12.2 million) after an income tax expense of $7.2 million (Q1 2021: $3.8 million).   Current income tax expense increased to $1.0 million (Q1 2021 – $0.7 million) due to increased profitability impacting the special mining duty, while deferred income tax expense of $6.2 million is primarily due to the estimated use of loss carryforwards to reduce taxable income generated at both Guanacevi and Bolanitos (Q1 2021 – $3.1 million).

Direct operating costs ( 2) on a per tonne basis increased to $122.86, up 9% compared with Q1 2021 due to higher operating costs at Guanaceví and Bolañitos. Guanaceví and Bolañitos have seen increased labour, power and consumables costs and at Guanaceví, increased third party ore purchased and operating development have increased compared to the prior year.

Consolidated cash costs per oz, net of by-product credits, increased to $10.21 primarily due to the higher direct costs per tonne and lower gold credit driven by lower gold production compared to Q1 2021. AISC increased by 5% on a per oz basis compared to Q1 2021 as a result of higher cash costs, increased capital expenditures at Guanaceví, increased allocated general and administrative costs, offset by increased production.

The complete financial statements and management’s discussion & analysis can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov . All shareholders can receive a hard copy of the Company’s complete audited financial statements free of charge upon request. To receive this material in hard copy, please contact Investor Relations at 604-640-4804, toll free at 1-877-685-9775 or by email at info@edrsilver.com.

Conference Call

A conference call to discuss the Company’s Q1 2022 financial results will be held today at 10:00 a.m. PT / 1:00 p.m. ET. To participate in the conference call, please dial the numbers below.

Date & Time:

 

Wednesday, May 11, 2022 at 10:00 a.m. PT / 1:00 p.m. ET

 

 

 

Telephone:

 

Toll-free in Canada and the US +1-800-319-4610

Local or International +1-604-638-5340
Please allow up to 10 minutes to be connected to the conference call.

 

 

 

Replay:

 

A replay of the conference call will be available by dialing (toll-free)
+1-800-319-6413 in Canada and the US (toll-free) or +1-604-638-9010 outside of Canada and the US. The replay passcode is 8312#. The replay will also be available on the Company’s website at www.edrsilver.com .

 

 

 

About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.  Our philosophy of corporate social integrity creates value for all stakeholders.

SOURCE Endeavour Silver Corp.

Contact Information
Trish Moran
Interim Head of Investor Relations
Tel: (416) 564-4290
Email: pmoran@edrsilver.com

Website: 
www.edrsilver.com


Release – InPlay Oil Corp. Announces First Quarter 2022 Financial and Operating Results Highlighted by Record Quarterly Production and Financial Results

Posted on by Admin



InPlay Oil Corp. Announces First Quarter 2022 Financial and Operating Results Highlighted by Record Quarterly Production and Financial Results

News and Market Data on InPlay Oil Corp

CALGARY, Alberta, May 11, 2022 — InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) (“InPlay” or the “Company”) announces its record setting financial and operating results for the three months ended March 31, 2022, our first full quarter incorporating the acquisition of Prairie Storm Resources Corp. (“Prairie Storm”). InPlay’s condensed unaudited interim financial statements and notes, as well as Management’s Discussion and Analysis (“MD&A”) for the three months ended March 31, 2022 will be available at “www.sedar.com” and our website at “www.inplayoil.com”. Our corporate presentation will soon be available on our website.

First Quarter 2022 Financial &
Operating Highlights

  • Achieved record average quarterly production of 8,221 boe/d(1) (59% light crude oil and NGLs), an increase of 66% from first quarter production in 2021 of 4,965 boe/d
    (1) (70% light crude oil and NGLs) and an increase of 23% compared to our previous quarterly record of 6,687 boe/d(1) (61% light crude oil and NGLs) in the fourth quarter of 2021. Average production per weighted average basic share increased 31% compared to the first quarter of 2021 (34% on a debt adjusted(4) basis) and 3% compared to the fourth quarter of 2021 (9% on a debt adjusted basis).
  • Generated record quarterly adjusted funds flow (“AFF”)(2) of $29.4 million ($0.34 per weighted average basic share(3)), an increase of 381% compared to $6.1 million ($0.09 per weighted average basic share) in the first quarter of 2021 and an increase of 71% compared to $17.1 million ($0.23 per weighted average basic share) in the fourth quarter of 2021, our prior record quarter.
  • Increased operating netbacks
    (4) by 73% to $46.06/boe from $26.66/boe in the first quarter of 2021 and 17% compared to $39.43/boe in the fourth quarter of 2021, our prior record quarter.
  • Realized quarterly record operating income(4) and operating income profit margin(4) of $34.1 million and 65% respectively compared to $11.9 million and 60% in the first quarter of 2021; $24.3 million and 65% in the fourth quarter of 2021, our prior record quarter.
  • Reduced operating expenses by 10% to $12.96/boe compared to $14.37/boe in the first quarter of 2021, despite rising costs of services in the industry.
  • Generated free adjusted funds flow (“FAFF”)(4) of $7.8 million, a quarterly record for the Company.
  • Achieved a record quarterly annualized net debt(2) to earnings before interest, taxes and depletion (“EBITDA”)(4) ratio of 0.6, compared to 2.6 in the first quarter of 2021 and 1.1 in fourth quarter of 2021.
  • Realized net income of $18.8 million ($0.22 per basic share; $0.21 per diluted share) compared to a net loss of $7.5 million ($0.11 per basic and diluted share) in the first quarter of 2021.

Notes:

1.

See
“Reader Advisories – Production Breakdown by Product Type”

2.

Capital
management measure. See “Non-GAAP and Other Financial Measures” contained
within this press release.

3.

Supplementary
financial measure. See “Non-GAAP and Other Financial Measures” contained
within this press release.

4.

Non-GAAP
financial measure or ratio that does not have a standardized meaning under
International Financial Reporting Standards (IFRS) and GAAP and therefore may
not be comparable with the calculations of similar measures for other
companies. Please refer to “Non-GAAP and Other Financial Measures” contained
within this press release.

 

 

Financial and Operating Results:

(CDN) ($000’s)

Three months ended
March 31

 

2022

 

2021

 

Financial

 

 

Oil and natural gas sales

52,156

 

20,001

 

Adjusted funds flow(1)

29,379

 

6,105

 

Per share – basic (1)

0.34

 

0.09

 

Per share –diluted(1)

0.32

 

0.09

 

Per boe(1)

39.71

 

13.66

 

Comprehensive income (loss)

18,774

 

(7,536

)

Per share – basic

0.22

 

(0.11

)

Per share – diluted

0.21

 

(0.11

)

Capital expenditures – PP&E and E&E

21,562

 

12,209

 

Property acquisitions (dispositions)

(1

)

19

 

Corporate acquisitions

432

 

–

 

Net debt(1)

(73,392

)

(79,780

)

Shares outstanding

86,537,351

 

68,256,616

 

Basic weighted-average shares

86,449,636

 

68,256,616

 

Diluted weighted-average shares

90,964,311

 

68,256,616

 

 

 

 

Operational

 

 

Daily production volumes

 

 

Light and medium crude oil (bbls/d)

3,571

 

2,665

 

Natural gas liquids (bbls/d)

1,307

 

802

 

Conventional natural gas (Mcf/d)

20,054

 

8,994

 

Total (boe/d)

8,221

 

4,965

 

Realized prices(2)

 

 

Light and medium crude oil & NGLs ($/bbls)

97.50

 

55.75

 

Conventional natural gas ($/Mcf)

5.18

 

3.22

 

Total ($/boe)

70.50

 

44.76

 

Operating netbacks ($/boe)(3)

 

 

Oil and natural gas sales

70.50

 

44.76

 

Royalties

(10.27

)

(2.79

)

Transportation expense

(1.21

)

(0.94

)

Operating costs

(12.96

)

(14.37

)

Operating netback

46.06

 

26.66

 

Realized (loss) on derivative contracts

(0.81

)

(6.81

)

Operating netback (including realized derivative contracts)

45.25

 

19.85

 

 

(1)

Capital
management measure. See “Non-GAAP and Other Financial Measures” contained
within this press release.

(2)

Supplementary
financial measure. See “Non-GAAP and Other Financial Measures” contained
within this press release.

(3)

Non-GAAP
financial measure or ratio that does not have a standardized meaning under
International Financial Reporting Standards (IFRS) and GAAP and therefore may
not be comparable with the calculations of similar measures for other
companies. Please refer to “Non-GAAP and Other Financial Measures” contained
within this press release.

 

 

First Quarter 2022 Financial &
Operations Overview:

Production averaged 8,221 boe/d (59% light crude oil & NGLs)(1) in the first quarter of 2022 which includes the impact of a force majeure of a third party facility that affected March production by approximately 200 boe/d. Production increased by 66% compared to 4,965 boe/d (70% light crude oil & NGLs)
(1) in the first quarter of 2021 and 23% compared to 6,687 boe/d (61% light crude oil & NGLs)(1) in the fourth quarter of 2021. This resulted in a quarterly record $29.4 million of Adjusted Funds Flow (“AFF”) generated during the first quarter of 2022 and $7.8 million in Free Adjusted Funds Flow (“FAFF”) which reduced debt levels.

InPlay’s capital program for the first quarter of 2022 consisted of $21.6 million of capital expenditures. The Company drilled, completed and brought on production three (3.0 net) Extended Reach Horizontal (“ERH”) wells in Pembina, and two (1.7 net) Willesden Green wells on our newly acquired Prairie Storm assets, and participated in one (0.2 net) non-operated Willesden Green ERH well. The Company also completed the two (1.6 net) wells that were drilled in December on Prairie Storm Willesden Green assets and these wells were brought on production in the second half of January. A total of six (4.9 net) wells were drilled during the quarter, the most active quarter in the Company’s history. The first quarter capital program also included lease construction to expedite the second quarter drilling program and the construction of a small modular multi-well battery in Willesden Green to accommodate future drilling. Given the strong economics tied to the current pricing environment, InPlay also increased its well servicing expenditures in the quarter to optimize wells, activate wellbores that had been down and to reduce operating expenses on certain wells.

The average well results from the first quarter capital program are above our forecasted type curves with average payouts of wells (with over two months of production data) expected to be approximately three months in the current pricing environment. The initial production (“IP”) rates for the two (1.6 net) wells drilled in Willesden Green in December and brought on production in the second half of January, which are stabilizing ahead of forecast, were as follows:

 

IP 30

IP 60

IP 90

 

(% light crude oil and NGLs)

(% light crude oil and NGLs)

(% light crude oil and NGLs)

1.5 mile well

593 boe/d (80%)

433 boe/d (79%)

355 boe/d (78%)

1.0 mile well

203 boe/d (83%)

169 boe/d (77%)

161 boe/d (72%)

The combined IP rates for the three (3.0 net) ERH wells drilled in Pembina and brought on production ahead of schedule in late February continue to clean up as follows:

IP 30

IP 60

Current(1)

(% light crude oil and NGLs)

(% light crude oil and NGLs)

(% light crude oil and NGLs)

1,063 boe/d (73%)

1,122 boe/d (67%)

1,292 boe/d (55%)

The IP rates for the two (1.7 net) wells drilled in Willesden Green and brought on production in mid-March continue to clean up as follows:

 

IP 30

Current(1)

 

(% light crude oil and NGLs)

(% light crude oil and NGLs)

1.5 mile well

296 boe/d (88%)

415 boe/d (82%)

1.0 mile well*

126 boe/d (85%)

197 boe/d (80%)


* The 1.0 mile well had initially experienced wax and pumping issues.

(1)   Based on field
estimates.

Efficient field operations and increased production levels resulted in the Company achieving a 10% reduction to operating expenses to $12.96/boe compared to $14.37/boe in the first quarter of 2021. This was a significant achievement given the cold winter, inflationary pressures in the industry and ongoing supply chain disruptions. The resulting operating income(2) and operating income profit margin(2) for the first quarter of 2022 were quarterly records for the Company at $34.1 million and 65% respectively. Net income of $18.8 million ($0.22 per basic share; $0.21 per diluted share) was realized in the first quarter compared to a net loss of $7.5 million ($0.11 per basic and diluted share) in the first quarter of 2021.

Notes:

1.

See
“Reader Advisories – Production Breakdown by Product Type”

2.

Non-GAAP
financial measure or ratio that does not have a standardized meaning under
International Financial Reporting Standards (IFRS) and GAAP and therefore may
not be comparable with the calculations of similar measures for other
companies. Please refer to “Non-GAAP and Other Financial Measures”.

 

 

Operations Update

InPlay’s capital program for the second quarter of 2022 is ahead of schedule which will benefit the Company as production is anticipated to be brought on earlier than forecasted into a very strong price environment. Drilling operations for three (3.0 net) wells in Pembina have just finished and these wells are expected to come on production by the end of May. An additional two (1.9 net) two-mile wells are planned to be drilled in Willesden Green during the second quarter and are expected to come on production in mid-July. The Company plans to utilize the same drilling rig for the remainder of our 2022 capital program allowing for continued drilling efficiencies and cost savings associated with a consistent and experienced crew, materially reducing our inflation risk in the current environment.

Environmental, Social and Governance
(“ESG”) Update

InPlay is committed to environmental stewardship while safely and efficiently developing our assets that contribute to the local, provincial and Canadian economies. The Company will further outline our ESG initiatives with the release of our inaugural sustainability report this summer. We place a high importance on managing emissions, water conservation, spill mitigation and abandonment and reclamation activities. Our goal is to ensure all stakeholders benefit from our business operations both in the short-term and long into the future.

The Company continues to reduce our inactive well liability. During the first quarter of 2022, InPlay spent $1.4 million on the abandonment of 14 wellbores and the reclamation of 4 well sites. To further evidence our commitment to ESG initiatives, the Company has added approximately $1 million to our budget for emission related projects during 2022. Specifically, the Company will be accelerating projects to convert high-bleed pneumatic devices to low-bleed pneumatics and install vapor recovery units at certain facilities. These projects will have the benefit of materially reducing our emissions while also providing the Company with economic benefit through more efficient operations and gas conservation.

Outlook(4)

InPlay’s successful first quarter capital program has led to a strong start to the year and establishes a solid foundation to generate significant FAFF throughout the remainder of the year while providing strong returns to shareholders. InPlay’s production in April averaged approximately 9,000 boe/d(1) based on field estimates and is currently tracking at the mid-point of our average annual production guidance of 8,900 to 9,400 boe/d(1). The Company’s drilling program is ahead of schedule, and with approximately 70% of our planned 2022 wells remaining to be drilled and expected to be on production by the middle of the fourth quarter, InPlay is well positioned to deliver strong production and FAFF growth to its shareholders.

Strong commodity pricing, increased fuel prices, supply chain disruptions and increased activity levels have heightened inflationary pressures across the industry. One of the biggest issues has been the supply of steel casing and tubular products required to drill wells. InPlay has been able to mitigate these supply issues through strong industry relationships and proactive decision making. The Company proactively acquired an inventory of these products at favorable pricing in the summer and fall of 2021 to accommodate our H1 2022 drilling program. The Company has acquired all pipe products to accommodate our drilling program for the second half of the year, albeit at higher pricing levels. InPlay will also incur additional costs associated with drilling two (1.9 net) two mile wells (versus 1.5 mile wells in our original budget), and approximately $1 million for various emission reduction initiatives. In aggregate, these additional activities combined with inflationary pressures has our 2022 capital budget increased to $64 million (previously $58 million). The Company will continue to monitor industry wide cost pressures and efforts will be taken to minimize their impact on our operations.

With the further strengthening of commodity prices and our updated capital budget, InPlay now forecasts 2022 AFF(2) of $147 to $156 million (versus prior guidance of $141 to $150 million) with FAFF(3) at $83 to $92 million (in line with prior guidance), which would result in InPlay being in a positive working capital position, in excess of debt, by year end. The Company’s leverage metrics are forecasted to remain at historically low levels, with net debt to quarterly annualized earnings before interest, taxes and depletion (“EBITDA”)
(3) forecasted to be 0.3x for the second quarter of 2022.

InPlay is executing its strategy to provide disciplined, top-tier light oil weighted production and FAFF per share growth, reducing debt and leverage ratios, while seeking to capitalize on strategic and accretive acquisition opportunities with our pristine balance sheet. Execution of InPlay’s disciplined strategy is significantly ahead of schedule on debt and leverage reduction which places the Company in a solid position to sustainably generate long-term per share growth and deliver top-tier returns to shareholders in a prudent and fiscally responsible manner. Management would like to thank our employees, board members, lenders and shareholders for their support and we look forward to continuing our journey of deleveraging and maximizing shareholder returns.

For further information please contact:

 

 

 

Doug Bartole

Darren Dittmer

President and Chief Executive Officer

Chief Financial Officer

InPlay Oil Corp.

InPlay Oil Corp.

Telephone: (587) 955-0632

Telephone: (587) 955-0634

 

Notes:

1.

See
“Production Breakdown by Product Type” at the end of this press release.

2.

Capital
management measure. See “Non-GAAP and Other Financial Measures” contained
within this press release.

3.

Non-GAAP
financial measure or ratio that does not have a standardized meaning under
International Financial Reporting Standards (IFRS) and GAAP and therefore may
not be comparable with the calculations of similar measures for other
companies. Please refer to “Non-GAAP and Other Financial Measures” contained
within this press release.

4.

See
“Reader Advisories – Forward Looking Information and Statements” for key
budget and underlying assumptions related to our 2022 capital program and
associated guidance.

 

 

 

Reader Advisories

Non-GAAP and Other Financial Measures

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

Non-GAAP
Financial Measures and Ratios

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

Free Adjusted Funds Flow

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

(thousands of dollars)

Three Months Ended
March 31

 

2022

 

2021

 

Adjusted funds flow

29,379

 

6,105

 

Exploration and dev. capital expenditures

(21,562

)

(12,209

)

Property dispositions (acquisitions)

1

 

(19

)

Free adjusted funds flow

7,818

 

(6,123

)

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

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

(thousands of dollars)

Three Months Ended
March 31

 

2022

 

2021

 

Revenue

52,156

 

20,001

 

Royalties

(7,599

)

(1,245

)

Operating expenses

(9,588

)

(6,422

)

Transportation expenses

(893

)

(418

)

Operating income (2)

34,076

 

11,916

 

 

 

 

Sales volume (Mboe)

739.9

 

446.9

 

Per boe

 

 

Revenue

70.50

 

44.76

 

Royalties

(10.27

)

(2.79

)

Operating expenses

(12.96

)

(14.37

)

Transportation expenses

(1.21

)

(0.94

)

Operating netback per boe

46.06

 

26.66

 

Operating income profit margin

65

%

60

%

Net Debt to EBITDA

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

Production per Debt Adjusted Share

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

 

 

Three months ended
March 31

 

 

2022

2021

 

 

 

 

Production

Boe/d

8,221

4,965

Net Debt

$ millions

$73.4

$79.8

Weighted average outstanding shares

# millions

86.4

68.3

Assumed Share price(2)

$

3.20

N/A

Production per debt adjusted share growth(2)

 

34%

N/A

 

 

 

Three months ended

 

 

March 31,
2022

Dec. 31,
2021

Production

Boe/d

8,221

6,687

Net Debt

$ millions

$73.4

$80.2

Weighted average outstanding shares

# millions

86.4

74.3

Assumed Share price(2)

$

3.20

N/A

Production per debt adjusted share growth(2)

 

9%

N/A

 

 

(1)

Production per debt adjusted share is calculated by the Company as production divided by debt adjusted shares. Debt adjusted shares is calculated by the Company as common shares outstanding plus the change in net debt divided by the Company’s current trading price on the TSX, converting net debt to equity. Share price at December 31, 2022 is assumed to be consistent with the share price at December 31, 2021.

 

(2)

Weighted average share price throughout the first quarter of 2022.

 

 

 

Capital
Management Measures

Adjusted Funds Flow

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

Net Debt

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

Supplementary
Measures

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

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

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

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

“Adjusted funds flow per weighted
average basic share” is comprised of adjusted funds flow divided by the basic weighted average common shares.

“Adjusted funds flow per weighted
average diluted share” is comprised of adjusted funds flow divided by the diluted weighted average common shares.

“Adjusted funds flow per
boe” is comprised of adjusted funds flow divided by total production.

Forward-Looking Information and
Statements

This news release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “forecast” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following; the Company’s planned 2022 capital program including wells to be drilled and completed and the timing of the same; 2022 guidance based on the planned capital program including forecasts of 2022 annual average production levels, debt adjusted production levels, adjusted funds flow, free adjusted funds flow, Net Debt/EBITDA ratio, operating income profit margin, and Management’s belief that the Company can grow some or all of these attributes and specified measures; light crude oil and NGLs weighting estimates; expectations regarding future commodity prices; future oil and natural gas prices; future liquidity and financial capacity; future results from operations and operating metrics; future costs, expenses and royalty rates; future interest costs; the exchange rate between the $US and $Cdn; future development, exploration, acquisition, development and infrastructure activities and related capital expenditures, including our planned 2022 capital program; the amount and timing of capital projects; forecasted spending on decommissioning and emission reduction projects in 2022; the expectation that InPlay will be in a positive working capital position by 2022 year end; the expectation that the Company will experience inflationary cost pressures in the second half of 2022; the Company’s planned 2022 abandonment and reclamation program, including the abandonments and reclamations to be completed, forecasted spending on these activities, reduction to our ARO and forecasted LMR rating; the planned release of InPlay’s inaugural sustainability report in the summer of 2022; and methods of funding our capital program.

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of InPlay which have been used to develop such statements and information but which may prove to be incorrect. Although InPlay believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because InPlay can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which InPlay operates; the timely receipt of any required regulatory approvals; the ability of InPlay to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which InPlay has an interest in to operate the field in a safe, efficient and effective manner; the ability of InPlay to obtain debt and/or equity financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and the ability of InPlay to secure adequate product transportation; future commodity prices; that various conditions to a shareholder return strategy can be satisfied; expectations regarding the potential impact of COVID-19 and the Russia/Ukraine conflict; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which InPlay operates; and the ability of InPlay to successfully market its oil and natural gas products.   

The forward-looking information and statements included herein are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: the continuing impact of the COVID-19 pandemic and the Russia/Ukraine conflict; changes in our planned 2022 capital program; changes in commodity prices and other assumptions outlined herein; the potential for variation in the quality of the reservoirs in which we operate; changes in the demand for or supply of our products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans or strategies of InPlay or by third party operators of our properties; changes in our credit structure, increased debt levels or debt service requirements; inaccurate estimation of our light crude oil and natural gas reserve and resource volumes; limited, unfavorable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in InPlay’s continuous disclosure documents filed on SEDAR including our Annual Information Form and our MD&A.

The internal projections, expectations or beliefs underlying the Company’s 2022 capital budget, associated guidance and corporate outlook for 2022 and beyond are subject to change in light of ongoing results, prevailing economic circumstances, commodity prices and industry conditions and regulations. InPlay’s outlook for 2022 and beyond provides shareholders with relevant information on management’s expectations for results of operations, excluding any potential acquisitions, dispositions or strategic transactions that may be completed in 2022 and beyond including, without limitation, the potential impact of any shareholder return strategy that may be implemented in the future. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted and InPlay’s 2022 guidance and outlook may not be appropriate for other purposes.

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

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

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

 

 

Actuals
FY 2021

Previous Guidance
FY 2022(1)

Updated Guidance
FY 2022

WTI

US$/bbl

$67.91

$90.00

$95.40

NGL Price

$/boe

$37.79

$52.35

$47.80

AECO

$/GJ

$3.44

$4.30

$6.00

Foreign Exchange Rate

CDN$/US$

0.80

0.80

0.79

MSW Differential

US$/bbl

$3.88

$3.00

$2.70

Production

Boe/d

5,768

8,900 – 9,400

8,900 – 9,400

Royalties

$/boe

5.51

9.80 – 10.60

11.50 – 13.00

Operating Expenses

$/boe

12.83

10.00 – 13.00

11.00 – 14.00

Transportation

$/boe

1.11

0.85 – 1.10

1.05 – 1.30

Interest

$/boe

2.67

0.75 – 1.15

0.85 – 1.25

General and Administrative

$/boe

2.83

2.00 – 2.60

2.40 – 2.95

Hedging loss

$/boe

6.20

0.35 – 0.65

1.85 – 2.15

Decommissioning Expenditures

$ millions

$1.4

$2.0 – $2.5

$2.0 – $2.5

Adjusted Funds Flow

$ millions

$47.0

$141 – $150

$147 – $156

Weighted average outstanding shares

# millions

69.8

86.2

86.5

Adjusted Funds Flow per share

$/share

0.67

1.64 – 1.75

1.70 – 1.80

 

 

 

Actuals
FY 2021

Previous Guidance
FY 2022(1)

Updated Guidance
FY 2022

Adjusted Funds Flow

$ millions

$47.0

$141 – $150

$147 – $156

Capital Expenditures

$ millions

$33.3

$58.0

$64.0

Free Adjusted Funds Flow

$ millions

$13.6

$83 – $92

$83 – $92

Shares outstanding, end of year

# millions

86.2

86.2

86.5

Assumed Share Price

$

2.18(4)

3.06

3.66

Market capitalization

$ millions

$188

$264

$317

FAFF Yield

%

7%

31% – 35%

26% – 29%

 

 

 

Actuals
FY 2021

Previous Guidance
FY 2022(1)

Updated Guidance
FY 2022

Adjusted Funds Flow

$ millions

$47.0

$141 – $150

$147 – $156

Interest

$/boe

2.67

0.75 – 1.15

0.85 – 1.25

EBITDA

$ millions

$52.6

$144 – $153

$150 – $159

Net Debt/(Positive working capital, in excess of debt)

$ millions

$80.2

($1) – ($10)

($1) – ($10)

Net Debt/EBITDA

 

1.5

0.0 – 0.1

0.0 – 0.1

 

 

 

Actuals
Q2 2021

Previous Guidance
FY 2022(1)

Updated Guidance
Q2 2022

Adjusted Funds Flow

$ millions

$8.2

 

$37 – $40

Interest

$/boe

3.27

 

1.00 – 1.25

EBITDA

$ millions

$9.8

 

$38 – $41

Annualized EBITDA

$ millions

$39.2

 

$154 – $162

Net Debt/(Positive working capital, in excess of debt)

$ millions

$76.1

 

$50 – $53

Net Debt/EBITDA

 

1.9

N/A(3)

0.3

 

 

 

Actuals
FY 2021

Previous Guidance
FY 2022(1)

Updated Guidance
FY 2022

Production

Boe/d

5,768

8,900 – 9,400

8,900 – 9,400

Opening Net Debt

$ millions

$73.7

$80.2

$80.2

Ending Net Debt/(Pos. working capital, in excess of debt)

$ millions

$80.2

($1) – ($10)

($1) – ($10)

Weighted average outstanding shares

# millions

69.8

86.2

86.5

Assumed Share price

$

1.16(5)

3.06

3.66

Production per debt adjusted share growth(2)

 

31%

85% – 95%

70% – 80%

 

 

 

Actuals
FY 2021

Previous Guidance
FY 2022(1)

Updated Guidance
FY 2022

Share outstanding, end of year

# millions

86.2

86.2

86.5

Assumed Share price

$

2.18(3)

3.06

3.66

Market capitalization

$ millions

$188

$264

$317

Net Debt/(Positive working capital, in excess of debt)

$ millions

$80.2

($1) – ($10)

($1) – ($10)

Enterprise value

$millions

$268.2

$253 – $261

$307 – $316

Adjusted Funds Flow

$ millions

$44.1

$141 – $150

$147 – $156

Interest

$/boe

2.67

0.75 – 1.15

0.85 – 1.25

Debt Adjusted AFF

$ millions

$49.7

$144 – $153

$151 – $160

EV/DAAFF

 

5.4

1.6 – 1.8

1.9 – 2.1

 

 

(1)

As previously released March 16, 2022.

 

(2)

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

 

(3)

Guidance had not been previously released for this measure.

 

(4)

Ending share price at December 31, 2021.

 

(5)

Weighted average share price throughout 2021.

 

•

See “Production Breakdown by Product Type” below

 

•

Quality and pipeline transmission adjustments may impact realized oil prices in addition to the MSW Differential provided above

 

•

Changes in working capital are not assumed to have a material impact between Dec 31, 2021 and Dec 31, 2022.

 

 

 

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

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

 

Light and Medium
Crude oil
(bbls/d)

 

NGLS
(boe/d)

 

Conventional Natural gas
(Mcf/d)

 

Total
(boe/d)

Q1 2021 Average Production

2,665

 

802

 

8,994

 

4,965

Q4 2021 Average Production

3,156

 

932

 

15,589

 

6,687

2021 Average Production

2,981

 

782

 

12,030

 

5,768

Q1 2022 Average Production

3,571

 

1,307

 

20,054

 

8,221

2022 Annual Guidance

4,320

 

1,311

 

21,114

 

9,150(1)

April 2022 Average Production

3,971

 

1,447

 

21,492

 

9,000

 

Note:

 

1.

This
reflects the mid-point of the Company’s 2022 production guidance range of
8,900 to 9,400 boe/d.

 

2.

With
respect to forward-looking production guidance, product type breakdown is
based upon management’s expectations based on reasonable assumptions but are
subject to variability based on actual well results.

 

 

 

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

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

Oil and Gas Metrics
This presentation may contain metrics commonly used in the oil and natural gas industry, such as “payout”. This term does not have standardized meaning or standardized methods of calculation and therefore may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Management uses oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare InPlay’s operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this presentation, should not be unduly relied upon.

“Payout” refers to the time required to pay back the capital expenditures (on a before tax basis) of a project.

Release – PDS Biotech Provides Business Update and Reports First Quarter 2022 Financial Results

Posted on by Admin



PDS Biotech Provides Business Update and Reports First Quarter 2022 Financial Results

Research, News, and Market Data on PDS Biotech

Company to host
conference call and webcast today, May 11, 2022, at 8:00 AM EDT

FLORHAM PARK, N.J., May 11, 2022 (GLOBE NEWSWIRE) — PDS Biotechnology Corporation (Nasdaq: PDSB), a clinical-stage immunotherapy company developing a growing pipeline of molecularly targeted cancer immunotherapies and infectious disease vaccines based on the Company’s proprietary Versamune® and Infectimune™ T-cell activating technologies, will discuss its financial results for the quarter ended March 31, 2022, and provide a business update on its conference call today.

“2022 is shaping up to be an incredibly productive year for PDS Biotech,” commented Dr. Frank Bedu-Addo, President and Chief Executive Officer of the Company. “As we continue to make significant clinical progress on our lead oncology candidate, PDS0101, we’re looking ahead to presentations of preliminary data from our two most advanced Phase 2 clinical trials at this year’s ASCO meeting in early June. We believe ASCO’s selection of the preliminary data from both trials for presentation at the June meeting is a testament to the quality of work being done by our team and our partners, as well as the potential demonstrated by PDS0101 in treating advanced HPV-associated cancers. We look forward to sharing these efficacy and safety data in the near term. In addition, we continue to leverage our proprietary platforms to advance our pre-clinical pipeline into clinical studies, focused on a variety of cancer targets and infectious diseases. Lastly, due to our partnering model and our financial discipline, we finished the quarter with a strong cash balance which we project to fund our current operations into 2024.”

Recent Business Highlights:

  • Announced two abstracts accepted for poster presentation during the 2022 American Society of Clinical Oncology (ASCO) Annual Meeting taking place June 3-7 in Chicago:
    • The poster presentation of Abstract # 6041 will summarize updates to the preliminary efficacy and safety data from the PDS-sponsored VERSATILE-002 Phase 2 clinical trial, which is evaluating PDS0101 in combination with Merck’s anti-PD-1 therapy KEYTRUDA® (pembrolizumab) for the treatment of recurrent or metastatic HPV16-positive head and neck cancer.
    • The poster presentation of Abstract # 2518 will summarize updates from last year’s ASCO presentation to efficacy and survival data, as well as new findings from the ongoing National Cancer Institute (NCI)-led Triple Combination Phase 2 clinical trial. This trial is evaluating PDS0101 in combination with two investigational immune-modulating agents across the range of HPV16-positive advanced relapsed refractory cancers.
  • In April, received $1.2 million from the net sale of tax benefits to an unrelated, profitable New Jersey corporation pursuant to the Company’s participation in the New Jersey Technology Business Tax Certificate Transfer Net Operating Loss (NOL) program for State Fiscal Year 2021.
  • Announced that the NCI achieved the enrollment objective of 30 patients in the checkpoint inhibitor (CPI) refractory arm of the Triple Combination Phase 2 clinical trial for PDS0101.

First Quarter 2022
Financial Results
PDS Biotech reported a net loss of approximately $8.5 million, or $0.32 per basic share and diluted share, for the three months ended March 31, 2022 compared to a net loss of approximately $3.0 million, or $0.14 per basic share and diluted share, for the three months ended March 31, 2021.

Research and development (R&D) expenses increased to approximately $5.2 million for the three months ended March 31, 2022 from approximately $1.4 million for the three months ended March 31, 2021. The increase of approximately $3.7 million in 2022 was primarily attributable to an increase of $1.8 million in manufacturing services and quality costs, $1.04 million in clinical study and regulatory costs, $0.8 million in personnel costs and $0.06 million in facilities.

General and administrative expenses increased to approximately $3.3 million for the three months ended March 31, 2022 from approximately $1.6 million for the three months ended March 31, 2021. The increase of approximately $1.7 million is primarily attributable to an increase of $1.0 million in personnel costs, $0.6 million in legal fees and $0.1 in marketing expenses.

Total operating expenses increased to approximately $8.5 million for the three months ended March 31, 2022 from approximately $3.0 million for the three months ended March 31, 2021 for the reasons described above. 

PDS Biotech’s cash balance as of March 31, 2022 was approximately $58.9 million.

Conference Call and
Webcast
The conference call is scheduled to begin at 8:00 AM EDT on Wednesday, May 11, 2022. Participants should dial 877-407-3088 (United States) or 201-389-0927 (International) and reference conference ID 13728184. To access the webcast, please use the following link PDS Biotech Earnings Webcast. The event will be archived in the investor relations section of PDS Biotech’s website for six months. 

About PDS Biotechnology
PDS Biotech is a clinical-stage immunotherapy company developing a growing pipeline of molecularly targeted cancer and infectious disease immunotherapies based on the Company’s proprietary Versamune® and Infectimune™ T-cell activating technology platforms. Our Versamune®-based products have demonstrated the potential to overcome the limitations of current immunotherapy by inducing in vivo, large quantities of high-quality, highly potent polyfunctional tumor specific CD4+ helper and CD8+ killer T-cells. PDS Biotech has developed multiple therapies, based on combinations of Versamune® and disease-specific antigens, designed to train the immune system to better recognize diseased cells and effectively attack and destroy them. The Company’s pipeline products address various cancers including HPV16-associated cancers (anal, cervical, head and neck, penile, vaginal, vulvar) and breast, colon, lung, prostate and ovarian cancers.

Our Infectimune™ -based vaccines have demonstrated the potential to induce not only robust and durable neutralizing antibody responses, but also powerful T-cell responses including long-lasting memory T-cell responses. To learn more, please visit www.pdsbiotech.com or follow us on Twitter at @PDSBiotech.

Forward Looking
Statements
This communication contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning PDS Biotechnology Corporation (the “Company”) and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, management. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” “forecast,” “guidance”, “outlook” and other similar expressions among others. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the Company’s ability to protect its intellectual property rights; the Company’s anticipated capital requirements, including the Company’s anticipated cash runway and the Company’s current expectations regarding its plans for future equity financings; the Company’s dependence on additional financing to fund its operations and complete the development and commercialization of its product candidates, and the risks that raising such additional capital may restrict the Company’s operations or require the Company to relinquish rights to the Company’s technologies or product candidates; the Company’s limited operating history in the Company’s current line of business, which makes it difficult to evaluate the Company’s prospects, the Company’s business plan or the likelihood of the Company’s successful implementation of such business plan; the timing for the Company or its partners to initiate the planned clinical trials for PDS0101, PDS0203 and other Versamune® and Infectimune™-based product candidates; the future success of such trials; the successful implementation of the Company’s research and development programs and collaborations, including any collaboration studies concerning PDS0101, PDS0203 and other Versamune® and Infectimune™-based product candidates and the Company’s interpretation of the results and findings of such programs and collaborations and whether such results are sufficient to support the future success of the Company’s product candidates; the success, timing and cost of the Company’s ongoing clinical trials and anticipated clinical trials for the Company’s current product candidates, including statements regarding the timing of initiation, pace of enrollment and completion of the trials (including the Company’s ability to fully fund its disclosed clinical trials, which assumes no material changes to our currently projected expenses), futility analyses, presentations at conferences and data reported in an abstract, and receipt of interim results (including, without limitation, any preclinical results or data), which are not necessarily indicative of the final results of the Company’s ongoing clinical trials; any Company statements about its understanding of product candidates mechanisms of action and interpretation of preclinical and early clinical results from its clinical development programs and any collaboration studies; and other factors, including legislative, regulatory, political and economic developments not within the Company’s control, including unforeseen circumstances or other disruptions to normal business operations arising from or related to COVID-19. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company’s annual and periodic reports filed with the SEC. The forward-looking statements are made only as of the date of this press release and, except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Versamune® is a registered trademark and Infectimune™ is a trademark of PDS Biotechnology.

KEYTRUDA® is a registered trademark of Merck Sharp and Dohme Corp. a subsidiary of Meck & Co., Inc. Kenilworth, NJ USA.

Investor Contact:
Rich Cockrell
CG Capital
Phone: +1 (404) 736-3838
Email: 
pdsb@cg.capital


PDS BIOTECHNOLOGY CORPORATION AND SUBSIDIARY
Condensed Consolidated Statements of Operations and
Comprehensive Loss
(Unaudited)

 

March 31, 2022

 

December 31, 2021

ASSETS

(unaudited)

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

58,881,101

 

 

$

65,242,622

 

Prepaid expenses and other

 

1,849,406

 

 

 

1,597,569

 

Total current assets

 

60,730,507

 

 

 

66,840,191

 

 

 

 

 

 

 

Property and equipment, net

 

–

 

 

 

86

 

Operating lease right-to-use asset

 

308,327

 

 

 

357,611

 

 

 

 

 

 

 

Total assets

$

61,038,834

 

 

$

67,197,888

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

2,745,709

 

 

$

1,309,403

 

Accrued expenses

 

1,961,468

 

 

 

2,187,704

 

Operating lease obligation-short term

 

311,311

 

 

 

258,924

 

Total current liabilities

 

5,018,488

 

 

 

3,756,031

 

 

 

 

 

 

 

Noncurrent liability:

 

 

 

 

 

Operating lease obligation-long term

 

146,980

 

 

 

231,430

 

Total Liabilities:

$

5,165,468

 

 

$

3,987,461

 

     

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock, $0.00033 par value, 75,000,000 shares authorized at March 31, 2022 and December 31, 2021, 28,450,894 shares and 28,448,612 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively

 

9,388

 

 

 

9,387

 

Additional paid-in capital

 

125,041,062

 

 

 

123,904,602

 

Accumulated deficit

 

(69,177,084

)

 

 

(60,703,562

)

Total stockholders’ equity

 

55,873,366

 

 

 

63,210,427

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

$

61,038,834

 

 

$

67,197,888

 

PDS BIOTECHNOLOGY CORPORATION AND SUBSIDIARY
Condensed Consolidated Statements of Operations and
Comprehensive Loss
(Unaudited)

 

Three Months Ended March 31,

 

2022

 

 

2021

 

Operating expenses:

 

 

 

 

 

Research and development expenses

$

5,161,315

 

 

$

1,413,057

 

General and administrative expenses

 

3,317,907

 

 

 

1,636,216

 

 

 

 

 

 

 

Total operating expenses

 

8,479,222

 

 

 

3,049,273

 

 

 

 

 

 

 

Loss from operations

 

(8,479,222

)

 

 

(3,049,273

)

 

 

 

 

 

 

Other income

 

 

 

 

 

Interest income

 

5,700

 

 

 

655

 

 

 

 

 

 

 

Net loss and comprehensive loss

$

(8,473,522

)

 

$

(3,048,618

)

 

 

 

 

 

 

Per share information:

 

 

 

 

 

Net loss per share, basic

$

(0.32

)

 

$

(0.14

)

Net loss per share, diluted

$

(0.32

)

 

$

(0.14

)

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

26,161,156

 

 

 

22,263,838

 

Weighted average common shares outstanding, diluted

 

26,161,156

 

 

 

22,263,838

 

PDS BIOTECHNOLOGY CORPORATION AND SUBSIDIARY
Condensed Consolidated Statements
of Cash Flows
(Unaudited)

 

Three Months Ended March 31,

 

2022

 

 

2021

 

Cash flows from
operating activities:

 

 

 

Net loss

$

(8,473,522

)

 

$

(3,048,618

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

Stock-based compensation expense

 

1,128,973

 

 

 

257,622

 

Stock-based 401K company common match

 

–

 

 

 

35,747

 

Depreciation expense

 

86

 

 

 

1,860

 

Operating lease expense

 

60,257

 

 

 

60,257

 

Changes in assets and liabilities:

 

 

 

 

 

Prepaid expenses and other assets

 

(251,837

)

 

 

(721,849

)

Accounts payable

 

1,436,306

 

 

 

(464,626

)

Accrued expenses

 

(226,236

)

 

 

119,473

 

Operating lease liabilities

 

(43,036

)

 

 

(42,057

)

 

 

 

 

 

 

Net cash used in operating activities

 

(6,369,009

)

 

 

(3,802,191

)

 

 

 

 

 

 

Cash flow from
financing activities:

 

 

 

 

 

Proceeds from exercise of stock options

 

7,488

 

 

 

–

 

Net cash provided by financing activities

 

7,488

 

 

 

–

 

 

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash
and cash equivalents

 

(6,361,521

)

 

 

(3,802,191

)

Cash and cash equivalents at beginning of period

 

65,242,622

 

 

 

28,839,565

 

 

 

 

 

 

 

Cash and cash
equivalents at end of period

$

58,881,101

 

 

$

25,037,374

 

Release – Award-Winning NBC reporter Michele Tafoya joins the Salem Podcast Network

Posted on by Admin



Award-Winning NBC reporter Michele Tafoya joins the Salem Podcast Network

Research, News, and Market Data on Salem Media


IRVING, Texas–(BUSINESS WIRE)– Salem
Media Group, Inc. (NASDAQ: SALM) announced today that Salem Podcast Network has signed former NBC Sideline Reporter Michele Tafoya to host a new podcast called “Sideline Sanity”. The podcast, which will air four episodes a week beginning Monday, May 23rd, will focus on life, politics, and world news.

“I’m thrilled to launch my first podcast with the Salem Podcast Network,” Michele said. “It’s exciting to join the chorus of talented Salem voices discussing the historic issues facing America and the world.”

The Salem Podcast network launched in January 2021 and is already ranked as the 11th most listened to podcast network on the Triton Digital platform, with 17 million average downloads per month.

“I cannot wait for the rest of the country to get to know Minnesota’s own Michele Tafoya beyond her successful years of reporting from the sidelines,” said Salem Twin Cities General Manager Nic Anderson. “She’s full of insight, passionate about her platform and she’s ready to speak her mind. And Salem Media-Twin Cities is eager to help as we produce her podcast for a national audience and look forward to working with her locally as opportunities arise,” added Anderson.

Michele Tafoya is an award-winning sportscaster and political commentator. Michele recently announced her retirement as the longtime sideline reporter for NBC’s Sunday Night Football. Since her start with the network in 2011, Michele has won four Emmys for her work on the field in the Outstanding Sports Personality –Sports Reporter category and has recently been nominated a tenth time for the 2021-2022 season. Michele is the only reporter nominated every year of the award’s existence. After her last game at Superbowl LVI in 2022, she announced her involvement as co-chair for Republican candidate Kendall Qualls’ campaign for governor of Minnesota. She also recently appeared as a guest host on THE VIEW as well, holding her own and speaking her truth alongside the panel.

With a career spanning over 30 years, Michele is a versatile talent who has covered nearly every sport, from the Super Bowl LII (2018) to the 2016 Olympic Summer Games in Rio, Brazil. She has helped pave the way for the younger generation of women sportscasters and cares deeply about making a difference in this country. Tafoya received a Bachelor of Arts degree in Mass Communications from the University of California, Berkeley in 1988, and a Master’s degree in Business Administration from the University of Southern California in 1991. She currently resides in Minnesota with her family.

ABOUT SALEM MEDIA GROUP:

Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape. Learn more about Salem Media Group, Inc. at www.salemmedia.com, Facebook and Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220428006200/en/

Evan D. Masyr
Executive Vice President and Chief Financial Officer
(805) 384-4512
evan@salemmedia.com

Source: Salem Media Group, Inc.