On September 29, 2020 IMMUNOPRECISE ANTIBODIES LTD. (the "Company" or "IPA") (TSX VENTURE: IPA) (OTCQB: IPATF) reported financial results for its fiscal year 2021 first quarter ended July 31, 2020 (Press release, ImmunoPrecise Antibodies, SEP 29, 2020, View Source [SID1234567730]).
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Q1 Fiscal 2021 Financial Highlights:
• Revenue increases by $1.1 million, or 39%, to $3.8 million versus $2.7 million for Q1 2020
• Gross profit increases by $1.1 million to 64% of revenue vs 51% of revenue for the prior year period.
• Adjusted EBITDA increases to $932,000 compared to a loss of $481, 000 for the same period last year.
• Cash on hand is $6.0 million as of July 31, 2020.
• Warrants exercised after quarter-end through September 28, 2020 provide $9.7 million in cash in exchange for 7.8 million shares of stock, all warrants expiring September 24, 2020 were exercised.
Financial Results
Revenue. The Company achieved revenues of $3,764,977 during the three months ended July 31, 2020, compared to revenues of $2,716,099 during the same quarter in 2019. This represents a 39% increase in revenue for the period. The increasing revenue trend is due to increases in both volume and financial value of client contracts as a result of continued focus on expanding the breadth and depth of services offered, new client onboarding including top pharma companies, and growing its core existing client business.
Gross Margin. During the three months ended July 31, 2020, the Company achieved a gross profit of $2,410,326, compared to $1,376,406 in 2019. This represents a 64% increase compared to 51% for the same period last year.
Net Loss. The Company recorded a net loss of $549,318 during the three months ended July 31, 2020, compared to net loss of $2,012,198 for the three months ended July 31, 2019, primarily due to higher revenue and gross profit as well as an increase in Other Income as a result of research grant awards and government subsidies.
Non-IFRS Measures. * Adjusted EBITDA for the three months ended July 31, 2020 was $932,716 compared to ($481,499) for same period last year. This significant improvement in Adjusted EBITDA is primarily a result of the increase in gross profit and research grant awards and government subsidies.
Warrant Exercises. During the first quarter, 3,305,500 warrants were exercised issuing shares of common stock for $3,566,474 in cash. Subsequent to quarter-end, 7,813,000 warrants were exercised issuing shares of common stock for $9,725,000 in cash. All warrants expiring September 24, 2020 were exercised.
Dr. Jennifer Bath, CEO and President of ImmunoPrecise, commented, "This has been a transformative quarter, both financially and operationally. We achieved solid revenues, as we added new clients and expanded services with our existing clients. As a result, we achieved positive adjusted EBITDA and cash flow from operations. At the same time, we have further strengthened our balance sheet and enhanced our capital structure through the exercise of warrants, providing the opportunity to generate more intellectual property assets."
"Operationally, we continue to make tremendous progress, advancing programs both with our clients as well as our proprietary COVID-19 programs. We recently announced an important research collaboration with Zymeworks Inc., providing us access to their Zymeworks’ Azymetric and EFECT platforms for the further development of multiple antibody candidates to fight COVID-19. Most recently, we announced the initiation of pre-clinical vaccine trials against SARS-CoV-2 together with LiteVax BV (Oss, the Netherlands). Overall, we are rapidly advancing our Polytope Therapy and Vaccine programs, which we believe represent the most comprehensive and diverse antibody cocktail approach globally."
"Given our financial and operational progress, we felt this was the appropriate time to commence our NASDAQ listing process. As the world’s pre-eminent exchange for biotech and pharma companies, we believe a NASDAQ listing will provide us greater exposure within the investment community as we execute on key upcoming milestones."
IPA periodically provides information for investors on its corporate website, www.immunoprecise.com. This includes press releases and other information on financial performance, reports filed or furnished with the TSX, information on corporate governance and details related to its annual meeting of shareholders. Reports filed or furnished with the TSX can be found at www.sedar.com.