Ceapro Inc. Reports 2023 Third Quarter and Nine-Month Financial Results and Operational Highlights
29 11월 2023 - 11:05PM
Ceapro Inc. (TSX-V: CZO; OTCQX:
CRPOF) (“Ceapro” or the “Company”), a growth-stage
biotechnology company focused on the development and
commercialization of active ingredients for healthcare and cosmetic
industries, today announced financial results and operational
highlights for the third quarter and nine months ended September
30, 2023.
“While the base business has experienced some
challenges, mainly due to changes in the marketplace, we are very
encouraged by the significant advancements we have made in new
products and technologies development. Further, over the past
quarter we remained very active with strategic corporate
initiatives aimed towards achieving a stated objective related to
uplisting Ceapro to an international stock exchange. We are also
very pleased with the recent signing of an extended supply and
distribution agreement reinforcing our relationship with long-time
partner Symrise,” stated Gilles Gagnon, M.Sc., MBA, President and
CEO.
Corporate and Operational
Highlights
Pipeline Development:The
Company’s focus is on avenanthramides, beta glucan from oat and
yeast and new chemical complexes/delivery systems.
Avenanthramides & Oat Beta Glucan
Marketed products:
Powder formulations for cosmeceuticals
- Successfully developed powder
formulations of oat beta glucan to serve the cosmetic market,
especially in China. Such formulations are to be resolubilized
locally by Symrise and used for hair care and facial masks.
- Developed powder formulation of
high avenanthramides concentration for enriched skin formulations.
Of note, Ceapro’s partner Symrise relaunched under a solid form an
avenanthramide derivative product that they had marketed for almost
two decades. While this relaunched analog is a byproduct from
another oat-based extracted product not sold by Ceapro, it is
produced in very small volumes and does not compete with Ceapro’s
products nor with Symrise-Ceapro exclusive customers. However, the
relaunch of this product by Symrise might be a proof of concept
demonstrating an appetite from the cosmeceutical market to use
powder formulations. Symrise and Ceapro are jointly assessing such
potential opportunities.
Clinical Development:
Avenanthramides (AVS)
Formulation:
- Stability studies are ongoing for
the 30mg and 240mg pills formulation manufactured, packaged and
labeled by Corealis Inc. GMP Manufacturing Services.
Phase 1-2a Clinical Trial:
- Completed development of a bioassay
for analytical measurement of avenanthramides in blood and urine
during the hospital stay of healthy subjects.
- Subsequent to quarter, announced
initiation of recruitment and enrollment of healthy subjects for
Phase 1. Projected dosing dates are scheduled between December 2-9,
2023.
Pre-Clinical Development:
Avenanthramides & Oat Beta Glucan
Wound Healing-Tissue Regeneration:
- Following positive results from
animal studies conducted by the Angiogenesis Foundation, announced
next steps with new studies focusing on speed of healing and
molecular profiling of tissue regeneration induced by oat-derived
bioactive products. Studies are ongoing.
Yeast Beta Glucan (YBG) - Potential
Inhalo-Therapeutic
- Following the announcement
of encouraging results made at two major international conferences
earlier this year demonstrating that PGX-YBG is
respirable and able to safely and reliably reprogram macrophages in
the lungs in pre-clinical mouse models, additional research at
McMaster University clearly showed that PGX-YBG gets into the
macrophage cell. This important finding further supports the
potential of YBG to act as a stand-alone and/or a carrier for other
bioactives when transported by macrophages cells.
Immune/Energy Booster:
- Ongoing studies for testing and
standardization of loading capacity of CoQ10 by YBG which is a
requirement for dose selection when assessing safety and
efficacy.
- Protocol designed for a
head-to-head study in animals for testing immune properties of
PGX-YBG against a commercial formulation.
Yeast beta glucan is the product that will be used for the PGX
scale-up project at pilot scale levels of 50L and 100L vessels.
Technology
Malted Technology
(Avenanthramides)
- Pursued development of enriched
formulations with high concentration of avenanthramides to serve
some nutraceutical markets.
Pressurized Gas eXpanded Technology
(PGX)
- Subsequent to quarter, announced
the signing of a technical agreement with Austrian based NATEX
Prozesstechnologie GmbH for the scale up of the PGX unit at a 100L
level. This decision results from a fully reviewed plan for the PGX
scale up project where the existing PGX demonstration unit in
Edmonton (10L capacity) is being simultaneously scaled up by
factors of 5 and 10 times respectively in Edmonton and in Vienna.
The goal being to reduce technical risk and time to
commercialization. Projects are within timelines previously
announced. The 50L capacity to be completed by year-end and
commissioned by end of Q1 2024 and the 100L to be completed during
Q3 2024.
Corporate
- Signed an extended supply and
distribution agreement reinforcing vote of confidence with
long-time partner, Symrise AG.
- Continued to assess possible
corporate strategies to support the accelerated growth of the
Company along with stated objective of uplisting to Nasdaq.
Financial Highlights for the Third Quarter and
Nine-Month Period Ended September 30, 2023
- Total sales of $2,619,000 for the
third quarter of 2023 and $7,983,000 for the first nine months of
2023 compared to $3,845,000 and $15,517,000 for the comparative
periods in 2022. The decrease in revenues for the first nine months
was driven by an overall decrease in sales volumes of 55% and was a
result of lower sales of all the Company’s products.
- Net loss of $1,040,000 in Q3 2023
compared to a net income of $1,010,000 in Q3 2022 and a net loss of
$2,580,000 for the first nine months of 2023 compared to a net
income of $4,628,000 for the comparative period of 2022.
- R&D investments were $585,000
for Q3 2023 compared to $314,000 for the same period in 2022 and
$2,085,000 for the first nine months of 2023 compared to $1,213,000
for the same period in 2022. The significant increase in 2023
partially results from increased investment in a Phase 1 study with
avenanthramides recently initiated at the Montreal Heart Institute
as well as investment in other projects including a bioactivity
analysis on our active ingredients and the development of new
powder and oral formulations of our active ingredients.
- Cash flows used in operations of
$2,017,000 for the first nine months in 2023 vs cash generated from
operations of $5,644,000 in 2022.
- Positive working capital balance of
$16,368,000 as of September 30, 2023.
“While the base business has been significantly
impacted during the first nine months of 2023 due to various
economic factors and organizational changes in one major customer,
we remain in a solid financial position and will continue to focus
our efforts on the development of new products and technologies
using cash in hand while continuing to assess different market
initiatives to grow our base and create new business with new
products and customers,” concluded Mr. Gagnon.
CEAPRO INC. |
Condensed Interim Consolidated Balance
Sheets |
Unaudited |
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2023 |
|
2022 |
|
|
$ |
|
$ |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents |
11,355,731 |
|
13,810,998 |
|
Trade receivables |
982,895 |
|
2,820,300 |
|
Other receivables |
81,844 |
|
64,808 |
|
Inventories (note 4) |
5,370,967 |
|
3,757,040 |
|
Prepaid expenses and deposits |
214,371 |
|
135,133 |
|
|
|
|
|
|
Total Current Assets |
18,005,808 |
|
20,588,279 |
|
|
|
|
|
|
Non-Current Assets |
|
|
|
|
Investment tax credits receivable |
854,895 |
|
854,895 |
|
Deposits |
76,954 |
|
76,954 |
|
Licences (note 5) |
10,366 |
|
12,588 |
|
Property and equipment (note 6) |
14,996,189 |
|
16,201,755 |
|
|
|
|
|
|
Total Non-Current Assets |
15,938,404 |
|
17,146,192 |
|
|
|
|
|
|
TOTAL ASSETS |
33,944,212 |
|
37,734,471 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts payable and accrued liabilities |
1,246,197 |
|
1,730,377 |
|
Current portion of lease liabilities (note 7) |
391,241 |
|
370,460 |
|
|
|
|
|
|
Total Current Liabilities |
1,637,438 |
|
2,100,837 |
|
|
|
|
|
|
Non-Current Liabilities |
|
|
|
|
Long-term lease liabilities (note 7) |
1,953,295 |
|
2,248,577 |
|
Deferred tax liabilities |
390,109 |
|
1,095,968 |
|
|
|
|
|
|
Total Non-Current Liabilities |
2,343,404 |
|
3,344,545 |
|
|
|
|
|
|
TOTAL LIABILITIES |
3,980,842 |
|
5,445,382 |
|
|
|
|
|
|
Equity |
|
|
|
|
Share capital (note 8 (b)) |
16,721,867 |
|
16,694,625 |
|
Contributed surplus (note 8 (e)) |
4,941,386 |
|
4,714,404 |
|
Retained earnings |
8,300,117 |
|
10,880,060 |
|
|
|
|
|
|
Total Equity |
29,963,370 |
|
32,289,089 |
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
33,944,212 |
|
37,734,471 |
|
|
|
|
|
|
CEAPRO INC. |
Condensed Interim Consolidated Statements of Net (Loss) Income and
Comprehensive (Loss) Income |
Unaudited |
|
|
|
|
Three Months |
Nine Months |
|
Ended September 30, |
Ended September 30, |
|
2023 |
2022 |
2023 |
2022 |
|
|
Restated |
|
Restated |
|
|
(note 3) |
|
(note 3) |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
|
|
|
Revenue (note 14) |
2,618,973 |
|
3,845,370 |
|
7,982,542 |
|
15,517,393 |
|
Cost of goods sold |
1,538,950 |
|
1,572,538 |
|
4,226,411 |
|
5,703,731 |
|
|
|
|
|
|
Gross margin |
1,080,023 |
|
2,272,832 |
|
3,756,131 |
|
9,813,662 |
|
|
|
|
|
|
Research and product development |
584,665 |
|
314,250 |
|
2,085,127 |
|
1,213,455 |
|
General and administration |
1,972,884 |
|
869,110 |
|
5,119,395 |
|
2,707,430 |
|
Sales and marketing |
11,837 |
|
6,160 |
|
33,474 |
|
20,707 |
|
Finance costs (note 10) |
31,450 |
|
31,382 |
|
152,894 |
|
151,592 |
|
|
|
|
|
|
(Loss) income from operations |
(1,520,813 |
) |
1,051,930 |
|
(3,634,759 |
) |
5,720,478 |
|
|
|
|
|
|
Other income (note 11) |
(195,693 |
) |
(271,162 |
) |
(348,957 |
) |
(339,965 |
) |
|
|
|
|
|
(Loss) income before tax |
(1,325,120 |
) |
1,323,092 |
|
(3,285,802 |
) |
6,060,443 |
|
|
|
|
|
|
Deferred tax (benefit) expense |
(284,663 |
) |
312,625 |
|
(705,859 |
) |
1,431,981 |
|
|
|
|
|
|
Net (loss) income and comprehensive (loss) income for the
period |
(1,040,457 |
) |
1,010,467 |
|
(2,579,943 |
) |
4,628,462 |
|
|
|
|
|
|
Net (loss) income per common share (note 17): |
|
|
|
|
Basic |
(0.01 |
) |
0.01 |
|
(0.03 |
) |
0.06 |
|
Diluted |
(0.01 |
) |
0.01 |
|
(0.03 |
) |
0.06 |
|
|
|
|
|
|
Weighted average number of common shares outstanding (note
17): |
|
|
|
|
Basic |
78,291,438 |
|
78,192,923 |
|
78,265,631 |
|
77,873,310 |
|
Diluted |
78,291,438 |
|
78,817,665 |
|
78,265,631 |
|
78,519,944 |
|
|
|
|
|
|
CEAPRO INC. |
Condensed Interim Consolidated Statements of Cash
Flows |
Unaudited |
|
|
|
|
|
|
|
2023 |
2022 |
|
|
Restated |
|
|
(note 3) |
Nine Months Ended September 30, |
$ |
|
$ |
|
OPERATING ACTIVITIES |
|
|
Net (loss) income for the period |
(2,579,943 |
) |
4,628,462 |
|
Adjustments for items not involving cash |
|
|
Finance costs |
97,894 |
|
96,592 |
|
Depreciation and amortization |
1,458,429 |
|
1,415,361 |
|
Deferred income tax (benefit) expense |
(705,859 |
) |
1,431,981 |
|
Share-based payments |
237,324 |
|
72,926 |
|
|
(1,492,155 |
) |
7,645,322 |
|
CHANGES IN NON-CASH WORKING CAPITAL ITEMS |
|
|
Trade receivables |
1,837,405 |
|
(817,830 |
) |
Other receivables |
(17,036 |
) |
(34,006 |
) |
Inventories |
(1,613,927 |
) |
(956,409 |
) |
Prepaid expenses and deposits |
(74,713 |
) |
9,046 |
|
Accounts payable and accrued liabilities relating to operating
activities |
(558,953 |
) |
(105,557 |
) |
|
(427,224 |
) |
(1,904,756 |
) |
Net (loss) income for the period adjusted for non-cash and working
capital items |
(1,919,379 |
) |
5,740,566 |
|
Interest paid |
(97,894 |
) |
(96,592 |
) |
CASH (USED IN) GENERATED FROM OPERATIONS |
(2,017,273 |
) |
5,643,974 |
|
INVESTING ACTIVITIES |
|
|
Purchase of property and equipment |
(250,641 |
) |
(326,544 |
) |
Deposits relating to the purchase of equipment |
(4,525 |
) |
- |
|
Accounts payable and accrued liabilities relating to investing
activities |
74,773 |
|
(47,754 |
) |
CASH USED IN INVESTING ACTIVITIES |
(180,393 |
) |
(374,298 |
) |
FINANCING ACTIVITIES |
|
|
Stock options exercised |
16,900 |
|
75,640 |
|
Repayment of lease liabilities |
(274,501 |
) |
(216,236 |
) |
CASH USED IN FINANCING ACTIVITIES |
(257,601 |
) |
(140,596 |
) |
(Decrease) increase in cash and cash equivalents |
(2,455,267 |
) |
5,129,080 |
|
|
|
|
Cash and cash equivalents at beginning of the period |
13,810,998 |
|
7,780,989 |
|
|
|
|
Cash and cash equivalents at end of the period |
11,355,731 |
|
12,910,069 |
|
The complete financial statements are available
for review on SEDAR at https://sedar.com/Ceapro and on the
Company’s website at www.ceapro.com.
About Ceapro Inc.
Ceapro Inc. is a Canadian biotechnology company
involved in the development of proprietary extraction technology
and the application of this technology to the production of
extracts and “active ingredients” from oats and other renewable
plant resources. Ceapro adds further value to its extracts by
supporting their use in cosmeceutical, nutraceutical, and
therapeutics products for humans and animals. The Company has a
broad range of expertise in natural product chemistry,
microbiology, biochemistry, immunology and process engineering.
These skills merge in the fields of active ingredients,
biopharmaceuticals and drug-delivery solutions. For more
information on Ceapro, please visit the Company’s website at
www.ceapro.com.
Forward-looking Statements
This press release contains forward-looking
statements based on our assessment of Ceapro’s future plans and
operations as of the date of this press release. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as “may”, “will”, “expect”,
“intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans”
or similar terminology. By their nature, forward-looking statements
are subject to numerous risks and uncertainties. Readers are
cautioned that the assumptions used in the preparation of
forward-looking information, although considered reasonable at the
time of preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements. Actual
results, performance, or achievements could differ materially from
those expressed in, or implied by, the forward-looking statements
in this press release. No assurance can be given that any of the
events anticipated will transpire or occur, or if any of them do
so, what benefits Ceapro will derive from them. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise unless required by law.
For more information contact:
Jenene ThomasJTC Team, LLCInvestor Relations and Corporate
Communications AdvisorT (US): +1 (833) 475-8247E: czo@jtcir.com
This press release does not express or imply that
the Company claims its product has the ability to eliminate, cure
or contain the SARS-2-CoV-2 (COVID-19) at this time.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release
Ceapro (TSXV:CZO)
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부터 4월(4) 2024 으로 5월(5) 2024
Ceapro (TSXV:CZO)
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부터 5월(5) 2023 으로 5월(5) 2024