MedMira Reports First Quarter Results FY2020
HALIFAX, Nova Scotia, Dec. 30, 2019 (GLOBE NEWSWIRE) — MedMira Inc. (MedMira) (TSXV: MIR), reported today on its financial results for the quarter ended October 31, 2019.
Profit and Loss HighlightsRevenue: The Company recorded revenues in Q1 FY2020 of $89,132 compared to $155,065 in Q1 FY2019. The decrease of these revenues was due to the re-focusing strategy of the management on high profit margin markets. As outlined in the next highlight this strategy has provided the Company a higher contribution margin and also had an indirect effect on lowering its expenses.Gross Profit: The Company recorded a gross profit in Q1 FY2020 of $71,688 compared to $114,982 for the same period last year. The overall gross margin percentage on sales increased by 6% from 74% in Q1 FY2019 to 80% in this financial quarter.Operating expenses: The Company recorded for this quarter operating expenses of $354,997 compared to $421,711 in Q1 FY2019. The decrease of 16% in operating expenses was primarily due to the management’s strategy to streamline cost.Net loss: The Company recorded a net loss of $489,673 compared to $550,039 in Q1 FY2019. The decrease of 15% is mainly attributed to the impact of the management’s cost saving program.Balance Sheet HighlightsOn August 1, 2019 the Company adopted the IFRS 16 regulations with regard to classification of leases. This significantly changed the Company’s assets and liabilities. With the adoption of IFRS 16 the Company recognized $2.57 million of right-of-use assets and $2.57 million of lease liabilities that were previously accounted for as operating leases. The Company applied its estimated weighted average incremental borrowing rate at August 1, 2019 of 5.0% to determine the amount of lease liabilities.Assets: The Company had an increase of its assets by $2,412,217 compared to last quarter due to the adoption of IFRS 16.Liabilities: The Company’s liabilities increased by $2,880,890 between Q4 FY2019 and Q1 FY2020. The Company’s current liabilities increased by $463,568 or 3% due to Increase in payables and the current portion of the classification of leases.Loans in default increased by $118,046 or 2% compared to last quarter. All long and short term debts are currently under negotiation to restructure terms and conditions of repayment.Working Capital deficit: As a result of the increases noted above, the Company recorded higher working capital deficit of $578,936 or 4% compared to last quarter.The Company’s financial statements and management’s discussion and analysis are available on the Company’s profile on SEDAR at www.sedar.com. For matters of going concern, reference is made to the Auditor’s Emphasis of Matter statement in the fiscal year ended 2019 Auditors Report and note 2b in the audited financial statements which is also available on SEDAR.About MedMiraMedMira is the developer and owner of Rapid Vertical Flow (RVF) Technology™. The Company’s rapid test applications built on RVF Technology provide hospitals, labs, clinics and individuals with instant diagnosis for diseases such as HIV and hepatitis C in just three easy steps. The Company’s tests are sold under the Reveal, Multiplo and Miriad™ brands in global markets. MedMira’s corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada and the Company has a sales and customer service office located in the United States. For more information visit medmira.com. Follow us on Twitter and LinkedIn.This news release contains forward-looking statements, which involve risk and uncertainties and reflect the Company’s current expectation regarding future events including statements regarding possible approval and launch of new products, future growth, and new business opportunities. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings.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.MedMira Contacts:Markus Meile, CFO