Market Newsdesk

SAN DIEGO, CA, Aug. 03, 2023 (GLOBE NEWSWIRE) — RYVYL Inc. (NASDAQ: RVYL) (“RYVYL” or the “Company”), a company that leverages the security of the blockchain and USD-pegged stablecoin technology with near-real-time attestation capabilities to conduct payment transactions, announced today the Company on July 31, 2023 closed the first of two exchange transactions, with an existing noteholder (the “Noteholder”) under the terms of an Exchange Agreement, dated July 25, 2023 (the “Exchange Agreement”), and issued 6,000 shares of Series A Convertible Preferred Stock to the Noteholder in exchange for $4,297,000 of the outstanding principal balance of the Note and $1,703,000 of accrued interest.

As recently announced in a July 26, 2023 press release, under the terms of the Exchange Agreement, the Company and the Noteholder agreed to exchange, in two separate exchanges, an aggregate of $22.703 million of the outstanding principal and interest under an outstanding convertible note, held by the Noteholder, for 15,000 shares of the Company’s s Series A Preferred Convertible Stock . The remaining $16,703,000 in principal, not closed on, under the terms of the Exchange Agreement, is to be exchanged for 9,000 shares of Series A Convertible Preferred Stock at an additional closing, subject to the Company’s having satisfied certain conditions, including obtaining stockholder approval for the issuance of all shares of common stock underlying the Series A Convertible Preferred Stock, in accordance with the rules and regulations of NASDAQ.

Additional information can be found in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 1, 2023, and available on RYVYL’s Investor Relations website https://investors.ryvyl.com/financials/sec-filings/

About RYVYL

RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging unique blockchain security and USD-pegged stablecoin technology with near real-time attestation capabilities, RYVYL is reinventing the future of financial transactions using its coyni^® stablecoin platform as a transactional foundation. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com

Cautionary Note Regarding Forward-Looking Statements.

This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding the timing of the filing of the aforementioned periodic reports. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the completion and filing of the aforementioned periodic reports will take longer than expected and that additional information may become known prior to the expected filing of the aforementioned periodic reports with the SEC. Other risk factors affecting the Company are discussed in detail in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

Investor Relations Contact:

Mark Schwalenberg
MZ Group – MZ North America
312-261-6430
[email protected]
www.mzgroup.us

OAK BROOK, Ill., Aug. 03, 2023 (GLOBE NEWSWIRE) — Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today reported financial results for the second quarter ended June 25, 2023.

Michael Osanloo, President and Chief Executive Officer of Portillo’s, said, “We delivered another quarter of strong results that highlight the durability of our brand. We feel great about our recent new restaurant performance and are also delivering solid results in our core. To sustain this positive trajectory, we continue to focus on quality and execution. Our restaurants are fully-staffed, and we empower our Team Members to prioritize the guest experience by serving delicious, high-quality food in an engaging environment at a great price point. This creates a consistently outstanding experience for both our Team Members and guests.”

Financial Highlights for the Second Quarter 2023 vs. Second Quarter 2022:

• Total revenue increased 12.3% or $18.6 million to $169.2 million;
• Same restaurant sales increased 5.9%;
• Operating income decreased $0.1 million to $17.4 million;
• Net income decreased $0.9 million to $9.9 million;
• Restaurant-Level Adjusted EBITDA* increased $4.3 million to $42.7 million; and
• Adjusted EBITDA* increased $1.6 million to $29.2 million.

*Adjusted EBITDA and Restaurant-Level Adjusted EBITDA are non-GAAP measures. Please see definitions and the reconciliations of these non-GAAP measures in the accompanying financial information below.

Recent Developments and Trends

We continue to see revenue growth due to our new restaurant openings, as well as same-restaurant sales growth. Total revenue grew 12.3% during the quarter ended June 25, 2023 and 14.1% for the two quarters ended June 25, 2023. Same-restaurant sales grew 5.9% during the quarter ended June 25, 2023, compared to 1.9% same-restaurant sales growth during the same quarter in 2022. Same-restaurant sales grew 7.4% during the two quarters ended June 25, 2023, compared to 4.8% same-restaurant sales growth during the two quarters ended June 26, 2022.

During the quarter ended June 25, 2023, we opened one new restaurant in Gilbert, Arizona for a total of 76 restaurants, including a restaurant owned by C&O, of which Portillo’s owns 50% of the equity. Our six new restaurants opened in 2022 and 2023, positively impacted revenues by approximately $10.4 million and $20.9 million in the quarter and two quarters ended June 25, 2023, respectively. We plan to open eight more new restaurants in the third and fourth quarters of 2023.

In the quarter and two quarters ended June 25, 2023, we continued to experience commodity inflation, but to a lesser extent than we saw in 2022. Commodity inflation was 5.5% and 7.1% for the quarter and two quarters ended June 25, 2023, respectively, compared to 15.2% and 15.5% for the quarter and two quarters ended June 26, 2022. We expect our overall commodity inflation to ease over the course of the year and currently estimate commodity inflation in the mid-single digits for the full fiscal year. Labor expenses, as a percentage of revenue, slightly increased during the second quarter of 2023 compared to the same quarter in 2022. For the two quarters ended June 25, 2023, we experienced a decline in labor expenses, as a percentage of revenue, compared to the two quarters ended June 26, 2022 primarily due to increases in our average check, partially offset by additional wage investments. Subsequent to the quarter, we made additional wage investments in our team members. We currently estimate mid-single digit labor inflation for the full fiscal year. During mid-January 2023 and at the beginning of May 2023, we increased certain menu prices to reflect an approximate 2.0% and 3.0% price increase, respectively, to continue to combat inflationary cost pressures and progress towards our goal to improve Restaurant-Level Adjusted EBITDA margins for fiscal 2023. We will continue to monitor the environment and make additional pricing decisions, if necessary.

In the quarter ended June 25, 2023, operating income margin and Restaurant-Level Adjusted EBITDA Margin continued to improve since the fourth quarter of 2022. We believe this improvement was the result of our ongoing efforts to deploy strategic pricing actions, elevate guest experiences, and implement operational efficiencies.

Review of Second Quarter 2023 Financial Results

Revenues for the quarter ended June 25, 2023 were $169.2 million compared to $150.6 million for the quarter ended June 26, 2022, an increase of $18.6 million or 12.3%. The increase in revenues was primarily attributed to the opening of two restaurants in the second through fourth quarters of 2022 and four restaurants during the two quarters ended June 25, 2023 and an increase in our same-restaurant sales. Same-restaurant sales increased 5.9% during the second quarter ended June 25, 2023, which was attributable to an increase in average check of 7.1% and a 1.2% decrease in transactions. The higher average check was driven by an approximate 9.9% increase in certain menu prices partially offset by product mix. New restaurants positively impacted revenues by approximately $10.4 million in the quarter ended June 25, 2023. For the purpose of calculating same-restaurant sales for June 25, 2023, sales for 66 restaurants were included in the Comparable Restaurant Base (as defined in “Selected Operating Data” below).

Total restaurant operating expenses for the second quarter ended June 25, 2023 were $126.5 million compared to $112.2 million for the second quarter ended June 26, 2022, an increase of $14.2 million or 12.7%. The increase in restaurant operating expenses was driven by the opening of two restaurants in the second through fourth quarters of 2022 and four restaurants during the two quarters ended June 25, 2023. Additionally, food, beverage and packaging costs were negatively impacted by a 5.5% increase in commodity prices, partially offset by lower third-party delivery commissions. Labor expense increases were also driven by incremental investments to support our team members, including annual rate increases primarily made in July 2022, and higher variable-based compensation. These labor increases were partially offset by operational efficiencies. Operating expenses increased due to an increase in repair and maintenance expenses, credit card fees, insurance, and utilities.

General and administrative expenses for the quarter ended June 25, 2023 were $19.6 million compared to $15.4 million for the quarter ended June 26, 2022, an increase of $4.2 million or 27.0%. This increase was primarily driven by increases in variable-based compensation, salaries and wages attributable to annual rate increases, the filling of open positions, software and other licensing fees, and advertising expenses.

Operating income for the second quarter ended June 25, 2023 and June 26, 2022 was $17.4 million. There was an immaterial decrease in operating income in the second quarter ended June 25, 2023 compared to the second quarter ended June 26, 2022 due to the aforementioned increase in revenues and lower pre-opening expenses due to the timing and geographic location of activities related to our planned restaurant openings, more than offset by the aforementioned increases in expenses and higher depreciation and amortization.

Net income for the second quarter ended June 25, 2023 was $9.9 million compared to net income of $10.8 million for the second quarter ended June 26, 2022, a decrease of $0.9 million or 8.0%. The decrease in net income was primarily due to a decrease in the Tax Receivable Agreement liability adjustment of $1.2 million, an increase in interest expense of $0.4 million, and the aforementioned decrease in operating income, partially offset by a decrease in income tax expense of $0.8 million. The $0.4 million increase in interest expense was primarily driven by a higher effective interest rate attributable to the year over year rising interest rate environment, partially offset by the improved lending terms associated with our 2023 Term Loan and 2023 Revolver Facility.

Restaurant-Level Adjusted EBITDA* for the second quarter ended June 25, 2023 was $42.7 million compared to $38.4 million for the second quarter ended June 26, 2022, an increase of $4.3 million or 11.3%.

Adjusted EBITDA* for the second quarter ended June 25, 2023 was $29.2 million compared to $27.6 million for the second quarter ended June 26, 2022, an increase of $1.6 million or 5.8%.

*A reconciliation of Restaurant-Level Adjusted EBITDA and Adjusted EBITDA and the nearest GAAP financial measure is included under “Non-GAAP Financial Measures” in the accompanying financial information below.

Development Highlights

During the two quarters ended June 25, 2023, we opened the remaining four restaurants that were planned for 2022. The opening of these restaurants brings the total restaurant count to 76, including a restaurant owned by C&O of which Portillo’s owns 50% of the equity.

Below are the restaurants opened since the beginning of fiscal 2023:

Location	Opening Date
Kissimmee, Florida	December 2022
The Colony, Texas	January 2023
Tucson, Arizona	February 2023
Gilbert, Arizona	March 2023

The following definitions apply to these terms as used in this release:

Same-Restaurant Sales – The change in same-restaurant sales is the percentage change in year-over-year revenue (excluding gift card breakage) for the Comparable Restaurant Base, excluding a restaurant that is owned by C&O. The Comparable Restaurant Base is defined as the number of restaurants open for at least 24 full fiscal periods. As of June 25, 2023 and June 26, 2022, there were 66 and 61 restaurants in our Comparable Restaurant Base, respectively.

A change in same-restaurant sales growth is the result of a change in restaurant transactions, average guest check, or a combination of the two. We gather daily sales data and regularly analyze the guest transaction counts and the mix of menu items sold to strategically evaluate menu pricing and demand. Measuring our same-restaurant sales growth allows management to evaluate the performance of our existing restaurant base. We believe this measure provides a consistent comparison of restaurant sales results and trends across periods within our core, established restaurant base, unaffected by results of restaurant openings and enables investors to better understand and evaluate the Company’s historical and prospective operating performance.

Average Unit Volume (“AUV”) – AUV is the total revenue (excluding gift card breakage) recognized in the Comparable Restaurant Base, including a restaurant that is owned by C&O, divided by the number of restaurants in the Comparable Restaurant Base, including C&O, by period.

This key performance indicator allows management to assess changes in consumer spending patterns at our restaurants and the overall performance of our restaurant base.

Adjusted EBITDA and Adjusted EBITDA Margin – Adjusted EBITDA represents net income (loss) before depreciation and amortization, interest expense and income taxes, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of net income (loss), the most directly comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of total revenues. See also “Non-GAAP Financial Measures.”

Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin – Restaurant-Level Adjusted EBITDA is defined as revenue, less restaurant operating expenses, which include food, beverage and packaging costs, labor expenses, occupancy expenses and other operating expenses. Restaurant-Level Adjusted EBITDA excludes corporate level expenses and depreciation and amortization on restaurant property and equipment. Restaurant-Level Adjusted EBITDA Margin represents Restaurant-Level Adjusted EBITDA as a percentage of revenue. See also “Non-GAAP Financial Measures.”

For more information about the Company’s Non-GAAP measures, how they are calculated and reconciled and why management believes that they are useful, see “Non-GAAP Financial Measures” below.

Earnings Conference Call and Development Day

The Company will host a conference call to discuss its financial results for the second quarter ended June 25, 2023 on Thursday, August 3, 2023, at 10:00 AM ET. The conference call can be accessed live over the phone by dialing 1-877-407-3982 (toll-free) or 1-201-493-6780 (international). A telephone replay will be available shortly after the call has concluded and can be accessed by dialing 1-412-317-6671; the passcode is 13735738. The webcast will be available at www.portillos.com under the investors section and will be archived on the site shortly after the call has concluded.

We will also be hosting a Development Day on Tuesday, September 19, 2023 in Dallas-Fort Worth. This event will focus on Portillo’s development strategy as a key driver of the Company’s future growth.

About Portillo’s

In 1963, Dick Portillo invested $1,100 into a small trailer to open the first Portillo’s hot dog stand in Villa Park, IL, which he called “The Dog House.” Years later, Portillo’s (NASDAQ: PTLO) has grown to more than 70 restaurants across 10 states. Portillo’s is best known for its Chicago-style hot dogs, Italian beef sandwiches, char-grilled burgers, fresh salads and famous chocolate cake.

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 (“PSLRA”). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business, and are based on currently available operating, financial and competitive information which are subject to various risks and uncertainties, so you should not place undue reliance on forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “commit,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other similar expressions.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements, so you should not unduly rely on these statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following:

• risks related to or arising from our organizational structure;
• risks of food-borne illness and food safety and other health concerns about our food;
• the impact of unionization activities of our restaurant workers on our operations and profitability;
• the impact of recent bank failures on the marketplace, including the ability to access credit;
• risks associated with our reliance on certain information technology systems and potential failures or interruptions;
• privacy and cyber security risks related to our digital ordering and payment platforms for our delivery business;
• the impact of competition, including from our competitors in the restaurant industry or our own restaurants;
• the increasingly competitive labor market and our ability to attract and retain the best talent and qualified employees;
• the impact of federal, state or local government regulations relating to privacy, data protection, advertising and consumer protection, building and zoning requirements, costs or ability to open new restaurants, or sale of food and alcoholic beverage control regulations;
• inability to achieve our growth strategy, such as the availability of suitable new restaurant sites in existing and new markets and opening of new restaurants at the anticipated rate and on the anticipated timeline;
• increases in food and other operating costs, tariffs and import taxes, and supply shortages;
• the potential future impact of COVID-19 (including any variant) on our results of operations, supply chain or liquidity; and
• other risks identified in our filings with the Securities and Exchange Commission (the “SEC”).

All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in the Company’s most recent Annual Report on Form 10-K, filed with the SEC. All of the Company’s SEC filings are available on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Investor Contact:

Barbara Noverini, CFA
[email protected] 

Media Contact:

ICR, Inc.
[email protected] 

PORTILLO’S INC CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) (in thousands, except share and per share data)
	Quarter Ended														Two Quarters Ended
	June 25, 2023							June 26, 2022							June 25, 2023							June 26, 2022
REVENUES, NET	$	169,182			100.0	%		$	150,623			100.0	%		$	325,242			100.0	%		$	285,105			100.0	%
COST AND EXPENSES:
Restaurant operating expenses:
Food, beverage and packaging costs		56,229			33.2	%			51,774			34.4	%			109,856			33.8	%			98,040			34.4	%
Labor		43,153			25.5	%			37,906			25.2	%			83,612			25.7	%			75,219			26.4	%
Occupancy		8,237			4.9	%			7,379			4.9	%			16,688			5.1	%			15,134			5.3	%
Other operating expenses		18,832			11.1	%			15,178			10.1	%			37,536			11.5	%			30,343			10.6	%
Total restaurant operating expenses		126,451			74.7	%			112,237			74.5	%			247,692			76.2	%			218,736			76.7	%
General and administrative expenses		19,609			11.6	%			15,439			10.3	%			38,387			11.8	%			31,126			10.9	%
Pre-opening expenses		275			0.2	%			423			0.3	%			2,619			0.8	%			979			0.3	%
Depreciation and amortization		5,941			3.5	%			5,309			3.5	%			11,610			3.6	%			10,514			3.7	%
Net income attributable to equity method investment		(381	)		(0.2)	%			(275	)		(0.2)	%			(588	)		(0.2)	%			(398	)		(0.1)	%
Other (income) loss, net		(97	)		(0.1)	%			51			—	%			(354	)		(0.1)	%			(105	)		—	%
OPERATING INCOME		17,384			10.3	%			17,439			11.6	%			25,876			8.0	%			24,253			8.5	%
Interest expense		6,523			3.9	%			6,097			4.0	%			13,966			4.3	%			12,196			4.3	%
Tax Receivable Agreement liability adjustment		(579	)		(0.3)	%			(1,754	)		(1.2)	%			(1,163	)		(0.4)	%			(1,754	)		(0.6)	%
Loss on debt extinguishment		—			—	%			—			—	%			3,465			1.1	%			—			—	%
INCOME BEFORE INCOME TAXES		11,440			6.8	%			13,096			8.7	%			9,608			3.0	%			13,811			4.8	%
Income tax expense		1,542			0.9	%			2,340			1.6	%			983			0.3	%			2,505			0.9	%
NET INCOME		9,898			5.9	%			10,756			7.1	%			8,625			2.7	%			11,306			4.0	%
Net income attributable to non-controlling interests		3,110			1.8	%			5,645			3.7	%			2,351			0.7	%			6,001			2.1	%
NET INCOME ATTRIBUTABLE TO PORTILLO’S INC.	$	6,788			4.0	%		$	5,111			3.4	%		$	6,274			1.9	%		$	5,305			1.9	%
Net income per common share attributable to Portillo’s Inc.:
Basic	$	0.12						$	0.14						$	0.12						$	0.15
Diluted	$	0.12						$	0.13						$	0.11						$	0.13
Weighted-average common shares outstanding:
Basic		54,964,649							35,991,079							52,252,053							35,899,125
Diluted		58,550,057							39,687,090							55,806,455							39,839,292

PORTILLO’S INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share data)
	June 25, 2023			December 25, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents and restricted cash	$	22,457		$	44,427
Accounts receivable		11,496			8,590
Inventory		6,493			7,387
Prepaid expenses		5,139			4,922
Total current assets		45,585			65,326
Property and equipment, net		250,443			227,036
Operating lease assets		179,449			166,808
Goodwill		394,298			394,298
Trade names		223,925			223,925
Other intangible assets, net		30,356			31,800
Equity method investment		16,373			16,274
Deferred tax assets		186,997			150,497
Other assets		4,061			4,119
Total other assets		856,010			820,913
TOTAL ASSETS	$	1,331,487		$	1,280,083
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	24,147		$	30,273
Current portion of long-term debt		7,500			4,155
Current portion of Tax Receivable Agreement liability		6,309			813
Short-term debt		10,000			—
Current deferred revenue		4,696			7,292
Short-term operating lease liability		5,053			4,849
Accrued expenses		31,322			29,915
Total current liabilities		89,027			77,297
LONG-TERM LIABILITIES:
Long-term debt, net of current portion		289,168			314,425
Tax Receivable Agreement liability		295,696			252,003
Long-term operating lease liability		217,989			200,166
Other long-term liabilities		3,151			3,291
Total long-term liabilities		806,004			769,885
Total liabilities		895,031			847,182
COMMITMENTS AND CONTINGENCIES
STOCKHOLDER’S EQUITY:
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, none issued or outstanding		—			—
Class A common stock, $0.01 par value per share, 380,000,000 shares authorized, and 55,073,993 and 48,420,723 shares issued and outstanding at June 25, 2023 and December 25, 2022, respectively.		551			484
Class B common stock, $0.00001 par value per share, 50,000,000 shares authorized, and 17,472,926 and 23,837,162 shares issued and outstanding at June 25, 2023 and December 25, 2022, respectively.		—			—
Additional paid-in-capital		301,622			260,664
Retained earnings (accumulated deficit)		1,462			(4,812	)
Total stockholders’ equity attributable to Portillo’s Inc.		303,635			256,336
Non-controlling interest		132,821			176,565
Total stockholders’ equity		436,456			432,901
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,331,487		$	1,280,083

PORTILLO’S INC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)
	Two Quarters Ended
	June 25, 2023				June 26, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	8,625			$	11,306
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		11,610				10,514
Amortization of debt issuance costs and discount		620				1,243
Loss on sales of assets		496				107
Equity-based compensation		7,720				7,649
Deferred rent and tenant allowance		—				2,112
Deferred income tax expense		983				2,505
Tax Receivable Agreement liability adjustment		(1,163	)			(1,754	)
Amortization of deferred lease incentives		—				(166	)
Gift card breakage		(528	)			(474	)
Loss on debt extinguishment		3,465				—
Changes in operating assets and liabilities:
Accounts receivables		(906	)			(1,089	)
Receivables from related parties		(141	)			(66	)
Inventory		894				439
Other current assets		(218	)			754
Operating lease assets		3,880				—
Accounts payable		(2,779	)			(2,908	)
Accrued expenses and other liabilities		(559	)			(6,140	)
Operating lease liabilities		(1,359	)			—
Deferred lease incentives		850				1,251
Other assets and liabilities		(181	)			76
NET CASH PROVIDED BY OPERATING ACTIVITIES		31,309				25,359
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(37,359	)			(13,940	)
Proceeds from the sale of property and equipment		33				30
NET CASH USED IN INVESTING ACTIVITIES		(37,326	)			(13,910	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term debt, net		10,000				—
Proceeds from long-term debt		300,000				—
Payments of long-term debt		(322,428	)			(1,662	)
Proceeds from equity offering, net of underwriting discounts		179,306				—
Repurchase of outstanding equity / Portillo’s OpCo units		(179,306	)			—
Distributions paid to non-controlling interest holders		(399	)			—
Proceeds from stock option exercises		1,015				1,451
Employee withholding taxes related to net settled equity awards		(56	)			—
Proceeds from Employee Stock Purchase Plan purchases		297				—
Payments of Tax Receivable Agreement liability		(813	)			—
Payment of deferred financing costs		(3,569	)			—
Payment of initial public offering issuance costs		—				(771	)
NET CASH USED IN FINANCING ACTIVITIES		(15,953	)			(982	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(21,970	)			10,467
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD		44,427				39,263
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD	$	22,457			$	49,730

PORTILLO’S INC SELECTED OPERATING DATA AND NON-GAAP FINANCIAL MEASURES
	Quarter Ended								Two Quarters Ended
	June 25, 2023				June 26, 2022				June 25, 2023				June 26, 2022
Total Restaurants (a)		76				71				76				71
AUV (in millions) (a)	N/A				N/A				$	8.8			$	8.3
Change in same-restaurant sales (b)		5.9	%			1.9	%			7.4	%			4.8	%
Adjusted EBITDA (in thousands) (b)	$	29,223			$	27,613			$	48,856			$	45,244
Adjusted EBITDA Margin (b)		17.3	%			18.3	%			15.0	%			15.9	%
Restaurant-Level Adjusted EBITDA (in thousands) (b)	$	42,731			$	38,386			$	77,550			$	66,369
Restaurant-Level Adjusted EBITDA Margin (b)		25.3	%			25.5	%			23.8	%			23.3	%

(a) Includes a restaurant that is owned by C&O of which Portillo’s owns 50% of the equity. AUVs for the quarters ended June 25, 2023 and June 26, 2022 represent AUVs for the twelve months ended June 25, 2023 and June 26, 2022, respectively. Total restaurants indicated are as of a point in time.
(b) Excludes a restaurant that is owned by C&O of which Portillo’s owns 50% of the equity.

PORTILLO’S INC.

NON-GAAP FINANCIAL MEASURES

To supplement the consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted EBITDA and Adjusted EBITDA Margin, and Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin. Accordingly, these measures are not required by, nor presented in accordance with GAAP, but rather are supplemental measures of operating performance of our restaurants. You should be aware that these measures are not indicative of overall results for the Company and that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin do not accrue directly to the benefit of stockholders because of corporate-level expenses excluded from such measures. These measures are supplemental measures of operating performance and our calculations thereof may not be comparable to similar measures reported by other companies. These measures are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate, but also have important limitations as analytical tools and should not be considered in isolation as substitutes for analysis of our results as reported under GAAP.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA represents net income before depreciation and amortization, interest expense and income taxes, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of net income (loss), the most directly comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of total revenues.

We use Adjusted EBITDA and Adjusted EBITDA Margin (i) to evaluate our operating results and the effectiveness of our business strategies, (ii) internally as benchmarks to compare our performance to that of our competitors and (iii) as factors in evaluating management’s performance when determining incentive compensation.

We believe that Adjusted EBITDA and Adjusted EBITDA Margin are important measures of operating performance because they eliminate the impact of expenses that do not relate to our core operating performance.

Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin

Restaurant-Level Adjusted EBITDA is defined as revenue, less restaurant operating expenses, which include food, beverage and packaging costs, labor expenses, occupancy expenses and other operating expenses. Restaurant-Level Adjusted EBITDA excludes corporate level expenses and depreciation and amortization on restaurant property and equipment. Restaurant-Level Adjusted EBITDA Margin represents Restaurant-Level Adjusted EBITDA as a percentage of revenue.

We believe that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate.

See below for a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA and Adjusted EBITDA Margin (in thousands):

	Quarter Ended								Two Quarters Ended
	June 25, 2023				June 26, 2022				June 25, 2023				June 26, 2022
Net income	$	9,898			$	10,756			$	8,625			$	11,306
Depreciation and amortization		5,941				5,309				11,610				10,514
Interest expense		6,523				6,097				13,966				12,196
Loss on debt extinguishment		—				—				3,465				—
Income tax expense		1,542				2,340				983				2,505
EBITDA		23,904				24,502				38,649				36,521
Deferred rent (1)		1,169				865				2,393				1,946
Equity-based compensation		4,184				3,864				7,720				7,649
Other loss (2)		377				93				496				125
Transaction-related fees & expenses (3)		168				43				761				757
Tax Receivable Agreement liability adjustment (4)		(579	)			(1,754	)			(1,163	)			(1,754	)
Adjusted EBITDA	$	29,223			$	27,613			$	48,856			$	45,244
Adjusted EBITDA Margin (5)		17.3	%			18.3	%			15.0	%			15.9	%

(1) Represents the difference between cash rent payments and the recognition of straight-line rent expense recognized over the lease term.
(2) Represents loss on disposal of property and equipment.
(3) Represents the exclusion of certain expenses that management believes are not indicative of ongoing operations, consisting primarily of certain professional fees.
(4) Represents remeasurement of the Tax Receivable Agreement liability.
(5) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenues, net.

See below for a reconciliation of operating income, the most directly comparable GAAP measure, to Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin (in thousands):

	Quarter Ended								Two Quarters Ended
	June 25, 2023				June 26, 2022				June 25, 2023				June 26, 2022
Operating income	$	17,384			$	17,439			$	25,876			$	24,253
Plus:
General and administrative expenses		19,609				15,439				38,387				31,126
Pre-opening expenses		275				423				2,619				979
Depreciation and amortization		5,941				5,309				11,610				10,514
Net income attributable to equity method investment		(381	)			(275	)			(588	)			(398	)
Other (income) loss, net		(97	)			51				(354	)			(105	)
Restaurant-Level Adjusted EBITDA	$	42,731			$	38,386			$	77,550			$	66,369
Restaurant-Level Adjusted EBITDA Margin (1)		25.3	%			25.5	%			23.8	%			23.3	%

(1) Restaurant-Level Adjusted EBITDA Margin is defined as Restaurant-Level Adjusted EBITDA divided by Revenues, net

MALMÖ, Sweden, Aug. 03, 2023 (GLOBE NEWSWIRE) — Oatly Group AB (Nasdaq: OTLY)(“Oatly” or the “Company”), the world’s original and largest oat drink company, today announced an expansion of its direct relationship with Amazon through a new pan-European arrangement that will see a range of Oatly’s Oat Drink products made available on Amazon beginning later this year across key European markets – including Germany, France, Italy, Spain, Netherlands and Belgium.

Under the arrangement, Oatly will have the ability to list several of its popular Oat Drink lines across the markets including Oatly Barista Edition, Oatly Light, Oatly Semi, Oatly Whole, Oatly “No” Sugars and Mini Barista. Amazon Prime members will be able to access Oatly products with next day and subscribe and save delivery options.

Since launching a direct relationship with Amazon in the UK in October of last year, Oatly Barista Edition has regularly performed in the top 30 of all grocery products and is currently #1 in oat drink sales on Amazon in the UK. Oatly has formed a new pan-European business group to manage the Amazon relationship, which will be led by its General Manager of UK & Ireland, Bryan Carroll.

“We’re excited to build on the successful relationship we’ve had with Amazon in the UK and look forward to making more Oatly products available to more Amazon customers across Europe,” said Daniel Ordoñez, Chief Operating Officer at Oatly. “Amazon is an important part of our customer mix that helps support our mission to make plant-based drinks increasingly accessible and affordable to people and small businesses everywhere for the benefit of our planet.”

Oatly plans to produce a fully enclosed bespoke packaging solution for Amazon customers, allowing shipment straight through Amazon’s supply chain. This removes the need for additional packaging and further reduces the carbon footprint of purchasing via this channel compared to customary packaging.

Scaling of the relationship follows recent reports that sales of plant-based milks have increased by 20% across Europe¹. The Good Food Institute Europe reported sales of plant-based foods were on the rise, amounting to €5.7 billion in 2022, with plant-based milks leading the category.

^{1
GFI EUROPE / Europe: Plant-Based Foods Retail Market Report (2020-2022)}

About Oatly

We are the world’s original and largest oat drink company. For over 25 years, we have exclusively focused on developing expertise around oats: a global power crop with inherent properties suited for sustainability and human health. Our commitment to oats has resulted in core technical advancements that enabled us to unlock the breadth of the dairy portfolio, including alternatives to milks, ice cream, yogurt, cooking creams, spreads and on-the-go drinks. Headquartered in Malmö, Sweden, the Oatly brand is available in more than 20 countries globally.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, regarding the business and expanded relationship with Amazon, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate,” “will,” “aim,” “potential,” “continue,” “is/are likely to” and similar statements of a future or forward-looking nature. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: general economic conditions including high inflationary cost pressures; our history of losses and inability to achieve or sustain profitability; the impact of the COVID-19 pandemic, including the spread of variants of the virus, on our business and the international economy; any failure to obtain necessary capital when needed on acceptable terms; a cybersecurity incident or other technology disruptions; changing consumer preferences and our ability to adapt to new or changing preferences; and the other important factors discussed under the caption “Risk Factors” in Oatly’s Annual Report on Form 20-F for the year ended December 31, 2022 filed with the SEC on April 19, 2023 and other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Oatly disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law. 

Contacts

Oatly Group AB
+1 866-704-0391
[email protected]
[email protected]

SAN MATEO, Calif., Aug. 03, 2023 (GLOBE NEWSWIRE) — Freshworks Inc., (NASDAQ: FRSH) today announced the launch of its AI-powered Customer Service Suite which brings together self-service bots, agent-led conversational messaging, and automated ticketing management in an all-in-one solution. Uniting Freshchat™, Freshdesk™, and the company’s generative artificial intelligence technology, Freddy AI, the Freshworks Customer Service Suite enables a modern customer support experience accessible to any company, with pricing that scales from small business to global enterprise.

Ninety four percent of business leaders surveyed in Deloitte’s State of AI in the Enterprise, 5th Edition, agree that AI is critical to success over the next five years. However, many (42%) see implementing AI technologies a barrier to doing that. Freshworks Customer Service Suite
is easy-to-implement, easy-to-use, and easy-to-scale solution for companies looking to leverage AI to retain and delight their customers.

“At Freshworks, we’ve always been committed to delivering innovative solutions that anticipate the needs of our customers. The new Freshworks Customer Service Suite is firmly rooted in generative AI technology and empowers businesses to automate customer resolutions, supercharge agent productivity and make smart decisions quickly at a price point that every company wants,” said Freshworks’ Chief Product Officer Prakash Ramamurthy.

The Freshworks Customer Service Suite follows the June beta launch of Freddy Self Service, Copilot, and Insights, which brought generative AI enhancements to a wide range of Freshworks products, and builds upon Freshworks’ generative AI enhancements released in March, which are already reducing agent time required on certain tasks by more than 80%.

Using Freshworks’ Freddy AI capabilities with the Customer Service Suite, companies of all sizes can:

• Automate and personalized self-service across channels. Freddy Self Service AI-powered bots work across channels to help customers find answers fast. Ticket deflection happens faster and customers receive an overall better experience with personalized resolutions.
• Supercharge agent productivity and collaboration. Freddy Copilot equips agents with next-best-action suggestions, streamlines workflows and enables them to deliver accurate and personalized service. Integration with an advanced ticketing system promotes seamless teamwork among departments.
• Leverage actionable Insights to make smarter decisions. Freddy Insights continuously analyzes data to surface key issues, make recommendations to fix those issues, and generate reports using conversational prompts.

The all-in-one Suite offers value for businesses seeking to elevate their customer support capabilities with more engaging customer experiences and improved agent productivity.

Freshdesk customer, David Yabubik, Director of Customer Support atRestaurant365, said, “We have big aspirations for the future and if we are ever going to hit the kind of revenue, service margins, and scale of support, we’re going to need to get more efficient and automate our work. AI promises to do just that, with a potential game changer in the Freshworks Customer Service Suite.”

Frank Servidio, Director of Service Operations at Ryan Specialty, said, “Our existing Freshdesk knowledge base automations combined with the new Freddy AI Self-Service capabilities will play very nicely with the Freshchat bots we are implementing. We’re expecting bots and automations will decrease tickets by at least 10 percent, probably more.”

Read more about the Customer Service Suite on our blog: https://www.freshworks.com/customer-service-generative-ai-blog/
Experience a free trial by signing up on our website: https://www.freshworks.com/customer-service-suite/demo-request/

About Freshworks

Freshworks Inc., (NASDAQ: FRSH) creates business software anyone can use. Purpose-built for IT, customer support, and sales and marketing teams, our AI-boosted products are designed to let everyone work more efficiently and deliver more value for immediate business impact. Headquartered in San Mateo, California, Freshworks operates around the world to serve more than 65,000 customers, including American Express, Blue Nile, Bridgestone, Databricks, Fila, Klarna, and OfficeMax. For the freshest company news, visit www.freshworks.com and follow us on Facebook, LinkedIn, and Twitter.

© 2023 Freshworks Inc. All Rights Reserved. Freshworks and its associated logo is a trademark of Freshworks Inc. All other company, brand and product names may be trademarks or registered trademarks of their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third party of Freshworks Inc. or any aspect of this press release.

Media Relations Contact:

Erika Howard
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d49f6fcc-bf23-4b33-8f03-d324b0508cfa.

EAGAN, Minn., Aug. 03, 2023 (GLOBE NEWSWIRE) — Predictive Oncology Inc. (NASDAQ: POAI), a science-driven company leveraging its proprietary artificial intelligence and machine learning capabilities, extensive biorepository of tumor samples, Clinical Laboratory Improvement Amendments (CLIA) laboratory and Good Manufacturing Practices (GMP) facility, to accelerate oncology drug discovery and enable drug development, today announced that it will report its financial results for the second quarter ended June 30, 2023 after the markets close on Thursday, August 10, 2023. The company will host a corporate update conference call and live audio webcast at 5:30 p.m. on that day.

Live Conference Call & Webcast:
Toll Free:	877-407-3982
International:	201-493-6780
Conference ID:	13739784
Call me™:	Link here
Webcast:	https://viavid.webcasts.com/starthere.jsp?ei=1623390&tp_key=3efc160cb8

A replay of the webcast will be available in the Investors section of the Predictive Oncology website at https://investors.predictive-oncology.com/events-and-presentations.

About Predictive Oncology

Predictive Oncology is on the cutting edge of the rapidly growing use of artificial intelligence and machine learning to expedite early drug discovery and enable drug development for the benefit of cancer patients worldwide. The Company’s scientifically validated AI platform, PEDAL, is able to predict with 92% accuracy if a tumor sample will respond to a certain drug compound, allowing for a more informed selection of drug/tumor type combinations for subsequent in-vitro testing. Together with the Company’s vast biobank of more than 150,000 assay-capable heterogenous human tumor samples, Predictive Oncology offers its academic and industry partners one of the industry’s broadest AI-based drug discovery solutions, further complimented by its wholly owned CLIA lab and GMP facilities. Predictive Oncology is headquartered in Eagan, MN.    

Contact:

Predictive Oncology Inc.
Theresa Ferguson, Senior Director of Marketing
Phone: (630) 566-2003
[email protected]

Predictive Oncology Investor Relations
Tim McCarthy  
LifeSci Advisors, LLC.  
[email protected]  

Forward-Looking Statements:

Certain matters discussed in this release contain forward-looking statements. These forward-looking statements reflect our current expectations and projections about future events and are subject to substantial risks, uncertainties and assumptions about our operations and the investments we make. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue and financial performance, projected costs, prospects, changes in management, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “would,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors including, among other things, factors discussed under the heading “Risk Factors” in our filings with the SEC. Except as expressly required by law, the Company disclaims any intent or obligation to update these forward-looking statements.

 

— NUZYRA^® (omadacycline) Net U.S. Sales of $33.8 Million from the Core Commercial Business, a 35% Increase Over Second Quarter 2022

–Previously Announced Agreement to be Acquired by Gurnet Point Capital and Novo Holdings A/S; Transaction Expected to Close in the Third Quarter

BOSTON, Aug. 03, 2023 (GLOBE NEWSWIRE) — Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK), (“Paratek” or “the Company”), a commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases and other public health threats for civilian, government and military use, today reported financial results and provided an update on corporate activities for the second quarter ended June 30, 2023.

Recent Highlights

• BARDA Contract Modification: The Company executed a modification to its Project BioShield contract with the Biomedical Advanced Research and Development Authority (“BARDA”), part of the Administration for Strategic Preparedness and Response (“ASPR”) within the U.S. Department of Health and Human Services, in July 2023.
  • BARDA and Paratek have agreed the next procurement of NUZYRA anthrax treatment courses will be split into two equal procurements based on the achievement of specific development milestones toward both treatment and post-exposure prophylaxis (“PEP”) indications of pulmonary anthrax.
    • The first of these procurements will be triggered by the delivery of positive top-line data from a dose-ranging efficacy study for PEP of inhalation anthrax in non-human primates (“NHPs”). The company expects this data to be available in the first quarter of 2024.
    • The second of these procurements will be triggered by BARDA’s receipt of positive top-line data from a combination of two studies, a dose-ranging efficacy study in NHPs and a pivotal efficacy study in rabbits for the treatment of inhalation anthrax, which the company anticipates could be available as early as the fourth quarter of 2024. 
• Non-Tuberculous Mycobacteria (“NTM”) Rare Disease Program: The Company announced that the European Medicines Agency (“EMA”) Committee for Orphan Medicinal Products (“COMP”) recommended a positive opinion for orphan medicinal product designation for NUZYRA for the treatment of NTM lung disease in June 2023. The European Commission officially designated NUZYRA as an orphan medicinal product in July 2023.

Second Quarter 2023 Financial Results

Total revenue for the second quarter of 2023 was $40.0 million compared to $29.6 million for the same period in the prior year. Total revenue for the second quarter of 2023 was comprised of the following:

• NUZYRA net U.S. sales of $33.8 million, which represented a 35% increase from $25.1 million for the same period in the prior year.
• Government contract service and grant revenue earned from cost reimbursement under the BARDA contract of $5.6 million, a 40% increase from $4.0 million for the same period in the prior year.
• Collaboration and royalty revenue of $0.6 million, consistent with $0.6 million for the same period in the prior year, both of which primarily represent royalty revenues earned on sales of NUZYRA in China and on sales of SEYSARA^® (sarecycline) in the United States.

Research and development (“R&D”) expenses were $8.8 million for the second quarter of 2023, compared to $7.6 million for the same period in the prior year.

Selling, general and administrative (“SG&A”) expenses were $36.3 million for the second quarter of 2023, compared to $30.3 million for the same period in the year. The increase in SG&A expenses is primarily the result of costs incurred in connection with the potential acquisition of Paratek by Gurnet Point and Novo Holdings.

Paratek reported a net loss of $14.6 million, or $(0.25) per share, for the second quarter of 2023, compared to a net loss of $17.7 million, or $(0.33) per share, for the same period in the prior year.

Paratek had cash and cash equivalents of $42.7 million as of June 30, 2023. Based upon the Company’s current operating plan, if it is unable to consummate the merger with Gurnet Point and Novo Holdings, as described below, there is substantial doubt about the Company’s ability to operate as a going concern.

Proposed Gurnet Point Capital and Novo Holdings A/S Transaction

On June 6, 2023, Paratek announced it entered into a definitive agreement to be acquired by Gurnet Point Capital (“Gurnet Point”) and Novo Holdings A/S (“Novo Holdings”) in a transaction valued at approximately $462 million, including the assumption of debt and assuming full payment of a Contingent Value Right (“CVR”). Debt financing of $175 million for this transaction will be provided by funds managed by Oaktree Capital Management, L.P.

Under the terms of the merger agreement, Gurnet Point, a leading healthcare investment firm, and Novo Holdings, a holding and investment company responsible for managing the assets and wealth of the Novo Nordisk Foundation, will acquire all outstanding shares of Paratek for $2.15 per share in cash at close, plus a CVR of $0.85 per share payable upon the achievement of $320 million in U.S. NUZYRA net sales (excluding certain permitted deductions, payments under Paratek’s contract with ASPR-BARDA, certain government payments and certain royalty revenue) in any calendar year ending on or prior to December 31, 2026.

The transaction, which the Paratek Board of Directors has unanimously approved, is expected to close in the third quarter of 2023, subject to customary closing conditions, including approval by Paratek shareholders and receipt of regulatory approvals. Following completion, Paratek will become a private company and will no longer be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, nor be traded on Nasdaq Global Market.

Due to the pending transaction, Paratek will not host a conference call to discuss its quarterly financial results or comment on its financial guidance for the year ending December 31, 2023.

About Paratek Pharmaceuticals, Inc.

Paratek Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use.

The company’s lead commercial product, NUZYRA^® (omadacycline), is a once-daily oral and intravenous antibiotic available in the United States for the treatment of adults with community-acquired bacterial pneumonia (CABP) and acute bacterial skin and skin structure infections (ABSSSI). Paratek has a collaboration agreement with Zai Lab for the development and commercialization of omadacycline in the greater China region and retains all remaining global rights.

Paratek is also conducting a Phase 2b study with NUZYRA in a rare disease, nontuberculous mycobacterial (NTM) pulmonary disease, caused by Mycobacterium abscessus complex. Paratek estimates this opportunity represents a potential $1 billion addressable market in the United States.

Paratek exclusively licensed U.S. rights and rights to the greater China territory for SEYSARA^® (sarecycline), a once-daily oral therapy for the treatment of moderate to severe acne vulgaris, to Almirall, LLC. Paratek retains the development and commercialization rights for sarecycline in the rest of the world.

In 2019, Paratek was awarded a contract from the U.S. Department of Health and Human Services’ Biomedical Advanced Research and Development Authority (BARDA), now valued at up to $304 million, to support the development and U.S.-based manufacturing of NUZYRA for pulmonary anthrax.

For more information, visit www.ParatekPharma.com or follow us on LinkedIn and Twitter.

About NUZYRA
^®

NUZYRA^® (omadacycline) is a novel antibiotic with both once-daily oral and intravenous (IV) formulations for the treatment of community-acquired bacterial pneumonia (CABP) and acute bacterial skin and skin structure infections (ABSSSI). A modernized tetracycline, NUZYRA is specifically designed to overcome tetracycline resistance and exhibits activity across a spectrum of bacteria, including Gram-positive, Gram-negative, atypicals and other drug-resistant strains. 

Forward Looking Statements

This press release contains forward-looking statements including statements related to the expected timing of closing of our sale to Gurnet Point and Novo Holdings, our overall strategy, products, prospects, potential and expected results, including statements about our expectations regarding the Company’s future growth and performance, revenue and operating expense projections, our ability to continue to execute and deliver on our BARDA contract, the status of our NTM development program, and our ability to operate as a going concern.

All statements, other than statements of historical facts, included in this press release are forward-looking statements, and are identified by words such as “expect,” “anticipate,” “continue,” “will” and other words and terms of similar meaning. These forward-looking statements are based upon our current expectations and involve substantial risks and uncertainties. We may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in our forward-looking statements and you should not place undue reliance on these forward-looking statements. Our actual results and the timing of events could differ materially from those included in such forward-looking statements as a result of these risks and uncertainties. These and other risk factors are discussed under “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2022 and our other filings with the Securities and Exchange Commission. We expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein.

PARATEK PHARMACEUTICALS, INC.

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)

			As of June 30,				December 31,
			2023				2022
Cash, cash equivalents and marketable securities		$	42,685			$	34,248
Total assets			145,792				172,538
Working capital			(97,392	)			99,454
Total current liabilities			202,619				37,388
Long-term debt			94,285				256,946
Common stock and additional paid-in capital			763,780				759,407
Accumulated deficit			(965,145	)			(930,449	)
Total stockholders’ deficit			(201,365	)			(171,042	)

Condensed Consolidated Statement of Operations (unaudited) (in thousands, except loss per share data)
	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Product revenue, net	$	33,800		$	25,082		$	60,013		$	45,000
Government contract service revenue		3,620			1,896			5,301			4,068
Government contract grant revenue		1,931			2,082			4,084			4,182
Collaboration and royalty revenue		642			577			1,831			1,248
Net revenue	$	39,993		$	29,637		$	71,229		$	54,498
Expenses:
Cost of product revenue		4,368			4,878			10,612			8,372
Research and development		8,772			7,592			16,080			15,069
Selling, general and administrative		36,264			30,335			69,753			57,937
Total operating expenses		49,404			42,805			96,445			81,378
Loss from operations		(9,411	)		(13,168	)		(25,216	)		(26,880	)
Other income and expenses:
Interest income		252			133			473			240
Interest expense		(5,287	)		(4,546	)		(9,763	)		(9,025	)
Other (losses) gains, net		(56	)		(38	)		(78	)		138
Net loss before provision for income taxes	$	(14,502	)	$	(17,619	)	$	(34,584	)	$	(35,527	)
Provision for income taxes		(51	)		—			(111	)		—
Net loss		(14,553	)		(17,619	)		(34,695	)		(35,527	)
Other comprehensive (loss)
Unrealized (loss) on available-for-sale securities, net of tax		—			(53	)		—			(224	)
Comprehensive loss	$	(14,553	)	$	(17,672	)	$	(34,695	)	$	(35,751	)
Basic and diluted net loss per common share	$	(0.25	)	$	(0.33	)	$	(0.61	)	$	(0.67	)
Weighted average common stock outstanding
Basic		57,282,239			53,023,350			57,093,876			53,310,091
Diluted		57,282,239			53,023,350			57,093,876			53,310,091

CONTACT:

Investor Relations:
PJ Kelleher
LifeSci Advisors
[email protected]
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Media:
Christine Fanelle
Scient PR
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Phone: 215-595-5211

Represents the first FDA approved and commercially available fixed combination of tropicamide and phenylephrine for pupil dilation

Validates Eyenovia’s proprietary Optejet
^®
dispensing platform

World-renowned board-certified ophthalmologist Dr. Nathan M. Radcliffe becomes first to incorporate Mydcombi into his daily practice

NEW YORK, Aug. 03, 2023 (GLOBE NEWSWIRE) — Eyenovia, Inc. (NASDAQ: EYEN), an ophthalmic technology company commercializing Mydcombi^™ (tropicamide and phenylephrine hydrochloride ophthalmic spray) 1%/2.5% for mydriasis and developing the Optejet^® device for use both in connection with its own drug-device therapeutic product candidates for presbyopia and pediatric progressive myopia as well as out-licensing for additional indications, today announced the first commercial sale of Mydcombi. Mydcombi was approved by the US Food and Drug Administration on May 8, 2023. The initial sale was to world-renowned board-certified ophthalmologist Dr. Nathan M. Radcliffe, who has become the first physician in the U.S. to incorporate Mydcombi into his daily practice.

“We are very pleased to initiate sales of Mydcombi to select professional offices so that ophthalmologists, optometrists, technicians and their patients can experience the benefits of Mydcombi’s metered spray delivery relative to conventional multiple eye drops,” stated Michael Rowe, chief executive officer of Eyenovia. “We have now kicked off our targeted launch while we continue to ramp up our internal manufacturing capabilities.”

“I have been eagerly awaiting the commercial availability of Mydcombi to provide a great experience to my patients who require pupil dilation,” stated Dr. Radcliffe. “In addition, given the potential for streamlining patient throughput that Mydcombi may facilitate, I anticipate that it will be the go-to mydriasis agent in my own practice going forward.”

Mydcombi is designed to streamline the estimated 106 million office-based comprehensive eye exams with pupil dilation performed every year in the United States, as well as the estimated 4 million pharmacologic mydriasis applications for ocular surgery. In clinical studies, Mydcombi was statistically superior to tropicamide and to phenylephrine administered alone, with effective pupil dilation in almost two thirds of patients seen as early as 20 minutes after application, with excellent tolerability. The product should not be used in patients with known hypersensitivity to any component of the formulation.

IMPORTANT SAFETY INFORMATION for MYDCOMBI

^™

 (tropicamide and phenylephrine hydrochloride ophthalmic spray) 1%/2.5%

INDICATIONS

MYDCOMBI is indicated to induce mydriasis for diagnostic procedures and in conditions where short term pupil dilation is desired

CONTRAINDICATIONS: In patients with known hypersensitivity to any component of the formulation

WARNINGS AND PRECAUTIONS

FOR TOPICAL OPHTHALMIC USE. NOT FOR INJECTION
This preparation may cause CNS disturbances which may be dangerous in pediatric patients. The possibility of psychotic reaction and behavioral disturbance due to hypersensitivity to anticholinergic drugs should be considered.
Mydriatics may produce a transient elevation of intraocular pressure.
Significant elevations in blood pressure have been reported. Caution in patients with elevated blood pressure.
Rebound miosis has been reported one day after installation.
Remove contact lenses before using.

DRUG INTERACTIONS

Atropine-like Drugs: May exaggerate the adrenergic pressor response
Cholinergic Agonists and Ophthalmic Cholinesterase Inhibitors: May interfere with the antihypertensive action of carbachol, pilocarpine, or ophthalmic cholinesterase inhibitors
Potent Inhalation Anesthetic Agents: May potentiate cardiovascular depressant effects of some inhalation anesthetic agents

ADVERSE REACTIONS

• Most common ocular adverse reactions include transient blurred vision, reduced visual acuity, photophobia, superficial punctate keratitis, and mild eye discomfort. Increased intraocular pressure has been reported following the use of mydriatics.
• Systemic adverse reactions including dryness of the mouth, tachycardia, headache, allergic reactions, nausea, vomiting, pallor, central nervous system disturbances and muscle rigidity have been reported with the use of tropicamide.

To report SUSPECTED ADVERSE REACTIONS, contact Eyenovia, Inc. At 1-833-393-6684 or FDA at 1-800-FDA-1088 (www.fda.gov/medwatch)

Please go to www.mydcombi.com for FULL PRESCRIBING INFORMATION

About Eyenovia, Inc.

Eyenovia, Inc. (NASDAQ: EYEN) is a commercial stage ophthalmic pharmaceutical technology company developing a pipeline of microdose array print therapeutics. Eyenovia is currently focused on the commercialization of Mydcombi for mydriasis, as well as the ongoing late-stage development of medications in the Optejet device for presbyopia and myopia progression. For more information, visit Eyenovia.com.

The Eyenovia Corporate Information slide deck may be found at ir.eyenovia.com/events-and-presentations.

Forward-Looking Statements

Except for historical information, all the statements, expectations and assumptions contained in this presentation are forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions, including estimated market opportunities for our product candidates and platform technology. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and in some cases are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors discussed from time to time in documents which we file with the U.S. Securities and Exchange Commission.

In addition, such statements could be affected by risks and uncertainties related to, among other things: risks of our clinical trials, including, but not limited to, the costs, design, initiation and enrollment, timing, progress and results of such trials; the timing of, and our ability to submit applications for, obtaining and maintaining regulatory approvals for our product candidates; the potential advantages of our product candidates and platform technology; the rate and degree of market acceptance and clinical utility of our product candidates; our estimates regarding the potential market opportunity for our product candidates; reliance on third parties to develop and commercialize our product candidates; the ability of us and our partners to timely develop, implement and maintain manufacturing, commercialization and marketing capabilities and strategies for our product candidates; intellectual property risks; changes in legal, regulatory, legislative and geopolitical environments in the markets in which we operate and the impact of these changes on our ability to obtain regulatory approval for our products; and our competitive position.

Any forward-looking statements speak only as of the date on which they are made, and except as may be required under applicable securities laws, Eyenovia does not undertake any obligation to update any forward-looking statements.

Eyenovia Contact:

Eyenovia, Inc.
John Gandolfo
Chief Financial Officer
[email protected]

Eyenovia Investor Contact:

Eric Ribner
LifeSci Advisors, LLC
[email protected]
(646) 751-4363

Eyenovia Media Contact:

Eyenovia, Inc.
Norbert Lowe
Vice President, Commercial Operations
[email protected]