Market Newsdesk

Fort Collins, CO, Nov. 16, 2020 (GLOBE NEWSWIRE) — Innosphere Ventures’ seed-stage venture capital fund has announced its investment in Heads Up Health (Heads Up), a leading digital health analytics company with a software platform that instantly compiles and organizes a complete medical history.  Using data from multiple sources, including wearables, genomics, labs, and electronic health records (EHR), Heads Up enables users and their healthcare providers to see the data they need to transform health outcomes.

Heads Up has built a fully HIPPA compliant cloud-based software-as-a-service (SaaS) platform that integrates today’s most advanced sensors and wearables (Apple Watch, Oura Ring, DEXCOM etc.) and major healthcare practitioner’s existing EHR portals (Quest Diagnostics, Labcorp, Everlywell etc.).  The platform includes a web app and mobile app that are used by practitioners and patients to track goal progress and improve patients’ health outcomes.  To date, the company’s health analytics platform has been implemented by over 30,000 individual users in over 60 countries around the world. 

Heads Up is rapidly adding new customers across a range of healthcare verticals, including functional, integrative and concierge medicine, direct primary care, dieticians and nutritionists, and wellness coaches.  Heads Up will use the investment capital to implement an accelerated growth plan which includes adding enterprise-level capabilities to the product, increasing remote patient monitoring (RPM) billing features, enhancing mobile app features, and growing the sales team. 

“After we saw the Heads Up platform, we knew the company was perfectly positioned to lead the digital health analytics transformation and implement precision medicine with their world-class user interface and tools for patients and practitioners.  The Heads Up platform will play a major part in new care delivery models, including personalized predictive and preventive solutions for individual’s health.  Our Fund couldn’t be more excited to partner with the Heads Up team in such an endeavor,” said John Smith, Innosphere Ventures collaborator who led the investment into Heads Up with the fund’s General Partners and will join Heads Up Health’s Board of Directors.  The combination of a growing focus on health analytics, the shift to virtual care and regulatory changes, including new reimbursement codes for remote patient monitoring, are key trends driving the need for Heads Up’s solution.

“We found the right partner in Innosphere Ventures, not only do they share our vision of the opportunity, but they bring an operator’s perspective and the network to help us lead the way.  We are thrilled to have them as investors,” said Dave Korsunsky, founder and CEO of Heads Up.  “It’s no secret that healthcare is undergoing massive technological and regulatory change, and our team is dedicated to building the best health platform that puts the power of data at your fingertips, so that individuals and healthcare professionals can better optimize health.  Heads Up is the only platform that empowers you with full control over all your health data.”

For more information on Innosphere Ventures and this investment, contact Mike Freeman, General Partner of Innosphere Fund I, at [email protected] or (970) 817-4791.

Attachments

• Heads Up Health Dashboard
• Lage Innosphere Logo_No Padding_1

Emily Wilson
Innosphere Ventures
970-295-4481
[email protected]

▪ Data from the monkey challenge study published in Nature Communications showed a single dose of neutralizing antibody ABP 300 blocks infection of SARS-CoV-2 in prophylactic treatment and clears SARS-CoV-2 in three days in a therapeutic treatment setting

▪ Safety demonstrated in non-human primates

▪ ABP 300 showed the potential to neutralize eight SARS-CoV-2 strains with reported high-frequency mutations

▪ Data support the continued evaluation of neutralizing antibody therapeutic, ABP 300, in human subjects

WOBURN, Mass., Nov. 16, 2020 (GLOBE NEWSWIRE) — Abpro Corporation today announced the publication of a peer-reviewed article in the scientific journal Nature Communications titled, “Characterization of neutralizing antibody with prophylactic and therapeutic efficacy against SARS-CoV-2 in rhesus monkeys.” The publication is available online here.

ABP 300, referred to as MW05 in the publication, neutralizes COVID-19 by binding to the receptor binding domain (RBD) of the SARS-CoV-2 spike protein, blocking the viral interaction with the angiotensin-converting enzyme 2 (ACE2) receptors of host which are critical for viral entry and infection. Through this mechanism of action, ABP 300 not only completely and safely neutralizes COVID-19 in animal models but could potentially do so with superior safety and efficacy than other monoclonal antibodies in development.

“We are highly encouraged by this preclinical best-in-class proof-of-concept data showing the potential of our monoclonal antibodies to neutralize multiple SARS-CoV-2 strains. The data supports further development of antibody-based therapies for prophylactic and therapeutic treatment of COVID-19,” said Ian Chan, chief executive officer and co-founder of Abpro Corporation. “As the SARS-CoV-2 mutates, which could undermine the effectiveness of vaccines and therapies, there is an urgent need for treatments that can address a broad range of strains.”

Study highlights:

• Potent prophylactic and therapeutic effects against SARS-CoV-2 were observed in rhesus monkeys – a widely used model to assess efficacy of therapeutics and vaccines of SARS-CoV-2 because it closely mirrors human infection and disease. A single dose of ABP 300 blocked infection of SARS-CoV-2 in prophylactic treatment and cleared SARS-CoV-2 in three days in a therapeutic treatment setting.
• ABP-300 was shown to have a protective effect by alleviating the lung lesions caused by SARS-CoV-2 in the monkeys whether the antibody was injected before or after the virus challenge.
• ABP 300 showed high RBD binding abilities and strong ability to disrupt RBD/ACE2 binding, and effectively neutralized both SARS-CoV-2 pseudo virus and authentic live virus.
• Additional antibodies from Abpro’s program, ABP-300, as known as MW05, and an additional antibody, MW07, exhibited strong binding abilities to eight high frequency mutant RBD proteins, blocking viral interactions with host cells. These results suggest both monoclonal antibodies may neutralize a broad range of SARS-CoV-2 strains.

About ABP 300

ABP 300 is a human neutralizing monoclonal antibody therapy against COVID-19 that was created using the latest technologies available for antibody discovery. ABP 300 disrupts the interaction of the viral receptor binding domain (RBD) with host angiotensin-converting enzyme 2 (ACE2) receptor and has shown neutralizing efficacy in vivo against COVID-19 by blocking viral entry into cells. ABP 300 recently completed a Phase 1 dose escalation study in human subjects.

About Abpro

Abpro Corporation is a clinical stage biotechnology company located in Woburn, Massachusetts. The Company’s mission is to improve the lives of mankind facing severe and life-threatening diseases with next-generation antibody therapies. Abpro’s DiversImmune™ platform has been used successfully against 300 traditionally difficult targets. The Company has a pipeline of therapies to treat cancer, eye, autoimmune, infectious diseases and other areas. For more information, please visit www.abpro.com. 

Media Contact

Michael Tattory
LifeSci Communications
1 (646) 751-4362
[email protected]

SALT LAKE CITY, Nov. 16, 2020 (GLOBE NEWSWIRE) — Security National Financial Corporation (SNFC) (NASDAQ symbol “SNFCA”) announced financial results for the quarter ended September 30, 2020.

For the three months ended September 30, 2020, SNFC’s after-tax earnings from operations increased 710.2% from $3,617,000 in 2019 to $29,305,000 in 2020, on a 94.0% increase in revenues to $146,205,000. SNFC’s after tax earnings for the nine months ended September 30, 2020 increased 468.1% to $51,286,000 from $9,028,000 in 2019.

Scott M. Quist, President of the Company, said, “For the quarter, revenues increased 94%, profitability increased 700%, and YTD we have a 26% return on equity. I believe our third quarter is the best operational third quarter ever for each of our business segments. Those are spectacular results that have been delivered in difficult circumstances. I applaud the efforts of all our teams in their considerable accomplishment. Every business segment delivered impressive results.

“Our mortgage segment has taken great advantage of the circumstances presented this year. The pandemic-created interest rate decline spurred refinance volumes, made purchase transactions more affordable, and provided generally higher margins on the sale of loans for those institutions having the sales, operational, and financial wherewithal to take advantage. Our hardworking staff met the challenge of the more than doubled volumes by increasing efficiency in a very difficult workplace environment, such that costs only increased about 60% – an enviable accomplishment.

“Our insurance segment’s operational income reflects similar accomplishment. Our Kilpatrick Life Insurance Company acquisition, which closed last December, has been integrated. Much of that work was accomplished in difficult COVID-related circumstances. While Kilpatrick experienced losses during the first four months of 2020, as was anticipated, it is now profitable and contributing beyond expectations. COVID-related death claims have become more pronounced with death claims increasing about 20% YTD, and for September increasing approximately 65% over September 2019. I don’t know if the 65% number is a fair predictor of the future, but obviously COVID-19 claims are having, and will continue to have, an impact. Lastly, obtaining necessary investment yields within acceptable risk tolerances is becoming more difficult in this low interest rate environment. We do not anticipate those economic circumstances changing over the near term.

“Our Memorial segment similarly delivered very solid Q3 and YTD result with revenues increasing 54% for the quarter and operational income increasing 100% YTD. Substantially contributing to those results is increased preneed cemetery sales, but mortuary and cemetery operations were also significant contributors. This excellent performance is not an isolated instance. It is instructive to note that our Memorial segment has achieved an average 24% compound annual growth rate in operational income over the last six years. In my view, such excellent financial results are the natural consequence of continuously providing superb customer care and consumer experience during very difficult times.”

SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three months ended September 30, 2020, as compared to 2019, for each of the three business segments:

	Revenues									Earnings before Taxes
		2020			2019						2020			2019
Life Insurance	$	39,261,000		$	29,825,000		31.6	%		$	4,807,000		$	1,264,000		280.3	%
Cemeteries/Mortuaries	$	5,496,000		$	3,570,000		53.9	%		$	1,322,000		$	213,000		520.7	%
Mortgages	$	101,448,000		$	41,985,000		141.6	%		$	32,455,000		$	3,283,000		888.6	%
Total	$	146,205,000		$	75,380,000		94.0	%		$	38,584,000		$	4,760,000		710.6	%
For the nine months ended September 30, 2020:
	Revenues									Earnings before Taxes
		2020			2019						2020			2019
Life Insurance	$	110,255,000		$	88,937,000		24.0	%		$	5,408,000		$	4,568,000		18.4	%
Cemeteries/Mortuaries	$	14,816,000		$	12,473,000		18.8	%		$	2,976,000		$	2,422,000		22.9	%
Mortgages	$	219,404,000		$	103,909,000		111.2	%		$	58,868,000		$	4,826,000		1,119.8	%
Total	$	344,475,000		$	205,319,000		67.8	%		$	67,252,000		$	11,816,000		469.2	%

Net earnings per common share was $1.51 for the three months ended September 30, 2020, compared to net earnings of $0.19 per share for the prior year, as adjusted for the effect of annual stock dividends. Book value per common share was $13.53 as of September 30, 2020, compared to $10.86 as of December 31, 2019.

The Company has two classes of common stock outstanding, Class A and Class C. There were 18,919,980 Class A equivalent shares outstanding as of September 30, 2020.

If there are any questions, please contact Mr. Garrett S. Sill, Mr. Brian Nelsen or Mr. Scott Quist at:

Security National Financial Corporation
P.O. Box 57250
Salt Lake City, Utah 84157
Phone (801) 264-1060
Fax (801) 265-9882

 

 

 

• Net Income of $718,000, $0.06 EPS and $4.7 Million Cash from Operations
  
• Gross Subscription (SaaS) and Annual Recurring And Contracted Support Revenues Exceeded $5 Million for the First Time
• Major Go-Live Event, Double-Digit Recurring Revenue Growth, and Continued Cost Management Efforts Yield Fourth Straight Quarter of Profitability
• OTOZ Partnering to Launch a Digital Automotive Retail Platform for a U.S. Based Subsidiary of a Renowned German Auto Manufacturer for One of its Key Brands with an Initial Launch in California in Early Calendar 2021
• Moderate Return to Business Conditions, Coupled with High-Value, Near-Term Pipeline of Opportunities Underscore Cautiously Optimistic Growth Outlook for Fiscal 2021

CALABASAS, Calif., Nov. 16, 2020 (GLOBE NEWSWIRE) — NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, reported results for the fiscal first quarter ended September 30, 2020.

Fiscal First Quarter 2021 and Recent Operational Highlights

• Successfully implemented the NFS Ascent® Retail Platform, including the Company’s proprietary Loan Origination System (LOS) and Contract Management System (CMS) for a tier-one German auto captive finance company in China in the second phase of a previously announced $30 million contract.
• Regarding previously announced 12-country, $110 million contract with German auto manufacturing giant, the Company made continued progress with respect to additional NFS Ascent® implementations. The Company has successful Go Live events in Singapore and Thailand in September and October, respectively. The implementation process has also now begun in New Zealand and Australia.
• Announced the successful implementation of the Company’s first North American cloud-based NFS Ascent Contract Management System (CMS) for SCI Lease Corp, a Canadian-based national automotive leasing company.
• Appointed Peter Minshall as Executive Vice President (EVP) of NTA. The EVP role will report directly to the Company CEO and is responsible for the entire NTA portion of NETSOL’s business operations.
• Generated $315,000 in additional SaaS subscription and support revenues, which are recurring in nature and anticipated to gradually increase as the Company implements NFS legacy products and NFS Ascent®.
• NETSOL effectively generated approximately $1.3 million by successfully implementing change requests from various customers across multiple regions.
• NETSOL’s new mobility startup subsidiary, Otoz, is partnering to launch its digital automotive retail platform for a U.S. based subsidiary of a renowned German auto manufacturer for one of its key brands.

Fiscal First Quarter 2021 Financial Results

Total net revenues for the first quarter of fiscal 2021 were $12.6 million, compared with $13.6 million in the prior year period. The decrease in total net revenues was primarily due to a decrease in total license fees of $2.5 million, which was offset by an increase in subscription and support revenues of $565,000 and an increase in total service revenues of $970,000.

• Total license fees were $3,500, compared with $2.5 million in the prior year period.
• Total subscription (SaaS and Cloud) and support revenues were $5.2 million, compared with $4.6 million in the prior year period.
• Total services revenues were $7.5 million, compared with $6.5 million in the prior year period.

Gross profit for the first quarter of fiscal 2021 was $6.4 million (or 50.5% of net revenues), compared to $6.1 million (or 45.0% of net revenues) in the first quarter of fiscal 2020. The increases in gross profit and gross profit as a percentage of revenue were primarily due to decreases in cost of revenues, which were predominantly driven by a decrease in travel expenses resulting from the COVID-19 pandemic.

Operating expenses for the first quarter of fiscal 2021 decreased 18.2% to $5.3 million (or 42.3% of net revenues) from $6.5 million (or 48.2% of net revenues) for the first quarter of fiscal 2020. The decrease in operating expenses was primarily due to decreases in selling and marketing, professional services, research and development and general and administrative expenses, which were offset by a minor increase in depreciation and amortization.

GAAP net income attributable to NETSOL for the first quarter of fiscal 2021 totaled $718,000 or $0.06 per diluted share, compared with GAAP net loss of $(1.8) million or $(0.16) per diluted share in the first quarter of fiscal 2020. GAAP net income attributable to NETSOL included a $296,000 gain on foreign currency exchange transactions in the first quarter of fiscal 2020, which was a significant increase compared with a loss of $1.8 million in the prior year period.

Non-GAAP adjusted EBITDA for the first quarter of fiscal 2021 totaled $1.6 million or $0.14 per diluted share, compared with non-GAAP adjusted EBITDA loss of $(1.1) million or $(0.09) per diluted share in the first quarter of fiscal 2020 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).

At September 30, 2020, cash and cash equivalents were $24.9 million, an increase from $20.2 million at June 30, 2020.

Management Commentary
“The beginning of the fiscal year was an extension of the same business conditions we’ve witnessed since the pandemic took hold, but we are continuing to operate efficiently, control costs and execute on our long-term strategic growth plan,” said NETSOL Co-Founder, Chairman and Chief Executive Officer Najeeb Ghauri. “Financially, we generated roughly $1.3 million from change requests and reduced expenses by nearly 20% leading to sustained profitability on a trailing-twelve-month basis. We also grew our recurring revenue base by double digits to $5.2 million. As we layer on maintenance fees through larger, traditional, enterprise contracts and increase our SaaS-based footprint, we expect to build this base over time, which provides for more predictable revenues with a more attractive margin profile.

“During fiscal Q1, we were very active on the implementation front and had multiple successful ‘Go Live’ events within our APAC region for a pair of major international auto manufacturers. We are also gaining traction with mid-size auto captives in our North American and European markets with the latter comprising a greater portion of overall revenues compared to last year. Our Otoz Innovation Lab remains a bright spot, making great progress on current partnerships, including work with a renowned German OEM on a digital automotive retail platform for one of its key brands. With several catalysts on the horizon, we are optimistic about our prospects for the new fiscal year.”

Sales Outlook

Ghauri added: “Sales discussions with a number of potential customers remain active, and we are confident that the market is beginning to pick up in all global regions. We have a number of high-value, near-term opportunities in our pipeline and are cautiously optimistic about our growth outlook.”

Otoz Update
“We recently began a partnership to launch a fully-digital mobile app for a major German auto captive in the U.S. that will enable a touchless customer journey, all built on the Otoz platform,” said Naeem Ghauri, CEO of Otoz. “The end product will be rolled out to hundreds of auto dealers across the U.S. and is expected to generate significant SaaS revenues for our business. Separately, we are in the final contract negotiation stages with a number of other major players in the automotive space and look forward to announcing those agreements in the near future.”

Conference Call

NETSOL Technologies management will hold a conference call today (November 16, 2020) at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these financial results. A question and answer session will follow management’s presentation.

U.S. dial-in: 1-877-407-0789
International dial-in: 1-201-689-8562

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

The conference call will be broadcasted live and available for replay here and via the Investor Relations section of NETSOL’s website.

A replay of the conference call will be available after 12:00 p.m. Eastern time on the same day through November 30, 2020.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13712135

About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1300 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent® – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete finance and leasing lifecycle.

About Otoz

Otoz provides business-to-business, white-label technology solutions for new mobility. Our suite of agile and customizable mobility solutions ranges from car sharing and subscription products to AI-enabled chatbots, allowing businesses to engage consumers and facilitate the complete transaction lifecycle intelligently and digitally. Otoz technologies empower automotive companies and start-ups to launch new mobility models quickly and efficiently. The technology Otoz has developed is cloud-native and supported by artificial intelligence (AI), machine learning (ML), internet of things (IoT) and blockchain. Our technology drives utilization, while supporting robust and efficient operations.

Forward-Looking Statements


This press release may contain forward-looking statements relating to the development of the Company’s products and services and future operating results, including statements regarding the Company that are subject to certain risks and uncertainties such as the effect of stay at home orders and social distancing imposed by COVID-19 and its resultant impact on our financials and the world economy that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company’s actual results include the progress and costs of the development of products and services and the timing of the market acceptance, as well as the delay in recovery or a prolonged economic downturn that effects our Company, our customers and the world economy. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Use of Non-GAAP Financial Measures

The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release. 

Investor Relations Contact:

Matt Glover and Tom Colton

Gateway Investor Relations
1-949-574-3860
[email protected]

NETSOL Technologies, Inc. and Subsidiaries

Schedule 1: Consolidated Balance Sheets

			As of				As of
	ASSETS		September 30, 2020				June 30, 2020
Current assets:
	Cash and cash equivalents		$	24,885,365			$	20,166,830
	Accounts receivable, net of allowance of $279,903 and $435,611			6,732,575				10,131,752
	Accounts receivable – related party, net of allowance of $1,373,099 and $90,594			–				1,282,505
	Revenues in excess of billings, net of allowance of $91,250 and $188,914			18,430,766				17,198,281
	Revenues in excess of billings – related party, net of allowance of $8,163 and $0			–				8,163
	Other current assets, net of allowance of $1,243,633 and $0			2,616,769				3,108,180
		Total current assets		52,665,475				51,895,711
Revenues in excess of billings, net – long term				–				1,300,289
Convertible note receivable – related party, net of allowance of $4,250,000  and $0				–				4,250,000
Property and equipment, net				11,256,306				11,329,631
Right of use of assets – operating leases				2,133,902				2,360,129
Long term investment				2,417,291				2,387,692
Other assets				41,175				41,992
Intangible assets, net				5,032,630				5,391,077
Goodwill				9,516,568				9,516,568
		Total assets	$	83,063,347			$	88,473,089
	LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable and accrued expenses		$	6,005,999			$	5,680,837
	Current portion of loans and obligations under finance leases			9,677,277				9,139,561
	Current portion of operating lease obligations			1,165,957				1,111,912
	Unearned revenues			2,775,600				4,095,472
	Common stock to be issued			88,324				88,324
		Total current liabilities		19,713,157				20,116,106
Loans and obligations under finance leases; less current maturities				1,705,699				1,539,975
Operating lease obligations; less current maturities				1,110,832				1,339,965
		Total liabilities		22,529,688				22,996,046
Commitments and contingencies
Stockholders’ equity:
	Preferred stock, $.01 par value; 500,000 shares authorized;			–				–
	Common stock, $.01 par value; 14,500,000 shares authorized;
		12,137,045  shares issued and 11,742,490  outstanding as of September 30, 2020  and
		12,122,149  shares issued and 11,874,646  outstanding as of June 30, 2020		121,371				121,222
	Additional paid-in-capital			128,764,618				128,677,754
	Treasury stock (at cost, 394,555 shares and 247,503 shares
	as of September 30, 2020 and June 30, 2020, respectively)			(1,920,645	)			(1,455,969	)
	Accumulated deficit			(39,861,985	)			(34,269,817	)
	Other comprehensive loss			(33,210,231	)			(34,085,047	)
		Total NetSol stockholders’ equity		53,893,128				58,988,143
	Non-controlling interest			6,640,531				6,488,900
		Total stockholders’ equity		60,533,659				65,477,043
		Total liabilities and stockholders’ equity	$	83,063,347			$	88,473,089

 

NETSOL Technologies, Inc. and Subsidiaries

Schedule 2: Consolidated Statement of Operations

			For the Three Months
			Ended September 30,
				2020				2019
Net Revenues:
	License fees		$	3,475			$	2,464,216
	Subscription and support			5,171,863				4,606,376
	Services			7,472,040				6,418,891
	Services – related party			–				82,933
		Total net revenues		12,647,378				13,572,416
Cost of revenues:
	Salaries and consultants			4,526,649				4,454,964
	Travel			103,752				1,342,635
	Depreciation and amortization			707,249				719,665
	Other			928,153				944,524
		Total cost of revenues		6,265,803				7,461,788
Gross profit				6,381,575				6,110,628
Operating expenses:
	Selling and marketing			1,609,604				1,743,868
	Depreciation and amortization			221,790				202,387
	General and administrative			3,427,636				3,918,613
	Research and development cost			85,989				672,970
		Total operating expenses		5,345,019				6,537,838
Income (loss) from operations				1,036,556				(427,210	)
Other income and (expenses)
	Loss on sale of assets			(21,742	)			(289	)
	Interest expense			(103,327	)			(63,663	)
	Interest income			200,821				399,229
	Gain (loss) on foreign currency exchange transactions			296,041				(1,760,190	)
	Share of net loss from equity investment			(107,850	)			(189,224	)
	Other income			87,272				18,326
		Total other income (expenses)		351,215				(1,595,811	)
Net income (loss) before   income taxes				1,387,771				(2,023,021	)
Income tax provision				(264,294	)			(238,238	)
Net income (loss)				1,123,477				(2,261,259	)
	Non-controlling interest			(405,923	)			433,312
Net income (loss) attributable to NetSol			$	717,554			$	(1,827,947	)
Net income per share:
	Net income per common share
		Basic	$	0.06			$	(0.16	)
		Diluted	$	0.06			$	(0.16	)
Weighted average number of shares outstanding
	Basic			11,787,233				11,664,239
	Diluted			11,787,233				11,664,239

 

NETSOL Technologies, Inc. and Subsidiaries

Schedule 3: Consolidated Statement of Cash Flows

				For the Three Months
				Ended September 30,
					2020				2019
Cash flows from operating activities:
	Net income (loss)			$	1,123,477			$	(2,261,259	)
	Adjustments to reconcile net income (loss)
		to net cash provided by operating activities:
	Depreciation and amortization				929,039				922,052
	Provision for bad debts				(258,160	)			(38,621	)
	Share of net loss from investment under equity method				107,850				189,224
	Loss on sale of assets				21,742				289
	Stock based compensation				90,995				164,293
	Changes in operating assets and liabilities:
		Accounts receivable			3,823,299				4,836,183
		Accounts receivable – related party			–				46,016
		Revenues in excess of billing			394,995				(1,870,517	)
		Revenues in excess of billing – related party			–				66,330
		Other current assets			(393,253	)			(278,677	)
		Accounts payable and accrued expenses			255,239				122,012
		Unearned revenue			(1,383,619	)			(1,631,245	)
	Net cash provided by operating activities				4,711,604				266,080
Cash flows from investing activities:
	Purchases of property and equipment				(489,289	)			(321,125	)
	Sales of property and equipment				32,673				958
	Convertible note receivable – related party				–				(435,000	)
	Investment in associates				(60,500	)			–
	Net cash used in investing activities				(517,116	)			(755,167	)
Cash flows from financing activities:
	Proceeds from exercise of subsidiary options				–				11,621
	Purchase of treasury stock				(464,676	)			–
	Proceeds from bank loans				697,295				–
	Payments on finance lease obligations and loans – net				(143,506	)			(147,376	)
	Net cash provided by (used in) financing activities				89,113				(135,755	)
Effect of exchange rate changes					434,934				879,857
Net increase in cash and cash equivalents					4,718,535				255,015
Cash and cash equivalents at beginning of the period					20,166,830				17,366,364
Cash and cash equivalents at end of period				$	24,885,365			$	17,621,379

NETSOL Technologies, Inc. and Subsidiaries

Schedule 4: Reconciliation to GAAP

	For the Three Months Ended				For the Three Months Ended
	September 30, 2020				September 30, 2019
Net Income (loss) attributable to NetSol	$	717,554			$	(1,827,947	)
Non-controlling interest		405,923				(433,312	)
Income taxes		264,294				238,238
Depreciation and amortization		929,039				922,052
Interest expense		103,327				63,663
Interest (income)		(200,821	)			(399,229	)
EBITDA	$	2,219,316			$	(1,436,535	)
Add back:
Non-cash stock-based compensation		90,995				164,293
Adjusted EBITDA, gross	$	2,310,311			$	(1,272,242	)
Less non-controlling interest (a)		(698,844	)			191,235
Adjusted EBITDA, net	$	1,611,467			$	(1,081,007	)
Weighted Average number of shares outstanding
Basic		11,787,233				11,664,239
Diluted		11,787,233				11,664,239
Basic adjusted EBITDA	$	0.14			$	(0.09	)
Diluted adjusted EBITDA	$	0.14			$	(0.09	)
(a)The reconciliation of adjusted EBITDA of non-controlling interest
to net income attributable to non-controlling interest is as follows
Net Income (loss) attributable to non-controlling interest	$	405,923			$	(433,312	)
Income Taxes		48,649				53,335
Depreciation and amortization		264,565				259,635
Interest expense		31,520				19,041
Interest (income)		(65,957	)			(105,501	)
EBITDA	$	684,700			$	(206,802	)
Add back:
Non-cash stock-based compensation		14,144				15,567
Adjusted EBITDA of non-controlling interest	$	698,844			$	(191,235	)

-Phase 1 INNATE trial will evaluate JTX-8064 as a monotherapy and in combination with Jounce’s PD-1 inhibitor,
JTX-4014
–

–
O
n track
to begin
enrollment
by year-end
2020
–

CAMBRIDGE, Mass., Nov. 16, 2020 (GLOBE NEWSWIRE) — Jounce Therapeutics, Inc. (NASDAQ: JNCE), a clinical-stage company focused on the discovery and development of novel cancer immunotherapies and predictive biomarkers, today announced the company has received a Study May Proceed Letter from the United States Food and Drug Administration (FDA) to begin a Phase 1 trial, named INNATE, for JTX-8064. JTX-8064 is an anti-Leukocyte Immunoglobulin Like Receptor B2 (LILRB2/ILT4) antibody and is the first tumor-associated macrophage candidate from Jounce’s Translational Science Platform. Through the Study May Proceed Letter, the FDA has cleared the original Investigational New Drug (IND) application for JTX-8064. Preclinical data presented at the 2020 Society for Immunotherapy of Cancer’s Annual Meeting and the 2019 American Association for Cancer Research Annual Meeting support the development of JTX-8064 as a novel immunotherapy to reprogram immune-suppressive macrophages and enhance anti-tumor immunity.

The Phase 1 INNATE trial will consist of 4 parts:

• JTX-8064 monotherapy dose escalation in solid tumors
• JTX-8064 dose escalation in combination with Jounce’s PD-1 inhibitor, JTX-4014, or with pembrolizumab in solid tumors
• JTX-8064 monotherapy in indication-specific expansion cohorts
• JTX-8064 + JTX-4014 or pembrolizumab in indication-specific expansion cohorts

“Our INNATE trial represents the first time we are combining two wholly owned Jounce immunotherapies targeting two different immune cells in the tumor microenvironment,” said Elizabeth Trehu, M.D., chief medical officer of Jounce Therapeutics. “We believe that targeting multiple immune cell types including immunosuppressive macrophages in the tumor microenvironment may offer new promise for patients, particularly those with PD-(L)1 inhibitor resistant tumors, where IO therapies have yet to make a substantial impact. Expansion cohorts in INNATE will include PD-(L)1 resistant and sensitive tumor types, and PD-(L)1 naïve and experienced patients. INNATE is designed to advance rapidly to initiation of indication-specific JTX-8064 monotherapy and PD-1 inhibitor combination expansion cohorts, with a goal to establish proof-of-concept as quickly as possible, and we are on track to begin enrollment in INNATE by the end of the year.”

A
bout JTX-8064

JTX-8064 is a humanized anti-LILRB2 (ILT4) antibody and is the first tumor-associated macrophage candidate to emerge from Jounce’s Translational Science Platform. Preclinical data presented at the 2020 Society for Immunotherapy of Cancer’s Annual Meeting and the 2019 American Association for Cancer Research Annual Meeting support the development of JTX-8064 as a novel immunotherapy to reprogram immune-suppressive macrophages and enhance anti-tumor immunity. A Phase 1 clinical trial, named INNATE, for JTX-8064 as a monotherapy and in combination with a PD-1 inhibitor is planned to begin enrollment by year-end 2020.

About JTX-4014

JTX-4014 is a well-characterized fully human IgG4 monoclonal antibody designed to block binding to PD-L1 and PD-L2. JTX-4014 demonstrated a 17% durable overall response rate in a Phase 1 trial of 18 heavily pre-treated PD-(L)1 inhibitor naïve patients which excluded all tumor types for which PD-(L)1 inhibitors were approved. In this Phase 1 trial, JTX-4014 was shown to have an acceptable safety profile. JTX-4014 is currently being assessed in the SELECT Phase 2 clinical trial in combination with vopratelimab, a clinical-stage monoclonal antibody that binds to and activates ICOS, the Inducible T cell CO-Stimulator, a protein on the surface of certain T cells commonly found in many solid tumors. The SELECT trial compares vopratelimab plus JTX-4014 to JTX-4014 alone in immunotherapy naïve NSCLC patients who have been pre-selected with the TIS^vopra predictive biomarker, an 18 gene RNA tumor inflammation signature which predicted the emergence of ICOS hi CD4 T cells and clinical benefit in the ICONIC trial of vopratelimab alone and in combination with a PD-1 inhibitor.

About Jounce Therapeutics

Jounce Therapeutics, Inc. is a clinical-stage immunotherapy company dedicated to transforming the treatment of cancer by developing therapies that enable the immune system to attack tumors and provide long-lasting benefits to patients through a biomarker-driven approach. Jounce currently has multiple development stage programs ongoing while simultaneously advancing additional early-stage assets from its robust discovery engine based on its Translational Science Platform. Jounce’s most advanced product candidate, vopratelimab, is a monoclonal antibody that binds to and activates ICOS, and is currently being studied in the SELECT Phase 2 trial. JTX-4014 is a PD-1 inhibitor intended for combination use in the SELECT trial and with Jounce’s broader pipeline. Jounce’s next development stage product candidate, JTX-8064, is a LILRB2 (ILT4) receptor antagonist shown to reprogram immune-suppressive tumor associated macrophages to an anti-tumor state. A Phase 1 trial evaluating JTX-8064 is planned to begin enrollment in the fourth quarter of 2020. Additionally, Jounce exclusively licensed worldwide rights to JTX-1811, a monoclonal antibody targeting CCR8 and designed to selectively deplete T regulatory cells in the tumor microenvironment, to Gilead Sciences, Inc. For more information, please visit www.jouncetx.com.

Cautionary Note Regarding
Forward-Looking Statements
Various statements in this release concerning Jounce’s future expectations and plans, including without limitation, Jounce’s expectations regarding the timing and initiation of clinical trials of JTX-8064 and JTX-4014, may constitute forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 and other federal securities laws and are subject to substantial risks, uncertainties and assumptions. You should not place reliance on these forward-looking statements, which often include words such as “expect,” “plan” or similar terms, variations of such terms or the negative of those terms. Although Jounce believes that the expectations reflected in the forward-looking statements are reasonable, Jounce cannot guarantee such outcomes. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including, without limitation, risks that the COVID-19 pandemic may disrupt Jounce’s business and/or the global healthcare system more severely than anticipated, which may have the effect of delaying enrollment and completion of Jounce’s clinical trials, or delaying timelines or data disclosures and regulatory submissions for its product candidates; Jounce’s ability to successfully demonstrate the efficacy and safety of its product candidates; Jounce’s ability to successfully manage its clinical trials; the development plans of its product candidates and any companion or complementary diagnostics; management of Jounce’s supply chain for the delivery of drug product and materials for use in clinical trials; actions of regulatory agencies, which may affect the initiation, timing and progress of preclinical studies and clinical trials of Jounce’s product candidates; and those risks more fully discussed in the section entitled “Risk Factors” in Jounce’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission as well as discussions of potential risks, uncertainties, and other important factors in Jounce’s subsequent filings with the Securities and Exchange Commission. All such statements speak only as of the date made, and Jounce undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor and Media Contacts:

Mark Yore
+1-857-200-1255
[email protected] 

Malin Deon
+1-857-259-3843
[email protected]