Market Newsdesk

Positive Response to Beta Testing of New Cybersecurity Solution
and

Strengthened Balance Sheet with Successful Follow-On Offering

PLANO, Texas, Nov. 12, 2020 (GLOBE NEWSWIRE) — INTRUSION, Inc. (NASDAQ: INTZ) announced today financial results for the three- and nine-month periods ended September 30, 2020.

Third Quarter and Recent Business Highlights

• With positive beta-testing results, accepts pre-orders for INTRUSION Shield™
• $18.1 million in net proceeds raised from a public offering of common shares
• Successfully uplisted to the Nasdaq Capital Market
• Expansion of executive team with key appointments to support growth strategy

“While extended government shutdowns associated with the pandemic continued to impact our legacy subscription and reporting businesses during the third quarter, the growing trend of sophisticated cybersecurity attacks underscores the crucial need for more advanced, innovative solutions,” stated Jack B. Blount, President and CEO of INTRUSION. “We are capitalizing on this need through the recent introduction and aggressive ramp of our new Shield family of disruptive cybersecurity solutions.

“Recent feedback from enterprise customers that are beta testing Shield has been extraordinarily positive, which is why we made the decision to take pre-orders ahead of general availability. Leveraging our unique proprietary database of threat indicators and advanced AI, Shield detects and neutralizes threats that are actively inside customers’ networks, effectively tackling the problem of vulnerability from the inside out. Shield will disrupt the cybersecurity industry beginning with the enterprise market, which represents more than a $7 billion opportunity in the U.S. alone. Moreover, the launch of subsequent solutions within the Shield family will also increase our addressable market, further fueling our growth.”

Third Quarter Financial Results

Revenue for the third quarter 2020 was $1.6 million, compared to $3.9 million in the third quarter 2019 and $1.7 million for the second quarter 2020.

Gross profit margin was 59 percent of revenue in the third quarter of 2020, compared to 62 percent in the third quarter 2019 and 61 percent in the second quarter 2020.

INTRUSION’s third quarter 2020 operating expenses were $2.3 million, compared to $0.9 million in the third quarter 2019 and $1.7 million in the second quarter 2020.

INTRUSION’s net loss was $1.4 million in the third quarter 2020, compared to net income of $1.5 million in the third quarter 2019 and a net loss of $0.7 million in the second quarter 2020.

As of September 30, 2020, INTRUSION reported cash, cash equivalents and accounts receivables of $2.5 million. Subsequent to quarter end, INTRUSION raised $18.1 million in net proceeds from a follow-on offering of 3.6 million shares of its common stock. The net proceeds reflect 2.5 million shares offered by the Company, including the underwriter’s exercised option to purchase an additional 465,000 shares.

Conference Call

Intrusion’s management will host a conference call today at 4:00 P.M. CST. Interested investors can access the call at 1-833-366-0416 or +1-236-712-2506 for international callers and provide the following Conference ID: 5795593. For those unable to participate in the live conference call, a replay will be accessible beginning tonight at 7:00 P.M. CST until November 19, 2020 by calling 1-800-585-8367 or +1-416-621-4642 for international callers. At the replay prompt, enter conference identification number 5795593. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.

About INTRUSION Inc.

I
NTRUSION Inc. is a global provider of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products. INTRUSION’s solution families include Shield™, a combination of plug-n-play hardware, software, global data, and real-time Artificial Intelligence (AI) services that provide organizations with the most robust cybersecurity defense possible, TraceCop™ for identity discovery and disclosure, and Savant™ for network data mining and advanced persistent threat detection. INTRUSION’s solutions help protect critical information assets by quickly detecting, protecting, analyzing and reporting attacks or misuse of classified, private and regulated information for government and enterprise networks. For more information, please visit www.intrusion.com.

This release may contain certain forward-looking statements, which reflect management’s expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties.
Such statements include, without limitations, statements regarding future revenue growth and profitability, the difficulties in forecasting future sales caused by current economic and market conditions, the effects of sales and implementation cycles for our products on our quarterly results and difficulties in accurately estimating market growth, uncertainties regarding future government and corporate spending on information security products, spending patterns of, and appropriations to, U.S. government departments, statements about our new INTRUSION Shield solution and its success and future market acceptance, as well as other statements. These statements are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. The factors that could cause actual results to differ materially from expectations are detailed in the Company’s most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.”

Company Contact

Julia Kramer, VP Marketing
[email protected]
P: 972-301-3635

Investor Relations Contact

Joel Achramowicz
[email protected]
P: (415) 845-9964

 

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except par value amounts)

		September 30,				December 31,
		2020				2019
ASSETS
Current Assets
Cash and cash equivalents		$	1,505			$	3,334
Accounts receivable		1,030					1,556
Prepaid expenses		647					152
Total current assets		3,182					5052
Noncurrent Assets
Property and equipment, net		356					335
Finance leases right-of-use asset, net		30					62
Operating leases right-of-use asset, net		1,160					1,348
Other assets		57					38
Total noncurrent assets		1,603					1,783
TOTAL ASSETS		$	4,785			$	6,835

LIABILITIES AND EQUITY (DEFICIT)

Current Liabilities
Accounts payable and accrued expenses		$	1,420				$	1,080
Dividends payable		—					20
Finance leases liability, current portion		31					43
Operating leases liability, current portion		295					284
PPP loan payable, current portion		392					—
Deferred revenue		58					516
Total current liabilities		2,196					1,943
Finance leases liability, noncurrent portion		1					21
PPP loan payable, noncurrent portion		239					—
Operating lease liability, noncurrent portion		1,095					1,315
Total noncurrent liabilities		1,335					1,336
Stockholders’ Equity:
Preferred stock, $.01 par value:
Authorized shares – 5,000
Series 1 shares issued and outstanding – 200 in 2019
Liquidation preference of $1,013 in 2019		—					707
Series 2 shares issued and outstanding – 460 in 2019 Liquidation preference of $1,155 in 2019		—					724
Series 3 shares issued and outstanding – 289 in 2019 Liquidation preference of $634 in 2019		—					412
Common stock, $.01 par value:
Authorized shares – 80,000
Issued shares – 14,939 in 2020 and 13,552 in 2019 Outstanding shares – 14,929 in 2020 and 13,542 in 2019		149					136
Common stock held in treasury, at cost – 10 shares		(362			)		(362			)
Additional paid-in capital		58,877					56,759
Accumulated deficit		(57,367			)		(54,777			)
Accumulated other comprehensive loss		(43			)		(43			)
Total stockholders’ equity		1,254					3,556
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	4,785				$	6,835

INTRUSION INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

		Three Months Ended September 30,									N i ne Months Ended September 30,
		20 20				201 9					20 20					201 9
Revenue		$		1,588		$	3,860				$			5,039		$	11,071
Cost of revenue		652				1,465					2,050					4,339
Gross profit		936				2,395					2,989					6,732
Operating expenses:
Sales and marketing		885				356					1,880					813
Research and development		1,081				297					2,741					775
General and administrative		377				277					962					930
Operating income (loss)		(1,407			)	1,465					(2,594				)	4,214
Interest expense		(2			)	(1				)	(4				)	(45		)
Interest income		—				—					8					—
Net income (loss)		$	(1,409		)	$		1,464			$		(2,590		)	$	4,169
Preferred stock dividends accrued		(13			)	(35				)	(79				)	(104		)
Net income (loss) attributable to common stockholders		$	(1,422		)	$		1,429			$		(2,669		)	$	4,065
Net income (loss) per share attributable to common stockholders:
Basic		$		(0.10	)	$		0.11			$		(0.19		)	$	0.30
Diluted		$		(0.10	)	$		0.09			$		(0.19		)	$	0.27
Weighted average common shares outstanding:
Basic		14,450				13,523					13,981					13,466
Diluted		14,450				15,371					13,981					15,314

 

ATHENS, Greece, Nov. 12, 2020 (GLOBE NEWSWIRE) — Dynagas LNG Partners LP (NYSE: “DLNG”) (“Dynagas Partners” or the “Partnership”), an owner and operator of liquefied natural gas (“LNG”) carriers, today announced its results for the three and nine months ended September 30, 2020.

Third Quarter Highlights:

• Net income and earnings per common unit of $10.0 million and $0.20, respectively;
• Adjusted Net Income⁽¹⁾ of $10.2 million and Adjusted Earnings per common unit of $0.21;
• Adjusted EBITDA⁽¹⁾ of $24.2 million;
• 100% fleet utilization;
• Declared and paid cash distribution of $0.5625 per unit on its Series A Preferred Units (NYSE: “DLNG PR A”) for the period from May 12, 2020 to August 11, 2020 and $0.546875 per unit on the Series B Preferred Units (NYSE: “DLNG PR B”) for the period from May 22, 2020 to August 21, 2020; and
• Entered into an amended and restated ATM Sales Agreement (the “A&R Sales Agreement”), for the offer and sale of common units representing limited partnership interests, having an aggregate offering price of up to $30.0 million (the “Current ATM Program”). Upon entry into the A&R Sales Agreement, the Partnership terminated its prior at-the-market program established in July of 2020 (the “Prior ATM Program”). At the time of such termination, $0.4 million of the Partnership’s common units out of an aggregate of $30.0 million of its common units were sold pursuant to the Prior ATM Program.

Subsequent Events:

• Declared a quarterly cash distribution of $0.5625 on the Partnership’s Series A Preferred Units for the period from August 12, 2020 to November 11, 2020, which was paid on November 12, 2020; and
• Declared a quarterly cash distribution of $0.546875 on the Partnership’s Series B Preferred Units for the period from August 22, 2020 to November 21, 2020, which is payable on November 23, 2020.

 ⁽¹⁾ Adjusted Net Income, Adjusted Earnings per common unit, and Adjusted EBITDA are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP and other related information.

CEO Commentary:

We are pleased to report the results for the three months and nine months ended September 30, 2020. All six LNG carriers in our fleet are operating under their respective long-term charters with international gas producers with an average remaining contract term of 7.9 years. Our estimated contracted revenue backlog is approximately $1.15 billion. Absent any unforeseen events or unscheduled dry dockings, our fleet is contracted to be employed 100% for 2020, 92% for 2021 and 83% for 2022 through and including 2025. The earliest contracted re-delivery date for our six LNG carriers is in the third quarter of 2021(the Arctic Aurora), with the next carrier (the Clean Energy) becoming available for re-chartering in the first quarter of 2026 at the earliest.

For the third quarter of 2020, we reported Net Income of $10.0 million and Adjusted EBITDA of $24.2 million. This improved performance is attributable to an increase in voyage revenues and a decrease in interest and finance costs compared to the corresponding period in 2019, coupled with stable vessel operating expenses during this period.

Despite the ongoing operational challenges the industry is facing as a result of the COVID-19 outbreak, we are pleased to report 100% utilization for our fleet for the third quarter of 2020. The ongoing impact of the COVID-19 outbreak has been operationally manageable due to our manager’s COVID-19 response plan which has been implemented with the support of our seafarers, charterers and employees, for which we are grateful.

Going forward, we intend to continue our strategy of using our cash flow generation to deleverage our balance sheet and reinforce our liquidity so as to build equity value over time. This, we believe, will enhance our ability to pursue future growth initiatives.

Financial Results Overview:

	Three Months Ended							Nine Months Ended
(U.S. dollars in thousands, except per unit data)		September 30, 2020 (unaudited)			September 30, 2019 (unaudited)				September 30, 2020 (unaudited)			September 30, 2019 (unaudited)
Voyage revenues	$	34,346		$	34,364			$	102,730		$	96,584
Net Income / (Loss)	$	10,015		$	(4,740	)		$	23,409		$	(1,916	)
Adjusted Net Income (1)	$	10,203		$	2,775			$	27,161		$	5,277
Operating income	$	16,149		$	16,061			$	48,018		$	43,963
Adjusted EBITDA(1)	$	24,221		$	23,775			$	72,091		$	66,366
Earnings/ (Loss) per common unit	$	0.20		$	(0.21	)		$	0.41		$	(0.30	)
Adjusted Earnings/ (Loss) per common unit (1)	$	0.21		$	—			$	0.52		$	(0.10	)

⁽¹⁾ Adjusted Net Income, Adjusted EBITDA, and Adjusted Earnings/(Loss) per common unit are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

Three Months Ended September 30, 2020 and 2019 Financial Results

Net Income for the three months ended September 30, 2020 was $10.0 million as compared to a Net Loss of $4.7 million in the corresponding period of 2019, which represents an increase of $14.7 million, or 312.8%. This increase was mainly attributable to a decrease in interest and finance costs in the three months ended September 30, 2020, as further analyzed below.

Adjusted Net Income for the three months ended September 30, 2020 was $10.2 million compared to $2.8 million in the corresponding period of 2019, representing a net increase of $7.4 million or 264.3%.

Voyage revenues for the three-month periods ended September 30, 2020 and 2019 were $34.3 million and $34.4 million, respectively.

The Partnership reported average daily hire gross of commissions⁽¹⁾ of approximately $62,500 per day per vessel in the three-month period ended September 30, 2020, compared to approximately $62,200 per day per vessel in the corresponding period of 2019. During the three-month periods ended September 30, 2020 and September 30, 2019, the Partnership’s vessels operated at 100% and 99% utilization, respectively.

Vessel operating expenses were $7.2 million, which corresponds to a daily rate per vessel of $13,074 in the three-month period ended September 30, 2020, as compared to $7.5 million, or a daily rate per vessel of $13,531 in the corresponding period of 2019.

Adjusted EBITDA for the three months ended September 30, 2020 was $24.2 million, as compared to $23.8 million for the corresponding period of 2019, which corresponds to an increase of $0.4 million, or 1.7%.

Interest and finance costs, net, were $6.0 million in the three months ended September 30, 2020 as compared to $20.9 million in the corresponding period of 2019, which represents a decrease of $14.9 million, or 71.3%. The decrease in interest and finance costs is due to (i) the lower weighted average interest rate, (ii) the reduction in the average interest bearing debt and (iii) the decrease in deferred loan fees as a result of a $7.5 million one-time write-off of deferred loan fees included in the corresponding period of 2019 in connection with the early prepayment of the $480 million Senior Secured Term Loan facility in September 2019.

For the three months ended September 30, 2020, the Partnership reported Earnings per common unit and Adjusted Earnings per common unit, basic and diluted, of $0.20 and $0.21 respectively, after taking into account the distributions relating to the Series A Preferred Units and the Series B Preferred Units on the Partnership’s Net income/Adjusted Net Income. Earnings per common unit and Adjusted Earnings per common unit, basic and diluted, are calculated on the basis of a weighted average number of 35,593,477 common units outstanding during the period and in the case of Adjusted Earnings per common unit after reflecting the impact of the non-cash items presented in Appendix B of this press release.

Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings/(Loss) per common unit are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

Amounts relating to variations in period–on–period comparisons shown in this section are derived from the condensed financials presented below.

⁽¹⁾ Average daily hire gross of commissions represents voyage revenue excluding the non-cash time charter deferred revenue amortization, divided by the Available Days in the Partnership’s fleet as described in Appendix B.

Liquidity/ Financing/ Cash Flow Coverage

During the three months ended September 30, 2020, the Partnership generated net cash from operating activities of $27.6 million as compared to $13.6 million in the corresponding period of 2019, which represents an increase of $14.0 million, or 102.9%.

As of September 30, 2020, the Partnership reported total cash of $76.0 million (including $50.0 million of restricted cash). The Partnership’s outstanding indebtedness as of September 30, 2020 under the $675.0 Million Credit Facility amounted to $627.0 million, gross of unamortized deferred loan fees and including $48.0 million, which is repayable within one year.

In July 2020, the Partnership, under the Prior ATM program, issued and sold 122,580 common units at a weighted average price of $3.665 per unit, resulting in gross proceeds of $0.4 million and net proceeds of $0.3 million. No issuances of common units under the Current ATM program were made during the three months ended September 30, 2020.

As of September 30, 2020, the Partnership had unused availability of $30.0 million under its interest free $30.0 million revolving credit facility with its Sponsor, or the $30.0 Million Revolving Credit Facility, which was extended on November 14, 2018, and is available to the Partnership at any time until November 2023.

Vessel Employment

As of November 12, 2020, the Partnership had estimated contracted time charter coverage⁽¹⁾ for 100% of its fleet estimated Available Days (as defined in Appendix B) for 2020, 92% of its fleet estimated Available Days for 2021 and 83% of its fleet estimated Available Days for 2022.

As of the same date, the Partnership’s contracted revenue backlog estimate ^{(2) (3)} was $1.15 billion, with an average remaining contract term of 7.9 years.                      

⁽¹⁾ Time charter coverage for the Partnership’s fleet is calculated by dividing the fleet contracted days on the basis of the earliest estimated delivery and redelivery dates prescribed in the Partnership’s current time charter contracts, net of scheduled class survey repairs by the number of expected Available Days during that period.

⁽²⁾ The Partnership calculates its estimated contracted revenue backlog by multiplying the contractual daily hire rate by the expected number of days committed under the contracts (assuming earliest delivery and redelivery and excluding options to extend), assuming full utilization. The actual amount of revenues earned and the actual periods during which revenues are earned may differ from the amounts and periods disclosed due to, for example, dry-docking and/or special survey downtime, maintenance projects, off-hire downtime and other factors that result in lower revenues than the Partnership’s average contract backlog per day.

⁽³⁾ $0.16 billion of the revenue backlog estimate relates to the estimated portion of the hire contained in certain time charter contracts with Yamal which represents the operating expenses of the respective vessels and is subject to yearly adjustments on the basis of the actual operating costs incurred within each year. The actual amount of revenues earned in respect of such variable hire rate may therefore differ from the amounts included in the revenue backlog estimate due to the yearly variations in the respective vessels’ operating costs.

Conference Call and Webcast:

As announced, the Partnership’s management team will host a conference call on Friday, November 13, 2020 at 10:00 a.m. Eastern Time to discuss the Partnership’s financial results.

Conference Call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: +1 (877) 553-9962 (US Toll Free Dial In), 0 (808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928592(Standard International Dial In). Please quote “Dynagas.”

A telephonic replay of the conference call will be available until November 19, 2020, by dialing +1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In) and the access code required for the replay is: 59711562#.

Audio Webcast – Slides Presentation:

There will be a live and then archived audio webcast of the conference call, via the internet through the Dynagas LNG Partners website www.dynagaspartners.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

The slide presentation on the third quarter ended September 30, 2020 financial results will be available in PDF format 10 minutes prior to the conference call and webcast, accessible on the company’s website www.dynagaspartners.com on the webcast page. Participants to the webcast can download the PDF presentation. None of the information contained in or that forms a part of the Partnership’s conference calls, website or audio webcasts is part of this release.

About Dynagas LNG Partners LP

Dynagas LNG Partners LP. (NYSE: DLNG) is a master limited partnership which owns and operates liquefied natural gas (LNG) carriers employed on multi-year charters. The Partnership’s current fleet consists of six LNG carriers, with aggregate carrying capacity of approximately 914,000 cubic meters.

Visit the Partnership’s website at www.dynagaspartners.com.

Contact Information:

Dynagas LNG Partners LP
Attention: Michael Gregos
Tel. +30 210 8917960
Email: [email protected]  

Investor Relations / Financial Media:

Nicolas Bornozis
Markella Kara
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
E-mail: [email protected]

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Partnership desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “project”, “will”, “may,” “should,” “expect,” “expected,” “pending” and similar expressions identify forward-looking statements. These forward-looking are not intended to give any assurance as to future results and should not be relied upon.

The forward-looking statements in this press release are based upon various assumptions and estimates, many of which are based, in turn, upon further assumptions, including without limitation, examination by the Partnership’s management of historical operating trends, data contained in its records and other data available from third parties. Although the Partnership believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Partnership’s control, the Partnership cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Partnership’s view, could cause actual results to differ materially from those discussed, expressed or implied, in the forward-looking statements include, but are not limited to, the strength of world economies and currency fluctuations, general market conditions, including fluctuations in charter  rates, ownership days, and  vessel  values,  changes  in  supply and demand  for  Liquefied  Natural  Gas  (LNG)  shipping capacity, changes in the Partnership’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Partnership’s vessels, availability of financing and refinancing, changes in governmental laws, rules and regulations or actions taken by regulatory authorities,  economic, regulatory, political and governmental conditions that affect the shipping and the LNG industry, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns, instances of off-hires, the length and severity of the COVID-19 outbreak, the impact of public health threats and outbreaks of other highly communicable diseases, the impact of the expected discontinuance of LIBOR after 2021 on interest rates of our debt that reference LIBOR, the amount of cash available for distribution, and other factors. Please see the Partnership’s filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Partnership disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

APPENDIX A

DYNAGAS LNG PARTNERS LP

Condensed Consolidated Statements of Income

(In thousands of U.S. dollars except units and per unit data)		Three Months Ended September 30,						Nine Months Ended September 30,
		2020 (unaudited)			2019 (unaudited)			2020 (unaudited)			2019 (unaudited)
REVENUES
Voyage revenues	$	34,346		$	34,364		$	102,730		$	96,584
EXPENSES
Voyage expenses (including related party)		(695	)		(803	)		(2,305	)		(1,934	)
Vessel operating expenses		(7,217	)		(7,469	)		(21,687	)		(21,286	)
General and administrative expenses (including related party)		(596	)		(737	)		(1,861	)		(1,823	)
Management fees -related party		(1,697	)		(1,648	)		(5,055	)		(4,890	)
Depreciation		(7,992	)		(7,646	)		(23,804	)		(22,688	)
Operating income		16,149			16,061			48,018			43,963
Interest and finance costs, net		(6,026	)		(20,851	)		(21,126	)		(45,898	)
Loss on derivative instruments		(5	)		—			(3,357	)		—
Other, net		(103	)		50			(126	)		19
Net income / (Loss)	$	10,015		$	(4,740	)	$	23,409		$	(1,916	)
Earnings/ (loss) per common unit (basic and diluted)	$	0.20		$	(0.21	)	$	0.41		$	(0.30	)
Weighted average number of units outstanding, basic and diluted:
Common units		35,593,477			35,490,000			35,524,744			35,490,000

DYNAGAS LNG PARTNERS LP

Consolidated Condensed Balance Sheets

(Expressed in thousands of U.S. Dollars—except for unit data)

		September 30, 2020 (unaudited)				December 31, 2019 (audited)
ASSETS:
Cash and cash equivalents and restricted cash (current and non-current)	$	76,046			$	66,206
Due from related party (current and non-current)		1,350				1,350
Other current assets		2,521				1,966
Vessels, net		892,893				916,697
Other non-current assets		2,666				2,968
Total assets	$	975,476			$	989,187
LIABILITIES
Total long-term debt, net of deferred financing costs	$	619,068			$	653,154
Total other current liabilities		19,567				16,951
Derivative financial instrument (current and non-current)		3,181				—
Due to related party (current and non-current)		1,747				2,202
Total other non-current liabilities		3,193				3,173
Total liabilities	$	646,756			$	675,480
PARTNERS’ EQUITY
General partner  (35,526 units issued and outstanding as at September 30, 2020 and December 31, 2019)		(13	)			(28	)
Common unitholders (35,612,580 units issued and outstanding as at September 30, 2020 and 35,490,000 units issued and outstanding as at December 31, 2019)		202,019				187,021
Series A Preferred unitholders: (3,000,000 units issued and outstanding as at September 30, 2020 and December 31, 2019)		73,216				73,216
Series B Preferred unitholders: (2,200,000 units issued and outstanding as at September 30, 2020 and December 31, 2019)		53,498				53,498
Total partners’ equity	$	328,720			$	313,707
Total liabilities and partners’ equity	$	975,476			$	989,187

DYNAGAS LNG PARTNERS LP

Consolidated Statements of Cash Flows

(Expressed in thousands of U.S. Dollars)

		Three Months Ended September 30,						Nine Months Ended September 30,
		2020			2019			2020			2019
Cash flows from Operating Activities:
Net income / (Loss):	$	10,015		$	(4,740	)	$	23,409		$	(1,916	)
Adjustments to reconcile net income / (loss) to net cash provided by operating activities:
Depreciation		7,992			7,646			23,804			22,688
Amortization and write-off of deferred financing fees		626			8,316			1,913			9,927
Deferred revenue amortization		129			(36	)		233			(430	)
Amortization of deferred charges		54			54			162			126
Loss on derivative financial instrument		5			—			3,357			—
Changes in operating assets and liabilities:
Trade accounts receivable		355			—			(222	)		48
Prepayments and other assets		196			165			(285	)		(498	)
Inventories		19			1,222			(48	)		421
Due from/ to related parties		3,275			(749	)		(455	)		(274	)
Deferred charges		108			38			(73	)		(999	)
Trade accounts payable		(54	)		(834	)		(988	)		(449	)
Accrued liabilities		189			128			(122	)		173
Unearned revenue		4,678			2,350			3,738			888
Net cash provided by Operating Activities		27,587			13,560			54,423			29,705
Cash flows from Investing Activities
Vessel acquisitions and other additions to vessels’ cost		—			—			—			—
Net cash used in Investing Activities		—			—			—			—
Cash flows from Financing Activities:
Issuance of common units, net of issuance costs		276			—			276			—
Payment of securities registration and other filing costs		(17	)		—			(17	)		(139	)
Distributions declared and paid		(2,891	)		(2,890	)		(8,672	)		(13,501	)
Proceeds from long-term debt		—			675,000			—			675,000
Repayment of long-term debt		(12,000	)		(470,400	)		(36,000	)		(472,800	)
Payment of derivative instruments		(170	)		—			(170	)		—
Payment of deferred finance fees		—			(10,558	)		—			(10,558	)
Net cash used in Financing Activities		(14,802	)		191,152			(44,583	)		178,002
Net increase in cash and cash equivalents and restricted cash		12,785			204,712			9,840			207,707
Cash and cash equivalents and restricted cash at beginning of the period		63,261			112,912			66,206			109,917
Cash and cash equivalents and restricted cash at end of the period	$	76,046		$	317,624		$	76,046		$	317,624

APPENDIX B

Fleet statistics

		Three Months Ended September 30,						Nine Months Ended September 30,
(expressed in United states dollars except for operational data)		2020			2019			2020			2019
Number of vessels at the end of period		6			6			6			6
Average number of vessels in the period (1)		6			6			6			6
Calendar Days (2)		552.0			552.0			1,644.0			1,638.0
Available Days (3)		552.0			552.0			1,644.0			1,638.0
Revenue earning days (4)		552.0			548.7			1,638.7			1,604.3
Time Charter Equivalent (5)	$	60,962		$	60,799		$	61,086		$	57,784
Fleet Utilization (4)		100	%		99	%		99.7	%		98	%
Vessel daily operating expenses (6)	$	13,074		$	13,531		$	13,192		$	12,995

(1)	Represents the number of vessels that constituted the Partnership’s fleet for the relevant period, as measured by the sum of the number of days that each vessel was a part of the Partnership’s fleet during the period divided by the number of Calendar Days (defined below) in the period.
(2)	“Calendar Days” are the total days that the Partnership possessed the vessels in its fleet for the relevant period.
(3)	“Available Days” are the total number of Calendar Days that the Partnership’s vessels were in its possession during a period, less the total number of scheduled off-hire days during the period associated with major repairs, or dry-dockings.
(4)	The Partnership calculates fleet utilization by dividing the number of its Revenue earning days, which are the total number of Available Days of the Partnership’s vessels net of unscheduled off-hire days (which do not include positioning/ repositioning days for which compensation has been received) during a period by the number of Available Days. The shipping industry uses fleet utilization to measure a company’s efficiency in finding employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs but excluding scheduled off-hires for vessel upgrades, dry-dockings or special or intermediate surveys.
(5)	Time charter equivalent rate (“TCE rate”), is a measure of the average daily revenue performance of a vessel. For time charters, this is calculated by dividing total voyage revenues, less any voyage expenses, by the number of Available Days during that period. Under a time charter, the charterer pays substantially all vessel voyage related expenses. However, the Partnership may incur voyage related expenses when positioning or repositioning vessels before or after the period of a time charter, during periods of commercial waiting time or while off-hire during dry-docking or due to other unforeseen circumstances. The TCE rate is not a measure of financial performance under U.S. GAAP (non-GAAP measure), and should not be considered as an alternative to voyage revenues, the most directly comparable GAAP measure, or any other measure of financial performance presented in accordance with U.S. GAAP. However, the TCE rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in a company’s performance and to assist the Partnership’s management in making decisions regarding the deployment and use of the Partnership’s vessels and in evaluating their financial performance. The Partnership’s calculation of TCE rates may not be comparable to that reported by other companies. The following table reflects the calculation of the Partnership’s TCE rates for the three and nine months ended September 30, 2020 and 2019 (amounts in thousands of U.S. dollars, except for TCE rates, which are expressed in U.S. dollars, and Available Days):

		Three Months Ended September 30,						Nine Months Ended September 30,
		2020			2019			2020			2019
(In thousands of U.S. dollars, except for Available Days and TCE rate)
Voyage revenues	$	34,346		$	34,364		$	102,730		$	96,584
Voyage Expenses *		(695	)		(803	)		(2,305	)		(1,934	)
Time Charter equivalent revenues	$	33,651		$	33,561		$	100,425		$	94,650
Available Days		552.0			552.0			1,644.0			1,638.0
Time charter equivalent (TCE) rate	$	60,962		$	60,799		$	61,086		$	57,784

*Voyage expenses include commissions of 1.25% paid to Dynagas Ltd., the Partnership’s Manager, and third party ship brokers, when defined in the charter parties, bunkers, port expenses and other minor voyage expenses.

(6)	Daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, spares and repairs and flag taxes, are calculated by dividing vessel operating expenses by fleet Calendar Days for the relevant time period.

Reconciliation of U.S. GAAP Financial Information to Non-GAAP Financial Information

Reconciliation of Net Income to Adjusted EBITDA

		Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands of U.S.  dollars)		2020			2019				2020			2019
Net income / (Loss)	$	10,015		$	(4,740	)		$	23,409		$	(1,916	)
Net interest and finance costs (1)		6,026			20,851				21,126			45,898
Depreciation		7,992			7,646				23,804			22,688
Loss on derivative financial instrument		5			—				3,357			—
Amortization of deferred revenue		129			(36	)			233			(430	)
Amortization of deferred charges		54			54				162			126
Adjusted EBITDA	$	24,221		$	23,775			$	72,091		$	66,366

⁽¹⁾

Includes interest and finance costs and interest income, if any.

The Partnership defines Adjusted EBITDA as earnings before interest and finance costs, net of interest income (if any), gains/losses on derivative financial instruments, taxes (when incurred), depreciation and amortization (when incurred), class survey costs and significant non-recurring items (if any). Adjusted EBITDA is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess the Partnership’s operating performance.

The Partnership believes that Adjusted EBITDA assists its management and investors by providing useful information that increases the ability to compare the Partnership’s operating performance from period to period and against that of other companies in its industry that provide Adjusted EBITDA information. This increased comparability is achieved by excluding the potentially disparate effects between periods or against companies of interest, other financial items, depreciation and amortization and taxes, which items are affected by various and possible changes in financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. The Partnership believes that including Adjusted EBITDA as a measure of operating performance benefits investors in (a) selecting between investing in the Partnership and other investment alternatives and (b) monitoring the Partnership’s ongoing financial and operational strength.

Adjusted EBITDA is not intended to and does not purport to represent cash flows for the period, nor is it presented as an alternative to operating income. Further, Adjusted EBITDA is not a measure of financial performance under U.S. GAAP and does not represent and should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance presented in accordance with U.S. GAAP. Adjusted EBITDA excludes some, but not all, items that affect net income and these measures may vary among other companies. Therefore, Adjusted EBITDA, as presented above, may not be comparable to similarly titled measures of other businesses because they may be defined differently by those other businesses. It should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP. Any Non-GAAP measures should be viewed as supplemental to, and should not be considered as alternatives to, GAAP measures including, but not limited to net earnings (loss), operating profit (loss), cash flow from operating, investing and financing activities, or any other measure of financial performance or liquidity presented in accordance with GAAP.

Reconciliation of Net Income to Adjusted Net Income available to common unitholders and Adjusted Earnings per common unit

	Three Months Ended September 30,									Nine Months Ended September 30,
(In thousands of U.S.  dollars except for units and per unit data)		2020				2019					2020				2019
Net Income / (Loss)	$	10,015			$	(4,740	)			$	23,409			$	(1,916	)
Non-cash expense from accelerated amortization of deferred loan fees		—				7,497					—				7,497
Amortization of deferred revenue		129				(36	)				233				(430	)
Amortization of deferred charges		54				54					162				126
Loss on derivative financial instrument		5				—					3,357				—
Adjusted Net Income	$	10,203			$	2,775				$	27,161			$	5,277
Less: Adjusted Net Income attributable to preferred unitholders and general partner		(2,898	)			(2,891	)				(8,690	)			(8,668	)
Common unitholders’ interest in Adjusted Net Income/(Loss)	$	7,305			$	(116	)			$	18,471			$	(3,391	)
Weighted average number of common units outstanding, basic and diluted:		35,593,477				35,490,000					35,524,744				35,490,000
Adjusted Earnings/(Loss) per common unit, basic and diluted	$	0.21			$	—				$	0.52			$	(0.10	)

Adjusted Net Income represents net income before non-recurring expenses (if any), charter hire amortization related to time charters with escalating time charter rates, amortization of fair value of acquired time charters and changes in the fair value of derivative financial instruments. Adjusted Net Income available to common unitholders represents the common unitholders interest in Adjusted Net Income for each period presented. Adjusted Earnings per common unit represents Adjusted Net Income attributable to common unitholders divided by the weighted average common units outstanding during each period presented.

Adjusted Net Income, Adjusted Net Income per common unit and Adjusted Earnings per common unit, basic and diluted, are not recognized measures under U.S. GAAP and should not be regarded as substitutes for net income and earnings per unit, basic and diluted. The    Partnership’s definitions of Adjusted Net Income, Adjusted Net Income per common unit and Adjusted Earnings per common unit, basic and diluted, may not be the same at those reported by other companies in the shipping industry or other industries. The Partnership believes that the presentation of Adjusted Net Income and Adjusted Earnings per unit available to common unitholders are useful to investors because these measures facilitate the comparability and the evaluation of companies in the Partnership’s industry. In addition, the Partnership believes that Adjusted Net Income is useful in evaluating its operating performance compared to that of other companies in the Partnership’s industry because the calculation of Adjusted Net Income generally eliminates the accounting effects of items which may vary for different companies for reasons unrelated to overall operating performance. The Partnership’s presentation of Adjusted Net Income available to common unitholders and Adjusted Earnings per common unit does not imply, and should not be construed as an inference, that its future results will be unaffected by unusual or non-recurring items and should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP.

• Revenue growth reflects rebound of inpatient colonoscopy volumes in Q3 and increased demand for the Pure-Vu system from early adopter hospitals

• Q3 Pure-Vu-enabled procedures increased by more than 50% above prior quarterly average
• First major metropolitan health system collaboration intends to utilize Pure-Vu as new standard for facilitating inpatient colonoscopy.

FORT LAUDERDALE, Fla., Nov. 12, 2020 (GLOBE NEWSWIRE) — Motus GI Holdings, Inc., (NASDAQ: MOTS) (“Motus GI” or the “Company”), a medical technology company providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions, today reported its financial results for the third quarter ended September 30, 2020, and provided a corporate update.

“In Q3 there was a positive turn in our commercial momentum following the headwinds we faced during the Covid-19 pandemic. I am pleased that we continue to execute our strategy of getting our Pure-Vu system into the hands of nearly two dozen of the most prominent healthcare institutions in the United States. During Q3, we saw these hospitals have ramped up inpatient colonoscopy volumes to approximately 80-90% of pre-pandemic levels. The Motus GI team has remained actively engaged with our early adopter accounts and we are resuming the trajectory we started in Q1, prior to the Covid-19 pandemic. We are seeing positive trends in utilization. Moving forward, we believe we can start to achieve sustainable procedure volumes at target accounts, and we expect to see a continuation of our progress and momentum into the fourth quarter,” stated Tim Moran, Chief Executive Officer of Motus GI.

Progress Updates

Since the first commercial placement of a Pure-Vu® System in October 2019, Motus GI has focused its U.S. sales efforts on early adopter hospitals and larger hospital networks. During this time, Motus GI has placed the Pure-Vu® System in more than 20 of these targeted hospitals. In Q3, the Company initiated new Pure-Vu evaluations at NYU Langone, Ascension – St. John Hospital, and Indiana University, while also resuming activities at several existing sites, including Northwestern Memorial Hospital, who put their new product evaluations on hold while managing the Covid-19 pandemic.

As part of the strategy to drive sustainable and growing Pure-Vu single-use sleeve volumes, the Company will collaborate with major hospitals to develop and implement protocols for inpatient colonoscopies that include the Pure-Vu® System. Last week, the Company announced its first major collaboration with NYU Langone Health on its protocol to include the Pure-Vu System for the effective management of inpatient colonoscopy. The Company believes these protocols can improve patient care and hospital economics. In addition, the Company believes these protocols will likely drive expanded adoption of the Pure-Vu® System among these hospitals over time.

The Company has successfully published several clinical hospital case studies in conjunction with Key Opinion Leaders (KOL) from hospitals currently using the Pure-Vu® System for marketing and training purposes. Motus GI has developed a series of podcasts and KOL webinars to provide broad access to these examples of the impact the Pure-Vu® System can provide as it relates to positive clinical and economic outcomes for treating patients with poorly prepped colons. The podcast series is available at the MotusGI YouTube channel under Pure-Vu Review (Click Here).

In the third quarter of 2020, the Company received notice that the China National Intellectual Property Administration (“CNIPA”) issued a patent covering the method of mounting Motus GI’s proprietary sensing technology and enhanced suction systems with the distal end of a colonoscope. This patent further protects the Company’s flagship product – the Pure-Vu® System – in this key potential market. The Company has now more than 29 granted patents and 27 pending patents protecting the Pure-Vu® System.

Financial Results for the Quarter Ended September 30, 2020

The Company reported revenue of approximately $33,000 for the third quarter of 2020, compared to approximately $3,000 for the same period last year. Revenue for the third quarter is from new account and site reorder sales of Pure-Vu single-use sleeves.

For the three months ended September 30, 2020, the Company reported a net loss of approximately $3.9 million, or a net loss per diluted share of $0.13, compared to $5.2 million, or a net loss per diluted share of $0.18, for the same period last year. During the third quarter, net cash used in operating activities and for the purchase of fixed assets was $2.7 million as compared to $4.8 million for the same period of 2019.  These decreases were primarily attributable to the Company’s cost-cutting measures that were announced on March 30, 2020. These measures reduced the Company’s quarterly cash burn by approximately 50% compared to previously forecasted rates for the second half of 2020.

The Company reported approximately $23.7 million in cash, cash equivalents and investments as of September 30, 2020, compared to $28.7 million as of December 31, 2019. In September 2020, the Company sold common stock and other equity securities which raised net proceeds of approximately $9.2 million.

Conference Call:

The Motus GI management team has scheduled a conference call for today, November 12^th, at 4:30 p.m. ET to discuss these results. To access the conference call, investors are invited to dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (International). The conference ID number is 13711588. A live audio webcast can be accessed by visiting the investor relations section of the Company’s website, www.motusgi.com or http://public.viavid.com/index.php?id=141815. A replay of the webcast will be archived on the Motus GI website for 90 days following the event.

About Motus GI

Motus GI Holdings, Inc. is a medical technology company, with subsidiaries in the U.S. and Israel, providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions.

For more information, visit www.motusgi.com and connect with the Company on Twitter, LinkedIn and Facebook.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements are based on the Company’s current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “predict,” “project,” “should,” “would” and similar expressions and the negatives of those terms, including without limitation, risks related to the Company’s cost reduction plan, the cost savings and the cash expenses related to the implementation of the plan, risks related to the continued impact of the COVID-19 pandemic, risks inherent in the development and commercialization of potential products, uncertainty in the timing and results of clinical trials or regulatory approvals, maintenance of intellectual property rights or other risks discussed in the Company’s Form 10-K filed on March 30, 2020, and its other filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Contact:


Bob Yedid
LifeSci Advisors
(646) 597-6989
[email protected] 

Motus GI Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts)
		September 30,				December 31,
		2020				2019
		(unaudited)				(*)
ASSETS
Current assets
Cash and cash equivalents		$	23,687			$	20,528
Investments			–				8,203
Accounts receivable			39				65
Inventory			1,295				1,014
Prepaid expenses and other current assets			889				339
Related party receivable			2				18
Total current assets			25,912				30,167
Fixed assets, net			994				1,056
Right-of-use assets			816				1,021
Other non-current assets			13				13
Total assets		$	27,735			$	32,257
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses		$	1,889			$	2,999
Operating lease liabilities – current			236				321
Other current liabilities			413				270
Term debt, net of debt discount of $23 and $246, respectively			7,977				7,754
Total current liabilities			10,515				11,344
Contingent royalty obligation			1,624				1,872
Operating lease liabilities – non-current			597				713
Total liabilities			12,736				13,929
Commitments and contingent liabilities (Note 9)
Shareholders’ equity
Preferred Stock $0.0001 par value; 8,000,000 shares authorized; zero shares issued
and outstanding			–				–
Preferred Series A Stock $0.0001 par value; 2,000,000 shares authorized; zero
shares issued and outstanding			–				–
Common Stock $0.0001 par value; 115,000,000 shares authorized; 32,182,589 and
28,811,087 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively			3				3
Additional paid-in capital			114,319				102,789
Accumulated deficit			(99,323	)			(84,464	)
Total shareholders’ equity			14,999				18,328
Total liabilities and shareholders’ equity		$	27,735			$	32,257
(*)    Derived from audited consolidated financial statements

Motus GI Holdings, Inc. and Subsidiaries  Condensed Consolidated Statements of Comprehensive Loss (unaudited, in thousands, except share and per share amounts)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Revenue		$	33			$	3			$	62			$	8
Cost of revenue			32				62				72				65
Gross profit (loss)			1				(59	)			(10	)			(57	)
Operating expenses:
Research and development			1,160				2,173				4,359				6,706
Sales and marketing			509				1,160				2,954				3,473
General and administrative			2,155				2,028				7,432				7,189
Total operating expenses			3,824				5,361				14,745				17,368
Operating loss			(3,823	)			(5,420	)			(14,755	)			(17,425	)
Gain on change in estimated fair value of contingent royalty obligation			3				127				248				68
Finance income (expense), net			(117	)			95				(348	)			214
Foreign currency gain (loss)			(1	)			3				(4	)			(6	)
Loss before income taxes			(3,938	)			(5,195	)			(14,859	)			(17,149	)
Income tax expense			–				–				–				–
Net loss		$	(3,938	)		$	(5,195	)		$	(14,859	)		$	(17,149	)
Basic and diluted loss per common share		$	(0.13	)		$	(0.18	)		$	(0.51	)		$	(0.72	)
Weighted average number of common shares outstanding, basic and diluted			30,422,265				28,716,213				29,366,154				23,896,843

DALLAS-FORT WORTH, Texas, Nov. 12, 2020 (GLOBE NEWSWIRE) — Monitronics International, Inc. and its subsidiaries (doing business as Brinks Home Security ^TM), (“Brinks Home Security” or the “Company”) (OTC: SCTY) today announced results for the three months ended September 30, 2020.

Third Quarter Key Highlights¹
:

• Net revenue of $130.9 million, up 8.3% year-over- year
• Net loss of $19.2 million, as compared to net income of $673.6 million in the prior year period, which included a one-time $702.8 million gain from restructuring
• Adjusted EBITDA of $68.5 million, up 9.6% year-over-year
• Successful integration of over 110,000 Protect America bulk buy accounts acquired in mid-June 2020
• William Niles named permanent CEO on September 30, 2020

William Niles, Chief Executive Officer of Brinks Home Security, commented, “In the third quarter, we accelerated the execution of our go-forward strategic plan, with the objective of generating profitable accounts, at scale, and retaining for life. Our strategic vision is based on delivering a superior customer experience built around the Brinks Home brand and featuring a suite of premium smart home security products in both the ‘Do It For Me’ and ‘DIY’ categories.  We intend to enhance the customer experience at every touchpoint of the customer journey and improve unit economics by building a strong foundation in data analytics that, we believe, will reduce our subscriber acquisition cost, lower cost to serve and improve retention.”

“To enable this transformation, we have made several key hires across our organization to ensure we have the right leadership to drive a culture of customer centricity and execution. We also continue to take smart actions to manage our cost structure and strengthen our balance sheet. We believe we have a compelling strategic plan that will accelerate profitable growth, generate cash, and improve margins and long-term shareholder value.”

Customer & Attrition Data

The Company has two principal sales channels including its direct-to-consumer sales channel (the “Direct to Consumer Channel” or “DTC”), which offers both Do-It-Yourself and professional installation security solutions and through its exclusive authorized dealer network (the “Dealer Channel”), which provides product and installation services, as well as support to customers.  In addition, from time to time, the Company acquires accounts through negotiated bulk account acquisitions.

Accounts Added

The Company added 17,111 customers in the third quarter of 2020, as compared to 21,228 accounts for the same period in the prior year. Both the Company’s Dealer and the DTC Channels experienced year-over-year declines in customers added. The decline in the Dealer Channel was primarily due to the Company’s election to cease purchasing accounts from two dealers in the fourth quarter of 2019 and restrictions on door-to-door selling and other impacts related to the outbreak of COVID-19. The decline in the DTC Channel production was primarily due to the Company’s election to leverage more profitable organic leads. There were no bulk account acquisitions during the third quarter of 2020 or 2019.

_____________________________
¹ Year-over-year comparisons based on the pro forma net revenue, net loss and adjusted EBITDA for September 30, 2019. Such pro forma adjustments to give effect to the combined successor and predecessor periods. Please see the appendix to this press release for more information.

Attrition

		Twelve Months Ended September 30,
		2020			2019
Beginning balance of accounts not subject to Earnout Payments		865,848			942,157
Accounts acquired		75,627			84,899
Accounts cancelled		(128,736	)		(156,047	)
Cancelled accounts guaranteed by dealer and other adjustments (a)		(5,276	)		(5,161	)
Ending balance of accounts not subject to Earnout Payments		807,463			865,848
Accounts subject to Earnout Payments		107,929			—
Ending balance of accounts		915,392			865,848
Attrition rate – Core Unit (c)		15.4	%		17.3	%
Attrition rate – Core RMR (b) (c)		17.7	%		17.6	%

(a)		Includes cancelled accounts that are contractually guaranteed to be refunded from holdback.
(b)		The RMR of cancelled accounts follows the same definition as subscriber unit attrition as noted above. RMR attrition is defined as the RMR of cancelled accounts in a given period, adjusted for the impact of price increases or decreases in that period, divided by the weighted average of RMR for that period.
(c)		Core Unit and RMR attrition rates exclude the impact of the Protect America bulk buy, where the Company is funding the purchase price through an earnout payment structure (the “Earnout Payments”).

Core Unit attrition, which excludes accounts subject to earnout payments, was down for the twelve months ended September 30, 2020 as compared to the prior twelve-month period.  The decrease in the Core Unit attrition rate includes the impact of fewer customers, as a percentage of the entire base, reaching the end of their initial contract term, continued efforts around “at-risk” extensions and customer retention and the benefit of improved credit quality in the DTC Channel.

Core RMR attrition increased year-over-year due to a combination of lower RMR for accounts generated in the Company’s DTC Channel, as a minimal equipment subsidy is offered, lower production in the Dealer Channel, which typically enjoys higher RMR, and rate reductions relating to the Company’s at-risk retention program. Further, in light of COVID-19, starting in March 2020, the Company made the decision to defer taking ordinary course rate adjustments to its base, which has continued through September 30, 2020. The Company will evaluate its rate strategy going forward as circumstances warrant.

Presentation of Predecessor and Successor Financial Results

Apart from interest and amortization expense, Brinks Home Security’s operating results and key operating performance measures on a consolidated basis were not materially impacted by the reorganization of the Company in August 2019 and its application of fresh start accounting. The Company believes that certain of our consolidated operating results for the three months ended September 30, 2020 is comparable to certain operating results from the comparable prior year period.  Accordingly, the Company believes that discussing the combined non-GAAP results of operations and cash flows of the Predecessor Company and the Successor Company for the three-month period ended September 30, 2019 is useful when analyzing certain performance measures.

Three Months Ended September 30, 2020 Financial Summary²

	Successor Company										Successor Company					Predecessor Company
	Three Months Ended September 30,					Non-GAAP Combined Three Months Ended September 30,					Period from September 1, 2019 through September 30,					Period from July 1, 2019 through August 31,
	2020					2019					2019					2019
Net revenue	$	130,852				$	120,878				$	36,289				$	84,589
Cost of services	31,383					28,962					8,976					19,986
Selling, general and administrative, including stock-based and long-term incentive compensation	31,572					32,370					11,390					20,980
Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets	57,240					49,810					17,302					32,508
Interest expense	20,033					34,586					7,474					27,112
Income tax expense	717					642					204					438
Net (loss) income	(19,164		)			673,578					(10,807		)			684,385
Adjusted EBITDA	68,512					62,502					17,144					45,358

The Company reported net revenues of $130.9 million, an increase of 8.3% as compared to the prior year period.  This improvement in net revenues includes an increase in alarm monitoring revenue of $7.0 million resulting from a higher number of average subscribers relating to the Protect America bulk acquisition and a previously disclosed $5.3 million fresh start adjustment to reduce revenue in the prior year period in connection with the Company’s emergence from bankruptcy.  Also included in the year-over-year increase in net revenues is a $3.3 million increase in product, installation and service revenue largely attributable to the Company’s continued efforts around at-risk extensions. 

RMR acquired during the quarter was $841,000, as compared to $1.0 million in the prior year period.

Cost of Services was $31.4 million, an increase of 8.4% year-over-year.  The increase is attributable to the cost to serve the incremental Protect America customers. The increase was partially offset by a decline in subscriber acquisition costs in the Company’s DTC Channel.

Selling, General and Administrative costs were $31.6 million, a decline of 2.5% year-over-year.  The decrease is primarily due to reduced subscriber acquisition costs and consulting fees on integration and implementation of company initiatives. These declines were partially offset by higher salary expense and professional fees related to the post emergence operating structure of the Company.

Net loss totaled $19.2 million as compared to a net income of $673.6 million in the prior year period.  The year-over-year change is primarily attributable to prior year gains on restructuring and reorganization and current year increases in 2G and 3G radio conversion costs and amortization expense.  These decreases were partially offset by higher revenues and lower interest expense. 

Adjusted EBITDA was $68.5 million, an increase of 9.6% year-over-year.

___________________________________
²All variances are year-over-year unless otherwise noted.

Liquidity

As of September 30, 2020, excluding a minimum liquidity requirement of $25 million under the terms of the Company’s credit agreements, the Company had total short-term liquidity of $133.7 million to fund working capital and continuing operations.  This includes $12.8 million of cash and cash equivalents and $120.9 million of remaining borrowing capacity under the $145.0 million Revolving Credit Facility.

The Company’s existing long-term debt at September 30, 2020 includes an aggregate principal balance of $987.8 million under its Takeback Loan Facility, Term Loan Facility and the Revolving Credit Facility.

Quarterly Report on Form 10-Q

Brinks Home Security’s financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, which is expected to be filed with the U.S. Securities and Exchange Commission (“SEC”) on November 13, 2020.

Conference Call

Brinks Home Security will host a conference call on Thursday, November 12, 2020 at 5:00 pm ET.  Registration for the conference call can be completed by visiting the following website prior to, or on the day of, the conference call: http://www.directeventreg.com/registration/event/7166334. Upon registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast. To access the live webcast or a replay, visit the Company’s investor relations website at https://ir.brinkshome.com/.

A replay of the call can also be accessed via phone through November 19, 2020 by dialing (800) 585-8367 from the U.S., or (416) 621-4642 from outside the U.S. The conference I.D. number is 7166334.

About Brinks Home Security

Brinks Home Security (OTC: SCTY) is one of the largest home security and alarm monitoring companies in North America.  Headquartered in the Dallas-Fort Worth area, Brinks Home Security secures over 900,000 residential and commercial customers through highly responsive, simple security solutions backed by expertly trained professionals. The Company has one of the nation’s largest networks of independent authorized dealers and agents – providing products and support to customers in the U.S., Canada, and Puerto Rico – as well as direct-to-consumer sales of DIY and professionally installed products.

Forward Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential and expansion, the success of new products and services, the launch of Brinks Home Security’s consumer financing solution; the anticipated benefits of the Brinks Home Security’s rebranding; customer retention; account creation and related cost; anticipated account generation; future financial performance; debt refinancing; recovery of insurance proceeds and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to us, our ability to capitalize on acquisition opportunities, general market and economic conditions, including global economic concerns due to the COVID-19 outbreak, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Monitronics International, Inc., including the most recent Forms 10-K and 10-Q for additional information about us and about the risks and uncertainties related to our business which may affect the statements made in this press release.

1) Adjusted EBITDA and the Non-GAAP Combined Three Months Ended September 30, 2019 financials are non-GAAP financial measures. See the Appendix of this press release for related disclosures and calculations.

Contact:

Erica Bartsch
Sloane & Company
212-446-1875
[email protected]

MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets Amounts in thousands, except share amounts
	Successor Company
	September 30, 2020				December 31, 2019
Assets
Current assets:
Cash and cash equivalents	$	12,759			$	14,763
Restricted cash	133				238
Trade receivables, net of allowance for doubtful accounts of $2,759 in 2020 and $3,828 in 2019	10,854				12,083
Inventories, net	6,878				5,242
Prepaid and other current assets	20,387				19,953
Total current assets	51,011				52,279
Property and equipment, net of accumulated depreciation of $13,796 in 2020 and $3,777 in 2019	41,516				42,096
Subscriber accounts and deferred contract acquisition costs, net of accumulated amortization of $208,387 in 2020 and $61,771 in 2019	1,089,198				1,064,311
Dealer network and other intangible assets, net of accumulated amortization of $25,748 in 2020 and $7,922 in 2019	118,952				136,778
Goodwill	—				81,943
Deferred income tax asset, net	684				684
Operating lease right-of-use asset	18,345				19,277
Other assets	18,651				21,944
Total assets	$	1,338,357			$	1,419,312
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	13,369			$	16,869
Other accrued liabilities	45,806				24,954
Deferred revenue	11,065				12,008
Holdback liability	8,583				8,191
Current portion of long-term debt	8,225				8,225
Total current liabilities	87,048				70,247
Non-current liabilities:
Long-term debt	979,550				978,219
Long-term holdback liability	1,761				2,183
Operating lease liabilities	15,648				16,195
Other liabilities	66,989				6,390
Total liabilities	1,150,996				1,073,234
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value.  Authorized 5,000,000 shares; no shares issued	—				—
Common stock, $0.01 par value.  Authorized 45,000,000 shares; issued and outstanding 22,500,000 shares at both September 30, 2020 and December 31, 2019	225				225
Additional paid-in capital	379,175				379,175
Accumulated deficit	(189,779		)		(33,331		)
Accumulated other comprehensive (loss) income, net	(2,260		)		9
Total stockholders’ equity	187,361				346,078
Total liabilities and stockholders’ equity	$	1,338,357			$	1,419,312

MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Amounts in thousands, except shares and per share amounts
	Successor Company									Predecessor Company
	Three Months Ended September 30,				Period from September 1, 2019 through September 30,					Period from July 1, 2019 through August 31,
	2020				2019					2019
Net revenue	$	130,852			$	36,289				$	84,589
Operating expenses:
Cost of services	31,383				8,976					19,986
Selling, general and administrative, including stock-based and long-term incentive compensation	31,572				11,390					20,980
Radio conversion costs	5,612				825					931
Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets	57,240				17,302					32,508
Depreciation	3,459				925					1,073
	129,266				39,418					75,478
Operating income (loss)	1,586				(3,129		)			9,111
Other (income) expense:
Gain on restructuring and reorganization, net	—				—					(702,824		)
Interest expense	20,033				7,474					27,112
	20,033				7,474					(675,712		)
(Loss) income before income taxes	(18,447		)		(10,603		)			684,823
Income tax expense	717					204				438
Net (loss) income	(19,164		)		(10,807		)			684,385
Other comprehensive loss:
Unrealized loss on derivative contracts, net	(475		)		—					—
Total other comprehensive loss, net of tax	(475		)		—					—
Comprehensive (loss) income	$	(19,639	)		$	(10,807	)			$	684,385
Basic and diluted income per share:
Net loss	$	(0.85	)		$	(0.48	)			$	—
Weighted average Common shares – basic and diluted	22,500,000				22,500,000					—
Total issued and outstanding Common shares at period end	22,500,000				22,500,000					—

MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Amounts in thousands, except shares and per share amounts
	Successor Company									Predecessor Company
	Nine Months Ended September 30,				Period from September 1, 2019 through September 30,					Period from January 1, 2019 through August 31,
	2020				2019					2019
Net revenue	$	374,235			$	36,289				$	342,286
Operating expenses:
Cost of services	87,017				8,976					75,286
Selling, general and administrative, including stock-based and long-term incentive compensation	108,566				11,390					80,365
Radio conversion costs	14,103				825					931
Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets	164,889				17,302					130,791
Depreciation	10,019				925					7,348
Goodwill impairment	81,943				—					—
	466,537				39,418					294,721
Operating (loss) income	(92,302		)		(3,129		)			47,565
Other (income) expense:
Gain on restructuring and reorganization, net	—				—					(669,722		)
Interest expense	60,582				7,474					105,081
Realized and unrealized loss, net on derivative financial instruments	—				—					6,804
Refinancing expense	—				—					5,214
	60,582				7,474					(552,623		)
(Loss) income before income taxes	(152,884		)		(10,603		)			600,188
Income tax expense	1,937					204				1,775
Net (loss) income	(154,821		)		(10,807		)			598,413
Other comprehensive loss:
Unrealized loss on derivative contracts, net	(2,269		)		—					(940		)
Total other comprehensive loss, net of tax	(2,269		)		—					(940		)
Comprehensive (loss) income	$	(157,090	)		$	(10,807	)			$	597,473
Basic and diluted income per share:
Net loss	$	(6.88	)		$	(0.48	)			$	—
Weighted average Common shares – basic and diluted	22,500,000				22,500,000					—
Total issued and outstanding Common shares at period end	22,500,000				22,500,000					—

Adjusted EBITDA

We evaluate the performance of our operations based on financial measures such as revenue and “Adjusted EBITDA.” Adjusted EBITDA is a non-GAAP financial measure and is defined as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization (including the amortization of subscriber accounts, dealer network and other intangible assets), restructuring charges, stock-based compensation, and other non-cash or non-recurring charges. We believe that Adjusted EBITDA is an important indicator of the operational strength and performance of our business. In addition, this measure is used by management to evaluate operating results and perform analytical comparisons and identify strategies to improve performance. Adjusted EBITDA is also a measure that is customarily used by financial analysts to evaluate the financial performance of companies in the security alarm monitoring industry and is one of the financial measures, subject to certain adjustments, by which our covenants are calculated under the agreements governing our debt obligations. Adjusted EBITDA does not represent cash flow from operations as defined by generally accepted accounting principles in the United States (“GAAP”), should not be construed as an alternative to net income or loss and is indicative neither of our results of operations nor of cash flows available to fund all of our cash needs. It is, however, a measurement that we believe is useful to investors in analyzing our operating performance. Accordingly, Adjusted EBITDA should be considered in addition to, but not as a substitute for, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. As companies often define non-GAAP financial measures differently, Adjusted EBITDA as calculated by Monitronics should not be compared to any similarly titled measures reported by other companies.

The following table provides a reconciliation of Net (loss) income to total Adjusted EBITDA for the periods indicated (amounts in thousands):

	Successor Company										Successor Company					Predecessor Company
	Three Months Ended September 30,					Non-GAAP Combined Three Months Ended September 30,					Period from September 1, 2019 through September 30,					Period from July 1, 2019 through August 31,
	2020					2019					2019					2019
Net (loss) income	$	(19,164	)			$	673,578				$	(10,807	)			$	684,385
Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets	57,240					49,810					17,302					32,508
Depreciation	3,459					1,998					925					1,073
Radio conversion costs	5,612					1,756					825					931
Stock-based compensation	—					266					—					266
Long-term incentive compensation	2					107					67					40
Severance expense (a)	47					—					—					—
Integration / implementation of company initiatives	566					2,583					1,154					1,429
Gain on restructuring and reorganization, net	—					(702,824		)			—					(702,824		)
Interest expense	20,033					34,586					7,474					27,112
Income tax expense	717					642					204					438
Adjusted EBITDA	$	68,512				$	62,502				$	17,144				$	45,358
Expensed Subscriber acquisition costs, net
Gross subscriber acquisition costs (b)	$	3,102				$	8,041				$	2,499				$	5,542
Revenue associated with subscriber acquisition costs	(1,527		)			(1,925		)			(534		)			(1,391		)
Expensed Subscriber acquisition costs, net	$	1,575				$	6,116				$	1,965				$	4,151

_____________________

(a)		Severance expense related to transitioning executive leadership in 2020.
(b)		Gross subscriber acquisition costs for the three months ended September 30, 2019 has been restated from $9,710,000 to $8,041,000 due to allocation adjustments made to align with current period presentation of expensed subscriber acquisition costs.

The following table provides a reconciliation of Net (loss) income to total Adjusted EBITDA for the periods indicated (amounts in thousands):

	Successor Company										Successor Company					Predecessor Company
	Nine Months Ended September 30,					Non-GAAP Combined Nine Months Ended September 30,					Period from September 1, 2019 through September 30,					Period from January 1, 2019 through August 31,
	2020					2019					2019					2019
Net (loss) income	$	(154,821	)			$	587,606				$	(10,807	)			$	598,413
Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets	164,889					148,093					17,302					130,791
Depreciation	10,019					8,273					925					7,348
Radio conversion costs	14,103					1,756					825					931
Stock-based compensation	—					42					—					42
Long-term incentive compensation	403					657					67					590
LiveWatch acquisition contingent bonus charges	—					63					—					63
Legal settlement reserve (related insurance recovery)	(700		)			(4,800		)			—					(4,800		)
Severance expense (a)	4,289					—					—					—
Integration / implementation of company initiatives	8,710					5,997					1,154					4,843
Goodwill impairment	81,943					—					—					—
Gain on restructuring and reorganization, net	—					(669,722		)			—					(669,722		)
Interest expense	60,582					112,555					7,474					105,081
Realized and unrealized loss, net on derivative financial instruments	—					6,804					—					6,804
Refinancing expense	—					5,214					—					5,214
Income tax expense	1,937					1,979					204					1,775
Adjusted EBITDA	$	191,354				$	204,517				$	17,144				$	187,373
Expensed Subscriber acquisition costs, net
Gross subscriber acquisition costs (b)	$	14,693				$	22,818				$	2,499				$	20,319
Revenue associated with subscriber acquisition costs	(4,831		)			(6,021		)			(534		)			(5,487		)
Expensed Subscriber acquisition costs, net	$	9,862				$	16,797				$	1,965				$	14,832

_____________________

(a)		Severance expense related to transitioning executive leadership in 2020.
(b)		Gross subscriber acquisition costs for the nine months ended September 30, 2019 has been restated from $27,902,000 to $22,818,000 due to allocation adjustments made to align with current period presentation of expensed subscriber acquisition costs.

WOBURN, Mass., Nov. 12, 2020 (GLOBE NEWSWIRE) — Yield10 Bioscience, Inc. (Nasdaq:YTEN), an agricultural bioscience company, today reported financial results for the three and nine months ended September 30, 2020.

“We are very pleased with our strong progress across multiple fronts in the third quarter and beyond,” said Oliver Peoples, Ph.D., President and Chief Executive Officer of Yield10 Bioscience. “We completed harvesting for our 2020 field test program to evaluate novel yield and compositional traits in Camelina and canola conducted in the United States and Canada, and look forward to reporting data in the fourth quarter of 2020 through early 2021.  We plan to evaluate seed yield, oil content, PHA content and other metrics of the traits which will also inform our priorities for trait evaluation in 2021.”

“We are very pleased to have recently announced our collaboration with Rothamsted Research for the advancement of technology that enables the land-based, sustainable production of omega-3 (DHA + EPA) oils for use in aquaculture. There is a significant market opportunity for the development of plant-based feeding solutions for the production of fish, particularly salmon, for human consumption. The technology has demonstrated the DHA + EPA omega-3 trait in Camelina and is highly complementary to our own Camelina Platform. The key objective is to support Rothamsted’s continued research as they further optimize the DHA + EPA omega-3 trait as a drop-in replacement for southern hemisphere fish oil and conduct field tests and feeding studies.  Yield10 will develop a strategic business plan with an initial focus on South America.”

“In addition to executing our field test program and advancing our Camelina business plan, we also shored up our balance sheet in the third quarter with the closing of a public offering and concurrent private placement of common stock that raised $5.7 million in gross proceeds to Yield10. As we approach year end 2020, we remain focused on generating proof points for our traits in development and on advancing business discussions around our Camelina business plan,” Dr. Peoples concluded.

Recent Accomplishments Towards Achieving 2020 Milestones

Advance the Camelina Business Plan.  Yield10 recently signed exclusive research collaboration and commercial option agreements with Rothamsted Research to evaluate advanced technology for producing omega-3 nutritional oils in Camelina. The Rothamsted technology could enable the sustainable, plant-based production of DHA+EPA omega-3 nutritional oil that closely mimics the composition of southern hemisphere fish oil, an important ingredient in aquaculture feed for salmon and other species.

In the third quarter, Yield10 began field tests of internally developed double haploid varieties of winter Camelina as part of a program to develop Camelina as a commercial crop. Yield10 also harvested 50 acres of wild-type spring Camelina to begin building relationships with growers, developing agronomic guidelines for successfully growing Camelina, and producing Camelina oil and meal for sampling to potential customers.

Generate Proof Points for Novel Traits in Camelina and Canola. Yield10 completed the harvest of the Company’s 2020 Field Tests to evaluate a series of traits in Camelina and canola. Key studies include the evaluation of C3004 in Camelina as well as tests of traits to boost seed yield and/or oil content in Camelina and canola. These studies, for the first time, include field testing of a novel trait to produce PHA in the seed of Camelina. The purpose of this activity is to determine the suitability of these first generation PHA Camelina lines for scale-up and PHA product prototyping in 2021. Yield10 expects that data from the studies will begin to become available in the fourth quarter of 2020 and into early 2021.

Advance the Corn Development Program. Continued to execute field work to create hybrid corn lines for field testing including the start of a second growth cycle in the third quarter for corn lines deployed with Yield10 traits. Yield10 plans to seek a research license partner for corn.

Manage its Financial Profile and Strengthen the Balance Sheet. Yield10’s financial results for the nine-month period ended September 30, 2020 are on track with internal estimates. Yield10 strengthened its balance sheet in the third quarter of 2020 based on raising approximately $5.7 million in gross proceeds from the issuance of common stock in offerings completed on August 26, 2020.

COVID-19 Impact on Operations. The Company has implemented business continuity plans to address the COVID-19 pandemic and minimize disruptions to ongoing operations. To date, despite the pandemic, we have been able to move forward with the operational steps required to execute our 2020 field trials in Canada and the United States. It is possible, however, that any potential future closures of our research facilities, should they continue for an extended time period, could adversely impact our anticipated time frames for evaluating and/or reporting data from our field trials and other work we have planned to accomplish during 2020 and beyond.

THIRD QUARTER 2020 FINANCIAL OVERVIEW

Cash Position

Yield10 Bioscience is managed with an emphasis on cash flow and deploys its financial resources in a disciplined manner to achieve its key strategic objectives.

Net cash used by operating activities during the third quarter of 2020 was $2.1 million compared to $1.4 million used in the third quarter of 2019. Yield10 ended the third quarter of 2020 with $11.8 million in unrestricted cash, cash equivalents and short-term investments. The Company continues to estimate total net cash usage during the full year 2020 within a range of $8.5 – $9.0 million.

The Company’s present capital resources are expected to fund its planned operations through the end of 2021. Yield10’s ability to continue operations after its current cash resources are exhausted depends on its ability to obtain additional financing, including public or private equity financing, secured or unsecured debt financing, and receipt of additional government research grants, as well as licensing or other collaborative arrangements.

Grant revenue for both the third quarter of 2020 and 2019 was $0.2 million, respectively. Research and development expenses were $1.3 million and $1.2 million for the third quarters of 2020 and 2019, respectively. General and administrative expenses increased to $1.1 million during the third quarter of 2020 from $1.0 million during the third quarter of 2019. The quarter-over-quarter increases in operating expense are primarily a result of the Company recording pro rata estimates for 2020 employee bonuses that are expected to be paid during the first quarter of 2021. In 2019, Yield10 did not accrue for bonuses until the fourth quarter.

Yield10 reported a loss from operations of $2.2 million for the quarter ended September 30, 2020 compared to a loss from operations of $2.0 million for the same quarter of 2019. The Company reported a total net loss after income tax expense of $2.2 million, or $0.87 per share for the three months ended September 30, 2020, in comparison to a total net loss after income taxes of $2.0 million, or $6.33 per share, for the three months ended September 30, 2019.

For the nine months ending September 30, 2020, the Company reported a net operating loss after taxes of $7.6 million, or $3.69 per share compared to a net operating loss after taxes of $6.1 million, or $20.64 per share for the nine months ending September 30, 2019. Year to date grant revenue earned through September 30, 2020 and September 30, 2019 was $0.6 million and $0.7 million, respectively. Research and development expenses were $3.9 million during the nine months ended September 30, 2020, compared to $3.6 million for the nine months ended September 30, 2019, and general and administrative expenses were $3.7 million and $3.2 million during the nine months ended September 30, 2020 and September 30, 2019, respectively. During the nine months ended September 30, 2020, the Company recognized $0.3 million in loan forgiveness income related to a Paycheck Protection Program Loan (“PPP Loan”) issued to the Company under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). Yield10 utilized the entire PPP Loan amount of $0.3 million for qualifying payroll and other expenses during the second quarter of 2020 and considers it reasonably certain that its application for loan forgiveness under the CARES Act will be approved.

Reverse Stock Split

Yield10 completed a 1-for-40 reverse stock split of its common stock on January 15, 2020, in order to regain compliance with the Nasdaq Stock Market minimum bid price qualification of $1.00 per share as required by Nasdaq Listing Rule 5550(a)(2). In accordance with applicable accounting guidance, all share amounts, per share data, share prices and conversion rates set forth in the Company’s condensed consolidated financial statements for the three and nine months ending September 30, 2020 and September 30, 2019, including those presented in this earnings release, have been retroactively adjusted to reflect the reverse stock split.

Conference Call Information

Yield10 Bioscience management will host a conference call at 4:30 p.m. (ET) today to discuss the third quarter 2020 results. The Company also will provide an update on the business and answer questions from the investor community. A live webcast of the call with slides can be accessed through the Company’s website at www.yield10bio.com in the investor relations events section. To participate in the call, dial toll-free 877-709-8150 or 201-689-8354 (international).

To listen to a telephonic replay of the conference call, dial toll-free 877-660-6853 or 201-612-7415 (international) and enter pass code 13711239. The replay will be available until November 26, 2020. In addition, the webcast will be archived on the Company’s website in the investor relations events section.

About Yield10 Bioscience

Yield10 Bioscience, Inc. is an agricultural bioscience company developing crop innovations to improve crop yields and enhance sustainable global food security. The Company utilizes its proprietary “GRAIN“ (Gene Ranking Artificial Intelligence Network) gene discovery platform to identify gene targets to improve yield performance and value in major commercial food and feed crops. Yield10 uses its Camelina oilseed platform to rapidly evaluate and field test new trait leads enabling the translation of promising new traits into the major commercial crops. As a path toward commercialization, Yield10 is pursuing a partnering approach with agricultural companies to drive new traits into development in crops such as canola, soybean and corn. The Company is also developing Camelina as a platform crop for producing nutritional oils and specialty products such as PHA biomaterials for use in water treatment and bioplastic applications. Yield10 is headquartered in Woburn, MA and has an Oilseeds Center of Excellence in Saskatoon, Canada.

For more information about the company, please visit www.yield10bio.com, or follow the Company on Twitter, Facebook and LinkedIn. (YTEN-E)

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, expectations regarding Yield10’s cash position, cash forecasts and runway, ability to obtain sufficient financing to continue operating, expectations related to research and development activities, intellectual property, the expected regulatory path for traits, reproducibility of data from field tests, the timing of completion of additional greenhouse and field test studies, the timing for reporting data from the 2020 field tests and the outcomes of those tests, the signing of research licenses and collaborations, including whether the objectives of those collaborations will be met, whether the Company will be able to generate proof points for traits in development and advance business discussions around its Camelina business plan, the potential impact on operations of the COVID-19 pandemic, and value creation as well as the overall progress of Yield10 Bioscience, Inc., constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including the risks and uncertainties detailed in Yield10 Bioscience’s filings with the Securities and Exchange Commission. Yield10 Bioscience assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

Contacts:

Yield10 Bioscience:
Lynne H. Brum, (617) 682-4693, [email protected]

Investor Relations:
Bret Shapiro, (561) 479-8566, [email protected]
Managing Director, CORE IR

Media Inquiries:
Eric Fischgrund, [email protected]
FischTank PR

(FINANCIAL TABLES FOLLOW)

YIELD10 BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

UNAUDITED

(In thousands, except share and per share amounts)

	Three Months Ended  September 30,								Nine Months Ended  September 30,
	2020				2019				2020				2019
Revenue:
Grant revenue	$	204			$	224			$	604			$	666
Total revenue		204				224				604				666
Expenses:
Research and development		1,300				1,232				3,939				3,646
General and administrative		1,098				990				3,664				3,201
Total expenses		2,398				2,222				7,603				6,847
Loss from operations		(2,194	)			(1,998	)			(6,999	)			(6,181	)
Other income (expense):
Change in fair value of warrants		—				—				(957	)			—
Loan forgiveness income		—				—				333				—
Other income (expense), net		37				16				85				68
Total other income (expense)		37				16				(539	)			68
Net loss before income tax expense		(2,157	)			(1,982	)			(7,538	)			(6,113	)
Income tax expense		(11	)			—				(26	)			—
Net loss	$	(2,168	)		$	(1,982	)		$	(7,564	)		$	(6,113	)
Basic and diluted net loss per share	$	(0.87	)		$	(6.33	)		$	(3.69	)		$	(20.64	)
Number of shares used in per share calculations:
Basic and diluted		2,492,274				312,952				2,050,726				296,139

YIELD10 BIOSCIENCE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

UNAUDITED

(In thousands, except share and per share amounts)

	September 30,  2020				December 31,  2019
Assets
Current Assets:
Cash and cash equivalents	$	2,995			$	5,417
Short-term investments		8,794				5,700
Accounts receivable		148				72
Unbilled receivables		56				20
Prepaid expenses and other current assets		368				475
Total current assets		12,361				11,684
Restricted cash		254				332
Property and equipment, net		935				1,243
Right-of-use assets		2,796				3,141
Other assets		300				318
Total assets	$	16,646			$	16,718
Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Current Liabilities:
Accounts payable	$	103			$	279
Accrued expenses		930				1,326
Lease liabilities		443				602
Total current liabilities		1,476				2,207
Lease liabilities, net of current portion		3,283				3,619
Warrant liability		—				14,977
Other long-term liabilities		15				—
Total liabilities		4,774				20,803
Commitments and contingencies
Series B Convertible Preferred Stock ($0.01 par value per share); 0 and 5,750 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively		—				—
Stockholders’ Equity (Deficit):
Series A Convertible Preferred Stock ($0.01 par value per share); 0 shares and 796 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively		—				—
Common stock ($0.01 par value per share); 60,000,000 shares authorized at September 30, 2020 and December 31, 2019; 3,330,778 and 933,423 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively		33				9
Additional paid-in capital		384,465				360,926
Accumulated other comprehensive loss		(168	)			(126	)
Accumulated deficit		(372,458	)			(364,894	)
Total stockholders’ equity (deficit)		11,872				(4,085	)
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)	$	16,646			$	16,718

YIELD10 BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED

(In thousands)

	Nine Months Ended  September 30,
	2020				2019
Cash flows from operating activities
Net loss	$	(7,564	)		$	(6,113	)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation		137				150
Change in fair value of warrants		957				—
Loss on disposal of fixed assets		206				—
Charge for 401(k) company common stock match		95				73
Stock-based compensation		506				406
Non-cash lease expense		345				456
Deferred income tax provision		33				—
Changes in operating assets and liabilities:
Accounts receivable		(76	)			23
Unbilled receivables		(36	)			(17	)
Prepaid expenses and other assets		92				217
Accounts payable		(228	)			(66	)
Accrued expenses		(324	)			48
Lease liabilities		(495	)			(622	)
Other liabilities		15				—
Net cash used for operating activities		(6,337	)			(5,445	)
Cash flows from investing activities
Purchase of property and equipment		(42	)			(12	)
Proceeds from sale of property and equipment		10				—
Purchase of short-term investments		(6,290	)			(1,000	)
Proceeds from the sale and maturity of short-term investments		3,197				3,746
Net cash (used for) provided by investing activities		(3,125	)			2,734
Cash flows from financing activities
Proceeds from warrants exercised		1,658				—
Proceeds from public and private offerings, net of issuance costs		5,367				2,583
Taxes paid on employees’ behalf related to vesting of stock awards		(17	)			(4	)
Net cash provided by financing activities		7,008				2,579
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(46	)			(14	)
Net decrease in cash, cash equivalents and restricted cash		(2,500	)			(146	)
Cash, cash equivalents and restricted cash at beginning of period		5,749				3,355
Cash, cash equivalents and restricted cash at end of period	$	3,249			$	3,209
Supplemental disclosure of non-cash information:
Offering costs remaining in accrued expenses	$	63			$	41

 

Guardion


A


lso


Provides Corporate Update

SAN DIEGO, Nov. 12, 2020 (GLOBE NEWSWIRE) — Guardion Health Sciences, Inc. (Nasdaq: GHSI) (“Guardion” or the “Company”), a specialty health sciences company that develops clinically supported nutrition, medical foods and medical devices, with a focus in the ocular health marketplace, announced financial results for the three months and nine months ended September 30, 2020, and is also providing a corporate update.

Financial and corporate highlights for the three months and nine months ended September 30, 2020 include the following:

• Total revenue was approximately $253,000 for the three months ended September 30, 2020, as compared to approximately $161,000 for the three months ended September 30, 2019, an increase of 57%.
• Medical foods sales are up 26% for the three months ended September 30, 2020, as compared to the three months ended September 30, 2019.
• Medical devices sales are up 147% for the three months ended September 30, 2020, as compared to the three months ended September 30, 2019.
• Net loss for the three months ended September 30, 2020 was approximately ($2,143,000) or ($0.02) per share, as compared to a net loss of approximately ($2,385,000) or ($0.07) per share for the three months ended September 30, 2019.
• Cash balance at September 30, 2020 was approximately $9,800,000.
• Ho Wah Genting Berhad (“HWGB”), the Company’s distributor in Malaysia, has received product registration approval from the Malaysian National Pharmaceutical Regulatory Agency (“NPRA”) for Astramern Nutra V, an immune support dietary supplement designed and produced by Guardion; approval for Astramern Nutra H, an herb formulation that HWGB intends to market together with Astramern Nutra V, continues to be pending with the Malaysian NPRA.
• Publication of promising new data in the journal Nutrients (published   October 26, 2020), which compared the efficacy of the Company’s Lumega-Z® to the current standard of care, the AREDS-2 soft gel supplement (marketed under the PreserVision® brand by Bausch + Lomb) in patients with vision problems associated with eye disease. Lumega-Z® demonstrated statistically significant vision improvements in both eyes at six months (p < 0.001), and a positive linear trend with treatment time (p < 0.001), with benefits visible after just three months; whereas the AREDS-2 supplement gel cap formulation provided no significant change (p > 0.05).
• Initiation of investigator-initiated clinical trials designed to evaluate the impact of Lumega-Z® on the restoration of the macular pigment and its relationship to the stabilization or recovery of vision in patients with eye disease. It is believed that depletion of the macular pigment at the back of the eye is a risk factor for vision problems related to age-related macular degeneration (“AMD”), glaucoma and other serious eye diseases.
• Guardion retained the investment banking firm Corporate Finance Associates (“CFA”) to act as its exclusive financial advisor to assist management and the Board of Directors in the identification and evaluation of strategic transactions to enhance shareholder value.
• At the Company’s Annual Meeting of Shareholders held on October 29, 2020, shareholders approved all four matters presented for approval.
• Trademark for “NutriGuard” issued on October 27, 2020 by the U.S. Patent and Trademark Office under Class 5 – nutritional dietary supplements.

David Evans, Ph.D., Guardion’s interim President and Chief Executive Officer, and Chief Science Officer, commented, “As we continue to develop our investment into clinical research to build strong differentiated brand claims, we are entering the commercial phase of our business development process. Despite a challenging environment with the COVID-19 pandemic, which has slowed our progress both in terms of connecting directly with doctors and consumers, as well as conducting day-to-day business, sales continue to be up year-over-year. Over the course of this pandemic, it has become increasingly clear that there are multiple business opportunities for Guardion to explore, including enhancing our digital distribution channels and e-commerce platform and expanding our international distribution opportunities. In addition, we are working closely with CFA to identify and evaluate strategic transactions and opportunities to enhance shareholder value.”

Dr. Evans concluded, “We continue to receive third party validation of our products, including recently published studies, in the journal Nutrients, showing superior efficacy of our proprietary formulation, Lumega-Z®, in terms of both absorption level and improvement in visual function, versus PreserVision®, the industry leading AREDS-2 gel cap product formulation. These results clearly support our brand messaging and offer an evidenced-based foundation to support our evolving product development strategies. We will continue our commitment to scientific and clinical validation of our proprietary products and to report on our results to our shareholders as this information occurs.”

Results of Annual Meeting of Shareholders
and Nasdaq Delisting Issue

On October 29, 2020, the Company held its annual meeting of shareholders (the “Meeting”). At the Meeting, the Company’s shareholders approved all four proposals, including extending the discretionary authority previously granted to the Board of Directors to effect a “reverse stock split,” at a specific ratio within a range of no split and one-for-thirty (1-for-30), with the exact ratio to be determined by the Board of Directors in its sole discretion on or before October 29, 2021.

Since the Company does not intend to execute a reverse stock split prior to November 30, 2020, Guardion expects to receive a notice of delisting from The Nasdaq Capital Market (“Nasdaq”) shortly after November 30, 2020 because the trading price of the Company’s common stock does not meet the $1.00 per share minimum bid price requirement.

The Company intends to appeal any notice of delisting that Nasdaq issues after November 30, 2020 to request a further extension of time (not to exceed 180 days from the date of the notice of delisting) to regain compliance with the $1.00 minimum bid price requirement. Such temporary relief would allow the Company additional time to execute on its business initiatives to generate greater shareholder value, which the Company hopes would then be reflected by an increase in the price of the Company’s common stock. During the appeal process, the Company’s common stock will continue to be listed on Nasdaq.

A permanent delisting from Nasdaq could adversely impact the liquidity of the Company’s common stock and limit the ability of the Company to raise additional capital in the future.

Financial Results

Three Months Ended September 30, 2020

Total revenue for the three months ended September 30, 2020 increased by approximately 57% to approximately $253,000, as compared total revenue for the three months ended September 30, 2019 of approximately $161,000, primarily due to increased sales of medical foods and nutraceuticals and medical devices in the current period.

Operating expenses for the three months ended September 30, 2020 decreased by approximately 8% to approximately $2,291,000 as compared to operating expenses for the three months ended September 30, 2019 of approximately $2,503,000, primarily due to a decrease in selling and marketing expenses in the current period.

Operating loss for the three months ended September 30, 2020 decreased by approximately $260,000 to approximately ($2,152,000), as compared to the operating loss for the three months ended September 30, 2019 of approximately ($2,412,000). Net loss for the three months ended September 30, 2020 was approximately ($2,143,000), or ($0.02) per share, as compared to a net loss of approximately ($2,385,000), or ($0.07) per share, for the three months ended September 30, 2019.

Nine Months Ended September 30, 2020

Total revenue for the nine months ended September 30, 2020 increased by approximately 154% to approximately $1,690,000, as compared to total revenue for the nine months ended September 30, 2019 of approximately $665,000. This increase was primarily due to a large initial test order of a nutraceutical product placed by the Company’s Malaysian distributor of $890,000 that was recorded during the three months ended June 30, 2020 and increased sales of medical food product lines, partially offset by a decrease in medical device sales which were affected by the impact of COVID-19 closures during the nine months ended September 30, 2020.

Operating expenses for the nine months ended September 30, 2020 decreased by approximately 12% to approximately $6,018,000, as compared to operating expenses for the nine months ended September 30, 2019 of approximately $6,813,000, primarily due to a reduction of approximately $965,000 in stock-based compensation cost related to a reversal of stock-based compensation as a result of the resignation of the Company’s former President and Chief Executive Officer in June 2020.

Operating loss for the nine months ended September 30, 2020 decreased by approximately $1,214,000 to approximately ($5,196,000), as compared to the operating loss for the nine months ended September 30, 2019 of approximately ($6,410,000). Net loss for the nine months ended September 30, 2020 was approximately ($5,198,000), or ($0.06) per share, as compared to a net loss of approximately ($6,823,000), or ($0.26) per share, for the nine months ended September 30, 2019.

About
Guardion
Health Sciences

Guardion is a specialty health sciences company that develops clinically supported nutrition, medical foods and medical devices, with a focus in the ocular health marketplace. Located in San Diego, California, the Company combines targeted nutrition with innovative, evidence-based diagnostic technology. Guardion boasts impressive Scientific and Medical Advisory Boards. Information and risk factors with respect to Guardion and its business, including its ability to successfully develop and commercialize its proprietary products and technologies, may be obtained in the Company’s filings with the U. S. Securities and Exchange Commission (the “SEC”) at www.sec.gov.

Forward-Looking Statement Disclaimer

With the exception of the historical information contained in this news release, the matters described herein may contain 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. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward- looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements involve unknown risks and uncertainties that may individually or materially impact the matters discussed herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company’s ability to raise sufficient financing to implement its business plan, the impact of the COVID-19 pandemic on the Company’s business, operations and the economy in general, and the Company’s ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward- looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company’s filings with the SEC, which are available at the SEC’s website (www.sec.gov).
The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
CORE IR
Scott Arnold
516-222-2560
[email protected] 

Media Relations Contact:
Jules Abraham
Director of Public Relations
CORE IR
917-885-7378
[email protected] 

Guardion Health Sciences, Inc.
Condensed Consolidated Balance Sheets
	September 30, 2020				December 31, 2019
	(Unaudited)
Assets
Current assets
Cash	$	9,795,441			$	11,115,502
Accounts receivable		22,849				78,337
Inventories, net		1,284,173				310,941
Prepaid expenses		231,621				362,938
Total current assets		11,334,084				11,867,718
Deposits		11,751				11,751
Property and equipment, net		305,600				374,638
Right-of-use asset, net		457,677				572,714
Intangible assets		50,000				50,000
Total assets	$	12,159,11 2			$	12,876,821
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	576,890			$	70,291
Accrued expenses		182,597				175,052
Due to former officer		230,208				–
Derivative warrant liability		7,519				13,323
Lease liability – current		159,962				151,568
Total current liabilities		1,157,176				410,234
Lease liability – long-term		313,909				434,747
Total liabilities		1,471,085				844,981
Commitments and contingencies
Stockholders’ Equity
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding		–				–
Common stock, $0.001 par value; 250,000,000 shares authorized; 88,327,312 and 74,982,562 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively		88,327				74,983
Additional paid-in capital		61,308,938				57,468,528
Accumulated deficit		(50,709,238	)			(45,511,671	)
Total stockholders’ equity		10,688,02 7				12,031,840
Total liabilities and stockholders’ equity	$	12,159,11 2			$	12,876,821

Guardion Health Sciences, Inc.
Condensed Consolidated Statements of Operations
	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
	(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Revenue
Medical foods and nutraceuticals	$	142,556			$	112,957			$	1,446,584			$	317,338
Medical devices		110,632				44,705				237,136				337,531
Other		–				3,500				6,100				9,800
Total revenue		253,188				161,162				1,689,820				664,669
Cost of goods sold
Medical foods and nutraceuticals		68,956				41,655				764,245				120,608
Medical devices		45,157				27,922				101,077				136,958
Other		–				1,422				2,478				3,981
Total cost of goods sold		114,113				70,999				867,800				261,547
Gross profit		139,075				90,163				822,020				403,122
Operating expenses
Research and development		34,034				31,897				109,803				138,613
Sales and marketing		167,213				448,387				1,175,126				1,246,846
General and administrative		2,070,998				2,022,367				5,299,696				5,427,573
Costs related to resignation of former officer (including the reversal of previously recognized stock compensation expense of $965,295 during the nine months ended September 30, 2020)		–				–				(615,936	)			–
Loss on sale of equipment		18,500				–				18,500				–
Impairment loss on equipment		–				–				30,948				–
Total operating expenses		2,290,745				2,502,651				6,018,137				6,813,032
Loss from operations		(2,151,670	)			(2,412,488	)			(5,196,117	)			(6,409,910	)
Other (income) expense:
Interest expense		3,716				4,205				7,254				255,842
Finance cost upon issuance of warrants		–				–				–				415,955
Change in fair value of derivative warrants		(11,892	)			(31,322	)			(5,804	)			(259,154	)
Total other (income) expense		8,176				(27,117)				1,450				412,643
Net loss	$	(2,143,494	)		$	(2,385,371	)		$	(5,197,567	)		$	(6,822,553	)
Net loss per common share – basic and diluted	$	(0.02	)		$	(0.07	)		$	(0.06	)		$	(0.26	)
Weighted average common shares outstanding – basic and diluted		88,320,523				36,035,309				84,530,367				26,483,713

Guardion Health Sciences, Inc.
Operations by Segment (Unaudited)
	For the Three Months Ended September 30, 2020
	Corporate				Medical Foods and Nutraceuticals				Medical Devices			Total
Revenue	$	–			$	142,556			$	110,632		$	253,188
Cost of goods sold		–				68,956				45,157			114,113
Gross profit		–				73,600				65,475			139,075
Operating expenses		1,202,402				1,081,897				6,446			2,290,745
(Loss) income from operations	$	(1,202,402	)		$	(1,008,296	)		$	59,028		$	(2,151,670	)

	For the Nine Months Ended September 30, 2020
	Corporate				Medical Foods and Nutraceuticals				Medical Devices				Total
Revenue	$	6,100			$	1,446,584			$	237,136			$	1,689,820
Cost of goods sold		2,477				764,246				101,077				867,800
Gross profit		3,623				682,338				136,059				822,020
Operating expenses		2,655,107				3,146,514				216,516				6,018,137
Loss from operations	$	(2,651,484	)		$	(2,464,176	)		$	(80,457	)		$	(5,196,117	)