Market Newsdesk

November 16, 2020 4:03 pm

KE Holdings Inc. Announces Third Quarter 2020 Unaudited Financial Results

KE Holdings Inc. Announces Third Quarter 2020 Unaudited Financial Results

BEIJING–(BUSINESS WIRE)–
KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE), a leading integrated online and offline platform for housing transactions and services, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Business Highlights for the Third Quarter of 2020

Gross transaction value (GTV)¹wasRMB1,050.0 billion (US$154.6 billion), an increase of 87.2% year-over-year. GTV of existing home transactions was RMB576.1 billion (US$84.8 billion), an increase of 71.8% year-over-year. GTV of new home transactions was RMB420.7 billion (US$62.0 billion), an increase of 105.7% year-over-year. GTV of emerging and other services was RMB53.2 billion (US$7.8 billion), an increase of 151.5% year-over-year.

Net revenues were RMB20.5 billion (US$3.0 billion), an increase of 70.9% year-over-year.

Net income was RMB75 million (US$11 million). Adjusted net income²was RMB1,858 million (US$274 million), an increase of 210.6% year-over-year.

Number of stores was 44,883 as of September 30, 2020, a 41.7% increase year-over-year.

Number of agents was 477,810 as of September 30, 2020, a 50.7% increase year-over-year.

Mobile monthly active users (MAU)³averaged47.9 million, an increase of 82.1% year-over-year.

Mr. Stanley Yongdong Peng, Co-founder and Chief Executive Officer of Beike, commented, “We are pleased to deliver strong results for our first quarter as a public company. In the third quarter, we continued to strengthen our infrastructure, including the Agent Cooperation Network, by scaling up our network of community centric stores and agents, as well as expanding our online presence at a rapid pace. With improved customer experience on our platform, we achieved an 87.2% increase in GTV and a 70.9% increase in net revenues year-over-year. For existing home transaction services, with strong demand for quality housing transaction services from both home sellers and buyers, we further grew our GTV by 71.8% year-over-year. For example, facilitated by our big data technology, the Premium Package for Home Sellers was tailor-made for home sellers for more effective housing transactions. For new home transaction services, with increasing demand from real estate developers for professional brokerage services and our enhanced capability to achieve effective sell-through, our GTV of new home transaction services increased by 105.7% year-over-year. We partnered with real estate developers to adopt the 3-Day Free Return policy, while performing extensive risk assessment to ensure strong management of receivables. Leveraging our world-class database for residential housing and A.I. technology, we continued to standardize and digitalize the industry by adopting innovative applications, such as our Online Mortgage Processing Service, Xiaobei AI-assistant 2.0 and VR Lite. As we further execute our strategic initiatives centered on taking care of our customers and supporting service providers, we remain enthusiastic about our future path and are confident to deliver sustainable value to our housing customers, agents and other platform participants over the long-term.”

Mr. Tao Xu, Chief Financial Officer of Beike, further commented, “We achieved robust financial and operational growths in the third quarter. Our net revenues increased by 70.9% year-over-year to RMB20.5 billion, driven by solid growth of GTV of both existing home and new home transaction services, along with increased productivity and continuously improved service quality on our platform. Additionally, we achieved strong improvement in profitability in the third quarter as a result of greater operating leverage. Adjusted net income increased by 210.6% to RMB1,858 million (US$274 million) from RMB598 million for the same period in 2019. Looking ahead, drawing upon our infrastructure that we endeavor to iterate, amplifying our extensive industry experience in reconstructing and streamlining the complex housing transactions, we will continue to grow in all fronts, diversify our business offerings across housing related products and services. We remain strongly committed to our mission of admirable service and joyful living, and reshaping the industry while capturing the tremendous opportunities along with all our platform participants.”

Third Quarter 2020 Financial Results

Net Revenues

Net revenues increased by 70.9% to RMB20.5 billion (US$3.0 billion) in the third quarter of 2020 from RMB12.0 billion in the same period of 2019, primarily attributable to the increase in GTV of both existing home transaction services and new home transaction services.

Net revenues from existing home transaction services increased by 46.2% to RMB8.8 billion (US$1.3 billion) in the third quarter of 2020 from RMB6.1 billion in the same period of 2019, primarily attributable to a 71.8% increase in GTV of existing home transactions to RMB576.1 billion (US$84.8 billion) in the third quarter of 2020 from RMB335.4 billion in the same period of 2019. Among that, (i) the revenue derived from platform service, franchise service and other value-added services, which are mostly charged to connected agents on the Company’s platform increased by 95.7% to RMB0.9 billion (US$0.1 billion) in the third quarter of 2020 from RMB0.5 billion in the same period of 2019, as the GTV of existing home transactions served by connected agents on the Company’s platform increased by 110.7% to RMB290.4 billion (US$42.8 billion) in the third quarter of 2020 from RMB137.8 billion in the same period of 2019; (ii) commission revenue increased by 42.0% to RMB7.9 billion (US$1.2 billion) in the third quarter of 2020 from RMB5.6 billion in the same period of 2019, driven by the GTV of existing home transactions served by the Company’s Lianjia brand increased by 44.6% to RMB285.7 billion (US$42.1 billion) in the third quarter of 2020 from RMB197.6 billion in the same period of 2019.

Net revenues from new home transaction services increased by 95.0% to RMB11.1 billion (US$1.6 billion) in the third quarter of 2020 from RMB5.7 billion in the same period of 2019, primarily attributable to an increase in the GTV of new home transactions to RMB420.7 billion (US$62.0 billion) in the third quarter of 2020 from RMB204.5 billion in the same period of 2019, among which, RMB82.8 billion (US$12.2 billion) and RMB49.3 billion, respectively, were served by Lianjia brand.

Net revenues from emerging and other services increased by 116.6% to RMB0.6 billion (US$0.1 billion) in the third quarter of 2020 from RMB0.3 billion in the same period of 2019. The increase was primarily due to the increase of penetration level of the Company’s financial services around the housing transaction services.

Cost of Revenues

Cost of revenues increased by 78.0% to RMB16.2 billion (US$2.4 billion) in the third quarter of 2020 from RMB9.1 billion in the same period of 2019, primarily attributable to the increase in split commission to connected agents and other sales channels and the increase in internal commission and compensation.

Commission – split. The Company’s cost of revenues for commissions to connected agents and other sales channels increased by 143.8% to RMB7.7 billion (US$1.1 billion) in the third quarter of 2020 from RMB3.2 billion in the same period of 2019. The increase was primarily attributable to the incremental increase in the number of new home transactions completed through connected agents and other sales channels, which in turn was driven by the increasing number of connected agents and other sales channels joining our platform, as well as the promotional measures related to new home transaction services to incentivize the connected agents and other sales channels on our platform in the third quarter of 2020.

Commission and compensation – internal. The Company’s cost of revenues for internal commission and compensation increased by 36.2% to RMB6.6 billion (US$1.0 billion) in the third quarter of 2020 from RMB4.9 billion in the same period of 2019. The increase was primarily attributable to the increase in the number of new and existing home transactions completed through Lianjia brand.

Cost related to stores. The Company’s cost related to stores remained relatively stable at RMB0.8 billion (US$0.1 billion) in the third quarter of 2020 as compared to the same period of 2019, mainly attributable to the Company’s efforts to optimize the Company’s store network and store size and improve the efficiency of each store.

Gross Profit

Gross profit increased by 49.1% to RMB4.4 billion (US$0.6 billion) in the third quarter of 2020 from RMB2.9 billion in the same period of 2019. Gross margin was 21.3% in the third quarter of 2020, compared to 24.4% in the same period of 2019. The decrease in gross margin was mainly attributable to the increase of share-based compensation expenses and structural change that more new home transactions were facilitated by connected stores and agents and other sales channels.

Income (Loss) from Operations

Operating expenses increased by 75.8% to RMB4.5 billion (US$0.7 billion) in the third quarter of 2020 from RMB2.5 billion in the same period of 2019. General and administrative expenses were RMB2,649 million (US$390 million) in the third quarter of 2020, compared to RMB1,367 million in the same period of 2019, mainly due to the increase of share-based compensation expenses and number of supporting staff in city-level. Sales and marketing expenses were RMB1,026 million (US$151 million) in the third quarter of 2020, compared to RMB737 million in the same period of 2019, mainly due to the increase of the brand advertising and promotional marketing activities and share-based compensation expenses. Research and development expenses were RMB789 million (US$116 million) in the third quarter of 2020, compared to RMB436 million in the same period of 2019, mainly due to the increase of share-based compensation expenses.

Loss from operations was RMB81 million (US$12 million) in the third quarter of 2020, compared to income from operations of RMB400 million in the same period of 2019. Operating margin was negative 0.4% in the third quarter of 2020, compared to 3.3% in the same period of 2019, primarily due to the increase of share-based compensation expenses.

Adjusted income from operations⁴ increased by 185.1% to RMB1,740 million (US$256 million) in the third quarter of 2020 from RMB610 million in the same period of 2019. Adjusted operating margin increased to 8.5% in the third quarter of 2020 from 5.1% in the same period of 2019. Adjusted EBITDA⁵ increased by 122.3% to RMB2,248 million (US$331 million) in the third quarter of 2020 from RMB1,011 million in the same period of 2019.

Net Income (loss)

Net income was RMB75 million (US$11 million) in the third quarter of 2020, compared to RMB384 million in the same period of 2019.

Adjusted net incomeincreased by 210.6% to RMB1,858 million (US$274 million) in the third quarter of 2020 from RMB598 million in the same period of 2019.

Net Income (loss) attributable to KE Holdings Inc.’s ordinary shareholders

Net loss attributable to KE Holdings Inc.’s ordinary shareholders was RMB271 million (US$40 million) in the third quarter of 2020, compared to RMB77 million in the same period of 2019.

Adjusted net income attributable to KE Holdings Inc.⁶increased by 212.3% to RMB1,857 million (US$274 million) in the third quarter of 2020 from RMB595 million in the same period of 2019.

Net Income (loss) per ADS

Diluted net loss per ADS attributable to KE Holdings Inc.’s ordinary shareholders⁷ was RMB0.33 (US$0.05) in the third quarter of 2020, compared to RMB0.17 in the same period of 2019.

Adjusted diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders⁸ increased by 762.5% to RMB1.38 (US$0.20) in the third quarter of 2020 from RMB0.16 in the same period of 2019.

Cash, Cash Equivalents, Restricted Cash and Short-Term Investments

As of September 30, 2020, the combined balance of the Company’s cash, cash equivalents, restricted cash and short-term investments amounted to RMB59.2 billion (US$8.7 billion).

Business Outlook

For the fourth quarter of 2020, the Company expects total net revenues to be between RMB19.2 billion (US$2.8 billion) and RMB20.2 billion (US$3.0 billion), representing an increase of approximately 33.5% to 40.5% from the same quarter of 2019. This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change.

Conference Call Information

The Company will hold a conference call on 8:00 PM U.S. Eastern Time on Monday, November 16, 2020 (9:00 AM Beijing/Hong Kong Time on Tuesday, November 17, 2020) to discuss the financial results. Details for the conference call are as follows:

Event Title: KE Holdings Inc. Third Quarter 2020 Earnings Conference Call

Conference ID: 1175472

All participants must use the link provided below to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique registrant ID by email.

PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/1175472

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://investors.ke.com/.

The replay will be accessible through November 24, 2020, by dialing the following numbers:

United States Toll Free:

+1-855-452-5696

Mainland, China:

400-602-2065

Hong Kong, China:

+852-3051-2780

International:

+61-2-8199-0299

Conference ID:

1175472

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.7896 to US$1.00, the noon buying rate in effect on September 30, 2020, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Non-GAAP Financial Measures

The Company uses adjusted income (loss) from operations, adjusted net income (loss), adjusted net income (loss) attributable to KE Holdings Inc., adjusted operating margin, adjusted EBITDA and adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders, each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes. Beike believes that these non-GAAP financial measures help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that the Company includes in its net income (loss). Beike also believes that these non-GAAP financial measures provide useful information about its results of operations, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making. A limitation of using these non-GAAP financial measures is that these non-GAAP financial measures exclude share-based compensation expenses that have been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business.

The presentation of these non-GAAP financial measures should not be considered in isolation or construed as an alternative to gross profit, net income or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review these non-GAAP financial measures and the reconciliation to the most directly comparable GAAP measures. The non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Beike encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted income (loss) from operations is defined as income (loss) from operations, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, and (iii) changes in fair value of financial assets recognized as deemed marketing expenses. Adjusted operating margin is defined as adjusted income (loss) from operations as a percentage of net revenues. Adjusted net income (loss) is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration, and (iv) tax effects of the above non-GAAP adjustments. Adjusted net income (loss) attributable to KE Holdings Inc. is defined as net income (loss) attributable to KE Holdings Inc., excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration, (iv) tax effects of the above non-GAAP adjustments, and (v) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Adjusted EBITDA is defined as net income (loss), excluding (i) interest income, net, (ii) income tax expense (benefit), (iii) depreciation of property and equipment, (iv) amortization of intangible assets, (v) share-based compensation expenses, and (vi) changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration. Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted.

Please see the Unaudited reconciliation of GAAP and non-GAAP results included in this press release for a full reconciliation of each non-GAAP measure to its respective comparable GAAP measure.

About KE Holdings Inc.

KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building the industry infrastructure and standards in China to reinvent how service providers and housing customers efficiently navigate and consummate housing transactions, ranging from existing and new home sales, home rentals, to home renovation, real estate financial solutions, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 19 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build the industry infrastructure and standards and drive the rapid and sustainable growth of Beike.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Among other things, the business outlook and quotations from management in this press release, as well as Beike’s strategic and operational plans, contain forward-looking statements. Beike may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about KE Holdings Inc.’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Beike’s goals and strategies; Beike’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; Beike’s ability to empower services and facilitate transactions on Beike’s platform; competition in our industry; relevant government policies and regulations relating to our industry; Beike’s ability to protect the Company’s systems and infrastructures from cyber-attacks; Beike’s dependence on the integrity of brokerage brands, stores and agents on the Company’s platform; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in KE Holdings Inc.’s filings with the SEC. All information provided in this press release is as of the date of this press release, and KE Holdings Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

KE Holdings Inc.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share, per share data)

As of

December 31,

As of

September 30,

2019

2020

RMB

RMB

US$

ASSETS

Current assets

Cash and cash equivalents

24,319,332

38,046,404

5,603,630

Restricted cash

7,380,341

8,009,714

1,179,703

Short-term investments

1,844,595

13,156,851

1,937,795

Short-term financing receivables, net of allowance for credit losses

2,125,621

1,561,288

229,953

Accounts receivable, net of allowance for credit losses

8,093,219

10,840,817

1,596,680

Amounts due from and prepayments to related parties

927,306

462,733

68,153

Loan receivables from related parties

1,929,076

45,792

6,744

Prepayments, receivables and other assets

5,292,996

3,573,101

526,261

Total current assets

51,912,486

75,696,700

11,148,919

Non-current assets

Property and equipment, net

1,134,228

1,258,326

185,331

Right-of-use assets

5,625,015

6,131,448

903,065

Long-term financing receivables, net of allowance for credit losses

265,868

266,902

39,310

Long-term investments, net

2,333,745

2,461,657

362,563

Intangible assets, net

2,560,442

2,062,294

303,743

Goodwill

2,477,075

2,490,155

366,761

Non-current restricted cash

230,903

59,282

8,731

Other non-current assets

725,550

547,431

80,628

Total non-current assets

15,352,826

15,277,495

2,250,132

TOTAL ASSETS

67,265,312

90,974,195

13,399,051

KE Holdings Inc.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

(All amounts in thousands, except for share, per share data)

As of

December 31,

As of

September 30,

2019

2020

RMB

RMB

US$

LIABILITIES

Current liabilities

Accounts payable

4,212,705

6,302,947

928,324

Amounts due to related parties

263,659

196,799

28,985

Employee compensation and welfare payable

9,113,011

9,825,634

1,447,161

Customer deposits payable

4,382,803

6,439,696

948,465

Income taxes payable

994,815

289,824

42,686

Short-term borrowings

720,000

570,000

83,952

Lease liabilities current portion

2,222,745

2,437,774

359,045

Short-term funding debt

2,291,723

2,411,361

355,155

Contract liabilities

593,373

721,370

106,246

Accrued expenses and other current liabilities

3,002,841

2,531,795

372,893

Total current liabilities

27,797,675

31,727,200

4,672,912

Non-current liabilities

Deferred tax liabilities

22,446

22,446

3,306

Lease liabilities non-current portion

2,914,240

3,299,658

485,987

Long-term borrowings

4,890,030

4,698,996

692,087

Long-term funding debt

7,500

15,000

2,209

Other non-current liabilities

97,829

79,879

11,765

Total non-current liabilities

7,932,045

8,115,979

1,195,354

TOTAL LIABILITIES

35,729,720

39,843,179

5,868,266

KE Holdings Inc.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

(All amounts in thousands, except for share, per share data)

As of

December 31,

As of

September 30,

2019

2020

RMB

RMB

US$

MEZZANINE EQUITY

Series B convertible redeemable preferred shares (US$0.00002 par value; 750,000,000 shares authorized, 298,483,760 issued and outstanding with redemption value of 6,406,056 as of December 31, 2019; nil authorized, issued and outstanding as of September 30, 2020)

6,406,056

–

–

Series C convertible redeemable preferred shares (US$0.00002 par value; 750,000,000 shares authorized, 470,568,175 issued and outstanding with redemption value of 12,118,251 as of December 31, 2019; nil authorized, issued and outstanding as of September 30, 2020)

12,118,251

–

–

Series D convertible redeemable preferred shares (US$0.00002 par value; 1,000,000,000 shares authorized,430,835,530 issued and outstanding with redemption value of 11,831,223 as of December 31, 2019; nil authorized, issued and outstanding as of September 30, 2020)

11,831,223

–

–

Series D+ convertible redeemable preferred shares (US$0.00002 par value; 750,000,000 shares authorized, 310,879,155 issued and outstanding with redemption value of 10,017,365 as of December 31, 2019; nil authorized, issued and outstanding as of September 30, 2020)

10,017,365

–

–

TOTAL MEZZANINE EQUITY

40,372,895

–

–

KE Holdings Inc.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

(All amounts in thousands, except for share, per share data)

As of

December 31,

As of

September 30,

2019

2020

RMB

RMB

US$

SHAREHOLDERS’ EQUITY (DEFICIT)

KE Holdings Inc. shareholders’ equity (deficit)

Ordinary Shares (US$0.00002 par value; 25,000,000,000 ordinary shares authorized, comprising of 23,614,698,720 Class A ordinary shares, 885,301,280 Class B ordinary shares and 500,000,000 shares each of such classes to be designated, 584,865,410 and 2,544,836,855 Class A ordinary shares issued and outstanding as of December 31, 2019 and September 30, 2020; 885,301,280 Class B ordinary shares issued and outstanding as of December 31, 2019 and September 30, 2020)

202

466

69

Additional paid-in capital

2,533,889

61,565,221

9,067,577

Statutory reserves

253,732

253,791

37,379

Accumulated other comprehensive income (loss)

63,308

(531,354)

(78,260)

Accumulated deficit

(11,775,637)

(10,183,598)

(1,499,882)

Total KE Holdings Inc. shareholders’ equity (deficit)

(8,924,506)

51,104,526

7,526,883

Non-controlling interests

87,203

26,490

3,902

TOTAL SHAREHOLDERS’ EQUITY (DEFICIT)

(8,837,303)

51,131,016

7,530,785

TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT)

67,265,312

90,974,195

13,399,051

KE Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands, except for share, per share data, ADS and per ADS data)

Three months ended

Nine months ended

September 30,

2019

September 30,

2020

September 30,

2020

September 30,

2019

September 30,

2020

September 30,

2020

RMB

RMB

US$

RMB

RMB

US$

Net revenues

Existing home transaction services

6,054,779

8,849,706

1,303,421

18,699,359

21,404,907

3,152,602

New home transaction services

5,679,371

11,074,424

1,631,086

12,156,223

25,051,136

3,689,634

Emerging and other services

288,509

624,785

92,021

777,782

1,354,290

199,465

Total net revenues

12,022,659

20,548,915

3,026,528

31,633,364

47,810,333

7,041,701

Cost of revenues

Commission-split

(3,173,874)

(7,736,904)

(1,139,523)

(5,669,481)

(16,115,155)

(2,373,506)

Commission and compensation-internal

(4,862,917)

(6,624,055)

(975,618)

(14,545,589)

(16,534,075)

(2,435,206)

Cost related to stores

(799,071)

(832,719)

(122,646)

(2,283,714)

(2,260,339)

(332,912)

Others

(247,328)

(972,007)

(143,161)

(614,297)

(1,465,127)

(215,790)

Total cost of revenues⁽¹⁾

(9,083,190)

(16,165,685)

(2,380,948)

(23,113,081)

(36,374,696)

(5,357,414)

Gross profit

2,939,469

4,383,230

645,580

8,520,283

11,435,637

1,684,287

Operating expenses

Sales and marketing expenses⁽¹⁾

(736,579)

(1,026,479)

(151,184)

(2,274,976)

(2,391,909)

(352,290)

General and administrative expenses⁽¹⁾

(1,367,166)

(2,648,678)

(390,108)

(3,814,881)

(5,705,203)

(840,286)

Research and development expenses⁽¹⁾

(436,056)

(789,089)

(116,220)

(1,093,089)

(1,763,520)

(259,738)

Total operating expenses

(2,539,801)

(4,464,246)

(657,512)

(7,182,946)

(9,860,632)

(1,452,314)

Income/(loss) from operations

399,668

(81,016)

(11,932)

1,337,337

1,575,005

231,973

Interest income, net

64,835

22,231

3,274

168,378

158,926

23,407

Share of results of equity investees

4,803

7,138

1,051

14,431

4,812

709

Fair value changes in investments, net

(9,548)

76,277

11,234

11,825

55,968

8,243

Foreign currency exchange loss

(13,753)

(8,096)

(1,192)

(20,853)

(684)

(101)

Other income, net

255,376

317,798

46,807

329,659

780,585

114,968

Income before income tax expense

701,381

334,332

49,242

1,840,777

2,574,612

379,199

Income tax expense

(317,120)

(258,991)

(38,145)

(899,504)

(891,845)

(131,355)

Net income

384,261

75,341

11,097

941,273

1,682,767

247,844

Less: net income attributable to non-controlling interests shareholders

2,907

644

95

3,488

152

22

Net income attributable to KE Holdings Inc.

381,354

74,697

11,002

937,785

1,682,615

247,822

Accretion on convertible redeemable preferred shares to redemption value

(457,938)

(346,143)

(50,981)

(1,288,686)

(1,755,228)

(258,517)

Net loss attributable to KE Holdings Inc.’s ordinary shareholders

(76,584)

(271,446)

(39,979)

(350,901)

(72,613)

(10,695)

Net income

384,261

75,341

11,097

941,273

1,682,767

247,844

Currency translation adjustments

189,642

(745,045)

(109,733)

216,591

(594,662)

(87,584)

Total comprehensive income/(loss)

573,903

(669,704)

(98,636)

1,157,864

1,088,105

160,260

Less: comprehensive income attributable to non-controlling interests shareholders

2,907

644

95

3,488

152

22

Comprehensive income/(loss) attributable to KE Holdings Inc.

570,996

(670,348)

(98,731)

1,154,376

1,087,953

160,238

Accretion on convertible redeemable preferred shares to redemption value

(457,938)

(346,143)

(50,981)

(1,288,686)

(1,755,228)

(258,517)

Comprehensive income/(loss) attributable to KE Holdings Inc.’s ordinary shareholders

113,058

(1,016,491)

(149,712)

(134,310)

(667,275)

(98,279)

KE Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)

(All amounts in thousands, except for share, per share data, ADS and per ADS data)

Three months ended

Nine months ended

September 30,

2019

September 30,

2020

September 30,

2020

September 30,

2019

September 30,

2020

September 30,

2020

RMB

RMB

US$

RMB

RMB

US$

Weighted average number of ordinary shares used in computing net loss per share, basic and diluted

—Basic

1,368,472,536

2,470,138,350

2,470,138,350

1,375,633,568

1,812,367,756

1,812,367,756

—Diluted

1,368,472,536

2,470,138,350

2,470,138,350

1,375,633,568

1,812,367,756

1,812,367,756

Weighted average number of ADS used in computing net loss per ADS, basic and diluted

—Basic

456,157,512

823,379,450

823,379,450

458,544,523

604,122,585

604,122,585

—Diluted

456,157,512

823,379,450

823,379,450

458,544,523

604,122,585

604,122,585

Net loss per share attributable to KE Holdings Inc.’s ordinary shareholders

—Basic

(0.06)

(0.11)

(0.02)

(0.26)

(0.04)

(0.01)

—Diluted

(0.06)

(0.11)

(0.02)

(0.26)

(0.04)

(0.01)

Net loss per ADS attributable to KE Holdings Inc.’s ordinary shareholders

—Basic

(0.17)

(0.33)

(0.05)

(0.77)

(0.12)

(0.02)

—Diluted

(0.17)

(0.33)

(0.05)

(0.77)

(0.12)

(0.02)

(1) Includes share-based compensation expenses as follows:

Cost of revenues

–

435,021

64,072

–

435,021

64,072

Sales and marketing expenses

–

47,362

6,976

–

47,362

6,976

General and administrative expenses

63,238

901,692

132,805

109,286

901,692

132,805

Research and development expenses

–

284,120

41,846

–

284,120

41,846

KE Holdings Inc.

UNAUDITED RECONCILIATION of GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for share, per share data, ADS and per ADS data)

Three months ended

Nine months ended

September 30,

2019

September 30,

2020

September 30,

2020

September 30,

2019

September 30,

2020

September 30,

2020

RMB

RMB

US$

RMB

RMB

US$

Income/(loss) from operations

399,668

(81,016)

(11,932)

1,337,337

1,575,005

231,973

Share-based compensation expenses

63,238

1,668,195

245,699

109,286

1,668,195

245,699

Amortization of intangible assets resulting from acquisitions and business cooperation agreement

147,361

152,685

22,488

297,027

461,286

67,940

Changes in fair value of financial assets recognized as deemed marketing expenses

–

–

–

274,772

–

–

Adjusted income from operations

610,267

1,739,864

256,255

2,018,422

3,704,486

545,612

Net income

384,261

75,341

11,097

941,273

1,682,767

247,844

Share-based compensation expenses

63,238

1,668,195

245,699

109,286

1,668,195

245,699

Amortization of intangible assets resulting from acquisitions and business cooperation agreement

147,361

152,685

22,488

297,027

461,286

67,940

Changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration

3,037

(36,499)

(5,376)

262,908

(91,030)

(13,407)

Tax effects on non-GAAP adjustments

430

(1,510)

(222)

1,290

(2,325)

(342)

Adjusted net income

598,327

1,858,212

273,686

1,611,784

3,718,893

547,734

Net income

384,261

75,341

11,097

941,273

1,682,767

247,844

Income tax expense

317,120

258,991

38,145

899,504

891,845

131,355

Share-based compensation expenses

63,238

1,668,195

245,699

109,286

1,668,195

245,699

Amortization of intangible assets

153,437

155,728

22,936

310,973

475,796

70,077

Depreciation of property and equipment

154,599

148,061

21,807

434,814

372,022

54,793

Interest income, net

(64,835)

(22,231)

(3,274)

(168,378)

(158,926)

(23,407)

Changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration

3,037

(36,499)

(5,376)

262,908

(91,030)

(13,407)

Adjusted EBITDA

1,010,857

2,247,586

331,034

2,790,380

4,840,669

712,954

Net income attributable to KE Holdings Inc.

381,354

74,697

11,002

937,785

1,682,615

247,822

Share-based compensation expenses

63,238

1,668,195

245,699

109,286

1,668,195

245,699

Amortization of intangible assets resulting from acquisitions and business cooperation agreement

147,361

152,685

22,488

297,027

461,286

67,940

Changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration

3,037

(36,499)

(5,376)

262,908

(91,030)

(13,407)

Tax effects on non-GAAP adjustments

430

(1,510)

(222)

1,290

(2,325)

(342)

Effects of non-GAAP adjustments on net income attributable to non-controlling interests shareholders

(597)

(90)

(13)

(597)

(1,593)

(235)

Adjusted Net income attributable to KE Holdings Inc.

594,823

1,857,478

273,578

1,607,699

3,717,148

547,477

Accretion on convertible redeemable preferred shares to redemption value

(457,938)

(346,143)

(50,981)

(1,288,686)

(1,755,228)

(258,517)

Adjusted net income allocated to participating preferred shares

(60,656)

(342,033)

(50,376)

(138,180)

(799,341)

(117,730)

Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders

76,229

1,169,302

172,221

180,833

1,162,579

171,230

KE Holdings Inc.

UNAUDITED RECONCILIATION of GAAP AND NON-GAAP RESULTS (Continued)

(All amounts in thousands, except for share, per share data, ADS and per ADS data)

Three months ended

Nine months ended

September 30,

2019

September 30,

2020

September 30,

2020

September 30,

2019

September 30,

2020

September 30,

2020

RMB

RMB

US$

RMB

RMB

US$

Weighted average number of ADS used in computing net loss per ADS, basic and diluted

—Basic

456,157,512

823,379,450

823,379,450

458,544,523

604,122,585

604,122,585

—Diluted

456,157,512

823,379,450

823,379,450

458,544,523

604,122,585

604,122,585

Weighted average number of ADS used in calculating adjusted net income per ADS, basic and diluted

—Basic

456,157,512

823,379,450

823,379,450

458,544,523

604,122,585

604,122,585

—Diluted

462,625,667

844,473,061

844,473,061

460,700,574

617,202,590

617,202,590

Net loss per ADS attributable to KE Holdings Inc.’s ordinary shareholders

—Basic

(0.17)

(0.33)

(0.05)

(0.77)

(0.12)

(0.02)

—Diluted

(0.17)

(0.33)

(0.05)

(0.77)

(0.12)

(0.02)

Non-GAAP adjustments to net loss per ADS attributable to KE Holdings Inc.’s ordinary shareholders

—Basic

0.34

1.75

0.26

1.16

2.04

0.30

—Diluted

0.33

1.71

0.25

1.16

2.00

0.30

Adjusted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders

—Basic

0.17

1.42

0.21

0.39

1.92

0.28

—Diluted

0.16

1.38

0.20

0.39

1.88

0.28

KE Holdings Inc.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in thousands)

Three months ended

Nine months ended

September 30,

2019

September 30,

2020

September 30,

2020

September 30,

2019

September 30,

2020

September 30,

2020

RMB

RMB

US$

RMB

RMB

US$

Net cash provided by operating activities

1,257,660

3,213,000

473,224

739,534

8,257,465

1,216,194

Net cash provided by/(used in) investing activities

132,616

(6,945,255)

(1,022,926)

(1,505,524)

(9,369,789)

(1,380,021)

Net cash provided by/(used in) financing activities

(2,222,516)

16,565,408

2,439,821

3,832,144

15,996,088

2,355,968

Effect of exchange rate change on cash, cash equivalents and restricted cash

109,779

(815,884)

(120,167)

133,779

(698,940)

(102,942)

Net increase/(decrease) in cash and cash equivalents and restricted cash

(722,461)

12,017,269

1,769,952

3,199,933

14,184,824

2,089,199

Cash, cash equivalents and restricted cash at the beginning of the period

16,682,592

34,098,131

5,022,112

12,760,198

31,930,576

4,702,865

Cash, cash equivalents and restricted cash at the end of the period

15,960,131

46,115,400

6,792,064

15,960,131

46,115,400

6,792,064

KE Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CONTRIBUTION

(All amounts in thousands)

Three months ended

Nine months ended

September 30,

2019

September 30,

2020

September 30,

2020

September 30,

2019

September 30,

2020

September 30,

2020

RMB

RMB

US$

RMB

RMB

US$

Existing home transaction services

Net revenues

6,054,779

8,849,706

1,303,421

18,699,359

21,404,907

3,152,602

Less: Commission and compensation

(3,704,803)

(5,133,485)

(756,081)

(11,327,588)

(12,842,121)

(1,891,440)

Contribution

2,349,976

3,716,221

547,340

7,371,771

8,562,786

1,261,162

New home transaction services

Net revenues

5,679,371

11,074,424

1,631,086

12,156,223

25,051,136

3,689,634

Less: Commission and compensation

(4,278,281)

(9,128,976)

(1,344,553)

(8,742,069)

(19,602,097)

(2,887,077)

Contribution

1,401,090

1,945,448

286,533

3,414,154

5,449,039

802,557

Emerging and other services

Net revenues

288,509

624,785

92,021

777,782

1,354,290

199,465

Less: Commission and compensation

(53,707)

(98,498)

(14,507)

(145,413)

(205,012)

(30,195)

Contribution

234,802

526,287

77,514

632,369

1,149,278

169,270

_____________________________________

¹ GTV for a given period is calculated as the total value of all transactions which the Company facilitated on the Company’s platform and evidenced by signed contracts as of the end of the period, including the value of the existing home transactions, new home transactions and emerging and other services, and including transactions that are contracted but pending closing at the end of period.

²Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration, and (iv) tax effects of the above non-GAAP adjustments. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.

³Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile active users (including Beike or Lianjia mobile app, and Weixin Mini Programs) for each month of such period, by (ii) the number of months in such period.

⁴Adjusted income (loss) from operations is a non-GAAP financial measure, which is defined as income (loss) from operations, excluding (i) share-based compensation expenses, and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, and (iii) changes in fair value of financial assets recognized as deemed marketing expenses. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.

⁵Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) interest income, net, (ii) income tax expense (benefit), (iii) depreciation of property and equipment, (iv) amortization of intangible assets, (v) share-based compensation expenses, and (vi) changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.

⁶ Adjusted net income (loss) attributable to KE Holdings Inc. is a non-GAAP financial measure and represents adjusted income (loss) attributable to KE Holdings Inc’s ordinary shareholders and preferred shareholders, and all preferred shares of KE Holdings Inc. had been automatically converted to ordinary shares upon initial public offering of KE Holdings Inc. on a one-for-one basis. Adjusted net income (loss) attributable to KE Holdings Inc. is defined as net income (loss) attributable to KE Holdings Inc., excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration, (iv) tax effects of the above non-GAAP adjustments, and (v) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.

⁷ ADS is American Depositary Share. Each ADS represents three Class A ordinary shares of the Company. Diluted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is net income (loss) attributable to ordinary shareholders divided by weighted average number of diluted ADS.

⁸Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116005998/en/

For investor and media inquiries, please contact:

In China:

KE Holdings Inc.

Investor Relations

Matthew Zhao

Siting Li

E-mail: [email protected]

The Piacente Group, Inc.

Ross Warner

Tel: +86-10-6508-0677

E-mail: [email protected]

In the United States:

The Piacente Group, Inc.

Brandi Piacente

Tel: +1-212-481-2050

E-mail: [email protected]

KEYWORDS: China Asia Pacific

INDUSTRY KEYWORDS: Networks Internet Professional Services Other Professional Services Technology

MEDIA:

Posted on November 16, 2020 4:03 pm
Novus Therapeutics Reports Third Quarter 2020 Financial Results

Novus Therapeutics Reports Third Quarter 2020 Financial Results

Company to host conference call and webcast at 4:30pm ET today

IRVINE, Calif.–(BUSINESS WIRE)–
Novus Therapeutics, Inc. (“Novus”) (NASDAQ: NVUS), a clinical stage biopharmaceutical company focused on developing life-changing, targeted medicines for patients undergoing organ or cellular transplantation, as well as those living with immunological diseases, today reported its financial results for the quarter ended September 30, 2020, and operational highlights.

Recent Business Highlights

Completed the acquisition of Anelixis Therapeutics, Inc., a privately held clinical stage biotechnology company developing a next generation anti-CD40 Ligand (CD40L) antibody

Completed a private placement financing expected to result in gross proceeds to Novus of approximately $108 million before deducting placement agent and other offering expenses

Commenced enrollment in a phase 2 clinical trial of AT-1501 in adults with amyotrophic lateral sclerosis (ALS) in October 2020

“During the quarter, we accomplished three key transformational objectives focused on increasing shareholder value,” said David-Alexandre C. Gros, M.D., Chief Executive Officer of Novus Therapeutics, Inc. “First, we acquired a potential best in class asset, Anelixis’ AT-1501 anti-CD40L antibody, a well-validated target with broad therapeutic possibilities. Second, we financed Novus to have sufficient capital to execute up to four Phase 2 clinical trials with AT-1501 in different high-need indications. Third, we integrated the companies without losing momentum and were able to launch AT-1501’s Phase 2 trial in adults with ALS as planned. We now have the scientific, organizational and financial resources to rapidly advance this asset in multiple other indications over the coming quarters, setting the stage for a catalyst-rich 2021.”

Financial Results for the Three and Nine Months Ended September 30, 2020

The company reported a net loss of $6.1 million, or $5.51 per share, for the three months ended September 30, 2020, compared to a net loss of $2.9 million, or $4.01 per share, for the same period in 2019. The company reported a net loss of $16.9 million, or $16.81 per share, for the nine months ended September 30, 2020, compared to a net loss of $11.9 million, or $18.74 per share, for the same period in 2019.

R&D expenses were $615,000 for the three months ended September 30, 2020, compared to $1.5 million for the same period in 2019. The decrease in R&D expenses of $894,000 was primarily due to decreases in clinical costs, formulation development costs, personnel costs, consulting services, and travel and meetings expenses. The decreases were partially offset by an increase in stock-based compensation expense. These decreases were made following the completion of our Phase 2a study of our legacy lead program in acute otitis media and the subsequent suspension of development activities as we assessed strategic options. We expect our research and development costs to increase in future periods as we proceed with the development of AT-1501.

G&A expenses were $3.7 million for the three months ended September 30, 2020, compared to $1.4 million for the same period in 2019. The increase in G&A expenses of $2.3 million was primarily due to increases in merger related costs incurred in the third quarter, stock-based compensation, and general operating costs. The increases were partially offset by decreases in litigation costs, personnel costs, costs associated with operating a publicly traded company, and travel and meetings expenses due to the ongoing pandemic. Following the completion of Anelixis acquisition, we expect our general and administrative expenses to increase in future periods, as we have a larger headcount and incur expenses relating to the development of a larger product pipeline.

R&D expenses were $3.1 million for the nine months ended September 30, 2020, compared to $6.8 million for the same period in 2019. The decrease in R&D expenses of $3.7 million was primarily due to decreases in clinical costs, formulation development costs, personnel costs, consulting services, travel and meetings expenses and other development costs. The decreases were partially offset by an increase in stock-based compensation expense. These decreases were made following the completion of our Phase 2a study of our legacy lead program in acute otitis media and the subsequent suspension of development activities as we assess strategic options. We expect our research and development costs to increase in future periods as we proceed with the development of AT-1501.

G&A expenses were $6.7 million for the nine months ended September 30, 2020, compared to $5.1 million for the same period in 2019. The increase in G&A expenses of $1.6 million was primarily due to increases in merger related costs, stock-based compensation, and general operating costs. The increases were partially offset by decreases in litigation costs, costs associated with operating a publicly traded company, personnel costs, and travel and meetings expenses due to the ongoing pandemic. Following the completion of Anelixis acquisition, we expect our general and administrative expenses to increase in future periods, as we have a larger headcount and incur expenses relating to the development of a larger product pipeline.

During the period, the company recognized $2.3 million in restructuring expenses.

The company had $114.5 million in cash and cash equivalents as of September 30, 2020, compared to $8.8 million as of December 31, 2019.

Conference Call & Webcast

4:30 PM Eastern Time / 1:30 PM Pacific Time

Toll Free:

877-407-3982

International:

201-493-6780

Conference ID:

13713171

Webcast:

http://public.viavid.com/index.php?id=142451

About AT-1501

AT-1501 is a humanized IgG1 anti-CD40L antibody with high affinity for CD40L, a well-validated target with broad therapeutic potential. The CD40/CD40L pathway plays a central role in generating pro-inflammatory responses in autoimmune disease, allograft transplant rejection, and neuroinflammation. In a Phase 1 safety study of healthy volunteers and adults with ALS, AT-1501 was well tolerated at all doses tested. AT-1501 previously received orphan drug designation from the U.S. Food and Drug Administration for the treatment of ALS.

About Novus Therapeutics

Novus Therapeutics, Inc. is a clinical stage biotechnology company using its expertise in targeting the CD40L pathway to develop potential treatments for people requiring an organ or cell-based transplant, and for people with living with immunological diseases. Novus is headquartered in Irvine, Calif. For more information, please visit the company’s website at www.novustherapeutics.com.

Follow Novus Therapeutics on social media: @Novus_Thera and LinkedIn.

Forward-Looking Statements

This press release contains forward-looking statements that involves substantial risks and uncertainties. Any statements about the company’s future expectations, plans and prospects, including statements about its strategy, future operations, development of its product candidates, and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “estimates,” “intends,” “predicts,” “projects,” “targets,” “looks forward,” “could,” “may,” and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, although not all forward-looking statements include such identifying words. Forward-looking statements include, but are not limited to statements regarding: risks related to market conditions; expectations regarding the timing for the commencement of future clinical trials; expectations regarding the success of clinical trials; the rate and degree of market acceptance and clinical utility of the company’s products; the company’s estimates regarding expenses and cash runway; and the impact of the ongoing coronavirus pandemic. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors. These risks and uncertainties, as well as other risks and uncertainties that could cause the company’s actual results to differ significantly from the forward-looking statements contained herein, are discussed in our quarterly 10-Q, annual 10-K, and other filings with the SEC, which can be found at www.sec.gov. Any forward-looking statements contained in this press release speak only as of the date hereof and not of any future date, and the company expressly disclaims any intent to update any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com:

NOVUS THERAPEUTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

September 30,

2020

December 31,

2019

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

114,464

$

8,791

Prepaid expenses and other current assets

637

1,180

Total current assets

115,101

9,971

Property and equipment, net

—

5

Operating lease asset, net

183

316

Goodwill

44,466

—

In-process research and development

32,386

—

Other assets

449

639

Total assets

$

192,585

$

10,931

LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

758

$

329

Current operating lease liability

191

180

Accrued severance

803

—

Accrued expenses and other liabilities

4,378

813

Total current liabilities

6,130

1,322

Non-current operating lease liability

—

144

Total liabilities

6,130

1,466

Commitments and contingencies (Note 5)

Series X¹non-voting convertible preferred stock, $0.001 par value, 515,000 shares authorized;

339,138 and no shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

164,949

—

Stockholders’ equity:

Series X preferred stock, $0.001 par value, 10,000 shares authorized;

511 and no shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

—

—

Common stock, $0.001 par value, 200,000,000 shares authorized at September 30, 2020 and December 31, 2019;

1,274,631 and 720,408 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

1

1

Additional paid-in capital

95,994

67,046

Accumulated deficit

(74,489

)

(57,582

)

Total stockholders’ equity

21,506

9,465

Total liabilities, convertible preferred stock and stockholders’ equity

$

192,585

$

10,931

NOVUS THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except share and per share data)

(Unaudited)

For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

2020

2019

2020

2019

Operating expenses

Research and development

$

615

$

1,509

$

3,095

$

6,795

General and administrative

3,731

1,411

6,730

5,089

Restructuring expense

1,802

—

2,292

—

Total operating expenses

6,148

2,920

12,117

11,884

Loss from operations

(6,148

)

(2,920

)

(12,117

)

(11,884

)

Other income, net

4

27

39

17

Warrant inducement expense

—

—

(4,829

)

—

Net loss and comprehensive loss

$

(6,144

)

$

(2,893

)

$

(16,907

)

$

(11,867

)

Net loss per share, basic and diluted

$

(5.51

)

$

(4.01

)

$

(16.81

)

$

(18.74

)

Weighted-average common shares outstanding, basic and diluted

1,114,133

720,829

1,006,008

633,187

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116005994/en/

Media:

Amanda Sellers

[email protected]

301.332.5574

Investors:

Bruce Mackle

LifeSci Advisors, LLC

[email protected]

929.469.3859

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Health Stem Cells Genetics General Health Clinical Trials Pharmaceutical Biotechnology

MEDIA:

Logo

Posted on November 16, 2020 4:03 pm
GAN Reports Third Quarter 2020 Financial Results

GAN Reports Third Quarter 2020 Financial Results

New Customer Wins and Readiness for Michigan Launch Drives 86% Year-over-Year Increase in Quarterly Revenue

Coolbet acquisition to bring additional scale and provides near-turnkey capabilities in Online Sports Betting to enhance GAN’s Business-to-Business platform offerings

IRVINE, Calif.–(BUSINESS WIRE)–
GAN Limited (the “Company” or “GAN”) (NASDAQ: GAN), a leading business-to-business supplier of internet gaming software-as-a-service solutions primarily to the U.S. land-based casino industry, today reported its unaudited financial results for third quarter ended September 30, 2020.

Third Quarter Highlights Compared to Prior Year Quarter

Quarterly revenue of $10.3 million, up 86% from $5.5 million

Real money Internet gaming (“RMiG”) revenue of $7.7 million, up from $4.1 million

Simulated gaming revenue of $2.6 million, up from $1.4 million

Gross profit of $6.4 million, up from $2.4 million

Net loss attributable to equity holders was $4.1 million, or $0.14 basic and diluted per share, compared to net loss attributable to equity holders of $1.8 million, or $0.09 basic and diluted per share

Gross Operator Revenue⁽¹⁾ increased 76% to $142.3 million

Active Player-Days⁽²⁾ and Average Revenue per Daily Active User⁽³⁾ (“ARPDAU”) increased 38% and 27%, respectively

Adjusted EBITDA⁽⁴⁾ was $(0.1) million, up from $(0.4) million

Pending acquisition of Vincent Group p.l.c.(“Coolbet”) for €149.1 million, a best-in-class RMiG platform with both Online Sports Betting (“OSB”) and iGaming offerings, and a diversified revenue stream across Northern Europe, Latin America and Canada

Dermot Smurfit, CEO of GAN stated:

“We built strong momentum in the third quarter and our results were in-line with our expectations. We added multiple new RMiG and Simulated Gaming customers over the last several months, demonstrating the unique and highly differentiated capabilities of our SaaS platform for integrated iGaming and Online Sports Betting. GAN continues to prove it’s the leading partner of choice for land-based casinos through an expanding solution offering, that allows our customers to quickly and efficiently expand their reach across the online gaming space. Our new customer pipeline in the U.S. remains strong and we’re building exciting relationships that we believe have the ability to scale across our customers’ casino portfolios as more states come online in the future. Our business remains strongly positioned to leverage the momentum of online sports betting and iGaming, which is clearly accelerating across the globe.”

“I am also excited to announce the strategic acquisition of Coolbet, as we continue developing and investing in our capabilities. Coolbet is a best-in-class RMiG provider, with both Online Sports Betting and iGaming offerings. The acquisition will allow GAN to provide near-turnkey capabilities in Online Sports Betting, rounding out our B2B platform offering in the U.S. We view this acquisition as the next strategic move in our growth strategy as we look to diversify our business model and geographic exposure. Enhancing our B2B platform with Coolbet’s solutions will allow us to leverage their proprietary OSB technology, engineering and know-how. We look forward to welcoming the Coolbet team to GAN and have already started to work diligently around our integration plans as we look to finalize the transaction over the next few months.”

Third Quarter 2020 Compared to Third Quarter 2019

Key Financial Highlights (Unaudited)

Three Months Ended September 30, 2020 and 2019

(in thousands of US$)

Three months ended

September 30,

2020

2019

Revenue

RMiG Revenue

7,689

4,127

Simulated Gaming Revenue

2,577

1,389

Total Revenue

10,266

5,516

Profitability Measures

RMiG gross profit margin

73

%

64

%

Simulated Gaming gross profit margin

58

%

57

%

Net loss attributable to equity holders

(4,078

)

(1,834

)

Adjusted EBITDA⁽⁴⁾

(114

)

(372

)

Key Performance Indicators

Gross Operator Revenue⁽¹⁾ (US$ millions)

142.3

80.8

Active Player-Days⁽²⁾ (in millions)

7.5

5.4

ARPDAU⁽³⁾(US$)

18.93

14.89

Gross Profit – Gross Profit for the third quarter of 2020 was $6.4 million or 62% compared to $2.4 million or 44% for the third quarter of 2019. RMiG gross profit increased by $3.0 million which was primarily attributable to new customer launches and organic growth, partially offset by the impact of lower margin hardware equipment sales in the third quarter of 2020. Simulated Gaming gross profit increased by $0.7 million, which was attributable to organic growth. The Company’s depreciation and amortization included in cost of revenue was $0.8 million, a decrease of $0.3 million from the third quarter of 2019 due to certain development assets becoming fully amortized prior to third quarter of 2020.

Administrative Expenses – Administrative expenses for the third quarter of 2020 were $10.4 million compared to $4.1 million for the third quarter of 2019. The increase in administrative expenses was primarily attributable to (i) personnel and related costs of increasing from approximately 141 employees to 215 employees, (ii) share-based compensation for directors and key personnel, and (iii) increased professional services related to capital markets advisory, consulting, accounting advisory, tax advisory and legal expenses incurred in connection with corporate infrastructure and expansion projects, and additional compliance requirements as a result of becoming a public company in the United States in May 2020.

Additionally, the Company incurred $0.9 million of charges related to estimated tax provisions. These estimated tax provisions are the result of tax advisory services and internal audits pertaining to VAT, as well as potential application of the South Dakota v. Wayfair Supreme Court decision on June 21, 2018 as it related to U.S. sales and use taxes.

Net Loss Attributable to Equity Holders – Net loss attributable to equity holders was $4.1 million, or $0.14 per diluted share, compared to net loss attributable to equity holders of $1.8 million, or $0.09 per diluted share for the third quarter of the prior year.

Adjusted EBITDA – Adjusted EBITDA for the third quarter of 2020 was $(0.1) million, compared to $(0.4) million for the third quarter of 2019. The increase was primarily driven by growth partially offset by higher administrative expenses.

Cash and Cash Equivalents – Cash and cash equivalents were $57.5 million at September 30, 2020, compared to $10.1 million at December 31, 2019. Increased cash and cash equivalents primarily reflect the net proceeds received from the Company’s initial public offering residing in an interest-bearing account.

Coolbet Share Exchange Agreement

GAN announced today that it entered into a Share Exchange Agreement to acquire the Vincent Group p.l.c., and its flagship Coolbet brand for total consideration of €149.1 million (subject to adjustment as provided in the Share Exchange Agreement). The acquisition is expected to close in the first quarter of 2021, subject to regulatory review and the satisfaction of certain closing conditions. GAN expects to fund the acquisition with €80 million in cash and the remainder through an exchange of the Company’s ordinary shares. Please see GAN’s release on the announcement of the acquisition that was issued today for more details.

Outlook

Dermot Smurfit, CEO of GAN concluded:

“We look forward to the potential launch of multiple customers in Michigan, which are anticipated to go live in December. We are reiterating our previous outlook of $37 to $39 million in revenue this year, which includes IP licensing related deals subject to timing variability. Our pipeline remains robust, and we expect to see gross operator revenue accelerate as we progress through 2021. We also look forward to finalizing the acquisition of Coolbet in early 2021 and believe it will bring advantageous scale, geographic diversity and opportunity, as well as near-turnkey capabilities in Online Sports Betting that will help us further differentiate and enhance our U.S. platform. We remain confident that our unique position, differentiated solutions, strong management team, and solid financial position will enable us to continue to grow throughout 2021 and beyond.”

Conference Call Details

Date/Time:

Monday, November 16, 2020, at 4:30 PM EST

Webcast:

https://www.webcast-eqs.com/ganlimited20201116/en

U.S. Toll-Free Dial In:

(877) 407-0989

International Dial In:

(201) 389-0921

To access the call, please dial in approximately ten minutes before the start of the call. An accompanying slide presentation will be available in PDF format on the, “Results and Presentations” page of the Company’s website (http://gan.com/investors/results-and-presentations) after issuance of the earnings release.

About GAN Limited

GAN is a leading business-to-business supplier of internet gambling software-as-a-service solutions predominantly to the U.S. land-based casino industry. GAN has developed a proprietary internet gambling enterprise software system, GameSTACK™, which it licenses to land-based casino operators as a turnkey technology solution for regulated real-money internet gambling, encompassing internet gaming, internet sports gaming and virtual Simulated Gaming.

Non-GAAP Financial Measures

⁽¹⁾The Company defines Gross Operator Revenue as the sum of its corporate customers’ gross revenue from Simulated Gaming, gross gaming revenue from real money regulated iGaming, and gross sports win from real money regulated sports betting. Gross Operator Revenue, which is not comparable to financial information presented in conformity with GAAP, gives management and users an indication of the extent of transactions processed through the Company’s corporate customers’ platforms and allows management to understand the extent of activity that the Company’s platform is processing.

⁽²⁾The Company defines Active Player-Days as unique individuals who log on and wager each day (either wagering with real money or playing with virtual credits used in Simulated Gaming), aggregated during the calendar year period. By way of illustrative example: one (1) unique individual logging in and wagering each day in a single calendar year would, in aggregate, represent 365 Active Player-Days. Active Player-Days provides an indicator of consistent and daily interaction that individuals have with the Company’s platforms. Active Player-Days allows management and users to understand not only total users who interact with the platform but gives an idea of the frequency to which users are interacting with the platform, as someone who logs on and wagers multiple days are weighted heavier during the period than the user who only logs on and wagers one day.

⁽³⁾The Company defines Average Revenue per Daily Active User (“ARPDAU”) as Gross Operator Revenue divided by the identified number of Active Player-Days. ARPDAU allows management to measure the value per daily user and track user interaction with the platforms, which helps both management and users of financial statements to understand the value per user that is driven by marketing efforts and data analysis obtained from the Company’s platforms.

⁽⁴⁾Adjusted EBITDA is a non-GAAP financial measure that is provided as supplemental disclosure which is defined as net income (loss) attributable to equity holders before finance costs, income taxes, depreciation and amortization, share-based payment expense and related expense, initial public offering related costs and other items which our Board of Directors considers to be infrequent or unusual in nature. The infrequent or unusual items related to accruals for resolution of outstanding VAT taxes and outstanding U.S. sales and use taxes for the three and nine months ended September 30, 2020.

Management uses the non-GAAP measure Adjusted EBITDA to measure its financial performance. Specifically, it uses Adjusted EBITDA (1) as a measure to compare its operating performance from period to period, as it removes the effect of items not directly resulting from core operations and (2) as a means of assessing its core business performance against others in the industry, because it eliminates some of the effects that are generated by differences in capital structure, depreciation, tax effects and unusual and infrequent events. The presentation of Adjusted EBITDA is not intended to be used in isolation or as a substitute for any measure prepared in accordance with GAAP. Adjusted EBITDA, as defined, may not be comparable to similarly titled measures used by other companies in the industry, and Adjusted EBITDA may exclude financial information that some investors may consider important in evaluating the Company’s performance. Adjusted EBITDA, as calculated by the Company, along with a reconciliation to net income (loss) attributable to equity holders, the comparable GAAP equivalent measure, is included below.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the pending acquisition of Coolbet and the anticipated benefits to the Company related thereto, the timing of closing the Coolbet acquisition, the Company’s 2020 revenue guidance, the strength of the Company’s customer pipeline and ability to scale as more states legalize real money iGaming, the Company’s competitive position with respect to iGaming and online sports betting, anticipated trends in revenues (including new customer launches), operating expenses and gross operator revenue, and management’s expectation of continued growth throughout 2021 and beyond, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements for any reason, except as required by law.

No Offer of Securities

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”).

GAN Limited
Interim Condensed Consolidated Statement of Operations (Unaudited)
Three and Nine Months Ended September 30, 2020 and 2019
(in thousands of US$, except share data)

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Revenue

10,266

5,516

26,259

19,280

Cost of revenue

3,894

3,099

9,338

10,177

Gross profit

6,372

2,417

16,921

9,103

Administrative expenses

10,430

4,079

28,540

10,146

Operating loss

(4,058

)

(1,662

)

(11,619

)

(1,043

)

Net finance costs

25

31

454

93

Loss before income taxes

(4,083

)

(1,693

)

(12,073

)

(1,136

)

Income tax (benefit) expense

(5

)

141

312

409

Net loss attributable to equity holders of the Parent

(4,078

)

(1,834

)

(12,385

)

(1,545

)

Loss per share attributable to ordinary shareholders, basic and diluted

(0.14

)

(0.09

)

(0.48

)

(0.07

)

Weighted average shares outstanding, basic and diluted

29,571,905

21,362,133

25,782,776

21,349,572

GAN Limited
Interim Condensed Consolidated Statement of Financial Position (Unaudited)
(in thousands of US$)

September 30, 2020

December 31, 2019

ASSETS

Non-current assets

Intangible assets

6,008

5,164

Property, plant and equipment

655

190

Right-of-use assets

782

1,334

Lease deposits

68

115

Contract costs

291

57

Total non-current assets

7,804

6,860

Current assets

Cash and cash equivalents

57,489

10,098

Trade and other receivables

9,079

5,974

R&D tax credit receivable

–

1,127

Inventory

416

883

Prepayments

3,099

1,061

Lease deposits

77

80

Contract costs

55

29

Total current assets

70,215

19,252

Total assets

78,019

26,112

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Trade and other payables

13,358

6,760

Contract liabilities

1,561

3,023

Current portion of lease liabilities

299

692

Total current liabilities

15,218

10,475

Non-current liabilities

Lease liabilities

355

535

Total liabilities

15,573

11,010

Equity

62,446

15,102

Total liabilities and equity

78,019

26,112

GAN Limited
Interim Condensed Consolidated Statement of Cash Flows (Unaudited)
(in thousands of US$)

Nine months ended

September 30,

2020

2019

Cash flows from operating activities

Net loss attributable to equity holders

(12,385

)

(1,545

)

Adjustments to reconcile net loss to cash (used in) provided by operating activities

8,960

4,207

Changes in working capital accounts

848

1,709

Net cash (used in) provided by operating activities

(2,577

)

4,371

Cash flows from investing activities

Interest received

4

10

Purchase of intangible assets

(3,110

)

(2,279

)

Purchase of property, plant and equipment

(560

)

(380

)

Net cash used in investing activities

(3,666

)

(2,649

)

Cash flows from financing activities

Proceeds from issuance of shares in initial public offering, net

57,445

–

Payment of deferred offering costs

(1,678

)

–

Payment to previous shareholders

(2,525

)

–

Proceeds from exercise of share options

2,279

79

Payment of finance costs

(385

)

–

Capital element of lease liabilities payments

(609

)

(524

)

Interest paid on lease liabilities

(66

)

(105

)

Net cash provided by (used in) financing activities

54,461

(550

)

Effect of exchange rate on cash and cash equivalents

(827

)

442

Increase in cash and cash equivalents

47,391

1,614

Cash and cash equivalents, beginning of period

10,098

6,967

Cash and cash equivalents, end of period

57,489

8,581

GAN Limited
Segment Revenue and Gross Profit (Unaudited)
Three and Nine Months Ended September 30, 2020 and 2019
(in thousands of US$)

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

RMiG

SaaS Revenue

4,803

2,868

13,706

7,235

Service Revenue

1,413

1,259

4,453

2,798

Other

1,473

–

1,473

4,904

RMiG Revenue

7,689

4,127

19,632

14,937

Simulated Gaming

SaaS Revenue

2,111

1,084

5,563

3,467

Service Revenue

466

305

1,064

876

Simulated Gaming Revenue

2,577

1,389

6,627

4,343

Total Revenue

10,266

5,516

26,259

19,280

RMiG

Revenue

7,689

4,127

19,632

14,937

Cost of sales (excl. depreciation and amortization)

2,062

1,484

4,322

4,988

RMiG Segment Gross Profit

5,627

2,643

15,310

9,949

Segment gross profit margin %

73

%

64

%

78

%

67

%

Simulated Gaming

Revenue

2,577

1,389

6,627

4,343

Cost of sales (excl. depreciation and amortization)

1,074

598

2,727

1,744

Simulated Gaming Segment Gross Profit

1,503

791

3,900

2,599

Segment gross profit margin %

58

%

57

%

59

%

60

%

Cost of sales, depreciation and amortization

758

1,017

2,289

3,445

Total Gross Profit

6,372

2,417

16,921

9,103

Gross profit margin %

62

%

44

%

64

%

47

%

GAN Limited
Revenue by Geography (Unaudited)
Three and Nine Months Ended September 30, 2020 and 2019
(in thousands of US$)

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Revenue by Geography*

United States

8,662

4,455

21,957

15,887

Italy

1,279

1,047

3,714

3,315

U.K. and Channel Islands

10

1

253

4

Rest of the world

315

13

335

74

Total

10,266

5,516

26,259

19,280

* Revenue is segmented based upon the location of the legal entity of the Company’s customer

(in thousands of US$)

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Net loss attributable to equity holders

(4,078

)

(1,834

)
(12,385 )
(1,545

)

Income tax (benefit) expense

(5

)

141

312
409

Loss before income taxes

(4,083

)

(1,693

)
(12,073 )
(1,136

)

Non-operating expense

Net finance costs

25

31

454

93

Depreciation expense

269

195

610

627

Amortization expense

716

961

2,166

3,264

1,010

1,187

3,230

3,984

EBITDA

(3,073

)

(506

)

(8,843
)
2,848

Share-based payment and related expense

2,020

134

9,503

392

Initial public offering transaction related

–

–

2,831

–

Tax related provisions

939

–

939

–

Adjusted EBITDA

(114

)

(372

)

4,430

3,240

Adjusted EBITDA margin %

(1

)%

(7

)%
17 %
17

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116005978/en/

Investor Contacts:

GAN

Jack Wielebinski

Head of Investor Relations

(214) 799-4660

[email protected]

Alpha IR Group

Sofia Byrne or Chris Hodges

(312) 445-2870

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Entertainment Technology Online Mobile Entertainment Software Casino/Gaming

MEDIA:

Posted on November 16, 2020 4:03 pm
Capstone Companies Reports Third Quarter 2020

Capstone Companies Reports Third Quarter 2020

DEERFIELD BEACH, Fla.–(BUSINESS WIRE)–
Capstone Companies, Inc. (OTC: CAPC) (“Capstone” or the “Company”), a designer, manufacturer and marketer of consumer inspired products that bridge technological innovations with today’s lifestyle reported its financial results for the first quarter 2020.

Gerry McClinton, Capstone’s CFO, commented, “While the Company continues to navigate its way through the COVID-19 pandemic, management remains focused on its year-end and 2021 strategic initiatives. Management will continue to react to the ongoing changes, but our long-term strategies will remain intact.”

Mr. Wallach added, “we are patiently awaiting retail markets to re-open to full capacity. Our primary focus has been on the re-launch of the Capstone Connected Smart Mirror campaign. We believe we are well positioned to make an impact on the Smart Home Market through this introduction as we approach 2021.”

About Capstone Companies, Inc.

Capstone Companies, Inc. is a public holding company that engages, through its wholly-owned subsidiaries, Capstone Industries, Inc., Capstone Lighting Technologies, LLC, and Capstone International HK, Limited, in the development, manufacturing and marketing of consumer product to retail channels throughout North America and international markets.

Visit www.capstonecompaniesinc.com for more information about the Company and www.capstoneindustries.com for information on our current product offerings.

FORWARD-LOOKING STATEMENTS:

This news release contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. Such statements consist of words like “anticipate,” “expect,” “project,” “continue” and similar words. These statements are based on the Company’s and its subsidiaries’ current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include consumer acceptance of the Company’s products, its ability to deliver new products, the success of its strategy to broaden market channels and the relationships it has with retailers and distributors. Prior success in operations does not necessarily mean success in future operations. The ability of the Company to adequately and affordably fund operations and any growth will be critical to achieving and sustaining any expansion of markets and revenue. The introduction of new products or the expanded availability of products does not mean that the Company will enjoy better financial or business performance. The risks associated with any investment in Capstone Companies, Inc., which is a small business concern and a “penny-stock Company” and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the risks and uncertainties more fully described in the Company’s Annual and Quarterly Reports filed with the Securities and Exchange Commission. Capstone Companies, Inc. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Contents of referenced URLs are not incorporated into this press release.

Company:

Aimee Brown

Corporate Secretary

(954) 252-3440, ext. 313

FINANCIAL TABLES FOLLOW. THE FOLLOWING SUMMARY FINANCIAL STATEMENT SHOULD BE READ ALONG WITH THE FORM 10-K FINANCIAL STATEMENT FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Important Message Regarding COVID – 19

As the COVID-19 pandemic continues to spread around the world, Capstone is considering all recommended and required steps to ensure its employees’ health and safety in its workplaces.

We are following closely the recommendations of the Center for Disease Control and Prevention, Department of Homeland Security, State Department and local government guidelines and recommendations and the World Health Organization guidelines as applicable to our overseas’ offices.

We are committed to maintaining business reporting; however, we may need to modify the norm in doing so due to employees working remotely.

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30,

December 31,

2020

2019

Assets:
(Unaudited)

Current Assets:

Cash
$

1,314,508

$

3,131,249

Accounts receivable, net

211,509

13,459

Inventories

13,426

24,818

Prepaid expenses

113,636

182,782

Income tax refundable

794,838

220,207

Total Current Assets

2,447,917

3,572,515

Property and equipment, net

63,166

65,649

Operating lease- right of use asset

172,796

214,202

Deposit

11,148

46,021

Goodwill

1,445,254

1,936,020

Total Assets
$

4,140,281

$

5,834,407

Liabilities and Stockholders’ Equity:

Current Liabilities:

Accounts payable and accrued liabilities
$

632,750

$

635,593

Paycheck protection program loan-current portion

49,971

–

Operating lease- current portion

61,675

51,174

Total Current Liabilities

744,396

686,767

Long-Term Liabilities:

Paycheck protection program loan-long term portion

39,988

–

Operating lease- long-term portion

124,207

170,998

Total Long-Term Liabilities

164,195

170,998

Total Liabilities

908,591

857,765

Commitments and Contingencies

Stockholders’ Equity:

Preferred Stock, Series A, par value $.001 per share, authorized 6,666,667 shares, issued -0- shares

–

–

Preferred Stock, Series B-1, par value $.0001 per share, authorized 3,333,333 shares, issued -0- shares

–

–

Preferred Stock, Series C, par value $1.00 per share, authorized 67 shares, issued -0- shares

–

–

Common Stock, par value $.0001 per share, authorized 56,666,667 shares, issued 46,296,364 shares at September 30, 2020 and 46,579,747 shares at December 31, 2019

4,630

4,658

Additional paid-in capital

7,049,128

7,061,565

Accumulated deficit

(3,822,068

)

(2,089,581

)

Total Stockholders’ Equity

3,231,690

4,976,642

Total Liabilities and Stockholders’ Equity
$

4,140,281

$

5,834,407

The accompanying notes are an integral part of these condensed consolidated financial statements.

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2020

2019

2020

2019

Revenues, net

$

709,654

$

5,354,190

$

1,765,189

$

11,740,814

Cost of sales

(535,270

)

(4,139,214

)

(1,521,628

)

(9,165,140

)

Gross Profit

174,384

1,214,976

243,561

2,575,674

Operating Expenses:

Sales and marketing

22,337

102,193

277,264

329,463

Compensation

362,706

381,795

1,139,107

1,138,960

Professional fees

99,579

112,687

339,816

353,293

Product development

75,948

81,060

169,133

260,823

Other general and administrative

113,026

169,572

364,941

490,835

Goodwill impairment charge

–

–

490,766

–

Total Operating Expenses

673,596

847,307

2,781,027

2,573,374

Operating Income (Loss)

(499,212

)

367,669

(2,537,466

)

2,300

Other Income (Expenses):

Interest Expense

(47

)

(3,206

)

(181

)

(3,206

)

Other Income (Expense), Net

–

2,610

–

135

Total Other Income (Expenses)

(47

)

(596

)

(181

)

(3,071

)

Income (Loss) Before Tax Benefit

(499,259

)

367,073

(2,537,647

)

(771

)

Benefit for Income Tax

(21,222

)

–

(805,160

)

(12,000

)

Net Income (Loss)

$

(478,037

)

$

367,073

$

(1,732,487

)

$

11,229

Net Income (Loss) per Common Share

Basic and Diluted

$

(0.01

)

$

0.01

$

(0.04

)

$

0.00

Weighted Average Shares Outstanding

Basic and Diluted

46,296,364

46,882,538

46,350,909

46,874,256

The accompanying notes are an integral part of these condensed consolidated financial statements

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND SEPTEMBER 30, 2019

(Unaudited)

Preferred Stock

Preferred Stock

Preferred Stock

Additional

Series A

Series B

Series C

Common Stock

Paid-In

Accumulated

Total

Shares

Par Value

Shares

Par Value

Shares

Par Value

Shares

Par Value

Capital

Deficit

Equity

Balance at December 31, 2019
–

$

–

–

$

–

–

$

–

46,579,747

$

4,658

$

7,061,565

$

(2,089,581

)

$

4,976,642

Stock options for compensation
–

–

–

–

–

–

–

–

8,925

–

8,925

Repurchase of shares
–

–

–

–

–

–

(283,383

)

(28

)

(36,305

)

–

(36,333

)

Net Loss
–

–

–

–

–

–

–

–

–

(597,376

)

(597,376

)

Balance at March, 31, 2020
–

–

–

–

–

–

46,296,364

4,630

7,034,185

(2,686,957

)

4,351,858

Stock options for compensation
–

–

–

–

–

–

–

–

8,925

–

8,925

Net Loss
–

–

–

–

–

–

–

–

–

(657,074

)

(657,074

)

Balance at June 30, 2020
–

–

–

–

–

–

46,296,364

4,630

$

7,043,110

$

(3,344,031

)

$

3,703,709

Stock options for compensation
–

–

–

–

–

–

–

–

6,018

–

6,018

Net Loss
–

–

–

–

–

–

–

–

–

(478,037

)

(478,037

)

Balance at September 30, 2020
–

$

–

–

$

–

–

$

–

46,296,364

$

4,630

$

7,049,128

$

(3,822,068

)

$

3,231,690

Balance at December 31, 2018
–

$

–

–

$

–

–

$

–

47,046,364

$

4,704

$

7,092,219

$

(1,197,912

)

$

5,899,011

Stock options for compensation
–

–

–

–

–

–

–

–

11,025

–

11,025

Repurchase of shares
–

–

–

–

–

–

(45,470

)

(3

)

(8,612

)

–

(8,615

)

Net Loss
–

–

–

–

–

–

–

–

–

(345,340

)

(345,340

)

Balance at March 31, 2019
–

–

–

–

–

–

47,000,894

4,701

7,094,632

(1,543,252

)

5,556,081

Stock options for compensation
–

–

–

–

–

–

–

–

11,025

–

11,025

Repurchase of shares
–

–

–

–

–

–

(168,530

)

(17

)

(27,246

)

–

(27,263

)

Net Loss
–

–

–

–

–

–

–

–

–

(10,504

)

(10,504

)

Balance at June 30, 2019
–

–

–

–

–

–

46,832,364

4,684

7,078,411

(1,553,756

)

5,529,339

Stock options for compensation
–

–

–

–

–

–

–

–

9,732

–

9,732

Repurchase of shares
–

–

–

–

–

–

(79,945

)

(7

)

(11,630

)

–

(11,637

)

Net Loss
–

–

–

–

–

–

–

–

–

367,073

367,073

Balance at September 30, 2019
–

$

–

–

$

–

–

$

–

46,752,419

$

4,677

$

7,076,513

$

(1,186,683

)

$

5,894,507

The accompanying notes are an integral part of these condensed consolidated financial statements.

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Nine Months Ended

September 30,

2020

2019

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income (Loss)

$

(1,732,487

)

$

11,229

Adjustments to reconcile net income (loss) to net cash used in

operating activities:

Depreciation and amortization

18,222

33,072

Stock based compensation expense

23,868

31,782

Noncash lease expense

41,406

–

Unpaid accrued interest on paycheck protection program loan

359

–

Goodwill impairment charge

490,766

–

Benefit for deferred income tax

–

(12,000

)

Increase in accounts receivable, net

(198,050

)

(2,087,830

)

Decrease in inventories

11,392

27,497

Decrease in prepaid expense

69,146

107,359

Decrease in deposits

34,873

75,912

Increase (decrease) in accounts payable and accrued liabilities

(2,843

)

454,004

Decrease in deferred rent incentive

–

(75,315

)

Increase in income tax refundable

(574,631

)

–

Decrease in operating lease liabilities

(36,290

)

–

Net cash used in operating activities

(1,854,269

)

(1,434,290

)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment

(15,739

)

(34,123

)

Net cash used in investing activities

(15,739

)

(34,123

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from loan under paycheck protection program

89,600

–

Repurchase of Shares

(36,333

)

(47,515

)

Net cash provided by (used in) financing activities

53,267

(47,515

)

Net Decrease in Cash

(1,816,741

)

(1,515,928

)

Cash at Beginning of Period

3,131,249

3,822,359

Cash at End of Period

$

1,314,508

$

2,306,431

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid during the period for:

Interest

$

–

$

3,206

The accompanying notes are an integral part of these condensed consolidated financial statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116005881/en/

Aimee C. Brown

Corporate Secretary

(954) 252-3440, ext. 313

KEYWORDS: Florida United States North America

INDUSTRY KEYWORDS: Marketing Retail Consumer Electronics Communications Technology Home Goods

MEDIA:

Logo

Posted on November 16, 2020 4:03 pm
GAN Limited Announced Agreement to Acquire Coolbet

GAN Limited Announced Agreement to Acquire Coolbet

Acquisition of Coolbet’s best-in-class international sportsbook engine provides GAN with a full-service solution to real money gaming in U.S.

Combination brings additional scale, geographical reach and offers new market opportunities for GAN’s B2B technology and a new vertical through B2C

IRVINE, Calif.–(BUSINESS WIRE)–
GAN Limited (the “Company” or “GAN”) (NASDAQ: GAN), a leading business-to-business supplier of internet gaming software-as-a-service solutions primarily to the U.S. land-based casino industry, today announced that it has signed a definitive purchase agreement to acquire Vincent Group p.l.c. (“Coolbet”) for a total consideration of approximately €149 million (subject to adjustment as provided in the Share Exchange Agreement). The acquisition is expected to close in the first quarter of 2021, subject to regulatory review and the satisfaction of certain closing conditions. GAN expects to fund the acquisition with new capital. Coolbet is an award-winning, Business-to-Consumer (“B2C”) iGaming operator, with a footprint in Northern Europe, Canada, and Latin America in real money iGaming and online sports betting.

Acquisition Highlights:

Vincent Group p.l.c. brings Coolbet, a sports focused brand to GAN, which was founded by the industry veteran Jan Svendsen and is supported by proprietary software with one of the most experienced engineering and trading teams in the industry.

Coolbet achieved trailing-twelve-month revenue of €26 million and a 46% revenue CAGR from 2018 to 2020, making it one of the fastest growing European B2C iGaming operators today.

The acquisition will leverage Coolbet’s industry-leading, proprietary sports betting technology, which is anticipated to be integrated into GAN’s turnkey technology solutions for launch in the U.S. RMiG market by second half of 2021.

Provides additional opportunity to leverage GAN’s business-to-business (“B2B”) experience and proprietary technology into Coolbet’s core markets and across its existing relationships with casino operators around the globe.

GAN to welcome over 175 new global employees and engineering talent, over 84,000 active customers in the third quarter of 2020, and an industry leading retention rate of 85% Quarter-on-Quarter in 2020.

Transaction is expected to close in the first quarter of 2021 and will be immediately accretive.

Dermot Smurfit Commented:

“From the onset of our IPO we have continued to enhance and perfect our internet gaming software-as-a-service solutions for the U.S. market. As a part of that growth strategy, we have been clear that we needed to add a best-in-class sportsbook engine to round out our real money iGaming platform, and we believe Coolbet is the perfect fit for both GAN and our customers. Coolbet launched in early 2016 in a hypercompetitive online market in Northern Europe and subsequently expanded into Latin America and Canada over the last two years. Since its launch, Coolbet has proven that its sportsbook offering is one of the best in the market today. Coolbet’s award winning user interface and proprietary technical platform will enable us to quickly introduce the sportsbook offering to our land-based casino customers across the U.S., who need a flexible and customizable solution to online gaming. Coolbet brings one of the most experienced teams of engineers in the industry and their technology is built on a similar architectural design as our own, which is anticipated to make the integration process fairly seamless. The timing of the acquisition ideally positions GAN to leverage its growing customer base, as well as the momentum that sports legislation has seen with the election results in Maryland, Louisiana, South Dakota, and Tennessee.”

“Additionally, Coolbet is more than just the best sportsbook platform we vetted during our process. Coolbet has a well-established global business, a strong and loyal B2C customer base, and a diversified revenue stream. They are expert marketers and have grown their top-line over 46% in highly competitive and established markets in Northern Europe, Latin American and Canada. We will not only achieve scale and diversity across our revenue streams through this combination, but we also see a strong opportunity to leverage Coolbet’s expertise and relationships in other markets where our industry-leading B2B SaaS platform can be deployed.”

“In summary, this union brings two of the best-in class, high-growth offerings in the iGaming space together, and makes a powerful combination. We expect to achieve significant revenue synergies across both platforms over the long-term and have structured the deal to be immediately accretive. We are excited to welcome the Coolbet team to GAN and look forward to building one of the most complete solutions in our industry. We view this acquisition as part of our unwavering commitment to shareholder value and our long-term growth strategy.”

Coolbet Background

Vincent Group p.l.c. is a Malta public limited company that operates an online gaming platform under the flagship brand, Coolbet. Coolbet’s proprietary platform was uniquely developed in-house, and offers online real-money gaming in sports, casino, poker and virtual e-sports. Coolbet currently has approximately 175 full-time equivalents, primarily based in Tallinn, Estonia, and a management team with extensive experience in the RMiG industry. Currently, the Company has gambling licenses in Estonia, Sweden and Malta.

Coolbet was awarded start-up of the year in 2017 by International Gaming Awards, World’s Best Bookmaker in 2018 and 2019 by TIPS magazine, and mobile sports product of the year in 2019 and 2020 by the International Gaming Awards.

Revenue for the first nine months of 2020 was €18.6 million, split approximately 50% in sports betting and 50% in casino and other. Coolbet has customers in Norway, Sweden, Finland, Iceland, Estonia, Chile and recently expanded into Canada and Peru. Despite the impact of COVID-19 on its markets in the second quarter of 2020, the Company has achieved an EBITDA of €0.5M for the nine months ended September 30, 2020 and break-even Net Operating Income. Coolbet has previously raised €35 million in equity through private placements and currently has no debt.

Transaction Summary

GAN is acquiring Vincent Group p.l.c in an exchange offer for €149.1 million, on a cash-free, debt-free basis, through a combination of cash and stock. The transaction, which has been unanimously approved by GAN Limited’s board of directors, is expected to close in the first quarter of 2021. It is subject to customary closing conditions, including regulatory approvals.

B. Riley Securities provided a fairness opinion to the GAN board of directors with respect to the acquisition, and Sheppard, Mullin, Richter & Hampton LLP, is acting as GAN’s legal counsel.

About GAN Limited

GAN is a leading business-to-business supplier of internet gambling software-as-a-service solutions predominantly to the U.S. land-based casino industry. GAN has developed a proprietary internet gambling enterprise software system, GameSTACK™, which it licenses to land-based casino operators as a turnkey technology solution for regulated real-money internet gambling, encompassing internet gaming, internet sports gaming and virtual Simulated Gaming.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the pending acquisition of Coolbet and the anticipated benefits to the Company related thereto (including the Company’s expectation that the acquisition will be immediately accretive with significant revenue synergies), the timing of closing the Coolbet acquisition, the momentum of U.S. states legalizing online sports betting, and the ability to grow Coolbet’s B2C business and revenue, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements for any reason, except as required by law.

SMRH:4814-1456-8146.2

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116005989/en/

Investor Contacts:

GAN

Jack Wielebinski

Head of Investor Relations

(214) 799-4660

[email protected]

Alpha IR Group

Sofia Byrne or Chris Hodges

(312) 445-2870

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Electronic Games Technology Casino/Gaming Other Sports Sports Entertainment Software General Entertainment Internet

MEDIA:

Posted on November 16, 2020 4:03 pm
Nass Valley Gateway LTD Announces Its Full Line of Products are Now Available on Alibaba.com, the Global B2B E-Commerce Leader

Vancouver, BC, Nov. 16, 2020 (GLOBE NEWSWIRE) — via NewMediaWire — Nass Valley Gateway LTD., (NVG), (CSE: NVG.CN); (OTC Pink: NSVGF) (Frankfurt: “3NVN”) a distributor of top quality non-GMO health and wellness CBD consumables, is pleased to announce that the Company has been accepted as an approved seller by Alibaba.com and its full line of Nass Valley Gardens CBD human and pet products are now available on Alibaba.com.

Alibaba.com hosts the leading global B2B e-commerce platform in the world and as Nass Valley’s Director of E-Commerce, Brandon Gil, stated, “Alibaba.com’s B2B platform is clearly where Nass Valley needs to have a presence considering the design and flexibility of our supply chain for both large and small B2B customers. We too recognize Alibaba.com’s e-commerce leadership and look forward to working with them to grow our brand not only in North America, but globally. We will utilize the strength and reach of Alibaba.com to help customers access Nass Valley Gardens’ health and wellness products.”

ABOUT NASS VALLEY GATEWAY LTD.

Nass Valley Gateway LTD (NVG) is a publicly traded company on the CSE in the Life Sciences category. In late 2018, Nass Valley Gateway agreed to merge with Advanced Bioceuticals Limited, a New Jersey LLC focused on the cultivation, extraction, and sales of organic, non-GMO health and wellness products. These products are sold under the “Nass Valley Gardens” brand via retail, wholesale, direct response, and digital sales channels.

Neither the CSE nor its Regulation Services Provider has reviewed or accepts responsibility for the adequacy or accuracy of the contents of this news release.

Company: Nass Valley Gateway Ltd.

422 Richards Street, Suite 170

V6B 2Z4 Vancouver

Canada

Corporate: www.nassvalleygateway.com

Product : www.nassvalleyproducts.com

Investor Relations:

Michael Semler

+1 (609)651-0032

[email protected]

Listed: Regulated Unofficial Market in Berlin, Frankfurt, Hamburg,

Stuttgart; Toronto

EQS News ID: 818503

Source: Nass Valley Gateway Ltd

Posted on November 16, 2020 4:03 pm
Verizon to speak at Morgan Stanley European TMT Conference November 18

BASKING RIDGE, N.J., Nov. 16, 2020 (GLOBE NEWSWIRE) — Ronan Dunne, executive vice president for Verizon (NYSE, Nasdaq: VZ), and group CEO for Verizon Consumer, is scheduled to speak at the virtual Morgan Stanley European Technology, Media and Telecom Conference on Wednesday, November 18, at 9:30 a.m. ET. His remarks will be webcast, with access instructions available on Verizon’s Investor Relations website, www.verizon.com/about/investors/.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is celebrating its 20th year as one of the world’s leading providers of technology, communications, information and entertainment products and services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $131.9 billion in 2019. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.

VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at https://www.verizon.com/about/media-center. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Media contact:

Kim Ancin
[email protected]
908.559.3227

Eric Wilkens
[email protected]
201.572.9317

Posted on November 16, 2020 4:03 pm
TSS, Inc. Reports Third Quarter 2020 Results

ROUND ROCK, Texas, Nov. 16, 2020 (GLOBE NEWSWIRE) — TSS, Inc. (Other OTC: TSSI), a data center facilities and technology services company, reported results for its third quarter ended September 30, 2020.

Third

Quarter Highlights:

Third quarter 2020 revenue of $20.8 million compared with $4.2 million in the third quarter of 2019 and $6.5 million in the second quarter of 2020.

Gross margin of 13% in the third quarter of 2020 compared with 36% in the third quarter of 2019 and 12% in the second quarter of 2020.

Operating income of $966,000 in the third quarter of 2020 compared with operating loss of $12,000 in the third quarter of 2019.

Net income of $852,000 or $0.05 per share in the third quarter of 2020 compared to net loss of $95,000 or $(0.01) per share in the third quarter of 2019.

Adjusted EBITDA income of $1,142,000 compared with Adjusted EBITDA income of $157,000 in the third quarter of 2019.

“Our third quarter results produced strong revenue and profit as we adapted to the impacts of the COVID-19 pandemic. We were able to offset the financial impact it had on our second quarter and recover programs and deployments that were delayed in the second quarter.” said Anthony Angelini, President and Chief Executive Officer of TSS. “While there are still challenges relating to safety protocols and travel restrictions, we have been able to adapt while delivering and deploying our services for our customers. We expect that revenues will begin to normalize on a quarterly basis, allowing us to deliver more consistent results while continuing to grow year over year.”

Quarterly Conference Call Details

The Company has scheduled a conference call to discuss the third quarter 2020 financial results for Monday, November 16, 2020 at 4:30 PM Eastern. To participate on the conference call, please dial 877-691-2551 toll free from the U.S., or 630-691-2747 for international callers. The conference code is 50006509#. Investors may also access a live audio web cast of this conference call under the “events” tab on the investor relations section of the Company’s website at www.tssiusa.com.

An audio replay of the conference call will be available approximately one hour after the conclusion of the call and will be made available until December 16, 2020. The audio replay can be accessed at the following url:

https://onlinexperiences.com/Launch/QReg/ShowUUID=1D48C33C-8A80-4421-BDEF-AA68A99BDEBE&LangLocaleID=1033

The passcode to access the digital playback is 50006509. Additionally, a replay of the webcast will be available on the Company’s website approximately two hours after the conclusion of the call and will remain available for 30 calendar days.

About Non-GAAP Financial Measures

Adjusted EBITDA is a supplemental financial measure not defined under Generally Accepted Accounting Principles (GAAP). We define Adjusted EBITDA as net income (loss) before interest expense, income taxes, depreciation and amortization, impairment loss on goodwill and other intangibles, stock-based compensation, and provision for bad debts. We present Adjusted EBITDA because we believe this supplemental measure of operating performance is helpful in comparing our operating results across reporting periods on a consistent basis by excluding non-cash items that may, or could, have a disproportionate positive or negative impact on our results of operations in any particular period. We also use Adjusted EBITDA as a factor in evaluating the performance of certain management personnel when determining incentive compensation.

Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with Regulation G under the U.S. federal securities laws, Adjusted EBITDA has been reconciled to the nearest GAAP measure, and this reconciliation is located under the heading “Adjusted EBITDA Reconciliation” following the Consolidated Statements of Operations included in this press release.

About TSS, Inc.

TSS is a trusted single source provider of mission-critical planning, design, system integration, deployment, maintenance and evolution of data centers facilities and information infrastructure. TSS specializes in customizable end to end solutions powered by industry experts and innovative services that include technology consulting, engineering, design, construction, operations, facilities management, technology system installation and integration, as well as maintenance for traditional and modular data centers. For more information, visit www.tssiusa.com or call 888-321-4877.

Forward Looking Statements

This press release may contain “forward-looking statements” — that is, statements related to future — not past — events, plans, and prospects. In this context, forward-looking statements may address matters such as our expected future business and financial performance, and often contain words such as “guidance,” “prospects,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect the Company’s future results include: we may not have sufficient resources to fund our business and may need to issue debt or equity to obtain additional funding; our reliance on a significant portion of our revenues from a limited number of customers; risks relating to operating in a highly competitive industry; risks relating to the failure to maintain effective internal control over financial reporting; risks relating to rapid technological, structural, and competitive changes affecting the industries we serve; risks involved in properly managing complex projects; risks relating to the possible cancellation of customer contracts on short notice; risks relating to our ability to continue to implement our strategy, including having sufficient financial resources to carry out that strategy; risks relating to our ability to meet all of the terms and conditions of our debt obligations; uncertainty related to current economic conditions including the impact of the COVID-19 pandemic and the related impact on demand for our services; and other risks and uncertainties disclosed in our filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2019. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

Company Contact:

TSS, Inc.
John Penver, CFO
Phone: (512) 310-1000

TSS, Inc.

Consolidated Balance Sheets

(
I
n thousands except par values)

September 30, December 31,

2020 2019

Assets

Current Assets

Cash and cash equivalents $        9,455 $ 8,678

Contract and other receivables, net         1,258 3,865

Costs and estimated earnings in excess of billings on uncompleted contracts 341                          181

Inventories, net              207 1,353

Prepaid expenses and other current assets             237                 108

Total current assets 11,498            14,185

Property and equipment, net 764 705

Lease right-of-use asset 1,034 1,481

Goodwill 780 780

Intangible assets, net           239              307

Other assets                230                 109

Total assets $ 14,545 $ 17,567

Liabilities and Stockholders’ Equity

Current Liabilities

Bank note payable $         373 $         –

Lease liabilities              721       645

Accounts payable and accrued expenses      2,888 8,851

Deferred revenues 4,959 2,104

Total current liabilities 8,941            11,600

Convertible notes, less current portion, net              2,183 2,028

Lease liabilities, less current portion 404 956

Bank note payable, less current portion 520 –

Deferred revenues – noncurrent portion 117 114

Total liabilities        12,165 14,968

Stockholders’ Equity

Preferred stock- $.0001 par value; 1,000 shares authorized at September 30, 2020 and December 31, 2019; none issued – –

Common stock- $.0001 par value, 49,000 shares authorized at September 30, 2020 and December 31, 2019: 18,945 and 18,524 shares issued at September 30, 2020 and December 31, 2019, respectively
2 2

Additional paid-in capital         69,902            69,661

Treasury stock 1094 and 962 shares at cost at September 30, 2020 and December 31, 2019, respectively (1,872 ) (1,700 )

Accumulated deficit (65,652 ) (65,094 )

Total stockholders’ equity 2,380 2,869

Total liabilities and stockholders’ equity $      14,545 $ 17,567

TSS, Inc.

Condensed Consolidated Statements of Operations

(In thousands except per-share values, unaudited)

Three Months Ended
September 30, Nine Months Ended
September 30,

2020 2019 2020 2019

Results of Operations:

Revenue $ 20,763 $ 4,176 $ 37,814 $ 12,375

Cost of revenue, excluding depreciation and amortization 17,9907 2,679 32,673 7,790

Gross profit, excluding depreciation and amortization 2,773 1,497 5,141 4,585

Operating expenses:

Selling, general and administrative 1,668 1,425 5,011 4,301

Depreciation and amortization 139 84 390 244

Total operating costs 1,807 1,509 5,401 4,545

Operating income (loss) 996 (12 ) (260 ) 40

Interest income (expense), net (117 ) (106 ) (311 ) (330 )

Other income (expense), net 12 28 40 92

Income (loss) before income taxes 861 (90 ) (531 ) (198 )

Income tax expense 9 5 27 22

Net income (loss) $ 852 $ (95 ) $ (558 ) $ (220 )

Basic net income (loss) per Share: $ 0.05 $ (0.01 ) $ (0.03 ) $ (0.01 )

TSS, Inc.

Adjusted EBITDA Reconciliation

(In thousands, unaudited)

Three Months Ended Sept 30, Nine Months Ended Sept 30,

2020 2019 2020 2019

Net income (loss) $ 852 $ (95 ) $ (558 ) $ (220 )

Interest expense (income), net 105 78 271 238

Depreciation and amortization 139 84 390 244

Income tax expense 9 5 27 22

EBITDA profit (loss) $ 1,105 $ 72 $ 130 $ 284

Stock based compensation 37 85 239 244

Provision for bad debts – – – –

Adjusted EBITDA profit (loss) $ 1,142 $ 157 $ 369 $ 528

Posted on November 16, 2020 4:03 pm
Quest Resource Holding Reports Third Quarter 2020 Financial Results

THE COLONY, Texas, Nov. 16, 2020 (GLOBE NEWSWIRE) — Quest Resource Holding Corporation (NASDAQ: QRHC) (“Quest”), a national leader in environmental waste and recycling services, today announced financial results for the third quarter ended September 30, 2020.

Third

Quarter 20

20

Highlights

Revenue was $23.7 million, a 0.9% decrease compared with the third quarter of 2019.

Gross profit was $4.6 million, a 4.5% decrease compared with the third quarter of 2019.

Gross margin was 19.2% of revenue, compared with 19.9% for the third quarter of 2019.

Operating expenses decreased 2.4% to $4.4 million and included $355,000 ($0.02 per share) of professional fee expenses related to M&A related activities.

Net (loss) income per share attributable to common stockholders was $(0.02) compared with $0.00 during the third quarter of 2019. Included within the net loss per share for the third quarter was a non-cash deemed dividend adjustment of $(205,000), or $(0.01) per share, attributable to a change in warrants issued in a March 2016 public offering of common stock.

Adjusted EBITDA increased 15.0% to $989,000, compared with $860,000 during the third quarter of 2019.

Year-to-Date 2020 Highlights (

September

30, 2020)

Revenue was $71.0 million, a 6.6% decrease compared with the same period of 2019.

Gross profit was $13.5 million, a 4.2% decrease compared with the same period of 2019.

Gross margin was 19.0% of revenue, a 50 basis point improvement compared with 18.5% for the same period of 2019.

Other income of $1.4 million, or $0.09 per share, represented the use of PPP Loan proceeds to fund eligible expenses under the CARES Act.

Net income (loss) per share attributable to common shareholders improved to $0.04, compared with $(0.01) during the same period of 2019. Included within the net loss per share for the third quarter was a non-cash deemed dividend adjustment of $(205,000), or $(0.01) per share, attributable to anti-dilution provisions of warrants issued in a March 2016 public offering of common stock.

Year-to-date Adjusted EBITDA was $2.7 million, a 7.4% increase compared to the same period of 2019.

“We delivered 15% growth in Adjusted EBITDA during the third quarter, reflecting stability in our customer base, our flexible cost structure, and a tight control over costs. While customer activity levels in those end markets that were most severely impacted by COVID-19 are still below last year, volumes have improved sequentially and are stabilizing. Partially offsetting the headwind in these markets, we continue to see strength in other areas, such as grocery and specialty retail, which make up a large portion of our overall mix,” said S. Ray Hatch, President and Chief Executive Officer. “While there is still near-term uncertainty regarding the direction and pace of an economic recovery, we are encouraged that since the end of the quarter, we have seen pockets of growth from the expansion of programs with existing customers and the movement of new opportunities in our sales pipeline.

In addition, we completed our first acquisition as part of our broader M&A strategy, further leveraging the scale and scope of our national service platform. The acquisition of Green Remedies Waste & Recycling brings the potential for additional growth in an attractive end market, as well as significant EBITDA contribution. We expect that continued support of our customers, organic growth opportunities in our pipeline, and contributions from acquisitions like Green Remedies provide diversified revenue mix, ongoing revenue and gross profit growth, increased profitability through operating leverage, and attractive shareholder returns.”

Thir

d

Quarter 20

20

Earnings Conference Call and Webcast

Quest will conduct a conference call today, November 16, 2020, at 5:00 PM ET, to review the financial results for the third quarter ended September 30, 2020. Investors interested in participating on the live call can dial 1-866-548-4713 within the U.S. or 1-323-794-2093 from abroad, referencing conference ID: 2631839. The conference call, which may include forward-looking statements, is also being webcast and is available via the investor relations section of Quest’s website at http://investors.qrhc.com/. A replay of the webcast will be archived on Quest’s investor relations website for 90 days.

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

In this press release, a non-GAAP financial measure, “Adjusted EBITDA,” is presented. From time-to-time, Quest considers and uses this supplemental measure of operating performance in order to provide an improved understanding of underlying performance trends. Quest believes it is useful to review, as applicable, both (1) GAAP measures that include (i) depreciation and amortization, (ii) interest expense, (iii) stock-based compensation expense, (iv) income tax expense, and (v) certain other adjustments, and (2) non-GAAP measures that exclude such items. Quest presents this non-GAAP measure because it considers it an important supplemental measure of Quest’s performance. Quest’s definition of this adjusted financial measure may differ from similarly named measures used by others. Quest believes this measure facilitates operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. This non-GAAP measure has limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company’s GAAP measures. (See attached table “Reconciliation of Net Income (Loss) to Adjusted EBITDA.”)

About Quest Resource Holding Corporation

Quest is a national provider of waste and recycling services to customers from across multiple industry sectors that are typically larger, multi-location businesses. In addition, Quest’s programs and services enable customers to address their environmental and sustainability goals and responsibilities. Quest provides information that tracks and reports the environmental results of Quest’s services, provides actionable data to improve business operations, and enables customers to address their environmental and sustainability goals and responsibilities. For more information, visit www.qrhc.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which provides a “safe harbor” for such statements in certain circumstances. The forward-looking statements include, but are not limited to, our belief we have operations in place to sustainably support profitability while consistently providing excellent customer service; our belief that our outlook for growth from our existing customer base remains solid and our pipeline of new business is growing; our belief that our acquisition of Green Remedies brings the potential for additional growth and significant EBITDA contribution; our expectation that continued support of our customers, organic growth opportunities in our pipeline, and contributions from acquisitions like Green Remedies provide diversified revenue mix, ongoing revenue and gross profit growth, increased profitability through operating leverage, and attractive shareholder returns; and our belief that the financial measures contained in this press release facilitate operating performance comparisons from period to period. These statements are based on our current expectations, estimates, projections, beliefs, and assumptions. Such statements involve significant risks and uncertainties. You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

Investor Relations Contact:

Three Part Advisors, LLC
Joe Noyons
817.778.8424

Quest Resource Holding Corporation and Subsidiaries

STATEMENTS OF OPERATIONS

(Unaudited)
(In thousands, except per share amounts)

Three Months Ended

Nine
Months Ended

September
30,

September
30,

20
20

2019
2020

   201
9

Revenue $ 23,701 $ 23,926 $ 71,002 $ 76,020

Cost of revenue 19,144 19,154 57,527 61,956

Gross profit 4,557 4,772 13,475 14,064

Selling, general, and administrative 4,291 4,221 12,678 12,663

Depreciation and amortization 150 330 818 982

Total operating expenses 4,441 4,551 13,496 13,645

Operating income (loss) 116 221 (21 ) 419

Other income 150 — 1,408 —

Interest expense (73 ) (119 ) (244 ) (344 )

Loss on extinguishment of debt (168 ) — (168 ) —

Income before taxes 25 102 975 75

Income tax expense 92 55 64 165

Net income (loss) $ (67 ) $ 47 $ 911 $ (90 )

Deemed dividend for warrant down round feature
(205 )
—
(205 ) —

Net income (loss) applicable to common stockholders $ (272 ) $ 47 $ 706 $ (90 )

Net income (loss) per common share:

Basic $ (0.02 ) $ 0.00 $ 0.04 $ (0.01 )

Diluted $ (0.02 ) $ 0.00 $ 0.04 $ (0.01 )



Weighted average number of common shares outstanding:

Basic 17,290 15,350 16,055    15,340

Diluted 17,290 15,399 16,070    15,340

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(Unaudited)
(In thousands)

Three Months Ended Nine Months Ended

September
30,

September 30,


20
20

2019 2020
2019

Net income (loss) $ (67 ) $ 47 $ 911 $ (90 )

Depreciation and amortization 176 354 872 1,056

Interest expense 73 119 244                 344

Stock-based compensation expense 324 285 1,101 758

Other adjustments 391 — (528 ) 248

Income tax expense 92 55 64 165

Adjusted EBITDA $ 989 $ 860 $ 2,664 $ 2,481

BALANCE SHEETS

(In thousands, except per share amounts)

September
30, December 31,

2020 2019

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents $ 6,427 $ 3,411

Accounts receivable, less allowance for doubtful accounts of $873 and $767 as of September 30, 2020 and December 31, 2019, respectively 15,151 13,900

Prepaid expenses and other current assets 1,343 1,110

Total current assets 22,921 18,421

Goodwill 58,208 58,208

Intangible assets, net 915 1,591

Property and equipment, net, and other assets 2,545 2,436

Total assets $ 84,589 $ 80,656

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued liabilities $ 13,011 $ 13,317

Deferred revenue and other current liabilities 22 19

Total current liabilities 13,033 13,336

Revolving credit facility, net 4,163 4,535

Other long-term liabilities 659 1,141

Total liabilities 17,855 19,012

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued or outstanding as of September 30, 2020 and December 31, 2019 — —

Common stock, $0.001 par value, 200,000 shares authorized, 18,381 and 15,373 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively 18 15

Additional paid-in capital 165,239 160,858

Accumulated deficit (98,523 ) (99,229 )

Total stockholders’ equity 66,734 61,644

Total liabilities and stockholders’ equity $ 84,589 $ 80,656

Posted on November 16, 2020 4:03 pm
Esports Entertainment Group Reports Fiscal First Quarter 2021 Financial Results

NEWARK, N.J., Nov. 16, 2020 (GLOBE NEWSWIRE) — Esports Entertainment Group, Inc. (NasdaqCM: GMBL, GMBLW) (or the “Company”), an esports and online gambling company, today announced its financial results for the fiscal first quarter ended September 30, 2020, as well as an update on several key business initiatives.

Business Highlights

Signed agreement to acquire Helix eSports and ggCircuit in deal valued at $43 Million

Acquired Argyll Entertainment and its SportNation brand, adding Tier 1 gambling license covering UK and Ireland; Malta gaming license secured in May 2020

Acquired assets of FLIP Sports, providing ownership and control of tech stack

Acquired Esports Gaming League, with a history of partnerships that include Microsoft, Red Bull Arsenal FC, and Activision; subsequent to acquisition EGL announced first-of-their kind deals with LA Kings, LA Galaxy, and Philadelphia Union to be official esports tournament provider

Partnered with Allied Esports as title sponsor of the VIE.gg CS:GO Legend Series tournament; the two-week competition drew 1.7 million unique viewers and generated 1 million hours watched, making it the most-watched Legend Series event since tournament was created in 2017

Expanded partnership with Dignitas, an esports asset of Harris Blitzer Sports and Entertainment, securing naming rights to famed CS:GO team; partnership includes strategic digital and physical activations in New Jersey marketplace as core focus

Partnered with Twin Rivers Gaming to launch VIE.gg wagering platform in New Jersey in calendar Q1 2021

Working with the New Jersey Gaming Commission to launch pilot skill-based player-to-player wagering platform, LANduel

Opened corporate office at Prudential Center in Newark, NJ

“We have achieved many significant milestones since uplisting to the NASDAQ in April,” commented Grant Johnson, CEO of Esports Entertainment Group. “The COVID-19 pandemic has absolutely accelerated the rapid growth of esports leading to mainstream broadcasts to national TV audiences on ESPN and Fox. These trends helped us set new record audience viewing stats with our partner Allied Esports for the globally recognized Legend Series, just one of many accomplishments during the quarter. We believe the successes achieved this year provide an extremely strong foundation for long-term growth while offering investors a true pure play opportunity in the burgeoning world of global esports.”

Johnson continued, “We have structured our business to deliver a diversified esports and online gambling company via three key business pillars and believe this multi-tiered approach provides investors broad exposure to two major trends, the rise of competitive gaming and the legalization of online gambling in the US.”

“As we look ahead, we believe the acquisitions we have made as well as those we plan to make, combined with a growing list of world-class partnerships, Esports Entertainment is in a great position to accelerate the monetization of our robust three pillar strategy,” concluded Johnson.

F1Q21
Financial Results

Revenue for the three months ended September 30, 2020 totaled $222,392, an increase of $222,392 over the $0 recorded for the three months ended September 30, 2019 (this includes only 2 months of contribution from Argyll because the deal closed on August 4^th). The increase was primarily attributable to the acquisition of Argyll Entertainment as we are now revenue a generating company.

Post F1Q21, October has seen a significant uptick, with levels of turnover, Gross Gaming Revenue and Net Revenue returning to pre-COVID levels. Total handle was above $16 mil for the month of October and revenues for the month were above $600K.

Total operating expenses for the three months ended September 30, 2020 totaled $3.7 million, an increase from the $0.7m recorded for the three months ended September 30, 2019. The increase was primarily attributable to the increased payroll, stock compensation, marketing, legal and professional services fees related to increased business activity.

Total net loss for the three months ended September 30, 2020 was $1.8 million, driven principally by reduced revenues related to the measures taken post the regular UK Gambling Commission audit of Argyll Entertainment, partially offset by a change in fair market value of warrant liability of $2.1m.

As of September 30, 2020, the Company had total current assets of $10.4 million and total current liabilities of $8.2 million, resulting in working capital of $2.3 million. Cash and cash equivalents totaled $8.9 million and shareholders’ equity was $16.8 million at September 30, 2020.

Guidance

The Company reaffirms its guidance of $13 million in revenue in fiscal 2021 and $25 million in revenue in fiscal 2022 from its core Argyll and VIE platforms. On a proforma basis, including the acquisitions of Helix Esports and ggCircuit, the Company expects to report $42 million in revenue in fiscal 2022 with positive EBITDA of $2 million.

Fiscal First Quarter 2021
Conference Call

The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss its F1Q21 financial results. Participants may join the conference call by dialing 1-855-327-6837 (U.S. Toll-Free) or 1-631-891-4304 (International). A live webcast of the conference call will also be available at http://public.viavid.com/index.php?id=142485.

For those unable to participate in the conference call, a telephonic replay of the call will also be available shortly after the completion of the call, until 11:59 pm ET on Monday, November 30, 2020, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 10011948.

About
Esports Entertainment Group

Esports Entertainment Group, Inc. is a licensed online gambling company with a specific focus on esports wagering and 18+ gaming. Esports Entertainment offers fixed odds wagering, fantasy and pools on various esports events in a licensed, regulated and secure platform at vie.gg and owns and operates online sports book, SportNation.bet. In addition, Esports Entertainment intends to offer users from around the world the ability to participate in multiplayer mobile and PC video game tournaments for cash prizes. Esports Entertainment is led by a team of industry professionals and technical experts from the online gambling and the video game industries, and esports. The Company holds a license to conduct online gambling and 18+ gaming on a global basis in the UK, Ireland, Malta and Curacao. The Company maintains offices in New Jersey, the UK and Malta. For more information visit www.esportsentertainmentgroup.com.

Forward Looking Statements

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

U.S. Investor Relations

RedChip Companies, Inc.
Dave Gentry
407-491-4498
[email protected]

Media & Investor Relations Inquiries

[email protected]

Posts pagination

Previous page Page 1 … Page 43,925 Page 43,926 Page 43,927 … Page 44,248 Next page

Recent Articles

Lilly’s Jaypirca (pirtobrutinib) significantly reduced the risk of disease progression or death by 45% when added to a venetoclax time-limited regimen in people with previously treated CLL/SLL June 14, 2026 3:18 am

Legend Biotech Establishes Clinical Proof-of-Concept for LB2501, a Potential First-in-Class In Vivo CD19/CD20 Dual-Targeting CAR-T, in Relapsed/Refractory B-Cell Non-Hodgkin Lymphoma June 14, 2026 3:18 am

Babcock & Wilcox Deadline: BW Investors Have Opportunity to Lead Babcock & Wilcox Enterprises, Inc. Securities Fraud Lawsuit June 13, 2026 7:35 pm

Phase 3 Data Show TransCon® PTH Replicated Systemic Actions of Endogenous PTH Through Week 182 in Adults with Hypoparathyroidism June 13, 2026 4:03 pm

Genmab Announces Epcoritamab Monotherapy and Epcoritamab-Based Combination Regimens Demonstrate High Response Rates in Elderly Patients with Newly Diagnosed Diffuse Large B-Cell Lymphoma (DLBCL) June 13, 2026 12:48 pm

Verra Mobility Corporation (VRRM) Securities Fraud Class Action Lawsuit Filed; August 4, 2026, Lead Plaintiff Deadline June 13, 2026 12:18 pm

Lilly to present initial clinical data for first-in-class type II JAK2 inhibitor in patients with previously treated myelofibrosis at the 2026 EHA Annual Meeting June 13, 2026 11:18 am

Incyte Announces New Positive Data at EHA 2026 Showed INCA033989 Achieved Rapid, Robust and Sustained Clinical and Molecular Responses and Was Well Tolerated in Patients with Myelofibrosis and Essential Thrombocythemia June 13, 2026 11:18 am

PicS N.V. (PICS) Class Action Lawsuit: Investors Face August 4, 2026, Deadline June 13, 2026 10:48 am

Agios Showcases RISE UP Phase 3 Results at EHA 2026 Plenary Session Reinforcing Strong Anti-Hemolytic Profile of Mitapivat in Sickle Cell Disease June 13, 2026 9:03 am