MedMira Reports First Quarter Results FY2020
31 December 2019 - 11:00AM
MedMira Inc. (MedMira) (TSXV: MIR), reported today on its financial
results for the quarter ended October 31, 2019.
Profit and Loss Highlights
- Revenue: The Company recorded
revenues in Q1 FY2020 of $89,132 compared to $155,065 in Q1 FY2019.
The decrease of these revenues was due to the re-focusing strategy
of the management on high profit margin markets. As outlined in the
next highlight this strategy has provided the Company a higher
contribution margin and also had an indirect effect on lowering its
expenses.
- Gross Profit: The Company recorded
a gross profit in Q1 FY2020 of $71,688 compared to $114,982 for the
same period last year. The overall gross margin percentage on sales
increased by 6% from 74% in Q1 FY2019 to 80% in this financial
quarter.
- Operating expenses: The Company
recorded for this quarter operating expenses of $354,997 compared
to $421,711 in Q1 FY2019. The decrease of 16% in operating expenses
was primarily due to the management’s strategy to streamline
cost.
- Net loss: The Company recorded a
net loss of $489,673 compared to $550,039 in Q1 FY2019. The
decrease of 15% is mainly attributed to the impact of the
management’s cost saving program.
Balance Sheet Highlights
On August 1, 2019 the Company adopted the IFRS
16 regulations with regard to classification of leases. This
significantly changed the Company’s assets and liabilities.
With the adoption of IFRS 16 the Company recognized $2.57 million
of right-of-use assets and $2.57 million of lease liabilities that
were previously accounted for as operating leases. The Company
applied its estimated weighted average incremental borrowing rate
at August 1, 2019 of 5.0% to determine the amount of lease
liabilities.
- Assets: The Company had an increase of its assets by $2,412,217
compared to last quarter due to the adoption of IFRS 16.
- Liabilities: The Company’s
liabilities increased by $2,880,890 between Q4 FY2019 and Q1
FY2020. The Company’s current liabilities increased by $463,568 or
3% due to Increase in payables and the current portion of the
classification of leases.
- Loans in default increased by
$118,046 or 2% compared to last quarter. All long and short term
debts are currently under negotiation to restructure terms and
conditions of repayment.
- Working Capital deficit: As a
result of the increases noted above, the Company recorded higher
working capital deficit of $578,936 or 4% compared to last
quarter.
The Company’s financial statements and
management’s discussion and analysis are available on the Company’s
profile on SEDAR at www.sedar.com. For matters of going
concern, reference is made to the Auditor’s Emphasis of Matter
statement in the fiscal year ended 2019 Auditors Report and note 2b
in the audited financial statements which is also available on
SEDAR.
About MedMira
MedMira is the developer and owner of Rapid
Vertical Flow (RVF) Technology™. The Company’s rapid test
applications built on RVF Technology provide hospitals, labs,
clinics and individuals with instant diagnosis for diseases such as
HIV and hepatitis C in just three easy steps. The Company’s tests
are sold under the Reveal, Multiplo and Miriad™ brands in global
markets. MedMira’s corporate offices and manufacturing facilities
are located in Halifax, Nova Scotia, Canada and the Company has a
sales and customer service office located in the United States. For
more information visit medmira.com. Follow us on Twitter and
LinkedIn.
This news release contains forward-looking
statements, which involve risk and uncertainties and reflect the
Company’s current expectation regarding future events including
statements regarding possible approval and launch of new products,
future growth, and new business opportunities. Actual events
could materially differ from those projected herein and depend on a
number of factors including, but not limited to, changing market
conditions, successful and timely completion of clinical studies,
uncertainties related to the regulatory approval process,
establishment of corporate alliances and other risks detailed from
time to time in the company quarterly filings.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
MedMira Contacts:
Markus Meile, CFOTel: 902-450-1588Email:
m.meile@medmira.com
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