09:23:01 EST Sun 25 Feb 2024
Enter Symbol
or Name

Novoheart Holdings Inc
Symbol NVH
Shares Issued 93,462,025
Close 2018-05-11 C$ 0.415
Market Cap C$ 38,786,740
Recent Sedar Documents

ORIGINAL: Novoheart Holdings Inc. Reports Third Quarter 2018 Financial Results

2018-05-11 19:41 ET - News Release

VANCOUVER, British Columbia, May 11, 2018 (GLOBE NEWSWIRE) -- Novoheart Holdings Inc. (“Novoheart” or the “Company”) reports financial results for the three and nine months ended March 31, 2018. Amounts, unless specified otherwise, are expressed in Canadian dollars and are in accordance with International Financial Reporting Standards (IFRS).

“We are very pleased with how we have started off 2018, with several exciting developments taking place as we continue to expand our commercialization strategy,” said Dr. Ronald Li, CEO of Novoheart. “Our contract with Sumocor, as well as the completion of our second contract with our global pharmaceutical partner, are tremendous milestones for us as we continue to validate the use of our Heart-in-a-jar technology to the scientific community. With the results of the latter being published, we are seeing significantly growing interests from commercial organizations to incorporate our technology into their disease modelling and drug screening processes.”

Recent Business Highlights:

  • Published landmark, peer-reviewed study recognizing the effectiveness of the world’s first and only human-heart-in-a-jar

  • Filed patent on creating first human cardiac models for neurological diseases associated with fatal cardiac conditions affecting more than 1 in 20,000 people worldwide

  • Opened new state-of-the-art facilities at the Hong Kong Science Park

Financial Results for the Third Quarter of 2018

The Company recorded net loss of C$1,586,471 (loss per share of C$0.02) for the three months ended March 31, 2018 compared to a net loss of C$766,094 (loss per share of C$0.15) for the three months ended March 31, 2017. On a year-to-date basis, the Company recorded a net loss of C$9,519,714 (loss per share of C$0.14) for the nine months ended March 31, 2018 compared to a net loss of C$1,982,323  (loss per share of C$0.38) for the nine months ended March 31, 2017. The increase in net loss on a year-to-date basis was due primarily to an increase of operating expenses and the completion of the reverse takeover transaction, for which the Company incurred a non-cash loss on completion of reverse takeover of C$5,213,597.

For the third quarter of 2018, the Company recorded revenue of C$19,348 and cost of sales of C$7,818. This is the first time the Company recorded revenue, and a corresponding cost of sales. The revenue was recognized from a drug screening services contract that the Company has with Sumocor, a New York based biotechnology company focused on the development of therapeutics for cardiovascular diseases. The drug screening services commenced in March 2018. Cost of sales of $7,818 included labour costs, material costs, and royalties payable for the intellectual property licenses required to perform the drug screening services.

Operating expenses for the third quarter of 2018 was C$1,622,173 compared to operating expense of C$839,422 for the second quarter of 2017. Operating expenses for the nine months ended March 31, 2018 and 2017 were C$4,442,929 and C$2,201,612, respectively. The increase in operating expenses is primarily related to an increase in intellectual property and patent expenses, general and administrative expenses, and share-based compensation expenses. The increase in intellectual property and patent expenses is due to a one-time milestone payment made to a licensor pursuant to the Company’s achievement of a public listing on the TSX-V. The increase in general and administrative expenses is primarily due to increases in professional and regulatory fees due to the reverse takeover listing and the listing on the Frankfurt Stock Exchange, as well as the increase in personnel costs resulting from the build-out of the Company’s management team. As for share-based compensation expenses, the Company’s first stock options were issued on completion of Novoheart’s reverse takeover listing on September 27, 2017, and as such, there were no such expenses for the three and nine months ended March 31, 2017.

The Company earned other income of nil and C$110,665 in the three and nine months ended March 31, 2018 compared to other income of C$70,186 and C$205,457 in the three and nine months ended March 31, 2017. Other Income is earned from the agreement with a global pharmaceutical partner.  Work for the agreement was completed in December 2017.

Liquidity and Outstanding Share Capital

As at March 31, 2018, the Company had cash of C$2,855,271. As at May 11, 2018, there were 93,462,025 common shares issued and outstanding, and 4,897,098 common shares issuable upon the exercise of outstanding stock options (of which none are exercisable) at an exercise price of C$0.50 per share. The Company also has 972,037 purchase warrants outstanding with an exercise price of C$0.50, expiring in September 2019.


Novoheart is a global stem cell biotechnology company dedicated to human heart engineering with offices and laboratories in the United States, Canada and Hong Kong. Novoheart’s scientific team has pioneered a range of bioengineering technologies collectively known as the MyHeart™ platform, including the world’s first human mini-heart “novoHeart™” (otherwise known as a “human heart-in-a-jar”) that is fully capable of pumping and ejecting fluid. Novoheart believes that its proprietary platform uniquely positions the Company to enter into commercial partnerships with leading pharmaceuticals and research institutions to deliver pre-clinical cardiotoxicity screening and to develop custom-tailored engineered heart constructs for disease modeling and drug discovery. Novoheart also believes that the MyHeart™ platform is well-positioned for the potential development of cell-based cardiac regenerative therapies with superior safety and efficacy.

Common shares of Novoheart is traded on the TSX Venture Exchange under the symbol “NVH”.

For further information please contact:

Novoheart Holdings Inc.
Suite 1430, 800 West Pender Street
Vancouver, British Columbia
V6C 2V6

Babak Pedram
Investor Relations
+1 416-644-5081

Christian Darbyshire
Media Relations
+1 587-352-5053

Cautionary Note Regarding Forward-Looking Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; statements about the Company’s future plans, its goals and expectations, and the potential applications its MyHeart™ platform are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risks identified in the management discussion and analysis section of Novoheart Holdings Inc.’s interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the respective companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

Condensed Consolidated Interim Statement of Financial Position (unaudited)

   March 31,
  June 30,
Cash and cash equivalents $2,855,271 $1,319,748 
Accounts and other receivables  540,624  602,240 
Prepaid expenses and deposits  444,496  98,255 
Due from related parties  7,704  13,874 
   3,848,095  2,034,117 
Long-term prepayment  1,529  - 
Equipment  1,332,465  214,934 
Intangible assets  304,110  - 
  $5,486,199 $2,249,051 
Accounts payable and accrued liabilities $629,282 $443,182 
Due to related parties  -  39,554 
   629,282  482,736 
Deferred government grants  46,716   64,013 
Long term license payable  145,394  - 
   821,392  546,749 
Shareholders' Equity     
Share capital    17,426,693  5,819,874 
Contributed surplus   910,710  - 
Accumulated other comprehensive income  66,861  102,170 
Accumulated deficit  (13,739,457) (4,219,743)
   4,664,807  1,702,302 
  $5,486,199 $2,249,051 

(Expressed in Canadian dollars)

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

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (unaudited)
(Expressed in Canadian dollars, except number of common shares)

  Three months ended

 Nine months ended

  Mar 31,
 Mar 31,
 Mar 31,

 Mar 31,
Revenue $  19,348  - $  19,348  - 
Cost of Sales  7,818  -  7,818  - 
  $  11,530  - $  11,530  - 
Research and development $  345,967 $  374,493 $  961,805 $  978,827 
Intellectual property and patent  52,316  133,750  413,655  185,013 
General and administrative  765,963  312,306  2,236,386  984,015 
Share-based compensation  289,715  -  589,938  - 
Depreciation  168,212  18,873  241,145  53,757 
   1,622,173  839,422  4,442,929  2,201,612 
LOSS FROM OPERATIONS    (1,610,643)   (839,422)   (4,431,399)   (2,201,612)
Government grants  18,331  5,009  40,018  16,993 
Other income  -  70,186  110,665  205,457 
Finance expense  7,441  (160) 5,673  (821)
Foreign exchange gain (loss)  (1,600) (1,707) (31,074) (2,340)
Non-cash loss on completion of reverse takeover  -  -  (5,213,597) - 
   24,172  73,328  (5,088,315) 219,289 
NET LOSS FOR THE QUARTER $ (1,586,471) (766,094)$ (9,519,714) (1,982,323)
Foreign currency translation adjustment  22,731  298,925  (35,309) 284,810 
COMPREHENSIVE LOSS FOR THE QUARTER $ (1,563,740) (467,169)$ (9,555,023) (1,697,513)
Loss per share – Basic and Diluted $  (0.02)$  (0.15)$   (0.14)$  (0.38)
Weighted average number of shares
outstanding – basic and diluted
  93,462,025  5,210,843  65,743,067  5,210,843 

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

Condensed Consolidated Interim Statements of Cash Flow (unaudited)
(Expressed in Canadian dollars)

For the nine months ended Mar 31,
 Mar 31,
Net loss for the period$  (9,519,714)(1,982,323)
Items not affecting cash:  
Non-cash loss on completion of reverse takeover 5,213,597 - 
Share-based compensation 589,937 - 
Depreciation 241,145 57,757 
Changes in non-cash working capital items:  
Decrease/(increase) in accounts and other receivables 72,584 (485,518)
Decrease/(increase) in prepaid expenses (340,352)45,397 
Increase/(decrease) in accounts payable and accrued liabilities (63,559)310,765 
Decrease in due to related parties (28,190)(217,590)
Decrease in deferred income - (11,850)
Decrease in deferred government grants (16,245)(44,156)

Net cash used in operating activities
Prepayment for equipment (960)- 
Acquisition of equipment and payment for leasehold improvements (1,309,710)(48,540)
Acquisition of intangible assets (69,537)- 
Net cash used in investing activities (1,380,207)(48,540)
Proceeds from share issuance, net 6,663,982 313,701 
Cash acquired in RTO 112,662 - 
Net cash provided by financing activities 6,776,644 313,701 
Change in cash during the period 1,545,641 (2,066,357)
Effect of exchange rate changes on cash held in a foreign currency (10,118)52,220 
Cash and cash equivalents, beginning of period 1,319,748 2,460,038 
Cash and cash equivalents, end of period$  2,855,271 445,901 

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

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