Third Quarter 2023 Financial Highlights
- Revenue from continuing operations of
US$4.9 million - Adjusted EBITDA from continuing operations of
US$(6.4) million - Cash and other short-term assets1 of
US$105.2 million as ofSeptember 30, 2023 ; with an additional$79.1 million of cash with Insighta, our 50/50 joint venture in early cancer detection with ProfessorDennis Lo
"During the third quarter, we made further progress on our transformation. The recent completion of the reverse stock split also addressed any uncertainty regarding our listing status. We believe there are significant opportunities with our consumer health and clinical oncology business units, and are making investments to address these significant opportunities. With the strong cash position and a strong team, we are confident in our pathway to deliver growth and value," said
__________________________
1 Represents current assets, including cash and cash equivalents totaling
Recent Highlights
- Completion of reverse stock split at a ratio of 1-for-15 on
November 14, 2023 , to bring the Company into compliance with the minimumUS$1.00 per share requirement for continued listing on NASDAQ - ACT Genomics launched ACTLiquid, a 500-gene comprehensive genomic profile “liquid” biopsy test
- Cost reduction and restructuring progressed as planned, with business units CircleDNA and ACT Genomics expected to achieve EBITDA breakeven by the end of the year, which will be the first time in company history.
- Insighta’s 500-participants clinical trial for early cancer detection is in progress, and is expected to have full results for publication in the first half of 2024
About
Investor Relations Contact:
investors@prenetics.com
Forward-Looking Statements
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Basis of Presentation
Unaudited Financial Information and Non-IFRS Financial Measures has been provided in the financial statements tables included at the end of this press release. An explanation of these measures is also included below under the heading “Unaudited Financial Information and Non-IFRS Financial Measures.”
Unaudited Financial Information and Non-IFRS Financial Measures
To supplement Prenetics’ consolidated financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), the Company is providing non-IFRS measures, adjusted EBITDA from continuing operations, adjusted gross profit from continuing operations and adjusted (loss)/profit attributable to equity shareholders of
Management is excluding from some or all of its non-IFRS results (1) Employee equity-settled share-based payment expenses, (2) depreciation and amortization, (3) finance income and exchange gain or loss, net, and (4) certain items that may not be indicative of our business, results of operations, or outlook, including but not limited to non-cash and/ or non-recurring items. These non-IFRS financial measures are limited in value because they exclude certain items that may have a material impact on the reported financial results. Management accounts for this limitation by analyzing results on an IFRS basis as well as a non-IFRS basis and also by providing IFRS measures in the Company's public disclosures.
In addition, other companies, including companies in the same industry, may not use the same non-IFRS measures or may calculate these metrics in a different manner than management or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of these non-IFRS measures as comparative measures. Because of these limitations, the Company's non-IFRS financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with IFRS. Investors are encouraged to review the non-IFRS reconciliations provided in the tables captioned “Reconciliation of loss from operations from continuing operations under IFRS and adjusted EBITDA from continuing operations (Non-IFRS)”, “Reconciliation of gross profit from continuing operations under IFRS and adjusted gross profit from continuing operations (Non-IFRS)” and “Reconciliation of (loss)/profit attributable to equity shareholders of
Unaudited consolidated statements of financial position | |||||
(Expressed in | |||||
2023 | 2023 | 2022 | |||
$ | $ | $ | |||
Assets | |||||
Property, plant and equipment | 8,546,350 | 10,031,570 | 13,102,546 | ||
Intangible assets | 13,674,683 | 14,101,566 | 14,785,875 | ||
33,800,276 | 33,800,276 | 33,800,276 | |||
Interests in equity-accounted investees | 99,139,788 | 559,193 | 788,472 | ||
Financial assets at fair value through profit or loss | 10,002,442 | - | - | ||
Deferred tax assets | 27,715 | 7,631 | 243,449 | ||
Deferred expenses | 5,335,829 | 7,097,641 | 6,307,834 | ||
Other non-current assets | 700,710 | 741,816 | 1,292,462 | ||
Non-current assets | 171,227,793 | 66,339,693 | 70,320,914 | ||
Deferred expenses | 8,283,981 | 8,588,431 | 4,577,255 | ||
Inventories | 3,290,184 | 3,768,880 | 4,534,072 | ||
Trade receivables | 4,476,843 | 5,636,969 | 41,691,913 | ||
Deposits, prepayments and other receivables | 4,145,935 | 5,594,273 | 6,889,114 | ||
Amount due from a related company | 7,662 | - | - | ||
Amount due from an equity-accounted investee | 137,161 | 138,781 | - | ||
Financial assets at fair value through profit or loss | 13,593,201 | 13,593,201 | 17,537,608 | ||
Short-term deposits | 16,000,000 | - | 19,920,160 | ||
Cash and cash equivalents | 55,251,807 | 177,179,297 | 146,660,195 | ||
Current assets | 105,186,774 | 214,499,832 | 241,810,317 | ||
Total assets | 276,414,567 | 280,839,525 | 312,131,231 | ||
Liabilities | |||||
Deferred tax liabilities | 2,614,699 | 2,694,720 | 3,185,440 | ||
Warrant liabilities | 895,400 | 1,822,139 | 3,574,885 | ||
Lease liabilities | 3,062,803 | 3,255,461 | 3,763,230 | ||
Other non-current liabilities | 717,461 | 823,082 | 949,701 | ||
Non-current liabilities | 7,290,363 | 8,595,402 | 11,473,256 | ||
Trade payables | 3,513,463 | 4,226,392 | 7,291,133 | ||
Accrued expenses and other current liabilities | 8,347,371 | 19,349,105 | 15,611,421 | ||
Contract liabilities | 4,504,343 | 3,703,874 | 5,674,290 | ||
Lease liabilities | 2,194,574 | 2,779,193 | 2,882,933 | ||
Liabilities for puttable financial instrument2 | 13,230,021 | 13,435,228 | 17,138,905 | ||
Tax payable | 8,550,228 | 8,534,527 | 8,596,433 | ||
Current liabilities | 40,340,000 | 52,028,319 | 57,195,115 | ||
Total liabilities | 47,630,363 | 60,623,721 | 68,668,371 | ||
Equity | |||||
Share capital3 | 18,027 | 15,791 | 13,698 | ||
Reserves | 224,417,177 | 215,291,050 | 237,050,429 | ||
Total equity attributable to equity shareholders of the Company | 224,435,204 | 215,306,841 | 237,064,127 | ||
Non-controlling interests | 4,349,000 | 4,908,963 | 6,398,733 | ||
Total equity | 228,784,204 | 220,215,804 | 243,462,860 | ||
Total equity and liabilities | 276,414,567 | 280,839,525 | 312,131,231 |
Unaudited consolidated statements of profit or loss and other comprehensive income | |||||
(Expressed in | |||||
For the nine months ended | |||||
2023 | 2022 | ||||
$ | $ | ||||
(Restated) | |||||
Continuing operations | |||||
Revenue | 16,465,841 | 12,586,661 | |||
Direct costs | (10,230,937 | ) | (7,892,047 | ) | |
Gross profit | 6,234,904 | 4,694,614 | |||
Other income and other net gain/(losses) | 3,725,604 | (744,886 | ) | ||
Selling and distribution expenses4 | (6,334,964 | ) | (3,774,284 | ) | |
Research and development expenses4 | (10,158,212 | ) | (4,738,151 | ) | |
Restructuring costs5 | - | (1,429,429 | ) | ||
Administrative and other operating expenses4 | (33,910,726 | ) | (51,848,708 | ) | |
Loss from operations | (40,443,394 | ) | (57,840,844 | ) | |
Fair value loss on financial assets at fair value through profit or loss | (3,944,407 | ) | (1,674,184 | ) | |
Share-based payments on listing6 | - | (89,546,601 | ) | ||
Fair value loss on preference shares liabilities | - | (60,091,353 | ) | ||
Fair value gain/(loss) on warrant liabilities | 2,679,485 | (3,301,827 | ) | ||
Share of loss of equity-accounted investees | (170,717 | ) | - | ||
Other finance costs | (151,272 | ) | (3,993,550 | ) | |
Loss before taxation | (42,030,305 | ) | (216,448,359 | ) | |
Income tax credit | 280,037 | 3,355,516 | |||
Loss from continuing operations | (41,750,268 | ) | (213,092,843 | ) | |
Discontinued operation | |||||
(Loss)/profit from discontinued operation, net of tax7 | (5,511,375 | ) | 21,031,513 | ||
Loss for the period | (47,261,643 | ) | (192,061,330 | ) | |
Other comprehensive income for the period | |||||
Item that may be reclassified subsequently to profit or loss: | |||||
Exchange difference on translation of foreign operations | 677,474 | (7,602,604 | ) | ||
Total comprehensive income for the period | (46,584,169 | ) | (199,663,934 | ) | |
Loss attributable to: | |||||
Equity shareholders of | (45,776,458 | ) | (192,061,275 | ) | |
Non-controlling interests | (1,485,185 | ) | (55 | ) | |
(47,261,643 | ) | (192,061,330 | ) | ||
Total comprehensive income attributable to: | |||||
Equity shareholders of | (44,534,436 | ) | (199,663,879 | ) | |
Non-controlling interests | (2,049,733 | ) | (55 | ) | |
(46,584,169 | ) | (199,663,934 | ) | ||
Loss per share: | |||||
Basic | (0.28 | ) | (2.73 | ) | |
Diluted | (0.28 | ) | (2.73 | ) | |
Loss per share - Continuing operations: | |||||
Basic | (0.24 | ) | (3.03 | ) | |
Diluted | (0.24 | ) | (3.03 | ) | |
Weighted average number of common shares: | |||||
Basic | 164,465,165 | 70,371,679 | |||
Diluted | 164,465,165 | 70,371,679 |
Unaudited consolidated statements of profit or loss and other comprehensive income | ||||||||
(Expressed in | ||||||||
For the three months ended | ||||||||
2023 | 2023 | 2022 | ||||||
$ | $ | $ | ||||||
(Restated) | ||||||||
Continuing operations | ||||||||
Revenue | 4,865,522 | 5,695,579 | 4,295,343 | |||||
Direct costs | (3,241,996 | ) | (3,559,119 | ) | (2,367,460 | ) | ||
Gross profit | 1,623,526 | 2,136,460 | 1,927,883 | |||||
Other income and other net gain/(losses) | 1,096,199 | 1,406,281 | (159,424 | ) | ||||
Selling and distribution expenses4 | (1,662,011 | ) | (2,171,640 | ) | (1,319,305 | ) | ||
Research and development expenses4 | (3,980,620 | ) | (2,703,038 | ) | (796,688 | ) | ||
Restructuring costs5 | - | - | (1,429,429 | ) | ||||
Administrative and other operating expenses4 | (10,752,382 | ) | (10,834,043 | ) | (15,240,243 | ) | ||
Loss from operations | (13,675,288 | ) | (12,165,980 | ) | (17,017,206 | ) | ||
Fair value loss on financial assets at fair value through profit or loss | - | (3,944,407 | ) | (14,841 | ) | |||
Fair value gain/(loss) on warrant liabilities | 926,739 | 492,470 | (1,762,250 | ) | ||||
Share of gain/(loss) of equity-accounted investees | 54,567 | (112,533 | ) | - | ||||
Other finance costs | (42,914 | ) | (51,464 | ) | (110,548 | ) | ||
Loss before taxation | (12,736,896 | ) | (15,781,914 | ) | (18,904,845 | ) | ||
Income tax credit | 11,210 | 245,877 | 1,384,285 | |||||
Loss from continuing operations | (12,725,686 | ) | (15,536,037 | ) | (17,520,560 | ) | ||
Discontinued operation | ||||||||
(Loss)/profit from discontinued operation, net of tax7 | (1,354,767 | ) | (6,671,413 | ) | 2,622,321 | |||
Loss for the period | (14,080,453 | ) | (22,207,450 | ) | (14,898,239 | ) | ||
Other comprehensive income for the period | ||||||||
Item that may be reclassified subsequently to profit or loss: | ||||||||
Exchange difference on translation of foreign operations | (480,209 | ) | 1,794,185 | (2,826,668 | ) | |||
Total comprehensive income for the period | (14,560,662 | ) | (20,413,265 | ) | (17,724,907 | ) | ||
Loss attributable to: | ||||||||
Equity shareholders of | (13,570,455 | ) | (21,807,573 | ) | (14,898,231 | ) | ||
Non-controlling interests | (509,998 | ) | (399,877 | ) | (8 | ) | ||
(14,080,453 | ) | (22,207,450 | ) | (14,898,239 | ) | |||
Total comprehensive income attributable to: | ||||||||
Equity shareholders of | (14,000,699 | ) | (20,037,819 | ) | (17,724,899 | ) | ||
Non-controlling interests | (559,963 | ) | (375,446 | ) | (8 | ) | ||
(14,560,662 | ) | (20,413,265 | ) | (17,724,907 | ) | |||
Loss per share: | ||||||||
Basic | (0.08 | ) | (0.14 | ) | (0.21 | ) | ||
Diluted | (0.08 | ) | (0.14 | ) | (0.21 | ) | ||
Loss per share - Continuing operations: | ||||||||
Basic | (0.07 | ) | (0.10 | ) | (0.25 | ) | ||
Diluted | (0.07 | ) | (0.10 | ) | (0.25 | ) | ||
Weighted average number of common shares: | ||||||||
Basic | 176,151,516 | 158,963,468 | 70,371,679 | |||||
Diluted | 176,151,516 | 158,963,468 | 70,371,679 |
Unaudited Financial Information and Non-IFRS Financial Measures | |||||
(Expressed in | |||||
Reconciliation of loss from operationsfrom continuing operations under IFRS and adjusted EBITDA fromcontinuing operations (Non-IFRS) | |||||
For the nine months ended | |||||
2023 | 2022 | ||||
$ | $ | ||||
(Restated) | |||||
Loss from operations from continuing operations under IFRS | (40,443,394 | ) | (57,840,844 | ) | |
Employee equity-settled share-based payment expenses | 10,632,797 | 22,597,827 | |||
Depreciation and amortization | 5,820,321 | 1,488,992 | |||
Other strategic financing, transactional expense and non-recurring expenses | 6,064,443 | 11,447,263 | |||
Finance income, exchange gain or loss, net | (3,573,445 | ) | 967,707 | ||
Adjusted EBITDA from continuing operations (Non-IFRS) | (21,499,278 | ) | (21,339,055 | ) | |
Reconciliation of gross profit fromcontinuing operations under IFRS and adjusted gross profitfrom continuing operations (Non-IFRS) | |||||
For the nine months ended | |||||
2023 | 2022 | ||||
$ | $ | ||||
(Restated) | |||||
Gross profit from continuing operations under IFRS | 6,234,904 | 4,694,614 | |||
Depreciation and amortization | 1,125,897 | 85,309 | |||
Adjusted gross profit from continuing operations (Non-IFRS) | 7,360,801 | 4,779,923 | |||
Reconciliation of loss attributable to equity shareholders of | |||||
For the nine months ended | |||||
2023 | 2022 | ||||
$ | $ | ||||
Loss attributable to equity shareholders of | (45,776,458 | ) | (192,061,275 | ) | |
Employee equity-settled share-based payment expenses | 10,632,797 | 28,338,511 | |||
Other strategic financing, transactional expense and non-recurring expenses | 11,978,883 | 10,941,228 | |||
Share-based payment on listing | - | 89,546,601 | |||
Fair value loss on preference shares liabilities | - | 60,091,353 | |||
Fair value (gain)/loss on warrant liabilities | (2,679,485 | ) | 3,301,827 | ||
Fair value loss on financial assets at fair value through profit or loss | 3,944,407 | 1,674,184 | |||
Restructuring costs | - | 27,669,598 | |||
Adjusted (loss)/profit attributable to equity shareholders of | (21,899,856 | ) | 29,502,027 |
Unaudited Financial Information and Non-IFRS Financial Measures | ||||||||
(Expressed in | ||||||||
Reconciliation of loss from operations from continuing operations under IFRS and adjusted EBITDA from continuing operations (Non-IFRS) | ||||||||
For the three months ended | ||||||||
2023 | 2023 | 2022 | ||||||
$ | $ | $ | ||||||
(Restated) | ||||||||
Loss from operations from continuing operations under IFRS | (13,675,288 | ) | (12,165,980 | ) | (17,017,207 | ) | ||
Employee equity-settled share-based payment expenses | 4,394,952 | 3,296,861 | 4,637,222 | |||||
Depreciation and amortization | 1,885,127 | 1,863,626 | 564,942 | |||||
Other strategic financing, transactional expense and non-recurring expenses | 2,062,142 | 3,077,902 | 2,244,351 | |||||
Finance income, exchange gain or loss, net | (1,103,499 | ) | (1,323,782 | ) | 264,339 | |||
Adjusted EBITDA from continuing operations (Non-IFRS) | (6,436,566 | ) | (5,251,373 | ) | (9,306,353 | ) | ||
Reconciliation of gross profit from continuing operations under IFRS and adjusted gross profit from continuing operations (Non-IFRS) | ||||||||
For the three months ended | ||||||||
2023 | 2023 | 2022 | ||||||
$ | $ | $ | ||||||
(Restated) | ||||||||
Gross profit from continuing operations under IFRS | 1,623,526 | 2,136,460 | 1,927,883 | |||||
Depreciation and amortization | 405,923 | 335,648 | 33,523 | |||||
Adjusted gross profit from continuing operations (Non-IFRS) | 2,029,449 | 2,472,108 | 1,961,406 | |||||
Reconciliation of loss attributable to equity shareholders of | ||||||||
For the three months ended | ||||||||
2023 | 2023 | 2022 | ||||||
$ | $ | $ | ||||||
Loss attributable to equity shareholders of Prenetics under IFRS | (13,570,455 | ) | (21,807,573 | ) | (14,898,231 | ) | ||
Employee equity-settled share-based payment expenses | 4,394,952 | 3,113,656 | 5,994,430 | |||||
Other strategic financing, transactional expense and non-recurring expenses | 2,061,178 | 7,678,799 | 391,354 | |||||
Fair value (gain)/loss on warrant liabilities | (926,739 | ) | (492,470 | ) | 1,762,250 | |||
Fair value loss on financial assets at fair value through profit or loss | - | 3,944,407 | 14,841 | |||||
Restructuring costs | - | - | 27,669,598 | |||||
Adjusted (loss)/profit attributable to equity shareholders of | (8,041,064 | ) | (7,563,181 | ) | 20,934,242 |
__________________________
2 In connection with the acquisition of ACT Genomics, the remaining shareholders of ACT Genomics - representing 25.61% of the fully diluted shareholding of ACT Genomics that
3 Represents number of authorized and issued shares as follows:
2023 | 2023 | 2022 | |||
Number of authorized shares of | 500,000,000 | 500,000,000 | 500,000,000 | ||
Number of issued shares | 180,271,908 | 157,905,434 | 136,983,110 |
4 Includes equity-settled share-based payment expenses (excluding share-based payment on listing) from continuing operations as follows:
For the nine months ended | |||
2023 | 2022 | ||
$ | $ | ||
(Restated) | |||
Selling and distribution expenses | 100,561 | 79,653 | |
Research and development expenses | 2,891,754 | 1,658,775 | |
Administrative and other operating expenses | 7,576,865 | 20,657,876 | |
Total equity-settled share-based payment expenses (excluding share-based payment on listing) | 10,569,180 | 22,396,304 |
For the three months ended | ||||||
2023 | 2023 | 2022 | ||||
$ | $ | $ | ||||
(Restated) | ||||||
Selling and distribution expenses | (3,307 | ) | 58,613 | 48,229 | ||
Research and development expenses | 1,530,858 | 874,389 | 412,928 | |||
Administrative and other operating expenses | 2,845,319 | 2,340,502 | 4,168,498 | |||
Total equity-settled share-based payment expenses (excluding share-based payment on listing) | 4,372,870 | 3,273,504 | 4,629,655 |
5 Includes restructuring costs from continuing operations as follows:
For the nine months ended | |||
2023 | 2022 | ||
$ | $ | ||
(Restated) | |||
Impairment of intangible assets | - | 725,895 | |
Impairment of goodwill | - | 703,534 | |
Total restructuring costs from continuing operations | - | 1,429,429 |
For the three months ended | |||||
2023 | 2023 | 2022 | |||
$ | $ | $ | |||
(Restated) | |||||
Impairment of intangible assets | - | - | 725,895 | ||
Impairment of goodwill | - | - | 703,534 | ||
Total restructuring costs from continuing operations | - | - | 1,429,429 |
6 The acquisition of the net assets of
7 We ceased our COVID-19 testing business entirely in 2023 Q2. As a result, COVID-19 testing business is reported as a discontinued operation under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. In accordance with IFRS 5, the results of the discontinued operation have been presented separately from the continuing operations in the consolidated statements of profit or loss and other comprehensive income. The comparative information in the consolidated statements of profit or loss and other comprehensive income has also been re-presented to show the results of discontinued operation separately.
Source:
2023 GlobeNewswire, Inc., source