Nova Leap Health Corp. Posts Financial Results for Third Quarter 2020

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HALIFAX, Nova Scotia, Nov. 05, 2020 (GLOBE NEWSWIRE) -- NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a 2019 TSX Venture 50 ranked company focused on the home health care industry, is pleased to announce the release of financial results for the third quarter ended September 30, 2020. All amounts are in United States dollars unless otherwise specified.

Nova Leap Third Quarter of 2020

Highlights for the quarter ended September 30, 2020 included the following:

• The cash balance of $4,686,059 as of September 30, 2020 is the highest reported cash balance in the Company’s history and a 70% increase over the Q2 2020 cash balance of $2,754,087.
• In August 2020, the Company was approved for Paycheck Protection Program (“PPP”) loans in the amount of $1.976 million by a U.S. bank. These loans are guaranteed by the U.S. Small Business Administration under The CARES ACT in response to the COVID-19 pandemic. These loans, which bear interest at 1%, are repayable monthly over a five-year period beginning in 2021. If certain conditions are met, the loans may be partially or fully forgiven.
• Management estimated that the criteria for forgiveness for $1.1 million of the PPP loans had been met by the end of Q3. Management further estimates that by the end of Q4, the criteria for forgiveness on $1.778 million of the PPP loans will be met and anticipates forgiveness on 90% of the total value of the PPP loans.
• Record operating cash flows of $2,370,159 for Q3 2020 which is a 10.77X increase over Q3 2019 operating cash flows of $201,311 and a 2.97X increase over Q2 2020 operating cash flows of $596,936. Of the Q3 2020 cash flows, $1,975,600 can be attributed to the PPP loans. In the absence of the PPP loans in Q3 and the Canadian Emergency Wage Subsidy in Q2, Q3 2020 cash flows of $394,559 would have still been the Company’s highest on record and 25.5% higher than the previous record set in Q2 2020.  
• Q3 2020 revenues of $4,231,326 increased by 6.2% relative to Q2 2020 revenues of $3,983,402 and were 4.4% lower than Q3 2019 revenues of $4,424,350.