MedMira Reports First Quarter Results FY2021

HALIFAX, Nova Scotia, Dec. 24, 2020 (GLOBE NEWSWIRE) -- MedMira Inc. (MedMira) (TSXV: MIR), reported today on its financial results for the quarter ended October 31, 2020.

Profit and Loss Highlights

• Revenue: The Company recorded revenues in Q1 FY2021 of $1,602,823 compared to $89,132 in Q1 FY2020. The increase in revenue was due to the Company’s revenues generated from sales of the REVEALCOVID-19^TM Total Antibody Test and associated products and services.
• Gross Profit: The Company recorded a gross profit in Q1 FY2020 of $1,362,271 compared to $71,688 for the same period last year. The overall gross margin percentage on sales decreased by 5% from 80% in Q1 FY2020 to 75% in this financial quarter. This decrease was due to the higher supplier pricing and approximately 5 times higher shipping costs during the lock downs and various restrictions caused by the COVID-19 pandemic
• Operating expenses: The Company recorded for this quarter operating expenses of $478,921 compared to $354,997 in Q1 FY2020. The increase of 35% in operating expenses was primarily due to additional research and development costs and other direct costs associated with sales such as logistic costs during the COVID-19 pandemic.
• Net (loss) income: The Company recorded a net income of $715,172 compared to a net loss of $468,673 in Q1 FY2020.

Balance Sheet Highlights

• Assets: The Company had an increase of its assets by $1,164,301 between Q4 FY2020 and Q1 FY2021 which was mainly due to an increase in cash, trade receivables and inventories.
• Liabilities: The Company’s liabilities increased by $449,129 between Q4 FY2019 and Q1 FY2020. The Company’s current liabilities increased by $497,417 or 3% was mainly due to increases in deferred revenue and accounts payable.
• Loans in default decreased by $38,850 or 1% compared to last quarter. All long and short terms debts are currently under negotiation to restructure terms and conditions of repayment.
• Working Capital deficit: As a result of the changes noted above, the Company recorded a lower working capital deficit of $718,539 or 5% compared to last quarter.

The majority of current revenue is generated from the REVEALCOVID-19^TM Total Antibody Test as well as associated products and services. Such disproportionate contribution to the revenue may expose the Company to certain financial risks. To mitigate such risks, the Company does not solely rely on the marketing and sale of REVEALCOVID-19 Total Antibody Test, and, therefore, is continuously working on the development, validation, and regulatory approval of a number of high-demand products. The aim of this product diversification strategy is to counter act any macro economical changes and other non-economic factors.