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Media Advisory – CAE’s FY2022 fourth quarter and full-year financial results and conference call

Media Advisory – CAE’s FY2022 fourth quarter and full-year financial results and conference call

MONTREAL, Might 30, 2022 /CNW Telbec/ – (NYSE: CAE) (TSX: CAE) – CAE will keep a meeting call on June 1st at 8:30 a.m. Japanese Time (ET) to deliver analysts and institutional traders with a critique of CAE’s fiscal calendar year 2022 fourth quarter and total-year benefits and will launch its outcomes, in progress on Could 31st, 2022, after current market shut.

Marc Dad or mum, CAE’s President and Main Government Officer, Sonya Branco, CAE’s Government Vice President, Finance and Main Financial Officer, and Andrew Arnovitz, CAE’s Senior Vice President, Trader Relations and Enterprise Possibility Management, will take part in this contact supposed for money analysts, institutional buyers and the media. Remember to note that the media will have the chance to question questions immediately following the analysts’ question period.

The conference will be webcast stay on CAE’s internet site at www.cae.com. The webcast will be archived adhering to the celebration.

Party:    CAE’s FY2022 Q4 and total-12 months money benefits and conference get in touch with

Date:     June 1st, 2022

Time:     8:30 a.m. ET

Cell phone figures for conference simply call:

Region

Cellular phone range

North The usa

1-877-586-3392

Canada

+1-416-981-9024

Australia

1800703671

Belgium

080077657

France

0800919393

Germany

08001816101

Netherlands

08000222280

Singapore

8001012594

United Kingdom

08004960381

 

Fast replay (out there 3 several hours just after the connect with finishes for 48 several hours): 1-800-558-5253 or +1-416-626-4100
– Entry code: 22019146

About CAE

CAE is a significant engineering enterprise, at the foremost edge of digital immersion, offering options to make the environment a safer location. Backed by a report of 75 many years of sector firsts, we carry on to reimagine the client experience and revolutionize education and operational support methods in civil aviation, defense and stability, and healthcare. We are the husband or wife of preference to customers globally who operate in intricate, substantial-stakes and largely controlled environments, where successful results are critical. As testament to our customers’ ongoing desires for our remedies, above 60 percent of CAE’s profits is recurring in character. We have the broadest world presence in our marketplace, with much more than 13,000 workers, 180 web-sites, and teaching areas in more than 35 nations. www.cae.com

Comply with us on Twitter: @CAE_Inc
Fb: www.facebook.com/cae.inc 
LinkedIn: www.linkedin.com/business/cae
Hashtags: #CAE #CAEpilot

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SOS Limited Reports 2021 Full Year Financial Results

SOS Limited Reports 2021 Full Year Financial Results

Revenue Jumps 612{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $357.8 million

Gross Profit Improves 62.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $21.1 million

Mining Operations Begin Transitioning to the U.S.

QINGDAO,China, May 2, 2022 /PRNewswire/ — SOS Limited (“SOS” or the “Company”) (NYSE: SOS) today reported its full year financial results for the twelve-months ended December 31, 2021.

Revenue was $357.8 million, 612{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the twelve-months ended December 31, 2020. Gross Profit increased to $21.1 million from $13.0 million, over the same period.

Results from Operations

Revenue

Net revenue was $357.8 million, up 612{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the prior period. The robust growth of revenue demonstrated the strong and effective execution of the Company’s strategy, mainly due to rapid market expansion and the addition of crypto-mining and commodity trading operations. Growth was driven by taking advantage of our block-chain expertise.

Audited condensed consolidated Statements of comprehensive of loss

(US$ thousands, except share data and per share data, or otherwise noted)

Twelve months ended

31-Dec-20

31-Dec-21

$

$

Revenue

50,317

358,042

Business taxes and surcharges

(28)

(221)

Net revenue

50,289

357,821

Operating costs

(37,295)

(336,752)

Gross profit

12,994

21,070

Gross profit ratio

25.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

5.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

As of December 31, 2021, SOS focused on six product lines including insurance marketing, telecom call centers, bank call center, SaaS services, cryptocurrency mining and commodity trading.

Revenue by products

FY2021

FY2020

Product lines

$”000″

Percentage

$”000″

Percentage

Commodity trading

275,363

77.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

–

0.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Insurance marketing

65,880

18.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

49,234

97.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Cryptocurrency mining

15,427

4.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

–

0.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Telecom call center

338

0.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

920

1.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Bank call center

–

0.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

76

0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

SaaS

813

0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

58

0.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Total net revenue

357,821

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

50,289

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Our traditional business of insurance marketing increased 34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $65.9 million year over year, as a result of rapid market expansion from regional to national customer base in China. We added commodity trading to our product mix during the year. We buy and sell commodity products such as sesame, sulfur, asphalt and circuit modular units. Our trading business recorded revenue of $275.4 million, which represents 77.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of total sales. We booked revenue of $15.4 million from our cryptocurrency mining business from a partial year of operation. We started generating revenue from our mining pools in February 2021 and mined 174.28 units of BTC and 2,770.09 units of ETH by the end of the second quarter. In July 2021, due to the Chinese government’s ban on certain types of cryptocurrency mining activities, we shut down our mining operations in China and began transitioning our crypto mining operations to the U.S. The Company launched its U.S. mining operations in Wisconsin this April.

Operating Costs

Operating costs increased to $336.8 million for the period ended December 31, 2021, compared to operating costs of $37.3 million for the period ended December 31, 2020. The increase in operating costs and expenses was driven primarily from the growth in our commodity trading inventory and data acquisition costs for our insurance marketing businesses and a share-based compensation plan. We also saw an increase from depreciation on cryptocurrency mining equipment, consulting and legal fees.

General and Administrative Expenses

General and administrative expenses were $62.4 million for the period ended December 31, 2021, representing an increase of approximately 21.5 times compared to general and administrative expenses of $2.9 million for the period ended December 31, 2020. The increase in general and administrative expenses was mainly associated with employee and management’s share-based compensation expenses of $33.5 million, professional and consultancy fee of $17.1 million, wages & salary expenses of $5.3 million, $1.2 million of bad debt expense and significant increases in legal expenses related to class action lawsuit against the Company and its management.

GAAP Operating Loss and EPS

Our net loss for the period ended December 31, 2021 was $43.9 million according to GAAP, compared to profit of $4.9 million for the period ended December 31, 2020. The loss resulted from increased expenses related to increased operating expenses, legal and consulting fees and share-based compensation expenses. Gross margin dropped to 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in FY 2021 from 26{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the prior year driven by the significant growth in the lower margin commodity trading business, increased operating expenses and the interruption of crypto-mining operations.

GAAP EPS Basic was $(0.020) per share for the period ended December 31, 2021, as compared to $0.0135 per share for the period ended December 31, 2020.

GAAP EPS Diluted was $(0.018) per share for the period ended December 31, 2021, as compared to $0.0090 per share for the period ended December 31, 2020.

Income Tax

The company incurred $0.74 million in corporate income tax for the current period.

Balance Sheet and Cash Flow

As of December 31, 2021, the Company had cash and cash equivalents of $338.0 million, compared to $3.7 million for the period ended December 31, 2020. The net increase in cash flow was mainly due to its financing activity through registered direct offerings. The Company believes that its cash resources are adequate to fund its current operations and short-term growth initiatives. The Company, through its subsidiary, SOS International Trading Co., Ltd. purchased commodity for trading inventory of $96.1 million.

Cash Flow Used For Investment Activities

The Company, through its subsidiaries, SOS Information Technology New York Inc. and China SOS Ltd., acquired BTC and ETH mining equipment for an aggregate cost of approximately $31 0 million

Financing Activities

The Company received aggregate net proceeds of US$585.8 million from registered direct offerings during the year.

Audited condensed consolidated statement of cash flow

(US$ thousands, except share data and per share data, or otherwise noted)

31-Dec-20

31-Dec-21

Cash flows from operating activities:

US$”000″

US$”000″

Net (loss)

4,404

(49,251)

Adjustments:

Depreciation and amortization

2

5,203

Share-based compensation

506

33,537

Depreciation of ROU

843

Accretion of finance leases

152

Allowance for doubtful accounts-accounts receivable

1

963

Allowance for doubtful accounts-Other receivable

158

269

Impairment of cryptocurrencies

925

Loss on acquisition

5,679

–

Income from disposal of discountined operations

(63)

Inventory

–

(96,071)

Changes in operating assets and liabilities:

Accounts receivables

(2,065)

(15,894)

Ohter receivables

(36,019)

(125,861)

Amount due from related parties

(2,871)

(4,146)

crptocurrencies

–

(14,502)

Accrued liabilities

–

19,815

Accounts payable

(11,940)

28,409

Tax payable

292

(8,371)

Other payables

1,484

5,003

Amount due to related parties

(3,666)

868

Contract liability

546

(454)

Lease liabilities

Net cash （used in）in generating from operating activities:

(43,552)

(218,563)

Cash flows from investing activities:

Purchase of property, equipment and software

(501)

(33,034)

Investment in equity

–

0

Disposition of assets

3,500

–

Net cash (used in)generated from investing activities

2,999

(33,034)

Cash flows from financing activities:

Repayment of principle portion of lease liabilities

(1,764.00)

Proceeds from share issuance, net of issuance costs

3,578

585,839

Proceeds from private equity placement,net of issuance costs

39,973

–

Net cash generated from(used in) financing activities

43,551

584,075

Effect of exchange rates on cash

683

1,825

Net increase/(decrease), effect of exchange rate changes on cash and cash equivalent

3,680

334,303

Cash and cash equivalent at beginning of the period

42

3,722

Cash and cash equivalent at end of the period

3,722

338,026

Yandai Wang, the CEO comments that “In the past year, we have provided technical services through artificial intelligence and blockchain technologies by leveraging data-driven marketing, digital based commodity trading, digital supercomputer and emergency rescue technology. Through this we were able to realize revenue of $357.8 million as of December 31,2021, which represents 661{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} growth. over 2020.

In our data marketing business, we rely on artificial intelligence technology & comprehensive intelligent screening to acquire customers more effectively; we also utilize blockchain technology to solve the information security problems to provide customers with one-stop benchmark customer acquisition services; In our digital-based commodity trading segmentt, we make full use of the accurate traceability of blockchain technology, product quality assurance, smart contracts, Intelligent trading matching technology to provides a one-stop trust trading platform for customer trading; in emergency rescue, we team up with some industry experts to invest and design emergency rescue watches, Emergency rescue amphibious rescue boat.

We believe we are well-positioned to grow our business in all segments. Within China we are focused on data-driven insurance marketing, and commodity trading. In U.S. we have launched our supercomputing hosting center in Wisconsin.

Mainland China, as one of the world’s largest markets, demands huge amount of raw material products and food commodities to sustain its long -term growth. In 2020 we established our commodity trading business to bridge supply and demand by providing seamless trading exchange through our block-chain technology and plat-form. We started from green field and are proud to report that our commodity trading business generated revenue of $275million during the twelve -month period ended December 31,2021.

Our aspiration is to expand beyond China especially in North America. We are in the process of building a leading supercomputer center in North America which will provide customers with cryptocurrency mining capacity & hosting service.

One of the tools we used to accelerate this goal is the innovative mobile container data center. We believe it will improve user experience and be attractive to small to medium size customers. Our plans continue to proceed as we have secured a renewable energy supply of 25 MW at its facility in Price County Wisconsin, which is expected to be increased to 37MW.

We look forward to continued growth and expansion in both China and U.S.

About SOS Limited

SOS is an emerging blockchain-based and big data-driven marketing solution provider，SOS is also engaged in blockchain and cryptocurrency operations, which currently include cryptocurrency mining and maybe expand into cryptocurrency security and insurance in the future Since April 2021, we launched commodity trading via our subsidiary SOS International Trading Co. Ltd, The core infrastructure of SOS’ marketing data, technology and solutions to insurance and emergency rescue services is built on big data, blockchain-based technology, cloud computing, AI, satellite, and 5G network, etc. SOS has created a cloud “software as a service (SaaS)” platform for emergency rescue services, with three major product categories: basic cloud, cooperative cloud, and information cloud. This system provides innovative marketing solutions to clients such as insurance companies, financial institutions, medical institutions, healthcare providers, auto manufacturers, security providers, senior living assistance providers, and other service providers in the emergency rescue services industry. For more information, please visit: http://www.sosyun.com/ .

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. SOS cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target,” “look” or similar expressions may identify forward-looking statements. Specifically, forward-looking statements may include statements relating to the Company’s:

  • ability to execute its business plan;

  • changes in the market for SOS’ products and services; and

  • expansion plans and opportunities.

These forward-looking statements are based on information available as of the date of this press release and our management’s current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

These risks and uncertainties include, but not are limited to, the risk factors described by SOS in its filings with the Securities and Exchange Commission (“SEC”). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to:

  • US government’s policies and regulatory oversight of crypto currency mining operation and our other operations;

  • SOS’s cryptocurrency mining, commodity trading and marketing solutions businesses are still under development, with many uncertainties in integration of these various business segments;

  • Failure to manage the newly launched commodities trading business effectively;

  • Loss of key customers in the commodity trading business;

  • failure to access a large quantity of power at reasonable costs could significantly increase SOS operating expenses and adversely affect our demand for SOS’s mining activities;

  • shortages in, or rises in the prices of mining machines may adversely affect the Company’s business;

  • any significant or prolonged failure in the data warehouse facilities and data mining facilities that SOS operates or services it provides, including events beyond its control, would lead to significant costs and disruptions and would reduce the attractiveness of its facilities, harm its business reputation and have a material adverse effect on its results of operation;

  • security breaches or alleged security breaches of our data warehouses could disrupt SOS operations and have a material adverse effect on its business, financial condition and results of operation; and

  • other risks and uncertainties indicated in SOS’s SEC reports or documents filed or to be filed with the SEC by SOS.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

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Bank expected to report lackluster Q1 results

Bank expected to report lackluster Q1 results

JPMorgan Chase & Co. (JPM), the premier U.S. financial institution by assets, is the to start with amid a lineup of mega banking institutions to unveil to start with quarter outcomes this week as earnings period kicks off.

The organization has been a solid outperformer in the banking sector, which lagged the broader sector meaningfully this year amid worries in excess of U.S. bank ties to Russia and worries of an financial slowdown. Continue to, shares of JPMorgan are down 18.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} yr to day.

JPMorgan released its quarterly final results Wednesday. Listed here ended up the critical figures versus anticipations, according to analysts polled by Bloomberg.

  • Revenue (altered): $31.59 billion vs. $31.44 billion predicted, $30.35 billion in Q4

  • Earnings for each share (modified): $2.63 for each share vs. $2.72 anticipated, $3.33 for each share in Q4

Wednesday’s report mirrored a lackluster quarter for the banking powerhouse pursuing a unstable start off to the calendar year on Wall Avenue as the Russia-Ukraine war and financial uncertainty weighed on marketplaces.

JPMorgan claimed a reduced-than-envisioned net money for the very first quarter of $8.3 billion, or $2.63 for every share, down 42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the exact period of time in 2021 when the lender posted a financial gain of $14.3 billion, or $4.50 for every share.

Financial commitment banking also came in short of analyst estimates at $2.1 billion as opposed to $2.25 billion expected as geopolitical tensions in Jap Europe stalled deal action in the to start with quarter. Expenditure banking charges ended up down 31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} because of to reduce fairness and credit card debt underwriting exercise, the lender claimed, marking the cheapest costs recorded considering that the to start with quarter of 2021.

Shares of JPMorgan dropped as a lot as 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in pre-industry investing.

“We keep on being optimistic on the financial state, at least for the quick time period but see considerable geopolitical and economic issues ahead owing to substantial inflation, provide chain issues and the war in Ukraine,” CEO Jamie Dimon reported in a assertion.

The banking big also noted adding $902 million in credit score reserves for potential bank loan losses, warning of “greater chances of downside threats.”

In the very same quarter very last 12 months, financial institution income benefited considerably from robust dealmaking exercise and the release of funds set aside for probable COVID losses.

The bank documented improving upon loan progress, with regular financial loans up 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Among the metrics that will be closely viewed by buyers this 12 months is the company’s web interest revenue, the variance amongst the bank’s earnings on its lending pursuits and interest it pays to depositors. The figure stands to gain from larger curiosity prices, but if the Federal Reserve hikes rates far too aggressively and guidelines the financial state into a recession JPMorgan’s lending activity may get a hit.

Internet interest cash flow in the course of the 1st quarter was $14. billion, up 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, the lender noted, citing equilibrium sheet growth and larger rates.

Mattapan, MA - November 23: J.P. Morgan Chase CEO Jamie Dimon spoke while visiting Mattapan, MA for a ribbon-cutting center for Chase's new Mattapan Community Center on November 23, 2021. (Photo by David L. Ryan/The Boston Globe via Getty Images)

Mattapan, MA – November 23: J.P. Morgan Chase CEO Jamie Dimon spoke when checking out Mattapan, MA for a ribbon-reducing center for Chase’s new Mattapan Group Center on November 23, 2021. (Picture by David L. Ryan/The Boston World through Getty Photos)

Dimon lately warned in his closely-study annual letter to shareholders before this thirty day period that Russia’s ongoing invasion of Ukraine is predicted to meaningfully sluggish the U.S. and international economy.

The financial institution chief also said in the letter JPMorgan may well choose a $1 billion reduction about time owing to the war. On the other hand, Dimon did not elaborate on an correct time frame or how the estimate was calculated. Despite the fact that the bank stated it is not nervous about its immediate publicity to Russia, the establishment is anxious about the “secondary and collateral effects” the crisis and sanctions pose on so numerous corporations and countries.

JPMorgan economists predict U.S. gross domestic solution (GDP) will advance roughly 2.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, in comparison to the institution’s original forecast of 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. During a get in touch with with journalists right after the financial institution claimed earnings on Wednesday, Dimon mentioned he was not predicting a economic downturn, but that 1 was “certainly” feasible.

Additional bank reviews are due out right before markets open Thursday from Wells Fargo (WFC), Goldman Sachs (GS), Morgan Stanley (MS), and Citigroup (C).

This put up is breaking. Make sure you check out back for updates.

—

Alexandra Semenova is a reporter for Yahoo Finance. Abide by her on Twitter @alexandraandnyc

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The Parent Company Reports Fourth Quarter and Full Year 2021 Financial Results

The Parent Company Reports Fourth Quarter and Full Year 2021 Financial Results

Doubled Direct-to-Consumer revenue to 50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales in Q4 2021 compared with 24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in Q1 2021

Expanded reach to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of California population with 11 retail stores, the second largest retail footprint in the state, 6 delivery depots and an immersive mobile shopping app

Appoints Tanisha Robinson as Chief Transformation Officer and Esther Song as Chief Marketing Officer

Conference Call to be Held, April 1, 2022, at 1:00 p.m. ET

SAN JOSE, Calif., March 31, 2022 /CNW/ – TPCO Holding Corp. (“The Parent Company” or the “Company”) (NEO: GRAM.U) (OTCQX: GRAMF), a leading consumer-focused California cannabis company, today announced its financial results for the fourth quarter (“Q4 2021”) and full year (“FY 2021”) ended December 31, 2021. All amounts are expressed in U.S. dollars.

The Parent Company (CNW Group/TPCO Holding Corp.)

The Parent Company (CNW Group/TPCO Holding Corp.)

Q4 2021 Financial Highlights

  • Net sales for Q4 2021 were $39.6 million

  • Gross profit for Q4 2021 was $2.3 million, or 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales

  • Net (income) loss and comprehensive (income) loss for Q4 2021 was $50.6 million

  • Adjusted EBITDA loss for Q4 2021 was $27.5 million. Adjusted EBITDA removes the effects of changes in fair value of financial instruments, impairment charges and other non-cash items.

FY 2021 Financial Highlights

  • Net sales for FY 2021 were $173.4 million

  • DTC Revenue for FY 2021 was $54.2 million or 31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of sales

  • Wholesale revenue for FY 2021 was $119.2 million of 69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of sales

  • Gross profit for FY 2021 was $20.2 million or 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales

  • Net (income) loss and comprehensive (income) loss for FY 2021 was $587 million

  • Adjusted EBITDA loss for FY 2021 was $62 million.

  • Unrestricted Cash and equivalents totaled $165.3 million as of December 31, 2021

Management Commentary

“2021 was a foundational year, as we developed an integrated omnichannel retail platform that provides us with direct access to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of California’s adult population, positioning us to execute on our goal of becoming the number one choice for consumers by providing for both ease of access and high-quality innovative cannabis products,” said Troy Datcher, Chief Executive Officer of The Parent Company. “We have added significant talent to our organization, including industry experts and seasoned professionals that provide us with the depth of knowledge and expertise we need to lead in this market. Talent is incredibly important, and we are extremely proud of the caliber of team we have assembled. I also want to thank our entire team for the work they have done over the last year, which was instrumental in strongly positioning us for 2022 and beyond.”

Mr. Datcher continued, “While the challenges in the California market remain, including low bulk wholesale flower and oil pricing, high taxes and persisting illicit market, we have successfully begun to pivot our focus to our higher margin direct to consumer revenue, doubling DTC revenue as a percentage of sales between the first and fourth quarters. Today more than ever, we believe we are well positioned to win by leveraging our high-quality indoor grown cannabis, strong consumer brands and direct retail insights to innovate, create, and launch new products directly into the market that today’s consumers demand.”

Mr. Datcher added, “With our consumer-first approach, state-wide DTC retail footprint, robust branded products portfolio, and focus on higher value revenue streams, our priority for the remainder of the year will be preserving our strong balance sheet by reducing our cash burn while utilizing our DTC focus to drive improved margin to generate long-term value for our shareholders. Given our progress in 2021 and subject to any opportunistic partnership or acquisition transactions, we have set a goal to maintain a minimum cash balance of approximately $100 million at 2022 year end, sufficient to sustain our business for a minimum of three years, and pivot to generating positive cash flow in fiscal year 2023.”

Mr. Datcher concluded, “I am proud of our commitment to social equity initiatives and thrilled with the initial success of our partners. I look forward to empowering more entrepreneurs of color, who continue to be disproportionately impacted by current cannabis policies, while bringing our customers high-quality products, experiences, and culturally relevant brands. With the investments we made in 2021, we are ready to execute on this mission in 2022.”

Leadership Team Appointments and Board Changes

The Company further announced today the appointments of Tanisha Robinson as Chief Transformation Officer and Esther Song as Chief Marketing Officer. Additionally, the Company announced that Troy Datcher, Chief Executive Officer of The Parent Company, will be proposed as a director nominee to stand for election to the Board of Directors as Carol Bartz and Jeffry Allen have advised their intention to retire from the Board at the Company’s upcoming 2022 Annual meeting.

Mr. Datcher commented, “I am thrilled to officially welcome Tanisha and Esther to the team. We are proactively building a solid foundation for long term success, and I look forward to leveraging Tanisha and Esther’s extensive industry expertise to further mature and scale our organization. I’m confident we have assembled the right combination of high-quality products, compelling consumer brands, and leadership team to achieve our goals.

Ms. Robinson founded W*nder (pronounced “Wonder”), a company focused on creating accessible, reliable, intuitive cannabis and plant-based beverages to enhance and improve how consumers experience the world. Prior to her role at W*nder, she worked as Chief Disruption Officer of BrewDog globally, and was the first CEO of BrewDog USA, leading the company from its initial startup phase to becoming one of the largest and fastest growing craft breweries in the United States. In addition to her experience at W*nder and BrewDog, Ms. Robinson has founded several successful companies such as Print Syndicate, a design, technology, and marketing company, and TicketFire, a mobile app that allows consumers to use, transfer and sell paper tickets by converting them to a mobile format. Robinson also served in the US Army as an Arabic linguist. Her studies in Arabic at Ohio State University provided her the opportunity to work on women’s and human rights in Damascus, Syria, for two years. She is a featured international speaker on entrepreneurship, conscious capitalism, innovation, disruption and leadership and serves on the board of The Columbus College of Art and Design (“CCAD”) and Mount Carmel Health System.

Ms. Song has established expertise in public relations and marketing from over 20 years of experience in building brand visibility through strategic communications and global marketing campaigns, prioritizing direct consumer relationship building through loyalty programs and authentic storytelling. Prior to joining TPCO, she held the position of Chief Marketing Officer for Pure Beauty, and prior to that, similar roles at Canndescent and MedMen. During her time at MedMen, Song successfully launched a multi-state loyalty program and an integrated system allowing delivery and curbside services. In addition to her experience at MedMen, Song also led global digital and VIP public relations at fashion brands, including Tory Burch, Tod’s and public relations agency, BPCM. Song is currently on the leadership team of Cannabis for Black Lives.

Q4 2021 Operational Highlights

  • Expanded the Company’s California retail footprint to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the population through definitive agreements to acquire Coastal Holding Company, LLC (“Coastal”), a retail dispensary license holder and operator with six retail licensed locations, five currently operating, and two delivery depots.

  • In preparation of potentially being permitted to list the Company’s common shares and warrants on the New York Stock Exchange or the Nasdaq Stock Market upon regulatory advancement, the Company’s filed its Form 10 registration statement with the United States Securities and Exchange Commission (the “SEC”), which became effective pursuant to the Securities Exchange Act of 1934, as amended on October 8, 2021.

  • Further strengthened the senior management team with the appointments of Kerry Arnold as Chief People Officer of the Company and Tiffany McBride as Managing Director of Social Equity Ventures.

  • Expanded suite of edible offerings with the launch of DELI Dimes, a new gummy cannabis product available in three flavors: Black Cherry, Fresh Watermelon and Red Berry.

Subsequent Events

  • On January 28th, Company insiders, including the entire Board of Directors, Troy Datcher, Chief Executive Officer, Mike Batesole, Chief Financial Officer and other members of the senior leadership team, voluntarily entered into a twelve-month extension of lock-up agreements with the Company (the “Lock-Up Agreements”) with respect to an aggregate of over 34 million shares of common stock (“Lock-up Shares”), or approximately 35 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total issued and outstanding shares of common stock of the Company as of July 28, 2021.

FY 2021 Financial Results

Net sales for FY 2021 were $173.4 million, of which $54.2 million was Direct to Consumer sales, and $119.2 million was Wholesale.

Gross profit for FY 2021 was $20.2 million, representing gross margin of 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Company continues to focus on increasing direct-to-consumer sales as a percentage of overall revenue, to shift its sales to higher margin product categories, which over time, is expected to drive gross profit improvements.

Operating expenses for FY 2021 were $184.4 million, cash expenses included general and administrative costs of $47.3 million, salaries and benefits of $36.9 million, and sales and marketing expenses of $42.6 million. Non-cash expenses included: sales and marketing $30.2 million, stock-based compensation of $20.5 million, allowance for bad debts of $4.7 million and depreciation & amortization of $27.6 million.

Net (income) loss and comprehensive (income) loss for FY 2021 was $587 million, which is primarily attributable to non-cash impairment charges of $654.3 million.

Adjusted EBITDA loss for FY 2021 was $62 million. The Adjusted EBITDA loss in 2021 was primarily attributable to the closing of the Qualifying Transaction and the integration initiatives undertaken since the closing.

Unrestricted Cash and cash equivalents totaled $165.3 million as of December 31, 2021. Since closing the Company’s qualifying transaction, the Company has invested $48.8 million in acquisitions and capital investments, $6.5 million to repurchase its own shares and $81.9 million or an average of $6.8 million of cash per month on operations as it integrates and scales its businesses.

The Company’s consolidated financial statements, as well as its accompanying management discussion and analysis of financial condition and results of operations (“MD&A”) have been included in its Annual Report on Form 10-K filed on EDGAR (www.sec.gov) as well as SEDAR (www.sedar.com). Please refer to The Parent Company’s MD&A for additional detail and discussion on the Company’s results from operations.

Conference Call

The Parent Company will host a conference call tomorrow, to discuss these results. Troy Datcher, Chief Executive Officer, and Mike Batesole, Chief Financial Officer will host the call starting at 1:00 p.m. Eastern time. A question-and-answer session will follow management’s prepared remarks.

DATE:

Friday, April 1st, 2022

TIME:

1:00 p.m. Eastern Time

WEBCAST:

Click Here

DIAL-IN NUMBER:

(888) 254-3590 or (647) 794-4605

CONFERENCE ID:

2151082

REPLAY:

1 (888) 203-1112 or 1 (647)-436-0148
Available until 12:00 midnight Eastern Time Friday, April 8, 2022

Replay Code: 2151082

Financial results and analyses are available on the Company’s website (ir.theparent.co), EDGAR (www.sec.gov) and SEDAR (www.sedar.com).

About The Parent Company

Formed in January 2021, The Parent Company is a leading consumer-focused California cannabis company. The company’s three manufacturing facilities provide unparalleled access to high-quality, low-cost cannabis, while its vast wholesale distribution network of more than 450 California dispensaries, a direct-to-consumer omnichannel platform, six consumer delivery hubs and eleven omni-channel retail locations, currently service approximately 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the largest legal cannabis market in the country. The Company’s curated product portfolio includes eight valuable and scalable brands, including Monogram by Shawn “JAY-Z” Carter, Caliva, Deli, Fun Uncle, and Mirayo, which sets the tone for The Parent Company’s industry leadership in California and beyond.

In addition to its vast manufacturing infrastructure, consumer reach and cultural influence, The Parent Company is committed to using its resources and status to play a significant role in molding a more equitable cannabis industry. Its social equity ventures initiative, established by Chief Visionary Officer Shawn “JAY-Z” Carter, was created to break down the systematic barriers Black and other minority entrepreneurs face as they endeavor to secure meaningful participation, growth and leadership in the multibillion-dollar legal cannabis industry.

Shares of The Parent Company common stock are traded on NEO Exchange under the ticker symbol “GRAM.U” and on the OTCQX under the ticker symbol “GRAMF”.

For the latest news, activities, and media coverage, please visit www.theparent.co or connect with us on Instagram, LinkedIn, and Twitter.

Forward Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation which reflects The Parent Company’s current expectations regarding future events. The words “will”, “expects”, “intends”, “believes” and similar expressions are often intended to identify forward looking information, although not all forward-looking information contains these identifying words.

Specific forward-looking information contained in this press release includes, but is not limited to, statements concerning (i) the Company’s future financial performance (ii) ability of The Parent Company to execute on its growth strategy; (iii) expectations regarding future corporate development activities; (iv) expectation regarding U.S. listing and regulatory landscape; and (v) expansion of the Company’s direct-to-consumer line of its business. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond The Parent Company’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions, changes in applicable laws, the U.S. and Canadian regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment of senior management, as well as the factors discussed under the heading “Risk Factors” in The Parent Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022, which is available on the SEC’s website at www.sec.gov and on SEDAR at www.sedar.com. The Parent Company undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Non-GAAP Financial Measures

This news release contains the non-GAAP financial measure “Adjusted EBITDA,” which is not recognized under GAAP and does not have a standardized meaning prescribed by GAAP. As a result, this measure may not be comparable to similar measures presented by other companies. For a reconciliation of “Adjusted EBITDA” to the most directly comparable financial information presented in the Financial Statements in accordance with GAAP, see the section entitled “Reconciliation of Non-GAAP Measures” below.

Adjusted EBITDA

We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define Adjusted EBITDA as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense and debt amortization, adjusted to exclude extraordinary items, non-recurring items and, other non-cash items, including, but not limited to (i) stock-based compensation expense, (ii) fair value change in contingent consideration and investments measured at Fair Value Through Profit and Loss (” FVTPL”), (iii) non-recurring legal and professional fees, human-resources, inventory and collections-related expenses, (iv) extra ordinary expenses related to COVID-19, (v) intangible and goodwill impairments and loss on disposal of assets, (vi) transaction costs related to merger and acquisition activities, and (vii) non-cash sales and marketing expenses.

Reconciliation of Non-GAAP Measures

Three Months

Year-ended

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

Net loss and comprehensive loss

$

(50,568,037)

(7,913,227)

$

(587,032,334)

$

(6,463,606)

Income taxes

5,645,521

–

(2,372,552)

–

Depreciation and amortization

8,790,536

–

27,615,762

–

Interest expense

1,455,241

–

5,183,817

–

EBITDA

(34,676,739)

(7,913,227)

(556,605,307)

(6,463,606)

Adjustments:

–

Share based compensation expense

3,005,477

–

20,456,297

–

Other non-recurring items:

–

Fair value change of contingent consideration

(8,821,983)

–

(229,819,070)

–

Loss on disposal of assets

(1,208,722)

–

2,447,985

–

Change in fair value of investments at FVTPL

832,172

–

1,250,990

–

Impairment loss

9,118,146

–

654,317,300

–

Provision for notes receivable

2,660,943

–

2,660,943

–

Write-off of prepaid inventory

1,620,891

–

1,620,891

–

Other taxes

–

–

2,243,441

–

De-SPAC costs

–

–

5,341,154

–

Restructuring costs

–

–

3,878,782

–

Sales and marketing expense

15,520

–

30,166,667

–

Adjusted EBITDA

$

(27,454,295)

(7,913,227)

$

(62,039,927)

$

(6,463,606)

Caution Regarding Cannabis Operations in the United States

Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute, or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation.

While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve The Parent Company of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of The Parent Company and any proceedings brought against the Company thereunder may adversely affect the Company’s operations and financial performance.

SOURCE TPCO Holding Corp.

Cision

Cision

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Horizon Technology Finance Announces Fourth Quarter and Full Year 2021 Financial Results

Horizon Technology Finance Announces Fourth Quarter and Full Year 2021 Financial Results

FARMINGTON, Conn., March 1, 2022 /PRNewswire/ — Horizon Technology Finance Corporation (NASDAQ: HRZN) (“HRZN”, “Horizon” or the “Company”), a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries, today announced its financial results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021 Highlights

  • Net investment income (“NII”) of $8.1 million, or $0.39 per share, compared to $3.9 million, or $0.21 per share for the prior-year period
  • Total investment portfolio of $458.1 million as of December 31, 2021
  • Net asset value of $245.3 million, or $11.56 per share, as of December 31, 2021
  • Annualized portfolio yield on debt investments of 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the quarter
  • HRZN funded 17 loans totaling $79.9 million
  • HRZN’s investment adviser, Horizon Technology Finance Management LLC (“HTFM”), originated $118.2 million through its lending platform (“Horizon Platform”), inclusive of the HRZN loans
  • Raised total net proceeds of approximately $12.8 million with “at-the-market” (“ATM”) offering program
  • Experienced liquidity events from seven portfolio companies
  • Cash of $45.9 million and credit facility capacity of $92.8 million as of December 31, 2021
  • Held portfolio of warrant and equity positions in 76 companies as of December 31, 2021
  • Undistributed spillover income of $0.51 per share as of December 31, 2021
  • Subsequent to quarter end, declared distributions of $0.10 per share payable in April, May and June 2022

Full Year 2021 Highlights

  • Net investment income of $28.2 million, or $1.41 per share for 2021, compared to $20.7 million, or $1.18 per share, for the prior year
  • Achieved portfolio yield on debt investments of 15.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for 2021
  • HRZN funded 49 loans totaling $297.1 million; experienced liquidity events from 20 portfolio companies

“The fourth quarter capped off a landmark year for Horizon and the Horizon Platform, including a record investment portfolio at year-end of over $450 million, and we are proud of our entire team’s efforts,” said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of Horizon.  “We generated NII of $0.39 per share, above our distribution level, while we continued growing our portfolio.  Once again, we successfully harnessed the increasing power of the ‘Horizon’ brand to drive strong loan originations in the quarter, while maintaining an impressive committed backlog and pipeline of venture debt opportunities.  In addition, HTFM’s predictive pricing strategy continued to prosper, as we completed seven portfolio exits, once again leading to a debt portfolio yield of over 16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, among the top of the industry.”

“Along with HRZN’s excellent growth, we finished the year with nearly 98{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of its portfolio 3-rated or better,” continued Mr. Pomeroy.  “We also recently further strengthened HRZN’s balance sheet and expanded its lending capacity, which should enable us to further grow the portfolio in 2022.  With demand for venture debt remaining at near-peak levels, and with an extensive committed backlog and pipeline, we believe HRZN is well situated in 2022 to continue to grow its portfolio and deliver compelling returns to its shareholders.”

Fourth Quarter 2021 Operating Results

Total investment income for the quarter ended December 31, 2021 grew 68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $16.9 million, compared to $10.1 million for the quarter ended December 31, 2020, primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio, as well as higher fee income.

The Company’s dollar-weighted annualized yield on average debt investments for the quarter ended December 31, 2021 and 2020 was 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 13.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively.  The Company calculates the dollar-weighted annualized yield on average debt investments for any period measured as (1) total investment income (excluding dividend income) during the period divided by (2) the average of the fair value of debt investments outstanding on (a) the last day of the calendar month immediately preceding the first day of the period and (b) the last day of each calendar month during the period. The dollar-weighted annualized yield on average debt investments is higher than what investors will realize because it does not reflect expenses or any sales load paid by investors.

Total expenses for the quarter ended December 31, 2021 were $8.7 million, compared to $5.9 million for the quarter ended December 31, 2020.  The increase was primarily due to a $0.9 million increase in interest expense, a $0.4 million increase in the base management fee and a $1.0 million increase in the performance-based incentive fee.

Net investment income for the quarter ended December 31, 2021 was $8.1 million, or $0.39 per share, compared to $3.9 million, or $0.21 per share, for the quarter ended December 31, 2020.

For the quarter ended December 31, 2021, net realized loss on investments was $0.9 million, or $0.04 per share, compared to net realized loss on investments of $18.6 million, or $0.99 per share, for the quarter ended December 31, 2020.

For the quarter ended December 31, 2021, net unrealized depreciation on investments was $4.9 million, or $0.24 per share, compared to net unrealized appreciation on investments of $17.1 million, or $0.91 per share, for the prior-year period.

Full Year 2021 Operating Results

Total investment income for the year ended December 31, 2021 was $60.0 million, an increase of 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} compared to $46.0 million for the year ended December 31, 2020.

Horizon’s dollar-weighted annualized yield on average debt investments for the year ended December 31, 2021 and 2020 was 15.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 14.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively.

For the full year ended December 31, 2021, net investment income was $28.2 million, or $1.41 per share, compared to net investment income of $20.7 million, or $1.18 per share, in the prior year.

For the full year ended December 31, 2021, net realized loss on investments was $3.2 million, or $0.16 per share, compared to net realized loss on investments of $14.7 million, or $0.84 per share, for the full year ended December 31, 2020.

For the full year ended December 31, 2021, net unrealized appreciation on investments was $3.2 million, or $0.16 per share, compared to net unrealized appreciation on investments of $0.3 million, or $0.02 per share, for the full year ended December 31, 2020.

Portfolio Summary and Investment Activity

As of December 31, 2021, the Company’s debt portfolio consisted of 45 secured loans with an aggregate fair value of $437.3 million. In addition, the Company’s total warrant, equity and other investments in 78 portfolio companies had an aggregate fair value of $20.8 million.  Total portfolio investment activity for the three months and full year ended December 31, 2021 and 2020 was as follows:

($ in thousands)

For the Three Months Ended 
December 31,

For the Full Year Ended
December 31,

2021

2020

2021

2020

Beginning portfolio

$              452,346

$              311,750

$        352,545

$        319,551





New debt investments

88,693

76,913

344,445

198,561





Principal payments received on investments

(2,171)

(4,485)

(13,474)

(24,829)





Early pay-offs

(66,579)

(30,644)

(174,536)

(121,429)





Accretion of debt investment fees

1,370

815

4,556

3,895





New debt investment fees

(930)

(938)

(3,261)

(2,353)





Warrants received in settlement of fee income

—

—

—

978





Proceeds from sale of investments

(9,169)

(134)

(52,954)

(8,335)





Dividend income from controlled affiliate investment

—

—

—

118





Net realized loss on investments

(568)

(17,672)

(2,451)

(13,727)





Net unrealized (depreciation) appreciation on investments

(4,917)

17,139

3,205

313





Other

—

(199)

—

(198)





Ending portfolio

$              458,075

$              352,545

$       458,075

$       352,545

Portfolio Asset Quality

The following table shows the classification of Horizon’s loan portfolio at fair value by internal credit rating as of December 31, 2021, September 30, 2021 and December 31, 2020:

($ in thousands)

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Number of Investments

Debt Investments at Fair Value

Percentage of Debt Investments

Number of Investments

Debt Investments at Fair Value

Percentage of Debt Investments

Number of Investments

Debt Investments at Fair Value

Percentage of Debt Investments

Credit Rating










4

9

$      104,863

24.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

5

$       56,337

13.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

6

$       77,950

23.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

3

34

322,084

73.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

35

359,658

83.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

24

240,933

72.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

2

1

3,470

0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

2

11,141

2.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

3

12,875

3.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

1

1

6,900

1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

1

2,800

0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

1

1,737

0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Total

45

$     437,317

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

43

$     429,936

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

34

$     333,495

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

As of December 31, 2021, Horizon’s loan portfolio had a weighted average credit rating of 3.2, compared to 3.1 as of September 30, 2021 and 3.2 as of December 31, 2020, respectively, with 4 being the highest credit quality rating and 3 being the rating for a standard level of risk.  A rating of 2 represents an increased level of risk and, while no loss is currently anticipated for a 2-rated loan, there is potential for future loss of principal.  A rating of 1 represents deteriorating credit quality and high degree of risk of loss of principal.

As of December 31, 2021, there was one debt investment with an internal credit rating of 1, with a cost of $11.5 million and a fair value of $6.9 million.  As of September 30, 2021, there was one debt investment with an internal credit rating of 1, with a cost of $3.0 million and a fair value of $2.8 million.  As of December 31, 2020, there was one debt investment with an internal credit rating of 1, with a cost of $6.8 million and a fair value of $1.7 million.

Liquidity and Capital Resources

As of December 31, 2021, the Company had $71.4 million in available liquidity, consisting of $45.9 million in cash and money market funds, and $25.5 million in funds available under existing credit facility commitments.

As of December 31, 2021, there was $53.5 million in outstanding principal balance under our $125.0 million revolving credit facility (“Key Facility”).  The Key Facility allows for an increase in the total loan commitment up to an aggregate commitment of $150.0 million. There can be no assurance that any additional lenders will make any commitments under the Key Facility.

Additionally, as of December 31, 2021, there was $78.8 million in outstanding principal balance under our $100 million senior secured debt facility with a large U.S.-based insurance company at an interest rate of 4.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.  Subsequent to year-end 2021, the Company amended its senior secured debt facility, increasing the commitment by $100 million to enable its wholly-owned subsidiary to issue up to $200 million of secured notes.  The amendment to the facility extends the investment period to June 2023 and the maturity date to June 2028. In addition, the amendment, among other things, reduces the applicable margin used to calculate the credit facility’s interest rate on the Company’s borrowings above $100 million. Such borrowings will be priced at the three-year USD mid-market swap rate plus 3.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The facility is collateralized by certain of the Company’s assets.

Horizon Funding Trust 2019-1, a wholly-owned subsidiary of HRZN, previously issued $100.0 million of Asset-Backed Notes (the “Notes”) rated A+(sf) by Morningstar Credit Ratings, LLC.  The Notes bear interest at a fixed interest rate of 4.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} per annum and have a stated maturity date of September 15, 2027.   The reinvestment period of the Notes ended July 15, 2021 and the maturity is September 15, 2027. As of December 31, 2021, the Notes had an outstanding principal balance of $70.5 million.

During the three months ended December 31, 2021, the Company sold 784,718 shares of common stock under its ATM offering program with Goldman Sachs & Co. LLC and B. Riley FBR, Inc.  For the same period, the Company received total accumulated net proceeds of approximately $12.8 million, including $0.3 million of offering expenses, from these sales.

As of December 31, 2021, the Company’s debt to equity leverage ratio was 106{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, within the Company’s 80-120{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} targeted leverage range.  The asset coverage ratio for borrowed amounts was 194{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Liquidity Events

During the quarter ended December 31, 2021, Horizon experienced liquidity events from seven portfolio companies. Liquidity events for Horizon may consist of the sale of warrants or equity in portfolio companies, loan prepayments, sale of owned assets or receipt of success fees.

In October, Getaround, Inc. prepaid its outstanding principal balance of $25.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee.  HRZN continues to hold warrants in the company.

In October, Topia Mobility, Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee.  HRZN continues to hold warrants in the company.

In October, HRZN received warrant proceeds of $0.1 million from its investment in Education Elements, Inc.

In November, CVRx, Inc. prepaid its outstanding principal balance of $20.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee.  HRZN continues to hold warrants in the company.

In November, MVI (ABC), LLC (assignee of Stereovision Inc.) paid its outstanding principal balance of $3.5 million on its venture loan, plus interest. 

In December, HRZN received $7.0 million from the sale of its debt investment in Betabrand Corporation. 

In December, HRZN received cash proceeds of $0.3 million from the sale of shares in Qualtrics International Inc., which HRZN received in connection with the sale of Clarabridge, Inc.

Net Asset Value

At December 31, 2021, the Company’s net assets were $245.3 million, or $11.56 per share, compared to $212.6 million, or $11.02 per share, as of December 31, 2020. 

For the quarter ended December 31, 2021, net increase in net assets resulting from operations was $2.3 million, or $0.11 per share, compared to a net increase in net assets resulting from operations of $2.4 million, or $0.13 per share, for the quarter ended December 31, 2020.

Stock Repurchase Program

During the quarter ended December 31, 2021, the Company did not repurchase any shares of its common stock. From the inception of the stock repurchase program through December 31, 2021, the Company has repurchased 167,465 shares of its common stock at an average price of $11.22 on the open market at a total cost of $1.9 million.

Recent Developments

On January 7, 2022, the Company funded a $1.3 million debt investment to an existing portfolio company, Unagi Inc.

On January 21, 2022, the Company funded a $7.5 million debt investment to a new portfolio company, a developer of prescription digital diagnostic and therapeutic products focused on pediatric behavioral health conditions.

On January 26, 2022, the Company funded a $5.0 million debt investment to an existing portfolio company, Castle Creek Biosciences, Inc.

On January 28, 2022, the Company funded a $1.0 million debt investment to an existing portfolio company, Alula Holdings, Inc.

On February 1, 2022, the Company funded a $2.5 million debt investment to an existing portfolio company, Dropoff, Inc.

On February 7, 2022, the Company funded a $5.0 million debt investment to an existing portfolio company, Canary Medical Inc.

On February 10, 2022, the Company funded a $7.5 million debt investment to a new portfolio company, a software-enabled services provider focused on planning, migration, operation and automation of SAP in the cloud.

On February 11, 2022, Quip NYC Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in Quip NYC Inc.

On February 23, 2022, the Company funded a $2.5 million debt investment to an existing portfolio company, NextCar Holding Company, Inc.

On February 24, 2022, LiquiGlide, Inc. prepaid its outstanding principal balance of $2.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in LiquiGlide, Inc.

Monthly Distributions Declared in First Quarter 2022

On February 25, 2022, the Company’s board of directors declared monthly distributions of $0.10 per share payable in each of April, May and June 2022.  The following table shows these monthly distributions, which total $0.30 per share:

Monthly Distributions

Ex-Dividend Date

Record Date

Payment Date

Amount per Share

March 17, 2022

March 18, 2022

April 14, 2022

$0.10

April 18, 2022

April 19, 2022

May 16, 2022

$0.10

May 17, 2022

May 18, 2022

June 15, 2022

$0.10


Total:

$0.30

After paying distributions of $1.25 per share deemed paid for tax purposes in 2021, declaring on October 22, 2021 a distribution of $0.10 per share payable January 14, 2022, and generating taxable earnings of $1.48 per share in 2021, the Company’s undistributed spillover income as of December 31, 2021 was $0.51 per share. Spillover income includes any ordinary income and net capital gains from the preceding tax years that were not distributed during such tax years.

When declaring distributions, the Horizon board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.

Conference Call

The Company will host a conference call on Wednesday, March 2, 2022, at 9:00 a.m. ET to discuss its latest corporate developments and financial results. To participate in the call, please dial (877) 407-9716 (domestic) or (201) 493-6779 (international). The access code for all callers is 13726805.  The Company recommends joining the call at least 10 minutes in advance.  In addition, a live webcast will be available on the Company’s website at www.horizontechfinance.com. 

A webcast replay will be available on the Company’s website for 30 days following the call.

About Horizon Technology Finance

Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of HRZN is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon Technology Finance Management LLC is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas, and Reston, Virginia. To learn more, please visit www.horizontechfinance.com.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in HRZN’s filings with the Securities and Exchange Commission. HRZN undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts:

Investor Relations:
ICR
Garrett Edson
[email protected] 
(860) 284-6450

Media Relations:
ICR
Chris Gillick
[email protected] 
(646) 677-1819

Horizon Technology Finance Corporation and Subsidiaries
Consolidated Statements of Assets and Liabilities
(Dollars in thousands, except share and per share data)


December 31,

December 31,

2021

2020





Assets



Non-affiliate investments at fair value (cost of $452,387 and $343,158, respectively)

$       458,075

$     343,498

Non-controlled affiliate investments at fair value (cost of $0 and $6,854, respectively)

—

7,547

Controlled affiliate investments at fair value (cost of $1,450 and $1,500, respectively)

—

1,500

Total investments at fair value (cost of $453,837 and $351,512, respectively)

458,075

352,545

Cash

38,054

19,502

Investments in money market funds

7,868

27,199

Restricted investments in money market funds

1,359

1,057

Interest receivable

6,154

4,946

Other assets

2,450

1,908

Total assets

$       513,960

$     407,157





Liabilities



Borrowings

$       257,613

$     185,819

Distributions payable

6,365

5,786

Base management fee payable

706

563

Incentive fee payable

2,015

975

Other accrued expenses

1,926

1,417

Total liabilities

268,625

194,560





Commitments and contingencies








Net assets



Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2021 and December 31, 2020

—

—

Common stock, par value $0.001 per share, 100,000,000 shares authorized, 21,384,925 and 19,453,821 shares issued and 21,217,460 and 19,286,356 shares outstanding as of December 31, 2021 and December 31, 2020, respectively

22

19

Paid-in capital in excess of par

301,359

271,287

Distributable earnings

(56,046)

(58,709)

Total net assets

245,335

212,597

Total liabilities and net assets

$       513,960

$    407,157

Net asset value per common share

$           11.56

$        11.02






Horizon Technology Finance Corporation and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except share and per share data)


For the Three Months Ended

For the Year Ended

December 31,

December 31,

2021

2020

2021

2020

Investment income







Interest income on investments







Interest income on non-affiliate investments

$        15,194

$          9,217

$         54,159

$        41,503

Interest income on affiliate investments

39

157

252

689

Total interest income on investments

15,233

9,374

54,411

42,192

Fee income







Prepayment fee income on non-affiliate investments

1,651

434

4,111

2,345

Fee income on non-affiliate investments

61

223

1,481

1,335

Fee income on affiliate investments

—

35

12

45

Total fee income

1,712

692

5,604

3,725

Dividend income







Dividend income on controlled affiliate investments

—

—

—

118

Total dividend income

—

—

—

118

Total investment income

16,945

10,066

60,015

46,035

Expenses







Interest expense

3,253

2,342

12,034

9,673

Base management fee

2,022

1,593

7,617

6,458

Performance based incentive fee

2,015

975

7,055

5,187

Administrative fee

456

276

1,285

1,016

Professional fees

544

445

1,892

1,540

General and administrative

369

312

1,511

1,190

Total expenses

8,659

5,943

31,394

25,064

Net investment income before excise tax

8,286

4,123

28,621

20,971

Provision for excise tax

227

222

401

222

Net investment income

8,059

3,901

28,220

20,749









Net realized and unrealized loss on investments







Net realized loss on non-affiliate investments

(486)

(18,644)

(2,858)

(14,686)

Net realized loss on non-controlled affiliate investments

(390)

—

(390)

—

Net realized loss on controlled affiliate investments

—

—

—

(12)

Net realized loss on investments

(876)

(18,644)

(3,248)

(14,698)

Net realized loss on extinguishment of debt

—

—

(395)

—

Net realized loss

(876)

(18,644)

(3,643)

(14,698)

Net unrealized (depreciation) appreciation on non-affiliate investments

(4,811)

17,020

5,503

1,585

Net unrealized appreciation (depreciation) on non-controlled affiliate investments

1,019

120

(848)

(1,014)









Net unrealized depreciation on controlled affiliate investments

(1,125)

—

(1,450)

(258)

Net unrealized (depreciation) appreciation on investments

(4,917)

17,140

3,205

313

Net realized and unrealized loss

(5,793)

(1,504)

(438)

(14,385)









Net increase in net assets resulting from operations

$            2,266

$            2,397

$         27,782

$          6,364

Net investment income per common share

$              0.39

$              0.21

$             1.41

$            1.18

Net increase in net assets per common share

$              0.11

$              0.13

$             1.39

$            0.36

Distributions declared per share

$              0.35

$              0.30

$             1.25

$            1.25

Weighted average shares outstanding

20,622,770

18,794,836

20,027,420

17,534,528

SOURCE Horizon Technology Finance Corporation

Posted on

That’s What Analysts Think First Commonwealth Financial Corporation (NYSE:FCF) Is Worth After These Results

As you may well know, First Commonwealth Money Company (NYSE:FCF) a short while ago reported its total-yr quantities. Very first Commonwealth Economical claimed US$386m in income, about in line with analyst forecasts, while statutory earnings per share (EPS) of US$1.44 defeat anticipations, being 2.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} greater than what the analysts envisioned. The analysts commonly update their forecasts at each and every earnings report, and we can decide from their estimates whether their check out of the corporation has adjusted or if there are any new considerations to be conscious of. We have gathered the most recent statutory forecasts to see whether the analysts have changed their earnings types, subsequent these effects.

See our most current examination for Very first Commonwealth Economical

earnings-and-revenue-growth

earnings-and-revenue-development

Getting into account the latest outcomes, Initial Commonwealth Financial’s six analysts at this time count on revenues in 2022 to be US$390.2m, approximately in line with the very last 12 months. Statutory earnings per share are envisioned to sink 13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to US$1.28 in the exact interval. In the direct-up to this report, the analysts had been modelling revenues of US$391.2m and earnings per share (EPS) of US$1.27 in 2022. The consensus analysts will not appear to have found everything in these effects that would have improved their watch on the organization, presented you can find been no important improve to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it can be surprising to see that the rate concentrate on rose 7.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to US$18.50. It appears as though they beforehand had some doubts over regardless of whether the organization would reside up to their anticipations. That is not the only conclusion we can draw from this information nevertheless, as some investors also like to think about the spread in estimates when assessing analyst price targets. The most optimistic Very first Commonwealth Monetary analyst has a price goal of US$20.00 for every share, while the most pessimistic values it at US$15.00. The narrow unfold of estimates could suggest that the business’ long run is somewhat effortless to benefit, or thatthe analysts have a powerful see on its prospects.

Using a search at the bigger photograph now, one particular of the methods we can comprehend these forecasts is to see how they examine to each earlier overall performance and industry expansion estimates. We would emphasize that Initial Commonwealth Financial’s profits expansion is anticipated to slow, with the forecast 1.{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annualised development level until the close of 2022 currently being properly below the historic 5.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} p.a. expansion about the last five many years. Evaluate this towards other businesses (with analyst forecasts) in the industry, which are in aggregate expected to see income expansion of 4.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} per year. Factoring in the forecast slowdown in growth, it appears apparent that 1st Commonwealth Fiscal is also envisioned to grow slower than other business members.

The Base Line

The most obvious summary is that there is been no important change in the business’ prospective customers in recent times, with the analysts keeping their earnings forecasts constant, in line with prior estimates. Fortuitously, the analysts also reconfirmed their profits estimates, suggesting gross sales are tracking in line with expectations – though our details does suggest that First Commonwealth Financial’s revenues are anticipated to accomplish worse than the wider market. We note an upgrade to the selling price focus on, suggesting that the analysts believes the intrinsic value of the small business is likely to make improvements to more than time.

With that claimed, the extensive-expression trajectory of the company’s earnings is a lot more essential than future year. We have forecasts for Initially Commonwealth Fiscal going out to 2023, and you can see them free of charge on our system here.

We do not want to rain on the parade far too considerably, but we did also discover 1 warning indicator for Initial Commonwealth Economical that you have to have to be conscious of.

Have opinions on this posting? Worried about the content material? Get in contact with us directly. Alternatively, e mail editorial-team (at) simplywallst.com.

This article by Merely Wall St is basic in mother nature. We give commentary centered on historical facts and analyst forecasts only applying an unbiased methodology and our content articles are not intended to be monetary tips. It does not represent a suggestion to get or promote any stock, and does not just take account of your aims, or your monetary predicament. We intention to provide you extensive-time period focused investigation driven by basic knowledge. Be aware that our assessment may well not variable in the newest rate-sensitive organization announcements or qualitative material. Only Wall St has no situation in any stocks described.