– 2022 marks Ceapro’s best performance in Company history with record sales of $18,800,000 compared to $17,200,000 for 2021, representing a 10% increase year over year
– Net profit after tax of $4,400,000 for the full year of 2022 compared to $3,400,000 in 2021, a year over year increase of 31%
– R&D activities focused on advancement toward avenanthramide Phase 1-2a clinical study, development of innovative delivery systems with new chemical complexes and processing yeast beta glucan for development as an immune booster and potential inhalable therapeutic for lung fibrotic diseases
– Continued execution on strategic plans position Ceapro for a transformational year in 2023
EDMONTON, Alberta, April 12, 2023 (GLOBE NEWSWIRE) — Ceapro Inc. (TSX-V: CZO, OTCQX: CRPOF) (“Ceapro” or the “Company”), a growth-stage biotechnology company focused on the development and commercialization of active ingredients for healthcare and cosmetic industries, today announced operational highlights and financial results for the fourth quarter and full year ended December 31, 2022.
“We are very proud of the achievements made in 2022 across all fronts during a year marked by such uncertainties, and economic and operational challenges. We kicked off the year with the signing of a three-year renewable Supply and Distribution Agreement with leading global active ingredients provider, Symrise, which served as a major catalyst to our best ever financial performance year in the Company’s history. Our strong performance and execution, despite the challenges, was made possible by the hard work from our talented and dedicated team, our constant focus on financial discipline and value creation and the strong relationships we have built with our customers and partners. We are pleased to have reached several key milestones in 2022 that will help propel Ceapro into its next phase of growth as a biopharmaceutical company and believe we are well-positioned to continue building on that momentum,” stated Gilles Gagnon, M.Sc., MBA, President and CEO of Ceapro.
2022 Corporate and Operational Highlights
Pipeline Development
Avenanthramides:
Clinical Trial
Formulation
(Avenanthramides) Malted Technology
Alginate:
Yeast Beta Glucan (YBG)
Technology:
Bioprocessing Operations
Corporate
Subsequent to Year End
Financial Highlights for the Fourth Quarter and Full Year 2022 Ended December 31, 2022
Comparative numbers shown for the year 2021 result from a restatement of the financial statements for the year 2021. The Company made this decision to restate the 2021 financial results in order to ensure that the valuation of inventory incorporates the costs of conversion more appropriately through the different stages of production for the multiple products produced at the new Edmonton facility. As detailed in note 3 of the financial statements, the impact of this restatement did not change the calculated and reported $0.04 earnings per share in 2021.
“With a record financial performance in 2022 yielding a strong balance sheet and further contributing to the building of a very solid foundation for Ceapro’s cosmeceuticals base business, the Company expects to continue to leverage on this base business to accelerate the development of new products and technologies like the planned Phase 1-2a clinical trial with avenanthramides, the scale-up of the PGX Technology for the development of YBG as an immune modulator and the commercial scale-up of a malting technology to enable the production and selling of enriched oat flour with high concentration of avenanthramides to serve some nutraceutical market segments. We expect to complete these projects using cash in hand and expected cash generated from operations throughout 2023 which we believe positions us for a pivotal year of proactive transformation of Ceapro to a biopharmaceutical company,” concluded Mr. Gagnon.
CEAPRO INC. | |||
Consolidated Balance Sheets | |||
December 31, | December 31, | ||
2022 | 2021 | ||
Restated | |||
(note 3) | |||
$ | $ | ||
ASSETS | |||
Current Assets | |||
Cash and cash equivalents | 13,810,998 | 7,780,989 | |
Trade receivables | 2,820,300 | 2,092,842 | |
Other receivables | 64,808 | 45,850 | |
Inventories (note 4) | 3,757,040 | 2,324,085 | |
Prepaid expenses and deposits | 135,133 | 162,919 | |
Total Current Assets | 20,588,279 | 12,406,685 | |
Non-Current Assets | |||
Investment tax credits receivable | 854,895 | 766,629 | |
Deposits | 76,954 | 79,539 | |
Licences (note 5) | 12,588 | 15,551 | |
Property and equipment (note 6) | 16,201,755 | 17,499,774 | |
Deferred tax assets (note 13 (b)) | – | 282,849 | |
Total Non-Current Assets | 17,146,192 | 18,644,342 | |
TOTAL ASSETS | 37,734,471 | 31,051,027 | |
LIABILITIES AND EQUITY | |||
Current Liabilities | |||
Accounts payable and accrued liabilities | 1,730,377 | 682,057 | |
Current portion of lease liabilities (note 7) | 370,460 | 290,055 | |
Total Current Liabilities | 2,100,837 | 972,112 | |
Non-Current Liabilities | |||
Long-term lease liabilities (note 7) | 2,248,577 | 2,358,862 | |
Deferred tax liabilities (note 13 (b)) | 1,095,968 | – | |
Total Non-Current Liabilities | 3,344,545 | 2,358,862 | |
TOTAL LIABILITIES | 5,445,382 | 3,330,974 | |
Equity | |||
Share capital (note 8 (b)) | 16,694,625 | 16,557,401 | |
Contributed surplus (note 8 (e)) | 4,714,404 | 4,680,690 | |
Retained earnings | 10,880,060 | 6,481,962 | |
Total Equity | 32,289,089 | 27,720,053 | |
TOTAL LIABILITIES AND EQUITY | 37,734,471 | 31,051,027 | |
CEAPRO INC. | ||||
Consolidated Statements of Net Income and Comprehensive Income | ||||
2022 | 2021 | |||
Restated | ||||
(note 3) | ||||
Years Ended December 31, | $ | $ | ||
Revenue (note 15) | 18,839,607 | 17,195,329 | ||
Cost of goods sold | 7,821,908 | 6,727,699 | ||
Gross margin | 11,017,699 | 10,467,630 | ||
Research and product development | 1,788,666 | 3,878,247 | ||
General and administration | 3,700,498 | 3,239,672 | ||
Sales and marketing | 29,558 | 47,119 | ||
Finance costs (note 10) | 184,967 | 206,891 | ||
Income from operations | 5,314,010 | 3,095,701 | ||
Other income (note 11) | (462,905 | ) | (202,281 | ) |
Income before tax | 5,776,915 | 3,297,982 | ||
Income taxes | ||||
Current tax expense (note 13(a)) | – | 215,376 | ||
Deferred tax expense (benefit) (note 13 (a)) | 1,378,817 | (282,849 | ) | |
Income tax expense (benefit) | 1,378,817 | (67,473 | ) | |
Total net income and comprehensive income for the year | 4,398,098 | 3,365,455 | ||
Net income per common share (note 20): | ||||
Basic | 0.06 | 0.04 | ||
Diluted | 0.06 | 0.04 | ||
Weighted average number of common shares outstanding (note 20): | ||||
Basic | 77,961,714 | 77,673,804 | ||
Diluted | 78,582,083 | 78,590,706 | ||
CEAPRO INC. | ||||
Consolidated Statements of Cash Flows | ||||
2022 | 2021 | |||
Restated | ||||
(note 3) | ||||
Years Ended December 31, | $ | $ | ||
OPERATING ACTIVITIES | ||||
Net income for the year | 4,398,098 | 3,365,455 | ||
Adjustments for items not involving cash | ||||
Finance costs | 129,967 | 140,270 | ||
Depreciation and amortization | 1,911,278 | 1,880,748 | ||
Gain on disposal of equipment | – | (5,000 | ) | |
Accretion | – | 11,621 | ||
Deferred income tax expense (benefit) | 1,378,817 | (282,849 | ) | |
Share-based payments | 89,648 | 17,906 | ||
7,907,808 | 5,128,151 | |||
CHANGES IN NON-CASH WORKING CAPITAL ITEMS | ||||
Trade receivables | (727,458 | ) | (73,119 | ) |
Other receivables | (18,958 | ) | 56,374 | |
Investment tax credits receivable | (88,266 | ) | (158,929 | ) |
Inventories | (1,432,955 | ) | (1,114,006 | ) |
Prepaid expenses and deposits | 30,371 | 111,044 | ||
Accounts payable and accrued liabilities relating to operating activities | 1,096,074 | (298,765 | ) | |
(1,141,192 | ) | (1,477,401 | ) | |
Net income for the year adjusted for non-cash and working capital items | 6,766,616 | 3,650,750 | ||
Interest paid | (129,967 | ) | (140,270 | ) |
CASH GENERATED FROM OPERATIONS | 6,636,649 | 3,510,480 | ||
INVESTING ACTIVITIES | ||||
Purchase of property and equipment | (341,067 | ) | (708,903 | ) |
Proceeds from sale of equipment | – | 5,000 | ||
Accounts payable and accrued liabilities relating to investing activities | (47,754 | ) | (86,800 | ) |
CASH USED IN INVESTING ACTIVITIES | (388,821 | ) | (790,703 | ) |
FINANCING ACTIVITIES | ||||
Stock options exercised | 81,290 | 26,725 | ||
Repayment of CAAP loan | – | (83,884 | ) | |
Repayment of lease liabilities | (299,109 | ) | (250,658 | ) |
CASH USED IN FINANCING ACTIVITIES | (217,819 | ) | (307,817 | ) |
Increase in cash and cash equivalents | 6,030,009 | 2,411,960 | ||
Cash and cash equivalents at beginning of the year | 7,780,989 | 5,369,029 | ||
Cash and cash equivalents at end of the year | 13,810,998 | 7,780,989 |
The complete financial statements are available for review on SEDAR at https://sedar.com/Ceapro and on the Company’s website at www.ceapro.com.
About Ceapro Inc.
Ceapro Inc. is a Canadian biotechnology company involved in the development of proprietary extraction technology and the application of this technology to the production of extracts and “active ingredients” from oats and other renewable plant resources. Ceapro adds further value to its extracts by supporting their use in cosmeceutical, nutraceutical, and therapeutics products for humans and animals. The Company has a broad range of expertise in natural product chemistry, microbiology, biochemistry, immunology and process engineering. These skills merge in the fields of active ingredients, biopharmaceuticals and drug-delivery solutions. For more information on Ceapro, please visit the Company’s website at www.ceapro.com.
For more information contact:
Jenene Thomas
JTC Team, LLC
Investor Relations and Corporate Communications Advisor
T (US): +1 (833) 475-8247
E: czo@jtcir.com
Issuer:
Gilles R. Gagnon, M.Sc., MBA
President & CEO
T: 780-421-4555
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
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