SAN JOSE, Calif., September 25, 2020 -- Nubeva Technologies Ltd. ("Nubeva" or the "Company") (TSX-V: NBVA), today published its unaudited consolidated financial statements for the first quarter ended July 31, 2020. Financial statements along with management discussion and analysis of financial results can be found at www.sedar.com. All dollar amounts in this release are quoted in U.S. Dollars.
During the quarter the Company entered into a license agreement for its Symmetric Key Intercept (“SKI”) software and received an initial payment of $1,000,000 which is recorded as deferred revenue. Recognition of revenue on this contract is anticipated to commence in the second quarter of 2021. The Company reported subscription revenue for three months of $39,613, which was consistent with revenue of the same quarter of the previous year.
Expenses for the period ended July 31, 2020, decreased by 13% over the prior year period largely due to a 27% decrease in sales and marketing costs and a decrease in share-based compensation. During the quarter ended July 31, 2020, the Company reported other income of $240,086, mainly due to forgiveness of a government loan.
Selected operating data follows:
Income Statement Data
Three months ended July 31, 2020
Three months ended July 31, 2019
Fair value gain on digital currencies
Forgiveness of government loan
Other income (loss)
Net loss for the period
Other comprehensive gain
Foreign currency translation adjustment
Net and comprehensive loss
Loss per share – basic and diluted
Weighted average number of common shares
The Company’s financial position as at July 31, 2020 compared with the Company’s financial position as at April 30, 2020 is as follows:
Balance Sheet Data
July 31, 2020
April 30, 2020
Current and total assets
Assets as at July 31, 2020 increased by $324,909 over assets as April 30, 2020 due mainly to an increase in cash and marketable securities of $275,062. The Company reported a net increase in cash during the quarter as cash received from its licensing agreement exceeded cash used for operations. Current liabilities increased by $808,637 from current liabilities at April 30, 2020. The increase is due to the $1 million increase in deferred revenue, offset by a decrease in the current government loans due to the loan forgiveness realized in the quarter.
About Nubeva Technologies Ltd.
Nubeva Technologies Ltd. has changed the decrypted visibility game with pure, symmetric decryption. Nubeva helps enterprises gain the visibility needed through decryption so they can fully inspect network traffic. The need to inspect data in motion is fundamental to network security and application monitoring and assurance. The shift to SaaS, the cloud, and stronger encryption practices like perfect forward secrecy and TLS 1.3, create new and unique challenges for in-line and out-of-band decryption and visibility solutions. Nubeva re-imagined TLS visibility and created a new solution for the modern era of strong encryption in dynamic and distributed compute environments. Visit nubeva.com for more information.
Forward Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the Company's business plans and the outlook of the cybersecurity industry. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by applicable securities laws. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its subsidiaries, their securities, or their respective financial or operating results (as applicable).
Neither the 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.