VIVXF - Avivagen Inc. (VIVXF)(VIV:CA) - Reports First Quarter 2022 Results
1Q22 Results. Avivagen reported revenue of $271,157 (all figures in Canadian $) in the quarter, up from $261,987 last year, and compared to our $300,000 estimate. Net loss for the quarter was $1.6 million, or $0.03 per share versus a net loss of $1.3 million, or $0.03 per share, in the first quarter of 2021. We had forecasted a net loss of $1.4 million, or $0.03 per share. Increased operating expenses due to impairment expenses were the main driver in the increased loss.Market Still Challenging. While sales in the Philippines continue apace, Mexico remains frozen. In fact, quarterly revenues were reduced by $89,658 due to returned product from Mexico. Average price per kg of OxC-Beta remained flat at $106.33. While Avivagen has made strides in receiving approvals in other nations, the Company needs to translate approvals into steady, and increasing, sales in more markets than the Philippines.Debenture Offering Completed. Avivagen closed its previously announced private placement financing of secured debentures for gross proceeds of $5.678 million. Approximately $5.46 million of the proceeds were used to repay existing debentures issued by Avivagen in March and April 2019. The debt exchange removes the largest near-term obligation for Avivagen.Updated Projections. We are maintaining our previous projections in the hopes the market begins to turn during the second half of fiscal 2022. For the fiscal second quarter we are projecting revenue of $400,000 and a net loss of $1.4 million, or $0.02 per share. For the full year, we are at revenue of $2.42 million and a loss of $5.34 million or $0.09 per share.Maintaining Outperform. We are maintaining our Outperform rating and US$1.00 12-month price target. Avivagen is an early-stage revenue company focused on developing and commercializing products for livestock, companion animals, and humans. We believe the Company is at an inflection point with significant sales increases just around the corner and presents a favorable risk/reward proposition. Read More >>