STAGEZERO LIFE SCIENCES LTD (NASDAQ:SZLSF) StageZero Life Sciences, Ltd Announces Q3 2022 Financial Results and Operational Update

Directive transparence : information réglementée

15/11/2022 13:50

TORONTO, ON / ACCESSWIRE / November 15 2022 / StageZero Life Sciences ("StageZero" or the "Company") (TSX:SZLS)(OTCQB:SZLSF), a vertically-integrated healthcare company devoted to improving the early detection and management of cancer and other chronic diseases through leading-edge molecular diagnostics and clinical interventions, today announced its third quarter financial results for the three months and nine months ended September 30, 2022, and provided an update on its business progress.

Operational Updates and Recent Highlights

During Q3 2022 we:

  • Continued the transition from COVID to cancer testing, diagnosis and treatment, with COVID contributing marginal revenue during the Quarter.
  • Focused strongly on large employers, insurers and re-insurers, and clinics and healthcare systems with respect to early cancer screening, leveraging our previous COVID contacts.
  • Initiated early cancer screening programs with large employers and are reporting results, with follow up.
  • Are collaborating with the Health and Safety Committees of multiple Fire Fighter stations, across many jurisdictions in Ontario, to incorporate multi-year cancer screening programs in their budgets. Testing begins with budget approval. (there are 11,000 full time and 19,000 volunteer Fire Fighters in Ontario).
  • Individual, independent, Fire Fighter screening has commenced.
  • Initiated discussions with Fire Fighters in other Provinces in Canada and multiple States in the US.
  • Expanding CareOncology programs to clinic and healthcare groups for referral. Data publication a key endpoint.
  • Expansion into the 750 million population EU a key focus

In the first nine months of 2022 we:

  • Raised CAD 2.05M in a private placements
  • Integrated CareOncology into StageZero and started scaling
  • Launched AVRT in the UK
  • Extended the availability of the COC Protocol into the European Union
  • Launched COC Plus Program Worldwide
  • CareOncology UK approaches breakeven
  • Pared back operating costs as we optimized the programs post-acquisition
  • Expanded marketing programs and new lab partners for Aristotle into multiple new cities in the US
  • Engaged with employers with Aristotle + AVRT cancer screening program
  • Deepened the Aristotle test offering with the addition of ColoRectal Cancer by stage ie early vs late
  • Participated in several conferences eg HC Wainwright, keynote speaker at S.E.E. Summit
  • Successfully submitted proposal offerings to multiple first responder organizations and began testing first responders

Continuing through the next twelve months, the Company's focus will be to:

  • Drive revenue growth by significantly increasing spend against promotion.
  • Position Aristotle + AVRT as the #1 program for early cancer detection for employers with at-risk workforces. A Case Study in Breast Cancer, alone, shows a greater than 50% cost reduction for self funded plans.
  • Fully implement current partnerships with key employer groups using Aristotle + AVRT.
  • Present data and analysis with respect to at-risk workforces to demonstrate benefit of Aristotle + AVRT
  • Broaden relationships with key oncologists and clinics to enhance the reach of CareOncology/Aristotle with a strong focus on HealthCare Systems in multiple key cities.
  • Continue to broaden and deepen Aristotle eg CRC. lung and breast cancer staging.
  • Partner and launch in key geographic regions world-wide.

"Q3 has been positive for us with incremental growth in revenue month over month" said James Howard-Tripp, Chairman and CEO of StageZero. "Reported revenue is not yet fully reflective of Aristotle tests being done as we have a significant delay between tests being performed, and invoicing and collection. This will even out over the next few Quarters. Additionally, some initial testing has been steeply discounted in order to pilot the program".

"With 64% of employees [100 million employees] covered under employer self-funded healthcare plans, and our ability to drive significant cost reductions through our novel screening and intervention programs, we are getting the interest from large employers and insurers we expected" he added.

Q3 2022 Financial Results

All amounts are expressed in U.S. dollars unless otherwise stated and results are reported in accordance with International Financial Reporting Standards.

The Company generated $0.8 million in revenue for the three months ended September 30, 2022 as compared to $0.7 million in revenue for the three months ended September 30, 2021 and realized a net loss of $0.05 million, or $0.00 basic and diluted loss per common share as compared to a $2.2 million net loss (affected by the revaluation of warrant liability) for the three months ended September 30, 2021, or $0.02 basic and diluted income per common share. Adjusted EBITDA for the three months ended September 30, 2022 totaled ($1.4 million).

The Company generated $3.1 million in revenue for the nine months ended September 30, 2022 as compared to $3.6 million in revenue for the nine months ended September 30, 2021and realized a net loss of $1.9 million, or $0.02 basic and diluted loss per common share as compared to a $5.2 million net loss for the nine months ended September 30, 2021, or $0.06 basic and diluted loss per common share. Adjusted EBITDA for the nine months ended September 30, 2022 totaled ($6.0 million).

EBITDA and Adjusted EBITDA

Earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") are not recognized performance measures under IFRS. EBITDA and Adjusted EBITDA do not have standardized meanings under IFRS and therefore may not be comparable to similar measures presented by other issuers. The term EBITDA consists of net income (loss) and excludes interest, finance costs, taxes, depreciation and amortization. Adjusted EBITDA also excludes share-based compensation, impairment of assets, revaluation of warrants, changes in fair value of conversion debenture and public entity costs. EBITDA and Adjusted EBITDA are included as supplemental disclosures because Management believes that these disclosures provide a better assessment of the Company's continuing operations by eliminating non-cash costs and costs or gains that are not recurring.

The Company's financial statements and management's discussion and analysis are available on www.sedar.com.

Analyst and Investor Call

Event Date: Tuesday November 15, 2022
Time: 8:30 a.m. EST
Webcast Link: https://www.webcaster4.com/Webcast/Page/2082/47124

Participant Numbers:

Toll Free: 844-369-8770
International: 862-298-0840

Replay Number:

Toll Free: 877-481-4010

International: 919-882-2331
Replay Passcode: 47124

About StageZero Life Sciences, Ltd.

StageZero Life Sciences, Ltd. is a vertically integrated healthcare company dedicated to improving the early detection and management of cancer and other chronic diseases through next-generation diagnostics and unique telehealth programs that provide clinical interventions to assist patients who currently have cancer (COC Protocol) as well as help patients reduce the risk of developing late-stage disease (AVRT™).

The Company's next generation test, Aristotle®, is the first ever mRNA multi-cancer panel for simultaneously screening for multiple cancers from a single sample of blood with high sensitivity and specificity for each cancer. Aristotle® uses mRNA technology to identify the molecular signatures of multiple cancer types and is built on the Company's patented technology platform, the Sentinel Principle. This underlying technology has been validated in more than 9,000 patients and used by more than 100,000 patients in North America.

The Care Oncology Clinic offers a supervised treatment regimen (the COC Protocol) for people diagnosed with cancer of any type or stage. Developed by scientists and oncologists, the COC Protocol is intended for adjunctive administration alongside standard-of-care cancer therapy. It is an individualized therapeutic approach which seeks to simultaneously target multiple metabolic cancer pathways. The aim is to restrict cancer cell energy supply and use, which may make it more difficult overall for cancer cells to survive, grow and adapt to changing conditions in the body. As a result, such cells can potentially become more vulnerable to attack from cell-killing therapies such as radiotherapy and chemotherapy. Its patented COC Protocol incorporates a multifaceted approach, supported by peer-reviewed scientific studies, which highlight the potential of certain treatments to target the specific energy requirements of cancer cells, impacting their ability to grow and multiply.

AVRT is a Physician-Led, telehealth program for identifying and managing the early warning signs of cancer and chronic disease. Our program includes: a comprehensive online health evaluation; blood tests to measure markers of inflammation and metabolism; an in-depth initial physician consultation; regular physician follow-up appointments and interval screening.

Aristotle®, as well as additional cancer diagnostics (ColonSentry®, BreastSentry™, and the Prostate Health Index) are processed at the Company's clinical laboratory, StageZero Life Sciences, Inc., a CAP accredited and CLIA certified high-complexity reference laboratory in Richmond, Virginia. In addition, the Company is also leveraging its specialty in polymerase chain reaction (PCR) testing to provide COVID-19 PCR testing (swab and saliva) and Antibody Testing (blood analysis).

StageZero Life Sciences trades on the Toronto Stock exchange under the symbol SZLS and on the OTCQB under the symbol SZLSF.

Forward-Looking Statements

This press release contains forward-looking statements identified by words such as "expects", "will" and similar expressions, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties that could cause the Company's actual events to differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements, except as required by law.

For further information please contact:

Investor Relations

Rebecca Greco
1-855-420-7140 ext. 1838

SOURCE: StageZero Life Sciences Ltd.

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