TORONTO, March 14,
2024 /CNW/ - HLS Therapeutics Inc. ("HLS" or the
"Company") (TSX: HLS), a pharmaceutical company focused on
addressing unmet needs in the treatment of psychiatric disorders
and cardiovascular disease, announces its financial results for the
three- and twelve-month periods ended December 31, 2023. All amounts are in thousands
of United States ("U.S.") dollars
unless otherwise stated.
KEY HIGHLIGHTS
- Fiscal 2023 revenue was $63.1
million, Adjusted EBITDA1 was $21.1 million and cash from operations was
$15.8 million, compared to
$61.5 million, $23.8 million and $16.9
million, respectively, in 2022.
- Q4 2023 revenue was $15.9
million, Adjusted EBITDA was $5.3
million and cash from operations was $3.7 million, compared to $15.7 million, $5.3
million and $3.5 million,
respectively, in Q4 2022.
- Q4 2023 and fiscal 2023 product sales in Canada increased 11% and 10%, respectively, in
Canadian dollars, compared to the same periods in 2022.
- Introduced the updated Pfizer partnering model in primary care
on January 1, 2024.
- Completed a Product Listing Agreement ("PLA") on February 6, 2024, with the province of
British Columbia ("BC"), for the
listing and public reimbursement of Vascepa.
"2023 was a year of transition for HLS with leadership changes
and an increased focus on operational execution that has us
entering 2024 well-positioned for our next phase of growth," said
Craig Millian, CEO of HLS. "With
Vascepa, we made important changes to our commercial strategy that
included updating our primary care go-to-market model with Pfizer
along with renewed efforts to improve access and reimbursement,
primarily in BC and Ontario. In
2024, we have already seen positive developments in each of these
areas, which we believe will help us generate accelerated growth
and a transition to profitability for Vascepa later this year."
"Clozaril continued to be a consistent performer and generator
of cash flow in 2023. The number of patients on Clozaril in
Canada grew by 1% for the year
reflecting the underlying stability of Clozaril in the market.
Along with maintaining strong margins, we think there are
opportunities to drive modest growth for the product, and this will
also be a focus of ours in 2024."
Q4 & FISCAL 2023 OTHER HIGHLIGHTS
- Craig Millian appointed Chief Executive Officer,
Brian T. Walsh appointed Senior Vice
President, Commercial and John Hanna
appointed Interim Chief Financial Officer.
- Reduced the size of the Board of Directors from ten to eight
members; John Welborn appointed Chair.
- Vascepa total prescriptions in fiscal 2023 increased by 86%
from 2022.
- Q4 2023 Vascepa net revenue was C$5.1 million, up 42% compared to C$3.6 million in Q4 2022.
- The number of patients on Clozaril in Canada increased by more than 1% in 2023,
compared to 2022.
- Clozaril sales in Canada in Q4
2023 were essentially flat compared to Q4 2022.
Mr. Millian added: "Vascepa revenue for 2023 was C$17.8 million, just below the low-end of our
revenue target range of C$18-20
million, but still up significantly over 2022. The uptake in public
plans continued to outpace private plan growth in Q4, which was a
common theme through much of 2023. While helping to build our
growing base of patients and prescribers, this rapid increase in
public claims impacted our gross-to-net and therefore impacted net
revenue for the quarter and year. On a positive note, this uptick
was due in part to a clearing of the backlog in the Ontario public plan, where turnaround times
have improved considerably."
"Going forward, we will also provide our outlook for Vascepa in
U.S. dollars in order to simplify our guidance presentation as we
are now providing a consolidated outlook for the company as well as
an outlook by product."
2024 OUTLOOK
HLS is targeting 2024 consolidated revenue of $63.5-66.5 million, or 1-5% growth. This consists
of revenue from its marketed products (Vascepa and Clozaril) of
$60.5-62.5 million, or 15-19% growth,
and revenue from its royalty portfolio of $3-4 million, a 60-70% decline. Top-line growth
from the Company's marketed products is therefore expected to more
than offset the decline in royalty revenue.
Vascepa revenue is expected to be in a range of $20.5-22.5 million (C$27.5-30 million), an increase of 55-70% over
2023, while Clozaril is expected to generate revenue of
approximately $40 million, an
increase of 1–2% over 2023. The Company also expects Vascepa to
make a positive contribution to Adjusted EBITDA, starting in the
fourth quarter of this year.
HLS is targeting 2024 consolidated Adjusted EBITDA that is flat
compared to 2023 as product-related Adjusted EBITDA growth is
projected to fully offset the significant decline in royalties. The
Company will pursue this goal through a combination of top-line
growth and cost management. HLS expects non-royalty related
Adjusted EBITDA driven by its marketed products to increase by
approximately 60% over 2023. The royalty portfolio is expected to
contribute just $3-4 million to
Adjusted EBITDA in 2024 compared to more than $10 million in 2023.
Mr. Millian added: "Our go-forward optimism for Vascepa is based
on recent positive operational and reimbursement catalysts combined
with the ongoing strong prescription growth we experienced
throughout 2023. We are excited about the projected growth in our
promoted products along with their significantly increased
contribution to Adjusted EBITDA in 2024. Looking ahead to 2025 and
beyond, we expect consolidated revenue and Adjusted EBITDA growth
to improve considerably. This is driven by four key factors: (1) we
expect to exit 2024 with two profitable products (Vascepa and
Clozaril) and both are expected to be profitable for the entirety
of 2025; (2) we have scale in our sales and marketing model such
that operating margins for Vascepa will improve on a go-forward
basis as the top-line grows; (3) the royalty portfolio is expected
to grow again starting in 2025; and (4) improved operating
performance from our core portfolio and strengthening financials
could support bringing in additional synergistic assets down the
road."
CREDIT AGREEMENT
Subsequent to year end, the Company amended the terms of its
credit agreement to modify certain covenant ratios. This was done
to provide the Company with operating flexibility while revenue for
Vascepa continues to ramp up in fiscal 2024 and while quarterly
royalty revenues are expected to grow sequentially after Q1
2024.
Under the amended agreement, the Company's revolving facility
has been reduced to $25 million from
$30 million. Allowable restricted
payments, which include NCIB purchases, are expected to be capped
at approximately $2.5 million in
fiscal 2024, providing flexibility this year to go beyond the
$1.5 million returned to shareholders
in the form of share buybacks in 2023. Interest on borrowings under
the Amended Agreement accrues at a rate per month equal to the sum
of the SOFR plus a range of 2.75% to 4.75% depending on the
leverage ratio of the Company at the time. The Company's expansion
facility of up to $70 million to
support growth opportunities remains in place.
"These amendments provide HLS with added flexibility in the near
term during a transition period with the royalty portfolio in
2024," said John Hanna, Interim CFO
at HLS. "We continue to view the share buyback as an important and
attractive aspect of our capital allocation strategy."
Q4 & FISCAL 2023 FINANCIAL REVIEW
The Company's Management's Discussion and Analysis and
Consolidated Financial Statements for the three- and twelve-month
periods ended December 31, 2023, are
available at the Company's website and at its profile at
SEDAR+.
Revenue
|
Three months
ended
December
31,
|
Year
ended
December
31,
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
Product
sales
|
|
|
|
|
Canada
|
10,464
|
9,442
|
39,219
|
36,942
|
United States
|
3,835
|
3,991
|
13,515
|
14,742
|
|
14,299
|
13,433
|
52,734
|
51,684
|
Royalty
revenue
|
1,564
|
2,242
|
10,340
|
9,783
|
|
15,863
|
15,675
|
63,074
|
61,467
|
Q4 2023 and fiscal 2023 revenue increased 1% and 3%,
respectively, compared to the same periods in 2022. Q4 2023 and
fiscal 2023 revenue increased 1% and 5%, respectively, in constant
currency terms, compared to the same periods in 2022, as the
decline in the Canadian dollar had an impact on the reported
values, which are in U.S. dollars. Excluding royalties, revenue for
the Company's marketed products (Vascepa, and Clozaril) in Q4 2023
was $14.3 million, up 6% from Q4
2022, and for the year was $52.7
million, up 2% from 2022.
Product sales – Canada
000's of
CAD
|
Three months
ended
December
31,
|
Year
ended
December
31,
|
|
2023
|
2022
|
%
change
|
2023
|
2022
|
%
change
|
|
|
|
|
|
|
Clozaril
|
9,131
|
9,195
|
(0.7) %
|
35,160
|
35,776
|
(1.7) %
|
Vascepa
|
5,118
|
3,605
|
42.0 %
|
17,779
|
12,325
|
44.3 %
|
Other
|
11
|
6
|
|
27
|
6
|
|
|
14,260
|
12,806
|
11.4 %
|
52,966
|
48,107
|
10.1 %
|
Q4 2023 and fiscal 2023 product sales in Canada increased 11% and 10%, respectively, in
Canadian dollars, compared to the same periods in 2022. This was
led by growth in Canadian dollar sales of Vascepa, which increased
42% in Q4 2023 and 44% in fiscal 2023.
Q4 2023 and fiscal 2023 Clozaril revenue in Canada declined 1% and 2%, respectively,
compared to the same periods in 2022. Clozaril revenue in
Canada increased 2% sequentially
from Q3 2023. Clozaril remains the leading medication for treatment
resistant schizophrenia in Canada
and for fiscal 2023, the number of patients taking Clozaril
increased 1%.
Product Sales – United
States
In the U.S., Q4 2023 and fiscal 2023 Clozaril net sales declined
4% and 8%, respectively, compared to the same periods in 2022. Key
fundamentals remain in place as the year-over-year revenue declines
were due to the release of provisions for expired returns in 2022
of $0.6 million (Q4 2022) and
$1.3 million (fiscal 2022).
Clozaril revenue in the U.S. increased 17% sequentially from
Q3 2023.
Royalty revenues
Royalty revenues were $1.6 million
in Q4 2023, down 30% from Q4 2022, as the term for what was the
largest royalty in the portfolio came to an end midway through the
quarter. Royalty revenue was $10.3
million for fiscal 2023, up 6% from 2022. The fiscal 2023
increase was primarily due to a one-time milestone receipt of
$0.5 million included in Q2 2023
related to the approval of Xenpozyme.
Operating Expenses
|
Three months
ended
December
31,
|
Year
ended
December
31,
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
Cost of product
sales
|
2,533
|
1,517
|
7,624
|
4,981
|
Selling and
marketing
|
4,716
|
5,169
|
19,896
|
17,846
|
Medical, regulatory and
patient support
|
1,386
|
1,606
|
5,574
|
5,727
|
General and
administrative
|
1,888
|
2,046
|
8,928
|
9,086
|
|
10,523
|
10,338
|
42,022
|
37,640
|
Cost of product sales was up for the year due to higher sales
volumes of Vascepa. In addition, Q4 2023 included a provision of
$0.5 million against inventory.
Selling and marketing expenses were up for the year due to
increased promotional efforts related to Vascepa. However, selling
and marketing expenses were lower in Q4 2023 and medical,
regulatory and patient support expenses, as well as general and
administrative expenses, were lower for both the quarter and the
year due to the Company's ongoing cost management efforts.
Adjusted EBITDA1
|
Three months
ended
December
31,
|
Year
ended
December
31,
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
Net loss for the
period
|
(5,401)
|
(6,429)
|
(27,531)
|
(23,598)
|
Stock-based
compensation
|
(601)
|
752
|
(538)
|
2,922
|
Amortization and
depreciation
|
7,047
|
8,692
|
31,939
|
34,402
|
Finance and related
costs, net
|
2,109
|
2,188
|
11,237
|
5,040
|
Other costs
|
2,111
|
229
|
6,217
|
5,185
|
Income tax expense
(recovery)
|
75
|
(95)
|
(272)
|
(124)
|
Adjusted
EBITDA
|
5,340
|
5,337
|
21,052
|
23,827
|
Q4 2023 Adjusted EBITDA was $5.3
million, which was flat compared to Q4 2022. Fiscal 2023
Adjusted EBITDA was $21.1 million
compared to $23.8 million in 2022.
The decrease for the year was due primarily to the increase in
operating expenses for Vascepa and was partially offset by the
growth in sales of Vascepa. Clozaril and royalty revenues generated
strong Adjusted EBITDA and cash flow for the business in both Q4
2023 and fiscal 2023.
For fiscal 2023, the direct brand contribution from Clozaril to
Adjusted EBITDA was $29.7 million,
while the direct brand contribution from Vascepa to Adjusted EBITDA
was a loss of $9.2 million.
Net Loss
Net loss for Q4 2023 was ($5.4)
million, or ($0.17) per share,
compared to a net loss of ($6.4)
million, or ($0.20) per share,
in Q4 2022. Net loss for fiscal 2023 was ($27.5) million, or ($0.85) per share, compared to a net loss of
($23.6) million, or ($0.73) per share, in 2022. For fiscal 2023,
revenue growth was offset by the increase in cost of product sales
and selling and marketing expenses related to Vascepa, and higher
finance and related costs, due to higher interest expense, as well
as fair value adjustments for the contingent liability for a future
milestone payment and an interest rate swap that settled in the
year. Other costs in Q4 2023 included a non-cash charge of
$1.5 million related to ceasing
commercialization of Trinomia.
Cash from Operations and Financial Position
Cash generated from operations in Q4 2023 and fiscal 2023 was
$3.7 million and $15.8 million, respectively, compared to
$3.5 million and $16.9 million in the same periods last year. Cash
was $22.0 million at December 31, 2023, up from $20.7 million at December
31, 2022.
Total borrowings under the credit agreement at December 31, 2023, was $88.5 million compared to $97.3 million at December
31, 2022.
Q4 FISCAL 2023 CONFERENCE CALL
HLS will hold a conference call today at 8:30 am Eastern Time to discuss its Q4 and fiscal
2023 financial results. The call will be hosted by Mr. Craig Millian, CEO, and Mr. John Hanna, Interim CFO. To view the slides
that accompany management's discussion, please use the webcast
link.
CONFERENCE ID: 51683499
DATE: Thursday, March 14, 2024
TIME: 8:30 a.m. ET
WEBCAST
LINK: https://app.webinar.net/1lgp2aPDwy0
TRADITIONAL DIAL-IN NUMBER: 1-888-664-6392 or
416-764-8659
RAPIDCONNECT: To instantly join the conference call
by phone, please use the following URL to easily register and be
connected into the conference call automatically:
https://emportal.ink/3vCiu23
TAPED REPLAY: 1-888-390-0541 or 416-764-8677
REPLAY CODE: 683499#
The taped replay will be available for 14 days and the archived
webcast will be available for 365 days.
A link to the live audio webcast of the conference call will
also be available on the events page of the investors section of
HLS Therapeutics' website at www.hlstherapeutics.com. Please
connect at least 15 minutes before the conference call to ensure
enough time for any software download required to hear the
webcast.
ABOUT HLS THERAPEUTICS INC.
Formed in 2015, HLS is a pharmaceutical company focused on the
acquisition and commercialization of late-stage development,
commercial stage promoted and established branded pharmaceutical
products in the North American markets. HLS's focus is on products
targeting the central nervous system and cardiovascular therapeutic
areas. HLS's management team is composed of seasoned pharmaceutical
executives with a strong track record of success in these
therapeutic areas and at managing products in each of these
lifecycle stages. For more information visit:
www.hlstherapeutics.com
1CAUTIONARY NOTE REGARDING NON-IFRS
MEASURES
This press release refers to certain non-IFRS measures. These
measures are not recognized measures under IFRS, do not have a
standardized meaning prescribed by IFRS and are therefore unlikely
to be comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of HLS's results of operations from management's perspective.
Accordingly, they should not be considered in isolation nor as a
substitute for analysis of HLS's financial information reported
under IFRS. HLS uses non-IFRS measures to provide investors with
supplemental measures of its operating performance and thus
highlight trends in its core business that may not otherwise be
apparent when relying solely on IFRS financial measures. HLS also
believes that securities analysts, investors and other interested
parties frequently use non-IFRS measures in the evaluation of
issuers. HLS's management also uses non-IFRS measures in order to
facilitate operating performance comparisons from period to period,
prepare annual operating budgets and assess HLS's ability to meet
its future debt service, capital expenditure and working capital
requirements.
In particular, management uses Adjusted EBITDA as a measure
of HLS's performance. To reconcile net income (loss) for the
period with Adjusted EBITDA, each of (i) "stock-based
compensation", (ii) "amortization and depreciation", (iii) "finance
and related costs, net", (iv) "other costs", and (v) "income tax
recovery" appearing in the Consolidated Statement of Net Income
(Loss) are added to net income (loss) for the period to determine
Adjusted EBITDA. Adjusted EBITDA does not have any standardized
meaning prescribed by IFRS and is not necessarily comparable to
similar measures presented by other companies. Adjusted
EBITDA should not be considered in isolation or as a substitute for
net income (loss) prepared in accordance with IFRS as issued by the
IASB.
2CONSISTENT PRESCRIBER
A consistent prescriber is a physician that has prescribed
Vascepa in at least 4 of the past 5 weeks.
FORWARD LOOKING INFORMATION
This release includes forward-looking statements regarding
HLS and its business. Such statements are based on the current
expectations and views of future events of HLS's management. In
some cases the forward-looking statements can be identified by
words or phrases such as "may", "will", "expect", "plan",
"anticipate", "intend", "potential", "estimate", "believe" or the
negative of these terms, or other similar expressions intended to
identify forward-looking statements, including, among others,
statements with respect to HLS's pursuit of additional product and
pipeline opportunities in certain therapeutic markets, statements
regarding growth opportunities, expectations regarding financial
performance, and the NCIB and ASPP. The forward-looking events and
circumstances discussed in this release may not occur and could
differ materially as a result of known and unknown risk factors and
uncertainties affecting HLS, including risks relating to the
specialty pharmaceutical industry, risks related to the regulatory
approval process, economic factors and many other factors beyond
the control of HLS. Forward-looking statements and information by
their nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause HLS's actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statement
or information. Accordingly, readers should not place undue
reliance on any forward-looking statements or information. A
discussion of the material risks and assumptions associated with
this release can be found in the Company's Annual Information Form
dated March 13, 2024, and
Management's Discussion and Analysis dated March 13, 2024, both of which have been filed on
SEDAR and can be accessed at www.sedarplus.ca. Accordingly, readers
should not place undue reliance on any forward-looking statements
or information. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and HLS undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
HLS THERAPEUTICS
INC.
|
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
|
|
As at
|
As at
|
|
|
December 31,
2023
|
December 31,
2022
|
|
|
|
|
ASSETS
|
|
|
|
Current
|
|
|
|
Cash
|
|
21,952
|
20,723
|
Accounts
receivable
|
|
10,608
|
10,999
|
Inventories
|
|
9,534
|
8,902
|
Income taxes
recoverable
|
|
86
|
195
|
Other current
assets
|
|
1,915
|
3,555
|
Total current
assets
|
|
44,095
|
44,374
|
Property, plant and
equipment
|
|
965
|
1,127
|
Intangible
assets
|
|
162,344
|
195,018
|
Deferred tax
asset
|
|
1,037
|
465
|
Other non-current
assets
|
|
619
|
668
|
Total assets
|
|
209,060
|
241,652
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Current
|
|
|
|
Accounts payable and
accrued liabilities
|
|
14,107
|
12,785
|
Provisions
|
|
5,424
|
2,934
|
Debt and other
liabilities
|
|
6,876
|
15,471
|
Income taxes
payable
|
|
281
|
—
|
Total current
liabilities
|
|
26,688
|
31,190
|
Debt and other
liabilities
|
|
84,233
|
84,578
|
Deferred tax
liability
|
|
442
|
566
|
Total
liabilities
|
|
111,363
|
116,334
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Share
capital
|
|
262,127
|
265,206
|
Contributed
surplus
|
|
13,865
|
13,821
|
Accumulated other
comprehensive loss
|
|
(2,838)
|
(5,260)
|
Deficit
|
|
(175,457)
|
(148,449)
|
Total shareholders'
equity
|
|
97,697
|
125,318
|
Total liabilities and
shareholders' equity
|
209,060
|
241,652
|
|
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF LOSS
|
Unaudited
|
[in thousands of U.S.
dollars, except per share amounts]
|
|
|
|
Three months
ended
December
31,
|
Year
ended
December
31,
|
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
|
Revenue
|
|
15,863
|
15,675
|
63,074
|
61,467
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Cost of product
sales
|
|
2,533
|
1,517
|
7,624
|
4,981
|
Selling and
marketing
|
|
4,716
|
5,169
|
19,896
|
17,846
|
Medical, regulatory and
patient support
|
|
1,386
|
1,606
|
5,574
|
5,727
|
General and
administrative
|
|
1,888
|
2,046
|
8,928
|
9,086
|
Stock-based
compensation
|
|
(601)
|
752
|
(538)
|
2,922
|
Amortization and
depreciation
|
|
7,047
|
8,692
|
31,939
|
34,402
|
Finance and related
costs, net
|
|
2,109
|
2,188
|
11,237
|
5,040
|
Other costs
|
|
2,111
|
229
|
6,217
|
5,185
|
Loss before income
taxes
|
|
(5,326)
|
(6,524)
|
(27,803)
|
(23,722)
|
Income tax
recovery
|
|
75
|
(95)
|
(272)
|
(124)
|
Net loss for the
period
|
|
(5,401)
|
(6,429)
|
(27,531)
|
(23,598)
|
|
|
|
|
Net loss per
share:
|
|
|
|
Basic and
diluted
|
|
$(0.17)
|
$(0.20)
|
$(0.85)
|
$(0.73)
|
HLS THERAPEUTICS
INC.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
Three months
ended
December
31,
|
Year
ended
December
31,
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
Net loss for the
period
|
(5,401)
|
(6,429)
|
(27,531)
|
(23,598)
|
|
|
|
|
|
Item that may be
reclassified subsequently to net loss
|
|
|
|
|
Unrealized foreign currency translation
adjustment
|
2,186
|
1,345
|
2,422
|
(8,219)
|
Comprehensive loss
for the period
|
(3,215)
|
(5,084)
|
(25,109)
|
(31,817)
|
HLS THERAPEUTICS
INC.
|
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
|
|
|
|
Share
capital
|
Contributed
surplus
|
Accumulated
other
comprehensive
income (loss)
|
Deficit
|
Total
|
|
|
|
|
|
|
|
Balance, December
31, 2021
|
|
265,917
|
11,717
|
2,959
|
(119,857)
|
160,736
|
Stock options
exercised
|
|
251
|
(67)
|
—
|
—
|
184
|
Shares
repurchased
|
|
(962)
|
—
|
—
|
(36)
|
(998)
|
Share purchase
obligation
|
|
—
|
(185)
|
—
|
—
|
(185)
|
Stock option
expense
|
|
—
|
2,356
|
—
|
—
|
2,356
|
Net loss for the
year
|
|
—
|
—
|
—
|
(23,598)
|
(23,598)
|
Dividends
declared
|
|
—
|
—
|
—
|
(4,958)
|
(4,958)
|
Unrealized foreign
currency
translation adjustment
|
|
—
|
—
|
(8,219)
|
—
|
(8,219)
|
Balance, December
31, 2022
|
|
265,206
|
13,821
|
(5,260)
|
(148,449)
|
125,318
|
Stock options
exercised
|
|
178
|
(44)
|
—
|
—
|
134
|
Shares
repurchased
|
|
(3,257)
|
—
|
—
|
1,705
|
(1,552)
|
Share purchase
obligation
|
|
—
|
(115)
|
—
|
—
|
(115)
|
Stock option
expense
|
|
—
|
203
|
—
|
—
|
203
|
Net loss for the
year
|
|
—
|
—
|
—
|
(27,531)
|
(27,531)
|
Dividends
declared
|
|
—
|
—
|
—
|
(1,182)
|
(1,182)
|
Unrealized foreign
currency
translation adjustment
|
|
—
|
—
|
2,422
|
—
|
2,422
|
Balance, December
31, 2023
|
|
262,127
|
13,865
|
(2,838)
|
(175,457)
|
97,697
|
HLS THERAPEUTICS
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
Three months
ended
December
31,
|
Year
ended
December
31,
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
Net loss for the
period
|
(5,401)
|
(6,429)
|
(27,531)
|
(23,598)
|
Adjustments to
reconcile net loss to cash provided by operating
activities
|
|
|
|
|
Stock-based compensation
|
(601)
|
752
|
(538)
|
2,922
|
Amortization and depreciation
|
7,047
|
8,692
|
31,939
|
34,402
|
Impairment charge
|
1,541
|
—
|
3,893
|
3,051
|
Accreted interest
|
217
|
198
|
797
|
810
|
Fair value adjustment on financial assets
and liabilities
|
(263)
|
237
|
2,888
|
(2,330)
|
Deferred income taxes
|
107
|
(95)
|
(696)
|
138
|
Net change in non-cash
working capital balances related to operations
|
1,087
|
166
|
5,037
|
1,547
|
Cash provided by
operating activities
|
3,734
|
3,521
|
15,789
|
16,942
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
Additions to property,
plant and equipment
|
(14)
|
(9)
|
(41)
|
(45)
|
Royalty milestone
payment
|
—
|
—
|
—
|
(10,000)
|
Additions to intangible
assets
|
—
|
(11)
|
(148)
|
(103)
|
Cash used in
investing activities
|
(14)
|
(20)
|
(189)
|
(10,148)
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
Stock options
exercised
|
—
|
—
|
134
|
184
|
Shares
repurchased
|
(580)
|
(350)
|
(1,552)
|
(998)
|
Dividends
paid
|
—
|
(1,193)
|
(2,398)
|
(4,962)
|
Drawdown under credit
agreement
|
—
|
—
|
—
|
10,000
|
Repayment of borrowing
under credit agreement
|
(3,172)
|
(2,389)
|
(8,855)
|
(9,778)
|
Debt costs
|
—
|
—
|
(1,360)
|
(639)
|
Lease
payments
|
(134)
|
(162)
|
(608)
|
(663)
|
Cash used in
financing activities
|
(3,886)
|
(4,094)
|
(14,639)
|
(6,856)
|
|
|
|
|
|
Net increase
(decrease) in cash during the period
|
(166)
|
(593)
|
961
|
(62)
|
Foreign exchange on
cash
|
310
|
37
|
268
|
(394)
|
Cash, beginning of
period
|
21,808
|
21,279
|
20,723
|
21,179
|
Cash, end of
period
|
21,952
|
20,723
|
21,952
|
20,723
|
SOURCE HLS Therapeutics Inc.