LOS ANGELES, CA / ACCESSWIRE / July 30, 2020 / In every part of the world, one can expect to find a plethora of talent which takes on many different shapes and forms. Of course, there are talented individuals who are widely known on a global scale for their abilities, but there is a substantial amount of talent that has yet to be recognized internationally. Runway Influence, a worldwide digital marketing agency, has established strong relationships with both international and regional talent from across the world, and has organized some of the most influential campaigns with iconic brands while doing so.

Runway Influence specializes in working with social media influencers from all around the globe to help major brands achieve recognition and growth in the most strategic and efficient way possible. Brands find success working with Runway Influence due to the versatility of their influencers, as they function on the mega, macro, and micro levels of social media influencer marketing. They typically work with top-tier models as well as other social media influencers who tote the highest quality of followers, and have executed successful marketing campaigns for many of the most notable brands in the world such as McLaren and Adidas, to name a few.

Runway Influence CEO, Ernest Sturm, created this company 5 years ago when he noticed the quick transition models were making from the fashion industry to social media marketing. He found that social media models have the capability to rapidly increase brand awareness through their ability to draw attention to the brand, and recognized the diverse makeup of their social media followings. According to Sturm, these followings generally include prominent individuals such as investors, entrepreneurs, businessmen, designers, photographers, and the "shakers and movers" of the industry.

As a serial entrepreneur, Sturm commonly finds himself traveling to many different cities and countries, something he is very passionate about. He emphasized that he finds great joy in experiencing various cultures as well as interacting with people from all walks of life. Through these experiences, Sturm has developed the ability to naturally connect and build relationships with anyone he encounters, a skill he deems invaluable as it directly applies to his company. Not only does Runway Influence travel worldwide to meet with many of their influencers and clients in person, but Sturm and his team have strong personal relationships with every influencer they work with. He stated, "Our influencers are not just a number on our roster. We speak to each them on regular basis and understand their strengths and weaknesses which allows us to strategically assemble the best team possible for our clients' campaigns."

Ernest Sturm and Runway Influence have no plans to slow down any time soon. They are constantly looking to add to their impressive group of influencer talent, and they have plans to expand into new industries to work with many new clients internationally. So far, Runway Influence has found substantial success with clients in the CBD, wellness, apparel, fashion, beauty, medical, cosmetic, and beverage industries.

Sturm believes his team at Runway Influence is the best in the business, and with them by his side, he strives to be known as the go-to expert in social media branding and advertising. Whether in the United States or visiting a country somewhere overseas, the sky is the limit for Runway Influence and Ernest Sturm.

You can keep up with Runway Influence on their Instagram, or contact them on their Website.

SOURCE: BIGWORK Media

ReleaseID: 599746

NEW YORK, NY / ACCESSWIRE / July 30, 2020 / A professional rugby player turned entrepreneur, this is the story of Ignacio Saenz Lancuba. Many professional athletes are just that, professional athletes, and do little more than that because of a skillset that has mainly focused on being an athlete. Ignacio, on the other hand, wanted to do more, so he became an entrepreneur. Being just one type of entrepreneur was not enough for him, however, he wanted to be an entrepreneur in multiple capacities and multiple fields. He became a serial entrepreneur and now owns many different types of businesses. Like many of us, he knew the normal day to day grind was not for him.

"I've always wanted freedom and hated being average. Not that if you work 9-5 you are going to be average, but I've always thought that I could do more," explains Ignacio.

Ignacio, along with his two business partners, Elton Browne and Pedro Sebasco, run a company called Next Gen Strategic Investments. The company focuses on how to make a passive income through Amazon and dropshipping. This sort of offer is very attractive to many people as it allows them to make money even while they are sleeping! In addition to this company, Ignacio also works in the real estate world, is a partner in an auto company, and a finance company.

"I took it upon myself to learn as much as I could from others so one day I could use those lessons and apply it to my own business. I currently own an Auto Spares Factory and Store, Finance company, Amazon E-commerce stores, and I do Real Estate Investment," Ignacio states.

Though he was in the world of professional sports for a while, Ignacio was surrounded by business as he grew up. His family members were almost all entrepreneurs, so he was familiar with the world of business. He was happy to join them in the world of business and use what he had learned growing up. Like many of us, we are influenced by what we grow up around. Though we may not always see ourselves following the same path as our parents, it still has a profound impact on who we are today.

"I always wanted to have the financial freedom to do what I wanted to do with no limitations and strive for the best in all that I do. After finishing an incredible career in professional rugby, I wanted to venture off in the world of business. I had been exposed to business my entire life, as my family owns one," remarks Ignacio.

Ignacio and his partners created a business around certain ideals that helped them transform their starting business into a successful operation. The three men believe in transparency above anything else when it comes to making their business a success and helping others embark on their dropshipping journey. Many times, industries like dropshipping are not transparent and do not give their clients good results. Ignacio and his partners are not interested in deceiving people and want them to succeed as well.

"We share common goals and run all of our businesses around our guiding principles of being honest, transparent, passionate, innovative, customer centric, hardworking, hands-on, empathetic, self-motivated, goal oriented, being a team player, results-driven and maintaining a high level of integrity at all times: while creating mutually beneficial business relationships between client and manager," says Ignacio.

The pandemic, though destructive and devastating for many of us and our families, has opened the door to the online world and creating a business out of online opportunities. For Ignacio and his partners, they believe that they can help people do just that despite the current problems the pandemic presents.

To find out more about Ignacio, you can follow him on Instagram @ignaciosaelan and check out his website at www.nextgen-investments.com.

CONTACT:
Paula Henderson
646-736-2071
phendersonnews@gmail.com

About VIP Media Group:
VIP Media Group is a hybrid PR agency. Their diverse client base includes top-class entrepreneurs, public figures, influencers, and celebrities.

SOURCE: VIP Media Group

ReleaseID: 599705

SALINAS, CA / ACCESSWIRE / July 30, 2020 / 1st Capital Bank (OTC PINK:FISB) reported unaudited net income of $1.35 million for the three months ended June 30, 2020, an increase of 122.1% compared to net income of $608 thousand in the first quarter of 2020 and a decrease of 17.6% compared to net income of $1.64 million in the second quarter of 2019. Earnings per share were $0.24 (diluted) for the second quarter of 2020, compared to $0.11 (diluted) for the prior quarter, and $0.29 (diluted) for the second quarter of 2019.

Unaudited net income for the six-month period ended June 30, 2020 was $1.96 million, a decrease of 42.7% compared to net income of $3.41 million for the six-month period ended June 30, 2019. Year-to-date earnings per share were $0.35 (diluted) and $0.61 (diluted) for the six-month periods ended June 30, 2020 and 2019, respectively.

"The Bank's operating results for the second quarter were driven by the effects of the global pandemic," said Samuel D. Jimenez, chief executive officer. "Our lenders worked tirelessly during the second quarter to fund more than 400 loans totaling more than $100 million to businesses in our community under the U.S. Small Business Administration's Paycheck Protection Program. As we entered the third quarter, we made key hires to address the asset quality issues the current economic situation presents while continuing to actively expand our business and fill out our geographic footprint. We believe the steps we are taking now will position the Bank to proactively address the challenges ahead."

Operating results reflect a provision for loan losses of $650 thousand in the second quarter of 2020, compared to $825 thousand in the first quarter of 2020, to recognize incurred losses in the Bank's loan portfolio, which are attributable primarily to the COVID-19 outbreak and consequent action taken by governmental officials to curtail the operations of businesses deemed nonessential. The Bank did not record a provision for loan losses in the second quarter of 2019.

As of June 30, 2020, the Bank's allowance for loan and lease losses was $8.1 million, or 1.30% percent of loans held for investment, compared to $7.4 million, or 1.40% of loans held for investment, as of March 31, 2020 and $6.6 million, or 1.29% of loans held for investment, as of December 31, 2019. The Bank's allowance for loan losses as of June 30, 2020 was 1.55% of loans held for investment excluding its net investment of $100.7 million in loans insured under the U.S. Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"). The Bank recognized net recoveries of $12 thousand, $12 thousand, and $13 thousand in the second quarter of 2020, the first quarter of 2020, and the second quarter of 2019, respectively, and recognized no loan or lease charge-offs in such periods.

"We believe it was prudent to continue to provide for credit losses in the second quarter, as the potential for a V-shaped recovery faded" said Dale R. Diederick, chief credit officer. "While recent unemployment levels and jobless claims are lower than initially projected, the level and trend of coronavirus cases has increased, raising the potential for a prolonged recession, with adverse consequences for the value and market absorption of commercial real estate. The Bank also has seen a downward migration in loan risk ratings, an increase in the level of 30- to 89-day delinquencies, and an increase in forbearance requests, primarily on single-family residential loans. All of these factors point to the need for an increased allowance for loan and lease losses."

Total assets increased $90.9 million in the second quarter, from $645.8 million at March 31, 2020 to $736.7 million at June 30, 2020, an increase of 14.1%. Net loans held for investment increased $92.5 million, or 17.7%, during the second quarter, from $523.1 million at March 31, 2020 to $615.6 million at June 30, 2020.

PPP loans totaled $100.7 million at June 30, 2020. Single-family loans purchased by the Bank in prior quarters declined $13.6 million, or 11.5%, while the portfolio of loans originated by the Bank increased $6.7 million, or 1.6%, in the second quarter of 2020. Growth in the core loan portfolio was concentrated in multi-family loans, which increased $13.9 million, or 24.0%, while commercial real estate loans decreased $2.1 million, or 0.8%, and commercial and industrial loans decreased $2.8 million, or 5.5%. Undrawn, available credit decreased $951 thousand, from $68.0 million at March 31, 2020 to $67.0 million at June 30, 2020.

"Despite the devastating effects the pandemic has had on certain sectors of the economy, the Bank was able to continue to actively develop new business opportunities in the second quarter of 2020," said Jon D. Ditlevsen, president. "While a number of our competitors have scaled back their lending operations to focus solely on loss mitigation, 1st Capital has continued to source new loans to businesses that are less exposed to the effects of the pandemic and related government actions. This new business meets the credit risk acceptance criteria that we historically have had in place for our core loan portfolio, and we have remained mindful of the effects the pandemic has had on industries that are prominent in our market area, such as hospitality, tourism, and retail trade. We funded $33.2 million in commercial and industrial and commercial real estate loans in the second quarter, compared to $37.2 million in the first quarter of 2020."

Second Quarter Highlights:

Return on average equity was 7.74%, compared to 3.53% for the first quarter of 2020 and 10.47% for the second quarter of 2019.
Return on average assets was 0.75%, compared to 0.38% for the first quarter of 2020 and 1.08% for the second quarter of 2019.
Gross loans held for investment increased $93.2 million, or 17.7%, during the second quarter of 2020, from $530.5 million at March 31, 2020 to $623.7 million at June 30, 2020.
Non-accrual loans were $490 thousand, or 0.08% of loans outstanding, at June 30, 2020, compared to $492 thousand at March 31, 2020 and December 31, 2019. Loans 30 to 89 days delinquent increased from $856 thousand at March 31, 2020 to $2.3 million at June 30, 2020.
The Bank's net loans to deposits ratio increased from 91.4% at March 31, 2020 to 94.6% at June 30, 2020.
Sources of liquidity comprising secured borrowing capacity with the Federal Home Loan Bank of San Francisco and deposits eligible to be moved onto the Bank's balance sheet in the form of reciprocal deposits totaled $226.5 million at June 30, 2020. $25.0 million of additional liquidity under Federal funds facilities also was available.
Deposits totaled $650.8 million at June 30, 2020, compared to $572.0 million at March 31, 2020, an increase of $78.8 million, or 13.8%.
Demand deposits increased $90.3 million, or 35.7%, from $252.8 million at March 31, 2020 to $343.0 million at June 30, 2020 and made up 52.7% of total deposits at June 30, 2020.
The Bank's cost of funds decreased from 0.23% in the first quarter of 2020 to 0.15% in the second quarter of 2020.
Non-interest income declined from $288 thousand in the first quarter of 2020 to $181 thousand in the second quarter of 2020.
Non-interest expenses decreased from $4.49 million in the first quarter of 2020 to $3.95 million in the second quarter of 2020.
The Bank's common equity Tier 1 ("CET1") risked-based capital ratio was 14.12%, and its Tier 1 leverage ratio was 10.83% at June 30, 2020, compared to 13.66 % and 10.77%, respectively, at March 31, 2020.
Net interest margin decreased from 3.87% in the first quarter of 2020 to 3.65% in the second quarter of 2020. The ratio of net interest income before provision for loan losses less interest on PPP loans to average earning assets less the average net investment in PPP loans was 3.74% in the second quarter of 2020.

Throughout the second quarter of 2020, all branch offices of the Bank, other than the limited service branch at the Bank's headquarters office, which historically has had very limited transaction activity, remained open. Approximately 65% of Bank employees were working remotely, and no employees have tested positive for the coronavirus.

NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES

Net interest income before provision for credit losses was $6.32 million in the second quarter of 2020, an increase of $457 thousand, or 7.8%, compared to $5.86 million in the first quarter of 2020 and an increase of $351 thousand, or 5.9%, compared to $5.97 million in the second quarter of 2019.

Average earning assets were $697.2 million during the second quarter of 2020, an increase of 14.4% compared to $609.6 million in the first quarter of 2020. The yield on earning assets was 3.78% in the second quarter of 2020, compared to 4.12% in the first quarter of 2020, primarily due to reduced yields on commercial and industrial loans and the investment portfolio as a result of the 1.50% decrease in the Federal funds target rate in March 2020, as well as the effect of the funding of $100.7 of PPP loans at yields substantially below the Bank's first quarter 2020 yield on earning assets.

The average balance of the investment portfolio decreased $2.1 million, from $65.2 million in the first quarter of 2020 to $63.0 million in the second quarter of 2020, and the yield on the investment portfolio decreased from 2.33% in the first quarter of 2020 to 1.88% in the second quarter of 2020, as yields on floating rate securities decreased. The yield on the investment portfolio in June 2020 was 1.78%.

The yields on non-PPP commercial and industrial and commercial real estate loans in the second quarter of 2020 were 4.46% and 4.74% on average balances of $50.5 million and $242.2 million, respectively, compared to 4.66% and 4.83% on average balances of $43.8 million and $237.6 million in the first quarter of 2020. The average balance of multi-family residential loans increased to $64.9 million in the second quarter of 2020 from $58.9 million in the first quarter of 2020, while the respective yields were 4.42% and 4.65%. The portfolio of single-family residential first liens yielded 3.48% and 3.38% on average balances of $128.3 million and $136.2 million in the second quarter of 2020 and the first quarter of 2020, respectively. The yields on the Bank's non-PPP commercial and industrial, commercial real estate, multi-family residential, and single-family residential first lien portfolios in June 2020 were 4.57%, 4.74%, 4.28%, and 3.52%, respectively.

The Bank recognizes income on its net investment in PPP loans (outstanding principal plus direct loan origination costs less deferred loan fees paid by the SBA) based on the amortization schedule of the underlying loan. Unamortized loan fees are taken into income at the time a loan is paid off. Interest income on PPP loans in the second quarter totaled $608 thousand, including $100 thousand of deferred fees recognized as income in connection with loan payoffs. During the second quarter, the average balance of PPP loans outstanding was $77.6 million, with a yield of 3.18%. The yield on the PPP portfolio in June 2020, which included no income related to loan payoffs, was 2.64%.

The cost of interest-bearing liabilities was 0.30% in the second quarter of 2020, compared to 0.44% in the first quarter of 2020, while the average balance of interest-bearing liabilities increased 6.8% from $297.0 million in the first quarter of 2020 to $317.1 million in the second quarter of 2020. The average balance of reciprocal deposits, all of which are money market deposits, increased 40.7% from $21.1 million in the first quarter of 2020 to $29.7 million in the second quarter of 2020 at a cost of 0.80% and 0.09%, respectively. Reciprocal deposits totaled $15.3 million as of June 30, 2020, compared to $42.7 million as of March 31, 2020.

The average balance of noninterest-bearing demand deposit accounts increased 24.3% from $262.4 million, or 46.9% of total deposits, in the first quarter of 2020 to $326.2 million, or 50.7% of total deposits, in the second quarter of 2020. The Bank funded 413 PPP loans with loan principal totaling $103.5 million in the second quarter of 2020 and placed $84.5 million of the loan proceeds in deposit accounts with the Bank.

The Bank's portfolio of certificates of deposit had average balances of $19.4 million in the first quarter of 2020 and $19.2 million in the second quarter of 2020, and an average cost of funds of 1.15% and 1.12%, respectively. As of June 30, 2020, $17.5 million of certificates of deposit had maturities of one year or less.

On May 28, 2020, the Bank drew down $10.0 million under the Federal Home Loan Bank of San Francisco's zero interest rate Recovery Advance program. $5.0 million of this amount is payable November 27, 2020, and the remaining $5.0 million is payable May 27, 2021.

The Bank's overall cost of funds decreased from 0.23% in the first quarter of 2020 to 0.15% in the second quarter of 2020.

CREDIT QUALITY AND PROVISION FOR CREDIT LOSSES

The Bank's core market comprises Monterey, San Luis Obispo, and Santa Cruz Counties, all of which are located along California's Central Coast. As of June 30, 2020, approximately $58.1 million, or $82.5%, of owner-occupied commercial real estate loans, $229.2 million, or $94.6%, of investor real estate loans, $28.2 million, or 21.1%, of single-family residential loans, and substantially all multi-family, construction, and farmland loans, as well as all home equity lines of credit, were collateralized by properties located within the Bank's market area. An additional $15.8 million of commercial real estate loans was collateralized by properties located in neighboring San Benito and Santa Clara Counties. All single-family residential loans were collateralized by properties located in California, and substantially all commercial and industrial loans were to businesses operating within the Bank's market area or San Benito County.

According to statistics appearing in the Los Angeles Times' website, through July 28, 2020, 7,028 coronavirus cases had been identified in the Bank's market area, including 4,288 cases in Monterey County, 1,710 cases in San Luis Obispo County, and 1,030 cases in Santa Cruz County. Within Monterey County, 2,491 cases had been identified in Salinas and 1,067 cases in South Monterey County, where King City is located; agriculture is the primary basic industry in these areas. 373 cases had been identified in the Big Sur and Monterey Peninsula region, where tourism is more prominent. Coronavirus cases were more evenly distributed across San Luis Obispo and Santa Cruz Counties.

As of July 28, 2020, businesses not deemed essential by the State of California (including shopping malls, retailers not offering merchandise deemed essential, bars, restaurants not offering take-out and/or outdoor dining, and most personal services) in Monterey and San Luis Obispo Counties were under closure orders, which are subject to change on a daily basis. Similar restrictions were in place in Santa Cruz County, except retailers generally were able to operate, but could become subject to closure orders immediately should conditions deteriorate.

A summary of loans outstanding by industry sector as of June 30, 2020 is provided within the disclosure of Condensed Financial Data.

Single-family mortgages totaling $105.0 million as of June 30, 2020 are serviced by the Bank's outside single-family loan servicer in conformity with guidance issued by the Government-Sponsored Entities, including forbearance under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The Bank services all other loans (including all home equity lines of credit) in its portfolio.

The Bank has entered into loan forbearance agreements as defined by the CARES Act on fourteen non-conforming single-family mortgages serviced by the Bank's outside servicer totaling $12.6 million. Such forbearance agreements call for the deferral of payments for 90 days, with a 30-day catch-up period. In addition, the Bank has entered into deferment agreements with 41 borrowers with loans aggregating $42.3 million, comprising seven nonowner-occupied commercial real estate loans totaling $16.6 million, sixteen owner-occupied commercial real estate loans totaling $14.1 million, thirteen commercial and industrial loans totaling $6.3 million, two multi-family loans totaling $3.4 million, and three non-conforming single-family residential loans serviced by the Bank totaling $1.8 million. Deferral agreements on loans serviced by the Bank call for the deferral of principal payments, but require ongoing payments of monthly accrued interest.

Loans 30 to 89 days delinquent, all which were single-family mortgages, totaled $2.3 million as of June 30, 2020, compared to $858 thousand as of March 31, 2020.

At June 30, 2020, non-accrual loans totaled $490 thousand, or 0.08% of the Bank's loan portfolio, compared with $492 thousand, or 0.09% at March 31, 2020, and $492 thousand, or 0.10% at December 31, 2019. All such loans are commercial loans to the retail sector.

The provision for credit losses is a charge against current earnings in an amount determined by management to be necessary to maintain the allowance for loan losses at a level sufficient to absorb estimated probable losses inherent in the loan portfolio in light of losses historically incurred by the Bank and adjusted for qualitative factors associated with the loan portfolio.

The Bank recorded a provision for loan losses of $650 thousand in the second quarter of 2020, compared to $825 thousand in the first quarter of 2020 and no provision in the second quarter of 2019. Although the mix of loan types within the portfolio (excluding PPP loans) and their respective historical loss rates were largely unchanged, management recognized that loan risk ratings had migrated downward and economic conditions had continued to deteriorate in the second quarter. Therefore, the qualitative factors used to compute the allowance for loan and lease losses were adjusted upward. In particular, management made upward adjustments to the qualitative factors for portfolio concentrations in commercial real estate and related collateral values, as well as general economic conditions. The provision also reflects an increase in the loans identified as impaired. Impaired loans totaled $891 thousand at June 30, 2020, compared to $630 thousand at March 31, 2020 and $652 thousand at December 31, 2019 and were extended to borrowers engaged in manufacturing, retail trade, and business services. The amount of impairment was $501 thousand at June 30, 2020, compared to $326 thousand at March 31, 2020 and December 31, 2019.

At June 30, 2020, the allowance for loan losses was 1.30% of outstanding loans, compared to 1.40% at March 31, 2020 and 1.36% at June 30, 2019, respectively. The ratio of the allowance for loan and lease losses to loans not guaranteed by the SBA under the PPP was 1.55% as of June 30, 2020. The Bank recorded net recoveries of $12 thousand in each of the second quarter of 2020, the first quarter of 2020, and the second quarter of 2019. The Bank did not record any charge-offs during such periods.

NON-INTEREST INCOME

Non-interest income recognized in the second quarter of 2020 was $181 thousand, compared to $288 thousand in the first quarter of 2020. A $35 thousand decline in mortgage referral fees and a $26 thousand decline in Insured Cash Sweep fee income were the primary causes of the decrease.

NON-INTEREST EXPENSES

Non-interest expenses decreased $541 thousand, or 12.0%, to $3.95 million in the second quarter of 2020, compared to $4.49 million for the first quarter of 2020, and decreased $309 thousand, or 7.2%, compared to $4.26 million recognized in the second quarter of 2019.

Salaries and benefits decreased $431 thousand, or 15.3%, to $2.39 million in the second quarter of 2020 from $2.82 million in the first quarter of 2020, and decreased $307 thousand, or 11.4%, compared to $2.70 million in the second quarter of 2019. Employee salaries increased $126 thousand, or 6.3%, sequentially and $50 thousand, or 2.4%, year over year. Health insurance premiums decreased $2 thousand, or 0.8%, sequentially, but increased $49 thousand, or 25.6%, year over year. The decrease in salaries and benefits also reflected payments in the first quarter of 2020 aggregating $234 thousand to the Bank's former chief executive officer in connection with his retirement and seasonal decreases in payroll taxes. In addition, the absorption of direct loan origination costs increased $305 thousand sequentially, reflecting the origination of 413 PPP loans at a standard cost of $750 per loan in the second quarter of 2020.

The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for loan losses and non-interest income) was 60.8% for the second quarter of 2020, compared to 73.1% for the first quarter of 2020 and 65.6% for the second quarter of 2019. Annualized non-interest expenses as a percent of average total assets were 2.20%, 2.85%, and 2.80% for the second quarter of 2020, the first quarter of 2020, and the second quarter of 2019, respectively, reflecting the sequential decrease in non-interest expenses and the increase in earning assets attributable to the PPP.

About 1st Capital Bank

The Bank's primary target markets are commercial enterprises, professionals, real estate investors, family business entities, and residents along the Central Coast region of California. The Bank provides a wide range of credit products, including loans under various government programs such as those provided through the U.S. Small Business Administration and the U.S. Department of Agriculture. A full suite of deposit accounts also is furnished, complemented by robust cash management services. The Bank operates full service branch offices in Monterey, Salinas, King City, San Luis Obispo, and Santa Cruz County. The Bank's corporate offices are located at 150 Main Street, Suite 150, Salinas, California 93901. The Bank's website is www.1stCapital.bank. The main telephone number is 831.264.4000. The primary facsimile number is 831.264.4001. Member FDIC / Equal Opportunity Lender / SBA Preferred Lender

Forward-Looking Statements

Certain of the statements contained herein that are not historical facts are "forward-looking statements" within the meaning of and subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may contain words or phrases including, but not limited, to: "believe," "expect," "anticipate," "intend," "estimate," "target," "plans," "may increase," "may fluctuate," "may result in," "are projected," and variations of those words and similar expressions. All such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that might cause such a difference include, among other matters, changes in interest rates; economic conditions including inflation and real estate values in California and the Bank's market areas; governmental regulation and legislation; credit quality; competition affecting the Bank's businesses generally; the risk of natural disasters and future catastrophic events including pandemics, terrorist related incidents and other factors beyond the Bank's control; and other factors. The Bank does not undertake, and specifically disclaims any obligation, to update or revise any forward-looking statements, whether to reflect new information, future events, or otherwise, except as required by law.

This news release is available at the www.1stCapital.bank internet site for no charge.

For further information, please contact:

Samuel D. Jimenez
Chief Executive Officer
831.264.4057 office
Sam.Jimenez@1stCapitalBank.com
or
Michael J. Winiarski
Chief Financial Officer
831.264.4014 office
Michael.Winiarski@1stCapitalBank.com

— financial data follow —

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 
June 30,
 
 
March 31,
 
 
December 31,
 
 
June 30,
 

Financial Condition Data1

 
2020
 
 
2020
 
 
2019
 
 
2019
 

Assets

Cash and due from banks

 
$
6,719
 
 
$
6,582
 
 
$
6,198
 
 
$
5,994
 

Funds held at the Federal Reserve Bank2

 
 
29,056
 
 
 
30,071
 
 
 
46,155
 
 
 
56,057
 

Available-for-sale securities, at fair value

 
 
62,473
 
 
 
63,728
 
 
 
66,095
 
 
 
70,396
 

Loans held for sale

 
 
488
 
 
 
–
 
 
 
–
 
 
 
–
 

Loans receivable held for investment:

Construction / land (including farmland)

 
 
16,372
 
 
 
21,193
 
 
 
19,457
 
 
 
18,014
 

Residential 1 to 4 units

 
 
127,192
 
 
 
136,014
 
 
 
140,623
 
 
 
144,336
 

Home equity lines of credit

 
 
6,630
 
 
 
7,656
 
 
 
6,964
 
 
 
7,920
 

Multifamily

 
 
71,795
 
 
 
57,900
 
 
 
59,830
 
 
 
53,561
 

Owner occupied commercial real estate

 
 
70,478
 
 
 
73,488
 
 
 
70,622
 
 
 
61,242
 

Investor commercial real estate

 
 
172,219
 
 
 
171,266
 
 
 
159,350
 
 
 
142,533
 

Commercial and industrial

 
 
47,717
 
 
 
50,460
 
 
 
41,100
 
 
 
39,603
 

Paycheck Protection Program

 
 
100,652
 
 
 
–
 
 
 
–
 
 
 
–
 

Other loans

 
 
10,638
 
 
 
12,510
 
 
 
12,943
 
 
 
14,468
 

Total loans

 
 
623,693
 
 
 
530,487
 
 
 
510,889
 
 
 
481,677
 

Allowance for loan losses

 
 
(8,093
)
 
 
(7,431
)
 
 
(6,594
)
 
 
(6,572
)

Net loans

 
 
615,600
 
 
 
523,056
 
 
 
504,295
 
 
 
475,105
 

Premises and equipment, net

 
 
2,541
 
 
 
2,189
 
 
 
2,102
 
 
 
2,192
 

Bank owned life insurance

 
 
8,167
 
 
 
8,119
 
 
 
8,071
 
 
 
7,968
 

Investment in FHLB3 stock, at cost

 
 
3,534
 
 
 
3,501
 
 
 
3,501
 
 
 
3,501
 

Accrued interest receivable and other assets

 
 
8,113
 
 
 
8,514
 
 
 
8,930
 
 
 
9,577
 

Total assets

 
$
736,691
 
 
$
645,760
 
 
$
645,347
 
 
$
630,790
 

Liabilities and shareholders' equity

Deposits:

Noninterest-bearing demand deposits

 
$
343,042
 
 
$
252,760
 
 
$
280,634
 
 
$
270,939
 

Interest-bearing checking accounts

 
 
46,774
 
 
 
41,857
 
 
 
35,804
 
 
 
36,721
 

Money market deposits

 
 
138,796
 
 
 
158,178
 
 
 
128,559
 
 
 
134,108
 

Savings deposits

 
 
103,152
 
 
 
99,789
 
 
 
107,677
 
 
 
100,049
 

Time deposits

 
 
19,031
 
 
 
19,400
 
 
 
19,395
 
 
 
19,694
 

Total deposits

 
 
650,795
 
 
 
571,984
 
 
 
572,069
 
 
 
561,511
 

Borrowings

 
 
10,000
 
 
 
–
 
 
 
–
 
 
 
–
 

Accrued interest payable and other liabilities

 
 
4,856
 
 
 
4,961
 
 
 
5,263
 
 
 
5,305
 

Shareholders' equity

 
 
71,040
 
 
 
68,815
 
 
 
68,015
 
 
 
63,974
 

Total liabilities and shareholders' equity

 
$
736,691
 
 
$
645,760
 
 
$
645,347
 
 
$
630,790
 

Shares outstanding

 
 
5,535,804
 
 
 
5,528,218
 
 
 
5,520,179
 
 
 
5,483,634
 

Nominal and tangible book value per share

 
$
12.83
 
 
$
12.45
 
 
$
12.32
 
 
$
11.67
 

Ratio of net loans to total deposits

 
 
94.57
%
 
 
91.45
%
 
 
88.15
%
 
 
84.61
%

1 = Loans receivable held for investment are presented according to definitions applicable to the regulatory Call Report.
2 = Includes cash letters in the process of collection settled through the Federal Reserve Bank.
3 = Federal Home Loan Bank
4 = Some items in prior periods have been reclassified to conform to the current presentation.

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 
Three Months Ended
 
 

 
June 30,
 
 
March 31,
 
 
December 31,
 
 
June 30,
 
 

Operating Results Data

 
2020
 
 
2020
 
 
2019
 
 
2019
 
 

Interest and dividend income

Loans

 
$
6,234
 
 
$
5,683
 
 
$
5,556
 
 
$
5,570
 
 

Investment securities

 
 
296
 
 
 
375
 
 
 
410
 
 
 
457
 
 

Other

 
 
32
 
 
 
130
 
 
 
153
 
 
 
225
 
 

Total interest and dividend income

 
 
6,562
 
 
 
6,188
 
 
 
6,119
 
 
 
6,252
 
 

Interest expense

Interest-bearing checking

 
 
3
 
 
 
3
 
 
 
3
 
 
 
3
 
 

Money market deposits

 
 
116
 
 
 
175
 
 
 
159
 
 
 
140
 
 

Savings deposits

 
 
68
 
 
 
89
 
 
 
93
 
 
 
85
 
 

Time deposits

 
 
53
 
 
 
56
 
 
 
55
 
 
 
54
 
 

Total interest expense

 
 
240
 
 
 
323
 
 
 
310
 
 
 
282
 
 

Net interest income

 
 
6,322
 
 
 
5,865
 
 
 
5,809
 
 
 
5,970
 
 

Provision for loan losses

 
 
650
 
 
 
825
 
 
 
–
 
 
 
–
 
 

Net interest income after provision

for loan losses

 
 
5,672
 
 
 
5,040
 
 
 
5,809
 
 
 
5,970
 
 

Noninterest income

Service charges on deposits

 
 
64
 
 
 
94
 
 
 
76
 
 
 
82
 
 

BOLI dividend income

 
 
48
 
 
 
48
 
 
 
50
 
 
 
52
 
 

Other

 
 
69
 
 
 
146
 
 
 
179
 
 
 
394
 
 

Total noninterest income

 
 
181
 
 
 
288
 
 
 
305
 
 
 
528
 
 

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 
Three Months Ended
 

 
June 30,
 
 
March 31,
 
 
December 31,
 
 
June 30,
 

 
2020
 
 
2020
 
 
2019
 
 
2019
 

Noninterest expenses

Salaries and benefits

 
 
2,393
 
 
 
2,824
 
 
 
2,137
 
 
 
2,700
 

Occupancy

 
 
353
 
 
 
363
 
 
 
331
 
 
 
326
 

Data and item processing

 
 
206
 
 
 
221
 
 
 
231
 
 
 
284
 

Furniture and equipment

 
 
189
 
 
 
191
 
 
 
169
 
 
 
142
 

Professional services

 
 
167
 
 
 
161
 
 
 
235
 
 
 
108
 

Provision for unfunded loan

commitments

 
 
–
 
 
 
(17
)
 
 
12
 
 
 
(8
)

Other

 
 
645
 
 
 
752
 
 
 
630
 
 
 
711
 

Total noninterest expenses

 
 
3,953
 
 
 
4,495
 
 
 
3,745
 
 
 
4,263
 

Income before provision for income taxes

 
 
1,900
 
 
 
833
 
 
 
2,369
 
 
 
2,235
 

Provision for income taxes

 
 
550
 
 
 
225
 
 
 
634
 
 
 
597
 

Net income

 
$
1,350
 
 
$
608
 
 
$
1,735
 
 
$
1,638
 

Common Share Data1

Earnings per common share

Basic

 
$
0.24
 
 
$
0.11
 
 
$
0.32
 
 
$
0.30
 

Diluted

 
$
0.24
 
 
$
0.11
 
 
$
0.31
 
 
$
0.29
 

Weighted average common shares outstanding

Basic

 
 
5,531,341
 
 
 
5,521,518
 
 
 
5,506,349
 
 
 
5,478,457
 

Diluted

 
 
5,563,391
 
 
 
5,582,687
 
 
 
5,584,827
 
 
 
5,571,736
 

1 = Earnings per common share and weighted average common shares outstanding have been restated to reflect the effect of the 7% stock dividend to shareholders of record November 22, 2019 and paid December 20, 2019.

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 
Six Months Ended
 

 
June 30,
 
 
June 30,
 

Operating Results Data

 
2020
 
 
2019
 

Interest and dividend income

Loans

 
$
11,917
 
 
$
11,251
 

Investment securities

 
 
671
 
 
 
913
 

Other

 
 
162
 
 
 
540
 

Total interest and dividend income

 
 
12,750
 
 
 
12,704
 

Interest expense

Interest-bearing checking

 
 
6
 
 
 
6
 

Money market deposits

 
 
291
 
 
 
269
 

Savings deposits

 
 
157
 
 
 
176
 

Time deposits

 
 
109
 
 
 
103
 

Total interest expense on deposits

 
 
563
 
 
 
554
 

Interest expense on borrowings

 
 
–
 
 
 
–
 

Total interest expense

 
 
563
 
 
 
554
 

Net interest income

 
 
12,187
 
 
 
12,150
 

Provision for loan losses

 
 
1,475
 
 
 
–
 

Net interest income after provision for loan losses

 
 
10,712
 
 
 
12,150
 

Noninterest income

Service charges on deposits

 
 
158
 
 
 
158
 

BOLI dividend income

 
 
96
 
 
 
103
 

Gain on sale of loans

 
 
–
 
 
 
8
 

Other

 
 
215
 
 
 
773
 

Total noninterest income

 
 
469
 
 
 
1,002
 

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 
Six Months Ended
 

 
June 30,
 
 
June 30,
 

 
2020
 
 
2019
 

Noninterest expenses

Salaries and benefits

 
 
5,217
 
 
 
5,374
 

Occupancy

 
 
716
 
 
 
632
 

Data and item processing

 
 
427
 
 
 
499
 

Furniture and equipment

 
 
380
 
 
 
299
 

Professional services

 
 
328
 
 
 
238
 

Provision for unfunded loan commitments

 
 
(17
)
 
 
(23
)

Other

 
 
1,397
 
 
 
1,484
 

Total noninterest expenses

 
 
8,448
 
 
 
8,503
 

Income before provision for income taxes

 
 
2,733
 
 
 
4,649
 

Provision for income taxes

 
 
775
 
 
 
1,235
 

Net income

 
$ 
1,958
 
 
$ 
3,414
 

Common Share Data1

Earnings per common share

Basic

 
$ 
0.35
 
 
$ 
0.62
 

Diluted

 
$ 
0.35
 
 
$ 
0.61
 

Weighted Average Common Shares Outstanding

Basic

 
 
5,526,430
 
 
 
5,473,312
 

Diluted

 
 
5,573,039
 
 
 
5,560,864
 

1 = Earnings per common share and weighted average common shares outstanding have been restated to reflect the effect of the 7% stock dividend to shareholders of record November 22, 2019 and paid December 20, 2019.

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)

 
June 30,
 
 
March 31,
 
 
December 31,
 
 
June 30,
 

Asset Quality

 
2020
 
 
2020
 
 
2019
 
 
2019
 

Loans past due 90 days or more and accruing

interest

 
$
–
 
 
$
–
 
 
$
–
 
 
$
–
 

Nonaccrual restructured loans

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Other nonaccrual loans

 
 
490
 
 
 
492
 
 
 
492
 
 
 
–
 

Other real estate owned

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

 
$
5,043
 
 
$
492
 
 
$
–
 
 
$
–
 

Allowance for loan losses to total loans

 
 
1.30
%
 
 
1.40
%
 
 
1.29
%
 
 
1.36
%

Allowance for loan losses to nonperforming loans

 
 
1651.63
%
 
 
1510.37
%
 
 
1340.24
%
 
 
n/a
 

Nonaccrual loans to total loans

 
 
0.08
%
 
 
0.09
%
 
 
0.10
%
 
 
0.00
%

Nonperforming assets to total assets

 
 
0.07
%
 
 
0.08
%
 
 
0.08
%
 
 
0.00
%

Regulatory Capital and Ratios

Common equity tier 1 capital

 
$
69,675
 
 
$
68,150
 
 
$
67,471
 
 
$
63,446
 

Tier 1 regulatory capital

 
$
69,675
 
 
$
68,150
 
 
$
67,471
 
 
$
63,446
 

Total regulatory capital

 
$
75,868
 
 
$
74,404
 
 
$
73,487
 
 
$
69,077
 

Tier 1 leverage ratio

 
 
10.83
%
 
 
10.77
%
 
 
10.90
%
 
 
10.40
%

Common equity tier 1 risk-based capital ratio

 
 
14.12
%
 
 
13.66
%
 
 
14.04
%
 
 
14.12
%

Tier 1 risk-based capital ratio

 
 
14.12
%
 
 
13.66
%
 
 
14.04
%
 
 
14.12
%

Total risk-based capital ratio

 
 
15.37
%
 
 
14.91
%
 
 
15.29
%
 
 
15.37
%

 
Three Months Ended
 

 
June 30,
 
 
March 31,
 
 
December 31,
 
 
June 30,
 

Selected Financial Ratios1

 
2020
 
 
2020
 
 
2019
 
 
2019
 

Return on average total assets

 
 
0.75
%
 
 
0.38
%
 
 
1.11
%
 
 
1.08
%

Return on average shareholders' equity

 
 
7.74
%
 
 
3.53
%
 
 
10.21
%
 
 
10.47
%

Net interest margin2

 
 
3.65
%
 
 
3.87
%
 
 
3.89
%
 
 
4.06
%

Net interest income to average total assets

 
 
3.51
%
 
 
3.71
%
 
 
3.72
%
 
 
3.92
%

Efficiency ratio

 
 
60.79
%
 
 
73.06
%
 
 
61.25
%
 
 
65.58
%

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.
2 = Net interest margin calculated on a tax equivalent yield basis. Prior periods have been updated to conform to current presentation.

 
Three Months Ended
 

 
June 30,
 
 
March 31,
 
 
December 31,
 
 
June 30,
 

Selected Average Balances

 
2020
 
 
2020
 
 
2019
 
 
2019
 

Gross loans

 
$
608,076
 
 
$
519,468
 
 
$
501,995
 
 
$
484,676
 

Investment securities

 
 
63,034
 
 
 
65,163
 
 
 
67,695
 
 
 
70,033
 

Other interest earning assets

 
 
26,044
 
 
 
24,964
 
 
 
25,572
 
 
 
37,648
 

Total interest earning assets

 
$
697,154
 
 
$
609,595
 
 
$
595,262
 
 
$
592,357
 

Total assets

 
$
721,907
 
 
$
633,623
 
 
$
620,218
 
 
$
610,453
 

Interest-bearing checking accounts

 
$
43,774
 
 
$
42,092
 
 
$
38,440
 
 
$
36,569
 

Money market deposits

 
 
152,748
 
 
 
132,363
 
 
 
113,313
 
 
 
125,529
 

Savings deposits

 
 
101,291
 
 
 
103,156
 
 
 
106,293
 
 
 
99,517
 

Time deposits

 
 
19,247
 
 
 
19,367
 
 
 
19,484
 
 
 
18,759
 

Total interest-bearing deposits

 
 
317,060
 
 
 
296,978
 
 
 
277,530
 
 
 
280,374
 

Noninterest-bearing demand deposits

 
 
326,152
 
 
 
262,416
 
 
 
269,597
 
 
 
262,225
 

Total deposits

 
$
643,212
 
 
$
559,394
 
 
$
547,127
 
 
$
542,599
 

Borrowings

 
$
3,736
 
 
$
–
 
 
$
–
 
 
$
–
 

Shareholders' equity

 
$
69,982
 
 
$
69,006
 
 
$
67,381
 
 
$
62,740
 

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)

 
Six Months Ended
 

 
June 30,
 
 
June 30,
 

Selected Financial Ratios

 
2020
 
 
2019
 

Return on average total assets

 
 
0.58
%
 
 
1.11
%

Return on average shareholders' equity

 
 
5.65
%
 
 
11.19
%

Net interest margin2

 
 
3.75
%
 
 
4.09
%

Net interest income to average total assets

 
 
3.61
%
 
 
3.96
%

Efficiency ratio

 
 
66.75
%
 
 
64.65
%

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.
2 = Net interest margin calculated on a tax equivalent yield basis. Prior periods have been updated to conform to current presentation.

 
Six Months Ended
 

 
June 30,
 
 
June 30,
 

Selected Average Balances

 
2020
 
 
2019
 

Gross loans

 
$
563,772
 
 
$
486,248
 

Investment securities

 
 
64,099
 
 
 
69,794
 

Other interest earning assets

 
 
25,504
 
 
 
45,750
 

Total interest earning assets

 
$
653,375
 
 
$
601,792
 

Total assets

 
$
677,765
 
 
$
619,337
 

Interest-bearing checking accounts

 
$
42,933
 
 
$
35,425
 

Money market deposits

 
 
142,555
 
 
 
126,638
 

Savings deposits

 
 
102,224
 
 
 
103,316
 

Time deposits

 
 
19,307
 
 
 
18,431
 

Total interest-bearing deposits

 
 
307,019
 
 
 
283,811
 

Noninterest-bearing demand deposits

 
 
294,284
 
 
 
269,053
 

Total deposits

 
$
601,303
 
 
$
552,864
 

Borrowings

 
$
1,869
 
 
$
–
 

Shareholders' equity

 
$
69,494
 
 
$
61,520
 

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)

June 30, 2020:

 
Original Loan-to-Value Ratio
 

 
Average
 
 
Median
 
 
Maximum
 

Construction/land

 
 
25.88
%
 
 
48.16
%
 
 
56.23
%

Residential 1 to 4 units

 
 
53.20
%
 
 
46.46
%
 
 
78.75
%

Home equity lines of credit

 
 
23.78
%
 
 
46.29
%
 
 
75.00
%

Multifamily

 
 
43.14
%
 
 
46.29
%
 
 
70.72
%

Owner-occupied CRE

 
 
48.42
%
 
 
47.71
%
 
 
81.60
%

Investor CRE

 
 
42.24
%
 
 
47.94
%
 
 
78.32
%

June 30, 2020:

 
Original Loan-to-Value Ratio
 

 
Under 50%
 
 
50%-60%
 
 
60%-70%
 
 
70%-75%
 
 
75%-80%
 
 
Over 80%
 
 
Total
 

Construction/land

 
$
12,436
 
 
$
3,936
 
 
$
–
 
 
$
–
 
 
$
–
 
 
$
–
 
 
$
16,372
 

Residential 1 to 4 units

 
 
46,458
 
 
 
36,143
 
 
 
26,871
 
 
 
11,190
 
 
 
6,530
 
 
 
–
 
 
 
127,192
 

Home equity lines of credit

 
 
5,099
 
 
 
936
 
 
 
211
 
 
 
384
 
 
 
–
 
 
 
–
 
 
 
6,630
 

Multifamily

 
 
28,595
 
 
 
21,036
 
 
 
20,871
 
 
 
1,293
 
 
 
–
 
 
 
–
 
 
 
71,795
 

Owner-occupied CRE

 
 
28,773
 
 
 
19,798
 
 
 
15,276
 
 
 
5,985
 
 
 
181
 
 
 
465
 
 
 
70,478
 

Investor CRE

 
 
104,294
 
 
 
43,886
 
 
 
17,021
 
 
 
3,845
 
 
 
3,173
 
 
 
–
 
 
 
172,219
 

 
$
225,655
 
 
$
125,735
 
 
$
80,250
 
 
$
22,697
 
 
$
9,884
 
 
$
465
 
 
$
464,686
 

June 30, 2020:

 
Commercial Real Estate Loans
 

 
Investor
 
 
Owner-Occupied
 

Office

 
$
28,717
 
 
$
21,298
 

Industrial and warehouse

 
 
28,203
 
 
 
21,619
 

Hotels and motels

 
 
27,609
 
 
 
–
 

Retail

 
 
21,901
 
 
 
6,865
 

Mini storage

 
 
13,486
 
 
 
–
 

Health care

 
 
12,731
 
 
 
6,198
 

Mixed use

 
 
32,557
 
 
 
5,005
 

Other

 
 
7,015
 
 
 
9,493
 

 
 
172,219
 
 
 
70,478
 

Multifamily residential

 
 
71,795
 
 
 
–
 

Single-family residential

 
 
32,772
 
 
 
101,050
 

 
$
276,786
 
 
$
171,528
 

June 30, 2020:

 
Commercial and
 

 
Industrial Loans
 

Health care

 
$
24,484
 

Agricultural

 
 
22,269
 

Manufacturing

 
 
21,679
 

Wholesale trade

 
 
15,564
 

Construction

 
 
15,538
 

Real estate rental/leasing

 
 
10,548
 

Professional services

 
 
10,009
 

Retail trade

 
 
5,758
 

Other

 
 
33,646
 

 
$
159,495
 

SOURCE: 1st Capital Bank

ReleaseID: 599677

AUSTIN, TX / ACCESSWIRE / July 30, 2020 / Apollo Endosurgery, Inc. ("Apollo") (NASDAQ:APEN), a global leader in less invasive medical devices for gastrointestinal and bariatric procedures, today announced that the Company is scheduled to release its financial results for the second quarter ended June 30, 2020 on Tuesday, August 4, 2020, after the U.S. stock markets close.

Apollo will hold a conference call on Tuesday, August 4, 2020 at 3:30 p.m. CT / 4:30 p.m. ET to discuss the results. To join the call by telephone, please dial +1-862-298-0970. A live webcast of the conference call will be available online from the investor relations page of the Company's corporate website at www.apolloendo.com.

A replay of the webcast will be made available on Apollo's website, www.apolloendo.com, shortly after completion of the call.

About Apollo Endosurgery, Inc.

Apollo Endosurgery, Inc. is a medical technology company focused on less invasive therapies to treat various gastrointestinal conditions, ranging from gastrointestinal complications to the interventional treatment of obesity. Apollo's device-based therapies are an alternative to invasive surgical procedures, thus lowering complication rates and reducing total healthcare costs. Apollo's products are offered in over 75 countries today and include the OverStitch™ Endoscopic Suturing System, the OverStitch Sx™ Endoscopic Suturing System, and the ORBERA® Intragastric Balloon.

Apollo's common stock is traded on Nasdaq Global Market under the symbol "APEN". For more information regarding Apollo Endosurgery, go to: www.apolloendo.com.

Contacts:

Apollo Endosurgery, Inc.
Stefanie Cavanaugh, 512-279-5100
investor-relations@apolloendo.com

Darrow Associates Investor Relations
Matt Kreps, 214-597-8200
mkreps@darrowir.com

SOURCE: Apollo Endosurgery, Inc.

ReleaseID: 599687

SAN LEANDRO, CA / ACCESSWIRE / July 30, 2020 / Energy Recovery Inc. (NASDAQ:ERII) ("Energy Recovery," "we," "our," or the "Company"), a leader in pressure energy technology for industrial fluid flows, today announced its financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Highlights:

Product revenue of $19.3 million, flat year-over-year and a sign of stability of the desalination industry in a period of global uncertainty
License and development revenue of $24.4 million related to the termination of the license agreement between the Company and Schlumberger Technology Corporation ("Schlumberger")
Product gross margin of 66.0%, a decrease of 550 basis points year-over-year, of which 370 basis points are due to COVID-19 temporary reductions in manufacturing
Net income of $16.9 million, or diluted earnings per share of $0.30, an increase of $0.23 year-over-year, including $17.2 million, net of tax related to the termination of the license agreement between the Company and Schlumberger and the impairment of related long-lived assets.

Year-to-Date 2020 Highlights:

Product revenue of $38.3 million, an increase of 8% year-over-year
License and development revenue of $26.9 million of which $24.4 million is related to the termination of the license agreement between the Company and Schlumberger
Product gross margin of 68.0%, a decrease of 250 basis points year-over-year
Net income of $17.5 million, or diluted earnings per share of $0.31, an increase of $0.20 year-over-year, including $17.2 million, net of tax related to the termination of the license agreement between the Company and Schlumberger and the impairment of related long-lived assets.

"Our performance this quarter demonstrates the resiliency of our business and the capabilities of our team to adapt to unprecedented global circumstances. Despite these challenges, the continued growth of mega SWRO projects and conversion of thermal desalination facilities to SWRO is driving increased demand for our technology and concurrent growth in our revenue," said Bob Mao, Chairman of the Board, President and CEO of Energy Recovery.

Mr. Mao continued, "I am pleased with these results and continue to expect 20 to 25 percent year-over-year annual growth in our water segment. In addition, we remain focused on generating near-term shareholder value from our VorTeq technology. We are in a good place following our simulated frac test with Liberty Oilfield Services in June 2020, and we are approaching the challenges that remain, including completing two to three live well beta tests, in a disciplined manner. As with any R&D initiative, we will not hesitate to shelve or stop spending on efforts that do not meet the technical readiness, profit and ROI objectives that we have set."

COVID-19 Pandemic

In early April 2020, following the Company's decision to temporarily suspend manufacturing activities at its San Leandro headquarters the last two weeks of March, the Company commenced limited manufacturing in accordance with federal, state and local regulations and guidance with enhanced safety measures in place, including staggered shifts to ensure social distancing between workers, personal safety equipment for each worker, including masks and gloves, cleanings and disinfections between and during shifts, and starting in July weekly testing of employees working on site. The Company resumed full production in May 2020 with enhanced safety measures remaining in place to contain the spread of COVID-19 and to first of all ensure the health and safety of its employees, as well as to protect Energy Recovery's business in the future.

While any effect of the pandemic has had only a limited effect on the Company's financials to date, the Company's gross margin for the first half of 2020 was negatively affected due to reduced production output while the plant was underutilized. Based on the Company's current rate of production, the Company believes that it will be able to fulfill our existing delivery obligations in fiscal year 2020 and beyond.

Second Quarter 2020

Revenues

For the second quarter ended June 30, 2020, the Company generated total revenue of $43.6 million, an increase of $20.8 million, or 91%, compared to $22.8 million in the second quarter ended June 30, 2019.

The Water segment generated total product revenue of $19.3 million for the second quarter ended June 30, 2020, compared to $19.2 million for the second quarter ended June 30, 2019. This increase was due primarily to higher Mega-Project Development ("MPD") and Aftermarket ("AM") shipments offset by lower Original Equipment Manufacturer ("OEM") shipments. We view this stability in the water segment as a real sign of strength as Energy Recovery, and the overall desalination industry, finds its way through this pandemic. MPD has been largely unaffected by global events and continues to be the driver of growth in the desalination industry, and for Energy Recovery.

The Oil & Gas ("O&G") segment generated total revenue of $24.4 million for the second quarter ended June 30, 2020, an increase of $20.8 million, or 582%, compared to $3.6 million for the second quarter ended June 30, 2019. During the three months ended June 30, 2020, the Company and Schlumberger entered into an agreement to terminate the VorTeq License Agreement effective June 1, 2020. As there were no future performance obligations to be recognized under the VorTeq License Agreement, the Company recognized in full the remaining deferred revenue balance of $24.4 million during the quarter. There will be no license and development revenue recognized in future quarters in relation to the VorTeq License Agreement. As a result of the termination of the VorTeq License Agreement, the Company is now free to market the VorTeq™ technology to all companies in the broader pressure pumping market.

Product Gross Margin

For the second quarter ended June 30, 2020, product gross margin was 66.0%, a decrease of 550 basis points from 71.5% in the second quarter ended June 30, 2019. This decrease was due primarily to an increase of $0.7 million, or 370 basis points, in cost of product revenue related to the reduced utilization of the Company's manufacturing facilities during the second quarter prior to the Company's return to full manufacturing in May 2020, as well as the increased overhead costs of the Company's Tracy, California facility. Based on current production levels, the Company does not at this time expect to continue to experience decreases in the product gross margin due to the pandemic.

Operating Expenses

For the second quarter ended June 30, 2020, operating expenses were $15.8 million, an increase of $2.5 million, or 19%, compared to $13.3 million for the second quarter ended June 30, 2019. This increase was due primarily to $2.3 million in impairment expenses of certain long-lived assets that were directly related to the VorTeq License Agreement, continued investment in research and development including O&G testing activities, offset by lower personnel-related costs and travel expenses.

COVID-19 did not have a material effect on operating expenditures during the three months ended June 30, 2020.

Bottom Line Summary

To summarize the Company's financial performance, on a quarterly basis, the Company reported a net income of $16.9 million, or $0.30 per diluted share for the second quarter ended June 30, 2020, compared to a net income of $3.7 million, or $0.07 per diluted share for the second quarter ended June 30, 2019.

Cash Flow Highlights

The Company finished the second quarter ended June 30, 2020 with cash and cash equivalents of $63.0 million, and short-term and long-term investments of $33.9 million, which represents a combined total of $96.9 million.

Forward-Looking Statements

Certain matters discussed in this press release and on the conference call are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the Company's belief that there will be increased demand for our technology resulting in growth in our revenue; the Company will be able to generate near-term shareholder value from our VorTeq technology; the Company will be able to monetize the VorTeq technology; the Company we will be able to fulfill our existing delivery obligations in fiscal year 2020 and beyond; and at this time, we will not continue to experience decreases in the product gross margin due to the COVID-19 pandemic. These forward-looking statements are based on information currently available to us and on management's beliefs, assumptions, estimates, or projections and are not guarantees of future events or results. Potential risks and uncertainties include the Company's ability to achieve the milestones under the VorTeq license agreement, any other factors that may have been discussed herein regarding the risks and uncertainties of the Company's business, and the risks discussed under "Risk Factors" in the Company's Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") for the year ended December 31, 2019 as well as other reports filed by the Company with the SEC from time to time. Because such forward-looking statements involve risks and uncertainties, the Company's actual results may differ materially from the predictions in these forward-looking statements. All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements.

Conference Call to Discuss Second Quarter 2020 Financial Results

LIVE CONFERENCE CALL:
Thursday, July 30, 2020, 2:00 PM PDT / 5:00 PM EDT
Listen-only, US / Canada Toll-Free: +1 (877) 709-8150
Listen-only, Local / International Toll: +1 (201) 689-8354
Access code: 13704670

CONFERENCE CALL REPLAY:
Expiration: Sunday, August 30, 2020
US / Canada Toll-Free: +1 (877) 660-6853
Local / International Toll: +1 (201) 612-7415
Access code: 13704670

Investors may also access the live call or the replay over the internet at ir.energyrecovery.com. The replay will be available approximately three hours after the live call concludes.

Disclosure Information

Energy Recovery uses the investor relations section on its website as means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Energy Recovery's investor relations website in addition to following Energy Recovery's press releases, SEC filings, and public conference calls and webcasts.

About Energy Recovery Inc.

For more than 20 years, Energy Recovery, Inc. (NASDAQ: ERII) has created technologies that solve complex challenges in industrial fluid-flow markets. We design and manufacture solutions that reduce waste, improve operational efficiencies, and lower the production costs of clean water and oil and gas. What began as a game-changing invention for water desalination has grown into a global business delivering solutions that enable more affordable access to these critical resources. Headquartered in the San Francisco Bay Area, Energy Recovery has manufacturing, research and development facilities across California and Texas. In addition, our worldwide sales and technical service organization provides on-site support for our line of water solutions. For more information, please visit www.energyrecovery.com.

Contact

Investor Relations
ir@energyrecovery.com
(281) 962-8105

ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 
June 30,
2020
 
 
December 31,
2019
 

 
(In thousands)
 

ASSETS

Current assets:

Cash and cash equivalents

 
$ 
62,970
 
 
$ 
26,387
 

Short-term investments

 
 
28,409
 
 
 
58,736
 

Accounts receivable, net

 
 
12,816
 
 
 
12,979
 

Inventories, net

 
 
9,915
 
 
 
10,317
 

Prepaid expenses and other current assets

 
 
4,987
 
 
 
4,548
 

Total current assets

 
 
119,097
 
 
 
112,967
 

Long-term investments

 
 
5,510
 
 
 
15,419
 

Deferred tax assets, non-current

 
 
12,231
 
 
 
16,897
 

Property and equipment, net

 
 
18,838
 
 
 
18,843
 

Operating lease, right of use asset

 
 
16,810
 
 
 
11,195
 

Goodwill

 
 
12,790
 
 
 
12,790
 

Other intangible assets, net

 
 
57
 
 
 
65
 

Other assets, non-current

 
 
639
 
 
 
598
 

Total assets

 
$ 
185,972
 
 
$ 
188,774
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

 
$ 
1,860
 
 
$ 
1,192
 

Accrued expenses and other current liabilities

 
 
6,771
 
 
 
9,869
 

Lease liabilities

 
 
1,196
 
 
 
1,023
 

Contract liabilities

 
 
980
 
 
 
15,746
 

Total current liabilities

 
 
10,807
 
 
 
27,830
 

Lease liabilities, non-current

 
 
17,155
 
 
 
11,533
 

Contract liabilities, non-current

 
 
97
 
 
 
13,120
 

Other non-current liabilities

 
 
496
 
 
 
278
 

Total liabilities

 
 
28,555
 
 
 
52,761
 

Commitments and contingencies (Note 8)

Stockholders' equity:

Common stock

 
 
61
 
 
 
61
 

Additional paid-in capital

 
 
173,729
 
 
 
170,028
 

Accumulated other comprehensive income (loss)

 
 
119
 
 
 
(37
)

Treasury stock

 
 
(30,486
)
 
 
(30,486
)

Accumulated earnings (deficit)

 
 
13,994
 
 
 
(3,553
)

Total stockholders' equity

 
 
157,417
 
 
 
136,013
 

Total liabilities and stockholders' equity

 
$ 
185,972
 
 
$ 
188,774
 

ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 
Three Months Ended June 30,
 
 
Six Months Ended June 30,
 

 
2020
 
 
2019
 
 
2020
 
 
2019
 

 
(In thousands, except per share data)
 

Product revenue

 
$ 
19,256
 
 
$ 
19,226
 
 
$ 
38,257
 
 
$ 
35,298
 

Product cost of revenue

 
 
6,549
 
 
 
5,483
 
 
 
12,233
 
 
 
10,418
 

Product gross profit

 
 
12,707
 
 
 
13,743
 
 
 
26,024
 
 
 
24,880
 

License and development revenue

 
 
24,352
 
 
 
3,570
 
 
 
26,895
 
 
 
7,293
 

Operating expenses:

General and administrative

 
 
5,599
 
 
 
5,500
 
 
 
12,480
 
 
 
11,079
 

Sales and marketing

 
 
1,497
 
 
 
2,181
 
 
 
3,635
 
 
 
4,343
 

Research and development

 
 
6,352
 
 
 
5,480
 
 
 
13,061
 
 
 
9,734
 

Amortization of intangible assets

 
 
4
 
 
 
157
 
 
 
8
 
 
 
313
 

Impairment of long-lived assets

 
 
2,332
 
 
 
–
 
 
 
2,332
 
 
 
–
 

Total operating expenses

 
 
15,784
 
 
 
13,318
 
 
 
31,516
 
 
 
25,469
 

Income from operations

 
 
21,275
 
 
 
3,995
 
 
 
21,403
 
 
 
6,704
 

Other income (expense):

Interest income

 
 
255
 
 
 
528
 
 
 
675
 
 
 
1,051
 

Other non-operating expense, net

 
 
(18
)
 
 
(48
)
 
 
(30
)
 
 
(72
)

Total other income, net

 
 
237
 
 
 
480
 
 
 
645
 
 
 
979
 

Income before income taxes

 
 
21,512
 
 
 
4,475
 
 
 
22,048
 
 
 
7,683
 

Provision for income taxes

 
 
4,586
 
 
 
756
 
 
 
4,501
 
 
 
1,310
 

Net income

 
$ 
16,926
 
 
$ 
3,719
 
 
$ 
17,547
 
 
$ 
6,373
 

Earnings per share:

Basic

 
$ 
0.30
 
 
$ 
0.07
 
 
$ 
0.32
 
 
$ 
0.12
 

Diluted

 
$ 
0.30
 
 
$ 
0.07
 
 
$ 
0.31
 
 
$ 
0.11
 

Number of shares used in per share calculations:

Basic

 
 
55,614
 
 
 
54,681
 
 
 
55,513
 
 
 
54,400
 

Diluted

 
 
56,371
 
 
 
56,110
 
 
 
56,438
 
 
 
55,764
 

ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 
Six Months Ended June 30,
 

 
2020
 
 
2019
 

 
(In thousands)
 

Cash flows from operating activities:

Net income

 
$ 
17,547
 
 
$ 
6,373
 

Adjustments to reconcile net income to cash (used in) provided by operating activities

Stock-based compensation

 
 
2,595
 
 
 
3,071
 

Depreciation and amortization

 
 
2,751
 
 
 
1,952
 

Amortization (accretion) of premiums and discounts on investments

 
 
215
 
 
 
(30
)

Deferred income taxes

 
 
4,666
 
 
 
1,285
 

Provision for warranty claims

 
 
173
 
 
 
242
 

Impairment of long-lived assets

 
 
2,332
 
 
 
–
 

Other non-cash adjustments

 
 
55
 
 
 
259
 

Changes in operating assets and liabilities:

Accounts receivable, net

 
 
101
 
 
 
(4,986
)

Contract assets

 
 
(198
)
 
 
2,147
 

Inventories, net

 
 
260
 
 
 
(725
)

Prepaid and other assets

 
 
(278
)
 
 
1,026
 

Accounts payable

 
 
1,285
 
 
 
14
 

Accrued expenses and other liabilities

 
 
(4,012
)
 
 
(2,942
)

Income taxes

 
 
3
 
 
 
47
 

Contract liabilities

 
 
(27,789
)
 
 
(7,730
)

Net cash (used in) provided by operating activities

 
 
(294
)
 
 
3
 

Cash flows from investing activities:

Sales of marketable securities

 
 
9,767
 
 
 
–
 

Maturities of marketable securities

 
 
43,286
 
 
 
47,993
 

Purchases of marketable securities

 
 
(12,855
)
 
 
(46,549
)

Capital expenditures

 
 
(4,410
)
 
 
(4,685
)

Net cash provided by (used in) investing activities

 
 
35,788
 
 
 
(3,241
)

Cash flows from financing activities:

Net proceeds from issuance of common stock

 
 
1,128
 
 
 
4,581
 

Tax payment for employee shares withheld

 
 
(23
)
 
 
(62
)

Net cash provided by financing activities

 
 
1,105
 
 
 
4,519
 

Effect of exchange rate differences on cash and cash equivalents

 
 
(15
)
 
 
–
 

Net change in cash, cash equivalents and restricted cash

 
 
36,584
 
 
 
1,281
 

Cash, cash equivalents and restricted cash, beginning of year

 
 
26,488
 
 
 
22,138
 

Cash, cash equivalents and restricted cash, end of period

 
$ 
63,072
 
 
$ 
23,419
 

ENERGY RECOVERY, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)

 
Three Months Ended June 30, 2020
 
 
Three Months Ended June 30, 2019
 

 
Water
 
 
Oil & Gas
 
 
Corporate
 
 
Total
 
 
Water
 
 
Oil & Gas
 
 
Corporate
 
 
Total
 

 
(In thousands)
 

Product revenue

 
$ 
19,256
 
 
$ 
–
 
 
$ 
–
 
 
$ 
19,256
 
 
$ 
19,226
 
 
$ 
–
 
 
$ 
–
 
 
$ 
19,226
 

Product cost of revenue

 
 
6,549
 
 
 
–
 
 
 
–
 
 
 
6,549
 
 
 
5,483
 
 
 
–
 
 
 
–
 
 
 
5,483
 

Product gross profit

 
 
12,707
 
 
 
–
 
 
 
–
 
 
 
12,707
 
 
 
13,743
 
 
 
–
 
 
 
–
 
 
 
13,743
 

License and development revenue

 
 
–
 
 
 
24,352
 
 
 
–
 
 
 
24,352
 
 
 
–
 
 
 
3,570
 
 
 
–
 
 
 
3,570
 

Operating expenses

General and administrative

 
 
456
 
 
 
421
 
 
 
4,722
 
 
 
5,599
 
 
 
563
 
 
 
412
 
 
 
4,525
 
 
 
5,500
 

Sales and marketing

 
 
1,124
 
 
 
18
 
 
 
355
 
 
 
1,497
 
 
 
1,559
 
 
 
319
 
 
 
303
 
 
 
2,181
 

Research and development

 
 
960
 
 
 
4,517
 
 
 
875
 
 
 
6,352
 
 
 
1,103
 
 
 
4,305
 
 
 
72
 
 
 
5,480
 

Amortization of intangible assets

 
 
4
 
 
 
–
 
 
 
–
 
 
 
4
 
 
 
157
 
 
 
–
 
 
 
–
 
 
 
157
 

Impairment of long-lived assets

 
 
–
 
 
 
2,332
 
 
 
–
 
 
 
2,332
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Total operating expenses

 
 
2,544
 
 
 
7,288
 
 
 
5,952
 
 
 
15,784
 
 
 
3,382
 
 
 
5,036
 
 
 
4,900
 
 
 
13,318
 

Operating income (loss)

 
$ 
10,163
 
 
$ 
17,064
 
 
$ 
(5,952
)
 
 
21,275
 
 
$ 
10,361
 
 
$ 
(1,466
)
 
$ 
(4,900
)
 
 
3,995
 

Other income, net

 
 
 
 
 
 
 
 
 
 
 
 
 
 
237
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
480
 

Income before income taxes

 
 
 
 
 
 
 
 
 
 
 
 
 
$ 
21,512
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 
4,475
 

 
Six Months Ended June 30, 2020
 
 
Six Months Ended June 30, 2019
 

 
Water
 
 
Oil & Gas
 
 
Corporate
 
 
Total
 
 
Water
 
 
Oil & Gas
 
 
Corporate
 
 
Total
 

 
(In thousands)
 

Product revenue

 
$ 
38,257
 
 
$ 
–
 
 
$ 
–
 
 
$ 
38,257
 
 
$ 
35,194
 
 
$ 
104
 
 
$ 
–
 
 
$ 
35,298
 

Product cost of revenue

 
 
12,233
 
 
 
–
 
 
 
–
 
 
 
12,233
 
 
 
10,230
 
 
 
188
 
 
 
–
 
 
 
10,418
 

Product gross profit (loss)

 
 
26,024
 
 
 
–
 
 
 
–
 
 
 
26,024
 
 
 
24,964
 
 
 
(84
)
 
 
–
 
 
 
24,880
 

License and development revenue

 
 
–
 
 
 
26,895
 
 
 
–
 
 
 
26,895
 
 
 
–
 
 
 
7,293
 
 
 
–
 
 
 
7,293
 

Operating expenses

General and administrative

 
 
861
 
 
 
1,162
 
 
 
10,457
 
 
 
12,480
 
 
 
1,097
 
 
 
776
 
 
 
9,206
 
 
 
11,079
 

Sales and marketing

 
 
2,800
 
 
 
76
 
 
 
759
 
 
 
3,635
 
 
 
3,208
 
 
 
582
 
 
 
553
 
 
 
4,343
 

Research and development

 
 
1,862
 
 
 
9,764
 
 
 
1,435
 
 
 
13,061
 
 
 
1,908
 
 
 
7,668
 
 
 
158
 
 
 
9,734
 

Amortization of intangible assets

 
 
8
 
 
 
–
 
 
 
–
 
 
 
8
 
 
 
313
 
 
 
–
 
 
 
–
 
 
 
313
 

Impairment of long-lived assets

 
 
–
 
 
 
2,332
 
 
 
–
 
 
 
2,332
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Total operating expenses

 
 
5,531
 
 
 
13,334
 
 
 
12,651
 
 
 
31,516
 
 
 
6,526
 
 
 
9,026
 
 
 
9,917
 
 
 
25,469
 

Operating income (loss)

 
$ 
20,493
 
 
$ 
13,561
 
 
$ 
(12,651
)
 
 
21,403
 
 
$ 
18,438
 
 
$ 
(1,817
)
 
$ 
(9,917
)
 
 
6,704
 

Other income, net

 
 
 
 
 
 
 
 
 
 
 
 
 
 
645
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
979
 

Income before income taxes

 
 
 
 
 
 
 
 
 
 
 
 
 
$ 
22,048
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 
7,683
 

SOURCE: Energy Recovery Inc.

ReleaseID: 599662

REDWOOD CITY, CA / ACCESSWIRE / July 30, 2020 / Avinger, Inc. (NASDAQ:AVGR), a commercial-stage medical device company marketing the first and only intravascular image-guided, catheter-based system for diagnosis and treatment of patients with Peripheral Artery Disease (PAD), today reported results for the second quarter ended June 30, 2020.

Second Quarter and Recent Highlights

Reported total revenue of $1.5 million, a decrease from the prior year and previous quarter due to the effects of the COVID-19 pandemic
Reduced operating expenses sequentially by $2.0 million, or 34%, through both temporary and permanent cost reductions implemented as part of Avinger's COVID-19 response; realized a net loss improvement of $1.9 million, or 32%, compared to the first quarter
Launched 2 new customer accounts late in the second quarter and have already launched 5 new accounts in the third quarter, as business activity improves with the reinstatement of elective procedures in many communities
Filed a 510(K) submission for Ocelaris, Avinger's next generation CTO device
Progressed development of the next generation L300 imaging console for future 510(k) submission
Strengthened the balance sheet through financing activities that increased cash to $16.6 million at June 30, 2020

Jeff Soinski, Avinger's President and CEO, commented, "The Avinger team pulled together to deliver positive results during a challenging second quarter. Following a sharp decline in treatment activity during March and April, business increased steadily throughout May and June, as more states began to loosen restrictions on elective procedures. Our cost controls in response to the pandemic were very effective, driving a $2 million reduction in operating expenses compared to the first quarter and allowing us to significantly improve our bottom-line performance. We also strengthened our balance sheet through our financing activities in the second quarter, ending the quarter with $16.6 million in cash.

"In addition, we continued to advance a number of important strategic programs to drive future growth. In May, we submitted a 510(k) application for U.S. pre-marketing clearance of our Ocelaris image-guided CTO crossing catheter. We also made significant progress in the development of our new L300 imaging console, which will provide our proprietary imaging capabilities in a much smaller form factor and at a lower cost. On the clinical front, completion of our INSIGHT IDE study remains a priority as it supports an anticipated future 510(k) filing for an expanded indication of plaque removal from in-stent restenosis (ISR) with the Pantheris catheter," said Soinski.

Second Quarter 2020 Financial Results

Total revenue was $1.5 million for the second quarter of 2020, a decrease of 37% from the second quarter of 2019 and 35% from the first quarter of 2020, each of which had approximately $2.3 million in revenues. The decline in revenue reflected the effects of the COVID-19 pandemic, which began to impact our business in March 2020.

Gross margin for the second quarter of 2020 was 24%, compared to 31% in the second quarter of 2019 and 22% in the first quarter of 2020. Operating expenses for the second quarter of 2020 were $4.0 million, compared with $5.4 million in the second quarter of 2019 and $6.0 million in the first quarter of 2020. The $2.0 million sequential decline in operating expenses reflected both temporary and permanent cost savings from the company's COVID-19 response plan. Operating expenses are expected to increase in the third quarter of 2020.

Net loss and comprehensive loss for the second quarter of 2020 were $4.0 million, compared with $4.7 million in the second quarter of 2019 and $5.9 million in the first quarter of 2020.

Adjusted EBITDA, as defined under non-GAAP measures in this press release, of $2.9 million improved by 26% compared with a loss of $4.0 million in the second quarter of 2019, and improved by 39% sequentially compared with a loss of $4.8 million in the first quarter of 2020., and reflected the lowest adjusted EBITDA loss for Avinger.

For more information regarding non-GAAP financial measures discussed in this press release, please see "Non-GAAP Financial Measures" below, as well as the reconciliation of GAAP to non-GAAP measures provided in the tables below.

Balance Sheet

Cash and cash equivalents totaled $16.6 million as of June 30, 2020, compared with $9.9 million as of March 31, 2020. In the second quarter of 2020, Avinger announced approximately $9.0 million in gross proceeds from underwritten public offerings and the receipt of $2.3 million pursuant to the Paycheck Protection Program. In July 2020, Avinger received $0.8 million in gross proceeds from the closing of the over-allotment option.

Conference Call

Avinger will hold a conference call today, July 30, 2020 at 4:30pm ET to discuss its second quarter 2020 financial results.

Individuals interested in listening to the conference call may do so by dialing +1-862-298-0844. To listen to a live webcast, please visit http://www.avinger.com and select Investor Relations. A webcast replay of the call will be available on Avinger's website following completion of the call at www.avinger.com.

About Avinger, Inc.

Avinger is a commercial-stage medical device company that designs and develops the first and only image-guided, catheter-based system for the diagnosis and treatment of patients with Peripheral Artery Disease (PAD). PAD is estimated to affect over 12 million people in the U.S. and over 200 million worldwide. Avinger is dedicated to radically changing the way vascular disease is treated through its Lumivascular platform, which currently consists of the Lightbox imaging console, the Ocelot family of chronic total occlusion (CTO) catheters, and the Pantheris® family of atherectomy devices. Avinger is based in Redwood City, California. For more information, please visit www.avinger.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our future performance and our anticipated 510(k) filing for an expanded in-stent restenosis (ISR) label for Pantheris. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include our dependency on a limited number of products; the resource requirements related to Pantheris, Ocelaris and our Lightbox imaging console; the outcome of clinical trial results; as well as the other risks described in the section entitled "Risk Factors" and elsewhere in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 6, 2020, and subsequent Form 10-Qs. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. Avinger disclaims any obligation to update these forward-looking statements.

Non-GAAP Financial Measures

Avinger has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The Company uses these non-GAAP financial measures internally in analyzing its financial results and believes that the use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing the Company's financial results with other companies in its industry, many of which present similar non-GAAP financial measures.

The presentation of these non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's financial statements prepared in accordance with GAAP. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Adjusted EBITDA. Avinger defines Adjusted EBITDA as net loss and comprehensive loss plus interest expense, net, plus other income, net, plus stock-based compensation expense plus certain inventory charges plus certain depreciation and amortization expense. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures as analytical tools. Furthermore, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and the components that Avinger excludes in its calculation of non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP results of operations. Avinger compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. In the future, the Company may also exclude other non-recurring expenses and other expenses that do not reflect the Company's core business operating results.

Investor Contact:

Mark Weinswig
Chief Financial Officer
Avinger, Inc.
(650) 241-7916
ir@avinger.com

Matt Kreps
Darrow Associates Investor Relations
(214) 597-8200
mkreps@darrowir.com

Condensed Statements of Operations and Comprehensive Loss
(in thousands) (unaudited)

 
For the Three Months Ended
 
 
Six Months Ended
 

 
June 30,
 
 
March 31,
 
 
June 30,
 
 
June 30,
 
 
June 30,
 

 
2020
 
 
2020
 
 
2019
 
 
2020
 
 
2019
 

Revenues

 
$ 
1,466
 
 
$ 
2,261
 
 
$ 
2,319
 
 
$ 
3,727
 
 
$ 
4,159
 

Cost of revenues

 
 
1,107
 
 
 
1,760
 
 
 
1,599
 
 
 
2,867
 
 
 
3,066
 

Gross profit

 
 
359
 
 
 
501
 
 
 
720
 
 
 
860
 
 
 
1,093
 

Operating expenses:

Research and development

 
 
1,297
 
 
 
1,594
 
 
 
1,335
 
 
 
2,891
 
 
 
2,749
 

Selling, general, and administrative

 
 
2,654
 
 
 
4,386
 
 
 
4,091
 
 
 
7,040
 
 
 
8,077
 

Total operating expenses

 
 
3,951
 
 
 
5,980
 
 
 
5,426
 
 
 
9,931
 
 
 
10,826
 

Loss from operations

 
 
(3,592
)
 
 
(5,479
)
 
 
(4,706
)
 
 
(9,071
)
 
 
(9,733
)

Interest income

 
 
2
 
 
 
30
 
 
 
90
 
 
 
32
 
 
 
172
 

Interest expense

 
 
(414
)
 
 
(398
)
 
 
(364
)
 
 
(812
)
 
 
(714
)

Other income (expense), net

 
 
4
 
 
 
(4
)
 
 
329
 
 
 
–
 
 
 
569
 

Net loss and comprehensive loss

 
 
(4,000
)
 
 
(5,851
)
 
 
(4,651
)
 
 
(9,851
)
 
 
(9,706
)

Accretion of preferred stock dividends

 
 
(967
)
 
 
(967
)
 
 
(895
)
 
 
(1,934
)
 
 
(1,790
)

Net loss attributable to common stockholders

 
$ 
(4,967
)
 
$ 
(6,818
)
 
$ 
(5,546
)
 
$ 
(11,785
)
 
$ 
(11,496
)

Net loss per share attributable to common stockholders

basic and diluted

 
$ 
(0.18
)
 
$ 
(0.47
)
 
$ 
(0.87
)
 
$ 
(0.56
)
 
$ 
(2.16
)

Weighted average common shares used to compute

net loss per share, basic and diluted

 
 
27,310
 
 
 
14,616
 
 
 
6,377
 
 
 
20,963
 
 
 
5,319
 

Condensed Balance Sheets
(in thousands, except per share amounts) (unaudited)

 
June 30,
 
 
December 31,
 

Assets

 
2020
 
 
2019
 

Current assets:

Cash and cash equivalents

 
$ 
16,550
 
 
$ 
10,943
 

Accounts receivable, net of allowance for doubtful accounts of $19

at both June 30, 2020 and December 31, 2019

 
 
1,076
 
 
 
1,458
 

Inventories

 
 
4,157
 
 
 
3,912
 

Prepaid expenses and other current assets

 
 
899
 
 
 
311
 

Total current assets

 
 
22,682
 
 
 
16,624
 

Right of use asset

 
 
4,468
 
 
 
4,856
 

Property and equipment, net

 
 
1,140
 
 
 
1,661
 

Other assets

 
 
594
 
 
 
684
 

Total assets

 
$ 
28,884
 
 
$ 
23,825
 

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

 
$ 
924
 
 
$ 
663
 

Accrued compensation

 
 
1,151
 
 
 
1,782
 

Series A preferred stock dividends payable

 
 
1,934
 
 
 
–
 

Accrued expenses and other current liabilities

 
 
730
 
 
 
654
 

Leasehold liability, current portion

 
 
765
 
 
 
722
 

Borrowings, current portion

 
 
10,808
 
 
 
8,967
 

Total current liabilities

 
 
16,312
 
 
 
12,788
 

Leasehold liability, long-term portion

 
 
3,703
 
 
 
4,135
 

Borrowings, long-term portion

 
 
1,301
 
 
 
–
 

Other long-term liabilities

 
 
19
 
 
 
7
 

Total liabilities

 
 
21,335
 
 
 
16,930
 

Stockholders' equity:

Convertible preferred stock, par value $0.001

 
 
–
 
 
 
–
 

Common stock, par value $0.001

 
 
51
 
 
 
10
 

Additional paid-in capital

 
 
365,684
 
 
 
355,220
 

Accumulated deficit

 
 
(358,186
)
 
 
(348,335
)

Total stockholders' equity

 
 
7,549
 
 
 
6,895
 

Total liabilities and stockholders' equity

 
$ 
28,884
 
 
$ 
23,825
 

Reconciliation of Adjusted EBITDA to Net loss and comprehensive loss
(in thousands) (unaudited)

 
For the Three Months Ended
 
 
For the Six Months Ended
 

 
June 30,
 
 
March 31,
 
 
June 30,
 
 
June 30,
 
 
June 30,
 

 
2020
 
 
2020
 
 
2019
 
 
2020
 
 
2019
 

Net loss and comprehensive loss

 
$ 
(4,000
)
 
$ 
(5,851
)
 
$ 
(4,651
)
 
$ 
(9,851
)
 
$ 
(9,706
)

Add: Interest expense, net

 
 
412
 
 
 
368
 
 
 
274
 
 
 
780
 
 
 
542
 

Add: Other (income) expense, net

 
 
(4
)
 
 
4
 
 
 
(329
)
 
 
–
 
 
 
(569
)

Add: Stock-based compensation

 
 
325
 
 
 
451
 
 
 
516
 
 
 
776
 
 
 
1,009
 

Add: Certain inventory charges

 
 
96
 
 
 
–
 
 
 
–
 
 
 
96
 
 
 
–
 

Add: Certain depreciation and amortization charges

 
 
228
 
 
 
225
 
 
 
228
 
 
 
453
 
 
 
428
 

Adjusted EBITDA

 
$ 
(2,943
)
 
$ 
(4,803
)
 
$ 
(3,962
)
 
$ 
(7,746
)
 
$ 
(8,296
)

SOURCE: Avinger, Inc.

ReleaseID: 599622

Aytu BioScience's Sublicensee SUDA Pharmaceuticals Secures TGA Approval, Enabling Near-Term Commercialization of ZolpiMist

ENGLEWOOD, CO / ACCESSWIRE / July 30, 2020 / Aytu BioScience, Inc. (NASDAQ:AYTU), a specialty pharmaceutical company (the "Company") focused on commercializing novel products that address significant patient needs, today announced the approval of ZolpiMist® (zolpidem tartrate oral spray) by the Therapeutic Goods Administration (TGA) in Australia. This approval, which was secured by the Company's ZolpiMist sublicensee SUDA Pharmaceuticals Ltd ("SUDA"), enables near-term commercialization of ZolpiMist in Australia. SUDA (ASX:SUD) is a publicly-listed drug delivery company focused on oro-mucosal administration and is headquartered in Perth, Western Australia.

With this approval by Australia's TGA, ZolpiMist will be included on the Australian Register of Therapeutic Goods and can now be commercialized and supplied within Australia. Further, this approval will assist SUDA's current ZolpiMist sublicensees, Teva Pharmaceuticals, Mitsubishi Tanabe Pharma Singapore and MTP Korea, in their submissions in their respective territories.

On March 9, 2010 Aytu BioScience announced a global distribution agreement for ZolpiMist with SUDA whereby the Company assumed a milestone and royalty-based licensing agreement with SUDA. As specified in the companies' global licensing agreement, SUDA will pay Aytu a portion of each upfront and milestone payment received from sublicensees, and Aytu will receive ongoing royalty payments on sales generated by SUDA's sublicensees as ZolpiMist is launched in each territory.

Josh Disbrow, Chief Executive Officer of Aytu BioScience, stated, "We congratulate the SUDA team for obtaining TGA approval for ZolpiMist and look forward to SUDA and their partners moving ZolpiMist closer to commercialization in Australia and elsewhere. This is an exciting time for SUDA and represents an important milestone for Aytu as we move closer to realizing ex-US licensing revenue for ZolpiMist."

Dr. Michael Baker, Chief Executive Officer and Managing Director of SUDA, commented, "The TGA submission was a combined effort by SUDA's technical team as well as our regulatory consultant, Pharma To Market. Obtaining the approval indicates the calibre of our staff and is also a key benefit to our partners for ZolpiMist. We are delighted by the outcome and look forward to seeing the commencement of commercial sales in the foreseeable future."

The global sleep aid market is currently estimated at almost $50 billion in annual revenue, and annual revenue is estimated to reach nearly $80 billion in 2022.

About Aytu BioScience, Inc.
Aytu BioScience is a commercial-stage specialty pharmaceutical company focused on commercializing novel products that address significant patient needs. The company currently markets a portfolio of prescription products addressing large primary care and pediatric markets. The primary care portfolio includes (i) Natesto®, the only FDA-approved nasal formulation of testosterone for men with hypogonadism (low testosterone, or "Low T"), (ii) ZolpiMist™, the only FDA-approved oral spray prescription sleep aid, and (iii) Tuzistra® XR, the only FDA-approved 12-hour codeine-based antitussive syrup. The pediatric portfolio includes (i) AcipHex® Sprinkle™, a granule formulation of rabeprazole sodium, a commonly prescribed proton pump inhibitor; (ii) Cefaclor, a second-generation cephalosporin antibiotic suspension; (iii) Karbinal® ER, an extended-release carbinoxamine (antihistamine) suspension indicated to treat numerous allergic conditions; and (iv) Poly-Vi-Flor® and Tri-Vi-Flor®, two complementary prescription fluoride-based supplement product lines containing combinations of fluoride and vitamins in various for infants and children with fluoride deficiency. Aytu also distributes a COVID-19 IgG/IgM rapid test. This coronavirus test is a solid phase immunochromatographic assay used in the rapid, qualitative and differential detection of IgG and IgM antibodies to the 2019 Novel Coronavirus in human whole blood, serum or plasma.

Aytu also operates a subsidiary focused on consumer health, Innovus Pharmaceuticals, Inc. ("Innovus"), a specialty pharmaceutical company commercializing, licensing and developing safe and effective consumer healthcare products designed to improve men's and women's health and vitality. Innovus commercializes over thirty-five consumer health products competing in large healthcare categories including diabetes, men's health, sexual wellness and respiratory health. The Innovus product portfolio is commercialized through direct-to-consumer marketing channels utilizing the company's proprietary Beyond Human® marketing and sales platform.

Aytu's strategy is to continue building its portfolio of revenue-generating Rx and consumer health products, leveraging its focused commercial team and expertise to build leading brands within large therapeutic markets. For more information visit aytubio.com and visit innovuspharma.com to learn about the company's consumer healthcare products.

About SUDA Pharmaceuticals Ltd
SUDA Pharmaceuticals Ltd (ASX:SUD) is a drug delivery company focused on oro-mucosal administration, headquartered in Perth, Western Australia. The Company is developing low-risk oral sprays using its OroMist® technology to reformulate existing pharmaceuticals. The many potential benefits of administering drugs through the oral mucosa (i.e.: cheeks, tongue, gums and palate) include ease of use, lower dosage, reduced side effects and faster response time. SUDA's product pipeline includes ZolpiMist™, a first-in-class oral spray of zolpidem for insomnia. ZolpiMist is marketed in the USA and SUDA has rights to the product outside of the US and Canada. Other products in development include oral sprays for the treatment of: migraine headache; chemotherapy-induced nausea and vomiting; erectile dysfunction; pulmonary hypertension; epileptic seizures and pre-procedural anxiety and cancer. For more information, visit www.sudapharma.com

Forward-Looking Statement
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. All statements other than statements of historical facts contained in this presentation, are forward-looking statements. Forward-looking statements are generally written in the future tense and/or are preceded by words such as ''may,'' ''will,'' ''should,'' ''forecast,'' ''could,'' ''expect,'' ''suggest,'' ''believe,'' ''estimate,'' ''continue,'' ''anticipate,'' ''intend,'' ''plan,'' or similar words, or the negatives of such terms or other variations on such terms or comparable terminology. These statements are just predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include, among others: market and other conditions, the regulatory and commercial risks associated with introducing the COVID-19 rapid test, the effectiveness of the COVID-19 rapid rest, market acceptance of the National Cancer Institute or other independently conducted studies' testing results, the regulatory, clinical, and commercial risks associated with the investigational Healight device, effects of the business combination of Aytu and the Commercial Portfolio and the merger ("Merger") with Innovus Pharmaceuticals, including the combined company's future financial condition, results of operations, strategy and plans, the ability of the combined company to realize anticipated synergies in the timeframe expected or at all, changes in capital markets and the ability of the combined company to finance operations in the manner expected, the diversion of management time on Merger-related issues and integration of the Commercial Portfolio, the ultimate timing, outcome and results of integrating the operations the Commercial Portfolio and Innovus with Aytu's existing operations, risks relating to gaining market acceptance of our products, including the risks associated with ZolpiMist's commercial success in Australia and elsewhere, obtaining or maintaining reimbursement by third-party payors for our prescription products, the potential future commercialization of our product candidates, the anticipated start dates, durations and completion dates, as well as the potential future results, of our ongoing and future clinical trials, the anticipated designs of our future clinical trials, anticipated future regulatory submissions and events, our anticipated future cash position and future events under our current and potential future collaboration. We also refer you to the risks described in ''Risk Factors'' in Part I, Item 1A of the company's Annual Report on Form 10-K and in the other reports and documents we file with the Securities and Exchange Commission from time to time.

Contact for Investors:
James Carbonara
Hayden IR
(646) 755-7412
james@haydenir.com

SOURCE: Aytu BioScience, Inc.

ReleaseID: 599574

LOS ANGELES, CA / ACCESSWIRE / July 30, 2020 / MCTC Holdings, Inc. (OTC PINK:MCTC), dba Cannabis Global Inc., a cannabinoid and hemp extract science forward company developing infusion and delivery technologies, is pleased to update shareholders with the following information on the selected protocols for its animal study (the "Mouse Study") designed to determine if administration of rare cannabinoid Tetrahydrocannabivarin (THC-V) promotes appetite suppression and/or weight loss.

The Company plans to begin the Mouse Study next month, which will run for a period of six weeks. The goal of the study is to determine if Diet-induced Obese ("DIO") mice experience weight loss after administration of THC-V and, if so, to determine the extent of the weight loss.

Mouse Model – The DIO mouse model will utilize mice from Taconic Biosciences, Inc. This strain was selected for its robust response to high-fat diets.
Groups – The study will consist of 35 DIO mice, randomly divided into five groups: 1) a control group which will receive no THC-V; 2) a group to receive the human equivalent of 10 milligrams of botanically derived THC-V daily prior to feeding; 3) a group to receive the human equivalent of 40 milligrams of botanically THC-V daily prior to feeding; 4) a group to receive the human equivalent of one milligram of the Company's sustained release THC-V nanoparticle preparation daily prior to feeding; and, 5) a group to receive the human equivalent of two milligrams of the Company's sustained release THC-V nanoparticle preparation daily prior to feeding. All groups will be maintained on high-fat diets throughout the study period.
THC-V Administration – To avoid the potential risks and induced stress involved with intragastric gavage, the study will utilize voluntary dosing via a THC-V laced sweet treat to be provided to the mice prior to daily feeding.
Measurement – Body weights will be taken and recorded twice weekly during the six-week THC-V dosing period.

Mr. Arman Tabatabaei, CEO of Cannabis Global, commented, "This study is a first step to investigate if THC-V is, in fact, a weight loss or appetite suppressant. While the popular and industry press widely outlines THC-V as such, scientific research is severely lacking. We plan to take the industry a step forward relative to THC-V via this study. We also hope to shed some light on the potential effectiveness of our highly loaded nanoparticles of manufactured THC-V versus the botanically derived cannabinoid.

THC-V and CBN are not scheduled at the federal level. The Company's THC-V products contain zero tetrahydrocannabinol (THC), far below the acceptable federal level of 0.3%, and zero heavy metals, pesticide and herbicide residues, nitrates and other impurities that are contained in most cannabis and hemp products. The Company's products are not intended to diagnose, treat, cure, or prevent any disease and are not for use by or sale to persons under the age of 18. The statements made regarding these products have not been evaluated by the Food and Drug Administration. The efficacy of these products has not been confirmed by FDA-approved research. These products are not intended to diagnose, treat, cure, or prevent any disease. All information presented here is not meant as a substitute for or alternative to information from health care practitioners. Please consult your health care professional about potential interactions or other possible complications before using any product.

Technology and recent product developments were a result of the Company's Project Varin, which was implemented last year to invent new manufacturing and infusion technologies for rare cannabinoids, such as THC-V and CBN. The Company plans to utilize the developed technologies in similar applications for other rare cannabinoids.

The Company plans to comply with all State of California and federal regulations relative to conducting animal research and to adhere to all industry standards for ethical research and treatment.

About Cannabis Global, Inc.

Cannabis Global, Inc., formerly known as MCTC Holdings, Inc., is a fully audited and reporting Company with the U.S. Securities & Exchange Commission, trading with the stock symbol MCTC. The Company is an emerging force in the area of cannabinoid sciences and highly bioavailable hemp and cannabis infusion technologies. The Company does not engage in the production, distribution, or sales of any controlled substances, including marijuana. The Company has an actively growing portfolio of intellectual property having filed six patents in the areas of cannabinoid delivery systems and cannabinoid polymeric nanoparticles. The Company markets its consumer products under the Hemp You Can Feel brand name. Cannabis Global launched its Project Varin early in 2020, to develop new delivery methods for rare cannabinoid Tetrahydrocannabivarin (THC-V) and to develop products based on this cannabinoid.

This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-k, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.

For more information, please contact:

Arman Tabatabaei,
IR@cannabisglobalinc.co

Public Relations:

Tiger Global Management
info@TigerGMP.com
www.TigerGMP.com

SOURCE: MCTC Holdings, Inc

ReleaseID: 599494

ROSEVILLE, CA / ACCESSWIRE / July 30, 2020 / Four accomplished business leaders today announced the formation of LEVEL Capital Inc, dba LEVEL Financing; a groundbreaking debt solutions company built specifically for Internet 3.0 and post-COVID impact world.

Serendipitously announced during a crucial phase in the American economy, the perfectly timed LEVEL Financial initiative is spearheaded by a synergistic power team, including financial veterans Jason Bartlett and Torrey Osborne of American Debt Solutions (ADS)/US Educational Financial Solutions (USEFS); veteran entrepreneur Greg Connolly of Trifecta -the nation's largest meal delivery system with annual revenue well into the 9 figures-and Natalie Minh, CEO of the award-winning digital marketing agency Natalie Minh Interactive (NMI), a longtime force in the health and fitness space.

With the mission of liberating hard-working Americans from debt and facilitating long-term financial wellness; LEVEL Financing employs over 265 vetted service experts and top tier financial consultants, who are all dedicated to restoring people's economic freedom with dignity and transparency. Through automated and highly personalized debt solution programs; LEVEL can offer clients continuous support and a fair path to eliminate debt in a timely and affordable manner that gets them back on their feet quicker, so they can stop living paycheck to paycheck and secure their future with more and better options.

Video: https://youtu.be/XJ6eoE_wvvM

Where other companies offer financial planning heavily focused on investments; LEVEL Financing focuses mainly on debt restructuring, debt management, and favorable hybrid loan solutions. Once clients are back in a healthy financial position, LEVEL can help decrease overall living costs by negotiating better loan terms, lower monthly payments, and more reasonable interest rates across the board.

A leader in the financial field with a multi-decade long track record resolving debt for tens of thousands of families with his companies ADS and USEFS; co-founding LEVEL partner Jason Bartlett states that:

"We've worked with thousands of people that come to us after months or even years of suffering from debt with this sense of having nowhere to turn. Many of these people are stuck in the pattern of not knowing all of their options. Through the nine years, we've been working within this industry, we know exactly how to work with the creditors to give people real solutions that work to get out of debt. We also give our clients real financial coaching that will continue to teach them and embrace more effective spending habits, so they embrace true financial freedom and live a financially fit lifestyle."

– Jason Bartlett CEO

"The relief and personal shift resulting from debt resolution are truly remarkable." says ADS/USEFS partner and LEVEL Financing co-founder Torrey Osborne.

"It is really a privilege to be in the position to help people achieve lifelong freedom after overcoming the unbelievable pressure of credit card debt, hungry collectors, and sometimes impending foreclosure or bankruptcy."

– Torrey Osborne CFO

An accomplished businessman heavily invested in products meant to improve personal health and well-being, Trifecta's Greg Connolly explains his motivation to join the formation of LEVEL Financing:

"Living in debt is incredibly stressful, and it takes a toll on every area of your life. As someone who's passionate about helping American's succeed as individuals and as a society, I invest my time and money into products I truly believe in. I feel that LEVEL represents an invaluable contribution to increased American wealth and financial stability, something every family deserves. Stable finances and long-term health go hand in hand; so we are here to modernize the debt settlement industry and make it significantly more consumer-friendly."

– Greg Connolly Managing Director

Complementing the team as senior fitness and health marketing authority with extensive financial, business, and marketing background; spanning from international structured finance for Fortune 100 companies to digital solutions for bootstrapped start-ups, LEVEL partner and NMI digital marketing agency CEO Natalie Minh is well versed in multiple aspects of both personal wellness and economic health.

"In a world full of financial advisors helping already secure people invest in their future, Americans who are in financial distress are left behind. When you're debt-ridden and struggling, you have very few people that you can turn to, leading you to believe that filing life-changing bankruptcy (and all that comes with it) is your only option. LEVEL's heart-driven business cuts through the suffocating anxiety, to provide families with foundational financial education and the chance to settle an old debt. We are invested in helping everyone achieve The American Dream of a comfortable life that has a safety net and the freedom to plan your future."

– Natalie Minh CTO

LEVEL Financing was founded in Roseville, CA in 2019, by Jason Bartlett and Torrey Osborne (ADS/USEFS); Greg Connolly (Trifecta Nutrition) and Natalie Minh (NMI).

Merging long-standing financial solution authorities American Debt Solution and US Educational Financial Solutions under a new name, LEVEL Financing goes by the slogan "LEVEL up your Money Game"-backed by the notion that everyone deserves a fair, dignified chance to resolve their debt so that they can gain the freedom to choose a life that they truly want.

Company Contact: info@levelfinancing.com
PR Contact: Nminh@NatalieMinhInteractive.com

LEVEL Financing
970 Reserve Dr Suite 201
Roseville, CA 95678
(888) 619-1770
levelfinancing.com

SOURCE: LEVEL Financing

ReleaseID: 599545

BEIJING, CHINA / ACCESSWIRE / July 30, 2020 / Bilibili, a popular Chinese danmaku video website, recently told the old web video editor to go offline. The new version of cloud clipping has been put online. It can be operated directly in a web browser without downloading. Compared to the old Web video editor, the new cloud Clipping is a complete upgrade to the user experience.

1. Operating environment and loading speed

The old version of The Web video editor can only be opened in the Chrome browser environment, will occupy a certain amount of local memory, computing resources for processing operations, to smooth the use of the need for a specific device threshold. The new cloud clips are available in Chrome, Opera and Edge, 360, and Firefox, and load much faster than the old version.

2. Cloud rendering technology architecture

Older versions of the Web video editor can only be used on fixed PC devices, but changing the method causes all the material to go offline. The newly launched cloud clip supports local + cloud rendering, eliminates the need for fixed devices, and allows users to make videos on multiple occasions on different methods.

3. Seamless interaction of multi-terminal contributions

The newly launched cloud clip is fully compatible with the subtitles, filters, special effects, and other mobile editor materials. The mobile draft can be synchronized to the web cloud clip for secondary refinement in the form of a timeline project, enabling users to produce more detailed videos.

4. Function

The new library is different from the old one, with fewer full-length video types but more "widgets." There are rich subtitle effects, transition effects, particle effects, and so on, providing more tool choices for content creators. Timeline editing mode is easy to operate, supports various audio and video formats, generates 4K video files at the highest level, and renders in the cloud without export, which can be submitted directly.

To lower the threshold of video production, encourage more users to create and enrich original content. This new version of cloud clip Bilibili once again chose Meishe Network Technology to carry out in-depth technical cooperation, further recognized the mechanical strength of Meishe Network Technology.

Meishe Cloud Editing is a new generation of high-end B/S cloud architecture nonlinear editing systems, which integrates video editing, creative packaging, and special effects. It is based on the broadcast level of image processing engine. It is specially designed for the whole industry customers, with video and audio clips, various professional types of subtitles, special effects packaging, stickers, transfer, filter effects, audio editing, one-button theme packaging functions. Support 4K high-definition multi-standard multi-frame rate multi-format mixing, image, and audio processing effects align with the STATE Administration of Radio, Film, and Television standards.

Using the latest WebAssembly technology of the browser and based on the powerful video and audio processing architecture of Meishe Network Technology SDK, it integrates the traditional professional non-editing function based on comprehensive coverage of the production function of short Internet video, to realize that everyone can quickly produce professional and high-quality video. It can also be customized for access and development according to customers' needs, which can be widely used in various industries to build video post-production cloud editing platform requirements. Cloud clip solution is also seamlessly compatible with Meishe Network Technology mobile SDK project, and supports the export of FCPXML, AAF, EDL timeline sequence, which brings great convenience to post-production workflow, reduces the production time, and improves the production efficiency of content.

The product matrix of Meishe Network Technology includes video shooting and editing SDK, intelligent editing solution, smartphone solution, face + beauty/sticker solution, cloud editing, virtual anchor, video packaging custom design, and other services. Its whole process function from shooting to editing covers all the current mainstream video gameplay. Has flexible technical architecture, using multithreading, CPU and GPU collaborative mechanism of pretreatment, natural language processing algorithms, such as technology, head manufacturers agreed by various industries both at home and abroad, with such as Millet, OPPO, Vivo, Bilibili, Migu, Cheetah mobile, Yingke, Mango TV, KEEP, Fang Tianxia, Small Red-lip depth of technical cooperation in various fields such as head customers. Besides, it cooperates with traditional enterprises such as National Electricity Network, radio, and television to promote Toutiao APP and financial media in government and enterprise.

In the future, Meishe Network Technology will make use of the technical advantages of traditional video and audio processing to provide developers with more innovative gameplay and imagination space, empower more industries, apply to a broader range of scenarios, and realize the value of cross-platform!

CONTACT: 

Company Name: Beijing Meishe Network Technology Co., Ltd.
Person: Miranda
Phone: 0086+15801332014
Email: zhaojing@cdv.com
Website: http://www.meishesdk.com

SOURCE: Beijing Meishe Network Technology Co., Ltd.

ReleaseID: 599650