Teleconference and Webcast to be Held Today at 4:30 P.M. EST

WAUKESHA, WI / ACCESSWIRE / August 14, 2020 / Telkonet, Inc. (OTCQB:TKOI), (the "Company", "Telkonet"), an innovation leader in commercial intelligent automation and energy management solutions for Hospitality, Healthcare, Education, Military and Residential markets announces financial results for the quarter ended June 30, 2020. Management will host a teleconference at 4:30pm ET today to discuss these results with the financial community.

"While 2020 has been a difficult year throughout the economy, our target markets have been affected especially hard," stated Jason Tienor, Telkonet's CEO. "Although we saw increased customer orders placed at the end of the second quarter, the first and second quarters were fundamentally impacted as certain customers in the Hospitality and Educational industries, Telkonet's largest revenue segments, were forced to close their operations due to the pandemic. Ongoing activity within secondary markets, international efforts and strategic discussions will continue to be areas of focus for the Company."

Operational Summary:
For the six month period ended June 30, 2020:

Gross profit percentage increased 2% to 40% for the six months ended June 30, 2020, compared to the prior year period. This was primarily driven by an improved gross profit percentage on reoccurring revenue due to decreases in call center staffing as the Company migrated to a combination of internal and external solutions.
Import tariffs resulted in an adverse impact of approximately 7% on gross profits for the six months ended June 30, 2020, compared to approximately 9% for the prior year period.
Received $0.91 million in loan proceeds under the Paycheck Protection Program authorized by the Keeping American Workers Employed and Paid Act, which is part of the Coronavirus Aid, Relief, and Economic Security Act.
Awarded additional phase in large scale hospitality project in Las Vegas, NV.

"While the ongoing difficulties in Telkonet's target markets currently creates broad uncertainty in our business, we remain bullish on our prospects moving forward based on our prior year's results entering into the year as well as our ongoing strategic discussions for Telkonet's future," continues Tienor. "With continued execution of our strategic priorities to position for the long-term recovery, including operational efficiencies, ongoing cost-savings measures and market expansion, we hope to see a rapid return to pre-pandemic levels once the economy stabilizes."

Financial Summary
For the three and six month periods ended June 30, 2020:

Total Revenue: Decreased 64% to $1.28 million and 51% to $3.09 million, respectively, when compared to respective prior year periods.

Product Revenue: Product revenue, which principally arises from the sale and installation of our energy management platform, decreased 67% to $1.10 million and 55% to $2.71 million, respectively, when compared to respective prior year periods.

Recurring Revenue: Recurring revenue, which principally arises from call center support services, decreased 6% to $0.18 million and increased 2% to $0.37 million, respectively, when compared to respective prior year periods.

Gross Profit: Gross profit decreased 70% to $0.42 million and 49% to $1.23 million, respectively, when compared to respective prior year periods.

Net Loss: Net losses increased 83% to $0.95 million and 17% to $1.60 million, respectively, when compared to respective prior year periods.

Teleconference

Date: Friday, August 14, 2020

Time: 4:30 pm ET (3:30 pm CT, 1:30 pm PT)

Investor Dial-In (Toll Free US & Canada): 877-407-9171

Investor Dial-In (International): 201-493-6757

A replay of the teleconference will be available until August 28, 2020, which can be accessed by dialing (877) 660-6853 if calling within the US & Canada or (201) 612-7415, if calling internationally. Please enter conference ID# 13649459 to access the replay.

NON-GAAP Financial Measures
Telkonet will post to the Company's investor relations web site (www.telkonet.com) any reconciliation of differences between non-GAAP financial information that may be required in connection with issuing the Company's financial results.

The Company, as is common in its industry, uses adjusted EBITDA, a non-GAAP measurement gauge to demonstrate earnings exclusive of interest and non-cash events. The Company manages its business based on its cash flows. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. The Company, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses adjusted EBITDA as its primary management guide. Adjusted EBITDA is not, and should not be considered, an alternative to net income (loss), operating income (loss), or any other measure for determining operating performance of liquidity, as determined under accounting principles generally accepted in the United States (GAAP). In assessing the overall health of its business for the years ended December 31, 2019 and 2018, the Company excluded items in the following general category described below:

Stock-based compensation: The Company believes that because of the variety of equity awards used by companies, varying methodologies for determining stock-based compensation and the assumptions and estimates involved in those determinations, the exclusion of non-cash stock-based compensation enhances the ability of management and investors to understand the impact of non-cash stock-based compensation on our operating results. Further, the Company believes that excluding stock-based compensation expense allows for a more transparent comparison of its financial results to the previous period.

Adjusted EBITDA and other non-GAAP financial measures should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of the non-GAAP financial measure as an analytical tool. In particular, the non-GAAP financial measure is not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measure reflect the exclusion of items that are recurring and will be reflected in the Company's financial results for the foreseeable future. The Company compensates for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measure.

ABOUT TELKONET
Telkonet, Inc. (OTCQB:TKOI) provides innovative intelligent automation platforms at the forefront of the Internet of Things (IoT) space. Helping commercial audiences better manage operational costs, the Company's EcoSmart intelligent automation platform is supported by a full-suite of IoT-connected devices that provide in-depth energy usage information and analysis, allowing building operators to reduce energy expenses. Vertical markets that benefit from EcoSmart products include hospitality, education, military, government, healthcare and multiple dwelling housing. Telkonet was founded in 1977 and is based in Waukesha, WI. For more information, visit www.telkonet.com.

For news updates as they happen, follow @Telkonet on Twitter.

To receive updates on all of Telkonet's developments, sign up for our email alerts HERE.www.telkonet.com

FORWARD-LOOKING STATEMENTS
Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the impact of the COVID-19 pandemic on the Company's operations and financial results as well as the economy generally, competitive factors, technological development, market demand and the Company's ability to obtain new contracts and accurately estimate net revenue due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company's financial results, can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and in its Reports on Forms 8-K filed with the Securities and Exchange Commission ("SEC").

Media Contacts:
Telkonet Investor Relations
414.721.7988
ir@telkonet.com

TELKONET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

Three Months Ended

June 30,

Six Months Ended

June 30,

 
2020
 
 
2019
 
 
2020
 
 
2019
 

Revenues, net:

Product

 
$
1,103,371
 
 
$
3,380,892
 
 
$
2,712,633
 
 
$
5,967,561
 

Recurring

 
 
178,311
 
 
 
189,143
 
 
 
372,473
 
 
 
365,676
 

Total Net Revenue

 
 
1,281,682
 
 
 
3,570,035
 
 
 
3,085,106
 
 
 
6,333,237
 

Cost of Sales:

Product

 
 
835,871
 
 
 
2,077,066
 
 
 
1,802,474
 
 
 
3,767,664
 

Recurring

 
 
25,797
 
 
 
77,072
 
 
 
48,569
 
 
 
163,114
 

Total Cost of Sales

 
 
861,668
 
 
 
2,154,138
 
 
 
1,851,043
 
 
 
3,930,778
 

Gross Profit

 
 
420,014
 
 
 
1,415,897
 
 
 
1,234,063
 
 
 
2,402,459
 

Operating Expenses:

Research and development

 
 
291,849
 
 
 
425,670
 
 
 
661,092
 
 
 
912,296
 

Selling, general and administrative

 
 
1,056,721
 
 
 
1,476,719
 
 
 
2,127,331
 
 
 
2,799,767
 

Depreciation and amortization

 
 
14,743
 
 
 
17,043
 
 
 
29,538
 
 
 
33,975
 

Total Operating Expenses

 
 
1,363,313
 
 
 
1,919,432
 
 
 
2,817,961
 
 
 
3,746,038
 

Operating Loss

 
 
(943,299
)
 
 
(503,535
)
 
 
(1,583,898
)
 
 
(1,343,579
)

Other Expenses:

Interest expense, net

 
 
(6,904
)
 
 
(15,040
)
 
 
(15,584
)
 
 
(20,600
)

Total Other Expense

 
 
(6,904
)
 
 
(15,040
)
 
 
(15,584
)
 
 
(20,600
)

Loss before Provision for Income Taxes

 
 
(950,203
)
 
 
(518,575
)
 
 
(1,599,482
)
 
 
(1,364,179
)

Income Tax Provision (Benefit)

 
 
(106
)
 
 
–
 
 
 
3,116
 
 
 
–
 

Net Loss Attributable to Common Stockholders

 
$
(950,097
)
 
$
(518,575
)
 
$
(1,602,598
)
 
$
(1,364,179
)

Net Loss per Common Share:

Basic – net loss attributable to common stockholders

 
$
(0.01
)
 
$
(0.00
)
 
$
(0.01
)
 
$
(0.01
)

Diluted – net loss attributable to common stockholders

 
$
(0.01
)
 
$
(0.00
)
 
$
(0.01
)
 
$
(0.01
)

Weighted Average Common Shares Outstanding – basic

 
 
136,311,335
 
 
 
135,085,519
 
 
 
135,814,956
 
 
 
134,477,460
 

Weighted Average Common Shares Outstanding – diluted

 
 
136,311,335
 
 
 
135,085,519
 
 
 
135,814,956
 
 
 
134,497,822
 

See accompanying notes to the unaudited condensed consolidated financial statements

RECONCILIATION OF NET LOSS
TO ADJUSTED EBITDA
(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

 
2020
 
 
2019
 
 
2020
 
 
2019
 

Net loss

 
$
(950,097
)
 
$
(518,575
)
 
$
(1,602,598
)
 
$
(1,364,179
)

Interest expense, net

 
 
6,904
 
 
 
15,040
 
 
 
15,584
 
 
 
20,600
 

Income tax provision (benefit)

 
 
(106
)
 
 
–
 
 
 
3,116
 
 
 
–
 

Depreciation and amortization

 
 
14,743
 
 
 
17,043
 
 
 
29,538
 
 
 
33,975
 

EBITDA

 
 
(928,556
)
 
 
(486,492
)
 
 
(1,554,360
)
 
 
(1,309,604
)

Adjustments:

Stock-based compensation

 
 
1,815
 
 
 
1,815
 
 
 
3,631
 
 
 
3,631
 

Adjusted EBITDA

 
$
(926,741
)
 
$
(484,677
)
 
$
(1,550,729
)
 
$
(1,305,973
)

SOURCE: Telkonet, Inc.

ReleaseID: 601656

FAIRFIELD, NJ / ACCESSWIRE / August 14, 2020 / Bergio International, Inc. ("Bergio", or the "Company") (OTC PINK:BRGO), a leading designer, manufacturer and retail outlet for the Bergio Brand of designer jewelry, including exquisite collections of rings, necklaces, earrings, and other fine accessories, is pleased to announce that is has come to an agreement with one its largest debtors to settle its outstanding convertible debt.

Under the terms of the Agreement, the Company and Iliad Research and Trading, L.P. ("Illiad") agreed to settle approximately $474,000 of convertible debt and accrued interest for a total of $300,000 to be paid in monthly installments of $50,000 beginning September 15, 2020.

Mr. Berge Abajian, President & CEO stated "we are pleased to negotiate this settlement of convertible debt. This is the beginning of our efforts to transform our balance sheet as we move forward. We appreciate the support of Illiad and its management team over the years."

He continues, "The considerable reduction of $329,000.00 in convertible debt and approximately $145,000.00 of accrued Interest will significantly improve our balance sheet. We continue to search for ways to strengthen our balance sheet and seek traditional financing for our growth strategies."

He added, "I appreciate all the support from our shareholders and wishing all to stay safe thru this tough times, bright future is ahead ".

About Bergio International, Inc.

The Bergio brand is our most important asset. The Bergio brand is associated with high-quality, handcrafted and individually designed pieces with European sensibility, Italian craftsmanship and a bold flair for the unexpected. Bergio, is one of the most coveted brands of fine jewelry. Established in 1995, Bergio's signature innovative design, coupled with extraordinary diamonds and precious stones, earned the company recognition as a highly sought-after purveyor of rare and exquisite treasures from around the globe. As President, CEO and Head Designer of Bergio, Berge Abajian performs a highly successful balancing act, accomplished with equal parts precision and passion. An informed and inspirational leader, Berge directs the company with the eye and soul of a designer and the mind of a businessman. The role that is perhaps closest to his heart, however, is that of designer. With family jewelry roots reaching back the 1930s, Berge is a third generation jeweler and a purist when it comes to design. Berge's understanding of every aspect, in both design and manufacturing, creates collections that are nothing short of peerless in craftsmanship and style. Berge creates a collection, he looks well beyond the drawing board. Berge focuses on the woman who will ultimately wear his pieces, bringing to creation a magnificent piece of jewelry that reflects the beauty and vitality a woman possesses. Bergio creations are a seamless blend of classic elegance and subtle flair, adding to a woman's charm while never overpowering her.

It is our intention to establish Bergio as a holding company for the purpose of establishing retails stores worldwide. Our branded product lines are products and/or collections designed by our designer and CEO Berge Abajian and will be the centerpiece of our retail stores. We also intend to complement our own quality-designed jewelry with other products and our own specially-designed handbags. This is in line with our strategy and belief that a brand name can create an association with innovation, design and quality which helps add value to the individual products as well as facilitate the introduction of new products.

For further information please visit our website at www.bergio.com.

This press release includes statements that are not historical in nature and may be characterized as "forward-looking statements," including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company's outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company's products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company's previous filings with the U.S. Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the "Act") protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

Berge Abajian
Bergio International, Inc.
(973) 227-3230
berge@bergio.com

SOURCE: Bergio International, Inc.

ReleaseID: 601724

LOS ANGELES, CA / ACCESSWIRE / August 14, 2020 / Clickstream Corp (OTC PINK:CLIS) announced that it has successfully completed its' initial beta test. The beta test, which featured questions from all the company's hosts, including NFL Network host and former NFL player Brian Baldinger, Fox Sports Amber Theoharis, NFL quarterback Joshua Dobbs, survival expert and retired US Army Green Beret Mykel Hawke, former ESPN host Howie Schwab, and celebrity chef Jordan Andino, was conducted on iOs and Android mobile platforms and was completed without incident.

Frank Magliochetti, CEO of Clickstream, enthuses, "We were very pleased with the results and now we can focus on the cosmetic touches we want to add prior to our formal launch next month."

ABOUT CLICKSTREAM CORPORATION

ClickStream's business operations are focused on the development and implementation of WinQuikTM, a free to play synchronized mobile app and digital gaming platform. The platform is designed to enable WinQuikTM users to have fun, interact and compete against each other in order to win real money and prizes. WinQuikTM is currently in production with shows featuring Joshua Dobbs, Jordan Andino, Brian Baldinger, Howie Schwab, Amber Theoharis, and Mykel Hawke. Subject matter includes sports, sports movies, survival, food/culinary, the Bible and outer space. Game are set up dynamically with multiple non-live game shows throughout the day and once-a-day live game show. As a free-mium platform, ClickStream is in the process of monetizing the platform with corporate sponsors and advertisers. For more information please visit Clickstream's websites at www.clickstream.technology or www.WinQuik.com as well as on Twitter at @ClickstreamC and @WinQuikApp.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements that can be identified by terminology such as "believes," "expects," "potential," "plans," "suggests," "may," "should," "could," "intends," or similar expressions. Many forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results implied by such statements. These factors include, but are not limited to, our ability to continue to enhance our products and systems to address industry changes, our ability to expand our customer base and retain existing customers, our ability to effectively compete in our market segment, the lack of public information on our company, our ability to raise sufficient capital to fund our business, operations, our ability to continue as a going concern, and a limited public market for our common stock, among other risks. Many factors are difficult to predict accurately and are generally beyond the company's control. Forward-looking statements speak only as to the date they are made, and we do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

FOR MORE INFORMATION, PLEASE CONTACT:

Adam Handelsman
SpecOps Communications
adam@specopscomm.com
O: (512) 363-0594
C: (646) 413-9401

SOURCE: ClickStream Corporation

ReleaseID: 601752

NEW YORK, NY / ACCESSWIRE / August 14, 2020 / In every industry on the market today, competition is fierce. More so now, with a pandemic affecting the economy and causing several businesses to lose profit. Business owners have resorted to taking advantage of the platforms the internet has given us.

To get one step ahead of their business rivals, they have turned to seek help from experts who can help them generate leads. Among these experts is serial entrepreneur Alex Machuca.

Alex hails from the suburbs of Fair Lawn, New Jersey. At the age of 16, he got his first sales job. His first time touching success was when he worked at GoDaddy. During his time there, he was awarded for his hustle and was ranked #7 in the world in global sales.

When Alex parted ways, he entered the recruiting industry. It wasn't long before he knew that he wanted to run a business of his own. Alex started a staffing company, but not long after, the idea of getting into the event production business attracted his attention. Compared to the industry he entered, the project appealed more to Alex.

A friend approached Alex and told him they were looking for an investor for his company, Tacotopia. They needed someone to invest $250K for 25% equity. If Alex found an investor, he would be given 10% equity as well. Although he found an investor, that person got cold feet and did not end up investing.

Alex recognized that the event production landscape provides unique marketing opportunities for big name brands. In a shrewd business move, Alex managed to pull off a stroke of genius that would propel and ultimately finance the entire operation. Alex cold-called Pepsi and Cholula, convincing them to give him $250K in sponsorship money collectively. He kept the 25% equity for himself and became a partner in the business. Later on he was able to secure investments upwards of $600K for the company.

Alex picked up a lot of steam and cold-called Ryan Harwood, Gary Vayernchuk's partner, and garnered interest for an equity stake. They ran a test with Alex, but the concept did not work. With the pandemic striking, the business ultimately failed. Despite another fail, Alex did not give up. He started investing in digital marketing courses and used his ability to network and gain knowledge about the industry. He learned from experts like Jeremy Haynes, Zack Barotta, Brandon Packer, and Rob Bailey.

Most people would be intimidated speaking to world class entrepreneurs. Alex just looks at it as an opportunity to learn. This mentality over time has built him an impressive rolodex. It is not out of the ordinary for Alex to receive a text message from Audie Attar, one of the most prolific sports agents in the world who represents superstars like Connor Mcgregor and Manny Pacquiao. Connecting with other like minded entrepreneurs like Josh Snow, Casey Adams, and Dr. George Pratt is what has propelled him into his new and most successful venture.

Through the ashes of Tacotopia, Alex would end up creating Lyncrest Media, one of the fastest scaling mortgage marketing companies on the West Coast. This journey began at the beginning of the Covid 19 Pandemic. Alex spent several thousand dollars on digital marketing courses and locked himself in his room for months learning the ins and outs of the business. Fast Forward to today, Lyncrest is now at the forefront of automation and follow-up sequences. The company has amassed a long list of happy clients who are beginning to see as high as a 500% ROI.

Unlike other companies that provide their clients with leads, Lyncrest goes the extra mile and actively books the mortgage broker appointments. Their lead generation services are paired with follow-up services to help brokers lead into serious conversations.

Most mortgage brokers are surprised to find a 30 appointment guarantee but often double their volume working with Lyncrest. The company follows up with their leads 20 times over 90 days, and one hundred leads are the equivalent of 6,000 phone calls for the brokers.

This unique value proposition is becoming the new standard for lead generation everywhere. While other companies have tried to implement these systems, none have been as successful as Lyncrest Media.

To know more, visit their website or check them out on Instagram. To connect with Alex Machuca, you may also send an email to alex@lyncrestmedia.com.

CONTACT:

Company: Lyncrest Media
Email: alex@lyncrestmedia.com
Phone number: (480) 859-1616
Website: Lyncrestmedia.com

SOURCE: Lyncrest Media

ReleaseID: 601751

Launch of Trichome Financial Cannabis Private Credit LP with third-party investors

Facility enables Auxly to accelerate its cash conversion cycle with provincial distributors

Growing demand to factor receivables as non-dilutive source of capital

TORONTO, ON / ACCESSWIRE / August 14, 2020 / Trichome Financial Corp. ("Trichome Financial" or the "Company") (CSE:TFC) is pleased to announce the entry into a $8.0 million Receivables Purchase Facility (the "Facility") with Auxly Cannabis Group Inc. ("Auxly") (XLY). The Facility will be available to several of Auxly's subsidiaries to finance accounts receivables from Canadian provincial distributors as well as other customers. Offering of accounts receivable for factoring will be at the discretion of Auxly and acceptance of any such accounts receivable for factoring will be at the discretion of Trichome Financial.

The Facility is being funded through Trichome Financial Cannabis Private Credit LP ("Trichome Private Credit" or the "Fund") with a majority of the commitments coming from third-party investors, alongside the Company's commitment to the Facility of $500,000. This is the first bespoke financing facility provided by Trichome Private Credit, a credit investment fund structured for high net worth investors. Trichome Financial is the general partner of the Fund and will be responsible for the servicing and administration of the Facility. Trichome Financial will earn certain fees as administrator, originator and participant in the Fund.

"This transaction represents a landmark for Trichome Financial as we have now officially welcomed third-party investors into Trichome Private Credit. Launching a fund for investors has been part of our strategy since inception, and we are thrilled to have executed on our plan in difficult market conditions. The Fund will offer greater financial flexibility for Trichome Financial to close on our pipeline of bespoke transactions and diversify our revenue base. We are excited to partner with Auxly given its strategy to differentiate itself though the production and sale of quality flower, edibles and vape products. We will continue to seek similar opportunities across the cannabis value chain with companies that can demonstrate a competitive advantage with a promising business model," commented Michael Ruscetta, CEO of Trichome Financial.

Facility Details

The Facility provides Auxly with up to $8.0 million of non-dilutive capital, to be drawn against qualifying receivables and matures in 12 months. Trichome Private Credit will advance 80% of the face amount of qualifying receivables, allowing Auxly to finance up to $10.0 million of accounts receivable. Obligations of Auxly and its subsidiaries under the Facility are secured by a first-ranking perfected security interest in cannabis-related accounts receivable and is guaranteed by Auxly and several of its subsidiaries.

About Trichome Financial Corp.

Trichome Financial is a specialty finance company focused on providing flexible and creative credit solutions to the global legal cannabis market. Trichome was created to address the lack of credit availability in the large, growing and increasingly complex cannabis market. Trichome Financial's experienced founders and management team have a unique edge to capitalize on proprietary deal flow and industry insight while developing a first mover advantage as a global cannabis focused specialty finance company. Trichome Financial provides customized financing solutions across the industry value chain to support growth, capital expenditures, mergers, acquisitions, working capital and other needs. Leveraging the combined resources and knowledge of its founders, it is able to offer significant value-added financial, product, market and operational support to its partner companies.

For further information about Trichome Financial please visit us at www.trichomefinancial.com or @trichomefinance on Twitter and refer to the joint information circular of Trichome Financial and 22 Capital dated May 29, 2019 which is available on the Company's SEDAR profile at www.sedar.com.

READER ADVISORY

Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this press release.

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things: the Company's ability close new transactions from its pipeline of opportunities and diversify its revenue base. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and the delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Trichome Financial assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

Contact Information

Michael Ruscetta, CEO
Telephone: (416) 467-5229
Email: info@trichomefinancial.com
Marc Charbin, Investor Relations
Telephone: (416) 467-5229
Email: marc.charbin@loderockadvisors.com

SOURCE: Trichome Financial Corp.

ReleaseID: 601701

AUSTIN, TX / ACCESSWIRE / August 14, 2020 / AYRO, Inc. (NASDAQ:AYRO), a manufacturer of light-duty, urban and short-haul electric vehicles (EVs), today announced financial results for its Second Quarter of 2020.

Q2 Financial Highlights:

Revenues of $286,000
Net Loss of ($1.53) million
Adjusted EBITDA (loss) of ($683,000)
$881,000 in total debt as of June 30, 2020
$7.9 million in Cash as of June 30, 2020

Operating Highlights:

Subsequent to quarter-end, raised approximately $24.8 million in equity net of transaction fees
Subsequent to quarter-end, announced $584,000 in orders for its inaugural purpose-built EV hospitality truck solution with Gallery Carts
Announced completion of plant expansion to permit a 200% increase in production capacity to 600 electric vehicles per month
Backlog of approximately $525,000 as of June 30, 2020

Rod Keller, Chief Executive Officer of AYRO, Inc., commented, "Demand for electric vehicles, globally, is accelerating, and we are in an excellent position to benefit as a niche player for our commercial fleet solutions. In the second quarter we continued to work diligently to strengthen the balance sheet, develop new and expand current channels to market, and pursue additional strategic partnerships to further build the AYRO brand to position us for long-term, sustainable growth."

"Our second quarter financial results, starting with sales, were of course impacted by COVID-19, as both corporate and higher education institutions were re-evaluating their 2020 strategic plans with respect to their respective demand and capital spending needs. However, our facilities are now all up and running, we are maintaining compliance with health and safety codes and best practices, and our supply chain is once again in the position to support our sales and marketing efforts. We are seeing re-openings in certain key markets as we head to the back half of 2020."

"Our top priorities for the remainder of this year, beyond maintaining the safety standards for our employees, partners, customers, and all stakeholders, are to keep our sales funnel growing through continued penetration of the Club Car dealer network here in North America and abroad for the 411, and the development of other new products including the 311. We are aiming to penetrate captive markets where we can establish a leadership position as a provider of great, innovative electric vehicles and services that provide sustainable economic, green, and other unique benefits for our customers. The large initial order from Gallery and our plant expansion bode well for the remainder of 2020 and beyond for AYRO."

Results presented herein are preliminary. The company's final results will be filed subsequently on Form 10-Q, with the Securities and Exchange Commission.

Conference Call Today:
The company will be conducting a conference call this morning where management will lead a discussion of second quarter financial results with a Q&A Session to follow, beginning at 8:30 AM ET. Anyone interested in participating in the call should dial 877-270-2148 from within the United States or 412-902-6510 if calling internationally. A replay will be available until August 21, 2020, 11:59 PM which can be accessed by dialing 877-344-7529 if calling within the United States or 412-317-0088 if calling internationally. Please use passcode 10147055 to access the replay.

The call will additionally be broadcast live with accompanying slides and archived for 90 days over the internet, accessible at the investor relations portion of the Company's corporate website, https://ir.ayro.com/

About AYRO, INC.
Texas-based AYRO, Inc. designs and delivers compact, emissions-free electric fleet solutions for use within urban and short-haul markets. AYRO's vehicles are capable of accommodating a broad range of commercial requirements. AYRO was founded in 2017 by entrepreneurs, investors, and executives with a passion to create sustainable urban electric vehicle solutions for Campus Management, Last Mile & Urban Delivery and Closed Campus Transport. For more information, visit: www.ayro.com.

Forward-Looking Statements
This press release may contain forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any expected future results, performance, or achievements. Words such as "anticipate," "believe," "could," "estimate," "expect," "may," "plan," "project," "will," "would" and their opposites and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: we have a history of losses and has never been profitable, and we expect to incur additional losses in the future and may never be profitable; the market for our products is developing and may not develop as expected; our business, results of operations and financial condition may be adversely impacted by public health epidemics, including the recent COVID-19 outbreak; our limited operating history makes evaluating its business and future prospects difficult and may increase the risk of any investment in its securities; we may experience lower-than-anticipated market acceptance of its vehicles; developments in alternative technologies or improvements in the internal combustion engine may have a materially adverse effect on the demand for our electric vehicles; the markets in which we operate are highly competitive, and we may not be successful in competing in these industries; we rely on and intends to continue to rely on a single third-party supplier for the sub-assemblies in semi-knocked-down for all of its vehicles; we may become subject to product liability claims, which could harm our financial condition and liquidity if we are not able to successfully defend or insure against such claims; increases in costs, disruption of supply or shortage of raw materials, in particular lithium-ion cells, could harm our business; we will be required to raise additional capital to fund its operations, and such capital raising may be costly or difficult to obtain and could dilute our stockholders' ownership interests, and our long-term capital requirements are subject to numerous risks; we may fail to comply with environmental and safety laws and regulations; and we are subject to governmental export and import controls that could impair our ability to compete in international market due to licensing requirements and subject us to liability if we are not in compliance with applicable laws. A discussion of these and other factors is set forth in our registration statement on Form S-4 filed on February 14, 2020, as amended. Forward-looking statements speak only as of the date they are made and we disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.

INVESTOR RELATIONS CONTACTS:
Darrow Associates
Jordan Darrow
512-551-9296
jdarrow@darrowir.com

Darrow Associates.
Peter Seltzberg
516-419-9915
pseltzberg@darrowir.com

AYRO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

Three Months Ended

June 30,

Six Months Ended

June 30,

 
2020
 
 
2019
 
 
2020
 
 
2019
 

Revenue

 
$ 
285,927
 
 
$ 
396,098
 
 
$ 
432,743
 
 
$ 
480,049
 

Cost of goods sold

 
 
205,637
 
 
 
308,742
 
 
 
318,792
 
 
 
375,510
 

Gross profit

 
 
80,290
 
 
 
87,356
 
 
 
113,951
 
 
 
104,539
 

Operating expenses:

Research and development

 
 
180,605
 
 
 
283,191
 
 
 
335,304
 
 
 
482,925
 

Sales and marketing

 
 
239,065
 
 
 
298,440
 
 
 
558,519
 
 
 
500,627
 

General and administrative

 
 
714,679
 
 
 
1,242,606
 
 
 
1,963,730
 
 
 
2,025,800
 

Total operating expenses

 
 
1,134,349
 
 
 
1,824,237
 
 
 
2,857,553
 
 
 
3,009,352
 

Loss from operations

 
 
(1,054,059
)
 
 
(1,736,881
)
 
 
(2,743,602
)
 
 
(2,904,813
)

Other (expense) income:

Other income

 
 
3
 
 
 
28
 
 
 
20
 
 
 
56
 

Interest expense

 
 
(123,576
)
 
 
(72,796
)
 
 
(229,202
)
 
 
(167,981
)

Loss on extinguishment of debt

 
 
(353,225
)
 
 
–
 
 
 
(353,225
)
 
 
–
 

Other (expense) income, net

 
 
(476,798
)
 
 
(72,768
)
 
 
(582,407
)
 
 
(167,925
)

Net loss

 
$ 
(1,530,857
)
 
$ 
(1,809,649
)
 
$ 
(3,326,009
)
 
$ 
(3,072,738
)

Net loss per share, basic and diluted

 
$ 
(0.18
)
 
$ 
(0.65
)
 
$ 
(0.54
)
 
$ 
(1.10
)

Basic and diluted weighted average Common Stock outstanding

 
 
8,291,351
 
 
 
2,793,592
 
 
 
6,131,712
 
 
 
2,793,592
 

AYRO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 
June 30,
2020
 
 
December 31,
2019
 

ASSETS

Current assets:

Cash

 
$ 
7,918,120
 
 
$ 
641,822
 

Accounts receivable, net

 
 
313,060
 
 
 
71,146
 

Inventory

 
 
1,058,626
 
 
 
1,118,516
 

Prepaid expenses and other current assets

 
 
275,246
 
 
 
164,399
 

Total current assets

 
 
9,565,052
 
 
 
1,995,883
 

Property and equipment, net

 
 
561,682
 
 
 
489,366
 

Intangible assets, net

 
 
195,793
 
 
 
244,125
 

Operating lease – right-of-use asset

 
 
1,160,942
 
 
 
–
 

Deposits and other assets

 
 
22,491
 
 
 
48,756
 

Total assets

 
$ 
11,505,960
 
 
$ 
2,778,130
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

 
$ 
830,545
 
 
$ 
772,077
 

Accrued expenses

 
 
286,171
 
 
 
612,136
 

Contract liability

 
 
63,904
 
 
 
–
 

Current portion long-term debt, net

 
 
364,610
 
 
 
1,006,947
 

Lease obligation – operating lease

 
 
113,910
 
 
 
–
 

Total current liabilities

 
 
1,659,140
 
 
 
2,391,160
 

Long-term debt, net

 
 
235,913
 
 
 
318,027
 

Lease obligation – operating lease, net of current portion

 
 
1,066,484
 
 
 
–
 

Total liabilities

 
 
2,961,537
 
 
 
2,709,187
 

Commitments and contingencies

Stockholders' equity:

Preferred Stock, ( authorized – 20,000,000 shares; issued and outstanding – 10,080 and 7,360,985 shares, respectively)

 
 
–
 
 
 
–
 

Convertible Preferred Stock Series H, ($0.0001 par value; authorized – 8,500 shares; issued and outstanding – 8 and zero shares, respectively)

 
 
–
 
 
 
–
 

Convertible Preferred Stock Series H-3, ($.0001 par value; authorized – 8,461 shares; issued and outstanding – 2,189 and zero shares, respectively)

 
 
–
 
 
 
–
 

Convertible Preferred Stock Series H-6, ($.0001 par value; authorized – 50,000 shares; issued and outstanding – 7,883 and zero shares, respectively)

 
 
–
 
 
 
–
 

Convertible Seed Preferred Stock, ($1.00 par value; authorized – zero shares; issued and outstanding – 0 and 7,360,985 shares, respectively)

 
 
–
 
 
 
9,025,245
 

Common Stock, ($0.0001 par value; authorized – 100,000,000 shares; issued and outstanding – 16,509,964 and 3,948,078 shares, respectively)

 
 
1,651
 
 
 
395
 

Additional paid-in capital

 
 
25,827,425
 
 
 
5,001,947
 

Accumulated deficit

 
 
(17,284,653
)
 
 
(13,958,644
)

Total stockholders' equity

 
 
8,544,423
 
 
 
68,943
 

Total liabilities and stockholders' equity

 
$ 
11,505,960
 
 
$ 
2,778,130
 

Below is a reconciliation of Adjusted EBITDA to net loss for the three months ended June 30, 2020 and 2019.

 
For the three months ended
 

 
June 30,
 

 
2020
 
 
2019
 

Net Loss

 
$ 
(1,530,857
)
 
$ 
(1,809,649
)

Depreciation and Amortization

 
 
114,189
 
 
 
151,012
 

Stock-based compensation expense

 
 
150,948
 
 
 
476,214
 

Amortization of Discount on Debt

 
 
105,995
 
 
 
17,294
 

Interest expense

 
 
123,576
 
 
 
72,796
 

Loss on extinguishment of debt

 
 
353,225
 
 
 
–
 

Provision (benefit) for income taxes

 
 
–
 
 
 
–
 

Adjusted EBITDA

 
$ 
(682,924)
 
 
$ 
(1,092,333)
 

Below is a reconciliation of Adjusted EBITDA to net loss for the six months ended June 30, 2020 and 2019.

 
For the six months ended
 

 
June 30,
 

 
2020
 
 
2019
 

Net Loss

 
$ 
(3,326,009
)
 
$ 
(3,072,738
)

Depreciation and Amortization

 
 
228,464
 
 
 
259,279
 

Stock-based compensation expense

 
 
307,408
 
 
 
607,658
 

Amortization of Discount on Debt

 
 
169,739
 
 
 
27,883
 

Interest expense

 
 
229,202
 
 
 
167,981
 

Loss on extinguishment of debt

 
 
353,225
 
 
 
–
 

Provision (benefit) for income taxes

 
 
–
 
 
 
–
 

Adjusted EBITDA

 
$ 
(2,037,971)
 
 
$ 
(2,009,937)
 

SOURCE: AYRO, Inc.

ReleaseID: 601700

NEW YORK, NY / ACCESSWIRE / August 14, 2020 / Strattner Financial Group also known as Strattners (OTC PINK:SCNG) announces today that its subsidiary Strattner Technologies LLC signed a Memorandum of Agreement (MOA) with The Federal Emergency Management Agency (FEMA) Program Management Office (PMO), which will remain in effect for three years, is to establish a management agreement between Strattner Technologies and the Federal Emergency Management Agency (FEMA) regarding the development, management, operation, and security of a connection between Strattner Alerts, owned by Strattner Technologies, and the Integrated Public Alert and Warning System – Open Platform for Emergency Networks (IPAWS-OPEN) owned by FEMA.

Strattner Alerts is a service being developed by Strattner Technologies LLC with the mission to build a SaaS, mobile app and web service system capable of sending the relevant messages to the right audiences to ensure public safety of the American People.

IPAWS-OPEN is the backbone system that structures the alert and distributes the message from one interoperating and/or interconnected system (message sender) to another interoperating and/or interconnected system (message recipient).

The expected benefit of this agreement is to enable information interoperability across emergency response organizations and systems as intended by the IPAWS Initiative.

The authority for the agreement between FEMA and Strattner Technologies is based on the Executive Order 13407 of June 26, 2006, Public Alert Warning System. The Public Alert and Warning System Executive Order states, "It is the policy of the United States to have an effective, reliable, integrated, flexible, and comprehensive system to alert and warn the American people…establish or adopt, as appropriate, common alerting and warning protocols, standards, terminology, and operating procedures for the public alert and warning system to enable interoperability and the secure delivery of coordinated messages to the American people". In response, FEMA established the IPAWS Program Management Office (PMO) in April 2007.

About The Federal Emergency Management Agency (FEMA)

The Federal Emergency Management Agency (FEMA) was established to coordinate the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

About Strattners

Strattner Financial Group is a diversified alternative investment management firm focused on growing and managing groups assets, commercial interests, subsidiaries and services across a broad spectrum of industries where the firm identifies value.

IR Contact:

Strattner Financial Group
admin@strattners.com
+1 (917) 210-1062

Forward Looking Statements

This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, to be materially different from the statements made herein.

SOURCE: SC Holdings Corporation

ReleaseID: 601744

TORONTO, ON / ACCESSWIRE / August 14, 2020 / StageZero Life Sciences ("StageZero" or the "Company") (TSX:SZLS) today announced that it will release its Second Quarter 2020 operational results after market close on Friday, August 14, 2020. StageZero's Chairman and CEO, James R Howard-Tripp, will host a conference call and online presentation at 8:30 am ET on Monday August 17th to review the operational results and discuss business developments for the period and to date.

Analyst and Investor Call

Event Date: Monday August 17, 2020
Time: 8:30 AM EST
Webcast Link: https://www.webcaster4.com/Webcast/Page/2082/36633

Participant Numbers:

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

Replay Number:

Toll Free: 877-481-4010
International: 919-882-2331

Replay Passcode: 36633

About StageZero Life Sciences, Ltd.

StageZero Life Sciences is dedicated to the early detection of multiple disease states through whole blood. The Company operates a CAP accredited and CLIA certified high complexity reference laboratory based in Richmond, Virginia. A specialist in PCR testing for the early identification of Cancer through blood, the Company is uniquely positioned to provide both COVID PCR testing (live virus) and blood test analysis (Antibody testing). Our full service, telehealth platform includes access to physicians and phlebotomists who can prescribe and draw samples for individuals and groups. As we provide COVID-19 test during this Pandemic, we continue making progress with our mission to eradicate late stage cancers through early detection. Our next generation test, Aristotle®, is a multi-cancer panel for simultaneously screening for 10 cancers from a single sample of blood with high sensitivity and specificity for each cancer. www.stagezerolifesciences.com

Forward-Looking Statements

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

Company Contacts:

James R. Howard-Tripp
Chairman & CEO
jht@stagezerols.com
Tel: 1-855-420-7140 Ext. 1

Rebecca Greco
Investor Relations
rgreco@stagezerols.com
Tel: 1-855-420-7140 Ext. 1838

SOURCE: StageZero Life Sciences Ltd

ReleaseID: 601746

Not for distribution to U.S. Newswire Services or for dissemination in the United States of America. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws.

CALGARY, AB / ACCESSWIRE / August 14, 2020 / Today, Sparta Group (TSXV:SAY) (the "Corporation" the "Company", "Sparta Group", "Sparta Capital" or "Sparta") is providing greater detail about a recent deal that will enable the Company to distribute COVID-19 Antibody Testing within the Trucking Industry. This update follows a News Release that was issued August 7th entitled, Sparta Secures Agreement to Provide COVID-19 Antibody Testing to Trucking Industry.

While Sparta is still focused on its core businesses of upcycling sources of waste materials and sources of waste energy to improve the environment, generating revenues in the process, it is presently applying its talent base to also find ways to help with the COVID-19 crisis; especially as it relates to the frontline workers in the trucking industry. Sparta is helping facilitate supply of necessary materials/tools to address virus concerns while assisting talented inventors who are looking to introduce innovative technical solutions that will bring greater normalcy to the post COVID-19 world.

Antibody Testing details

As stated in the August 7, 2020 news release, Sparta had previously announced (in a July 16, 2020 news release) that its "TruckSuite™ Canada division had assembled an exclusive, symbiotic suite of COVID-19 safety tools to assist the trucking industry". [And] as an important component of that suite, COVID-19 testing for truckers was to be added; and thus, this agreement becomes the cornerstone of the testing program".

In the July 16, 2020 release the company stated that [the safety package] "will cover at least two forms of COVID-19 testing for truckers". The agreement reached with SBL Testing Technologies Inc. ("SBL") encompassed the first of the two forms of COVID-19 testing being contemplated; the purpose of this first form being to help a) determine if any company employees had been recently exposed to the SARS-CoV-2 virus and thus should go for further Polymerase Chain Reaction ("PCR") based nucleic acid testing (i.e. nose swab or saliva) through the IgM antibodies and b) to help track the duration of any disease-fighting IgG antibodies that continue to reside in the body after recovering from an infection of the novel coronavirus.

The company announced in its July 23, 2020 news release, a licensing agreement to distribute and co-develop a package of nanotechnology formulations aimed at killing and leaving behind long term protection from harmful pathogens on the drivers and in their cabs. The Antibody Rapid Test Kits are intended to compliment the antimicrobial program for all trucking verticals.

The agreement that enables Sparta/TruckSuite to start distributing the FDA Emergency Use Authorized ("EUA") COVID-19 Antibody Rapid Test Kits to truckers in the United States is a straight buy and sell distribution arrangement, where SBL sells the product to Sparta/TruckSuite at a discounted price with volume dependant rebates and Sparta/TruckSuite is free to mark up the product and sell it to its trucking clients. Included in the price is access to all online training & certification for test administrators, as well as white-labelling of their COVID-19 app, which Sparta intends to integrate into a suite of complimentary app platforms they are developing through 3rd party development teams. On the flip side, Sparta/TruckSuite has exclusivity for the trucking industry. Due to the extensive work Sparta has done with the trucking industry, management feel the Company is uniquely qualified to deliver a strong COVID-19 response to this important industry.

The term "Trucking Industry" is not limited to over-the-road 18 wheelers, but includes trash trucks, couriers, school buses, construction vehicles, and many other forms of vehicle and therefore Sparta can distribute the COVID-19 Antibody Test Kits to these verticals. As Sparta looks to expand into each of the aforesaid verticals over the next six months, different forms of supply will be necessary. As a result, Sparta has been negotiating with a number of key channel-partners to meet the needs and intended timelines of each trucking vertical.

While the primary testing kit presently being supplied is only 1 of 4 COVID-19 antibody tests (serology) with FDA Emergency Use Authorization (EUA), Health Canada is still evaluating point-of-care ("POC") COVID-19 antibody tests and has not issued any licenses to date. There are only 12 POC serology test platforms with active applications with Health Canada. SBL presently has 3 of the 12 manufacturer partners with active Health Canada applications.

The SBL team has been involved in the workplace diagnostic testing arena for more than fifteen years, servicing multiple market verticals, such as mining, energy, manufacturing and agriculture. As a result, they have provided many forms of workplace tests, including drug and alcohol testing and other forms of industry specific infectious disease testing. SBL has developed multiple long-term relationships with a number of tier-1 manufacturers, including Canadian, American and International suppliers and have provided many forms of workplace tests.

The COVID-19 testing protocols assembled, are simply an extension of the SBL present business model. The primary testing kit being supplied is only 1 of 4 COVID-19 antibody tests (serology) with FDA Emergency Use Authorization (EUA) and there is plenty of published clinical data from the National Institute of Health (NIH), who conducted the evaluations for the FDA. The kit is currently being sold and used throughout the USA and internationally. By partnering with Sparta/TruckSuite their collective efforts will be able to penetrate a significant portion of the sizable transport vertical.

About SBL

With headquarters in Calgary, Alberta and Austin, Texas, SBL Testing Technologies is a provider of on-site rapid testing technologies and comprehensive support for workplaces to manage risk. SBL has partnerships with leading manufacturers worldwide to offer its clients the highest quality in workplace testing available, along with training and customized support services. You can learn more about SBL testing technologies through the following video link: SBL technology and by visiting www.sbltt.com.

About Sparta

Sparta Group (a.k.a. Sparta Capital Ltd.) is a technology-based company that owns or holds a controlling interest in a network of independent businesses that supply energy saving technologies designed to reduce energy inefficiencies, achieve reduced emissions and increase operating efficiencies in various industries. In response to the COVID-19 crisis, Sparta has also expanded its scope to help facilitate supply of necessary materials while assisting talented inventors who are looking to introduce innovative technical solutions that will bring greater normalcy to the post COVID-19 world. Sparta's network of independent businesses provides a wide range of specialized energy capturing, converting, optimizing, and related services to the commercial sector. Sparta provides capital, technical and engineering expertise, legal support, financial and accounting knowledge, strategic planning and other shared services to its independent businesses.

Sparta is a publicly traded company listed on the TSX Venture Exchange under the symbol "SAY". Additional information is available on our website at www.spartagroup.ca or on SEDAR at www.sedar.com

For more information contact:

John O'Bireck, President & CTO
Email: jobireck@spartagroup.ca
Telephone: (905) 751-8004

Cautionary Statements:

This news release contains "forward-looking information" within the meaning of applicable securities laws. When used in this news release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, readers are cautioned to not place undue reliance on forward-looking information because the Corporation can give no assurance that they will prove to be correct. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date of publication of this news release and the Corporation undertakes no obligation to update such forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Furthermore, the Corporation undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Corporation. These include, but are not limited to, the failure to obtain necessary regulatory approvals, necessary financing and risks associated with the environmental technologies industry in general. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Sparta Capital Ltd.

ReleaseID: 601735

Company successfully completes warrant repricing and exchange, with gross proceeds to total $10.5 million

Company Enters Negotiation for Potential Licensing of Neuropathies Asset

PRINCETON, NJ / ACCESSWIRE / August 14, 2020 / Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN) ("Sonnet" or the "Company"), a biopharmaceutical company developing innovative targeted biologic drugs, announced today its financial results for the three months ended June 30th, 2020 and provided a business update.

Pankaj Mohan, Ph.D., Founder and CEO commented, "During the quarter, we made exceptional progress advancing our pipeline of oncology candidates, as well as announced an exciting new program to explore opportunities in the antiviral arena. These accomplishments were complemented by our strategic licensing activities, that included a potential partnership for the development of our low-dose IL-6 asset (SON-081) in diabetic peripheral neuropathy, an indication with significant commercial potential."

First Quarter and Recent Corporate Updates

Sonnet is pleased to provide the following updates on its pipeline assets:

Initial preclinical proof-of-concept work has been completed with both GMcSF and IL-18 and with GMcSF and IL-12 in a xenograft mouse model of melanoma. This study was designed to evaluate preclinical activity of the concomitantly administered cytokines as FHAB-derived molecules, using Sonnet's Fully Human Albumin Binding (FHAB) technology, in several groups of tumor-bearing mice. Sonnet's FHAB-derived drug candidates all showed significant reduction in tumor growth compared to placebo and when compared to cytokines not derived from the Company's platform.

Additionally during the quarter, the Company executed a letter of intent to negotiate an agreement to license its SON-081 and SON-080 assets, both low-dose formulations of Interleukin 6 (IL-6), for diabetic peripheral neuropathy (DPN) and chemotherapy-induced peripheral neuropathy (CIPN) to New Life Therapeutics Pte. Ltd. of Singapore. The licensed territory would include the ASEAN countries of Singapore, Malaysia, Indonesia, Thailand, The Philippines, Cambodia, Brunei, Vietnam, Myanmar and Lao PDR. The transaction is subject to execution of a definitive agreement to be negotiated between Sonnet and New Life. Sonnet is scheduled to receive $500,000 upon final execution of the letter of intent from New Life and could receive an additional $3.5 million in license fees upon execution of the definitive agreement. The letter of intent also stipulates up to $36 million in milestone payments and a royalty of 30% on commercial sales, payable to Sonnet.

As previously announced, COVID-19 has impacted the speed at which the Company is completing some trials, but the Company remains on track to submit an IND for SON-080 in the first half of 2021 and SON-1010 in the second half of 2021. The Company also expects to accrue additional pre-clinical data for its various pipeline products over the coming months, some of which may be appropriate for presentation at upcoming medical conferences.

Fiscal 2020 Third Quarter Ended June 30, 2020 Financial Results

As previously reported, on April 1, 2020, the Company completed its merger transaction with Sonnet Sub, whereby Sonnet Sub became a wholly owned subsidiary of the Company, and the business of Sonnet Sub became that of the Company. On April 2, 2020, the Company's common stock began trading on The Nasdaq Capital Market under the symbol "SONN."

Jay Cross, CFO, elaborated on the Company's capital structure, saying, "With the warrant exchange transaction completed, we have good visibility into our pro forma fully diluted share count. At approximately 29.3 million shares, assuming the exercise of the remaining Series A warrants, the share count is significantly below the potential 39.7 million shares that could have existed under the original terms of the $19.0 million private placement transaction. Importantly, this new pro forma number includes 11.3 million Series C warrants that, if exercised, would bring in gross proceeds to the Company of $36.1 million."

As of June 30, 2020, Sonnet had $3.1M cash on hand. As previously reported, on August 4, 2020, Sonnet announced that it had signed warrant exercise and amendment agreements with existing institutional investors that are expected to provide the Company with gross proceeds of up to $10.5 million, while adjusting the shares underlying and removing the warrant share reset provisions from the Company's outstanding Series B Warrants issued in April 2020. Under the agreements, the existing warrant holders agreed to exercise, subject to the ownership blockers contained therein, an aggregate of approximately 3.3 million Series A Warrants that were originally issued in April 2020 at a reduced exercise price, determined at-the-market under Nasdaq rules, of $3.19 per share, and will receive, upon the exercise of the Series A Warrants, an aggregate of up to approximately 11.3 million newly issued Series C Warrants. The Series C Warrants will have an exercise price of $3.19, will not contain subsequent issuance price protection, will not be exercisable for six months after issuance and will expire on October 16, 2025. In addition, the Series B Warrants were amended to be exercisable for an additional approximately 2.3 million shares in the aggregate, exercisable only after a holder's repriced Series A Warrants have been exercised in accordance with the agreements, and the provisions for future warrant share resets contained in the Series B Warrants were eliminated. After the exercise of all the Series A Warrants as provided in the agreements, the Company will have 14,724,105 shares of common stock outstanding, 2,308,663 Series B Warrants outstanding and 11,329,436 Series C Warrants outstanding. In the event all the Series C Warrants were exercised for cash, the Company could receive up to an additional $36.1 million.
Research and development expenses were $2.5 million for the three months ended June 30, 2020, compared to $0.4 million for the three months ended June 30, 2019. The increase of $2.1 million was primarily due to the development of the cell line for IL12-FHAB and IL12- FHAB-IL15 manufacturing and increased costs for research and development activities due to the acquisition of Relief.
General and administrative expenses were $2.5 million for the three months ended June 30, 2020, compared to $1.0 for the three months ended June 30, 2019. The increase of $1.5 million was primarily due to a $1.0 million increase in professional fees and transaction related fees associated with the closing of the Merger, $0.3 million increase in insurance expenses related to directors and officer's insurance. The remainder of the increase is due to scaling up of operations including those related to Relief.
A $20 million share subscription facility remains in place, access to which is subject to certain conditions. The Company has $20 million remaining in this facility.

About Sonnet BioTherapeutics Holdings, Inc.

Founded in 2011, Sonnet BioTherapeutics is an oncology-focused biotechnology company with a proprietary platform for innovating biologic drugs of single or bispecific action. Known as FHAB (Fully Human Albumin Binding), the technology utilizes a fully human single chain antibody fragment (scFv) that binds to and "hitch-hikes" on human serum albumin (HSA) for transport to target tissues. FHAB is the foundation of a modular, plug-and-play construct for potentiating a range of large molecule therapeutic classes, including cytokines, peptides, antibodies and vaccines.

Forward-Looking Statements

This press release contains certain 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 Private Securities Litigation Reform Act, as amended, including those relating to the Company's product development, clinical and regulatory timelines, market opportunity, competitive position, possible or assumed future results of operations, business strategies, potential growth opportunities and other statements that are predictive in nature. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management's current beliefs and assumptions.

These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential, "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include those set forth in the Company's filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Sonnet Biotherapeutics Investor Contact

Alan Lada
Solebury Trout
617-221-8006
alada@soleburytrout.com

Sonnet BioTherapeutics Holdings, Inc.
Balance Sheets
(unaudited)

 
June 30,
 
 
September 30,
 

 
2020
 
 
2019
 

Assets

Current assets:

Cash

 
$
3,106,592
 
 
$
35,653
 

Prepaid expenses other current assets

 
 
394,967
 
 
 
4,101
 

Total current assets

 
 
3,501,559
 
 
 
39,754
 

Property and equipment

 
 
70,971
 
 
 
–
 

Operating lease right-of-use asset

 
 
225,065
 
 
 
–
 

Other assets

 
 
82,957
 
 
 
–
 

Total assets

 
$
3,880,552
 
 
$
39,754
 

Liabilities and stockholders' equity (deficit)

Current liabilities:

Related-party notes

 
$
25,919
 
 
$
217,380
 

Accounts payable

 
 
2,421,744
 
 
 
1,842,996
 

Accrued expenses

 
 
702,834
 
 
 
824,865
 

Operating lease liability

 
 
79,157
 
 
 
–
 

Total current liabilities

 
 
3,229,654
 
 
 
2,885,241
 

Note payable

 
 
124,375
 
 
 
–
 

Operating lease liability

 
 
146,703
 
 
 
–
 

Total liabilities

 
 
3,500,732
 
 
 
2,885,241
 

Commitments and contingencies (note 8)

Stockholders' equity (deficit):

Preferred stock; $0.0001 par value: 5,000,000 shares authorized. No shares issued or outstanding

 
 
–
 
 
 
–
 

Common stock; $0.0001 par value: 125,000,000 shares authorized; 9,200,176 and 5,547,643 issued and outstanding at June 30, 2020 and September 30, 2019, respectively

 
 
920
 
 
 
555
 

Additional paid-in capital

 
 
29,563,893
 
 
 
9,594,100
 

Accumulated deficit

 
 
(29,184,993
)
 
 
(12,440,142
)

Total stockholders' equity (deficit)

 
 
379,820
 
 
 
(2,845,487
)

Total liabilities and stockholders' equity (deficit)

 
$
3,880,552
 
 
$
39,754
 

Sonnet BioTherapeutics Holdings, Inc.
Statements of Operations
(unaudited)

 
Three Months Ended June 30,
 
 
Nine Months Ended June 30,
 

 
2020
 
 
2019
 
 
2020
 
 
2019
 

Operating expenses:

Research and development

 
$
2,455,822
 
 
$
391,914
 
 
$
5,166,485
 
 
$
616,325
 

Acquired in-process in-process research and development

 
 
6,826,495
 
 
 
–
 
 
 
6,826,495
 
 
 
–
 

General and administrative

 
 
2,484,148
 
 
 
1,012,290
 
 
 
4,753,428
 
 
 
1,212,588
 

Loss from operations

 
 
(11,766,465
)
 
 
(1,404,204
)
 
 
(16,746,408
)
 
 
(1,828,913
)

Interest income (expense)

 
 
(3,798
)
 
 
(11,855
)
 
 
10,344
 
 
 
(162,873
)

Foreign exchange loss

 
 
(8,787
)
 
 
–
 
 
 
(8,787
)
 
 
–
 

Net loss

 
$
(11,779,050
)
 
$
(1,416,059
)
 
$
(16,744,851
)
 
$
(1,991,786
)

Per share information:

Net loss per share of common stock, basic and diluted

 
$
(1.05
)
 
$
(0.26
)
 
$
(2.23
)
 
$
(0.38
)

Weighted average shares outstanding, basic and diluted

 
 
11,263,559
 
 
 
5,476,981
 
 
 
7,518,091
 
 
 
5,291,836
 

SOURCE: Sonnet BioTherapeutics Holdings, Inc.

ReleaseID: 601648