TORONTO, ON / ACCESSWIRE / August 18, 2021 / NEXGENRX INC. (TSXV:NXG) ("NexgenRx" or the "Company") is pleased to announce its interim financial results for the second quarter ended June 30, 2021, which continue to build upon the Company's positive 2020 year-end and Q1 2021 results. Despite the continued lockdowns due to COVID-19 throughout the second quarter, the Company's Q2 revenue was $2,761,544, an increase of $356,305 (14.8%) compared to the same period in 2020. Gross profit for Q1 2021 was $2,223,737, an increase of $97,440 compared to Q1 2020. The Company's net income for the quarter was $380,106, a drop of $98,998 over Q2 2020, mainly due to substantial investments made in the Company's technology platform. Adjusted EBITDA for the quarter was $867,215, representing an increase of $88,357 or 11.3% over same period in the prior year.
Despite the uncertainties of COVID-19, the Company is in a stronger position today than it was one year ago. The Company has continued to generate increased positive EBITDA and free cash flow, operated effectively and safely through the pandemic, paid down all outstanding debt, lowered costs, and finished the quarter with continued increases in sales. The Company is well positioned for continued growth during the balance 2021.
One of the Company's greatest strengths is its efficient low-cost structure. The Company has emphasized keeping its costs low, plus looking for further cost-reduction opportunities, and these efforts have shown their value in the Company's ability to generate increasing EBITDA and additional shareholder value.
The effective cost containment measures continued in Q2 2021, despite being in the second stage of re-opening. Total operating expense was $195,438, or 11.7% higher compared to the same period of the prior year, attributed to a return to full compensation levels this year, as well as the amortization of intangible assets, which started in October 2020 when the Company completed its major .NET re-write of NexSYS, the Company's core software application.
Product Development
The final step in the .NET re-write of the Company's claims adjudication platform will be the implementation with one of the Company's major Software as a Service (SaaS) clients set for Q3. In addition, the Company continues to rapidly enroll more targeted healthcare providers to submit claims via the Company's proprietary secure web-portal, theclaimsXchange.com. Other exciting development projects have continued during the year, with the goal of continued innovation providing leading-edge technology solutions for the Company's customers, plan sponsors and their members.
"As we start to emerge from the extraordinary global and financial challenges of the past 15 months, I am extremely proud of what we have been able to accomplish. The Company's foundational strength and the agility of our operating model, in addition to the unparalleled commitment of a resilient workforce, allowed us to finish another consecutive quarter with solid performance, setting the stage for continued growth in 2021" stated Ron Loucks, President & CEO.
The Company also announces the grant to an officer of NexgenRx of an aggregate of 250,000 options to acquire common shares in the capital of NexgenRx at a price of $0.35 for a period of 10 years. Each of the foregoing options shall vest as to 33.3% each year for three years, beginning on the first anniversary of the grant date. All of the options granted today (and the common shares issuable upon exercise) will be subject to applicable securities law hold periods.
About NexgenRx
NexgenRx is Canada's only independent full-service Third-Party Administrator and Technology Solutions Provider, offering proprietary full front-end, eligibility, enrollment, hour bank and mobile access capabilities, together with state-of-the-art claims adjudication and full provider network coverage. These combined capabilities allow NexgenRx to provide Plan Sponsors, sophisticated administration and health benefit technology applications in a cost-effective SaaS (Software As a Service) Model.
NexgenRx is committed to building partnerships with organizations looking to exceed the expectations of their clients and plan members and deliver superior administration and claims processing solutions at a competitive cost. More information on NexgenRx can be found at www.nexgenrx.com.
Caution Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although management believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. The Company cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: uncertainty as to whether the Company's strategies and business plans will yield the expected benefits; availability and cost of capital; the ability to identify and develop and achieve commercial success for existing and new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; continued development and enhancement of the Company's proprietary software technology; cyber security risks and the other risks and uncertainties disclosed in the Company's annual Management's Discussion and Analysis, as filed under the Company's profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. The Company undertakes no duty to update any of the forward-looking information to conform such information to actual results or to changes in the Company's expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
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 the release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Ronald C. Loucks
NexgenRx Inc.
President and CEO
416.695.3393 x801
Kelly Ehler CPA, CA
NexgenRx Inc.
Chief Financial Officer
416-695-3393x803
SOURCE: NexgenRx Inc.
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