Nubeva Earns Q2 Net Income of US$294,125 on Revenue of US$927,702

SAN JOSE, Calif., Dec. 16, 2020 (GLOBE NEWSWIRE) — Nubeva Technologies Ltd. (“Nubeva” or the “Company“) (TSX-V: NBVA), announces its unaudited consolidated financial statements for the second quarter ended October 31, 2020. Financial statements along with management discussion and analysis of financial results can be found at www.sedar.com. All dollar amounts in this release are quoted in U.S. Dollars.

“We experienced significant momentum in the second quarter as customers began adding Nubeva’s Symmetric Key Intercept solution to their software security and application monitoring tools,” said Randy Chou, Nubeva’s founder and CEO. “We will continue to license our technology to manufacturers, enabling enterprise users to obtain the visibility they need into network traffic “

During the second quarter Nubeva reported revenue of $927,702 compared with revenue from the same quarter of last year of $38,511. The increase in revenue for the quarter was due to the recognition of revenue from the Company’s license of its Symmetric Key Intercept software (“SKI”) and related support and maintenance, and represents part of a seven figure, multi-year deal. The balance of this contract will be recognized over time.

Nubeva reported net income for the quarter of $294,125 compared with a net loss of $953,670 in the second quarter of last year, primarily due to the increase in revenue, as well as a 27% reduction in expenses.

Selected operating data follows:

Income Statement Data Three Months
ended October
31, 2020
Three Months
ended October
31, 2019
Six Months
ended October
31, 2020
Six Months
ended October
31, 2019
Revenue $ 927,702   $ 38,511   $ 967,315   $ 77,667  
Expenses   728,536     997,749     1,550,500     1,938,390  
Other Items        
Fair value gain (loss) on digital currencies   7,984     (2,901 )   16,711     12,604  
Government assistance   98,305         305,704      
Interest expense   (11,198 )       (11,198 )    
Foreign exchange   (2,290 )   (1,177 )   (18,360 )   (10,125 )
Other income   2,158     15,738     2,575     39,433  
Net income (loss) for the period $ 294,125   $ (947,578 ) $ (287,753 ) $ (1,818,811 )
Other comprehensive gain (loss)        
Foreign currency translation adjustment   (26,261 )   (6,092 )   15,790     (5,658 )
Total comprehensive income (loss) $ 267,864   $ (953,670 ) $ (271,963 ) $ (1,824,469 )
Earnings (loss) per share – basic $ 0.01   $ (0.02 ) $ (0.01 ) $ (0.03 )
Earnings (loss) per share – fully diluted $ 0.00   $ (0.02 ) $ (0.01 ) $ (0.03 )
Weighted average number of common shares – basic   56,372,082     55,816,623     56,314,049     55,759,834  
Weighted average number of common shares – fully diluted   61,392,771     60,665,892     61,334,738     60,609,103  

The Company’s financial position as at October 31, 2020 compared with the Company’s financial position as at April 30, 2020 is as follows:

Balance Sheet Data October 31, 2020
  April 30, 2020
 
Current and total assets $ 1,995,333   $ 2,284,976  
Current liabilities $ 755,252   $ 837,773  
Long-term debt $ 113,931   $ 102,413  
Accumulated deficit $ (13,247,703 ) $ (12,960,121 )
Total Equity $ 1,126,150   $ 1,344,790  

Assets as at October 31, 2020 decreased by $289,643 over assets as at April 30, 2020 due mainly to a decrease in cash and marketable securities of $418,373. The decrease in cash was due primarily to an outflow of cash used for operations. This decrease was partially offset by an increase in the tax credit receivable of $151,139. Subsequent to the end of the quarter the Company collected tax credits in the amount of $324,015. The Company had a working capital surplus of $1,240,081 (April 30, 2020 – $1,447,203). The available working capital as at the date of this MD&A is estimated to be adequate to finance Nubeva’s planned operations over the ensuing six months.

About Nubeva Technologies Ltd.  

Nubeva Technologies Ltd. has changed the decrypted visibility game with pure, symmetric decryption. Nubeva helps enterprises gain the visibility needed through decryption so they can fully inspect network traffic. The need to inspect data in motion is fundamental to network security and application monitoring and assurance. The shift to SaaS, the cloud, 5G and stronger encryption practices like perfect forward secrecy and TLS 1.3, create new and unique challenges for in-line and out-of-band decryption and visibility solutions. Nubeva re-imagined TLS visibility and created a new solution for the modern era of strong encryption in dynamic and distributed compute environments. Visit nubeva.com for more information.

Forward Looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws relating to the Company’s business plans and the outlook of the cybersecurity industry. Although the Company 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, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by applicable securities laws. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its subsidiaries, their securities, or their respective financial or operating results (as applicable).

Neither the 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.

For additional information, please contact:

Nubeva Technologies Ltd.
Juliet Jones, Chief Financial Officer 1(844)538-4638

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