Indiva Limited (NDVAF)

[JohnCM]

Third quarter financial results

November 26th, 2020

HIGHLIGHTS

Quarterly Performance

Gross revenue in Q3 2020 was $3.42 million representing a 22% sequential increase from Q2 2020, and a 1,600% increase year-over-year from Q3 2019.

Net revenue in Q3 2020 was $3.03 million representing a 19% sequential increase from Q2 2020, and a 1,500% increase year-over-year from Q3 2019, driven primarily by sales of Cannabis 2.0 products.

Net revenue from edible products grew to $2.18 million representing 72% of net revenue in Q3 2020, up 42% from $1.54 million in Q2 2020.

Gross margin before fair value adjustments and impairments improved to $0.67 million or 22.2% of net revenue versus nil in Q2 2020 and 14.5% in Q3 2019, due to a shift in product mix to higher-margin products and improved operational utilization.

Operating expenses decreased by 21% versus Q3 2019 and decreased by 30% versus the nine months ended September 30, 2020, primarily due to improved cost control and capitalization of costs related to production.

Comprehensive net loss included one-time expenses and non-cash charges including losses on non-refundable deposits and disposal of equipment totaling $1.27 million. Excluding these charges, comprehensive loss declined to $2.3 million versus $2.6 million in Q3 2019.

The Company closed the final tranche of its $5.18 million equity private placement on August 10, 2020.

Indiva also announced the extension of the maturity of its senior debt to October 31, 2021. As a result, working capital has substantially improved as compared to June 30, 2020.