RE:Article all Nova Scotia There's no new info in here - just a summary of debt from many directions.....
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The CEO of struggling Halifax biotech MedMira Inc. only took home $7,200 in pay last fiscal year, with
the CFO taking home nothing at all.~
According to financial statements for the fiscal year ended July 31, CEO Hermes Chan was only paid
$7,231 in 2019, representing just 3.6% of his $198,459 compensation package.
The remaining $191,228 is listed as accrued compensation still owed to the company founder. That
goes with the $101,231 Chan accrued in 2018.
Meanwhile CFO Markus Meile didn't take a dime from the company, accruing his entire $149,530 in
compensation. Last year, Meile accrued $230,174.
Company directors, which include Chan, Steven Cummings and Jianhe Mao also received no
compensation.
The cash-strapped firm has never made money, something common in the biotech world where
companies must spend on research and development in hopes of bringing a hit product to market,
or securing a sale to a larger firm.
MedMira has struggled to garner much in the way of revenue in recent years and has engaged in
significant spending cuts to stay afloat. As of July 31, it says it had $88,897 in cash on hand, compared to
a bank indebtedness of $13,940 at the same point in 2018.
It also has loans payable with a carrying value of $8.6 million, up $1 million or 13.2% year-over-year.
MedMira says it's been in negotiations with its debt holders over the last 18 months to ensure
"realistic debt repayment plans."
The company accessed hundreds of thousands in short-term loans from its officers, employees and
directors throughout the year.
Audited financial statements for the fiscal year show revenue from product sales fell 8.2% from $574,860
to $527,445, which the company says was the direct result of its decision to focus on higher profit margin
markets.
Its operating expenses fell $582,024, or 25.2%, from $2.30 million to $1.72 million, which MedMira says
was the direct result of continued cost-cutting.
The company posted a net loss of $2.10 million in 2019, a $403,000 (16.1%) improvement over
2018's $2.51-million loss.
Its fourth-quarter results are unaudited. They show a more drastic 42.4% year-over-year revenue decline
from $172,000 to $99,000. The company says this was due to changes in the order pattern of its two main
customers.
Product royalties fell from $14,000 a year ago to nil. Stripping out operating expenses, the firm posted
a pre-tax loss of $448,000 for the quarter, a 10.9% improvement over Q4 2018's $503,000.
The company closed at $0.02 per share Friday, unchanged on the day (52-week high/low: $0.04/$0.01)