NexgenRx Announces 2021 Year End Results with Significant Revenue Growth and $3.5m EBITDA

TORONTO, ON / ACCESSWIRE / March 25, 2022 / NEXGENRX INC. ("NexgenRx" or the "Company") is pleased to announce its annual financial results for the year ended December 31, 2021, highlighted by 12.01% revenue growth and EBITDA for the year of $3,503,957.

Despite the many challenges created by COVID-19, this is the second consecutive year that the Company has achieved positive financial results, through its efforts in increasing operational efficiency as well as effective cost control strategies. Unadjusted Company revenue increased by $799,962 or 7.25% over the prior year. Adding to the significance of this increase is that the Company's 2020 Revenue included the Canada Emergency Wage Subsidy (CEWS), amounting to $469,380. In other words, the Company's CEWS adjusted revenue growth in 2021 was $1,269,342 or 12.01%. Company net income for the year was $4,017,879, an increase of $1,902,144 or 89.90% over the prior year, which included a deferred tax recovery $2,022,736. EBITDA for the year was $3,503,957, representing an increase of $468,949 or 15.45% over the prior year.

The cost control measures put in place since Q2 2020 continued in 2021, which have proven to be very effective. The operating results represent a significant revenue growth, while keeping operating expenses flat to the prior year. The Company continued to maintain sufficient liquidity to satisfy all of its financial obligations during 2021. Management continues to monitor and analyze the extent of the financial impact of the COVID-19 pandemic and will take all necessary steps to keep revenue and expenses aligned to ensure the financial integrity of the Company.

The significant step in the .NET re-write of the Company's claims adjudication platform was completed in December 2021, and has now been fully implemented with one of the Company's major Software as a Service (SaaS) clients. 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. The Company has started other exciting development projects in 2022, with the goal of continued innovation providing leading-edge technology solutions for NexgenRx customers, plan sponsors and their members.

Ron Loucks, President and CEO, commented: "As we come up to the end of the second year of COVID-19 restrictions, we can optimistically say that we are headed in the right direction. This worldwide crisis has brought out the best in NexgenRx. We have worked harder and smarter and productivity level is at all-time high. I am very proud of NexgenRx and all that we have accomplished this year under challenging circumstances, which has culminated in our exceptional financial results, with EBITDA of more than $3.5M. These continued profitable operations and positive cash flow have put us in the enviable position of declaring our first dividend to holders of record, which was paid out in early 2022."

About NexgenRx

NexgenRx is Canada's only independent full-service Third-Party Administrator and Technology Solutions Provider, offering proprietary full front-end, eligibility, enrolment, 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.

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SOURCE: NexgenRx Inc.