MindBeacon Announces Fourth Quarter and Full Year 2020 Financial Results

FOURTH QUARTER AND SUBSEQUENT TO QUARTER END HIGHLIGHTS

• Revenue of $3.8 million compared to $1.2 million in Q4 2019.
• Gross profit of $1.8 million (46% margin) compared $0.3 million (26% margin) in Q4 2019.
• Net loss of $3.6 million compared to loss of $1.1 million in Q4 2019.
• MindBeacon closed its $65 million initial public offering on December 23, 2020.
• MindBeacon launched its revamped platform on January 6, 2021.
• MindBeacon Asynchronous iCBT has been included as part of Wellness Together Canada program offering, which launched in January, 2021.
• MindBeacon announced the upcoming launch of several new service offerings.

TORONTO, March 17, 2021 /CNW/ - MindBeacon Holdings Inc. ("MindBeacon" or the "Company") (TSX: MBCN), a company specializing in the delivery of a comprehensive continuum of mental healthcare, using digital technologies, announces its financial results for the three months and year ended December 31, 2020. All amounts are in thousands of Canadian dollars unless otherwise stated.  

OPERATING RESULTS SUMMARY

Quarterly Asynchronous Cases (CNW Group/MindBeacon Holdings Inc.)

Synchronous 30-Minute Sessions (CNW Group/MindBeacon Holdings Inc.)

Selected Consolidated Financial Information		Three Months Ended			Year Ended
(C$ thousands, except per share amounts or otherwise stated)		December 31,			December 31,
		2020	2019		2020	2019
Cases (Asynchronous Therapist-Assisted iCBT)		6,639	492		13,712	1,476
Sessions (Synchronous Therapy)		8,614	7,407		31,264	29,673
Revenue
Asynchronous Therapist-Assisted iCBT		2,839	355		6,885	1,130
Synchronous Therapy		978	835		3,565	3,618
		3,817	1,190		10,450	4,748
Less: Client care costs
Asynchronous Therapist-Assisted iCBT		1,416	317		3,383	1,162
Synchronous Therapy		637	559		2,306	2,295
		2,053	876		5,689	3,457
Gross profit
Asynchronous Therapist-Assisted iCBT		1,423	38		3,502	(32)
Synchronous Therapy		341	276		1,259	1,323
		1,764	314		4,761	1,291
Gross profit margin
Asynchronous Therapist-Assisted iCBT		50%	11%		51%	(3%)
Synchronous Therapy		35%	33%		35%	37%
		46%	26%		46%	27%
Adjusted EBITDA		(1,693)	(869)		(6,872)	(5,308)
Net loss		(3,610)	(1,148)		(10,172)	(6,412)
Loss per share (basic and diluted)		($0.48)	($0.19)		($1.60)	($1.07)

At MindBeacon, we are developing a continuum of mental healthcare. We offer access to a range of therapy options that can be personalized and are delivered by regulated mental health professionals. We employ a stepped-care approach designed to offer supports to clients appropriate to their level of need, throughout their lifelong mental health journey. Our mission is to revolutionize access and the pathways to mental health care, and deliver high-quality, effective, evidence-based outcomes for our clients. Our vision is a world of healthier minds and better lives. MindBeacon is growing and is changing the therapy landscape through the following:

• We have developed our own proprietary MindBeacon platform;
• We are highly focused on outcomes data measurement;
• We are driving up the efficacy and benefits of therapy for our users and driving down the cost to our customers;
• We have developed and continue to build out a broad commercial network;
• We are continuing to add new services creating by far the most robust mental healthcare company in Canada; and
• We have identified a number of levers for growth, both near-term and mid-term.

"2020 was a pivotal year for MindBeacon. In response to the demand generated by both the growth in mental health awareness and the pandemic, we scaled our business massively while maintaining and growing our offerings and outcomes. We are continuing to add new services, creating what we believe is the most robust mental healthcare company in Canada, that no other company is close to matching. In addition, we successfully completed our Initial Public Offering" said Sam Duboc, Chair and CEO of MindBeacon. "We are very thankful for the support we have received from the investment community and we see the success of the IPO validating our strategy. When we started, digital and virtual mental healthcare was relatively new and unknown, and we worked hard to build awareness. As we move forward, we have a lot of work ahead of us and we are now focused on growing our consumer base and enterprise membership in existing geographies as well as expanding into new geographies such as the U.S. We are also expanding use cases and our continuum of care and we continue to produce successful client outcomes.  We see significant opportunity to incorporate artificial intelligence and machine learning into our platform driving further value and enhancing our capabilities and efficiencies and most importantly our ability to help more people get the care they need."

"We are proud of what we have achieved; being one of the first to bring this approach to Canadians providing a new way of accessing therapy. We see significant opportunity as our Asynchronous platform provides a cost effective, stigma reducing avenue to address mental health therapy. The adoption of this platform has seen significant success."

"Regarding our financial performance, this year we invested in the business, while continuing to generate strong gross margins. Our financial position was further strengthened with the completion of our $65 million IPO that expanded our institutional shareholder base and provided us with the needed resources to support our organic and acquisitive growth initiatives."

"At MindBeacon, we take great pride in being serious about the importance of ESG investing and in the societal benefits of our platform as it has proven to break down the barriers of stigma, time, and availability that pursuing mental health can present. Our enhanced stronger minds platform will launch in April and will be offered free of charge to all Canadians. It will include a new "Let's Talk About Mental Health" video blog series, a new Q&A section called "Ask a Therapist", and a monthly news letter including the latest resources and content, curated by MindBeacon's Clinical Director, Dr. Khush Amaria PhD, CPsych. Additionally, as we continue to drive down the cost of delivering mental health treatment, more Canadians will be able to afford the help they need to become mentally healthy, allowing them to enjoy their lives and the people in it."

The Company also announced today that Rich Osborn has resigned as a director from its board of directors.  Mr. Sam Duboc, Chairman of MindBeacon said: "Rich has been valuable member of the Board and we thank him for his contribution over his tenure."       

FINANCIAL REVIEW

Revenue

(In thousands of Canadian dollars)	Three Months Ended December 31,			Year Ended December 31,
	2020	2019		2020	2019
Revenue
Asynchronous Therapist-Assisted iCBT	2,839	355		6,885	1,130
Synchronous Therapy	978	835		3,565	3,618
	3,817	1,190		10,450	4,748

Asynchronous Therapist-Assisted iCBT

Asynchronous revenue for the year ended December 31, 2020 increased by $5.8 million, or 509%, to $6.9 million compared to $1.1 million for the same period in 2019. Asynchronous revenue for the three months ended December 31, 2020 was $2.8 million, an increase of 700% compared to $0.4 million for the same period in 2019. The increases during these periods were due to the continued uptake of asynchronous services by subscription-based and per-case customers from increased market penetration. Customers are gravitating towards asynchronous care due to its convenience, cost effectiveness and evidence-based outcomes. The growth in per-case revenues has benefitted from the Ontario Government Program, which contributed to growth of 242% in the asynchronous segment for the year ended December 31, 2020 and 421% in the three months ended December 31, 2020. Excluding the Ontario Government Program, the growth in the asynchronous segment was 267% for the year ended December 31, 2020 and 279% in the three months ended December 31, 2020 compared to the prior year periods. The Company believes that there is an opportunity for revenues to continue to grow under this program. However, the program does represent a revenue concentration risk. The Company's asynchronous case count for the past four quarters was 6,639 in Q4 2020, 4,010 in Q3 2020, 2,511 in Q2 2020 and 552 in Q1 2020. Average revenue per case was lower in the asynchronous segment in the fourth quarter of 2020, when compared to the third quarter of 2020, as we launched new clients that had significant levels of uptake in the first three months. We expect this to normalize over the duration of the contracts.    

Synchronous Therapy

Synchronous revenue for the year ended December 31, 2020 marginally decreased by $0.1 million, or 1%, to $3.5 million compared to $3.6 million for the same period in 2019. The decrease in revenue during the year was due to a reduction of in-clinic services at the start of the COVID-19 pandemic during March through May 2020. The Company migrated substantially all in-clinic services to virtual delivery and saw monthly revenue return to pre-COVID-19 levels by the end of the second quarter. Synchronous revenue for the three months ended December 31, 2020 was $1.0 million, an increase of 17% compared to $0.8 million for the same period in 2019. The increase in revenue was due to increased adoption of the Company's virtual delivery, a trend that has been seen since the end of the second quarter. The Company's synchronous count for 30-minute sessions for the past four quarters was 8,614 in Q4 2020, 8,381 in Q3 2020, 7,001 in Q2 2020 and 7,268 in Q1 2020.

Client Care Costs

(In thousands of Canadian dollars)	Three Months Ended December 31,			Year Ended December 31,
	2020	2019		2020	2019
Client care costs
Asynchronous Therapist-Assisted iCBT	1,416	317		3,383	1,162
Synchronous Therapy	637	559		2,306	2,295
	2,053	876		5,689	3,457

Client care costs for asynchronous therapy for the year ended December 31, 2020 increased by $2.2 million, or 191%, to $3.4 million compared to $1.2 million for the same period in 2019. Client care costs for asynchronous therapy for the three months ended December 31, 2020 increased by $1.1 million, or 347%, to $1.4 million compared to $0.3 million for the same period in 2019. The increase in both periods was due to the need for additional therapist capacity to service higher asynchronous therapist-assisted iCBT volumes during the period, in-line with higher revenue.

Client care costs for synchronous therapy for the year ended December 31, 2020 remained consistent with the same period in 2019 at $2.3 million. The costs remained consistent given revenue was relatively consistent in both years. Client care costs for synchronous therapy for the three months ended December 31, 2020 were $0.6 million or 14% higher than the same period in 2019, in-line with revenue growth which was up 17% from the same period in 2019.

Gross Profit and Gross Profit Margin

(In thousands of Canadian dollars)	Three Months Ended December 31,			Year Ended December 31,
	2020	2019		2020	2019
Gross profit
Asynchronous Therapist-Assisted iCBT	1,423	38		3,502	(32)
Synchronous Therapy	341	276		1,259	1,323
	1,764	314		4,761	1,291
Gross profit margin
Asynchronous Therapist-Assisted iCBT	50%	11%		51%	(3%)
Synchronous Therapy	35%	33%		35%	37%
	46%	26%		46%	27%

Gross profit for the year ended December 31, 2020 was $ 4.8 million compared to $1.3 million for the same period in 2019. Gross profit for the three months ended December 31, 2020 was $1.8 million compared to $0.3 million in 2019. Gross profit margin for the year ended December 31, 2020 was 46% compared to 27% in the same period in 2019. Gross profit margin for the three months ended December 31, 2020 was 46%, compared to 26% for the same period in 2019.

Gross profit margin in the asynchronous segment was 50% in the fourth quarter of 2020, compared to 11% in the comparative period. Gross profit margin in the asynchronous segment was 51% in the year ended December 31, 2020, compared to negative 3% in the comparative period. In 2020, growth in revenue and higher volumes in the asynchronous segment resulted in more efficient clinician utilization and operational leverage and higher gross profit. Gross profit margin in the fourth quarter was slightly lower than the third quarter of 2020 due to the launch of new clients and increased volumes from certain clients which have slightly lower revenue per case compared to the rest of our book of business. When we launch large new subscription clients there is typically higher uptake upfront that begins to normalize over the course of the contract.

Gross profit margin in the synchronous segment was 35% in the fourth quarter of 2020, compared to 33% in the comparative period. Gross profit margin in the synchronous segment was 35% in the year ended December 31, 2020, compared to 37% in the comparative period. In the fourth quarter of 2020, gross profit was higher in the synchronous segment compared to the same period in 2019, due to slightly higher average revenue per session and slightly lower client care costs per session. During the year ended December 31, 2020 synchronous therapy gross profit and gross profit margins were lower than the comparative periods as a result of the initial impact of COVID-19 before the Company migrated substantially all in-clinic services to virtual delivery and saw gross margins return to pre-COVID-19 levels.

The Company has achieved increasing gross profit and gross profit margins over the last four quarters driven by top-line growth, the benefit of operational leverage, and an increasing percentage of asynchronous revenue. Consolidated gross profit was $1.8 million in Q4 2020, $1.5 million in Q3 2020, $1.0 million in Q2 2020 and $0.5 million in Q1 2020. Consolidated gross profit margins were 46% in Q4 2020, 49% in Q3 2020, 44% in Q2 2020 and 37% in Q1 2020.

Asynchronous segment gross profit margins were 50% in Q4 2020, 54% in Q3 2020, 49% in Q2 2020 and 43% in Q1 2020. Asynchronous segment gross profit was $1.4 million in Q4 2020, $1.2 million in Q3 2020, $0.7 million in Q2 2020 and $0.2 million in Q1 2020. Synchronous segment gross profit margins were 35% in Q4 2020, 37% in Q3 2020, 35% in Q2 2020 and 34% in Q1 2020. Synchronous segment gross profit was $0.3 million in Q4 2020, $0.4 million in Q3 2020, $0.3 million in Q2 2020 and $0.3 million in Q1 2020.

Adjusted EBITDA^[1]

For the year ended December 31, 2020, Adjusted EBITDA decreased by $1.6 million, or 29%, to ($6.9) million compared to ($5.3) million for the same period in 2019. During the year gross profit was higher by $3.5 million or 269%, offset primarily by higher selling and marketing expenses, investment in product and development, higher SR&ED credits in the prior year related to 2017 and 2018, and higher general and administrative expenses.

For the three months ended December 31, 2020, Adjusted EBITDA decreased by $0.8 million, or 95%, to ($1.7) million compared to ($0.9) million for the same period in 2019. During the period, gross profit increased by $1.5 million or 462%, offset by higher SR&ED credits in the prior year related to 2018, and higher selling and marketing expenses, product and development expenses and general and administrative expenses.

[1]  Represents a non-IFRS measure. For the relevant definitions, see the " CAUTIONARY NOTE REGARDING NON-IFRS MEASURES" section of this press release. Management believes non-IFRS measures, including EBITDA and Adjusted EBITDA provide supplementary information to IFRS measures used in assessing the performance of the business.

LIQUIDITY AND CAPITAL RESOURCES

In the fourth quarter of 2020 we completed our initial public offering and raised gross proceeds of $65 million. We will use the funds to develop a continuum of care on our MindBeacon platform, create proprietary intellectual property, and establish broad commercial distribution.

Excluding deferred revenue and warrant liabilities, our working capital as at December 31, 2020 was $64.3 million. Given our existing cash balances, we believe there is sufficient liquidity to meet our current and short-term financial obligations and fund our organic growth strategy.

CASH FLOW

The following table provides an overview of the Company's cash flows for the periods indicated:

In thousands of Canadian dollars	Fiscal Year Ended December 31,
	2020	2019
Cash provided by (used in):
Operating activities	(5,748)	(5,612)
Investing activities	(2,495)	(1,473)
Financing activities	63,872	14,430
Net increase (decrease) in cash	55,539	7,345

Operating Activities

Cash used in operating activities for the year ended December 31, 2020 increased by $0.1 million, or 2%, to $5.7 million, compared to $5.6 million for the same period in 2019. The increase was primarily attributable to increased net loss for the year ended December 31, 2020, offset by an increase in non-cash expenses and changes in the working capital.

Investing Activities

Cash used in investing activities for the year ended December 31, 2020 increased by $1.0 million, or 69%, to $2.5 million compared to $1.5 million for the same period in 2019. The increase was primarily driven by $0.8 million of incremental additions to internally-developed software compared to the prior period as we continue to invest in the MindBeacon platform. In addition, we had received a lease inducement of $0.2 million in 2019 related to the Company's head office location that did not reoccur in 2020.

Financing Activities

Cash generated from financing activities for the year ended December 31, 2020 increased by $49.4 million, or 342%, to $63.8 million, compared to $14.4 million in the same period in 2019. The increase was primarily due to the cash generated from the initial public offering undertaken by the Company in December 2020 which contributed gross proceeds of $65 million and receipt of government loans under the Contribution Agreement with the Federal Economic Development Agency of Southern Ontario offset by financing fees associated with the IPO. Further, in 2019 there was approximately $15.8 million generated from issuances of Preferred Shares and convertible debentures which did not reoccur in 2020. 

Capital Expenditures

Our capital expenditures include internally-generated intangibles, information technology hardware, leasehold improvements and office furniture.

Capital expenditures for the year ended December 31, 2020 increased by $0.8 million, or 45%, to $2.5 million, compared to $1.7 million for the same period in 2019. During the period we capitalized slightly more internally-developed software costs.

OUTSTANDING SHARE INFORMATION

The Company is authorized to issue an unlimited number of common shares and preferred shares. As of December 31, 2020, there are 23,634,105 Common Shares and nil Preferred Shares outstanding.

The number of Common Shares reserved for issuance under the Company's Omnibus Incentive Plan and Legacy Incentive Plan is 3,545,115. As of December 31, 2020, the number of stock options that are outstanding, including those that remain unvested, that may be converted to common shares is 2,183,893. 

The Company has an outstanding warrant with Green Shield that will allow them to purchase 453,667 shares at an exercise price of $3.202 that is contingent on the counterparty achieving certain sales referral targets. The warrants will only vest and become exercisable if Green Shield makes the Company's service offerings part of the core benefit plans of at least 150,000 participants by March 31, 2021 (the "Vesting Condition"). If the Vesting Condition is met, then the warrants will remain exercisable for a period of two years following the date on which the Vesting Condition is met, and if the Vesting Condition is not met, the warrants will expire on March 31, 2021. As of the date hereof, the Company believes that Green Shield has made the Company's service offerings part of the core benefit plans of approximately 40,000 participants.

SUBSEQUENT TO QUARTER END HIGHLIGHTS

MindBeacon completed the development of its revamped platform which launched on January 6, 2021. With the launch of the platform MindBeacon now offers Canadians a full spectrum of digital mental health support ranging from digital therapist-guided programs, live therapy sessions, immediate crisis support in partnership with Kids Help Phone and a range of free mental health resources through an online community.

MindBeacon Asynchronous iCBT has been included as part of Wellness Together Canada program offering, which launched in January 2021.

MindBeacon announced on March 17, 2021 the upcoming launch of several new service offerings and freely available expert resources that will provide more robust treatment options as the global pandemic enters its second year.

• Enhanced Stronger Minds will be offered free of charge to all Canadians and will include a new "Let's Talk About Mental Health" video blog series, a new Q&A section dedicated to addressing the most pressing issues among those who visit the site called "Ask a Therapist", and a monthly news letter including the latest resources and content, curated by MindBeacon's Clinical Director, Dr. Khush Amaria PhD, CPsych.
• Therapist Direct Messaging will provide Canadians with a safe, affordable and effective homegrown platform on which to freely discuss what's on their mind with a dedicated mental health professional on their own schedule.
• New Peer to Peer Community (in partnership with Togetherall) will provide an anonymous community where members dealing with unmanageable levels of stress or anxiety can actively support each other, 24 hours a day, 365 days a year.

OUTLOOK

The pandemic has completely changed our world. It's time that mental health care embraces those changes and provides the support that patients need, when, where and how they need it. We are proud of our performance in 2020 across all aspects of our business and we are well positioned to keep the momentum going in 2021 and beyond.

MindBeacon ended the fourth quarter with over $64 million of available liquidity to pursue our multifaceted growth strategies, which include growing our consumer base and enterprise membership in existing markets and expanding into new geographies, expanding use cases and its continuum of care, investing in artificial intelligence and machine learning, pursuing selective acquisitions that expand our offering, provide geographic diversification and offer strong economics, and build and implement our BEACON in a Box product offering, which is a mid-term objective.

We are excited by the outlook for MindBeacon and are confident we have the people and the assets to succeed.

FOURTH QUARTER 2020 CONFERENCE CALL

MindBeacon will hold a conference call on Thursday March 18, 2021 at 8:30 a.m. Eastern Time to discuss its Q4 and Full-Year 2020 results. The call will be hosted by Mr. Sam Duboc, Chair and CEO and Mr. John Plunkett, Chief Financial Officer.

DATE:	Thursday, March 18, 2021
TIME:	8:30 a.m. Eastern Time
DIAL-IN NUMBER:	North American Toll Free: 888-390-0605, Toronto: 416-764-8609
WEBCAST LINK:	https://produceredition.webcasts.com/starthere.jsp?ei=1438770&tp_key=1126ef3c03
TAPED REPLAY:	Number: 888-390-0541, Replay Code: 107111 #

A link to the live audio webcast of the conference call will also be available on the events page of the investors section of MindBeacon's website at https://ir.mindbeacon.com/overview/default.aspx. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to hear the webcast. The taped replay will be available for 7 days.

ABOUT MINDBEACON HOLDINGS, INC.

MindBeacon is developing a continuum of mental healthcare that includes self-guided psychoeducational and wellness content, Therapist Guided Programs and Live Therapy Sessions all offered virtually through their secure platform. As one of the first commercially available, digitally-native platforms to offer therapist-assisted internet-based Cognitive Behavioural Therapy in Canada, MindBeacon's professional service is designed around end users – their health, their way. Working with employers, insurance carriers and government ministries, MindBeacon's services are accessible, affordable and, most importantly, proven to be effective. MindBeacon is changing the therapy landscape by making professional care available to every Canadian, no matter when, where and how they choose to access it.

CAUTIONARY NOTE REGARDING NON-IFRS MEASURES

This press release makes reference to certain non-IFRS measures. These measures are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. MindBeacon uses the non-IFRS measures "EBITDA" and "adjusted EBITDA". EBITDA and adjusted EBITDA are intended to represent an indication of MindBeacon's capacity to generate profit from operations before taking into account management's financing decisions and costs of consuming intangible and tangible capital assets, which vary according to their vintage, technological currency, and management's estimate of their useful life. EBITDA represents net profit or loss before income tax expenses, finance costs and depreciation and amortization. Finance costs represent non-cash interest on convertible debentures, interest expense on lease liabilities and accretion of non-cash interest expense on government loans. Adjusted EBITDA represents EBITDA before taking into account certain unusual expenses. We also believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information can, but may not always, be identified by the use of words such as "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "would", "should", "believe", and similar references to future periods or the negatives of these words and expressions. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.

Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that MindBeacon considered appropriate and reasonable as of the date such statements are made, and is subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, the risk factors identified under "Risk Factors" in MindBeacon's supplemented PREP prospectus dated December 17, 2020, its Management's Discussion & Analysis ("MD&A") under the heading "Risks and Uncertainties" dated March 17, 2021 and in other filings that MindBeacon has made and may make in the future with applicable securities authorities, all of which are available under MindBeacon's SEDAR profile at www.sedar.com. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking information is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this news release represents MindBeacon's expectations as of the date hereof, and is subject to change after such date. However, MindBeacon disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. All of the forward-looking information contained in this news release is expressly qualified by the foregoing cautionary statements.

MindBeacon Holdings Inc.
Consolidated Statements of Financial Position
(In thousands of Canadian dollars)
As at December 31, 2020 and 2019
	December 31, 2020	December 31, 2019
	$	$
Assets
Current
Cash and cash equivalents	67,010	11,471
Accounts receivable	3,903	2,216
Prepaid expenses	268	169
Total current assets	71,181	13,856
Property and equipment	684	936
Right–of–use assets	799	1,790
Intangible assets	1,809	736
Total assets	74,473	17,318
Liabilities and shareholders' equity
Current
Accounts payable and accrued liabilities	6,417	788
Deferred revenue	313	464
Current portion of lease liabilities	469	532
Warrant liability	-	492
Total current liabilities	7,199	2,276
Government loans	607	-
Lease liabilities	497	1,604
Total liabilities	8,303	3,880
Shareholders' equity
Issued capital	96,555	33,625
Contributed surplus	422	307
Warrants	-	141
Deficit	(30,807)	(20,635)
Total shareholders' equity	66,170	13,438
Total shareholders' equity and liabilities	74,473	17,318

MindBeacon Holdings Inc.
Consolidated Statements of Loss and Comprehensive Loss
(In thousands of Canadian dollars, except per share amounts)
Years ended December 31, 2020 and 2019
	2020	2019
	$	$
Revenue	10,450	4,748
Client care costs	5,689	3,457
	4,761	1,291
Operating expenses:
Selling and marketing	4,206	2,176
Product and development	2,866	702
General and administrative	4,561	3,721
Depreciation and amortization	1,029	926
Total operating expenses	12,662	7,525
Finance costs	140	178
Loss in fair value of warrant liability	2,131	-
Net loss and comprehensive loss for the year	(10,172)	(6,412)
Loss per share
Basic and diluted	($1.60)	($1.07)

MindBeacon Holdings Inc.
Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)
Years ended December 31, 2020 and 2019
	2020	2019
	$	$
Operating activities
Net loss for the year	(10,172)	(6,412)
Add items not involving cash:
Depreciation of property and equipment	331	235
Depreciation of right–of–use assets	528	578
Amortization of intangible assets	170	113
Share–based payment expense	115	91
Interest expense on lease liabilities	87	124
Non-cash interest expense on government loans	53	-
Non-cash government grant recognized on government loans	(192)	-
Non-cash interest on convertible debenture	-	54
Loss on fair value adjustment of warrant liability	2,131	-
Working capital adjustments:
Decrease in accounts receivable and prepaid expenses	(802)	(659)
Increase in accounts payable, accrued liabilities and deferred revenue	2,003	264
Cash used in operating activities	(5,748)	(5,612)
Financing activities
Proceeds on issue of convertible debenture	-	3,956
Payment of principal and interest on lease liabilities	(794)	(658)
Issuance of Class A Preferred Shares and warrants	-	11,800
Issuance of common shares and conversion of warrants	63,350	-
Proceeds from over-allotment owing to selling shareholders	3,124	-
Financing fees paid on issuance of shares	(2,833)	(668)
Proceeds from government loan	935	-
Cash provided by financing activities	63,782	14,430
Investing activities
Additions to property and equipment	(79)	(95)
Additions to intangible assets	(2,416)	(1,622)
Right-of-use asset lease inducement	-	244
Cash used in investing activities	(2,495)	(1,473)
Net increase in cash and cash equivalents during the year	55,539	7,345
Cash and cash equivalents, beginning of year	11,471	4,126
Cash and cash equivalents, end of year	67,010	11,471

SOURCE MindBeacon Holdings Inc.

MINDBEACON CONTACT INFORMATION: Investor relations, David Galison, (p): [phone], (e): [email protected]; Media Relations, (e): [email protected]