On December 13, 2021 IMMUNOPRECISE ANTIBODIES LTD. (the "Company" or "IPA") (NASDAQ: IPA) (TSX VENTURE: IPA), a leader in full-service therapeutic antibody discovery and development, reported financial results for second quarter fiscal year 2022, which ended October 31, 2021 (Press release, ImmunoPrecise Antibodies, DEC 13, 2021, View Source [SID1234596925]).

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Second Quarter Fiscal Year 2022 Financial Summary*
• The Company achieved revenues of $4.7 million, a decrease of $32,780 or (0.7%) from the same period last year**.
• The Company, primarily through its subsidiary Talem Therapeutics LLC, invested $2.8 million in strategic research and development costs compared to $1.1 million in the same period last year.
• The Company recorded a net loss of $5.0 million during the three months ended October 31, 2021, compared to net loss of $463,584 for the three months ended October 31, 2020.
• Adjusted EBITDA*** was a loss of $2.9 million, as compared to positive EBITDA of $795,159 for the same period last year.
• As of October 31, 2021, the Company held cash of $38.4 million
*Expressed in Canadian dollars, unless otherwise indicated.
**Please see section titled Revenue below for additional information on stated revenue in fiscal year 2021.
***For additional information on Adjusted EBITDA (a non-IFRS measure), please see section entitled Forward-looking statements below.

Dr. Jennifer Bath, CEO of ImmunoPrecise, stated, "We have been tactically investing in R&D to accelerate our Talem pipeline, expand our discovery and characterization platforms, invest in novel and expedited technologies for decoding and delivering next-generation therapeutics, as well as aligning early-stage proof of concept studies with the emerging and swiftly increasing promise of nucleic acid technologies."

"With our expanded European footprint and channel partnerships firmly in place, we have rapidly built the necessary infrastructure to make immediate inroads across the region. As such, we have grown our senior leadership team to manage the ramp-up in growth across the organization prudently. With bold marketing initiatives in place, including the revitalization of IPA’s brand architecture underway, we are well positioned to compete and win, while delivering measurable value creating catalysts to our shareholders. Our core focus continues to move our proprietary potential therapies in Talem Therapeutics forward, close on a broadening pipeline of new CRO business, while advancing our PolyTope Cocktail development program which has taken an even more pressing role in light of the unmet need and total addressable COVID-19 market which we believe we can fill," concluded Dr. Bath.

Recent Second Quarter Fiscal 2022 and Operational Highlights
• IPA prepared a pre-investigational new drug (PIND) application and received feedback from the U.S. Food and Drug Administration (FDA).
• The Company has initiated final IND-enabling studies and has received the initial data related to the safety and toxicity profile of its PolyTope cocktail.
• Based on in silico sequence and structural analysis, the Company anticipates that IPA’s PolyTope will retain activity against Omicron (B.1.1.529), similar to what they have observed in in vitro models for other variants of concern identified previously.
• IPA established a US $50 million at-the-market transaction utilizing H.C. Wainwright & Co. as the sole sales agent.
• The Company established a multi-target research collaboration utilizing ImmunoPrecise’s powerful antibody discovery technologies in combination with the long-standing expertise of Pierre Fabre in immuno-oncology.
• IPA Europe has been granted a three-year approval for the "Crédit d’Impôt Recherche" (CIR) from the French Ministry of Higher Education and Research. CIR is a French R&D tax credit initiative which will provide tax credits to eligible French companies when they engage IPA Europe, Oss, in qualified research and development activities.
• The Company bolstered global senior leadership with Barry Duplantis, Ph.D., promoted to Vice President of Client Relations and the addition of Ms. Carla Dahl, Vice President of Marketing.

Financial Results
Revenue
The Company achieved revenues of $4.7 million during the three months ended October 31, 2021, compared to $4.8 million in fiscal 2021, a $32,780, or (0.7%), decrease. As previously reported, the implementation of a new ERP system, effective for fiscal year 2021, was complicated by travel restrictions due to COVID-19. These complications, along with the new processes and procedures, caused the Company to miscalculate eliminations of intercompany transactions during the first three quarters of fiscal year 2021, primarily related to internal research and development sales to Talem.

The miscalculation resulted in immaterial, but notable, variances in revenues for the first three quarters of fiscal year 2021. The effect of the miscalculation can be seen in Management’s Discussion and Analysis in the Summary of Quarterly Results. Taking into account the prior year miscalculation, total revenues for the three months ended October 31, 2021, would have reflected an increase of 15.5% over prior year. This growth was driven primarily by increased financial value of a partner contract related to protein manufacturing, along with a notable increase in the number of projects under contract utilizing the Company’s B cell Select platform.

Research & DevelopmentResearch and development increased to $2.8 million from $1.0 million in 2020, due to the strategic investment in research the Company is undertaking, including the Company’s SARS-CoV-2 PolyTope cocktail and other Talem research projects.
Net LossThe Company recorded a net loss of $5.0 million during the three months ended October 31, 2021, compared to net loss of $463,584 for the three months ended October 31, 2020.

Financing Activities / Liquidity and Capital Resources
As of October 31, 2021, the Company held cash of $38.4 million and had working capital of $36.4 million.
On October 13, 2021, an at-the-market ("ATM") equity offering facility, was entered into with H.C. Wainwright & Co., LLC, as sole sales agent ("Agent"). The Company will be entitled, at its discretion and from time-to-time during the term of the ATM agreement. to sell through the Agent common shares of the Company having an aggregate gross sales price of up to US $50 million. As of October 31, 2021, US $50 million of the Company’s stock remained available for sale under the ATM facility.