Nubeva Technologies Ltd. — Interim / Quarterly Report 2021

Dec 16, 2020

Nubeva Announces Q2 Fiscal 2021 Financial Results

Nubeva Earns Q2 Net Income of US$294,125 on Revenue of US$927,702

SAN JOSE, Calif., December 16, 2020 -- Nubeva Technologies Ltd. (" Nubeva " or the " Company ") (TSX-V: NBVA), announces its unaudited consolidated financial statements for the second quarter ended October 31, 2020. Financial statements along with management discussion and analysis of financial results can be found at www.sedar.com. All dollar amounts in this release are quoted in U.S. Dollars.

“We experienced significant momentum in the second quarter as customers began adding Nubeva’s Symmetric Key Intercept solution to their software security and application monitoring tools,” said Randy Chou, Nubeva’s founder and CEO. “We will continue to license our technology to manufacturers, enabling enterprise users to obtain the visibility they need into network traffic “

During the second quarter Nubeva reported revenue of $927,702 compared with revenue from the same quarter of last year of $38,511. The increase in revenue for the quarter was due to the recognition of revenue from the Company’s license of its Symmetric Key Intercept software (“SKI”) and related support and maintenance, and represents part of a seven figure, multi-year deal. The balance of this contract will be recognized over time.

Nubeva reported net income for the quarter of $294,125 compared with a net loss of $953,670 in the second quarter of last year, primarily due to the increase in revenue, as well as a 27% reduction in expenses.

Selected operating data follows:

Income Statement Data	Income Statement Data	Three Monthsended October31, 2020	Three Monthsended October31, 2019	Six Monthsended October31, 2020	Six Monthsended October31, 2019	Six Monthsended October31, 2019
Revenue		$ 927,702	$ 38,511	$ 967,315	$ 77,667
Expenses		728,536	997,749	1,550,500	1,938,390
Other Items
Fair valuegain(loss)on digital currencies		7984	(2901)	16711	12,604
		,	,	,
Government assistance		98,305	-	305,704		-
Interest expense		(11,198)	-	(11,198)		-
Foreign exchange		(2290)	(1177)	(18360)	(	10,125)
		,	,	,
Other income		2,158	15,738	2,575		39,433
Net income(loss)for th	eperiod	$294,125	$ (947,578)	$ (287,753)	$ (1,8	18,811)
Other comprehensiveg	ain(loss)
Foreign currencytransl						(5,658)
	ation adjustment	(26,261)	(6,092)	15,790
Total comprehensive in	come(loss)	$267,864	$ (953,670)	$ (271,963)	$ (1,82	4,469)
Earnings (loss) per share – basic		$0.01	$ (0.02)	$ (0.01)	$ (0.03)
Earnings (loss) per share – fully diluted		$ 0.00	$ (0.02)	$ (0.01)	$ (0.03)
Weighted average number of commonshares - basic		56,372,082	55,816,623	56,314,049	55,759,834
Weighted average number of commonshares - fully diluted		61,392,771	60,665,892	61,334,738	60,609,103

The Company’s financial position as at October 31, 2020 compared with the Company’s financial position as at April 30, 2020 is as follows:

Balance Sheet Data	October 31, 2020	April 30, 2020
Current and total assets	$ 1,995,333	$ 2,284,976
Current liabilities	$ 755,252	$ 837,773
Long-term debt	$ 113,931	$ 102,413
Accumulated deficit	$ (13,247,703)	$ (12,960,121)
Total Equity	$ 1,126,150	$ 1,344,790

Assets as at October 31, 2020 decreased by $289,643 over assets as at April 30, 2020 due mainly to a decrease in cash and marketable securities of $418,373. The decrease in cash was due primarily to an outflow of cash used for operations. This decrease was partially offset by an increase in the tax credit receivable of $151,139. Subsequent to the end of the quarter the Company collected tax credits in the amount of $324,015. The Company had a working capital surplus of $1,240,081 (April 30, 2020 - $1,447,203). The available working capital as at the date of this MD&A is estimated to be adequate to finance Nubeva’s planned operations over the ensuing six months.

About Nubeva Technologies Ltd.

Nubeva Technologies Ltd. has changed the decrypted visibility game with pure, symmetric decryption. Nubeva helps enterprises gain the visibility needed through decryption so they can fully inspect network traffic. The need to inspect data in motion is fundamental to network security and application monitoring and assurance. The shift to SaaS, the cloud, 5G and stronger encryption practices like perfect forward secrecy and TLS 1.3, create new and unique challenges for in-line and out-of-band decryption and visibility solutions. Nubeva re-imagined TLS visibility and created a new solution for the modern era of strong encryption in dynamic and distributed compute environments. Visit nubeva.com for more information.

Forward Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the Company's business plans and the outlook of the cybersecurity industry. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by applicable securities laws. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its subsidiaries, their securities, or their respective financial or operating results (as applicable).

Neither the 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 this release.

For additional information, please contact:

Nubeva Technologies Ltd. Juliet Jones, Chief Financial Officer 1(844)538-4638