Nubeva Technologies Ltd. — Interim / Quarterly Report 2022

Sep 29, 2021

Nubeva Announces Q1 2022 Financial Results

San Jose, Calif., September 29, 2021 -- Nubeva Technologies Ltd. (" Nubeva " or the " Company ") (TSX-V: NBVA, OTC: NBVAF), announces its unaudited condensed consolidated financial statements for the three months ended July 31, 2021. 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 stated in U.S. Dollars .

During the three months ended July 31, 2021, in addition to continuing to provide critical updates for existing applications, including support for Windows 11 and Windows Server 2022. Nubeva focused on its next major development with the introduction of SKI for ransomware. Set to be launched imminently, this development is expected to be a groundbreaking solution to the ever-expanding problem of ransomware and present Nubeva and the OEM’s that license its products and services with a leading market opportunity.

Revenues reported each quarter represent contracts for which performance obligations have been met by the Company. Nubeva’s contracts may contain multiple performance obligations, in which case Nubeva allocates the contract price to each performance obligation. Revenues for the quarter ended July 31, 2021 represent lower contract deliveries made during the quarter. Revenues are expected to increase year over year, though due to the timing of large enterprise sales, quarterly revenues are not indicative of anticipated annual results.

Selected Operating Data:

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Three Months ended Three Months ended
Income Statement Data
July 31, 2021 July 31, 2020
Revenue [(1)] $ 31,514 $ 39,613
Expenses 1,004,580 821,964
Other Items
Gain on digital currencies - 8,727
Government assistance - 10,000
Forgiveness of government loan 127,739 197,399
Interest expense (6,370) 127,739 1
Foreign exchange (876) (16,070)
Interest and other income 343 417
Net income (loss) for the period $ (852,230) $ (581,878)
Foreign currency translation adjustment (18,561) 42,051
Total comprehensive income (loss) $ (870,791) $ (539,827)
Earnings (loss) per share – basic and fully
$ (0.01) $ (0.01)
diluted
Weighted average number of common shares -
basic 61,115,493 56,256,017
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(1)Due to the nature of enterprise license sales, quarterly revenues will vary materially, from quarter to quarter for the foreseeable future.

The Company’s financial position as at July 31, 2021 compared with the Company’s financial position as at April 30, 2020 is as follows:

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Balance Sheet Data January 31, 2021 April 30, 2021
Current and total assets $ 2,207,342 $ 2,986,649
Current liabilities $ 284,363 $ 420,338
Long-term debt $ 8,756 $ 26,387
Accumulated deficit $ (14,465,197) $ (13,612,967)
Total Equity $ 1,914,223 $ 2,539,924
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Assets as at January 31, 2021 decreased by $779,307 from assets as April 30, 2021 due mainly to a decrease in cash and marketable securities of $612,563 and a decrease in accounts receivable of $195,229. The decrease in cash was due primarily to an outflow of cash used for operations.

Cash and marketable securities as at July 31, 2021 compared with cash and marketable securities as at April 30, 2021 are as follows:

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Cash and marketable securities July 31, 2021 April 30, 2021
Cash $ 254,350 $ 1,466,913
Money market funds 1,413,507 813,507
Total $ 1,667,857 $ 2,280,420
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At July 31, 2021 Nubeva had a working capital surplus of $1,922,979 (April 30, 2020 – $2,566,311).

As at July 31, 2021, Nubeva had cash and money market funds of $1,667,857, a decrease of $612,563 compared to cash at April 30, 2021 of $2,280,420. The Company used $661,512 of cash for operations during the three months ended July 31, 2021.

Subsequent to July 31,2021 the Company raised $1,000,627 from the issuance of common shares pursuant to private placement and the exercise of share purchase warrants. At the date of this press release, the Company estimates it has adequate working capital for the ensuing eight months.

The Company also advises that its listing has been transferred from the Tier 1 to Tier 2 on the TSX Venture Exchange. The transfer has no impact on the Company’s securities or trading,

About Nubeva Technologies Ltd.

Nubeva develops and licenses proprietary software for the decryption of network traffic. Nubeva’s nextgeneration SKI (Session Key Intercept) technology represents a better, faster, easier, and lower-cost alternative to legacy decryption. Our solution provides a complete option for manufacturers, integrators, and managed services providers of cybersecurity and application assurance solutions. Today, nearly all network traffic uses TLS (formerly SSL) for security and privacy, yet enterprises still must see the data-in-motion to detect and respond to cybersecurity threats and application performance issues. With constant evolution in TLS protocols and the advancements in application, network, and computing architectures, gaps continue to grow in the legacy decryption methods. Nubeva’s SKI technology represents the next-generation solution for the industry moving forward. 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. Sheri Rempel, Chief Financial Officer 1(844)538-4638