Yokneam Illit, Israel—NextFerm Technologies has reported its fourth quarter and full year 2020 results, according to a press release. The company recorded initial net revenues of $95k in the second half of 2020, and is expecting significant net revenue growth in the upcoming quarters.
In 2020, NextFerm launched Astaferm. Astaferm is a yeast-based, non-GMO antioxidant, which hit U.S. shelves through supplement brand Purity Products. In February 2021, Carlson Labs launched an Astaferm supplement as well.
Looking forward, the company has high expectations for ProteVin, a vegan protein developed for use in a variety of markets, including as a meat replacement and in the sports nutrition market. NextFerm expects commercialization of the product in the U.S. during 2022. Main targets for 2021: Completing industrial scale-up, and creating initial market demand with a first purchase order or agreement by the end of 2021.
“We ended an exciting year in which we became a public company, recorded first sales of our Astaferm antioxidant in the US and completed the development of ProteVin, our flagship product, a first-of-a-kind, yeast-based vegan protein with similar nutritional value to animal proteins with a neutral flavor.” said Boaz Noy, Chief Executive Officer of NextFerm, in the press release. “The fact that we achieved sales of almost USD 100,000 within a short period of time proves the need, interest and trust in Astaferm from leading dietary supplement players and consumers in the US. Astaferm’s uniqueness has been recognized thanks to its concentration of active ingredients, flavor and friendly gummy form. Astaferm enjoys respectable demand and in 2021 we expect to launch it with additional customers, which will reflect in the Company’s performance, consistent quarterly growth and improved gross profit.”
Looking at ProteVin, Noy continued: “During 2021 we expect to commence commercial manufacturing scale-up, engagement with a manufacturing subcontractor and turning the growing interest of the alternative protein market into first ProteVin customer purchase order or contract by the end of 2021.”
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Fourth Quarter & Full Year Highlights:
- Net revenues increase 150% to $68k, compared to the third quarter of 2020. The revenues came from the first sales of Astaferm, which came in September 2020.
- Gross profit increased 116% to $13k compared to the third quarter of 2020.
- R&D expenses increased 42% to $653k compared to the third quarter of 2020. Annual expenses, however, decreased 27%, to $2.2 million, compared to the 12 month period ending December 31, 2019.
- Sales and marketing expenses increased 68% to $101k compared to the third quarter 2020; annually, expenses for 2020 increased 3.4% to $313k compared to sales and marketing expenses in 2019.
- Operating loss increased 44% to $919k compared to the third quarter of 2020; annual operating loss decreased 20.5% to $3.1m compared to 2020.
- General and administrative expenses increased 43.5% to $178k compared to the third quarter of 2020; annual expenses decreased 8.6% to $581k, compared to 2019.
Decreased R&D and general & administrative expenses were due in large part to COVID-19-induced decreases in salary and related expenses.