Adam JacksonNuminus Wellness Inc. (TSX: NUMI) (OTCQX: NUMIF) reported a third-quarter loss for the period ending May 31, as it continues to restructure its operations.
According to filings, the company posted a comprehensive loss of C$5.8 million for the quarter, narrowing from a C$7.3 million loss in the same period last year. Revenue fell 16% year-over-year to C$4.3 million.
On a Thursday earnings call, CEO Payton Nyquvest said the company is “transitioning to a leaner and more efficient organization.” Numinus closed its Canadian clinics during the quarter, in a bid to focus on its U.S. operations and research efforts.
“We eliminated non-revenue generating business lines and roles, including the closure of our Numinus Bioscience business and our unprofitable clinic in Phoenix, Arizona,” Nyquvest told investors. The company reduced its headcount by 60%, focusing on growth-oriented initiatives.
Numinus maintained a cash burn rate of less than C$1 million per month, a target it reached last October. The company’s U.S. clinics provided 15,750 client appointments during the quarter, a 3.2% increase from the previous year.
The US Clinic Network generated revenue of $3.36 million, a 7% decrease sequentially and an 18% decrease from the same period last year.
Cedar Clinical Research revenue rose 10.7% to C$800,000 due to “the launch of a clinical trial with additional patient appointments,” according to Interim CFO Melony Valleau. Practitioner training revenue jumped 114% to C$168,830
Numinus ended the quarter with a cash position of C$3.7 million, down from CA$8.6 million at the end of August 2023. The firm had a working capital of C$2 million.
The company recently announced plans to acquire MedBright AI Investments Inc. Nyquvest said this acquisition “is an important milestone” and allows the firm to combine its clinical expertise with MedBright’s artificial intelligence technology.
The proposed acquisition would involve Numinus issuing approximately 204.7 million shares, representing about 39% ownership of the combined company. Numinus intends to rebrand as Numinus Intelligence after the deal closes, expected in August or early September.
The release comes after a series of setbacks for the company. In June, Numinus had to retract claims made in earlier press releases about its partnership with Cybin and plans for a Numinus Network community pilot, blaming the errors on its public relations firm. The company also faced challenges when an FDA advisory panel voted against a key MDMA drug that was central to Numinus’ pivot towards the U.S. market and MDMA therapy.
At the same time, Numinus’ financials raise doubts about the company’s long-term viability. The company “has incurred an accumulated deficit of $132,982,371 and a net loss of $16,115,927 for the nine months ended May 31, 2024.” Numinus states that its “continuation as a going concern is dependent on its ability to attain profitable operations and generate funds therefrom and/or raise funds sufficient to meet current and future obligations.”
