Debra BorchardtPharmAla Biotech Holdings Inc. (CSE: MDMA) (OTC: MDXXF) showed investors some incoming revenue when the psychedelic drug company released its unaudited third-quarter earnings. PharmAla reported C$139,847 in revenue for the third quarter versus no revenue in the previous year. It was a combination of product sales, license revenue, and consulting revenue.
Still, the company delivered a net loss of C$413,151 amid total expenses of $C548,994. The largest chunk of expenses went to stock-based compensation related to the vesting of restricted share units. The company also paid consulting fees to businesses owned by the Chief Executive Officer and Chief Operating Officer
“I am pleased to report that, as compared to the same period in 2023, PharmAla has generated approximately 10x more revenue in 2024,” said Nicholas Kadysh, CEO, PharmAla Biotech. “This speaks to our success in generating new opportunities in Canada, Australia, and other ex-US markets. This strategy will remain the cornerstone of our work on our LaNeo MDMA product as we continue to establish ourselves as the first choice for clinical trial practitioners and prescriber suppliers.”
Troubled financials
PharmAla did state in its filing that for the nine months ending May 31, 2024, it reported a net loss of $599,241 (nine months ended May 31, 2023 – loss of $699,512), and cumulative deficit of $4,731,590 as of May 31, 2024 (August 31, 2023 – $4,132,349). As of May 31, 2024, the Company has a cash balance of $495,807 (August 31, 2023 – $195,042).
The company said in its filing that based on its working capital deficit of $156,936 on May 31, 2024 (August 31, 2023 – working capital deficit
of $315,072), the company anticipates it will not have sufficient funds for its operations, research, and development.
MDMA business
PharmAla has 3 primary business lines:
- The manufacture of MDMA and MDXX class molecules for sale to clinical researchers in both the commercial and academic spheres.
- The research and development of novel MDXX class compounds that offer unique benefits above and beyond currently known substances.
- The development of novel delivery mechanisms for MDMA and MDXX class compounds.
On April 5, 2024, the company announced that its joint venture, Cortexa began batch manufacturing of GMP LaNeo MDMA 40mg capsules to support both clinical trials and clinical use under the TGA’s Authorised Prescriber pathway. On April 19, 2024, it announced that it had closed its non-brokered private placement offering of units for $0.18 per Unit for aggregate gross proceeds of up to $750,000.
