Numinus Wellness Inc. Announces Third Quarter Fiscal 2024 Results
Q3 Fiscal 2024 Highlights
- Revenue of
$4.3 million , a 1.9% decline over Q2 2024 - Gross profit of
$1.0 million , a 9.8% decline over Q2 2024 - Cash position of
$3.7 million as ofMay 31, 2024 - Transitioned out of Canadian clinical operations through an agreement with the
Canadian Centre for Psychedelic Healing ("Field Trip Health ") - Enrolment in Numinus training programs increased to over 1,650 learners, compared to over 1,400 in Q2 2024, with learners joining from 18 countries
- Managed 15 clinical trials at
Cedar Clinical Research - Provided 15,750 client appointments in
U.S. ; this represents a 3.2% increase from the prior yearNuminus Wellness Clinics
Subsequent to Quarter End
- On
June 20, 2024 , the Company announced that it had executed a letter of intent ("LOI") to acquireMedBright AI Investments Inc. ("MedBright") by way of a statutory plan of arrangement. Under the terms of the LOI, the Company will issue 1.86 common shares of Numinus for each MedBright share, making up an aggregate of approximately 204,729,372 of the Company's shares.
All financial results are reported in Canadian dollars unless otherwise stated.
"In the third quarter of 2024, we continued to make progress on our program to transition Numinus to an operationally lean company prepared to benefit from the anticipated growth in psychedelic therapy. Key to the program is achieving profitability with our existing operations and leveraging our significant experience and expertise to opportunities in the broad market," said
"Our proposed acquisition of MedBright AI further amplifies our opportunities by leveraging our experience and expertise in clinical care and insurance reimbursement into a licensed offering available to mental health clinics, therapists and practitioners across the
Revenue from continuing operations
The Company's consolidated revenues decreased by 1.9% quarter over quarter compared to Q2 2024 as a result of a decrease in outpatient services revenue of approximately
Revenues in the Company's US Clinic Network during Q3 2024 decreased by 7% from
Revenues from Clinical Research operations during Q3 2024 increased by 10.7% from
Revenues from Practitioner Training during Q3 2024 increased by 114% from
Gross Margin
Sequentially, gross margin declined 200 basis points in Q3 2024 to 22.0% from 24.0% in Q2 2024.
Operating expenditures
Operating expenditures and other items were
Operational Highlights
Numinus Wellness Clinic Network
- 15,750 clinical appointments in Q3 2024, compared to 14,841 in Q2 2024
- 48,945 clinical appointments year to date in 2024, compared to 47,810 in 2023
- Average of 250.0 appointments per operating day in Q3 2024, compared to 251.54 in Q2 2024
- 6.7% of appointments during Q3 2024 were made by new clients
- 23.0% of appointments during Q3 2024 were KAT or Ketamine/Spravato medicine-related
- 6.3% of appointments during Q3 2024 were for TMS services
On
Revenues from
CCR managed 15 clinical trials, including 233 patient appointments in Q3 2024, compared to 15 clinical trials and 260 patient appointments in Q2 2024. On
Practitioner Training
The Company has built a fulsome certification program to train practitioners in ketamine, 3,4-Methyl enedioxy methamphetamine ("MDMA"), and psilocybin-assisted therapy ("Numinus Training Program") that leverages its expertise in clinic-based treatment and clinical research. The program is accredited by major regulatory bodies in
- As of
May 2024 , over 1,650 learners have enrolled in Numinus Training Programs, with learners coming from 18 countries - Became accredited as a psychedelic therapy training provider by the
Oregon Health Authority - Expanded its offering with the initiation of a contract with a leading research institution to train their research providers on evidence-based practices and protocols to support clients in specific psychedelic clinical trials
- Training revenue increased by 114.2% in Q3 2024 to
$168,830 , compared to$78,837 in Q2 2024
Corporate Updates
On
Balance Sheet and Liquidity
Numinus ended the quarter with a total cash balance of
Q3 2024 Performance Metrics
|
For the quarter ended: |
||
|
|
|
% change |
Numinus |
3,355,869 |
3,609,324 |
-7.0 % |
Practitioner Training revenues |
168,830 |
78,837 |
114.2 % |
|
824,082 |
744,136 |
10.7 % |
Total Revenue |
|
|
-1.9 % |
Cost of revenue |
(3,390,965) |
(3,370,529) |
0.6 % |
Gross Profit (Loss) |
|
|
-9.8 % |
Gross profit margin |
22.0 % |
24.0 % |
-200 bps |
Operating expenses and other items |
6,092,503 |
7,334,204 |
-16.9 % |
Loss and comprehensive loss |
|
|
n/a |
Numinus' unaudited condensed consolidated interim financial statements for the three months ended
Proposed Transaction
On
The strategic combination of MedBright's AI machine-learning platform with Numinus' significant expertise in traditional therapy, clinic management, patient care, insurance reimbursement, and psychedelic-assisted treatment is expected to enhance revenue generation through a unique AI-enabled offering available to the growing number of
To signify its new strategic direction and focus, the Company intends to rebrand as Numinus Intelligence upon closing, a name that reflects the commitment to leveraging AI and data science to expand mental health services and solutions across the
Pursuant to the terms of the LOI, as consideration for the acquisition of all of the issued and outstanding common shares in the capital of MedBright AI ("MedBright AI Shares"), Numinus will issue 1.86 common shares of Numinus ("Numinus Shares") for each MedBright AI Share such that it is anticipated that Numinus will issue an aggregate of approximately 204,729,372 Numinus Shares, which will represent ownership of approximately 39% of the pro forma company on an undiluted basis, based on the current capitalization of Numinus and MedBright AI.
The Proposed Transaction is subject to a number of conditions precedent, including, among other things, the negotiation and execution of a definitive arrangement agreement, completion of satisfactory due diligence by each party, receipt of certain regulatory approvals and the approval of the Proposed Transaction by shareholders of each of Numinus and MedBright AI. The LOI is binding with respect to exclusivity and non-binding in all other aspects and serves as an important step in advance of a definitive arrangement agreement.
Conference Call and Webcast Details
Interested parties are invited to participate in the Company's Q3 2024 results conference call and webcast occurring on
To listen to the live webcast, please register at:
https://events.q4inc.com/attendee/881868667
The webcast will also be archived on the Events and Presentations page of Numinus' Investor Relations website:
www.investors.numinus.com/events-and-presentations.
To participate in the live conference call, please use the following dial-in information:
- 1 (888) 330-3632 (
Toll-free North America ) - 1 (646) 960-0837 (International)
- Please ask to participate in Numinus' Q3 2024 Results Call.
To avoid any delays in joining the call, please dial in at least five minutes prior to the call start time. If prompted, please provide the conference passcode 3547386.
About Numinus
Learn more at www.numinus.com and follow us on LinkedIn, Facebook, Twitter, and Instagram.
Forward-looking statements
This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are "forward-looking statements". Forward-looking statements can be identified by the use of words such as "expects", "does not expect", "is expected", "believes", "intends", "anticipates", "does not anticipate", "believes" or variations of these words, expressions or statements, that certain actions, events or results "may", "could", "would", "might" or "will be" taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, ability of Numinus to maintain or increase earnings; ability of Numinus to achieve or maintain profitability; results of changes to operations from a financial or business perspective;
the effect of cost containment measures on Numinus business and financial position; changes to cash burn rate, expenses, corporate programs or priorities, or unanticipated costs affecting cash runway or the pathway to positive cashflow or profitability, the effect of any transaction or other activity undertaken by the company in connection with the strategic review
;
interest in, uptake of and the ability to commercialize the Numinus Training; receipt of and/or continued approval of the clinical trial application by
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