Psychedelics biotech company Enveric Biosciences (NASDAQ:ENVB) provided a corporate update and reported financial results for the third quarter ended Sept. 30, 2024.

"The third quarter of 2024 was highlighted by important progress in the development of EB-003, our neuroplastogenic molecule that is designed to address difficult-to-treat mental health disorders without inducing the hallucinogenic effect common to N,N-Dimethyltryptamine (DMT) and related analogs," stated Joseph Tucker, Ph.D., director and CEO of Enveric. "Among the key achievements, data confirmed that EB-003 has the potential to be delivered via oral administration and penetrate the brain at levels expected to elicit the desired therapeutic effect. Additionally, preclinical safety and pharmacology studies confirmed that EB-003 targets desired serotonergic receptors while minimizing potentially harmful, off-target interactions common to serotonin-like drug compounds. These are clear differentiators for EB-003, which we believe will add to its value potential."

Tucker says that "drug technologies that minimize or eliminate the hallucinogenic effect in molecules targeting the 5-HT2A receptor have the potential to become the gold standard in one or more neuropsychiatric indications." The company plans to submit an EB-003 Investigational New Drug (IND) application to the U.S. Food and Drug Administration in the second half of 2025.

Read Also:Enveric Biosciences Out-Licenses Key Program To MycoMedica In $62M Deal

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Q3 Financial Highlights

Net loss attributable to stockholders was $2.1 million, including $500,000 in net non-cash expense, with a basic and diluted loss per share of $0.24, as compared to a net loss of $2.8 million, including $0.2 million in net non-cash income, with a basic and diluted loss per share of $1.30 for the quarter ended Sept. 30, 2023.

Total operating expenses amounted to $2.08 million, compared to $3.45 million in the same period last year.

At the end of the reporting period on Sept. 30, 2024, Enveric had cash-on-hand of $3.1 million, and accumulated deficit of $102.92 million.

In the quarterly report filed with the SEC, Enveric noted that "further losses are anticipated in the development of its business. Being a research and development company, since inception, the company has not yet generated revenue and the company has incurred continuing losses from its operations. The company's operations have been funded principally through the issuance of equity. These factors raise substantial doubt about the company's ability to continue as a going concern for a period of one year from the issuance of these unaudited condensed consolidated financial statements."

To continue as a going concern, Enveric needs to raise additional capital.

The company had cash-on-hand of $3.1 million for the quarter ended September 30, 2024.

Corporate, Product and Business Development Highlights

• Confirmed oral bioavailability and significant brain exposure in preclinical studies of EB-003, supporting expedited development with IND filing and first patient dosed expected in 2025
• Announced positive results from preclinical safety and pharmacology studies of EB-003, confirming the drug's selective activity with desired serotonergic neuroreceptors and ability to minimize potential adverse cardiovascular and CNS events
• Presented foundational research involving EB-003 at the 7th Neuropsychiatric Drug Summit and the European Behavioral Pharmacology Society Biennial Workshop
• Strengthened intellectual property estate for EVM301 portfolio and announced the issuance of five additional U.S. patents
• Executed licensing agreement with Aries Science & Technology to clinically develop and market Enveric's patented product for radiation dermatitis

Price Action

Enveric Biosciences shares closed Friday market session 8.06% lower at 37 cents per share.

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Greenlane Holdings, Inc. (NASDAQ:GNLN) reported its financial results for the third quarter ended Sept. 30, 2024, disclosing revenue of $4 million compared to $11.8 million in the prior year period.

The Florida-based cannabis company noted that beginning with its second quarter 2023 earnings release, it implemented a major restructuring of its industrial product lines, transitioning much of this business from gross sales to a commission structure. This change affects how Greenlane reports revenue and enables it to preserve working capital and improve gross margins.

“During the third quarter, we continued to make progress on strengthening our product strategy and roadmap, enhancing our sales team structure and compensation arrangement, and further extracting operating efficiencies across the enterprise,” stated CEO Barbara Sher “We continue to see evidence that our efforts to reposition the business over the last six months have been proving successful. As we enter the next phase of our transformation, we are evolving our product portfolio with the addition of health, safety and wellness products that we believe can broaden our market opportunities and grow revenue.”

Read Also: Cannabis Co. Grown Rogue Reports 7% Increase In Q3 Revenue, Focuses On New Jersey And Illinois Expansion

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Q3 Financial Highlights

• Gross margin percentage increased 48.4% to 75%.
• Gross profit amounted to $3.03 million, compared to $3.13 million in the same period last year.
• Total operating expenses were $3.6 million, a decrease of 64% compared to $10.0 million in the prior year period.
• Operating loss improved by approximately $6.3 million to $538,000 compared to an operating loss of approximately $6.9 million in the prior year period.

• Net loss was $3.8 million, which included a $3.2 million one-time non-cash charge for interest expense in connection with various merchant cash advances, compared to a net loss of $10.1 million in the prior year period.
• As of September 30, 2024, the company had cash and cash equivalents of approximately $2.3 million.

Recent Milestones

In August, Greenlane entered into a securities purchase agreement with a large institutional investor for gross cash proceeds of $6.5 million. Under the agreement, the vendor of cannabis accessories and vaporization products issued 3.36 million units.

Earlier the same month, the company announced plans to distribute Safety Strips, Inc.'s fentanyl, xylazine and drink spike detection test strips across the U.S. The company's Safety Strips Fentanyl Test Strip (FTS) ISO 13485 validated product can detect potent synthetic opioids, including 3-methyl Fentanyl, Acetyl Fentanyl, Butyryl Fentanyl, Carfentanil, Fentanyl, Furanyl Fentanyl, Ocfentanil, Remifentanil, Sufentanil, Valeryl Fentanyl, and p-Fluoro Fentanyl. The announcement caused Greenlane’s shares to jump 244.40%.

Price Action

Greenlane shares closed Friday market session 6.70% lower at $1.95 per share.

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Avicanna Inc. (OTCQX:AVCNF) announced its financial results Thursday for the third quarter, disclosing revenue of CA$6.27 million ($4.49 million), compared to CA$6.25 million in the same period last year. The Toronto-based cannabis company also reported improved consolidated gross margin to 57% from 46% for the same period in 2023.

"We are pleased to report the results of another quarter showing progressive improvements across our four business pillars," stated CEO Aras Azadian. "Our continuous optimization efforts contributed to improvements in our overall financial performance, consolidated gross margins, and balance sheet. We are now better positioned to turn our attention towards our international growth initiatives and take further steps towards advancing our long-term business model."

Read Also: Agrify’s Q3 Revenue Drop, $18.6M Loss Amid New Leadership

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Q3 Financial Highlights

• Gross profit was CA$3.7 million compared to CA$2.9 million in the comparable quarter last year.

• Adjusted EBITDA was a loss of CA$293,931 compared to adjusted EBITDA loss of $473,650 in the corresponding period last year.
• Net loss amounted to CA$786,388 compared to net loss of CA$1.42 million in the third quarter of 2023.
• Fully repaid outstanding principle balance of approximately CA$1.3 million owed under non-convertible debenture.

Recent Milestones

In August, the biopharmaceutical company announced  the successful export of its Aureus-branded cannabigerol (CBG) products to Denmark. This marked the 19th international market for Aureus-branded products and the 22nd market overall for Avicanna’s product range. The export was facilitated through Avicanna's majority-owned subsidiary, Santa Marta Golden Hemp SAS.

The same month, Avicanna closed a non-brokered private placement offering of its 6,620,692 ‎‎units at $0.30 per unit for aggregate gross proceeds of $1,986,207.

This year also, the company confirmed that the United States Patent and Trademark Office (USPTO) has issued U.S. Patent No. US 20230025693A1, covering the company’s deep penetrating topical cannabinoid composition and methods for treating musculoskeletal inflammation and pain.

Price Action

Avicanna shares closed Thursday's market session flat at 17 cents a share.

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• CV Sciences Q3: Revenue Stable Amid New Launches, Financing

Photo: Courtesy of Avicanna