Pathway Health FY22 Revenue Declines 7%, What About Adjusted EBITDA?

Pathway Health Corp. PHC KL revenue in FY 2022 was CA$10.1 million ($7.4 million), a decrease of 7% compared to CA$10.9 million in FY 2021.

FY 2022 Financial Highlights

• Gross margin was CA$4.9 million or 48% of revenue, compared to CA$5.9 million or 54% of revenue in 2021.

• Net loss was CA$8.4 million compared to CA$8.9 million in 2021.

• Cash as of December 31, 2022, was CA$445,148 compared with CA$2.6 million on December 31, 2021. As of December 31, 2022, the company had a principal balance of CA$3.6 million outstanding from its credit facility.

• Adjusted EBITDA was negative CA$6.1 million compared to negative CA$4.2 million in 2021.

Q4 2022 Financial Highlights

• Q4 2022 revenue was CA$2.4 million, a decrease compared to CA$2.7 million in Q4 2021. Cannabis education revenues were partially impacted by a reduction in marketing fees previously provided by licensed producers as clinics moved to a telemedicine platform. The decline in revenue also reflects the continued downward trend in the Canadian medical cannabis market. However, the company hopes to offset this by focusing on specialty group markets and offering more comprehensive services to these targeted markets.

• Gross margins was CA$1.2 million or 46% of revenue, compared to CA$1.5 million or 56% of revenue in Q4 2021.

• Net loss was CA$2.1 million, compared to a net loss of CA$3.2 million in Q4 2021.

• Adjusted EBITDA was negative CA$1.4 million compared to negative CA$1.7 million in Q4 2021.

"We are excited about the proposed strategic merger of the Pathway, Newly and HEAL companies as we believe it will provide significant scale, resources and future growth opportunities," stated Ken Yoon, Pathway's CEO. "Combining these innovative healthcare leaders will allow for significant cross-selling and cross-referral opportunities and create a truly integrated interdisciplinary health and wellness company that is well positioned to address a growing CA$700 billion global market for mental health and chronic pain services and products."

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