Enveric Biosciences Reports Q1 2023 Loss, Implements Deep Staff Cuts & Halting Spinoff

Enveric Biosciences, Inc. ENVB released its corporate update and reported financial results for the first quarter of 2023 ending March 31, 2023.

Q1 2023 Financial Highlights

• Net loss attributable to shareholders was $4.80 million for the quarter ended March 31, 2023, including $0.56 million in net non-cash expenses, with a basic and diluted loss per share of $2.31, as compared to a net loss of $4.44 with basic and diluted loss per share of $5.34 per share for the quarter ended March 31, 2022.
• Net cash used in operations for the quarter ended March 31, 2023, was $5.14 million consisting of a $4.68 million net loss, adjusted by a net of $0.46 million in non-cash expenses and changes in asset and liability balances of $0.92 million.
• As of March 31, 2023, ENVB had cash and cash equivalents of $12.56 million and working capital of $10.40 million.

First Quarter & Recent Updates

• Enveric implements a cost reduction plan to extend the financial runway until Q1 2024.
• The plan includes a 35% reduction in full-time personnel, cancellation of 7 consulting contracts focused on cannabinoid programs and transition from third-party service providers to internal science teams for R&D efforts.
• Enveric's proposed spin-off of cannabinoid clinical development pipeline assets to Akos Biosciences, Inc. is canceled due to the exercise of redemption rights by holders of Akos Series A Preferred Stock.
• Enveric will seek strategic advisors to explore alternative options for capturing value from the assets.

“Underpinning Enveric’s business and development strategy is a continued focus on maximizing the value of our novel drug development programs to produce positive returns for our shareholders. In this pursuit, ENVB has been diligently working to develop a robust and differentiated pipeline of small-molecule therapeutics for the treatment of mental health disorders,” said Joseph Tucker, Ph.D., director and CEO of Enveric Biosciences. “Today’s announcement, including the cost reduction plan and reduction in force, reflects the necessary evolution of this strategy, enabling a greater focus of resources towards Enveric’s most valuable assets, EB-373 and our EVM301 Series.”

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