Mydecine's Q1 2023 Reports Shows Decline In Assets And R&D, Increase In Net Loss And Accumulated Deficit

Psychedelics biotech Mydecine Innovations Group MYCOF shared its condensed interim (unaudited) financial results for three months ended March 31, 2023.

First quarter numbers: 

• Cash and cash equivalents of $7.650 (CA$10,291) as of March 31, 2023, compared to $8.199 garnered by Dec. 31, 2022.

• Financial position comprised $1.6 million in total assets including $1.3 million of current assets, compared to total assets of $3.9 million including $2.4 million of current assets on Q1 2022. 

• R&D expenses of $106.554 as compared to $780.216 in the same period in 2022; and total expenses of $2.9 million compared to $3.5 million for 2022’s same period.

• Cash used in operating activities of $2.2 million compared to $1.2 million in the same period the prior year.

• Net loss of $5.68 million or a basic and diluted loss per share of $0.30, compared to $4.18 million or a basic and diluted loss per share of $0.89 in the same period in 2022.

See also: Mydecine: 2022 Financials & Business Update By Next-Gen Psychedelics Producer, Smoke Cessation Trial And More

In its latest financial filings, the company stated that, as of this March 31, it had an accumulated deficit of $107.1 million, a 5.6% increase as of Dec. 31’s $101.4 million.

This, combined with the quarter’s net loss and operating activities expenses, makes the company’s ability to continue as a business “dependant upon its ability to generate future profitable operations and/or to obtain the necessary financing to conduct its planned business, meet its on-going levels of corporate overhead and discharge its liabilities as they come due.”

Notes submitted by Mydecine state that “although the company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms advantageous,” and that “these material uncertainties may cast significant doubt as to the company’s ability to continue as a going concern.”

Mydecine indicated that it will be able to realize its assets and discharge liabilities during the usual business rollout, and has prepared these financial statements on a going concern basis which assumes that stance.

The company works towards advancing psychedelics through modern drug chemistry and AI to provide safer, more effective and more accessible treatments. It has consequently developed several prodrug families starting with a psilocybin-derived smoking cessation drug undergoing a NIDA-funded trial at Johns Hopkins, as well as the short-acting MDMA analogs MYCO-006 family soon to enter the clinical stage.

Photo: Benzinga edit with photo by Raimundo79 and Blue Planet Studio on Shutterstock.