Braxia Scientific Faces Challenges In Accessing Public Market Capital, Reports Q1 Loss

Braxia Scientific Corp. BRAXF, owner of ketamine therapy clinics and KetaMD telemedicine services for depression and related disorders, has shared its interim financial statements for the three months ended June 30, 2023. 

In numbers: 

• Cash held was $636.483 (CA$861,393) as of June 30, compared to $1.08 million by March 31, 2023 and $5.67 million by June 30, 2022. 

• Quarterly revenue of $64.783, compared to $79.263 in the same period in 2022. Revenue’s 44% YoY increase ($443,490 vs. $308,490) was eclipsed by higher cost of sales ($378,707 now vs. $229,227 then.)

• Quarterly operating expenses totaled $654.771, an almost 17% decrease from $783.859 in 2022’s comparable period. 

• Quarterly net loss of $592,785, around 18% down from the $715,878 net loss of the comparable period in 2022.

• Accumulated deficit of $86.3 million by June 30, 2023 compared to $76.7 million by June 30, 2022.

Together with the financial statements, the company’s management published a discussion and analysis document regarding the quarter’s results.

CEO Dr. Roger McIntyre says that, while Braxia continues to face challenges ”including in accessing capital through public markets,” the fiscal year’s first quarter brought in increasing clinical demand from new referrals for ketamine treatments. 

This has in turn increased Braxia’s patient base and treatment volumes across its clinics, a goal the company is taking ahead along with making “further progress” in reducing expenses and improving efficiencies.

See Also: Ketamine Therapy At Your Doorstep, Growing Number Of Clinics Offer This Treatment Option

As for potential strategic partnerships within the context of a “challenging environment” in capital access, McIntyre says the team is currently involved in several discussions. 

“The company maintains its priorities and growth objectives. However, it also continues to look to access alternative sources of capital as well as seek other partnerships to support our growth objectives,” he acknowledged. “If we are unable to raise additional funding in the short term, we will look at alternate courses of actions including, but not limited to, further cost reductions, restructuring and the potential scaling back of clinic locations.”

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Photo: Benzinga edit with photo by Andrea Piacquadio by Pexels and DanielTahar on Wikimedia Commons.