Numinus Wellness Inc.'s Q4 And Fiscal 2022 Report Shows Revenues Grew 464% To $4.2M

Numinus Wellness Inc. NUMI NUMIF, a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies, reported its financial results late Monday for the three and twelve months ended August 31, 2022.

"Fiscal 2022 was a pivotal year for Numinus, as we entered the US market with the transformational acquisition of Novamind, expanded our Ketamine-assisted Therapy offering across Canada, launched a formal practitioner training program, and unveiled a global rebranding of our company," stated Payton Nyquvest, founder and CEO. "Combined, these efforts have provided a solid platform for our continued, measured growth – with scalable infrastructure and systems, and a growing pipeline of practitioners choosing Numinus for their psychedelics-assisted therapy training."

All financial results are reported in Canadian dollars unless otherwise stated. Q4/22 Financial Highlights Include

• Revenues grew 643% year-over-year to $4.2 million in Q4 2022, due primarily to the acquisition of Novamind. Sequentially, revenues grew 464% from the prior quarter.
• Gross margin grew to 31.5% during Q4 2022 compared to 6.5% in Q4 2021. Sequentially, gross margin grew 710 basis points from 24.4% in Q3 2022. The improvement in gross margin is due mostly to the completion of the Novamind acquisition between periods and the offering of higher-margin services.
• Gross profit was $1.3 million in Q4 2022, a significant increase compared to gross profit of $32,000 in Q4 2021, and a 628% increase compared to $0.2 million in the prior quarter.
• Cash balance of $33.0 million as of August 31, 2022. Cash outflows were larger than usual during the fourth quarter due to severance, contract terminations, and banking costs related to the completion of the Novamind acquisition during the quarter.

"Our fiscal fourth quarter was the first to demonstrate the real power of our larger, cross-border platform following the acquisition of Novamind on June 10, 2022 – and the impacts are evident in our performance. Compared to the previous quarter, fourth quarter revenues grew 464% to $4.2 million, gross margin improved by 710 basis points from 6.5% to 31.5%, and gross profit grew 628% to $1.3 million,” Nyquvest added.

Fiscal 2022 Financial Highlights

Revenues during fiscal 2022 were $6.5 million, a 329% increase from $1.5 million in fiscal 2021, due primarily to acquisitions completed during the year.

The gross margin during fiscal 2022 was 27.4%, compared to -5.4% in fiscal 2021.

Gross profit during fiscal 2022 was $1.8 million, a significant improvement compared to a gross loss of $82,000 in fiscal 2021.

Operational Highlights During and Subsequent to Q4 2022

Corporate Updates: On June 10, 2022, following exemplary shareholder approval, Numinus completed the acquisition of Novamind Inc. – providing a robust US wellness clinic platform and a clinical research management division, among others.

Numinus Wellness Clinic Network: “Q4 2022 clinic network revenue was $3.7 million, representing a 404% sequential increase from $0.7 million in Q3 2022, and an 821% increase from $400,306 during the same period last year,” according to the press release. “The increase in clinic network revenues is primarily due to acquisitions completed during the year and the expansion of clinic services.”

Additionally, during Q4 2022, the company completed more than 17,000 client appointments. Also, as of August 31, 2022, it had 13 wellness clinics offering services to clients.

On June 23, 2022, Numinus launched a pilot mental health program for corporate clients: Corporate Ketamine-Assisted Psychotherapy.

Numinous Clinical Research: Revenues from Cedar Clinical Research ("CCR") during Q4 2022 was $0.5 million. “CCR revenue streams are generated through the management of third-party clinical trials that use CCR's two clinical research sites,” reads the news release.

Finally, a non-cash impairment charge of $13.3 million and transaction costs of $1.9 million related to the acquisition of Novamind Inc. was incurred during the fourth quarter and are not considered recurring operating expenses.

‘We're excited about the momentum building across our business and the regulatory reform underway across the US and Canada, and will continue to evaluate complementary growth opportunities that will enhance our client experience and further support margin expansion," Nyquvest concluded.

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Photo: Courtesy Of Pawel Czerwinski On Unsplash