Numinus Wellness Continues Tight Expense Management With Strategic Reviews Underway

Psychedelics mental healthcare company Numinus Wellness NUMIF posted its financial results for the three months ended Nov. 30, 2023.

Q1 numbers show:

• Cash position of $3.5 (CA$4.7) million by Nov. 30, 2023, vs. $6.35 million held by August 31 (immediately prior fiscal quarter.)

• Quarterly revenue of $4.4 million, a 3% decline as per immediately prior quarter, yet a 4.9% YoY increase vs. the comparable period ended Nov. 30, 2022. 

• With $2.8 million in costs, quarterly gross profit came down to $1.59 million.

• Quarterly expenses totaled $4.68 million, an almost 20% QoQ decrease and a roughly 30% YoY reduction (same period ended Nov. 30, 2022.) The majority was attributable to general and administrative expenses (G&A,) which were cut 26% this quarter to $4 million.   

• Cash used in operating activities totaled $2.5 million, vs. $5.3 million used in the same, comparative quarter the prior year.

• Net loss of $3.26 million, vs. $4.66 million in the comparative period in 2022.

• Accumulated deficit of $89.8 million by Nov. 30, 2023, a 3.8% QoQ increase.

See Q4 and full-year 2023 results and latest earnings call.

The decreased revenue coming from the wellness clinics (1.2% YoY vs. Q1 2023, and 0.7% QoQ vs. Q4 2023) is due to “a contraction in scheduled appointments with a focus on higher margin services.”

In terms of the company’s clinical research activity, Cedar Clinical Research Center’s quarterly revenue was 12.9% down from the prior quarter, yet 49.5% up compared to Q1 2023.

The team’s focus remained on “cost containment efforts,” holding a monthly cash burn rate of less than $739,800 as previously achieved in October 2023, founder and CEO Payton Nyquvest said.

Numinus's board of directors commenced a strategic review process “to best position the company for continued growth.” The process includes exploration and evaluation of a broad range of strategic alternatives that may be available to the company to unlock shareholder value.” No timetable for process completion nor decisions has been made yet. 

Numinus’ Tri-Pillar Approach

The company’s three developmental programs include the provision of care through a wellness clinic network, conducting clinical research on psychedelic-assisted therapies, and offering therapists’ training focused on these novel treatments.

In the closing quarter, the clinic's network held 19,961 clinical appointments (5.3% down from prior quarter,) with an average of 316.8 appointments per operating day (vs. 345.4 in prior quarter.)

In November 2023, Numinus announced that, in line with its strategy to focus resources on “sustainable and cash flow positive operations,” its clinic and research services in its Phoenix locations would cease operations.

Quarterly clinical research activity included 22 clinical trials, conducted at Numinus’ Cedar Clinical Research (CCR) center. In December, Beckley Psytech selected CCR as a clinical research site for its Phase 2b clinical trial on 5-MeO-DMT for Treatment-Resistant Depression.

Additionally, Numinus introduced a psychedelic program for the treatment of mental distress associated with serious and chronic illness, delivered through its Utah and CCR facilities.

Finally, the company’s clinical training involves a full certification program in ketamine, MDMA and psilocybin-assisted therapy, accredited by major regulatory bodies in Canada and the U.S.

With a successful implementation of the company’s new Learning Management System (and more testing underway,) Numinus’ training programs reportedly have 700+ learners enrolled as of January 2024.

Photo: Benzinga edit with photo by Zita and canadastock on Shutterstock.