InnoCan Pharma Corp. INNPF INNO IP an Israel-based cannabinoids-focused pharmaceutical company, announced its interim consolidated financial results Monday for the three months ended March 31, 2024. The company reported revenues of $6.8 million, marking a 334% increase compared to $1.6 million in Q1 2023 and a 38% rise from $4.9 million in the previous quarter.
Q1 2024 Financial Highlights
- Revenue was $6.8 million, compared to the $1.6 million from the same quarter of 2023.
- Net loss was $1.5 million.
- Adjusted EBITDA was not added to the earnings report.
- Gross profit was $6 million, compared to the $1.4 million from Q1 2023.
However, despite the revenue growth, Innocan reported a net loss of $1.5 million for Q1 2024, slightly higher than the $1.2 million loss in the same period last year. The increase in losses is attributed to higher selling, marketing, and distribution expenses, which rose to $5.3 million from $1.3 million a year ago, primarily due to Amazon AMZN platform commissions and fulfillment costs.
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Operational And Financial Performance
The company’s operating loss was $1.2 million, consistent with the same period last year. Research and development expenses decreased to $424 thousand from $604 thousand, reflecting more efficient use of resources. General and administrative expenses rose to $1.5 million from $718 thousand, driven by increased professional services and share-based compensation.
Gross profit saw a significant boost, climbing 338% year-over-year to $6 million from $1.4 million in the same period last year and a 40% increase from $4.3 million in Q4 2023. This growth was primarily driven by the strong sales performance of its subsidiary BI Sky Global Ltd.
Management Commentary
Innocan’s CEO Iris Bincovich highlighted advancements in the company’s LPT-CBD technology, emphasizing its potential for managing chronic pain. “Our LPT-CBD technology has made strong advancements in the past few months. We very much look forward to our upcoming meeting with the FDA in July where they will review and advise on our clinical plan for bringing our LPT-CBD technology to market for chronic pain,” he said.
“We are very excited about the potential of our LPT technology. It provides for prolonged release of CBD into the blood over extended periods, enabling the management of chronic pain over time. We have already demonstrated this successfully in several animal models, showing detectable levels of CBD in plasma for more than a month after a single injection,” Bincovich added.
Meanwhile, Roni Kamhi, CEO of BI Sky Global and COO of Innocan, expressed satisfaction with the platform’s performance, noting, “We are excited with the performance of our online platform and very pleased with the 38% sequential revenue growth in the first quarter. In fact, in only one quarter, we have achieved more than half of the revenues that we recorded in the whole of 2023. Looking ahead, we anticipate continuing this growth rate by introducing new product categories and innovative formulations to our growing customer base.”
INNPF Price Action
INNPF's shares were trading at $0.1995 per share at the time of this writing around 9:45 AM ET Tuesday.
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