Adam Jackson
Braxia Scientific Corp. (CSE: BRAX) (OTC: BRAXF) is beginning to turn a bit of profit as it gears up to become absorbed by Irwin Naturals.
The ketamine treatment company reported third-quarter earnings for the period ending Dec. 31, 2022.
Revenue in the quarter rose 50.5% to $480,000 versus the same period the year before. In-clinic ketamine treatments rose 29% year-over-year.
Net loss was $2.17 million for the quarter versus a net loss of $2.5 million in the same period last year. Braxia said that the loss during the quarter includes non-cash share-based compensation of $150,000.
“We continued to make progress on our priorities to scale our clinics, technology, and people in order to address increasing demand for treatments. At the same time, we have completed and funded our psilocybin clinical trial and are preparing to publish our results,” CEO Roger McIntyre said in a statement.
Irwin Natural’s bid to snap up Braxia is also expected to close by the end of March.
“Looking ahead, we are focused on accelerating our strategic initiatives with Irwin to create the market leader in North American mental health treatment. Together, we are aiming to build a large network of clinics, enhanced by our KetaMD telehealth platform, that will provide access to innovative treatments while also serving pharmaceutical sponsors by carrying out in-human clinical trials to assist in the development of novel therapeutics for potential future marketing authorization from FDA and other health regulators globally,” McIntyre said.
Braxia Health’s clinic performance is expected to see steady improvement as three new clinics, Ottawa, Toronto, and Kitchener-Waterloo “continue to ramp up operations and deploy new technology to drive patient acquisition and fill newly added capacity.”
“Additionally, Braxia’s Toronto clinic has commenced psilocybin treatments under its special access program which is expected to continue to ramp up in 2023,” the company said.
During the quarter, KetaMD, the company’s U.S. telemedicine platform, continued to expand the initial pilot of its virtual ketamine treatments along with multiple marketing initiatives to drive new patient referrals. Additionally, the KetaMD has made progress in building a pipeline of potential clinic partnerships.
Braxia had $1.49 million worth of cash and cash equivalents, and $720,000 in working capital. The company also struck a non-brokered offering worth $1.26 million in proceeds, which closed Feb. 27.
Going Concern
Irwin’s acquisition may have come as a saving grace.
Braxia wrote in its filings that, “As a company in the startup stage, the company does not have significant revenues, and historically has relied on share capital financing to cover its research, development, and other operating expenditures.”
While the company had $715,820 in working capital, it has “yet to achieve profitable operations” and has racked up losses upward of $108 million over the years and expects to incur further losses in the development of its business.
“Although the historical losses cast significant doubt about the company’s ability to continue as a going concern, management has assessed that its overall working capital is sufficient for the company to continue as a going concern beyond one year,” it wrote. “If the going concern assumption were not appropriate for these condensed interim consolidated financial statements, it could be necessary to restate the company’s assets and liabilities on a liquidation basis, and such adjustments could be material.”
