Adam Jackson
Numinus Wellness Inc. (OTCQX: NUMIF) reported a sharp rise in revenue for its fiscal year ended Aug. 31, buoyed by higher clinic appointments and a practitioner-friendly licensing model.
The company announced a 256.9% increase in revenue, driven by expanded services in North America and a rise in clinical trials. The growth resulted in a fourth-quarter revenue of $6.1 million, a 1.7% increase from the previous quarter and a 46.8% increase from the same quarter last year.
“In fiscal 2023, we built on the foundational work carried out in the previous year and continued to optimize synergies between our clinical, training and contract research management operations to provide the most comprehensive platform in the mental wellness space with a particular expertise in psychedelics,” founder and CEO Payton Nyquvest said in a statement.
“The results of our efforts can be seen in the increasing number of client visits, our research collaborations with leading drug developers and the growth of our training platform for practitioners. The anticipated approval of MDMA-assisted therapy by the FDA, if approved, will provide us with increased opportunities to deploy our unique service model using another treatment modality.”
The company expanded its training program for psychedelic practitioners and is enhancing its clinical research management services, he added.
Despite the positive trends, gross margin fell to 29.5% in the fourth quarter of 2023 from 34.5% in the previous quarter. The company linked the decline to a rise in full-time practitioners and varied clinic performances.
Numinus also implemented several cost-saving measures, including the closure of its underperforming clinic to focus resources on more profitable areas. The moves reduced operating expenditures to $7.9 million in the fourth quarter, down from $9.2 million in the previous quarter.
The company also successfully reduced its monthly cash burn to under $1 million as of October. Numinus reported a total cash balance of $8.6 million and working capital of $7.4 million.
