Q3 Fiscal 2024 Highlights
- Revenue of $4.3 million, a 1.9% decline over Q2 2024
- Gross profit of $1.0 million, a 9.8% decline over Q2 2024
- Cash position of $3.7 million as of May 31, 2024
- Transitioned out of Canadian clinical operations through an agreement with the Canadian Centre for Psychedelic Healing ("Field Trip Health")
- Enrolment in Numinus training programs increased to over 1,650 learners, compared to over 1,400 in Q2 2024, with learners joining from 18 countries
- Managed 15 clinical trials at Cedar Clinical Research
- Provided 15,750 client appointments in U.S. Numinus Wellness Clinics; this represents a 3.2% increase from the prior year
Subsequent to Quarter End
- On June 20, 2024, the Company announced that it had executed a letter of intent ("LOI") to acquire MedBright AI Investments Inc. ("MedBright") by way of a statutory plan of arrangement. Under the terms of the LOI, the Company will issue 1.86 common shares of Numinus for each MedBright share, making up an aggregate of approximately 204,729,372 of the Company's shares.
All financial results are reported in Canadian dollars unless otherwise stated.
VANCOUVER, BC, July 11, 2024 /CNW/ - Numinus Wellness Inc. ("Numinus" or the "Company") (TSX: NUMI) (OTCQX: NUMIF), a mental health care company advancing traditional and innovative behavioral health treatments with a focus on safe, evidence-based psychedelic-assisted therapies, today announced its financial results for the three months ended May 31, 2024 ("Q3 2024").
"In the third quarter of 2024, we continued to make progress on our program to transition Numinus to an operationally lean company prepared to benefit from the anticipated growth in psychedelic therapy. Key to the program is achieving profitability with our existing operations and leveraging our significant experience and expertise to opportunities in the broad market," said Payton Nyquvest, Numinus Founder and CEO. "In April, we transitioned out of our Canadian clinical operations through an agreement with the Canadian Centre for Psychedelic Healing while maintaining a connection with our Canadian therapists through our newly launched Numinus Network. This has allowed us to focus on optimizing our U.S. clinics and the significant opportunities with several novel drug therapies in late clinical trial stages. In Q3 2024, we maintained a cash burn rate of less than $1 million per month."
"Our proposed acquisition of MedBright AI further amplifies our opportunities by leveraging our experience and expertise in clinical care and insurance reimbursement into a licensed offering available to mental health clinics, therapists and practitioners across the U.S.," added Mr. Nyquvest.
Revenue from continuing operations
The Company's consolidated revenues decreased by 1.9% quarter over quarter compared to Q2 2024 as a result of a decrease in outpatient services revenue of approximately $100,000 due to the wind-down of the Arizona clinics.
Revenues in the Company's US Clinic Network during Q3 2024 decreased by 7% from $3.6 million during Q2 2024 to $3.4 million because of a decrease in outpatient service revenue.
Revenues from Clinical Research operations during Q3 2024 increased by 10.7% from $0.7 million during Q2 2024 to $0.8 million. The increase in revenue resulted from psychedelic clinical trials with additional patient appointments.
Revenues from Practitioner Training during Q3 2024 increased by 114% from $78,837 during Q2 2024 to $168,830. The increase in revenue resulted from revenue-generating efforts related to new training programs.
Gross Margin
Sequentially, gross margin declined 200 basis points in Q3 2024 to 22.0% from 24.0% in Q2 2024.
Operating expenditures
Operating expenditures and other items were $6.1 million in Q3 2024, compared to $7.3 million in the previous quarter. The decrease is a result of the Company's cost-cutting initiatives, including reduced legal, consulting and marketing expenses and reflects the Company's shift in operational focus to a more asset-light model.
Operational Highlights
Numinus Wellness Clinic Network
Numinus Wellness clinics generated revenue of $3.36 million during Q3 2024, a 7% decrease compared to $3.6 million during Q2 2024, and a decrease of 18% compared to $4.1 million during Q3 2023. The decrease in clinic network revenues during Q3 2024 is due to a decrease in outpatient service revenues.
- 15,750 clinical appointments in Q3 2024, compared to 14,841 in Q2 2024
- 48,945 clinical appointments year to date in 2024, compared to 47,810 in 2023
- Average of 250.0 appointments per operating day in Q3 2024, compared to 251.54 in Q2 2024
- 6.7% of appointments during Q3 2024 were made by new clients
- 23.0% of appointments during Q3 2024 were KAT or Ketamine/Spravato medicine-related
- 6.3% of appointments during Q3 2024 were for TMS services
On May 7, 2024, the Company announced as part of its strategic plan, Numinus has entered into an agreement with the Canadian Centre for Psychedelic Healing ("Field Trip Health"), which provides psychedelic-assisted therapy in five Canadian clinics under the Field Trip Health brand. Therapists in Canada who are contracted with Numinus will have the option to transition to Field Trip Health. Through the arrangement, the Company will earn a portion of the revenue generated from the referral of patients of its existing Canadian business to Field Trip Health. Once the operation transfer is finished, Numinus clinics in Montreal, Toronto, and Vancouver will be closed.
Numinus Clinical Research
Revenues from Cedar Clinical Research ("CCR") during Q3 2024 were $0.8 million, an increase of 11% compared to Q2 2024, and a 20.0% decrease compared to Q3 2023.
CCR managed 15 clinical trials, including 233 patient appointments in Q3 2024, compared to 15 clinical trials and 260 patient appointments in Q2 2024. On April 17, 2024, the Company announced that CCR was chosen as one of multiple sites for Cybin's Phase 3 pivotal, multinational clinical trial of CYB003 for the adjunctive treatment of Major Depressive Disorder ("MDD"). On May 20, 2024, the Company announced that Health Canada had approved its Clinical Trial Application to examine the feasibility of a group model in MDMA-assisted psychotherapy, enrolling trainee practitioners as participants. It is anticipated that the clinical trials will be conducted at a clinic in Vancouver, Canada.
Practitioner Training
The Company has built a fulsome certification program to train practitioners in ketamine, 3,4-Methyl enedioxy methamphetamine ("MDMA"), and psilocybin-assisted therapy ("Numinus Training Program") that leverages its expertise in clinic-based treatment and clinical research. The program is accredited by major regulatory bodies in Canada and the U.S. and is provided in a blended learning format to optimize adult learning.
- As of May 2024, over 1,650 learners have enrolled in Numinus Training Programs, with learners coming from 18 countries
- Became accredited as a psychedelic therapy training provider by the Oregon Health Authority
- Expanded its offering with the initiation of a contract with a leading research institution to train their research providers on evidence-based practices and protocols to support clients in specific psychedelic clinical trials
- Training revenue increased by 114.2% in Q3 2024 to $168,830, compared to $78,837 in Q2 2024
Corporate Updates
On June 24, 2024, the Company announced that Donna Wong had resigned as a director from the Board of Numinus.
Balance Sheet and Liquidity
Numinus ended the quarter with a total cash balance of $3.7 million and working capital of $2.0 million.
Q3 2024 Performance Metrics
| | For the quarter ended: |
| | May 31, 2024
(Q3 2024) | Feb. 29, 2024
(Q2 2024) | % change |
| Numinus U.S. Clinic Network revenues | 3,355,869 | 3,609,324 | -7.0 % |
| Practitioner Training revenues | 168,830 | 78,837 | 114.2 % |
| Numinus Clinical Research revenues | 824,082 | 744,136 | 10.7 % |
| Total Revenue | $4,348,781 | $4,432,297 | -1.9 % |
| Cost of revenue | (3,390,965) | (3,370,529) | 0.6 % |
| Gross Profit (Loss) | $957,816 | $1,061,768 | -9.8 % |
| Gross profit margin | 22.0 % | 24.0 % | -200 bps |
| Operating expenses and other items | 6,092,503 | 7,334,204 | -16.9 % |
| Loss and comprehensive loss | $(5,134,687) | $(5,705,901) | n/a |
Numinus' unaudited condensed consolidated interim financial statements for the three months ended May 31, 2024, and related management's discussion and analysis are available on Numinus' Investor Relations website at www.investors.numinus.com and under the Company's profile on SEDAR+ at www.sedarplus.ca. These documents were prepared in accordance with IFRS.
Proposed Transaction
On June 20, 2024, the Company announced that it had executed a letter of intent to acquire MedBright AI Investments ((CSE: MBAI) by way of a statutory plan of arrangement ("Proposed Transaction").
The strategic combination of MedBright's AI machine-learning platform with Numinus' significant expertise in traditional therapy, clinic management, patient care, insurance reimbursement, and psychedelic-assisted treatment is expected to enhance revenue generation through a unique AI-enabled offering available to the growing number of U.S. mental health providers. Specifically, the AI Offering will leverage Numinus' industry-leading experience and data related to providing reimbursed care for drug-assisted therapy to allow therapists to address a key challenge in building out the infrastructure necessary to generate reimbursed revenue.
To signify its new strategic direction and focus, the Company intends to rebrand as Numinus Intelligence upon closing, a name that reflects the commitment to leveraging AI and data science to expand mental health services and solutions across the U.S. The Company's ticker symbol of the Toronto Stock Exchange will remain NUMI. In preparation for the transaction, a transition team has been formed to reduce costs, preserve cash and work to increase revenues through the period before the Proposed Transaction is complete.
Pursuant to the terms of the LOI, as consideration for the acquisition of all of the issued and outstanding common shares in the capital of MedBright AI ("MedBright AI Shares"), Numinus will issue 1.86 common shares of Numinus ("Numinus Shares") for each MedBright AI Share such that it is anticipated that Numinus will issue an aggregate of approximately 204,729,372 Numinus Shares, which will represent ownership of approximately 39% of the pro forma company on an undiluted basis, based on the current capitalization of Numinus and MedBright AI.
The Proposed Transaction is subject to a number of conditions precedent, including, among other things, the negotiation and execution of a definitive arrangement agreement, completion of satisfactory due diligence by each party, receipt of certain regulatory approvals and the approval of the Proposed Transaction by shareholders of each of Numinus and MedBright AI. The LOI is binding with respect to exclusivity and non-binding in all other aspects and serves as an important step in advance of a definitive arrangement agreement.
Conference Call and Webcast Details
Interested parties are invited to participate in the Company's Q3 2024 results conference call and webcast occurring on July 11 at 5:30 p.m. Eastern time / 2:30 p.m. Pacific time. During the call, Numinus executives will review the Company's performance and recent initiatives and answer questions from analysts and previously provided investor questions.
To listen to the live webcast, please register at:
https://events.q4inc.com/attendee/881868667
The webcast will also be archived on the Events and Presentations page of Numinus' Investor Relations website:
www.investors.numinus.com/events-and-presentations.
To participate in the live conference call, please use the following dial-in information:
- 1 (888) 330-3632 (Toll-free North America)
- 1 (646) 960-0837 (International)
- Please ask to participate in Numinus' Q3 2024 Results Call.
To avoid any delays in joining the call, please dial in at least five minutes prior to the call start time. If prompted, please provide the conference passcode 3547386.
About Numinus
Numinus Wellness Inc. (TSX: NUMI) (OTCQX: NUMIF) helps people to heal and be well through the development and delivery of innovative mental health care and access to safe, evidence-based psychedelic-assisted therapies. The Numinus model – including psychedelic research and clinic care – is at the forefront of a transformation aimed at healing rather than managing symptoms for depression, anxiety, trauma, pain and substance use. At Numinus, we are leading the integration of psychedelic-assisted therapies into mainstream clinical practice and building the foundation for a healthier society.
Learn more at www.numinus.com and follow us on LinkedIn, Facebook, Twitter, and Instagram.
Contact:
For more information: Investor Contact: Craig MacPhail, invest@numinus.com