Q2 Fiscal 2024 Highlights
- Cash position of
$6.6 million as ofFebruary 29, 2024 - Gross profit of
$0.5 million , a 22.7% decline over Q1 2024 - Revenue of
$5.0 million , a 15.4% decline over Q1 2024 - Enrolment in Numinus training programs doubled to over 1,400 learners, compared to over 700 in Q1 2024
- Managed 15 clinical trials at
Cedar Clinical Research - Provided 17,661 client appointments in
Numinus Wellness Clinics
Subsequent to Quarter End
- On
March 20, 2024 , the Company announced that it had submitted a Clinical Trial Application toHealth Canada to examine the feasibility of a group model in MDMA-assisted psychotherapy, enrolling trainee practitioners as participants
All financial results are reported in Canadian dollars unless otherwise stated. |
"Over the past two quarters, Numinus has steadfastly focused on fortifying our operations to ensure we are well-positioned for sustainable growth and profitability in the quarters to come," said
"We are also pleased with the success of our Numinus training program. As well as a doubling of the learners enrolled in the program, our Introduction to Psychedelics course is proving to be a pathway to our paid courses, and we recently introduced training for practitioners working with drug developers to facilitate clinical trial research." added
Revenue
Revenues declined 15.4% from the prior quarter to
Gross Margin
Sequentially, gross margin declined 310 basis points in Q2 2024 to 33.0% from 36.1% in Q1 2024, reflecting the decrease in revenue compared to the previous quarter.
Operating expenditures
Operating expenditures were
Operational Highlights
Numinus Wellness Clinic Network
Wellness clinics generated revenue of
- 17,661 clinical appointments in Q2 2024, compared to 19,961 in Q1 2024
- Average of 299.3 appointments per operating day in Q2 2024, compared to 316.8 in Q1 2024
- 5.8% of appointments during Q2 2024 were made by new clients
- 18.3% of appointments during Q2 2024 were KAT or Ketamine/Spravato medicine-related
- 6.4% of appointments during Q2 2024 were for TMS services
Revenues from CCR during Q2 2024 were
Numinus Clinical 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
- As of
March 2024 , over 1,400 learners have enrolled in Numinus Training Programs - Since the introduction of its free Introduction to Psychedelics training course, over 30 learners have gone on to take more advanced training with Numinus
- Numinus Training has diversified its offering to support leading research institutions to train research providers in evidence-based practices for supporting clients in psychedelic clinical trials
- Numinus Training has been working diligently on the
Oregon Health Authority audit to meet the legislative and competency requirements for psychedelic facilitators in that state
Corporate Updates
On
On
On
On
The Company's annual general meeting will be held on
Balance Sheet and Liquidity
Numinus ended the quarter with a total cash balance of
Numinus' unaudited condensed consolidated interim financial statements for the three months ended
Outlook
As an integrated mental healthcare provider, Numinus is building the critical infrastructure of clinical research support, practitioner training, and patient therapy to serve the expected demand for psychedelic-assisted therapy ("PAT"). To take advantage of what it sees as a significant growth opportunity, the Company has focused on optimizing its operations and controlling costs since the third quarter of fiscal 2023.
The Company expects significant growth from the sector as acceptance of PAT as an effective treatment for serious mental health conditions increases and psychedelic drug candidates advance through the drug approval process. According to the newsletter Psychedelic Alpha1, there are currently over 90 potential psychedelic drugs in the preclinical to phase 3 clinical trial stages of drug development. This includes the
It is the Company's view that these trends indicate the beginning of a period when psychedelic treatments for serious mental health conditions may become increasingly available to the public and provide opportunities for continued growth across the three areas of its sector focus.
- As a leading provider of clinical research support,
Numinus' Cedar Clinical Research (CCR) anticipates that it will continue working directly with drug developers to provide research sites for drug candidates in phase 2 and 3 trial stages. In the last 12 months, CCR has facilitated 26 clinical trials and has established relationships with both psychedelic and non-psychedelic drug developers, which positions it to secure further contracts. - A component of many psychedelic drug treatments is therapy to guide patients through their transformation. Numinus hopes to leverage its clinic footprint, treatment expertise in multiple psychedelics and first-mover advantage in PAT to become the provider of choice.
- To meet the demand for trained practitioners to administer therapies for approved treatments, Numinus has established a comprehensive program. Accreditation is available through major regulatory bodies in
Canada and theU.S. after completing the course, which has proven to attract learners and serve as validation for their future clients. The program has demonstrated scalability, doubling enrollment over the past six months. The Company is also in the early stages of launching therapist training programs for drug developers to facilitate clinical research trials.
To prepare the Company for the growth expected from the psychedelic sector, Numinus launched two critical initiatives: cost containment and strategic realignment.
- A focus on profitable operations in the
U.S. : With psychedelic therapy treatment expected to be approved in theU.S. before other jurisdictions, the Company chose to discontinue its unprofitable clinic inPhoenix, Arizona . With the consolidation of operations at its successfulUtah clinics, Numinus is optimizing its patient experience and care model, improving efficiencies, and establishing best practices to be deployed in future expansion. - Reducing headcount: Since Q2 2023, Numinus has reduced its headcount by 60% by eliminating non-revenue roles and aligned all remaining employees on growth-oriented initiatives and activities. The resulting leaner and more efficient organization will drive profitable growth.
With the initiatives in place and positive trends in the psychedelic sector, the Company believes it is well-positioned for growth in the quarters to come.
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1 Psychedelic Alpha. Psychedelics Drug Development Tracker, https://psychedelicalpha.com/data/psychedelic-drug-development-tracker. Accessed |
Strategic Review
To best position the Company for continued growth, Numinus' Board of Directors (the "Board") initiated a review process to explore, review and evaluate a broad range of strategic alternatives that may be available to the Company to unlock shareholder value. The Board retained Stifel Canada as its financial and strategic advisor.
Conference Call and Webcast Details
Interested parties are invited to participate in the Company's Q2 2024 results conference call and webcast occurring on
To listen to the live webcast, please register at:
https://events.q4inc.com/attendee/472052579
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' Q2 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
Learn more at www.numinus.com and follow us on LinkedIn, Facebook, Twitter, and Instagram.
Forward-looking statements
This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are "forward-looking statements". Forward-looking statements can be identified by the use of words such as "expects", "does not expect", "is expected", "believes", "intends", "anticipates", "does not anticipate", "believes" or variations of these words, expressions or statements, that certain actions, events or results "may", "could", "would", "might" or "will be" taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, ability of Numinus to maintain or increase earnings; ability of Numinus to achieve or maintain profitability; results of changes to operations from a financial or business perspective; the effect of cost containment measures on Numinus business and financial position; changes to cash burn rate, expenses, corporate programs or priorities, or unanticipated costs affecting cash runway or the pathway to positive cashflow or profitability, the effect of any transaction or other activity undertaken by the company in connection with the strategic review; interest in, uptake of and the ability to commercialize the Numinus Training; receipt of and/or continued approval of the clinical trial application by
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