Better Home & Finance Holding Company (NASDAQ:BETR) Q4 2024 Earnings Conference Call March 19, 2025 8:30 AM ET Company Participants Hana Khosla - Vice President of Corporate Finance & Investor Relations Vishal Garg - Founder & Chief Executive Officer Kevin Ryan - Chief Financial Officer Ryan Grant - Co-Founder & President of Retail Lending at NEO Home Loans Conference Call Participants Eric Hagen - BTIG Jake Kooyman - Oppenheimer Alex Bond - KBW Reggie Smith - JP Morgan Michael Kaye - Wells Fargo Jamie Frie ...

Revenue and Business Operations - The company derives almost all of its revenue from its mortgage loan production business, referred to as Home Finance, and related services [182]. - Approximately 30% of the company's Funded Loan Volume for the fiscal year ended December 31, 2024, was secured by properties concentrated in California (12%), Texas (9%), and Florida (9%) [187]. - The company has invested significant resources in developing new products and refining existing offerings, focusing on long-term growth areas despite reductions in near-term spending [182]. - The company is expanding its Better Plus business lines, including partnerships with third-party real estate agents and insurance providers [182]. - The company has been expanding internationally, including operations in the United Kingdom [182]. Risks and Compliance - The company faces risks associated with non-conforming loans, which involve a high degree of business and financial risk, potentially leading to substantial losses [184]. - The company is subject to significant legal and reputational risks related to the privacy and security of customer information, with approximately 10,000 data points captured per customer during the loan transaction process [194]. - The company may experience increased claims and reputational damage due to risks associated with new product offerings and potential defects in technology [182]. - The company is required to comply with various cybersecurity regulations, including the NYDFS Cybersecurity Regulation, which mandates the establishment of a cybersecurity program [196]. - The company acknowledges that failure to accurately predict demand for new products could adversely affect its financial condition and results of operations [183]. - The company faces significant risks related to network security breaches, which could lead to increased costs, litigation, and reputational damage [197]. - Inappropriate access to customer information could result in financial liabilities and regulatory actions, potentially impacting the company's financial condition [198]. - The company operates in a heavily regulated industry, requiring compliance with a wide array of U.S. federal, state, and local laws, which may be inconsistent [234]. - The company is subject to various telecommunications, data protection, and consumer protection laws, with ongoing compliance and monitoring required as these laws evolve [237]. - Regulatory actions for noncompliance could result in fines, loss of licenses, and damage to the company's reputation, affecting its ability to operate [240]. Financial Condition and Performance - The company has incurred debt to finance operations and acquisitions, which may limit its ability to raise additional funds for working capital and other business activities [224]. - The company is dependent on warehouse lines of credit for funding loans, and any termination of these facilities could materially impact its liquidity [227]. - A decline in the performance of loans underlying warehouse lines could affect the company's ability to renew these lines [229]. - The company is exposed to interest rate risk due to variable rates on borrowings, which could increase debt service obligations and decrease net income [233]. - The company has experienced net losses in recent years, leading to lower advance rates under warehouse facilities [227]. - The company reported a net loss of $206,290 thousand for 2024, a decrease in loss of 61.6% from $536,420 thousand in 2023 [487]. - Total liabilities increased to $971,227 thousand in 2024, up 24% from $782,954 thousand in 2023 [486]. - Customer deposits surged to $134,130 thousand in 2024, compared to $11,839 thousand in 2023, marking an increase of 1,133% [486]. Technology and Innovation - The company relies on proprietary technology, including its loan operating system, Tinman, to deliver services and evaluate loan applicants, making technological adaptation critical for growth [199]. - The loan production process is increasingly dependent on technology, and failure to meet advertised processing times could adversely affect the company's reputation and financial performance [200]. - The integration of AI technology is ongoing, and the company must address ethical and legal challenges to maintain competitive advantage and financial performance [207]. - The use of third-party software and services poses risks, including potential errors or failures that could materially affect the company's operations and financial results [209]. Stock and Market Performance - The market price of Class A Common Stock has shown significant weakness, influenced by the company's ability to integrate operations and execute its business plan [281]. - Sales of substantial amounts of Class A Common Stock could adversely affect its market price and impair capital-raising efforts [283]. - CEO Vishal Garg controls approximately 20% of the voting power and could increase to about 34.9% as Class B shares convert to Class A shares [284]. - The company does not expect to pay any cash dividends for the foreseeable future, with future determinations at the discretion of the Board [291]. - The existence of multiple classes of common stock may adversely affect the value and liquidity of Class A Common Stock, potentially leading to a less active trading market [289]. Regulatory Environment - The company must maintain appropriate state licenses to produce or service loans, with risks of inadvertently conducting unlicensed activities [250]. - The evolving regulatory environment may lead to increased scrutiny and enforcement actions, impacting the company's business strategies and growth plans [245]. - Noncompliance with applicable laws could lead to civil and criminal liability, including class action lawsuits and diminished ability to sell loans [246]. - The CFPB has the authority to impose civil money penalties ranging from approximately $6,800 per day for ordinary violations to approximately $1,360,000 per day for knowing violations [262]. - The revised definition of "qualified mortgage" by the CFPB has created additional compliance burdens for lenders [258]. Growth and Future Outlook - The company anticipates that interest rates will remain its primary market risk for the foreseeable future [464]. - The company expects its exposure to foreign currency exchange risk to increase as it focuses growth on specific entities in the United Kingdom [478]. - The management team has limited experience in overseeing a public company, which could hinder effective management during the transition [292]. - The market opportunity estimates and growth forecasts presented are subject to significant uncertainty and may prove to be inaccurate [303].

Core Insights - BetterLife Pharma Inc. has completed an IND-enabling cardiac safety study for BETR-001, showing minimal impact on the hERG channel, which is crucial for cardiac function [1][2] - The CEO of BetterLife expressed satisfaction with the hERG safety data, which aligns with previous in vivo cardiac safety telemetry studies and indicates that BETR-001 acts as an antagonist at the 5HT-2B receptor, unlike LSD and other psychedelics [2] - The clean cardiac safety profile of BETR-001 brings the company closer to completing full IND-enabling studies and initiating clinical trials [2] Company Overview - BetterLife Pharma is focused on developing and commercializing BETR-001 and BETR-002 for neuro-psychiatric and neurological disorders [3] - BETR-001 is a non-hallucinogenic LSD derivative that is unregulated and can be self-administered, with a synthesis patent that eliminates regulatory hurdles [4] - BETR-002, based on honokiol, is also in preclinical studies and targets anxiety-related disorders, including benzodiazepine dependency [5]

Financial Performance - Total net revenues for the three months ended September 30, 2024, reached $28,994 thousand, a significant increase of 489% compared to $4,907 thousand for the same period in 2023[212]. - Gain on loans, net for the three months ended September 30, 2024, was $21,503 thousand, representing a 74% of total net revenues, compared to $11,553 thousand in the same period of 2023, which was a 235% increase[213]. - Total net revenues for the nine months ended September 30, 2024, were $83.5 million, an increase from $54.6 million in the same period in 2023[254]. - Net loss for the three months ended September 30, 2024 was $(54,210), compared to $(353,889) in the same period of 2023[252]. - Earnings per share attributable to common stockholders (Basic) for the three months ended September 30, 2024 was $(3.58), compared to $(35.63) in the same period of 2023[252]. Loan Volume and Activity - Funded Loan Volume for the three months ended September 30, 2024, was $1,035 million, up approximately 42% from $731 million in the same period of 2023[223]. - Refinance Loan Volume increased by approximately 177% to $130 million in the three months ended September 30, 2024, from $47 million in the same period of 2023[224]. - D2C Loan Volume for the three months ended September 30, 2024, was $776 million, reflecting a 102% increase from $384 million in the same period of 2023[227]. - HELOC Loan Volume reached $166 million in the three months ended September 30, 2024, a substantial increase from $28 million in the same period of 2023[226]. - Total Loans funded in the three months ended September 30, 2024, amounted to 3,443, a 67% increase from 2,067 in the same period of 2023[229]. Revenue Sources - Better Plus revenue, which includes non-mortgage product offerings, accounted for 11% of total net revenues in the three months ended September 30, 2024[213]. - Gain on Sale Margin increased by approximately 50 basis points to 2.08% during the three months ended September 30, 2024 from 1.58% for the same period in 2023[233]. - Gain on sale of loans, net increased by $6.2 million or 65% to $15.8 million for the three months ended September 30, 2024, compared to $9.6 million for the same period in 2023[255]. - International lending revenue increased by $0.1 million or 11% to $1.2 million for the three months ended September 30, 2024, compared to $1.1 million for the same period in 2023[262]. - Mortgage interest income increased by $1.8 million or 51% to $5.4 million for the three months ended September 30, 2024, compared to $3.6 million for the same period in 2023[271]. Expenses and Cost Management - Total expenses for the three months ended September 30, 2024 were $83,078, down from $358,137 in the same period of 2023[252]. - Compensation and benefits expenses decreased by $46.6 million or 55% to $37.8 million for the three months ended September 30, 2024, compared to $84.3 million for the same period in 2023[279]. - General and administrative expenses decreased by $1.6 million or 11% to $12.6 million for the three months ended September 30, 2024, compared to $14.2 million for the same period in 2023[281]. - Technology expenses increased by $0.9 million or 14% to $7.2 million for the three months ended September 30, 2024, compared to $6.3 million for the same period in 2023[283]. - Marketing and advertising expenses increased by $7.0 million or 139% to $12.1 million for the three months ended September 30, 2024, compared to $5.1 million for the same period in 2023[286]. Cash Flow and Financing - The company experienced a significant increase in net cash used by operating activities, totaling $273.945 million for the nine months ended September 30, 2024, which is an increase of 245% compared to $79.416 million for the same period in 2023[308]. - Net cash used in investing activities rose to $111.825 million for the nine months ended September 30, 2024, a 166% increase from $42.066 million in the prior year[309]. - The company reported net cash provided by financing activities of $93.108 million for the nine months ended September 30, 2024, a decrease of 72% from $330.929 million for the same period in 2023[310]. - As of September 30, 2024, the company had an aggregate available amount of $425 million across three warehouse lines of credit[301]. - The company had an outstanding amount of $134.481 million on its warehouse lines of credit as of September 30, 2024, compared to $126.218 million at the end of 2023[302]. Strategic Focus and Challenges - The company plans to continue investing in technology to enhance customer experience and reduce operational costs through automation[211]. - The company aims to expand its B2B relationships, currently primarily with Ally Bank, to diversify revenue streams[215]. - The company is focused on expanding its customer base and growing market share in existing and new markets[315]. - The company is facing challenges due to elevated interest rates and lower home sales, impacting its financial performance[315]. - The company aims to restore growth and expand its business in the long term[315]. Compliance and Governance - The company executed a 1-for-50 reverse stock split on August 16, 2024, to comply with Nasdaq's minimum bid price requirement[303]. - The company regained compliance with Nasdaq listing requirements as of August 30, 2024, with the closing bid price of its common stock at $1.00 or greater for the preceding 10 consecutive business days[306]. - The company is focused on maintaining its listing on the Nasdaq Capital Market[316]. - The company acknowledges the risks associated with its capital structure and governance[316]. - The company is classified as a smaller reporting company and is not required to provide extensive market risk disclosures[319].

Financial Data and Key Metrics Changes - Funded loan volume increased to $1.035 billion, representing a 42% year-over-year increase and an 8% quarter-over-quarter increase, exceeding the guidance of $1 billion [10] - Q3 revenue was $29 million, down from $32 million in the previous quarter but up from $5 million in the same quarter last year, with an adjusted EBITDA loss of approximately $39 million and a GAAP net loss of approximately $54 million [11][37] - Year-over-year gain on sale margin improved from 1.58% in Q3 last year to 2.08% in Q3 this year [12] Business Line Data and Key Metrics Changes - Funded loan volume growth was driven by increases across all product categories: purchase loans increased by 13%, home equity loans increased by 493%, and refinance loans increased by 177% year-over-year [14] - 75% of funded loan volume was generated through the direct-to-consumer (D2C) channel, while 25% was generated through the B2B partner channel [37] Market Data and Key Metrics Changes - The company noted that the 30-year fixed mortgage rates remained above 7%, impacting customer affordability [14] - The direct-to-consumer segment grew significantly during the COVID refi boom but has since stabilized at around 20% of total mortgage originations, while the distributed retail channel accounted for approximately 40% to 45% of the market from 2021 to 2023 [33] Company Strategy and Development Direction - The company aims to enhance growth while managing costs, targeting profitability in the medium term [9] - Strategic priorities for 2024 include increasing conversion through additional products and services, improving operational efficiency, and diversifying distribution channels [13][25] - The launch of Betsy, an AI loan assistant, is expected to enhance operational efficiency and customer experience [20][24] Management Comments on Operating Environment and Future Outlook - Management expects continued improvement in the market environment, with a slow grind lower in mortgage rates anticipated throughout 2025 [58] - The company has pivoted to focus more on purchase mortgages, with 71% of volume now being purchase mortgages, which is a significant shift from previous years [60] - The outlook for 2025 includes modest improvements in the operating environment, with a focus on leveraging technology to enhance customer acquisition and operational efficiency [59][62] Other Important Information - The company ended Q3 2024 with $480 million in cash and investments, indicating strong capital positioning for growth [38] - A reverse stock split was completed to regain compliance with NASDAQ listing requirements, resulting in approximately 15.1 million shares outstanding post-split [39][40] Q&A Session Summary Question: Differentiation of AI loan assistant Betsy - Betsy is advanced compared to other AI technologies in the lending space, integrating directly into the company's platform and automating significant parts of the mortgage process, unlike traditional chatbots [44][47] Question: Outlook for 2025 and operating environment - The company expects a slow improvement in the market environment, with a focus on purchase mortgages and leveraging technology to enhance efficiency and customer service [58][62]

Financial Performance - Q3 2024 funded loan volume reached $1.035 billion, representing a 42% increase year-over-year and an 8% increase quarter-over-quarter[1] - Revenue for Q3 2024 was $29.0 million, down from $32.3 million in Q2 2024 but up from $4.9 million in Q3 2023[2] - Net loss for Q3 2024 was $54.1 million, compared to $41.4 million in Q2 2024 and $353.9 million in Q3 2023[2] - Adjusted EBITDA loss for Q3 2024 was $38.7 million, compared to $23.3 million in Q2 2024 and $53.9 million in Q3 2023[2] - Adjusted EBITDA for the period was $(38,740) thousand, compared to $(53,897) thousand in the previous period, indicating an improvement of approximately 28%[15] Loan Volume and Metrics - Direct-to-consumer (D2C) loan volume was $776 million, a 102% increase year-over-year and a 16% increase quarter-over-quarter, making up 75% of funded loan volume[3] - Funded loan volume metrics include various categories such as purchase loans, refinance loans, and HELOC loans, which are critical for assessing the company's lending performance[17] - The total number of loans funded in the period, including purchase, refinance, and HELOC loans, is a key performance indicator for the company's growth strategy[17] Expenses and Cost Management - Total expenses increased by approximately $9.5 million quarter-over-quarter due to higher marketing spend and loan production team compensation[4] - Better aims to manage towards profitability in the midterm by balancing growth expenses with corporate cost reductions[1] Assets and Liabilities - Total assets as of September 30, 2024, amounted to $845,163 thousand, with cash and cash equivalents at $207,673 thousand[15] - Total liabilities were reported at $844,645 thousand, with a significant portion attributed to convertible notes totaling $518,012 thousand[15] - The company has an accumulated deficit of $(1,851,013) thousand, reflecting ongoing financial challenges[16] - Total stockholders' equity stands at $518 thousand, highlighting a minimal equity base relative to total liabilities[16] - The company has $54,414 thousand in short-term investments, providing liquidity for operational needs[15] - The company has $134,481 thousand in warehouse lines of credit, which is essential for managing liquidity and funding operations[15] Strategic Initiatives - The company launched Betsy™, the first voice-based AI loan assistant for the US mortgage industry, to enhance customer experience and improve loan-team efficiency[1] - The company plans to leverage Tinman™ to power local loan officers through 'NEO Powered by Better' to diversify distribution channels[4] - The company expects Q4 funded loan volume to be approximately in-line with Q3, driven by growth initiatives despite softer seasonality[1]

Financial Performance - Total net revenues for the three months ended June 30, 2024, were $32.262 million, a slight increase from $31.095 million in the same period of 2023[185]. - Gain on loans, net for the three months ended June 30, 2024, was $24.229 million, representing 75% of total revenue, down from 85% in the same period of 2023[185]. - Total net revenues for the three months ended June 30, 2024, increased to $32.3 million, compared to $31.1 million for the same period in 2023, representing a growth of 3.8%[220]. - Gain on sale of loans, net decreased by $2.3 million or 11% to $18.4 million for the three months ended June 30, 2024, compared to $20.7 million for the same period in 2023[221]. - Total net revenues for the six months ended June 30, 2024, increased to $54.5 million, compared to $49.7 million for the same period in 2023, representing a growth of 9.0%[220]. Loan Volume and Activity - Funded Loan Volume for the three months ended June 30, 2024, was $962 million, an increase of approximately 5% from $912 million in the same period of 2023[192]. - D2C Loan Volume increased by approximately 28% to $670 million in the three months ended June 30, 2024, compared to $522 million in the same period of 2023[196]. - B2B Loan Volume decreased by approximately 25% to $292 million in the three months ended June 30, 2024, from $390 million in the same period of 2023[197]. - Refinance Loan Volume increased by approximately 26% to $77 million in the three months ended June 30, 2024, compared to $61 million in the same period of 2023[193]. - HELOC Loan Volume increased significantly to $90 million in the three months ended June 30, 2024, from $9 million in the same period of 2023[195]. - Total Loans funded in the three months ended June 30, 2024, were 2,995, an increase of approximately 19% from 2,516 in the same period of 2023[197]. - Purchase and refinance loans comprised 2,134 of the Total Loans in the three months ended June 30, 2024, while HELOC and closed-end second lien loans comprised 861[198]. Expenses and Losses - Total expenses for the three months ended June 30, 2024, were $73,424, compared to $74,649 for the same period in 2023[218]. - Net loss for the three months ended June 30, 2024, was $(41,365), compared to $(44,010) for the same period in 2023[218]. - Compensation and benefits expenses increased to $35,254 for the three months ended June 30, 2024, from $33,996 in the same period of 2023[218]. - Marketing and advertising expenses increased to $8,531 for the three months ended June 30, 2024, compared to $3,101 for the same period in 2023[218]. - Gain on Sale Margin decreased by approximately 38 basis points to 2.52% during the three months ended June 30, 2024, from 2.90% for the same period in 2023[200]. Cash Flow and Financing - Net cash used in operating activities increased by 85% to $263.4 million for the six months ended June 30, 2024, compared to $142.0 million for the same period in 2023[262]. - Net cash used in investing activities rose by 47% to $63.0 million for the six months ended June 30, 2024, up from $43.0 million in the prior year[263]. - Net cash provided by financing activities surged by 668% to $144.8 million for the six months ended June 30, 2024, compared to a cash outflow of $25.0 million in the same period last year[264]. - As of June 30, 2024, the company had $378.8 million in cash and cash equivalents, compared to $528.6 million in principal amount outstanding under the Convertible Note[258]. - The company reported a total of $247.4 million in outstanding warehouse lines of credit as of June 30, 2024, compared to $126.2 million at the end of 2023[256]. Strategic Focus and Challenges - The company plans to continue investing in technology to enhance customer experience and reduce operational costs through automation[183]. - The company emphasizes the importance of maintaining and improving its business model to ensure operational effectiveness[268]. - The company is focused on expanding its customer base and growing market share in existing markets while entering new markets[268]. - The company acknowledges the impact of elevated interest rates and lower home sales on its business performance[268]. - The company aims to restore growth and expects long-term expansion of its business[268]. - The company is committed to developing new products and features that meet market needs and achieve market acceptance[268]. - The company faces risks related to compliance with laws and regulations affecting its operations[268]. - The company highlights the need for effective internal controls over financial reporting to remediate existing material weaknesses[268]. - The company recognizes the challenges in recruiting and retaining experienced management and team members[270]. - The company is aware of the potential impact of negative media coverage on morale and workplace culture[270]. Stock and Market Compliance - The company received an extension until October 7, 2024, to comply with the $1.00 per share requirement for continued inclusion on The Nasdaq Capital Market[257]. - A reverse stock split at a ratio of 1-for-50 was approved, effective August 16, 2024[260].

Financial Data and Key Metrics Changes - Funded loan volume increased by 45% quarter-over-quarter, reaching approximately $962 million in Q2 2024, compared to a prior guidance of above $800 million [6][20] - Revenue rose by approximately 41% quarter-over-quarter, totaling around $31 million [6][20] - Adjusted EBITDA loss improved by approximately $6 million compared to Q1 2024, amounting to a loss of approximately $25 million [20] - Total GAAP net loss for Q2 was approximately $42 million, an improvement of about $9 million from Q1 [20] - Total expenses remained flat at approximately $73 million in Q2 compared to $74 million in Q1 [20][13] Business Line Data and Key Metrics Changes - Purchase loan volume increased by 50%, HELOC volume increased by 76%, while refinance loan volume decreased by 5% [9] - The second quarter funded loan volume was 83% purchase, 8% refinance, and the remainder home equity products [20] - Gain on sale margin improved to 2.43% in Q2 2024 from 2.37% in Q1 2024, driven by increased pricing and improved customer retention [10] Market Data and Key Metrics Changes - The company reported that home equity products remain attractive to customers due to high home values and persistent high rates, allowing borrowers to tap into over $30 trillion in home equity [7] - The company expects funded loan volume to increase in 2024 compared to 2023, with a target of at least $1 billion in Q3 2024 [23] Company Strategy and Development Direction - The company aims to enhance growth while maintaining expense discipline, targeting profitability in the medium term [5][19] - Strategic priorities include increasing loan officer footprint, adding marketing channels, and expanding product offerings [8][14] - Investments in AI and automation are expected to drive operational efficiency and customer conversion [12][13][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the mortgage market remains challenged but expressed optimism about growth opportunities as consumer demand returns [5][19] - The company anticipates a potential tailwind from expected rate cuts, which could stimulate refinancing activity [47] - Management emphasized the importance of maintaining strong relationships with real estate agents and brokers to drive purchase loans [39] Other Important Information - The company is executing a reverse stock split at a ratio of one post-split share for every 50 pre-split shares to regain compliance with NASDAQ listing requirements [22] - The company ended Q2 2024 with approximately $507 million in cash and investments, indicating strong liquidity for growth [21] Q&A Session Summary Question: Could you provide specifics on the AI initiatives and their impact on operational efficiency? - Management highlighted three main areas of impact: sales and customer support, processing times, and underwriting efficiency, with expectations to lower total loan manufacturing costs by over 50% [25][29][30] Question: What is the addressable opportunity for the B2B pilot program? - Management noted a significant opportunity with over $2 trillion in personal loans that could be addressed through partnerships for HELOC products [31][32] Question: What origination volume is needed to reach breakeven? - Management indicated that breakeven could be achieved with a volume of just over $10 billion, with ongoing efforts to improve gain on sale margins [34][35] Question: How will upcoming broker commission practice changes impact the industry? - Management believes that reducing friction in the mortgage process will lead to more transactions, benefiting the company [40][41] Question: How much rate cut is needed for refi volumes to increase? - Management suggested that a 50 basis point cut could significantly increase refinancing activity, with a potential $1.5 trillion in refinance volume available [45][46] Question: What is the revenue margin differential between refi and purchase business? - Management noted that refi typically has higher margins due to lower costs associated with processing [49][52] Question: Can you discuss loan officer capacity for originations? - Management stated that loan officer productivity is high, but bottlenecks exist in recruiting and training experienced loan officers [55][56]

Company Overview - BetterLife Pharma Inc. is an emerging biotechnology company focused on developing and commercializing compounds BETR-001 and BETR-002 for neuro-psychiatric and neurological disorders [6] - BETR-001 is a non-hallucinogenic derivative of LSD, currently in preclinical and IND-enabling studies, and is unique as it is unregulated and can be self-administered [2][4] - BETR-002, also in preclinical and IND-enabling studies, is based on honokiol, aimed at treating anxiety-related disorders including benzodiazepine dependency [7] Recent Developments - The company has issued 350,000 common shares and 350,000 share purchase warrants due to the conversion of convertible debentures totaling $35,000, with warrants exercisable at $0.10 per share until August 31, 2026 [5] - A review by the British Columbia Securities Commission prompted BetterLife to clarify disclosures regarding beneficial ownership by its CEO, Dr. Ahmad Doroudian [4] Intellectual Property - BetterLife holds a synthesis patent for BETR-001 that eliminates regulatory hurdles, and a pending patent covering treatment methods for major depressive disorder, anxiety disorder, and neuropathic pain [2]

Core Insights - BetterLife Pharma Inc. is focused on developing and commercializing innovative treatments for mental disorders, specifically through its compounds BETR-001 and BETR-002 [1][9] - BETR-001, a non-hallucinogenic derivative of LSD, is currently in preclinical and IND-enabling studies, with a pending patent for its composition and method of use targeting major depressive disorder, anxiety disorder, and neuropathic pain [5][9] - The company is collaborating with researchers from Carleton University to present findings on BETR-001 at the FENS conference, highlighting its potential therapeutic effects on neuroplasticity and neurotransmission [1][8] Company Overview - BetterLife Pharma is an emerging biotechnology company primarily focused on neuro-psychiatric and neurological disorders [9] - The company also has a drug candidate aimed at treating viral infections and is exploring strategic alternatives for its further development [10] Research and Development - BETR-002 is based on honokiol, an active ingredient from magnolia bark, and is in preclinical studies targeting anxiety-related disorders, including benzodiazepine dependency [3] - Recent preclinical findings indicate that BETR-001 activates key signaling pathways related to depressive disorders and may also be effective in treating neurodegeneration and addiction disorders [5][8]