Nutriband (US:NTRB)2022-12-02 21:20Financial Performance - Revenue for the three months ended October 31, 2022, was $618,003, compared to $283,037 for the same period in 2021, representing a year-over-year increase of 118%[11] - Net loss for the three months ended October 31, 2022, was $1,075,485, compared to a net loss of $1,571,821 for the same period in 2021, showing an improvement of 32%[11] - The company reported a net loss of $1,075,485 or $(0.14) per share for the three months ended October 31, 2022, an improvement from a loss of $1,578,821 or $(0.23) per share in the same period of 2021[135] - For the nine months ended October 31, 2022, the company reported a net loss of $2,804,149, compared to a net loss of $2,407,701 for the same period in 2021, indicating an increase in losses of approximately 16.5%[18] - Total revenue for the nine months ended October 31, 2022, was $1,552,074, representing a significant increase from $930,264 for the same period in 2021, reflecting a growth of approximately 67%[96] - The company recorded a net cash used in operating activities of $2,173,193 for the nine months ended October 31, 2022, compared to $1,576,789 for the same period in 2021, reflecting an increase of approximately 37.6%[18] Assets and Liabilities - Total current assets decreased from $5,465,368 as of January 31, 2022, to $3,507,201 as of October 31, 2022, a decline of approximately 36%[10] - Total liabilities rose from $880,375 as of January 31, 2022, to $937,633 as of October 31, 2022, an increase of approximately 6.5%[10] - The company reported a total stockholders' equity of $9,731,566 as of October 31, 2022, down from $11,859,285 as of January 31, 2022, a decrease of about 18%[10] - The company had cash and cash equivalents of $2,816,318 as of October 31, 2022, down from $4,891,868 as of January 31, 2022, a decline of approximately 42%[10] - As of October 31, 2022, the company had cash and cash equivalents of $2,816,318 and working capital of $2,717,449[34] Expenses - Research and development expenses increased significantly to $290,718 for the three months ended October 31, 2022, from $161,000 in the same period of 2021, marking an increase of 80%[11] - Selling, general and administrative expenses for the three months ended October 31, 2022, were $1,049,532, compared to $1,452,778 for the same period in 2021, a decrease of 28%[11] - Selling, general and administrative expenses for the nine months ended October 31, 2022, were $2,726,256, an increase from $2,487,611 in the same period of 2021[137] - The company incurred an operating loss of $2,791,644 for the nine months ended October 31, 2022, and used cash flow from operations of $2,173,193[34] Revenue Sources - Revenue from the sale of goods was $1,325,127 for the nine months ended October 31, 2022, compared to $724,288 for the same period in 2021, reflecting an increase of about 83%[44] - Service revenues increased to $228,947 for the nine months ended October 31, 2022, from $205,976 in the same period of 2021, marking an increase of approximately 11%[44] Research and Development - The company has budgeted $5.0 million for research and development of its abuse deterrent fentanyl transdermal system, although total costs may exceed this amount[122] - The company has been developing transdermal pharmaceutical products through its subsidiary 4P Therapeutics, which is in the preclinical stage of development[23] - The company entered into a feasibility agreement with Kindeva Drug Delivery to develop the AVERSAL Fentanyl product, with an estimated cost of $1.7 million and a timeline of 8 to 12 months for completion[106] - The company incurred research and development expenses of $290,718 for its Aversa product during the three months ended October 31, 2022, compared to $161,000 in the same period of 2021[133] Acquisitions and Investments - The company formed Pocono Pharmaceuticals to leverage unique manufacturing capabilities and has acquired assets from Pocono Coated Products LLC[25] - The company’s acquisition of Pocono Coated Products for $6 million in stock and a $1.5 million promissory note has expanded its capabilities in transdermal product manufacturing[123] - The company issued 25,000 shares and warrants to BPM as part of a termination agreement for a distribution agreement[108] Risks and Challenges - The company expects to continue incurring substantial losses and negative cash flow for the foreseeable future due to ongoing product development and clinical trials[172] - The company faces significant risks including the ability to obtain necessary funding for product development and the success of clinical trials[174] - The FDA approval process may be longer and more expensive than anticipated, with no guarantee of approval for the lead product[175] - The company must adapt to changes in regulations and market conditions that could affect product viability and operations[175] - The company may struggle to protect its intellectual property rights, which could lead to costly litigation[175] - The impact of health pandemics, such as COVID-19, may disrupt operations and delay clinical programs, affecting overall business performance[174] Compliance and Governance - The company is subject to a settlement agreement with the SEC regarding inaccurate statements in SEC filings, which could lead to enforcement proceedings if not complied with[175] - The company has no off-balance sheet arrangements that could materially affect its financial condition[145] Stock and Shareholder Information - The weighted average shares of common stock outstanding for the three months ended October 31, 2022, were 7,803,264, compared to 7,589,457 for the same period in 2021[11] - As of October 31, 2022, the company had 1,282,671 outstanding shares with an average exercise price of $6.41 and an intrinsic value of $11,667[92] - The company granted 1,770,068 shares at an exercise price of $6.19 during the year ended January 31, 2022, with a remaining life of 4.70 years[92] Management and Compensation - The Company issued 11,667 shares to the CEO and 1,167 shares each to four independent directors, recording a compensation expense of $53,200[84] - The company reduced the annual salaries of its executives, including the CEO and CFO, from $250,000 and $210,000 to $150,000 and $110,000, respectively, as of July 31, 2022[99][100]