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Nutriband (NTRB) - 2025 Q1 - Quarterly Report
NTRBNutriband (NTRB)2024-05-31 17:54

Financial Performance - For the three months ended April 30, 2024, revenue was 408,532,adecreaseof14.3408,532, a decrease of 14.3% compared to 476,932 for the same period in 2023[12]. - Net loss for the three months ended April 30, 2024, was 1,898,077,comparedtoanetlossof1,898,077, compared to a net loss of 1,015,229 for the same period in 2023, representing an increase in loss of 86.7%[12]. - Revenue for the three months ended April 30, 2024, was 408,532,adecreaseof14.3408,532, a decrease of 14.3% compared to 476,932 for the same period in 2023[42]. - For the three months ended April 30, 2024, net sales were 408,532forPoconoPharmaceuticals,comparedto408,532 for Pocono Pharmaceuticals, compared to 401,057 in the same period of 2023[96]. - Gross profit for Pocono Pharmaceuticals was 164,786forthethreemonthsendedApril30,2024,downfrom164,786 for the three months ended April 30, 2024, down from 169,308 in 2023[96]. - Total operating expenses for the three months ended April 30, 2024, were 2,054,263,comparedto2,054,263, compared to 1,240,162 in the same period of 2023[96]. - The company's net loss for the three months ended April 30, 2024, was 1,898,077,or1,898,077, or (0.21) per share, compared to a loss of 1,015,235,or1,015,235, or (0.13) per share for the same period in 2023[134]. Assets and Liabilities - Total current assets increased to 8,729,940asofApril30,2024,comparedto8,729,940 as of April 30, 2024, compared to 1,021,863 as of January 31, 2024[10]. - Total liabilities increased to 1,791,367asofApril30,2024,comparedto1,791,367 as of April 30, 2024, compared to 1,078,919 as of January 31, 2024[10]. - As of April 30, 2024, the company recorded total assets of 15,154,480,withcorporateassetsat15,154,480, with corporate assets at 8,210,779 and Pocono Pharmaceuticals at 5,044,569[98].−AsofApril30,2024,netpropertyandequipmentamountedto5,044,569[98]. - As of April 30, 2024, net property and equipment amounted to 740,305, a decrease from 774,924asofJanuary31,2024[64].−AsofApril30,2024,netintangibleassetswere774,924 as of January 31, 2024[64]. - As of April 30, 2024, net intangible assets were 638,993, down from 667,280asofJanuary31,2024[71].−GoodwillasofApril30,2024,amountedto667,280 as of January 31, 2024[71]. - Goodwill as of April 30, 2024, amounted to 5,021,713, unchanged from January 31, 2024[48]. Cash Flow and Financing - Cash and cash equivalents increased to 8,347,740asofApril30,2024,from8,347,740 as of April 30, 2024, from 492,942 at the beginning of the period[17]. - The company reported a net cash used in operating activities of 833,926forthethreemonthsendedApril30,2024,comparedto833,926 for the three months ended April 30, 2024, compared to 749,864 for the same period in 2023[17]. - The company raised 8,400,000fromthesaleofcommonstockandwarrantsduringthethreemonthsendedApril30,2024[17].−Thecompanygenerated8,400,000 from the sale of common stock and warrants during the three months ended April 30, 2024[17]. - The company generated 8,400,000 from equity financing with European investors on April 19, 2024, of which 7.12millionwasfromrelatedparties[31].−Thecompanycompletedan7.12 million was from related parties[31]. - The company completed an 8,400,000 equity financing with European investors, where related parties invested a total of 7,120,000,receiving1,780,000sharesofcommonstockandwarrantsfor3,560,000shares[82].−Thecompanyhasreliedonsalesofsecuritiesandissuanceofdebttosupportcashflowfromoperationssinceinception[31].ResearchandDevelopment−Researchanddevelopmentexpensesrosesignificantlyto7,120,000, receiving 1,780,000 shares of common stock and warrants for 3,560,000 shares[82]. - The company has relied on sales of securities and issuance of debt to support cash flow from operations since inception[31]. Research and Development - Research and development expenses rose significantly to 974,535 for the three months ended April 30, 2024, compared to 400,430inthesameperiodof2023,anincreaseof143.5400,430 in the same period of 2023, an increase of 143.5%[12]. - Research and development expenses for 4P Therapeutics were 974,535 for the three months ended April 30, 2024, compared to 400,430in2023[96].−Thecompanyincurredapproximately400,430 in 2023[96]. - The company incurred approximately 2,950,998 in expenses related to the feasibility Workplan for the AVERSA Fentanyl product, with an estimated total cost of 2.5million[103].−Thecompanyrequiresapproximately2.5 million[103]. - The company requires approximately 13 million for research and development of the abuse deterrent fentanyl transdermal system, including clinical manufacturing and trials[120]. - The company has a three-year 5,000,000CreditLineNotefacilitytofundresearchanddevelopmentofitsAversaproduct[31].−Researchanddevelopmentcostsareexpensedasincurred,withnospecificfiguresprovidedinthedocuments[55].OperationalChallenges−Thecompanyexpectstocontinueincurringsubstantiallossesandnegativecashflowfortheforeseeablefutureduetoongoingproductdevelopmentandclinicaltrials[183].−Thecompanyfacessignificantchallengesinachievingmarketacceptanceforitsproductspost−FDAapproval,whichcouldadverselyaffectitsoperatingresultsandfinancialcondition[184].−Thedrugdeliveryindustryisrapidlyevolving,andthecompany′sfuturesuccessdependsonitsabilitytokeeppacewithtechnologicaladvancementsandchangingcustomerrequirements[185].−IfFDAapprovalisobtained,thecompanyanticipatesfacingstrongcompetitionfromwell−establishedfirmswithbetterresourcesandexistingrelationshipswithinthehealthcaresystem[186].−TheFDAregulatoryprocessmaybemoretime−consumingandcostlythananticipated,withnoguaranteeofapprovalfortheleadproduct[189].−ThereisariskthatthecompanymaynotbeabletolaunchanyproductsevenafterreceivingFDAmarketingapproval[189].StockandOptions−Theweightedaveragesharesofcommonstockoutstandingincreasedto9,159,869forthethreemonthsendedApril30,2024,from7,833,150inthesameperiodof2023[12].−Thecompanyissued390,000optionstopurchasesharesatpricesrangingfrom5,000,000 Credit Line Note facility to fund research and development of its Aversa product[31]. - Research and development costs are expensed as incurred, with no specific figures provided in the documents[55]. Operational 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[183]. - The company faces significant challenges in achieving market acceptance for its products post-FDA approval, which could adversely affect its operating results and financial condition[184]. - The drug delivery industry is rapidly evolving, and the company's future success depends on its ability to keep pace with technological advancements and changing customer requirements[185]. - If FDA approval is obtained, the company anticipates facing strong competition from well-established firms with better resources and existing relationships within the healthcare system[186]. - The FDA regulatory process may be more time-consuming and costly than anticipated, with no guarantee of approval for the lead product[189]. - There is a risk that the company may not be able to launch any products even after receiving FDA marketing approval[189]. Stock and Options - The weighted average shares of common stock outstanding increased to 9,159,869 for the three months ended April 30, 2024, from 7,833,150 in the same period of 2023[12]. - The company issued 390,000 options to purchase shares at prices ranging from 2.37 to 2.61pershareduringthethreemonthsendedApril30,2024[91].−AsofApril30,2024,thereare1,264,835optionsoutstandingwithanaverageexercisepriceof2.61 per share during the three months ended April 30, 2024[91]. - As of April 30, 2024, there are 1,264,835 options outstanding with an average exercise price of 2.63[93]. - The company has reserved a total of 1,400,000 shares for its Employee Stock Option Plan, pending stockholder approval[90]. - The company has reserved a total of 1,400,000 shares under the 2021 Employee Stock Option Plan as of March 20, 2024[123]. Miscellaneous - The company recorded bad debt expenses of 1,200forthethreemonthsendedApril30,2024,comparedto1,200 for the three months ended April 30, 2024, compared to 0 for the same period in 2023[44]. - The company recorded a reserve for bad debts of 118,675relatedtoaclaimfromSorrentoTherapeutics,withproceedsof118,675 related to a claim from Sorrento Therapeutics, with proceeds of 106,528 received[106]. - The company has established additional monitoring controls over financial statements and improved internal controls for detailed accounting review of revenue items and accounts receivable[172]. - The company has not generated any revenue from 4P Therapeutics' products under development since the acquisition, continuing only contract research and development services[119]. - The company has entered into three-year employment agreements with key executives, with salaries reduced to 150,000fortheCEOandPresident,and150,000 for the CEO and President, and 110,000 for the CFO as of July 31, 2022[99][100]. - The company completed the feasibility Workplan for the AVERSA product in February 2024, marking a significant milestone in its development[102].