Nutriband (NTRB) - 2026 Q1 - Quarterly Report

Part I: Financial Information Financial Statements The unaudited condensed consolidated financial statements for Q1 2025 reflect a net loss, increased revenue, and decreased assets and cash, indicating continued reliance on financing Condensed Consolidated Balance Sheets As of April 30, 2025, total assets decreased to $6.15 million from $7.47 million, primarily due to reduced cash, while liabilities remained stable and equity decreased Condensed Consolidated Balance Sheet Highlights (in USD) | Account | April 30, 2025 (Unaudited) | January 31, 2025 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $2,964,097 | $4,311,719 | | Total Current Assets | $3,429,647 | $4,794,265 | | Goodwill | $1,719,535 | $1,719,535 | | Total Assets | $6,152,181 | $7,469,955 | | Liabilities & Equity | | | | Total Current Liabilities | $925,051 | $982,845 | | Total Liabilities | $1,048,795 | $1,041,050 | | Total Stockholders' Equity | $5,103,386 | $6,428,905 | Condensed Consolidated Statements of Operations For the three months ended April 30, 2025, revenue increased by 63% to $667,432, with the net loss improving to $1.39 million due to lower operating expenses Consolidated Statements of Operations (in USD) | Metric | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | Revenue | $667,432 | $408,532 | | Cost of revenues | $415,451 | $243,746 | | Research and development | $683,426 | $974,535 | | Selling, general and administrative | $982,052 | $1,079,728 | | Loss from operations | $(1,413,497) | $(1,889,477) | | Net loss | $(1,388,869) | $(1,898,077) | | Net loss per share (basic and diluted) | $(0.12) | $(0.21) | Condensed Consolidated Statements of Cash Flows For the three months ended April 30, 2025, net cash used in operating activities increased, resulting in a $1.35 million net decrease in cash, ending the period with $2.96 million Consolidated Statements of Cash Flows (in USD) | Cash Flow Activity | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | Net Cash Used In Operating Activities | $(1,336,972) | $(833,926) | | Net Cash Used in Investing Activities | $(5,324) | $(6,195) | | Net Cash Provided by Financing Activities | $(5,326) | $8,694,919 | | Net change in cash | $(1,347,622) | $7,854,798 | | Cash and cash equivalents - End of period | $2,964,097 | $8,347,740 | Notes to Unaudited Condensed Consolidated Financial Statements The notes detail the company's business structure, accounting policies, and financial components, covering transdermal products, going concern, revenue recognition, and legal contingencies - The company's primary business is the development of transdermal pharmaceutical products, focusing on its Aversa abuse-deterrent technology, with revenue generated through Pocono Pharmaceuticals and 4P Therapeutics[21][23][107] - Management believes recent equity financing of $8.4 million in April 2024 and a $5 million related-party credit line alleviate substantial doubt about the company's ability to continue as a going concern, despite historical operating losses[28][29] - All revenue for the three months ended April 30, 2025 and 2024, was generated from the sale of goods within the United States[39] - The company is a defendant in a lawsuit with Joseph Gunnar, LLC, and Lucosky Brookman LLP, who are seeking over $500,000 in damages, with the company denying allegations and filing counterclaims; a $100,000 settlement offer from plaintiffs has not been responded to[99][100][101] - The company signed an amended agreement with Kindeva Drug Delivery for Aversa Fentanyl, reducing labor rates in exchange for a $3.0 million milestone payment upon FDA approval[96] Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes Q1 2025 revenue growth to increased demand, with a narrowed net loss due to reduced expenses, and believes recent financing alleviates going concern doubts Results of Operations Comparison (in USD) | Metric | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | Revenue | $667,432 | $408,532 | | Gross Profit | $251,981 | $164,786 | | R&D Expenses | $683,426 | $974,535 | | SG&A Expenses | $982,052 | $1,079,728 | | Net Loss | $(1,388,869) | $(1,898,077) | - Revenue increase was driven by the Pocono Pharmaceuticals segment due to new equipment meeting increased demand, while the 4P Therapeutics segment generated no revenue[117] - The decrease in R&D expenses is primarily due to a reduction in labor costs for the Aversa Fentanyl product development[119] - The company's cash and cash equivalents decreased from $4.31 million at Jan 31, 2025, to $2.96 million at April 30, 2025, with working capital also decreasing from $3.81 million to $2.50 million[121] - In April 2024, the company completed an $8.4 million equity financing with European investors to fund operations and development[111][116] Quantitative and Qualitative Disclosures about Market Risk This section is not applicable for the company at the time of filing - The company has indicated that this item is not applicable[152] Controls and Procedures Management concluded that disclosure controls and procedures were not effective due to material weaknesses, but remediation efforts are underway - The CEO and CFO concluded that disclosure controls and procedures are not effective[154] - Material weaknesses identified include the absence of segregation of duties and lack of qualified accounting personnel[155] - Remediation efforts include adding qualified accounting personnel to reduce reliance on third-party consultants and improving internal controls for transaction reviews[155] Part II: Other Information Legal Proceedings The company is a defendant in a lawsuit seeking over $500,000 in damages, denies all allegations, has filed counterclaims, and has not responded to a settlement offer - The company is a defendant in a lawsuit filed by Joseph Gunnar, LLC and Lucosky Brookman LLP in New York[160] - Allegations include breach of contract, fraudulent activities, and tortious interference, with Gunnar seeking over $500,000 in damages and LB seeking reimbursement of legal fees[160] - Nutriband denies all allegations and has filed counterclaims for intentional interference and breach of fiduciary duty, seeking $1,000,000 for each claim[161] - The plaintiffs proposed a settlement offer of $100,000 in early 2024, to which the company has not responded[162] Risk Factors The company highlights key risks including economic uncertainty, its pre-market development stage, stock price volatility, potential dilution, and the need to keep pace with technological change - The company faces risks from economic uncertainty and U.S. administration policies that could affect costs and FDA approval timelines[164] - As a development-stage company with no marketable product in the U.S., there is no assurance of achieving profitability, and the company has a history of substantial losses[165][166] - The company's stock price has been and is expected to remain volatile, and future equity offerings may cause significant dilution to existing stockholders[169][170] - The drug delivery industry is subject to rapid technological change, and a failure to keep pace could render the company's products obsolete[171] Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files Filed Exhibits | Exhibit Number | Description | | :--- | :--- | | 31.1 | Section 302 Certification of Chief Executive Officer | | 31.2 | Section 302 Certification of Chief Financial Officer | | 32.1 | Section 906 Certification of Chief Executive Officer | | 32.2 | Section 906 Certification of Chief Financial Officer | | 101 | Inline XBRL Documents (Instance, Schema, Calculation, etc.) |