Nutriband (US:NTRB)2023-12-13 02:05Revenue Performance - For the three months ended October 31, 2023, revenue was $427,841, a decrease of 30.7% compared to $618,003 for the same period in 2022[11]. - For the nine months ended October 31, 2023, revenue was $1,560,701, slightly up by 0.6% from $1,552,074 in the prior year[11]. - Total revenue for the nine months ended October 31, 2023, was $1,560,701, compared to $1,552,074 for the same period in 2022, representing a growth of 0.1%[48]. - Revenue from the sale of goods was $1,395,667 for the nine months ended October 31, 2023, an increase from $1,325,127 in the prior year, while service revenues decreased to $165,034 from $226,947[48]. - For the three months ended October 31, 2023, the company generated revenue of $427,841, a decrease of 30.7% from $618,003 in the same period of 2022[143]. - For the nine months ended October 31, 2023, the company generated revenue of $1,560,701, a slight increase from $1,552,074 in the same period of 2022[147]. Expenses and Losses - Total costs and expenses for the three months ended October 31, 2023, were $2,151,352, an increase of 27.3% from $1,689,522 in the same period of 2022[11]. - The net loss for the three months ended October 31, 2023, was $1,759,946, compared to a net loss of $1,075,485 for the same period in 2022, representing an increase of 63.7%[11]. - For the nine months ended October 31, 2023, the company reported a net loss of $3,604,348, compared to a net loss of $2,804,149 for the same period in 2022, representing an increase in losses of approximately 28.5%[17]. - The company incurred a loss from operations of $3,565,577 for the nine months ended October 31, 2023, highlighting ongoing operational challenges[34]. - Selling, general and administrative expenses for the nine months ended October 31, 2023, were $2,849,399, an increase from $2,726,256 in the same period of 2022[148]. - Research and development expenses for the three months ended October 31, 2023, were $551,503, up 89.8% from $290,718 in the same period of 2022[11]. - Research and development expenses for the nine months ended October 31, 2023, increased significantly to $1,397,055 from $686,401 in the previous year, marking a 103.5% increase[97]. Cash and Assets - Cash and cash equivalents decreased to $1,265,323 as of October 31, 2023, from $1,985,440 as of January 31, 2023, a decline of 36.2%[10]. - Total assets as of October 31, 2023, were $8,523,076, down 10.0% from $9,456,377 as of January 31, 2023[10]. - The company reported a working capital of $1,281,963 as of October 31, 2023, indicating a need for careful cash management moving forward[34]. - As of October 31, 2023, total inventory was valued at $174,641, down from $229,335 as of January 31, 2023, indicating a reduction of approximately 23.8%[50]. - Net property and equipment as of October 31, 2023, was $766,839, a decrease from $897,735 as of January 31, 2023, showing a decline of approximately 14.5%[69]. - As of October 31, 2023, net intangible assets amounted to $695,568, down from $780,430 as of January 31, 2023, with accumulated amortization increasing from $351,070 to $435,932[76]. Liabilities and Debt - Total liabilities increased significantly to $2,811,738 as of October 31, 2023, compared to $883,387 as of January 31, 2023[10]. - Interest expenses for the nine months ended October 31, 2023, totaled $52,601, compared to $12,505 for the same period in 2022, indicating a significant increase[74]. - The company entered into a three-year credit line facility for $5,000,000 on July 13, 2023, increasing from a previous facility of $2,000,000[152]. - The company recorded interest expense of $42,012 for the nine months ended October 31, 2023, related to the Credit Line Note with TII Jet Services LDA[72]. Legal and Regulatory Matters - The Company is facing a legal complaint seeking damages exceeding $500,000 due to the termination of an engagement letter for a public offering of common stock[115]. - The Company has counterclaimed for damages of $1,000,000 on multiple counts, including intentional interference with prospective economic advantage and breach of contract[117]. - The Company believes that any potential loss from the ongoing legal proceedings will not materially affect its consolidated financial position or operations[120]. - The Company has not accrued any amount for possible loss as of October 31, 2023[120]. - The company has identified material weaknesses in its internal controls, including a lack of qualified accounting personnel and excessive reliance on third-party consultants[178]. - The company has added qualified accounting personnel to reduce reliance on third-party consultants and has established additional monitoring controls over financial statements[178]. Future Outlook and Development - Management believes that sufficient funds will be generated from operations to support the company for at least one year from the date of the financial statements, indicating a positive outlook despite current losses[35]. - The company expects to continue incurring substantial losses and negative cash flow for the foreseeable future due to ongoing product development and clinical trials[193]. - The Company estimates it will require approximately $13 million for research and development of its abuse deterrent fentanyl transdermal system, including clinical trials[134]. - The company is currently facing a lawsuit claiming damages exceeding $500,000 related to the termination of an engagement letter for a public offering of its common stock[186]. - The company has not generated any revenue from its products under development since the acquisition of 4P Therapeutics, which previously generated minor gross margins[132]. Stock and Equity - The weighted average shares of common stock outstanding for the three months ended October 31, 2023, were 7,833,150, compared to 7,803,264 for the same period in 2022[11]. - As of October 31, 2023, the total outstanding stock options were 874,835, with an average exercise price of $3.23 and an intrinsic value of $86,840[95]. - The company has reserved 408,333 shares for its 2021 Employee Stock Option Plan, with additional shares reserved in subsequent years[137]. - The company recorded a non-cash compensation of $242,840 for warrants issued during the nine months ended October 31, 2023[86]. - During the nine months ended October 31, 2023, 404,500 options were issued to executive officers and employees at prices ranging from $1.93 to $3.975 per share, with a total fair value of $499,856[92]. Compliance and Reporting - The company has filed various certifications including Section 302 and Section 906 by the CEO and CFO, ensuring compliance with regulatory requirements[201][202]. - The report includes Inline XBRL documents for detailed financial data presentation, enhancing transparency and accessibility of financial information[200]. - The company is committed to maintaining accurate financial reporting through the certifications provided by its principal executive and financial officers[202].