Braxia Scientific Corp. (CSE: BRAX) (OTC Pink: BRAXF) recently informed its investors that it will not be able to file its audited annual consolidated financial statements for the fiscal year ending March 31, 2024, by the deadline of July 31, 2024. This delay also extends to the related management’s discussion and analysis, as well as the CEO and CFO certificates for the same period.
The primary reason for this delay is the departure of Braxia’s Chief Financial Officer and other senior management members. In November 2023, Stephen Brooks stepped down as CFO, and Olga Cwiek resigned from the board. These departures left significant gaps in the company’s leadership. To address this, Peter Rizakos, the company’s general counsel, has temporarily taken over both roles.
Braxia plans to report its earnings on or before September 15, 2024. The company last reported earnings in March, when Green Market Report highlighted Braxia’s financial struggles. At the end of 2023, Braxia had cash and cash equivalents of just $0.128 million and a working capital deficit of $1.81 million. Notably, those earnings were also unaudited.
In response to its financial challenges, Braxia has significantly reduced its staff, with remaining members agreeing to defer their salaries to help the company navigate through this difficult period. The company cautioned that without securing additional funding in the very short term, it would need to implement further cost reductions, restructure, potentially scale back clinic locations, and seek concessions from creditors.
Additionally, Braxia has applied to the Ontario Securities Commission for a management cease trade order under National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults. If granted, this order would prohibit the Chief Executive Officer and Chief Financial Officer from trading in the company’s securities until the required filings and all continuous disclosure requirements are met and the order is revoked.
The company’s stock currently trades for less than a penny and hasn’t reached one cent in almost a year, reflecting the ongoing financial difficulties and uncertainty surrounding Braxia Scientific Corp.