- Field Trip Health Ltd. reported its second fiscal quarter results and six months ended September 30, 2020.
- The company reported cash and cash equivalents of $14,042,025
Field Trip Health Ltd. (FTRP) (OTCBB: FTRPF) (“Field Trip”), a leader in the development and delivery of psychedelic therapies, reported its second fiscal quarter results for the three and six months ended September 30, 2020. All results are reported under International Financial Reporting Standards (“IFRS”) and in Canadian dollars, unless otherwise specified.
Key Highlights and Recent Developments
During fiscal Q2 of 2021, Field Trip completed brokered and non-brokered private placements of an aggregate of 6,333,656 Class A shares in the capital of Field Trip, at a price of $2.00 per Field Trip Share, for aggregate gross proceeds of $12,667,312 (the “Financing”). Funds for these private placements were received in two tranches.
As at September 30, 2020, Field Trip reported cash and cash equivalents of $14,042,025 which included $11,033448 gross proceeds from the first tranche of financing and $1,638,670 in other receivables, which primarily related to the second tranche funds from the Financing held in escrow and released in October.
On October 1, 2020, Field Trip completed its previously announced going public transaction via a reverse takeover and began trading on the Canadian Securities Exchange (the “CSE”) under the stock symbol “FTRP”, as well as the OTCBB under the symbol “FTRPF”.
With its strong cash position and recent listing, Field Trip is well-positioned to execute on its corporate strategy of building an integrated psychedelics company through its Field Trip Discovery and Field Trip Health Divisions. Field Trip Discovery’s focus includes: (i) continued development of FT-104, its first drug candidate, which is a novel synthetic psychedelic molecule; and (ii) advanced research and cultivation on psilocybin producing fungi at its research facility (the “Jamaica Facility”) at The University of West Indies (Mona) in Jamaica (“UWI”). Field Trip Health’s focus is on: (i) building out the clinical infrastructure needed to deliver psychedelic therapies at scale, with current and announced locations in Toronto, New York, Los Angeles, Chicago, Amsterdam, Atlanta, GA and Houston, TX; and (ii) developing digital tools to enhance and optimize the therapeutic experience in its Field Trip Health Centers and beyond, including Trip, its mobile application supporting consciousness expansion and Portal, its tools to support people participating in psychedelic therapies at Field Trip Health centers.
FT-104 is a next-generation, synthetic psychedelic molecule whose design is, in part, based on classical serotonin 2A psychedelics. Patents are pending on FT-104’s structure, formulation and use in treating a variety of central nervous system disorders. Preliminary results for FT-104 demonstrate that FT-104 is similar in potency to psilocybin, but may provide a significantly shorter duration of psychedelic experience relative to psilocybin (in the range of two to four hours, which is approximately half the duration of psilocybin), making it a more convenient and potentially preferable option for psychedelic therapy. FT-104 is concurrently undergoing optimization and cGMP scale-up, as well as pre-clinical evaluation, both of which are expected to be completed by June 2021. Field Trip anticipates that FT-104 will enter into Phase 1, clinical trials in the second half of calendar year 2021.
Psilocybin-producing Fungi Research and Cultivation
Since January 2020, Field Trip has successfully cultivated 24 varieties (from 13 different species) of psilocybin-producing fungi and truffles in a temporary facility at UWI’s Mona Campus, and in October 2020, Field Trip substantially completed construction of a 2,072 sq. ft. custom-built research and cultivation facility situated on UWI’s Mona campus. The purpose of the Jamaica Facility is to optimize the cultivation techniques and operating procedures for psilocybin-producing fungi and develop the analytical tools and techniques to ensure the safe use of domesticated species in psychedelic therapy in legal jurisdictions (states or countries) as markets for psilocybin-producing fungi continue to emerge. Field Trip anticipates utilizing such techniques and operating procedures at Field Trip Health’s Amsterdam location, as well expected operations in the State of Oregon, following the passage of Measure 109, which will effectively create the first legal market for psilocybin therapies in North America.
In addition, Field Trip will seek to identify and quantify total tryptamine content, including psilocybin and other tryptamine analogues that may play a role in the psychedelic experience, and use this knowledge to optimize production of reproducible and well-characterized psychedelic botanical medicines. Further, any new substances identified during these efforts, may lead to promising new candidates for drug development.
Field Trip Health Centers
Field Trip Health centers are primarily dedicated to the treatment of depression and other mental health conditions using proprietary protocols and settings within a framework of ketamine-assisted therapies but will offer therapies using other psychedelic molecules where and when permitted, including in The Netherlands and the State of Oregon.
During the second fiscal quarter, following the successful opening of its Toronto location in March 2020, Field Trip opened Field Trip Health centers in the United States with locations in New York and Los Angeles. In October 2020, Field Trip completed construction at its Chicago location and expects to begin providing therapies to people in December.
Field Trip also announced that it has entered into a lease to build a Field Trip Health center in Amsterdam, Netherlands, which will provide programs utilizing truffles containing psilocybin, which are legal in The Netherlands. Field Trip has also entered into two additional leases in Atlanta, GA and Houston, TX, respectively bringing the total number of Field Trip Health centers to a total of seven, ahead of schedule. The Field Trip Health center in Atlanta, GA will be a 5,189 sq. ft. facility located at Building 200, 750 Glenwood Avenue and is a part of the redevelopment of GlenCastle, which is Atlanta’s historic city stockade, stables and farm, that is being restored and repurposed into Atlanta’s most unique and creative office campus. The Houston center is a 4,600 sq. ft. facility located at Suite 4310 Westheimer Road, Suite 220 in Houston’s River Oaks neighborhood and will offer seven treatment rooms and a large group therapy room.
Digital Teletherapy Tools: Trip and Portal
During the second fiscal quarter, Field Trip also launched the Trip, a mobile app that provides users with a framework and tools to make the most of self-directed consciousness-expanding activities such as meditation and breathwork. Trip was released to users on Apple and Android platforms and has over 3,600 active users.
Field Trip also launched Portal, a proprietary digital tool designed to complement its in-person therapeutic experience. Portal provides users with content, information, meditations, and synchronous and asynchronous communication tools for people in its psychedelic therapies and programs.
Effects of COVID-19 Pandemic on Operations
Overall, Field Trip was not significantly affected by the COVID-19 pandemic. Although restrictions delayed construction on the New York and Los Angeles Field Trip Health centers, the delays were not significant and operations in its existing and planned Field Trip Health centers continue in earnest. As the COVID-19 pandemic has resulted in an estimated 300% increase in the incidence of depression in the US1, Field Trip anticipates that it will see an increase in expected long-term demand for its depression-related psychedelic therapies, particularly as case counts start to diminish in the future. However, Field Trip anticipates that financial results and operations for the forthcoming fiscal quarters may be negatively impacted by the COVID-19 pandemic as restrictions limit people’s ability to seek non-essential health services.
Financial Highlights
For the second fiscal quarter, Field Trip reported patient services revenues of $94,532 from its Toronto and New York Field Trip Health centers, which began continuous operations in June and August, respectively.
Net loss for the second fiscal quarter of $3,932,444 was primarily due to general and administration expenses of $2,182,144, research and development expenses of $745,989, sales & marketing expenses of $268,475, patient services expenses of $232,114, occupancy costs of $111,877 and realized foreign exchange loss of $196,288. Net loss for the second fiscal quarter of 2020 of $514,643 was primarily due to general and administration expenses of $411,686, occupancy costs of $59,342 and sales and marketing expenses of $43,582.
For the six months ended September 30, 2020, the Company reported patient services revenues of $118,131 from our Toronto and New York clinics. Net loss of $6,891,348 was primarily due to general and administration expenses of $3,536,064, research and development expenses of $1,480,991, sales & marketing expenses of $420,307, patient services expenses of $289,089, occupancy costs of $175,660 and realized foreign exchange loss of $591,010. Net loss for the period from April 2 (date of incorporation) to September 30, 2019 of $681,418 was primarily due to general and administration expenses of $564,331, occupancy costs of $73,472 and sales and marketing expenses of $43,582.
Selected Consolidated Financial Information
The following table sets forth selected financial information derived from the Company’s unaudited condensed interim financial statements for the three and six months ended September 30, 2020 and periods ended September 30, 2019, prepared in accordance with IAS 34 in a manner consistent with the Company’s annual audited financial statements. The following information should be read in conjunction with the financial statements and management’s discussion and analysis, which are available on the Company’s website at www.fieldtriphealth.com and under the Company’s SEDAR profile at www.sedar.com.
| (unaudited) | 3 months ended
September 30, 2020 | | 3 months ended
September 30, 2019 | | 6 months ended
September 30, 2020 | | Period from April 2,
2019 (Date of
Incorporation) to
September 30, 2019 | |
| | $ | | $ | | $ | | $ | |
| Revenue | 94,532 | | – | | 118,131 | | – | |
| Operating Expenses | | | | | | | | |
| General and administration | 2,182,144 | | 411,686 | | 3,536,064 | | 564,331 | |
| Occupancy costs | 111,877 | | 59,342 | | 175,660 | | 73,472 | |
| Sales and marketing | 268,475 | | 43,582 | | 420,307 | | 43,582 | |
| Research and development | 745,989 | | – | | 1,480,991 | | – | |
| Depreciation and amortization | 269,578 | | 33 | | 479,338 | | 33 | |
| Patient services | 232,114 | | – | | 289,089 | | – | |
| | 3,810,177 | | 514,643 | | 6,381,449 | | 681,418 | |
| Other Income (Expenses) | | | | | | | | |
| Finance expense | (58,373) | | – | | (93,357) | | – | |
| Other expense | (158,426) | | – | | (534,673) | | – | |
| Net Loss | (3,932,444) | | (514,643) | | (6,891,348) | | (681,418) | |
| | | | | |
| Net Loss per Share – Basic and Diluted | (0.16) | | (0.08) | | (0.28) | | (0.11) | |
| | | | | | | | | |
| Cash (including Restricted Cash) | 14,042,025 | | 1,057,334 | | 14,042,025 | | 1,057,334 | |
| Other Receivables | 1,984,044 | | 7,297 | | 1,984,044 | | 7,297 | |
| Total Assets | 22,468,694 | | 1,175,561 | | 22,468,694 | | 1,175,561 | |
| Total Non-Current Financial Liabilities | 2,976,316 | | – | | 2,976,316 | | – | |
| Distributions | – | | 13,596 | | – | | 13,596 | |
Conference Call
The Company will conduct a conference call and webcast to review its results the following day, Tuesday, December 1, 2020 at 8:00 am ET. To access the call, please dial 1-877-407-9716 or 1-201-493-6779 and provide conference ID 13713475. A live webcast of the conference call can be accessed via the Events and Presentations section of the Field Trip Health Investor Relations website or via the following link: http://public.viavid.com/index.php?id=142525.
For those unable to attend the live call, a telephonic replay will be available until December 15, 2020. To access the replay of the call dial 1-844-512-2921 or 1-412-317-6671 and provide conference ID 13713475. An archived copy of the webcast will be available on the Events and Presentations section of the Field Trip Health Investor Relations website after the conclusion of the call.
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1Ettman CK, Abdalla SM, Cohen GH, Sampson L, Vivier PM, Galea S. Prevalence of Depression Symptoms in US Adults Before and During the COVID-19 Pandemic. JAMA Network Open. 2020;3(9):e2019686. doi:10.1001/jamanetworkopen.2020.19686
About Field Trip Health Ltd.
Field Trip is the global leader in the development and delivery of psychedelic therapies. With our Field Trip Discovery division leading the development of the next generation of psychedelic molecules and conducting advanced research on plant-based psychedelics including psilocybin-producing fungi and our Field Trip Health division building centers for psychedelic therapies opening across North America and Europe along with the digital and technological tools that will enable massive scale we help people, from those in treatment to those seeking accelerated personal growth, with a simple, evidence-based way to heal and heighten engagement with the world.
Follow us on Twitter and Instagram: @fieldtriphealth
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For further information, contact Ronan Levy, Executive Chairman, and a Director at Field Trip, at 1 (833) 833-1967.