Field Trip Health & Wellness Ltd. (TSXV: FTHW | OTCQB: FTHWF), a global leader in the delivery of psychedelic therapies, provided a business update today and reported its fiscal third quarter 2023 results for the three and nine month periods ended December 31, 2022. All results are reported in accordance with International Financial Reporting Standards and in Canadian dollars, unless otherwise specified.
In December 2022, the Company formed an independent committee (the “IC”) of the board of directors of the Company (the “Board”) to assess strategic options for the Company. The formation of the IC was in response to, among other things, current unfavourable capital market conditions, which have presented a challenge for the Company in seeking additional sources of financing, ongoing fixed costs associated with the Company’s brick and mortar locations and the pausing of its hybrid in-clinic/virtual Freedom Program due to regulatory changes potentially affecting the ability of the Company to operate the program. In January 2023, the IC engaged a third-party consultant to perform a review of operations and investigate alternate courses of actions including, but not limited to, further cost reductions, restructuring, the potential sublease or closure of clinic locations and settlement of lease obligations (the “Strategic Review”). The Company does not intend to comment further on the Strategic Review, unless and until the Board has approved a specific course of action or otherwise determined that further disclosure is appropriate or required by law.
Selected Financial Information
The following table sets forth selected financial information derived from the Company’s unaudited combined carve-out financial statements for the three and nine months ended December 31, 2022 and December 31, 2021, prepared in accordance with International Accounting Standards 34 “Interim Financial Reporting” in a manner consistent with the Company’s annual audited combined carve-out 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.
| | Three Months
Ended | Three Months
Ended | Nine Months
Ended | Nine Months
Ended |
| | December 31,
2022 | December 31,
2021 | December 31,
2022 | December 31,
2021 |
| | $ | $ | $ | $ |
| Revenue | | | | |
| Patient services | 1,620,615 | 1,360,811 | 5,285,723 | 3,136,027 |
| | 1,620,615 | 1,360,811 | 5,285,723 | 3,136,027 |
| Operating Expenses | | | | |
| General and administration | 3,224,433 | 4,509,873 | 14,853,330 | 16,966,006 |
| Occupancy costs | 382,177 | 448,077 | 1,003,727 | 1,361,187 |
| Sales and marketing | 499,576 | 1,079,084 | 1,703,862 | 3,458,645 |
| Research and development | 83,803 | 75,492 | 264,163 | 321,038 |
| Depreciation and amortization | 1,136,464 | 1,014,018 | 3,219,926 | 2,478,213 |
| Patient services | 2,857,192 | 2,546,763 | 8,370,573 | 6,458,901 |
| Impairment of right-of-use assets and property, plant and equipment | – | – | 5,887,401 | – |
| | 8,183,645 | 9,673,307 | 35,302,982 | 31,043,990 |
| Other Income (Expenses) | | | | |
| Interest income | 84,460 | 6,891 | 101,928 | 20,962 |
| Interest expense | (413,267) | (320,944) | (1,226,729) | (724,053) |
| Other income (expense) | (39,134) | (212,564) | 1,566,384 | (97,398) |
| Net Loss | (6,930,971) | (8,839,113) | (29,575,676) | (28,708,452) |
| | | | | |
| Net Loss per Share – Basic and Diluted | (0.08) | (0.18) | (0.42) | (0.58) |
| | As at | As at | | |
| | December 31,
2022 | March 31,
2022 | | |
| | $ | $ | | |
| | | | | |
| Cash and cash equivalents | 6,718,236 | 1,998,665 | | |
| Restricted cash | 471,512 | 776,551 | | |
| Accounts receivables | 814,095 | 1,053,077 | | |
| Total Assets | 35,365,541 | 37,348,201 | | |
| Total Non-Current Financial Liabilities | 26,606,194 | 26,745,396 | | |
About Field Trip Health & Wellness Ltd.
With a large global community of psychedelic-interested people, proprietary psychedelic therapies that generate transformative results for people in the treatment of mental health conditions and a brand and share of voice that is reaching millions of people, Field Trip is a center of gravity for the psychedelic renaissance.