Numinus Wellness Inc. Reports Q1 2023 Results

“During the first quarter of fiscal 2023, we successfully implemented several initiatives to increase access to psychedelic and ketamine-assisted therapy. We believe expanded access will not only serve to elevate Numinus’ leadership position within the psychedelic industry, but strongly supports the overall advancement of psychedelic medicine for the treatment of mental health. With our strengthened network of 12 wellness clinics and research operations firmly in place following our acquisition of Novamind, we leveraged our robust integrated mental health infrastructure to enhance our service offerings, driving a strong start to 2023.”

Payton Nyquvest, Founder and CEO

• Revenues grew 618% year-over-year to $5.7 million in Q1 2023. Sequentially, revenues grew 35.7% from the prior quarter.
• Gross margin grew to 41.9% during Q1 2023 compared to 6.5% in Q1 2022. The improvement in gross margin is due mostly to the completion of the Novamind acquisition between periods and the offering of higher-margin services. Sequentially, gross margin grew 1,040 basis points from 31.5% in Q4 2022.
• Gross profit was $2.4 million in Q1 2023, a significant increase compared to gross profit of $50,965 in Q1 2022, and an 80% increase compared to $1.3 million in the prior quarter.
• G&A expenses declined 8.6% from the prior quarter as a result of ongoing cost containment initiatives.
• Cash balance of $26.4 million as of November 30, 2022.

• Q1 2023 revenue of $5.0 million, a 35.3% sequential increase from $3.7 million in Q4 2022, and a 669.5% increase compared to $647,915 million during the same period last year. The increase in clinic network revenues is primarily due to acquisitions completed during the past year, growth in client appointments and the expansion of clinic services.
• During Q1 2023, Numinus completed more than 19,774 client appointments – including one-on-one and group therapy sessions, neurology-related appointments, paid group programs, Ketamine-assisted psychotherapy (KAT), Transcranial Magnetic Stimulation (TMS) and Ketamine/Spravato medicine appointments, representing a 13.7% increase in clinic appointments compared to more than 17,000 appointments in Q4 2022.
  • 9.7% of appointments during Q1 2023 were made by new clients.
  • 3.7% of appointments during Q1 2023 were KAT or Ketamine/Spravato medicine related.
  • 1,863 TMS appointments were made during Q1 2023.
• At the end of Q1 2023, Numinus had 138 practitioners providing client treatments through its wellness clinics and virtual services, a 13.1% increase from the beginning of the quarter.
• On September 13, 2022, Numinus launched a new financing option for clinic patients in Canada. This new payment option will increase the accessibility of its traditional therapy and Ketamine-assisted therapy to a wider client population. Offered through iFinance, a third-party financing partner, Numinus’ new financing option will allow Canadian clients to apply for financing with interest rates based on the applicant’s credit history. Once approved, Numinus will provide the requested therapy services and collect full payment from iFinance following the completion of the treatment plan.
• On September 19, 2022, Numinus expanded its Ketamine-assisted Therapy offering to its Toronto location (The Neurology Centre of Toronto), to provide KAT services to patients with neurologic conditions.
• On October 28, 2022, Numinus announced the launch of its Ketamine for Chronic and Serious Medical Illness Program. This new program will be introduced first in Numinus’ clinics in Utah, British Columbia and Quebec. The Company intends to expand the program to other clinics in later months.

• Revenues from Cedar Clinical Research (“CCR”) during Q1 2023 were $0.7 million, a 38.8% increase compared to prior quarter. CCR revenue streams are generated through the management of third-party clinical trials that use CCR’s two clinical research sites.
  • Q1 2023 gross margin at CCR was 70.9%, an increase of 590 basis points compared to prior quarter.
• On October 5, 2022, the Company announced that Numinus Bioscience has developed a psilocybin-containing tea bag for use in clinical research and, if appropriate regulatory approvals are granted, eventual treatment of clients in psychedelic-assisted therapy.

		For the quarter ended November 30:
	2022	2021	% change
Numinus Clinic Network revenues	4,985,496	647,915	669.5 %
Numinus Clinical Research revenues	682,554	141,702	381.7 %
Total Revenue	$5,668,050	$789,617	617.8 %
Cost of revenue	(3,292,538)	(738,652)	345.7 %
Gross Profit (Loss)	$2,375,512	$50,965	n.m.
Gross profit margin	41.9 %	6.5 %	n.m.
General and administrative expenses	7,297,362	3,736,890	95.3 %
Share-based compensation	216,735	400,568	-45.9 %
Sales and marketing expenses	724,413	760,519	-4.7 %
Depreciation & Amortization	414,587	51,829	699.9 %
Research and development expenses	424,981	330,626	28.5 %
Transaction costs	13,573	45,092	-69.9 %
Loss before other items	$(6,715,839)	$(5,274,559)	27.3 %
Other items	(152,997)	(48,115)	.  n.m.
Revaluation of contingent liability	571,728	(31,415)	n.m.
Net Loss	$(6,297,408)	$(5,354,089)	17.6 %
Other comprehensive income	197,935	—	n.m.
Comprehensive Loss	$(6,099,473)	$(5,354,089)	13.9 %
Loss per share, basic and diluted	$(0.02)	$(0.03)	-24.3 %
Average number of shares outstanding, basic and diluted	256,237,380	164,940,392	55.4 %

• 1 (888) 330-3632 (Toll-free North America)
• 1 (646) 960-0837 (International)
• Please ask to participate in Numinus’ Q1 2023 Results Call. To avoid any delays in joining the call, please dial in at least five minutes prior to the call start time. If prompted, please provide conference passcode 3547386.