Numinus Wellness Inc. (TSX: NUMI | OTCQX: NUMIF), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies, today announced its financial results for the three months ended November 30, 2022 (“Q1 2023”).
Payton Nyquvest, Founder and CEO
“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.”
“During the quarter, we developed a whole mushroom psylocibin-containing tea bag, EnfiniTea, which has demonstrated a more consistent dosing and longer shelf stability than other natural psilocybin-mushroom products. Our new clinical trial application for experiential psilocybin-assisted therapy training research will use our EnfiniTea for trial dosing, making this one of the first clinical trials globally to be conducted with whole Psilocybe mushrooms to assess their safety. This will also be one of the first training programs with the option to participate in an experiential trial for practitioners looking to expand their psychedelic-assisted therapy education. In addition, we launched Ketamine-assisted Therapy (KAT) at our Toronto location, introduced a wider assortment of ketamine-assisted therapy options at our Montreal clinics and launched KAT for Chronic and Serious Illness at our Utah clinics. Research continues to support the efficacy of these therapies and we are committed to continuously enhancing our service offerings to make psychedelics available to those in need.”
Commenting on the quarter’s performance, Mr. Nyquvest continued: “We continued to focus on driving margin expansion during Q1 2023, through ongoing cost containment initiatives and a focus on reaching a growing number of clients. Overall, client appointments grew 13.7%, G&A expenses declined 8.5%, and gross profit increased 80% from last quarter to $2.4 million in the first quarter – representing a 41.9% gross margin. We are proud of the growth and margin improvements we’re seeing across our organization, and will continue to identify ways to reach profitability as soon as possible.”
First Quarter Financial Highlights
- 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.
Operational Highlights During and Subsequent to Q1 2023
Numinus Wellness Clinic Network
- 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.
Numinus Clinical Research
- 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.
Q1 2023 Key Performance Metrics
|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
Numinus’ condensed consolidated financial statements for the three months ended November 30, 2022 and related management’s discussion and analysis are available on Numinus’ Investor Relations website at www.investors.numinus.com and under the Company’s profile on SEDAR at www.sedar.com. These documents were prepared in accordance with IFRS.
Conference Call and Webcast Details
Interested parties are invited to participate in the Company’s Q1 2023 results conference call and webcast occurring today, at 5:30 p.m. Eastern time / 2:30 p.m. Pacific time. During the call, Numinus executives will review the Company’s performance and recent initiatives, and answer questions from analysts.
To participate in the live conference call, please use the following dial-in information:
- 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.
A replay of the conference call can also be accessed after 8:30 p.m. Eastern time / 5:30 p.m. Pacific time on January 16, 2023, at 1-800-770-2030 or 1-647-362-9199 (using passcode 3547386). The replay will be available until January 30, 2023.
Numinus Wellness (TSX: NUMI) helps people to heal and be well through the development and delivery of innovative mental health care and access to safe, evidence-based psychedelic-assisted therapies. The Numinus model – including psychedelic production, research and clinic care – is at the forefront of a transformation aimed at healing rather than managing symptoms for depression, anxiety, trauma, pain and substance use. At Numinus, we are leading the integration of psychedelic-assisted therapies into mainstream clinical practice and building the foundation for a healthier society.