Numinus Wellness Inc. Reports Q2 2023 Results

“We are excited about our recently announced training and licensing growth initiatives, which position Numinus as a clear leader in delivering and supporting psychedelic-assisted therapies – and contribute to much needed clinical infrastructure for a sector that is on the verge of significant expansion. As we believe that access to these therapies is pending with regulatory reform, the development of clinical protocols, practitioner training, and insurance payor expertise is becoming increasingly important. Given our expansive and growing capabilities, we are one of the best positioned companies to lead the next stage of psychedelic-assisted therapies by providing the necessary infrastructure to deliver these innovative treatments. With new opportunities in sight, we are investing in our digital and licensing platforms to allow us to further scale our business, while reducing the capital investments traditionally needed with clinic expansion.”

Payton Nyquvest, Founder and CEO

• Revenues grew 581.1% year-over-year to $5.4 million in Q2 2023. Sequentially, revenues declined 5.5% from the prior quarter due mostly to seasonal impacts, including fewer operating days as a result of December holidays and February being a short month. (There were 6.25% fewer operating days during Q2 2023 compared to Q1 2023.)
• Gross margin grew to 39.3% during Q2 2023 compared to 29.1% in Q2 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 declined 260 basis points from 41.9% in Q1 2023, due to there being fewer revenue producing days during the quarter.
• Gross profit was $2.1 million in Q2 2023, a significant increase compared to gross profit of $0.2 million in Q2 2022.
• Cash balance of $19.7 million as of February 28, 2023.

• Revenues grew 600.0% year-over-year to $11.0 million in the first six months of fiscal 2023 compared to the same period last year, due mostly to the acquisition of Novamind.
• Gross margin grew to 40.7% during the first six months of 2023 compared to 17.8% in the same period last year. The improvement in gross margin is due mostly to the completion of the Novamind acquisition between periods and the offering of higher-margin services.
• Gross profit was $4.5 million in the first six months of 2023, a significant increase compared to gross profit of $0.3 million in the same period last year.

• Wellness clinics generated $4.7 million of revenue during Q2 2023, a 596.9% increase compared to $0.7 million during the same period last year and a 9.9% sequential decline from $5.0 million in Q1 2023, mostly due to there being fewer operating days during the quarter.
• During Q2 2023, Numinus completed more than 19,350 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 2.1% decrease in clinic appointments compared to more than 19,774 appointments in Q1 2023, due to there being fewer operating days during the quarter.
  • Adjusted for seasonal impact, the average number of appointments per operating day increased by 4.4% (Q2 2023: 322.5 average appointments per day; Q1 2023: 309.0 average appointments per day)
  • 8.7% of appointments during Q2 2023 were made by new clients.
  • 16.0% of appointments during Q2 2023 were KAT or Ketamine/Spravato medicine related.
  • 6.3% of appointments during Q2 2023 were for TMS services.
• Numinus is in the process of transforming its Practitioner model in Canada, with the aim of attracting a greater number of dedicated full-time practitioners. The Company believes this approach will drive greater engagement and clinic utilization rates but may result in fewer practitioners as each can accept more client appointments.
  • At the end of Q2 2023, Numinus had 133 practitioners (Q1 2023: 138) providing client treatments through its wellness clinics and virtual services, a 3.6% decrease from the end of the previous quarter.

• Revenues from Cedar Clinical Research (“CCR”) during Q2 2023 were $0.6 million, a 9.9% decline 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.
  • CCR managed 16 clinical trials during Q2 2023, which included 152 clinical trial patient appointments.
• On February 1, 2023, Numinus announced that it has received approval from Health Canada for its experiential training study that will test the safety and clinical efficacy of whole Psilocybe cubensis tea for therapeutic use, and enable practitioners to further their understanding of psychedelic-assisted therapy through experiential training.
• On February 17, 2023, Numinus announced that CCR expanded into Phoenix, Arizona, with its third clinical research site. The new site is already accepting clinical trial participants for a third-party study that began mid-March, and was recently awarded a second research study.

• On February 15, 2023, Numinus announced that all resolutions passed at its Annual General and Special Meeting of Shareholders.
• On March 27, 2023, Numinus launched the Numinus Certification Pathway – a collection of psychedelic-assisted therapy (“PAT”) training courses uniquely selected to provide practitioners with complete PAT training, including an experiential component and practicum.
• On April 11, 2023, Numinus announced the launch of its new Numinus Network wellness clinic licensing platform – providing independent practitioners with the opportunity to own and operate a Numinus branded full-service clinic. Numinus Network clinic owners will receive training on all Numinus therapy protocols and administrative and marketing support, among other service offerings.
• On April 11, 2023, Numinus also announced a new partnership with Healing Commercial Real Estate Inc. (“Healing CREI”) – a health care focused real estate investment company with deep market knowledge of the psychedelic sector. Through this agreement, Numinus Network licensees will have the option of leasing a turnkey, fully functioning Numinus Wellness clinic location – complete with leasehold improvements and clinic infrastructure, directly from Healing CREI.
• Numinus is in process of investing in its digital platform, to provide effective technology-enabled practitioner training, client booking, and patient support tools, as a foundation for continued clinic and service expansion. The Company believes that its digital platform may become a key driver of growth as it pursues industry partnerships and expands its psychedelic-assisted therapy practitioner training programs.

		For the quarter ended February 28:
	2023	2022	% change
Numinus Clinic Network revenues	4,739,609	680,138	596.9 %
Numinus Clinical Research revenues	614,932	105,966	480.3 %
Total Revenue	$5,354,541	$786,104	581.1 %
Cost of revenue	(3,247,983)	(557,345)	482.8 %
Gross Profit (Loss)	$2,106,558	$228,759	820.9 %
Gross profit margin	39.3 %	29.1 %	1020 bps
General and administrative expenses	7,521,707	4,725,878	59.2 %
Share-based compensation	513,034	1,629,890	-68.5 %
Sales and marketing expenses	463,640	429,645	7.9 %
Depreciation & Amortization	425,551	128,820	230.3 %
Research and development expenses	275,839	474,514	-41.9 %
Transaction costs	–	19,830	-100.0 %
Loss before other items	$(7,093,213)	$(7,179,818)	-1.2 %
Other items	(199,731)	(172,280)	n.m.
Revaluation of contingent liability	—	(485,504)	n.m.
Income tax (expense) recovery	(38,542)	—	n.m.
Net Loss	$(7,331,486)	$(7,837,602)	-6.9 %
Other comprehensive income	36,834	—	n.m.
Comprehensive Loss	$(7,294,652)	$(7,837,602)	-6.9 %
Loss per share, basic and diluted	$(0.03)	$(0.04)	-26.6 %
Average number of shares outstanding,basic and diluted	260,213,874	205,209,976	26.8 %

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• 1 (646) 960-0837 (International)
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