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Numinus Wellness Inc. Reports Q3 2022 Results

  • Revenues grew 32% year-over-year to $0.74 million for the quarter
  • Clinic network revenues grew 59.5% from the same quarter last year and 7.5% compared to prior quarter
  • Achieved 24.4% gross margin and $180,845 gross profit of during Q3 2022
  • Ended quarter with strong cash position of $41.8 million
  • Completed acquisition of Novamind, positioning Numinus as a leading, integrated mental healthcare company providing psychedelic-assisted therapies

All financial results are reported in Canadian dollars unless otherwise stated.

Numinus Wellness Inc. (TSE:NUMI) (OTCMKTS: NUMIF), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies, today announced its fiscal quarter results for the three and nine months ended May 31, 2022 (“Q3 2022”).  Q3 2022 results do not reflect contributions from the acquisition of Novamind, which completed subsequent to quarter end, on June 10, 2022. 

Our fiscal third quarter was highlighted by the announcement of our acquisition of Novamind, and the activities leading up to the completion of that strategic transaction on June 10, 2022. Now, with 13 wellness clinics across North America, four clinical research sites and a dedicated psychedelics research facility, Numinus is firmly positioned as a leading mental health care company providing psychedelic-assisted therapies. We’re very pleased with how our operations are integrating and with the collaborative efforts we are already seeing across our new expanded team. We look forward to sharing our combined performance with you when we announce our fiscal fourth quarter results – which will be the first quarter demonstrating the power of our larger, cross-border platform.

Payton Nyquvest, Founder and CEO

“Today, including the contributions of Novamind, Numinus is one of the highest revenue-producing mental health care companies providing psychedelic and ketamine-assisted therapies, with more than $12 million of combined proforma annual revenues (based on trailing four quarters). We continue to be excited about the momentum building across our business and our outlook ahead. With significantly strengthened revenue streams, a growing number of client services, and positive regulatory reforms underway, our focus is squarely on reaching profitability as quickly as possible. Our strategy to accelerate Numinus’ path to profitability also includes expanding higher-margin services, increasing business development activities, and proactively managing our operating costs. Our goal is to achieve operational profitability within two years and corporate positive cashflow within three years,” concluded Mr. Nyquvest.

Third Quarter Financial Highlights

  • Revenues grew 31.8% year-over-year to $741,064 million in Q3 2022, due primarily to the acquisitions of Mindspace and the Neurology Centre of Toronto. Sequentially, revenues declined by 5.7% from the prior quarter, due entirely to shifting strategic priorities at Numinus Bioscience – where analytical testing services for third-party corporate clients has ceased due to changing sector dynamics. The elimination of this revenue stream was partially offset by 7.5% revenue growth achieved through Numinus’ clinic network operations.
  • Gross margin grew to 24.4% during Q3 2022, compared to -2.8% in Q3 2021. The improvement in gross margin is due mostly to the completion of acquisitions between periods, and the offering of higher-margin services.
  • Gross profit of $180,845 in Q3 2022, a significant improvement compared to the gross loss of $15,497 in Q3 2021.
  • Loss was $7.0 million for Q3 2022, compared to a loss of $4.8 million in Q3 2021, due in part to corporate development and legal expenses related to the acquisition of Novamind Inc.
  • Cash balance of $41.8 million as of May 31, 2022.

First Nine Months Financial Highlights

  • Revenues during the first nine months of fiscal 2022 grew 126.5% year-over-year to $2.3 million due primarily to the continued post-acquisition growth of Mindspace and the acquisition of NCT.
  • Gross margin during the first nine months of 2022 was 19.9%, compared to -11.1% in the same period last year.
  • Gross profit during the first nine months of 2022 was $460,569, a significant improvement compared to the gross loss of $113,356 in the same period of 2021.
  • Loss was $20.2 million for the first nine months of 2022, compared to a loss of $11.0 million in the first nine months of 2021.

Operational Highlights During and Subsequent to Q3 2022

As a reminder, operational performance for the third quarter and first nine months of fiscal 2022 does not include contributions from the acquisition of Novamind, which completed subsequent to quarter-end, on June 10, 2022.

Numinus Wellness Clinic Network

  • Q3 2022 revenue of $731,064, a 7.5% sequential increase from Q2 2022, and a 59.5% increase compared to $458,316 during the same period last year.
  • During Q3 2022, clients received a total of 5,634 appointments through Numinus clinics (including one-on-one and group therapy sessions, neurology-related appointments, paid group programs and Ketamine-assisted psychotherapy), representing a 5.9% increase in clinic appointments compared to Q2 2022.
  • As of May 31, 2022, Numinus had five wellness clinics and two clinical research sites. As of July 14, 2022, following the acquisition of Novamind, Numinus has 13 wellness clinics offering services to clients (one in Vancouver, one in Toronto, three in Montreal, eight in Utah and two in Arizona). In addition, the Company has four dedicated research clinics where psychedelic studies are being conducted (two in Salt Lake City, one in Vancouver and one in Montreal).
  • Following a review of its growth initiatives and opportunities, Numinus has decided to cancel its previously announced second wellness clinic location in Vancouver, Canada. The acquisition of Novamind has provided additional growth opportunities that the Company expects could provide higher return-on-investment.
  • Subsequent to the quarter, on June 23, 2022, Numinus launched a pilot mental health program for corporate clients: Corporate Ketamine-Assisted Psychotherapy (“Corporate KAP”). This Utah-based program is aimed at helping businesses improve employee mental health by offering ketamine-assisted psychotherapy as a health benefit for eligible employees.

Clinical Trials

  • On March 30, 2022, Numinus announced it began administering MDMA-assisted psychotherapy to clinical trial volunteers for the “multi-site open-label extension study of MDMA-assisted psychotherapy for PTSD (MAPPUSX)” trial sponsored by the Multidisciplinary Association for Psychedelic Studies (MAPS) and organized by MAPS Public Benefit Corporation (MAPS PBC).
  • On May 16, 2022, Numinus announced it received Health Canada Special Access Programme (“SAP”) approval to provide psilocybin-assisted therapy to a patient with treatment-resistant depression. This was Numinus’ first psilocybin-assisted therapy treatment outside of clinical trials; amongst the first to use this regulatory mechanism through Health Canada’s SAP.
  • As part of the Company’s focus on accelerating its timeline to profitability, Numinus has decided to postpone its clinical trials of NBIO-01 and NBIO-03, given the high cost of clinical trials. Once the company can see a clear pathway to regulatory approvals or has achieved profitability, the clinical trials for these drug candidates will commence.

Numinus Research – Laboratory Operations

  • Given sector consolidation, the decreasing corporate client base for psychedelic substance analytical services and limited revenue generating opportunities, Numinus Bioscience intends to focus purely on proprietary research activities for the foreseeable future. The divisions’ analytical testing capabilities remain available for proprietary and on-request projects; however, the company has eliminated its business development activities for these services to reduce expenses in this period of sector dislocation. As this business decision was implemented partway through the quarter, Numinus Bioscience generated revenue of $10,000 during Q3 2022 and is not expected to generate any further revenue from analytical testing services until and unless sector dynamics improve to sustain those business operations.
  • In March 2022, Numinus Bioscience expanded its research capabilities as a result of the addition of a Public Health Agency of Canada for a Containment Level 2 (CL2) pathogens and toxins license, and the approval from Health Canada to add Ayahuasca & San Pedro to its federal license for psychedelic research.
  • On June 22, 2022, Numinus Bioscience filed a patent application to the World Intellectual Property Organization (WIPO), an agency of the United Nations, for a rapid production process for Psilocybe and other fungi species containing psilocybin and other compounds. A provisional patent application for the process was submitted to the United States Patent & Trademark Office (USPTO) on June 24, 2021. With this additional filing, international patent protection would extend to all WIPO member states that have signed the Patent Cooperation Treaty (PCT), including Australia, Germany, Netherlands, and the United Kingdom, where psychedelic research is currently active.

Corporate Updates

  • On June 27, 2022, Numinus introduced its new logo and brand identity, which will unify Numinus’ presence across North America. The rebranding activities will be accomplished in phases and completed by the end of 2022.
  • On April 12, 2022, Numinus announced it made an offer to acquire Novamind – positioning Numinus as a leading, integrated mental healthcare company providing psychedelic-assisted therapies. The transaction was overwhelmingly approved by Numinus and Novamind shareholders at separate shareholder meetings on June 8, 2022. On June 10, 2022, the acquisition of Novamind was completed with Novamind shareholders receiving 0.84 Numinus shares per Novamind share. As a result of the acquisition, Novamind was delisted from the CSE and OTC exchanges.
  • On June 10, 2022, Numinus announced several executive appointments. Michael Tan was promoted to President and Chief Operating Officer, Reid Robison was appointed Chief Clinical Officer, and Paul Thielking has been appointed Chief Science Officer.

Q3 2022 Key Performance Metrics

For the quarter ended May 31:
20222021% change 
     Numinus Bioscience¹ revenue10,000103,760-90.4 %
     Numinus Clinic Networkrevenue731,064458,31659.5 %
Total Revenue$741,064$562,07631.8 %
Cost of revenue(560,219)(577,573)-3.0 %
Gross Profit (Loss)$180,845$(15,497)n.m.
   Gross profit margin24.4 %-2.8 %n.m.
General and administrative expenses(5,269,941)(2,485,805)112.0 %
Share-based compensation(212,321)(610,386)-65.2 %
Sales and marketing expenses(441,723)(967,670)-54.4 %
Depreciation & Amortization(173,219)(76,226)127.2 %
Research and development expenses(506,665)(631,124)-19.7 %
Transaction costs(456,747)(8,369)5,357.6 %
Loss before other items$(7,008,112)$(4,824,424)43.5 %
Other items(142,209)(29,347)384.6 %
Revaluation of contingent liability13,8680100.0 %
Loss and comprehensive loss$(7,008,112)$(4,824,424)45.3 %
Loss per share, basic and diluted$(0.03)$(0.02)34.1 %
Average number of shares outstanding,basic and diluted210,247,839149,026,9718.4 %

1 Numinus Bioscience consists of revenues generated through Numinus’ Laboratory Operations, which ceased analytical testing services to third-party corporate clients during Q3 2022.

Numinus Clinic Network revenues generated through NCT, Mindspace and Numinus Health.

Numinus’ condensed consolidated financial statements for the three and nine months ended May 31, 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 Q3 2022 results conference call and webcast. On the call Numinus executives will review the Company’s performance and recent initiatives, and answer questions from analysts.

Date:Thursday, July 14, 2022
Time:5:30 p.m. (EST)
Dial-In:1 (888) 330-3632 (Toll-free North America), 1 (646) 960-0837 (International)
Code:3547386
Webcast:https://event.on24.com/wcc/r/3825889/3D9B9AD399CFA2D70257C91AC4C8F78A

The webcast will also be archived on the Events and Presentations page of Numinus’ Investor Relations website: https://www.investors.numinus.com/events-and-presentations

To view the original press release in its entirety click here

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