Net loss for Braxia Scientific was $275,000 for the quarter versus last year’s net loss of $2.16 million.
As of Sept. 30, company’s cash and cash equivalents were $701,000 with a working capital deficit of $961,000.
Despite the improvements in revenue, Braxia has essentially come to the end of its runway and is looking for strategic alternatives. The company said that the process will begin immediately and that it will evaluate a broad range of options, including:
- Potential sale of the company.
- Merger or other business combination.
- Sale of all or a portion of the company’s assets.
- Strategic investment or other significant transaction.
Braxia also told investors that it has received strategic inquiries from multiple parties over the past few months.
“Looking ahead, the board has formally initiated a process to explore strategic alternatives and alternative sources of capital or partnerships that may be available to the company following continued challenges in the economic environment and in accessing capital through public markets,” CEO Dr. Roger McIntyre said. “While I remain confident in the continued growth of our clinics, if we are unable to raise additional funding in the short term, we will look at alternate courses of actions including, but not limited to, further cost reductions, restructuring, and the potential scaling back of clinic locations.”
The company has not set a timetable for implementing a plan and won’t update investors again unless it signs a deal. Braxia also warned investors that even if it attempts to make a deal, there are no assurances that one will be struck.
In addition to the dire financial situation, Braxia has seen a number of key team members jumpship.
Olga Cwiek, a member of the board of directors, resigned this week, as did CFO Stephen Brooks.
Peter Rizakos, chief legal officer, was appointed to the board and will also take on the role of chief financial officer.
Even though the company is struggling financially, the clinics have been slowly growing.
“Our clinics experienced higher treatment volumes in the first half of fiscal 2024 resulting in strong revenue growth,” McIntyre said. “This demonstrates the demand for critical mental health treatments and therapies that our team of specialized psychiatrists, doctors and nurses provide across our clinical footprint.”
He added: “Our team has continued to focus on reducing expenses and improving efficiencies while also looking to add novel therapies and other support services to our clinical platform to further improve revenues.”