Bright Minds Biosciences Inc. (NASDAQ: DRUG) reported its earnings in Canadian dollars for the quarter ending in December 2023. The company has no revenue at this time.
Net losses were trimmed to $1.6 million versus last year’s net loss of $2.3 million. As of Dec. 31, Bright Minds said it cannot finance day-to-day activities through operations. The company reported a deficit of $33,231,290 since inception and negative operating cash flows. The company had working capital of $5,984,598 at the end of 2023.
Bright Minds did say in its MD&A that it believes that its expected cash resources will be sufficient to fund operations for the next twelve months of research and development while maintaining adequate working capital.
Bright Minds is a biotechnology company dedicated to developing next-generation therapeutics to improve the lives of patients with severe and life-altering diseases. According to the company’s MD&A filing, it is focused on new chemical entities (NCEs) for a variety of central nervous system disorders, including but not limited to pediatric epilepsies, as well as other neuro-psychiatric disorders, including but not limited to depression. The company’s R&D efforts focus on medical indications based on its expertise in 5-HT (serotonin) mediated diseases.
The company said it does not advocate for the legalization of psychedelic substances for recreational use or otherwise, and its business is oriented to the discovery of novel, FDA/EMA-approved, and regulated serotonergic therapeutics rather than the use of substances such as psilocybin or other psychedelics in new therapies. The company also noted that off-label use of psilocybin extracts in depression and cluster headache, as well as encouraging clinical trial data with psilocybin and MDMA in depression and PTSD illustrate the potential for advancing serotonergic therapies in neuropsychiatry, pain, and substance use disorders (SUD).
Recent capital raise
In December, the company raised $900,000 from an offering intended to further the progress of Bright Minds’ Phase 2 Clinical Trial for BMB-101 in a pediatric epilepsy indication.
“This investment is a clear signal of our long-term commitment and focused intent to advance BMB-101 into and through Phase 2 at an accelerated pace. We believe BMB-101 has the potential to be a best-in-class molecule, offering substantial advantages over existing treatments. Our aim is not just to compete with current standards of care but to set new ones, providing improved outcomes for patients,” stated Ian McDonald, CEO of Bright Minds.