After the market closed on Monday, Enveric Biosciences Inc. (Nasdaq: ENVB) reported financial results for the fourth quarter and year ended Dec. 31, 2022.
The company reported a comprehensive net loss of $19.3 million for the year 2022, including $2.4 million in net non-cash expenses, with a basic and diluted loss per share of $13.00, as compared to a comprehensive net loss of $48.8 million with basic and diluted loss per share of $103.69 per share for 2021.
Enveric does not have the revenue to report at this time.
The net cash used in operations for 2022, was $17.1 million, consisting of an $18.5 million net loss, adjusted by a net of $1.5 million in non-cash expenses and changes in asset and liability balances of $0.2 million. The company lost $27 million in its 2022 operations.
Running Out of Cash
As of Dec. 31, 2022, the company had cash and cash equivalents of $17.7 million and working capital of $14.4 million. It has an accumulated deficit of $79 million.
Enveric also reported in its annual filing that the company is a going concern unless it can raise more capital. The company said it has enough cash to make it to the end of 2023, but not beyond that.
“If we are not able to continue as a going concern, we may have to liquidate our assets and may receive less than the value at which those assets are carried on our consolidated financial statements and/or seek protection under federal bankruptcy law, and it is likely that holders of our common stock and holders of securities convertible into our common stock will lose all of their investment,” the filing stated.
Recently the company announced that it had entered into an agreement with Avance Clinical, an Australia-based contract research organization (CRO) with U.S. operations, for its planned Phase 1 clinical trial of EB-373, the company’s lead candidate targeting the treatment of anxiety disorders. EB-373, is a new chemical entity (NCE), designed as a next-generation proprietary psilocin prodrug and developed leveraging its Psybrary drug discovery platform to target anxiety disorders.
The Phase 1 clinical trial is expected to initiate in the fourth quarter of 2023.
“Enveric is a transformed company; 2022 was a year of considerable accomplishments, and we are now poised for an active, productive, and exciting 2023 as we strive to bring a new approach to solving the mental health challenges that face our society,” said Joseph Tucker, director and CEO of Enveric.
So far this year, the company has launched and Australia-based subsidiary, Enveric Therapeutics Pty., and is preparing to initiate the planned Phase 1 trial of EB-373.
Financially, Enveric raised approximately $10 million in gross proceeds via public offering in February 2022. It got an additional $8 million gross aggregate proceeds raised with registered direct and private placement offerings, which closed July 2022. The company also had an anticipated spin-off of Akos Biosciences Inc. (formerly Acanna Therapeutics Inc.).
Tucker concluded: “2023 will be a year of substantial progress for Enveric, with acceleration of the pipeline milestones to enable us to rapidly grow into a leading, innovative CNS company. Mental health treatments have seen little innovation for decades; stigmatization has abetted a global epidemic in depression and anxiety, which continued to worsen as a result of the COVID-19 pandemic. At Enveric, we believe it’s time for bold innovation and investment to conquer the monumental challenge of tackling mental health disorders.”