Enveric Biosciences Inc. (Nasdaq: ENVB) provided a corporate update and reported financial results for the first quarter of 2023 ending March 31. The net loss was $4.8 million for the quarter, including $560,000 in net noncash expenses, with a basic and diluted loss per share of $2.31.
That compares to a net loss of $4.4 million with basic and diluted loss per share of $5.34 per share for the quarter ended March 31, 2022.
Enveric noted that the net cash used in operations was $5.1 million, consisting of a $4.7 million net loss, adjusted by a net of $460,000 in noncash expenses and changes in asset and liability balances of $920,000.
As of March 31, the company had cash and cash equivalents of $12.6 million and working capital of $10.4 million.
“Underpinning Enveric’s business and development strategy is a continued focus on maximizing the value of our novel drug development programs to produce positive returns for our shareholders. In this pursuit, the company has been diligently working to develop a robust and differentiated pipeline of small-molecule therapeutics for the treatment of mental health disorders,” said Joseph Tucker, director and CEO. “Today’s announcement, including the cost reduction plan and reduction in force, reflects the necessary evolution of this strategy, enabling a greater focus of resources towards Enveric’s most valuable assets, EB-373 and our EVM301 Series.”
Enveric announced a cost-cutting plan to extend its financial runway into the first quarter of 2024.
This action includes:
- Approximately 35% cut in full-time personnel.
- Cancelation of seven consulting contracts focused on the cannabinoid programs.
- A transition from third-party service providers supporting R&D efforts to internal science teams performing this work.
In May, the company announced plans to transfer and spin off its cannabinoid clinical development pipeline assets to Akos Biosciences Inc. (formerly known as Acanna Therapeutics Inc.), a majority-owned subsidiary of Enveric.
In connection with this spin-off, the company transferred its cannabinoid clinical development pipeline assets to Akos, while retaining its psychedelics and nonhallucinogenic clinical development pipeline assets.
Separately, Enveric plans to engage with strategic advisors to identify and pursue alternative routes to capture value from these assets.