Lucy Scientific Discovery Inc. (NASDAQ: LSDI) released its quarterly financial earnings for the period ended Sept. 30. In just three months, the company has burned through $1.4 million in cash.
The company had a cash balance at the end of June, the end of its last fiscal year, of $1.6 million; at the end of September, it was just $237,614. The company also reported a working capital deficiency of $636,603 at the end of the quarter.
Lucy reported no revenue in the quarter, which the company in its filing attributed to “no product sales during the three months ended September 30, 2023, as the company was changing its payment processor. Sales commenced again in October 2023.”
Lucy Scientific reported $7,048 in sales for the past fiscal year, but that figure is also listed in the accounts receivable column, so the company hasn’t actually been paid for those sales. The operating loss for the quarter was $1.6 million and the net loss for the quarter was $1.9 million.
The company incurred net losses in recent periods and has accumulated a deficit of $46,413,848 as of Sept. 30.
Lucy Scientific summed up dire state of affairs in its latest regulatory filing: “We may be unable to raise additional funds or enter into such other arrangements when needed or on terms that are acceptable to us, or at all. To the extent that we raise additional capital by issuing our equity securities, our existing stockholders may experience substantial dilution, and the terms of these securities may include liquidation or other preferences that could harm the rights of a common shareholder. If we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may be required to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates, or grant licenses on terms that may not be favorable to us.”
Still, the company said it believes it will have sufficient working capital to meet its liquidity needs through 12 months from the quarterly report.
The company mentioned its recent acquisition plans for High Times and Bluesky Biologics in the filing, but neither of the deals has actually closed.