Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), (NEO: MMED) reported its financial results for the first quarter ending March 31, 2022. At this time, MindMed does not have any revenue to report. The net and comprehensive loss for the quarter was $18.5 million, compared to $13.8 million for the same period in 2021.
The net cash used in operating activities was $12.9 million for the quarter versus $10.0 million for the same period in 2021. R&D expenses were $10.2 million for the quarter versus $6.8 million for the same period in 2021. MindMed said the increase of $3.4 million was primarily due to $4.4 million of internal expenses related to compensation costs for an additional headcount of $2.0 million and an increase in non-cash expenses of $1.7 million of stock-based compensation expenses.
“The outset of 2022 was marked by significant progress across all aspects of the company that propelled our business forward, as we continued to advance and de-risk our three lead product candidates: MM-120 for the treatment of generalized anxiety disorder, MM-402 for the treatment of core symptoms of autism spectrum disorder, and MM-110 for the management of opioid use disorder,” said Robert Barrow, Chief Executive Officer and Director of MindMed. “We anticipate multiple upcoming catalysts and further growth across our drug development pipeline as well as our enabling technologies. We look forward to building on this momentum and believe we are well-positioned to deliver on the therapeutic potential of psychedelics and other novel targets to transform the treatment of brain health disorders.”
The company said it has cash of $120 million, down from $133 million for the first quarter in 2021. Despite the large amount of cash on hand, MindMed filed a prospectus for an at-the-market equity offering under which the company may offer and sell its Subordinate Voting Shares or common shares re-designated from the company’s Subordinate Voting Shares for up to $100 million in aggregate sales proceeds in “at the market” transactions.
The company has a deficit of $156 million and said in it’s last filing, “We expect that it will be several years, if ever, before we have a commercialized product and generate revenue from product sales. Even if we succeed in receiving marketing approval for and commercializing one or more of our product candidates, we expect that we will continue to incur substantial research and development and other expenses in order to discover, develop and market additional potential products.”