After the markets closed on Thursday, Numinus Wellness Inc. (TSX: NUMI) (OTCQX: NUMIF) announced its financial results for the second quarter ending February 28, 2023. Revenues grew 581.1% year-over-year to $5.4 million in the quarter. Sequentially, revenues declined 5.5% from the prior quarter due mostly to seasonal impacts, including fewer operating days as a result of the December holidays and February being a short month.
Numinus Wellness trimmed its net losses slightly by almost 7% to $7.2 million in the quarter. The company’s cash balance was $19.7 million as of February 28, 2023.
“We are excited about our recently announced training and licensing growth initiatives, which position Numinus as a clear leader in delivering and supporting psychedelic-assisted therapies – and contribute to much-needed clinical infrastructure for a sector that is on the verge of significant expansion,” said Payton Nyquvest, Founder and CEO. “As we believe that access to these therapies is pending with regulatory reform, the development of clinical protocols, practitioner training, and insurance payor expertise is becoming increasingly important. Given our expansive and growing capabilities, we are one of the best-positioned companies to lead the next stage of psychedelic-assisted therapies by providing the necessary infrastructure to deliver these innovative treatments. With new opportunities in sight, we are investing in our digital and licensing platforms to allow us to further scale our business, while reducing the capital investments traditionally needed with clinic expansion.”
While several clinic companies have found themselves in financial trouble as of late, Numinus’ clinic business has grown. The company reported that its clinic revenues increased by 569% to $4.7 million in the quarter versus last year’s $680k for the same time period.
Commenting on industry dynamics, Mr. Nyquvest added: “Our measured, capital-light approach to growth and diversified service offering continues to elevate Numinus as an industry leader within the changing sector landscape. With clinics that offer an assortment of mental health services, a growing CRO research business that continues to build trusted relationships with drug developers, and an expanded training program to help build the practitioner workforce for the future – Numinus is in a unique position to benefit from reduced competition.”
Numinus said in a statement that it is in process of investing in its digital platform, to provide effective technology-enabled practitioner training, client booking, and patient support tools, as a foundation for continued clinic and service expansion. The company said it believes that its digital platform may become a key driver of growth as it pursues industry partnerships and expands its psychedelic-assisted therapy practitioner training programs.
Earlier this week, Numinus announced the launch of its new Numinus Network wellness clinic licensing platform, which would provide independent practitioners with the opportunity to own and operate a Numinus-branded full-service clinic. The company also announced a new partnership with Healing Commercial Real Estate Inc. – a health care focused real estate investment company with deep market knowledge of the psychedelic sector. Through this agreement, Numinus Network licensees will have the option of leasing a turnkey, fully functioning Numinus Wellness clinic location – complete with leasehold improvements and clinic infrastructure, directly from Healing CREI.