Psychedelic-assisted therapy provider Numinus Wellness Inc. (OTCQX: NUMIF) released its financial results for the first quarter of fiscal 2024, which showed a nuanced performance, with a modest slump in revenue but increased operational efficiency.
The company’s revenue for the quarter ending Nov. 30, 2023, was $5.9 million, a 3% decline from the previous quarter. Revenue was up 4.9% versus the same quarter the previous year.
That fluctuation is partly due to a shift towards more profitable operations, according to the company, leading to a lower number of appointments at its wellness clinics. Numinus reported a $4.4 million net loss versus a $6.3 million net loss in the previous year’s first period, according to filings.
According to CEO Payton Nyquvest, Numinus has focused on enhancing its practitioner training program and clinical infrastructure to meet growing demand for novel mental health treatments.
“This infrastructure is built on Numinus’ synergistic combination of a clinic network that delivers high-quality patient care, clinical research support that works with leading psychedelic drug developers, and training programs that ensure effective and safe support is available for patients into the future,” Nyquvest said.
A key aspect of the firm’s strategy has been cost containment. The company reported a monthly cash burn rate of less than $1 million for the period, a continuation of efforts that began in October 2023. That has resulted in a 19.9% decline in operating expenses versus the previous quarter and a 30.6% reduction versus the first quarter of last year.
Consequently, the gross margin improved to 36.1% from 29.5% in the previous quarter.
The performance of Numinus’ wellness clinics also alluded to that rightsizing, with revenue of $4.9 million for the quarter, a slight year-over-year slump. The company’s emphasis on higher-margin services led to a reduction in the number of clinical appointments.
Regarding clinical research, the company reported mixed results. Revenue from clinical and contract research fell by 12.9% from the previous quarter, but it rose 49.5% versus the same quarter last year. Numinus said it continues to participate in clinical trials and has introduced comprehensive psychedelic programs at its facilities.
As of the end of the quarter, Numinus reported a total cash balance of $4.7 million and working capital of $4.6 million. The company’s board of directors kickstarted a strategic review process to explore options for enhancing shareholder value, with no specific timeline set for its completion.