The company acknowledged it needed additional funding to continue operations.
Ketamine clinic company Braxia Scientific Corp. (CSE: BRAX) (OTC Pink: BRAXF) announced the filing of its unaudited financial statements for the fiscal first quarter of 2024 ending June 30, 2023. All figures are in Canadian dollars.
Braxia reported that its fiscal first quarter revenue increased 44% to $600,204 year-over-year. The cost of sales was $512,529 and the operating expenses were $886,144.
The net loss was $808,788 for the quarter versus a net loss of $968,844 for the 2023 fiscal first quarter.
At the end of June, Braxia reported it had cash and cash equivalents were $861,393 with a working capital deficit of $0.753 million.
“While the company continues to face challenges, including in accessing capital through public markets, during the first quarter our clinics did experience increasing demand from new referrals for ketamine treatments, which increased our patient base and treatment volumes across our clinics,” CEO Dr. Roger McIntyre said. “We also made further progress in reducing expenses and improving efficiencies as we also focus on improving revenue through increasing patient volumes.”
Going Concern
Despite that progress, Braxia wrote in its filing that at the end of the quarter it had a working capital of deficit $752,779. For March 31, the company reported a surplus of $7,558.
The company has yet to achieve profitable operations and has accumulated losses of $116.8 million since inception and expects to incur further losses in the development of its business. The company said that existing funds on hand, when combined with operational cash flow would not be sufficient to fund its operations
“Additionally, our discussions with various potential strategic partners remain ongoing given the challenging environment in accessing capital,” McIntyre continued. “The company maintains its priorities and growth objectives, however, the company also continues to look to access alternative sources of capital as well as seek other partnerships to support our growth objectives.”
If Braxia fails to raise additional funds, McIntyre said it would “look at alternate courses of actions,” including:
Further cost reductions
Restructuring
Scaling back of clinic locations
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