Braxia Scientific Corp. (CSE:BRAX, OTC:BRAXF) has reported third-quarter results that show a sharp rise in revenue as the company increased its in-clinic ketamine treatments and continued to expand its US telemedicine platform, KetaMD.
The medical research and telemedicine company also updated investors on its proposed acquisition by Irwin Naturals Inc. (CSE:IWIN) after the two companies entered into a non-binding Letter of Intent (LOI) in January.
"We continued to make progress on our priorities to scale our clinics, technology and people in order to address increasing demand for treatments,” Braxia Scientific CEO Dr Roger McIntyre said in a statement. “At the same time, we have completed and funded our psilocybin clinical trial and are preparing to publish our results.”
READ: Irwin Naturals announces LOI to acquire Braxia Scientific to create new market leader
For the three months to December 31, 2022, the company reported revenue of $480,000, 50.5% higher than the same quarter a year earlier. That took revenue for the first nine months of its 2023 financial year 21.9% higher to $1.36 million.
Braxia Health in-clinic ketamine treatments increased by 29% year-over-year, with nine-month in-clinic treatments rising 30% from a year earlier.
The company said Braxia Health's clinic performance is expected to see a steady improvement as three new clinics, Ottawa, Toronto and Kitchener-Waterloo, continue to ramp up operations and deploy new technology to drive patient acquisition and fill newly added capacity. Additionally, Braxia's Toronto clinic has commenced psilocybin treatments under its special access program which is expected to continue to ramp up in 2023, it added.
During the quarter, KetaMD continued to expand the initial pilot of its virtual ketamine treatments along with multiple marketing initiatives to drive new patient referrals. Braxia Scientific said KetaMD also has made excellent progress in building a pipeline of potential clinic partnerships.
For the quarter, the company reported a reduced net loss of $2.17 million, compared with a net loss of $2.5 million for 3Q 2022. For the first nine months of its 2023 financial year, its net loss amounted to $5.48 million, compared to a net loss of $5.32 million for the comparable period a year earlier, including non-cash share-based compensation of $750,000.
It ended December 2022 with cash and cash equivalents of $1.49 million and working capital of $720,000. After the end of the quarter, it raised aggregate proceeds of $1.26 million in a non-brokered offering.
Irwin Naturals business combination
Following January’s announcement of the business combination with Irwin Naturals, Braxia Scientific said its management team has continued to work diligently with Irwin towards completing a definitive and binding arrangement agreement for the transaction and expects to execute the arrangement before March 31, 2023, with the closing likely to occur upon the receipt of regulatory, court and security holder approvals.
"Looking ahead, we are focused on accelerating our strategic initiatives with Irwin to create the market leader in North American mental health treatment,” McIntyre added. “Together, we are aiming to build a large network of clinics, enhanced by our KetaMD telehealth platform, that will provide access to innovative treatments while also serving pharmaceutical sponsors by carrying out in-human clinical trials to assist in the development of novel therapeutics for potential future marketing authorization from FDA and other health regulators globally."
The company stressed that the LOI is non-binding and there is no assurance that the transaction will be completed as proposed.
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