Burcon NutraScience Corp (TSX:BU), a global technology leader in the development of plant-based proteins for foods and beverages, has reported results for its fiscal second quarter ended September 30, 2022.
During the quarter, Burcon recorded royalty revenues from its 31.6% licensee, Merit Functional Foods Corporation of $112,000, compared to $32,000 in the same year-ago quarter. Royalty revenues have been increasing each quarter over the past year, with the current quarter's royalty representing a 24% increase over the previous quarter, the company said in a statement.
It reported a net loss of $3.2 million or $0.03 per basic and diluted share, compared to $1.4 million or $0.01 per share in the same quarter last year. The $1.8 million increase in losses was mainly attributed to a $1.2 million increase in the share of Merit's loss and $657,000 of pea and canola-related costs that were deferred in the second quarter of fiscal 2022.
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Merit, which during the quarter launched the unique low sodium pea protein ingredient Peazazz C, recorded total sales growth of 48% to $2.4 million. It posted a loss of $4.4 million, up from $477,000 in the same year-ago quarter, reflecting its stage of development as it continued to ramp up its production and sales.
On September 30, 2022, Burcon had cash balances of $1.1 million compared to $7.0 million on March 31, 2022.
During the second quarter, the company made a drawdown of $2.0 million from the first tranche of the $10 million secured loan facility. If the secured loan facility is fully drawn, management believes it has sufficient resources to fund its expected level of operations and working capital requirements to November 2023.
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