Braxia Scientific Corp. (CSE: BRAX) saw its ketamine treatments rise by 26% and revenue increase by 27% over the year ending March 31, 2023, but financial statements indicate that the company’s ability to continue its operations could be in jeopardy.
Braxia, which recently completed dosing in its phase 2 psilocybin trial, plans to publish its results later this year. But the year has not been without challenges for the firm. In addition to its progress, Braxia reported a net loss of $13.1 million, a rise from last year’s loss of $12.1 million.
Despite the rise in treatments and revenue, Braxia posted a net loss of $13.1 million, up from the previous year’s loss of $12.1 million. Regulatory filings reveal that the company had a working capital of just $7,558 as of March 31, and an accumulated deficit of $116 million, casting significant doubt on its future viability.
In a statement, CEO, Dr. Roger McIntyre, said, “It has been a difficult time for companies in this nascent industry. Accessing capital in the public markets has been challenging.” The company has said that it is exploring financing options, strategic partnerships, and cost reductions as required.
The company’s Ottawa clinic saw treatment volumes up 87.2%, and its Kitchener-Waterloo clinic, which opened in mid-2022, has rapidly increased in treatment volume. However, the company has had to impair the goodwill of certain assets, totaling $3.7 million, and impair an intangible asset worth $1.8 million.
Braxia ended the fiscal year with $1.46 million in cash and cash equivalents.
Still, McIntyre signaled optimism, adding “I remain confident that we can continue to grow our promising clinical business.”
“Looking forward, we continue to aim to build a larger network of clinics and have progressed discussions with various potential strategic partners. However, discussions remain ongoing,” he said.
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