Mydecine Reports Financial Results for the Second Quarter of Fiscal Year 2022

Rhea-AI Summary

Mydecine Innovations Group (MYCOF) reported financial results for the six months ending June 30, 2022, revealing a net loss of $8.09 million, or $(1.31) per share, an improvement from a loss of $13.53 million in the same period in 2021. As of June 30, 2022, the company held $324,146 in cash. Total assets decreased to $6.19 million from $7.58 million at year-end. Key expenses included substantial costs in corporate development and research, while total liabilities increased to $8.22 million, emphasizing financial challenges. The company continues to focus on advancing mental health treatments.

Positive

• Net loss improved from $13.53 million in 2021 to $8.09 million in 2022.
• Basic and diluted loss per share decreased from ($3.04) to ($1.31).

Negative

• Cash reserves significantly dropped from $1.5 million at year-end 2021 to just $324,146.
• Total liabilities increased to $8.22 million, raising concerns about financial health.
• Shareholder equity turned negative at $(2.03 million).

DENVER, Aug. 15, 2022 (GLOBE NEWSWIRE) -- Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) (FSE: 0NFA) ("Mydecine" or the "Company"), a biotechnology company aiming to transform the treatment of mental health and addiction disorders, today reported financial results for the six months ended June 30, 2022.

Financial Results for the Six Months Ended June 30, 2022

Net Loss: The net loss attributable to common stockholders was $8.09 million, from operations, or a basic and diluted loss per share of $(1.31). For the same period in 2021, loss from operations was $13.53 million, or a basic and diluted loss per share attributable to common stockholders of ($3.04) and which included a $4.2 million impairment charge and a loss of $103,285 from discontinued operations,

Cash Position: The Company had $324,146 in cash and cash equivalents as of June 30, 2022.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS    - UNAUDITED.
		Three-months ended June 30,						Six-months ended June 30,
	Note	2022			2021 (Restated)			2022			2021 (Restated)
		$			$			$			$
Sales		-			-			-			-
Cost of goods sold		-			-			-			-
Gross margin		-			-			-			-
Expenses
Finance cost	6,7	238,464			27,960			459,663			123,697
Corporate development		13,594			428,203			141,474			2,427,138
Depreciation and amortization	5,8	34,301			37,663			94,573			79,195
Consulting fees		703,895			1,193,840			2,127,768			2,217,495
Director and management fees	12	120,284			341,632			230,856			832,508
Foreign exchange loss (gain)		(53,964	)		97,293			(25,776	)		319,668
Insurance		289,529			153,223			548,874			153,223
Office and miscellaneous		22,541			(115,467	)		240,523			220,899
Professional fees		385,479			697,414			992,633			1,350,469
Regulatory filing fee		-			12,276			-			177,912
Research and development		652,486			1,091,920			1,702,011			1,322,130
Property taxes		-			-			-			-
Salaries	12	737,196			234,331			1,375,242			234,331
Share-based payments		-			-			-			-
Total expenses		3,143,805			4,454,160			7,887,841			9,458,665
Other income (expenses)
Change in fair value of derivative liabilities	9	631,760			249,549			(261,690	)		221.893
Impairment of investment in associate		-			(4,169,616	)		-			(4,169,616	)
Consideration paid in excess of identifiable assets		-			-			-			-
Rental income		-			32,310			-			32,307
Gain (loss) on settlement of debt		-			-			-			(2,319	)
Total other income (expenses)		631,760			3,887,757			261,690			(3,917,735	)
Loss from continuing operations		(2,512,045	)		(8,341,947	)		(8,149,531	)		(13,376,400	)
Loss from discontinued operations	1	-			18,788			-			(103,285	)
Foreign currency translation adjustment		61,561			(24,830	)		61,561			(48,628	)
Net loss and comprehensive loss for the period		(2,450,484	)		(8,347,989	)		(8,087,970	)		(13,528,313	)
Net loss per share – Basic and diluted from continuing operations		(0.35	)		(1.75	)		(1.31	)		(3.04	)
Weighted average number of shares outstanding – Basic and diluted		7,142,532			4,744,805			6,217,942			4,440,487

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION    - UNAUDITED.
As at,	Note	June 30, 2022 $		December 31, 2021 (Audited) $
Current assets
Cash		324,146		1,495,311
Rent and other receivable		-		3,856
Inventory		-		-
Sales tax receivable		257,338		201,000
Prepaids and deposits	4	3,742,147		3,521,125
Total current assets		4,323,632		5,221,352
Non-current assets
Prepaids and deposits	4	1,504,484		1,793,894
Right-of-use asset	8	-		130,546
Property and equipment, net	5	362,815		434,910
Total assets		6,190,930		7,580,702
Current liabilities
Accounts payable and accrued liabilities		3.252,719		1,587,238
Notes payable	7	87,916		-
Derivative liabilities	9	79,660		1,280,294
Lease liability – current portion	8	-		79,728
Total current liabilities		3,420,295		2,947,260
Non-current liabilities
Convertible debentures, net	6	4,797,009		4,354,302
Long-term portion of lease liability	8	-		67,821
Total liabilities		8,217,304		7,369,383
Shareholders’ equity
Share capital	10	113,908,425		107,662,388
Contributed surplus	10	16,994,081		17,288,315
Equity portion of convertible debentures	10	175,756		175,756
Accumulated other comprehensive loss		61,561		-
Deficit		(133,166,197	)	(124,915.140	)
Total shareholders’ equity		(2,026,374	)	211,319
Total liabilities and shareholders’ equity		6,190,930		7,580,702

For more information, please review the Company’s filed financial statements and management discussion on the SEDAR site.

About Mydecine Innovations Group

Mydecine Innovations Group™ (NEO:MYCO) (OTC:MYCOF) (FSE:0NFA) is a biotechnology company developing innovative first- and-second-generation novel therapeutics for the treatment of mental health and addiction using world-class technology and drug development infrastructure. Mydecine was founded in 2020 to address a significant unmet need and lack of innovation in the mental health and therapeutic treatment environments. Our global team is dedicated to efficiently developing new therapeutics to treat PTSD, depression, anxiety, addiction and other mental health disorders. The Mydecine business model combines clinical trials and data outcome, technology, and scientific and regulatory expertise with a focus on psychedelic therapy, as well as other novel, non-psychedelic molecules with therapeutic potential. By collaborating with some of the world’s foremost authorities, Mydecine aims to responsibly fast-track the development of new medicines to provide patients suffering from mental health disorders with safe and more effective treatment options. Mydecine Innovations Group is headquartered in Denver, Colorado, USA, with international offices in Leiden, Netherlands.

Learn more at: https://www.mydecine.com and follow us on Twitter, LinkedIn, YouTube and Instagram.

For more information, please contact:
Media Contact
Damon Michaels, Chief Operating Officer pr@mydecineinc.com

Investor Relations
Damon Michaels, Chief Operating Officer contact@mydecineinc.com

On behalf of the Board of Directors:
Joshua Bartch, Chief Executive Officer contact@mydecineinc.com

For further information about Mydecine Innovations Group, Inc., please visit the Company’s profile on SEDAR at www.sedar.com or visit the Company’s website at www.mydecine.com.

This news release contains forward-looking information within the meaning of Canadian securities laws regarding the Company and its business, which relate to future events or future performance and reflect management’s current expectations and assumptions. Often but not always, forward- looking information can be identified by the use of words such as “expect”, “intends”, “anticipated”, “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would” or “will” be taken, occur or be achieved.

Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, without limitation, risks regarding the COVID-19 pandemic, the availability and continuity of financing, the ability of the Company to adequately protect and enforce its intellectual property, the Company's ability to bring its products to commercial production, continued growth of the global adaptive pathway medicine, natural health products and digital health industries, and the risks presented by the highly regulated and competitive market concerning the development, production, sale and use of the Company's products. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation.

FAQ

What are the latest financial results for Mydecine Innovations Group (MYCOF)?

Mydecine reported a net loss of $8.09 million for the six months ending June 30, 2022, which is an improvement from a loss of $13.53 million during the same period in 2021.

What was Mydecine's cash position as of June 30, 2022?

As of June 30, 2022, Mydecine had $324,146 in cash and cash equivalents.

How did Mydecine's liabilities change by June 30, 2022?

Total liabilities increased to $8.22 million as of June 30, 2022, compared to $7.37 million at the end of 2021.

What is the significance of Mydecine's basic and diluted loss per share results?

The basic and diluted loss per share improved from ($3.04) in 2021 to ($1.31) in 2022, indicating a reduction in the company's losses.