[6-K] Snow Lake Resources Ltd. Current Report (Foreign Issuer)
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Insights
TL;DR – Rapid revenue growth offset by weaker margins and ongoing cash burn; liquidity adequate but tight.
Revenue more than doubled post-Greenbrook, validating the strategic pivot toward vertically integrated care. However, clinic operations dragged gross margin below 50%, undoing much of the scale benefit. Operating loss narrowed modestly, yet free-cash outflow hit $20 m in six months, depleting cash to $11 m (plus $6.5 m restricted). The February equity raise and 2029-maturity Perceptive debt extend runway, but higher leverage (net debt ≈$44 m) and a 12.3% lease discount rate point to elevated capital costs. Investors will focus on margin recovery, revenue per clinic trajectory, and compliance with quarterly revenue covenants under the credit facility.
TL;DR – Acquisition broadens care model and upsells sessions; execution risk lies in harmonising clinic network.
The move into direct patient services via Greenbrook multiplies touchpoints for NeuroStar devices and consumables, evidenced by clinic revenue of $23.0 m in Q2. FDA clearances across MDD, OCD and anxious depression create a favourable demand backdrop. Key to profitability is standardising protocols and utilisation across 130+ centres while maintaining payer reimbursement levels. Management’s target to realise cost synergies should lift operating margin, but current mix shift shows early pressure. Competitive TMS landscape and upcoming ASU expense-disaggregation rules may also expose cost structure. Overall impact: strategically positive but financially neutral until clinics scale efficiently.
