Field Trip H&W Closes Q3 2023 On Material Uncertainty, Need To Lower Costs & Adapt To New Regulations

Benzinga2023-03-02

Ketamine therapy provider Field Trip Health & Wellness Ltd. (OTCQB:FTHWF) shared its Q3 2023 results for three and nine months ended Dec. 31, 2022 and some of the period’s highlights.

Financials:

  • As of Dec. 31, the company held $4.9 (CA$6.7) million in cash and cash equivalents. On March 31, that number was $1.5 million.

  • Revenue from patient services of $1.2 (CA$1,6) million and $3.9 million for the three and nine months ended Dec. 31, 2022, with increases of 19% and 69% as compared to the $1 million and $2.3 million income for the same periods ended Dec. 31, 2021. 

  • Total operating expenses of $6.0 million and $25.9 million for the three and nine months ended Dec. 31, 2022, somewhat constant regarding the $7.1 million and $22.8 million spent in the same periods in 2021.

  • Net loss of $5.1 million (or $0.06 per share) and $21.7 million (or $0.31 per share) for the three and nine months ended Dec. 31, 2022 as compared to $6.5 million (or $0.13 per share) and $21.1 million (or $0.43 per share) for the same periods in 2021.

The comparatively higher revenues due to operations are not enough to meet or surpass expenses, which the company acknowledged along with a total deficit of $35.1 million since its inception.

Field Trip stated that it expects to incur further losses while developing its business, all of which creates “a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.”

The company formed an independent committee (IC) of the directors’ board in Dec. 2022 to strategically tackle issues like how capital market conditions make additional funding difficult, ongoing fixed costs regarding brick-and-mortar locations and the pause of its hybrid in-clinic/virtual program following telehealth’s federal regulatory changes.

See also: 'Sea Change': Irwin Naturals, Numinus And Field Trip Discuss Psychedelics At Cantor Webinar

In Jan. 2023, the IC engaged a third-party consultant to review operations and assess alternate routes including further cost reductions, restructuring, subleasing or closing clinic locations and setting lease obligations.

Photo courtesy of Pexels.

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