Filament Health Shares Q1 2023 Financials, Material Uncertainties Upon Securing Additional Financing

Natural psychedelic drug development company Filament Health FLHLF has released its unaudited consolidated, condensed financial results for Q1 2023 ended June 30.

Numbers show:

• Total cash of $860.324 (CA$1.16 million) as of June 30, 2023, compared to the $2.1 million held by Dec. 31, 2022. The figure excludes a $1.85 million private placement completed in July 2023.

• Three and six month total expenses (including R&D and G&A) of $1.13 million and $2.05 million, compared to $1.2 million and $2.4 million during the same periods ended June 30, 2022.

• Three and six month net and comprehensive loss of $1.12 million and $2.05 million, compared to $1.08 million and $2.26 million during the same periods ended June 30, 2022.

• Accumulated deficit of $19.6 million.

The quarter’s financial statements claim that, although prepared with the assumption that the company “will be able to realize its assets and discharge its liabilities in the normal course of business and continue operating” as a going concern, “there are material uncertainties” regarding its ability to execute its business plan and continue in the normal course of operations “which may be dependent upon its ability to obtain additional financing.” 

It further states that “there are no assurances that the company will be successful,” in view of Filament not yet achieving profitable operations and holding the mentioned accumulated deficit. 

Biz And Pipeline

Co-founder and CEO Benjamin Lightburn says he is proud to report on “another highly productive quarter," with the team’s achievement of “a number of industry-first milestones” and continued growth of the company’s revenue-generating supply network. 

Shortly after the period ended, Filament announced its intention to list on the NASDAQ through a $210 million worth-valuated business combination with Jupiter Acquisition Corp. JAQC. The partners have now announced the filing of a registration statement with the SEC, containing a preliminary proxy statement/prospectus.

While the statement has not yet become effective and the information contained is subject to change, it provides important information about the new business proposed activities and listing of securities, Filament's drug development program, licensing partnerships, IP, vertically integrated manufacturing capabilities and R&D program, as well as the proposed combination and the proposals to be considered by Jupiter's shareholders.

Other updates include:

• August’s FDA approval of two clinical studies assessing the company’s botanical psilocybin drug candidate PEX010 for cancer-related anxiety in metastatic cancer patients paired with group therapy, and for depression paired with Cognitive-Behavioral Therapy (CBT.) The trials are being led by the University of Washington and UCLA.

• June’s exclusive global licensing agreement with NeoLumina Bioscience Inc. for PEX010 and associated IP for clinical and commercial development related to eating disorders.

• May’s interim positive safety reporting from Phase 1 clinical trial in partnership with the UC-SF's Translational Psychedelic Research Program.

• May’s completion of the reportedly first-ever Nagoya Protocol-compliant import of Tabernanthe iboga root from Gabon to Filament's R&D facility.

Photo: Benzinga edit with photo by Pexels.