Despite the revenue growth, Psyched Wellness still recorded a net loss of $689,679 for the quarter, albeit an improvement from the $1 million net loss reported in the previous year. The company’s financial stability appears secure, with current assets totaling $6.7 million, including $5.6 million in cash and cash equivalents, against current liabilities of $271,044.
According to the company’s financial report, management is confident in its financial footing, asserting that it has adequate capital to meet business obligations for at least the next 12 months, considering expected cash flows and future financial strategies.
Recent strategic movements include the departure of Chief Commercial Officer Matthew Singh in March. Subsequently, in April, Psyched Wellness entered into a significant agreement with New York-based Zerkalo LLC. This partnership, under a master services agreement, aims at product development, marketing, distribution, and supply chain logistics for AME-1, Psyched’s amanita muscaria mushroom product. The company has committed $2.25 million in cash to Zerkalo, disbursed in quarterly installments, along with issuing substantial advisory warrants.
Further financial activity includes the closure of the final tranche of a non-brokered private placement on April 30, bringing in $2.5 million. Although Psyched Wellness maintains a continuing relationship with investor Gotham Green, the exclusivity of their contract concluded in November 2023. Gotham Green, benefiting from the investor rights agreement, will place a representative on Psyched’s board, marking a significant influence with three out of seven board seats.
Looking forward, Psyched Wellness aims to enhance its presence in the U.S. market, focusing on direct-to-consumer sales and partnerships with high-end retailers. The company plans to continue its research and development on AME-1, exploring formulations with other active compounds, and seeks potential joint ventures for white labeling its products.
The strategic steps outlined by Psyched Wellness illustrate its commitment to strengthening its market position and financial health amidst challenges, aiming to capitalize on growth opportunities within the burgeoning legal mushroom supplement industry.
