Wellbeing Digital Sciences Reports Financial Results for the Second Fiscal Quarter of 2022
VANCOUVER, British Columbia – Wellbeing Digital Sciences Inc. (NEO: MEDI) (OTC: KONEF) (FRA: SQ2), an evidence-based healthcare company focused on innovative clinical solutions, artificial intelligence-powered digital therapeutics and contract research, announced that it has filed its financial results for the quarter ended January 31, 2022, which is the second quarter of the Company’s 2022 fiscal year ending July 31, 2022, the highlights of which are included in this news release. The full set of Consolidated Financial Statements and Management Discussion and Analysis can be viewed by visiting the Company’s website at www.wellbeingdigital.co or its profile page on SEDAR at www.sedar.com.
Financial Highlights (all amounts expressed in Canadian Dollars unless otherwise noted)
- Revenue for the quarter ended January 31, 2022 reached $1,660,158, as compared to $nil for the same period of the prior year, which was primarily due to transitioning from an investment issuer to a single-purpose company focused on consolidating medical clinics and becoming a North American leader in mental health treatments;
- Gross loss for the quarter ended January 31, 2022 was $42,483, as compared to $nil for the same period of the prior year, due to cost of goods sold slightly exceeding revenue for the three-month period;
- Net loss for the quarter ended January 31, 2022 was $6,503,311, as compared to net loss of $997,171 reported for the same period of the prior year, primarily due to share based payments of $4,029,7765, professional fees of $645,473 and marketing expense of $549,010; and
- Total assets for the quarter ended January 31, 2022 decreased by 17% to $18,295,698 from $21,921,195 for the period ended July 31, 2021, which was mainly attributable to a decreased in cash and cash equivalents.
“The second quarter of fiscal 2022 marked our first financial period as Wellbeing Digital Sciences, which began an exciting new chapter for the Company. During the period, KGK Science and IRP Health contributed appropriately and Wellbeing’s prospects for growth are encouraging,” said Adam Deffett, Interim CEO of Ketamine One. “As previously announced, our very own Najla Guthrie will become Chief Executive Officer of the Company effective March 31, 2022. I am grateful to have had the opportunity to lead an organization as dynamic and promising as Wellbeing on an interim basis over most of the last year and am confident that Najla will continue to steward it in a strong direction,” added Mr. Deffett.
Subsequent Highlighted Events (all amounts expressed in Canadian Dollars unless otherwise noted)
- Recent Achievements by KGK Science: On February 2, provided a corporate update highlighting the various achievements of its wholly owned subsidiary, KGK Science Inc., (“KGK” or the “CRO”). Recapping some of 2021’s highlights, KGK won contracts for 11 clinical trial service projects and 5 medical writing projects. Despite the restrictions associated with the COVID-19 pandemic, KGK was able to complete the conduct of 9 clinical trials and advanced several others towards completion. KGK’s Regulatory Division completed 19 consulting projects for clients in the nutraceutical, cannabis and psychedelic spheres. KGK received approvals for eight Product License Applications for Natural Health Products, acknowledgement letters for four unique New Dietary Ingredient Notifications and expert panel consensus that three food ingredients possess Generally Recognized As Safe status.
- Delivered its First IV Ketamine Treatment Under the Inpatient KITE Program: On February 15, announced the successful facilitation of its first intravenous (“IV”) ketamine treatment to a patient at the Victoria Wellness Mental Health Residential and Addition Treatment Centre (“VW”) in Ontario through its collaboration with iHealthOX. VW is one of the first in-patient facilities to offer ketamine-assisted therapy in Canada. Wellbeing management expects the collaboration between VW, iHealthOX and itself to experience an increase in the number of patients treated via IV ketamine infusions in the near future.
- IRP Health Received Approval from Veterans Affairs Canada for Reactivation Program: On March 3, announced that its wholly owned subsidiary, IRP Health Ltd. (“IRP”) had recently had its innovative Reactivation therapy program (“Reactivation” or the “Therapy Program”) formally approved by Veterans Affairs Canada (“VAC”) as an interdisciplinary clinic outpatient program at three locations. IRP currently has four clinic locations across Canada and is among the first operators to meet VAC’s new criteria that is aimed at providing high-quality programs for veterans. The Company expects IRP’s location in Ottawa, Ontario to also be approved to offer the Therapy Program by VAC imminently.
- Appointed Najla Guthrie as Chief Executive Officer: On March 7, announced that Najla Guthrie, the current Chief Research Officer and President of KGK Science Inc. (“KGK”), had been appointed as Chief Executive Officer (“CEO”) of Wellbeing effective March 31, 2022. Adam Deffett who was appointed Interim CEO in July of 2021, will transition out of the role but will continuing in his former capacity as Vice President of Capital Markets and Communications of the Company.
Outlook (excerpt from the Company’s Management Discussion & Analysis for the Period Ended January 31, 2022 and 2021)
The Company is dedicated to becoming a leader in clinical offerings of ketamine-enhanced treatments across North America. We have acquired 15 clinics across North America, with letters of intent signed for an additional clinic. We are building the critical infrastructure needed to provide breakthrough and life-changing mental wellness treatments through existing clinics, experienced professionals and advanced technology.
The Company will be utilizing first-of-its-kind wearable technologies to track key vitals before, during, and after psychedelic-assisted therapies. Our technology aims to empower patients in their wellness journey and provide clinicians with data to improve outcomes. Building objective data around the patient experience by measuring physical signals and responses will allow us to refine and adjust our processes, while providing great opportunities to advance psychedelic therapy research.
KGK Science, a wholly owned subsidiary of the Company, has helped hundreds of companies with custom designed clinical trials and claim substantiation strategies over the past 23 years. Equipped with state-of-the-art technologies, novel research techniques, and a seasoned team of industry experts, KGK Science is a leader in premium clinical research. It has extensive experience in pharmaceuticals, cannabis, natural health products, and more recently psychedelics.
Notice Regarding Forward-Looking Information:
This news release contains forward-looking statements including but not limited to statements regarding the Company’s business, assets or investments, as well other statements that are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, investor interest in the business and prospects of the Company.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.
(This information is primarily sourced from WELLBEING DIGITAL SCIENCES INC. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).
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