PharmAla Biotech Holdings Inc. (CSE: MDMA) (OTCQB: MDXXF) has released its audited financial statements for the year ended August 31, 2024, showcasing significant revenue growth and operational advancements. The company, focused on the research, development, and manufacturing of LaNeo™ MDMA and novel MDMA derivatives (MDXX class molecules), reported substantial financial improvements and strategic achievements.
Financial Performance Highlights
PharmAla's fiscal year 2024 revenue exceeded $1.0 million, marking a 95% increase compared to the previous year. This growth was primarily driven by a $305,000 (73%) increase in MDMA product sales, which totaled $723,000. The company's adjusted EBITDA improved significantly, moving from ($659,000) in fiscal 2023 to ($55,000) in fiscal 2024, a $605,000 year-over-year improvement.
"While the previous year saw significant setbacks for some companies, I believe that PharmAla has only moved from strength to strength; In my opinion, our financial performance reflects that," said Nick Kadysh, CEO of PharmAla Biotech. "We’ve added significant new talent to our team, including our CFO, Will Avery. Our revenue growth continued at pace, and we are working hard so that it may continue to do so."
Intellectual Property and Patents
During fiscal 2024, PharmAla was granted patents for two novel MDXX molecules, APA-01 and ALA-002. As a result, costs associated with these patents commenced amortization during the fiscal year, reflecting the company's investment in innovative drug development.
Capital and Investment
The company generated $772,000 in net proceeds from the issuance of shares and exercise of options during fiscal 2024. Cash usage included $321,000 in operations and $226,000 invested in the development of intangible assets. PharmAla ended the year with $419,000 in cash reserves.
Corporate Developments
PharmAla also announced the completion of its continuance from the Province of British Columbia to the Province of Ontario, effective December 17, 2024. This move, approved by shareholders on February 27, 2024, is a strategic corporate decision with no required action from existing shareholders.
Private Placement
Furthermore, PharmAla closed a non-brokered private placement offering, issuing 8,676,221 units for gross proceeds of $1,561,719.88. The offering was oversubscribed by 12%, with each unit priced at $0.18 and consisting of one common share and one-half of one warrant. Each whole warrant allows the holder to acquire an additional share at C$0.27 until 4:30 pm (Toronto Time) on the date that is thirty-six months following the Closing Date.
The company intends to allocate the net proceeds from the offering to secure global patent rights for its intellectual property, manufacture products for sale, conduct clinical trials for its novel drug candidates, and for general corporate and working capital purposes.
"The PharmAla team is proud of the results we have achieved with the growth in product sales and the major milestones achieved during the year ended August 31, 2024," said Will Avery, CFO of PharmAla Biotech. "We believe in the quality of our team and, most importantly, the quality of our product and we look forward to building on the success of this past year."
