Alterola Biotech Inc. Reports Increased Net Loss and Strategic Shift in Financial Results

Alterola Biotech Inc. reported its financial results for the six months ending September 30, 2024, revealing a net loss of $1.45 million, compared to a loss of $854,887 for the same period in 2023. The company did not generate any revenue during this period, maintaining a trend of no sales since its inception. Operating expenses surged to $1.16 million, up from $716,724 in the prior year, primarily driven by increased accounting, legal, and consulting fees. The net loss attributable to common shareholders for the second quarter was $691,831, significantly higher than the $123,157 loss reported in the same quarter of the previous year.

The company's balance sheet as of September 30, 2024, showed total assets of $1.36 million, a substantial increase from just $3,663 in March 2024. This increase was largely due to the recognition of loans receivable amounting to $1.06 million and the acquisition of intangible assets valued at $60,000. However, total liabilities also rose sharply to $3.62 million, up from $1.33 million, primarily due to the issuance of notes payable and convertible notes. As a result, Alterola's stockholders' deficit widened to $2.25 million from $1.33 million at the end of the previous fiscal period.

Strategically, Alterola has undergone significant organizational changes, including the formation of a new subsidiary, Phytanix Bio, which is intended to facilitate a merger with NASDAQ-listed Chain Bridge I. The company has also shifted its focus from developing chewing gum products to cannabinoid-based pharmaceuticals and ingredients. This strategic pivot includes the acquisition of intellectual property from Alinova Biosciences Ltd. and the previous acquisition of cannabinoid-related assets from C2 Wellness Corp., although the latter assets were sold back to the seller in September 2023.

Operationally, the company has not reported any customer counts or product adoption metrics, reflecting its ongoing development phase without commercial sales. The employee headcount remains unspecified, but the company has indicated a reliance on consulting and professional services to manage its operations. The lack of revenue generation and the significant losses raise concerns about the company's liquidity, as it reported negative working capital of $2.47 million as of September 30, 2024.

Looking ahead, Alterola's management has acknowledged substantial doubt regarding the company's ability to continue as a going concern. The company plans to raise capital through the sale of equity securities and debt financing to support its operations and future growth. However, there is no assurance that these efforts will be successful, given the current financial challenges and the absence of revenue. The outlook remains uncertain as the company navigates its strategic transition and seeks to establish a viable business model in the pharmaceutical sector.