Cell MedX Corp., a biotech company focused on the development of therapeutic products, reported its financial results for the three months ended August 31, 2024. The company continues to face significant financial challenges, with an accumulated deficit of $10,362,182, reflecting a slight increase from $10,295,263 as of May 31, 2024. The total stockholders’ deficit also rose to $(908,730) from $(826,455) in the previous quarter.
For the third quarter of 2024, Cell MedX reported total operating expenses of $59,636, marking a 16.8% increase from $51,054 in the same period of 2023. Despite this rise in expenses, the net loss for the quarter decreased to $(66,919) from $(76,953) year-over-year. The company did not report any revenue-generating activities for both Q3 2024 and Q3 2023, indicating ongoing challenges in achieving profitable operations.
The company’s cash position deteriorated significantly, with cash decreasing to $20,552 as of August 31, 2024, down from $43,415 at the end of May 2024. This decline in cash was accompanied by net cash flows used in operating activities of $(22,917), a reduction from $(40,357) in the prior year, suggesting improved cash management despite ongoing losses.
Cell MedX's total liabilities increased to $931,127 as of August 31, 2024, up from $872,577 in the previous quarter. The company has been relying on related party transactions for financing, with significant amounts owed under various notes payable. Notably, a director-controlled entity forgave $3,165 in royalties, which was recorded as additional paid-in capital.
The company’s management has indicated a need for additional financing to support its operations and development of its proprietary eBalance® technology. Plans to secure funding include borrowing from directors and officers, issuing promissory notes, and private placements of common stock. However, the company has abandoned its research and development plans for the eBalance® technology due to financial difficulties.
In terms of governance, management acknowledged that the company's disclosure controls and procedures were not effective as of August 31, 2024, primarily due to a lack of segregation of duties. No significant changes in internal controls over financial reporting were reported during the quarter.
Overall, Cell MedX Corp. continues to navigate a challenging financial landscape, with a pressing need for capital and a focus on stabilizing its operations.
About Cell MedX Corp.
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