NovAccess Global Inc. Reports No Revenue, Net Loss in Latest Quarter, Seeks Additional Funding

NovAccess Global Inc. reported its financial results for the three and nine months ended June 30, 2024, revealing significant changes in its financial position and performance compared to the previous fiscal period. The company, which focuses on developing immunotherapies for brain tumor patients, continues to face challenges, including a lack of revenue generation.

For the three months ended June 30, 2024, NovAccess reported no revenue, consistent with the same period in 2023. Total operating expenses decreased to $315,349 from $484,645, primarily due to a reduction in selling, general, and administrative (SG&A) expenses, which fell to $278,048 from $444,481. This decline was attributed to lower expenses related to warrants issued in connection with loans. Research and development expenses also saw a slight decrease to $37,301 from $40,164. However, the net loss for the quarter increased to $(936,333) from $(779,639) in the prior year, largely due to a significant rise in other expenses, which increased to $(620,984) from $(294,994), primarily driven by a loss from changes in derivative liability.

For the nine months ended June 30, 2024, NovAccess again reported no revenue. SG&A expenses decreased substantially to $682,177 from $1,940,587, reflecting reductions in stock-based compensation and other operational costs. Research and development expenses increased slightly to $123,273 from $116,164. The net loss for this period decreased significantly to $(125,334) from $(2,957,281), aided by a shift from other expenses to other income, which changed from $(900,530) to $680,116, primarily due to a gain on changes in derivative liability.

As of June 30, 2024, NovAccess reported total assets of $273,559, significantly up from $62,248 as of September 30, 2023, largely due to a new long-term equity investment. However, the company also reported a working capital deficit of $7,647,154, down from $7,798,484, indicating some improvement in its financial health. Cash reserves dwindled to $794 from $21,415, raising concerns about liquidity.

The company continues to seek additional funding, estimating a need for at least $3.0 million through December 31, 2025, to support ongoing operations and complete its Investigational New Drug application with the FDA. Recent strategic developments include a securities purchase agreement with Sumner Global LLC for $3.63 million and a loan of $7.05 million, contingent on certain conditions.