Nutriband Inc. reported a decline in revenue for the three and six months ended July 31, 2024, with revenues of $442,830 and $851,362, respectively, compared to $655,928 and $1,132,860 for the same periods in 2023. This decrease is attributed to reduced sales from its consumer health transdermal, topical, and tape products. Total costs and expenses increased significantly, reaching $1,852,572 for the three months and $4,150,581 for the six months, compared to $1,480,116 and $2,974,926 in the prior year. Consequently, the company reported a net loss of $(1,705,465) for the three months and $(3,603,542) for the six months, worsening from $(829,173) and $(1,844,402) in the same periods last year.

The company's cash and cash equivalents surged to $6,759,967 as of July 31, 2024, up from $492,942 at the end of January 2024, primarily due to an $8,400,000 equity financing completed on April 19, 2024. This financing involved the issuance of shares and warrants to European investors, which bolstered the company's working capital to $6,144,483. The company has relied on sales of securities and debt issuance to support its operations, as it has consistently incurred operating losses since inception.

Research and development expenses significantly increased to $1,748,510 for the six months ended July 31, 2024, compared to $845,552 in the prior year, reflecting the company's focus on developing its lead product, an abuse deterrent fentanyl transdermal system. The company has entered into a commercial development and clinical supply agreement with Kindeva Drug Delivery for this product, with an estimated cost of $8.1 million and an expected FDA submission timeline of 12 to 18 months.

Nutriband's total assets rose to $13,633,709 as of July 31, 2024, compared to $7,517,154 at the end of January 2024, driven by increased cash reserves and working capital. The company’s accumulated deficit also widened to $(31,583,561) from $(24,339,107) year-over-year.

The company continues to face challenges typical of early-stage enterprises, including undercapitalization and cash shortages, and anticipates ongoing substantial losses as it navigates the complexities of drug development and regulatory approval processes.