Nutriband Reports 51% Revenue Growth in Q3, Net Loss Decreases

Nutriband Inc. reported its financial results for the third quarter and nine months ended October 31, 2024, revealing a revenue of $645,796 for the quarter, a 51% increase from $427,841 in the same period last year. However, for the nine-month period, revenue decreased slightly to $1,497,158 from $1,560,701 in the prior year. The company incurred a net loss of $1,362,637 for the quarter, compared to a loss of $1,759,946 in the same quarter of 2023. For the nine months, the net loss was $4,966,179, up from $3,604,348 in the previous year, reflecting ongoing challenges in achieving profitability.

The company's total assets increased significantly to $12,543,202 as of October 31, 2024, compared to $7,517,154 at the beginning of the fiscal year. This growth was primarily driven by a substantial increase in cash and cash equivalents, which rose to $5,698,187 from $492,942 at the start of the year. The increase in cash was largely attributed to an $8,400,000 equity financing completed in April 2024, which provided necessary capital for ongoing research and development activities, particularly for its lead product, the Aversa fentanyl transdermal system.

Operationally, Nutriband has focused on its transdermal pharmaceutical products, with a notable increase in research and development expenses, which reached $880,768 for the quarter, up from $551,503 in the prior year. The company has also made strategic moves, including the completion of a contract with Sorrento Therapeutics and the ongoing development of its Aversa product, which is expected to require FDA approval. The company’s employee headcount has increased as it continues to build its capabilities in preparation for future product launches.

Despite the increase in revenue for the quarter, Nutriband's overall financial performance reflects the challenges of transitioning from a development stage to a commercial stage company. The company has indicated that it expects to continue incurring losses as it invests heavily in product development and regulatory approvals. Management remains optimistic about future operations, citing improved cash flow and the potential for increased demand for its products. The company believes it has sufficient funds to support its operations for at least the next twelve months, alleviating some concerns regarding its ability to continue as a going concern.