PharmaCyte Biotech Reports Significant Turnaround in Net Income, Reduces Operating Expenses in Q2 2024

PharmaCyte Biotech, Inc. reported its financial results for the three months ended July 31, 2024, revealing significant changes compared to the same period in 2023. The company, which focuses on developing cellular therapies for cancer using its proprietary Cell-in-a-Box® technology, recorded no revenue for both periods. However, total operating expenses decreased to $1,268,887 from $2,075,326, primarily due to reduced general and administrative costs, including a notable decrease in warrant issuance costs.

The company experienced a substantial turnaround in net income, reporting a profit of $23,421,355 for the quarter, compared to a net loss of $(3,183,297) in the prior year. This improvement was driven by a significant increase in other income, which totaled $24,690,242, up from a loss of $(1,107,971) in the previous year. The current quarter's other income included a gain on a related party investment of $21,395,734, contrasting with the previous year's losses from changes in fair value liabilities.

PharmaCyte's cash and cash equivalents decreased to $32,635,092 as of July 31, 2024, down from $50,179,968 at the end of April 2024. The decline in cash was attributed to several factors, including the redemption of preferred stock ($9.4 million), repurchase of common stock ($0.7 million), and a $7 million investment in TNF Pharmaceuticals, Inc. The company reported a net cash used in operating activities of $(373,297), a shift from a positive cash flow of $342,959 in the same quarter of 2023.

The company’s total assets increased to $70,194,434, up from $59,903,883, while total liabilities decreased to $17,152,950 from $20,389,264. Total stockholders' equity rose significantly to $47,708,370, compared to $27,647,603 in the previous quarter.

Strategically, PharmaCyte has curtailed spending on pre-clinical and clinical activities pending a review by its Business Review Committee. The company is also addressing a clinical hold placed by the FDA on its Investigational New Drug application for locally advanced pancreatic cancer, which requires additional studies and data.

In terms of capital management, PharmaCyte has been active in share repurchase programs, having repurchased 320,346 shares at a cost of $749,600 during the quarter. The company continues to explore options for raising additional capital to support its ongoing projects and operational needs.