THC Therapeutics, Inc. reported its financial results for the three and nine months ended April 30, 2024, highlighting significant changes in revenue, expenses, and overall financial performance compared to the previous fiscal period.

For the three months ended April 30, 2024, THC Therapeutics recorded total operating expenses of $379,698, a substantial increase from $58,020 in the same period of 2023, marking a 554% rise. This increase was primarily driven by higher professional fees and salaries, which rose by $140,756 and $175,063, respectively. Despite these rising costs, the company reported a net income of $104,622, up from $94,355 in the prior year, reflecting an 11% increase. Notably, no revenue was generated during this period.

In the nine-month period ending April 30, 2024, THC Therapeutics experienced a net loss of $529,838, compared to a loss of $354,095 for the same period in 2023, representing a 50% increase in losses. Operating losses also increased to $520,067 from $439,261 year-over-year. The company reported total other income of $(9,771) for the nine months, a significant decline from $85,166 in the previous year, largely due to a decrease in gains on derivative liabilities, which fell from $142,268 to $47,616.

Cash flow analysis revealed that net cash used in operating activities for the nine months ended April 30, 2024, was $(182,459), compared to $(85,385) in the prior year. However, cash flows from financing activities improved, totaling $183,298, up from $85,368 in the previous year. The company ended the period with cash and cash equivalents of $849, a notable increase from $10 as of July 31, 2023.

Strategically, THC Therapeutics continues to focus on the development of its flagship product, the dHydronator®, a sanitizing herb dryer designed to significantly reduce drying time for cannabis. The company has acquired exclusive intellectual property rights for this product and is seeking to raise at least $2 million to further its development. As of April 30, 2024, THC Therapeutics had 40,266,149 shares of common stock outstanding, reflecting an increase from 34,146,149 shares as of July 31, 2023.

The company has faced ongoing legal challenges, including a settlement agreement reached with Iliad Research and Trading, L.P. in January 2024, resolving disputes related to a promissory note. Despite these challenges, THC Therapeutics remains focused on its product development and financing strategies to address its cash flow deficits.