Increased SG&A and regulatory costs drove the losses.
Lucy Scientific Discovery Inc. (NASDAQ: LSDI) missed filing its annual reports with the U.S. Securities and Exchange Commission, but the company did give investors a heads-up on the company’s losses.
Lucy Scientific suggested it would be able to file these reports by Oct. 15.
In its latest filing, Lucy said, “We expect to report an operating loss of approximately $5.84 million for the year ended June 30, 2023. This is in comparison to an operating loss of $3.47 million for the year ended June 30, 2022.”
The company attributed the loss to increased selling, general, and administrative expenses as a result of operating as a public company, including expenses related to audit, legal, regulatory, and tax-related services associated with maintaining compliance with SEC rules and exchange-related expenses.
The company also told investors that it expects to report $1 million in noncash expenses related to consulting services and a donation to a foundation for future research for the year ended in June.
Lucy went on to say that it expects to report a net loss of approximately $8.99 million for the year ended June 30, versus a net loss of $5.86 million for 2022. The company attributed it to an increase in operating loss and a loss on a debt settlement.
“We expect to report of approximately $1.18 million for the year ended June 30, 2023, related to the issuance of 613,513 common shares as settlement of trade payables on initial public offering and 461,213 common shares issued as settlement of due to related parties on IPO,” the company said. “These common shares were issued at a 40% discount to IPO resulting in a non-cash loss on debt settlement.”
The company also informed its shareholders that the Nasdaq Marketplace notified Lucy about its share price being under $1 for too long. Lucy has 180 days to rectify the situation or risk delisting.
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