Mynd Life Sciences cuts losses, but faces going concern doubts

Mynd Life Sciences cuts losses, but faces going concern doubts

The company is still reeling with negative cash flows and net losses.

Vancouver-based Mynd Life Sciences Inc. (CSE: MYND) (OTC: MYNDF) reported a financial mixed bag the year ended Oct. 31, 2023, as it tries to create a psilocybin drug to treat depression and Alzheimer’s disease.

The medical biotech drug research and development firm’s balance sheet showed a rise in total assets, from C$238,823 in 2022 to C$791,068 in 2023. However, the company’s liabilities also climbed, with current liabilities rising from C$1.6 million in 2022 to C$2.7 million in 2023.

The firm posted a net loss of C$1.5 million, which was down from C$3.6 million in 2022, suggesting some reduction in operational costs or losses. Cash flow from operating activities improved, with outflow falling from C$1.8 million in 2022 to C$198,256 in 2023.

An auditor’s note expressed uncertainty regarding Mynd’s ability to continue as a going concern, primarily due to a dearth of working capital and an accumulated deficit. Regulatory filings state that the firm will seek additional capital to support its research, development, and operational activities.

The shareholders’ deficit rose from C$3.5 million in 2022 to C$4.9 million in 2023.

The company announced in October 2023 the intent to merge with Surrey, British Columbia-based Cava Healthcare. The planned merger, aimed for completion in the third quarter of fiscal year 2024, is expected to “allow for the consolidation of over 40 patents, licenses and patent applications,” the company wrote in filings.

That came after the company in December 2022 purchased all the intellectual rights to treat AD from Cava, which includes all future worldwide rights for the use of psychedelics to treat Alzheimer’s disease and other dementias.

Mynd also announced the formation of Mynd Diagnostics, a new subsidiary focused on developing diagnostic tests for depression and other conditions based on monoclonal antibody biomarkers. The arm is projected to launch late in fiscal year 2024, it said.

Mynd is currently in the preclinical stages to develop a psilocybin-based drug intended to treat major depressive disorder, with activities currently ranging from compound optimization to preparations for initial clinical trials. It will eventually try to file an IND application with Health Canada and the FDA to start human clinical trials.

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