Wellbeing Digital Sciences Announces Third Quarter Financial Results

VANCOUVER, British Columbia, June 16, 2022 (GLOBE NEWSWIRE) — Wellness Digital Sciences Inc. (“Welfare“or the”Company”) (NEO: MEDI) (OTC: KONEF) (FRA: SQ2), an evidence-based mental health care company focused on the development and implementation of innovative clinical solutions, including psychedelic medicine and digital therapies supported by clinical research, that it filed its unaudited financial results for the third quarter ending April 30, 2022 and provided an update on its activities.

“2022 will be a foundational year that will set the stage for Wellbeing to execute its strategy going forward,” said Najla Guthrie, Managing Director of Wellbeing. “We are focused on developing and expanding our management team, completing additional clinical and digital acquisitions, and evaluating strategic capital markets opportunities to create shareholder value. As we build on the three fundamental pillars of our success, drug development, digital therapy and our North American clinical network, we are focused on developing and implementing effective mental health therapies for a grassroots growing number of patients.

Company updates during and after Q4 2021:
Appointment of Terry Zimaro as Chief Financial Officer – Mr. Zimaro is a Chartered Professional Accountant who brings over 20 years of experience in public and private companies across a wide range of finance functions, particularly specializing in high growth environments, across various industries including psychedelics. It has enabled companies to maximize profitability, operational efficiency and enterprise value. Terry joins our team at an exciting time for the Society. His extensive financial experience, combined with his strong leadership skills will allow him to have an immediate impact on our business. As Chief Financial Officer, Terry is another key strategic addition to our team and we look forward to seeing his impact on the company’s business strategy and growth opportunities.

Founding member of the Women in Psychedelics Network – The formation of WIP aims to have a long-term impact on the psychedelic space, bringing together a diverse group of women in this space and to be a voice for all women in the future regarding their developments, their achievements and their challenges. Sharing information, expertise, and collaboration are some of the many things that the founders of WIP believe will help advocate for and represent women who are part of the psychedelic medicine industry. WIP will seek to recruit health representatives, scientists and business leaders, as well as sponsorships from companies that may not be run by women but support WIP.

Welcome Dr. Ho as the new Medical Director of MindScape – Since Wellbeing purchased MindScape on April 21, 2021, the clinic has administered more than 600 low-dose ketamine infusions to patients, which the company considers a milestone. Wellness is evaluating the addition of complementary mental health services offered to the clinic’s patients. The company has also recently implemented a new marketing strategy and intends to expand the local patient base by connecting with area mental health practitioners who have recognized the potential for offsite use. MA of ketamine in the treatment of mood disorders. Ketamine appears to have antidepressant and antisuicidal effects, and according to recent studies, the potential for ketamine to treat mood disorders like bipolar is considered quite promising.

Financial Highlights (all amounts are in Canadian dollars unless otherwise indicated)

  • Revenues for the nine-month quarter ended April 30, 2022 reached $5,280,640, compared to $nil for the same prior year period, primarily due to the transition from an investment issuer to a corporate single-purpose business focused on consolidating clinics and becoming a North American leader in mental health treatment;
  • Gross loss for the quarter ended April 30, 2022 was $150,648 compared to $nil for the same prior year period due to cost of goods sold slightly higher than sales for the period of nine month ended;
  • Net loss for the quarter ended April 30, 2022 was $21,149,109, compared to net loss of $4,905,255 reported for the same prior year period, primarily due to share-based payments from $13,945,132 (2021 – $2,087,678), general and administrative expenses of $1,575,930 (2021 – $41,521), marketing expenses of $1,522,853 (2021 – $nil) and professional fees of 2 $225,604 (2021 – $328,806).
  • Total assets for the quarter ended April 30, 2022 decreased by 19% to $17,714,820 from $21,921,195 for the year ended July 31, 2021 primarily due to a decrease in cash and cash equivalents and the amortization of certain non-current assets.

The full set of consolidated financial statements and MD&A can be viewed by visiting its profile page on SEDAR at www.sedar.com.

About the digital science of wellbeing
Wellbeing Digital Sciences Inc. is an evidence-based mental health care company focused on the development and implementation of innovative clinical treatment solutions, including psychedelic medicine and digital therapy, supported by clinical research. Its mission is supported by a network of North American clinics that provide cutting-edge therapies and other types of treatment to patients, as well as a contract research organization that offers clinical trial services to clients pursuing drug development. For more information, please visit digitalwellness.co.

Behalf:

Najla Guthrie
Chief executive officer
DIGITAL SCIENCES OF WELL-BEING

For more information, please contact:
Nathalie Dauphin
Vice President of Marketing and Investment Relations
Email: [email protected]
Twitter: @Wellbeing_IR

Notice regarding forward-looking information:

This press release contains forward-looking statements, including, but not limited to, statements regarding the Company’s business, assets or investments, and other statements that are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous known and unknown assumptions, risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not be achieved, which may cause performance and results in future periods to differ materially from any estimate or projection of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and of the financial markets in particular, the interest of investors in the activities and the prospects of the Company.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless the applicable securities law requires it. Further, the Company assumes no obligation to comment on expectations or statements made by third parties regarding the matters discussed above.

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