Mind Medicine Inc. (NEO: MMED), more commonly known as MindMed, announced on Thursday its financial results for Q2 2022. The biotech company ended the quarter with an incurred net loss of US$17.0 million compared to a loss of US$45.3 million in Q2 2021.
The quarter’s net loss translates to US$0.04 loss per share. This came from incurring a total of US$16.9 million in operating expenses, a decline from last year’s US$45.2 million. This huge drop is driven by general and administrative expenses falling to US$7.6 million from its year-ago counterpart of US$37.1 million–this is “primarily due to US$24.4 million in additional non-cash stock based compensation expenses related to the modification of stock option awards and restricted stock units.”
Operating cash generated for the quarter came in at US$28.0 million for the first six months of the year compared to US$21.2 million for the same period in 2021.
“Our goal is to continue to be prudent with how we manage our cash and our expenses,” said newly-installed CFO Schond Greenway on the earnings call. “And we believe that our cash and cash equivalents will be sufficient to meet our operating requirements beyond our key development milestone in 2023 and into 2024, which is well above 18-months of cash runway based on our current budget.”
The firm increased saw cash and cash equivalents balance fall to US$105.7 million from the beginning balance of US$133.5 million at the start of the year, mostly due to the net comprehensive loss incurred during the first half.
Last week, the company’s board approved a reverse share split for a ratio of 1-for-15. The move is expected to take effect on August 26 with the consolidated shares starting to trade on both Nasdaq and Neo exchanges on August 29. The announcement of the split led co-founder and former Chief Medical officer Dr Scott Freeman to move into an activist investor role, demanding changes.
Mind Medicine Inc. last traded at $0.80 on the NEO.
Information for this briefing was found via Edgar and MindMed. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.