MYM Nutraceuticals Posts No Q1 Revenues, Spends $1.45 Million on Advertising

MYM Nutraceuticals (CSE: MYM) filed its first quarter 2020 financials this afternoon, indicating that it has failed to generate any revenues as of yet despite numerous deals currently underway. The firm recognized a net loss of $4.36 million for the quarter.

MYM Nutraceuticals Logo

Despite the lack of revenues, MYM was not shy when it comes to expenses. The issuer spent $1.45 million on advertising and communications over the course of the quarter, which is curious given the absolute lack of sales that it posted. General and administrative expenses was only slightly higher, at $1.61 million. Salaries made up the bulk of G&A expenses, at $0.78 million, followed by travel at $0.32 million.

Related party transactions during the quarter totaled $1.11 million out of the total $4.14 million in expenses. The break down consists of $0.59 million in stock based compensation, while $0.52 million was in the form of salaries, benefits, and management fees expensed during the three month period.

Looking to the balance sheet, the firm posted a cash position of $2.28 million, on total assets of $19.87 million. Accounts receivable amounted to $3.01 million, which largely consists of $2.5 million due from the rescission of the BioHemp transaction. $0.2 million is also due from suppliers for returned inventory. Total current inventories totaled $0.05 million.

Current payables amount to $0.68 million, with total current liabilities sitting at $3.34 million, of which the majority is a secured loan related to the purchase of BioHemp. A long term lease liability of $0.28 million brings total liabilities for MYM Nutraceuticals to $3.62 million.

In terms of operational advancements, MYM is currently working towards obtaining a cultivation license at its Laval, Quebec facility known as Sublime. A recent update from the firm indicated that they are nearing licensing with Health Canada. Other ventures however have not seen as much progress, with the previously announced Weedon facility complex currently in search of either a sale or joint venture partner.

It’s Nevada operations with Elite Ventures, whom is partially owned by Crop Infrastructure Corp (CSE: CROP), has not faired much better either, with this years harvest stated to be failed. Nevertheless, MYM indicated within today’s financial release that it is “exploring various options to expand the scope of its partnership with Elite Ventures.”

In late September, MYM announced that it is refocusing its operations, to place a larger emphasis on producing hemp and cannabis extracts for global consumption.

MYM Nutraceuticals is currently trading at $0.205 on the Canadian Securities Exchange.

Information for this briefing was found via Sedar and MYM Nutraceuticals Inc. 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.