Filament Health revenue slides 94% as cash reserves dwindle

Vancouver-based Filament Health Corp. (OTCQB: FLHLF) (Cboe CA: FH) saw its cash reserves continue to decline as third-quarter revenue plummeted to $19,021, from $337,470 in the same period last year, according to financial results Thursday.

The clinical-stage psychedelic drug development firm ended September with $878,717 in cash and cash equivalents, less than half of the $1.83 million it held at the end of 2023. More concerning, Filament swung to a working capital deficit of $31,520, versus a positive working capital position of $1.15 million at year-end.

“This quarter we continued to grow our position as the premier global supplier of cGMP botanical psilocybin,” CEO Benjamin Lightburn said in a statement, while the company noted in filings it will need additional financing to fund future operations.

The company saw its net loss narrow to $976,419 for the quarter ending Sept. 30, versus $1.31 million in the third quarter of 2023, regulatory filings show.

Operating expenses decreased to $926,923 from $1.7 million in the year-ago period, driven primarily by lower professional fees and marketing costs. Cash used in operating activities reached $1.84 million for the first nine months of 2024. The company tried to shore up its position during the third quarter through a $135,000 private placement and $864,222 from warrant exercises.

Despite the challenges, Filament secured 20 new patents across multiple jurisdictions during the quarter – 12 from IP Australia, five from the Canadian Intellectual Property Office, and three from the U.S. Patent and Trademark Office – tightening protection around its botanical psychedelic drug development platform.

The company continued to advance trials of its lead candidate PEX010 for various indications. In June, Filament received regulatory approvals from Health Canada and the FDA for a Phase II trial studying PEX010 in methamphetamine use disorder, an area CEO Lightburn described as having “significant unmet need for millions of people in North America and globally.”

With an accumulated deficit now reaching $34 million and ongoing negative cash flows from operations, Filament warned it will need to raise additional funds through debt or equity financing.

Filament maintains a dealer’s license from Health Canada and makes money primarily through licensing its drug candidates and IP to clinical partners, along with technical services and consulting fees from its joint venture with Jaguar Health.