Innocan Pharma revenue skyrockets, but bottom line still in the red

Canada-based tech firm Innocan Pharma Corp. (CSE: INNO) (FSE: IP4) (OTC: INNPF) released audited financial results for 2023 on Monday, affirming that its preliminary results last month were on the mark, with $13.7 million in total revenue for the year but a $4.2 million total comprehensive loss.

Despite being in the red for last year, CEO Iris Bincovich said the company’s growth strategy – including its reliance on subsidiary BI Sky Global Ltd. – “enabled us to exceed our financial targets” for the year.

The company noted in a news release that its revenue was up a whopping 534% year-over-year from the $2.6 million in 2022, while losses were down 61%. Gross profit also skyrocketed by 568% to $12 million for the year, up from $2.1 million the year prior, Innocan reported.

The company also completed a $1.5 million capital raise just last month to help propel it through 2024.

But it also disclosed a $3.9 million negative cash flow for 2023 and an accumulated deficit of over $33 million, which the company said “raise material uncertainties may cast significant doubt upon the Group’s ability to continue as a going concern.”

Operations going forward, the company said, would depend on “proceeds from capital fundraising and future revenues.”

Bincovich also said Innocan is focused on gaining U.S. Food and Drug Administration approval for its CBD-based drug that aims to treat chronic pain.

“We remain committed to our vision. It is definitely an exciting time for Innocan Pharma,” Bincovich said in the release.

As of Dec. 31, Innocan had $6.8 million in total assets, including $3.8 million in cash, against $2.5 million in total current liabilities.