Zelira Therapeutics absorbed a A$30.7m impairment charge during the first half of the financial year, pushing its total losses to A$34m.
The company, which is pursuing a listing with the US Food and Drug Administration (FDA) for its Hope autism product, determined that goodwill should be removed from its financial statement because future revenue "relies on a number of long term and subjective assumptions".
Over the six months ending December, revenue dropped 29% to A$54,723, while losses surged 941% owing to the impairment charge. Net cash outflows came in at A$1.7m.
Zelira has secured US$11.85m of a targeted US$35m capital raise intended to fund clinical trials of Hope.
ECS Botanics
ECS Botanics posted a net profit after tax of A$1.2 million in H1 FY24, a sharp turnaround from the A$1.4m loss recorded in H1 FY23.
The result came off the back of a record half-year period in which trading revenue reached $11.3m, a 66% increase on H1 FY23.
The company said it remains well funded, holding a cash balance of $2.6m as at December 31 2023, alongside an undrawn NAB facility of $2m.
Last week, ECS announced it had raised $4m from new and existing shareholders to support expansion of its growing capacity and its vertically integrated business model.
Managing director Nan-Maree Schoerie said: "ECS is now seeing the benefits of our capital light-business model and our ability to effectively build scale into our operations."
Little Green Pharma
Little Green Pharma has dispatched its first consignment of LGP-branded, high-THC Desert Flame flower products to Poland, where they will be distributed by local partner Medezin.
The shipment arrives more than three years after LGP first entered the approval process with Poland's health regulator.
The company noted that Poland is currently supplied by fewer than 10 operators, most of them based in North America, making LGP the first Australian company to enter that market.
It added: "With a population of 38 million, an import-only supply regime, GP prescribing capability, no restrictions on the conditions treatable with cannabis, and a predicted compound annual growth rate of 16%, LGP regards Poland as a highly prospective new medicinal cannabis market in Europe alongside France and Italy."
Ecofibre
Impairment charges of nearly $39m pushed Ecofibre's first-half losses to almost $45.7m.
EBITDA narrowed from $8.6m to $5m, with write-downs covering goodwill ($27m), property ($8.7m), and equipment and inventory ($3m) driving the deepened losses.
Normalised EBITDA improved across both its Hemp Black and Ananda Health divisions, supported by a 34% reduction in operating costs.
Revenue in the six months to December fell 18% to $12.7m, affected by a temporary destocking of biomedical yarn by a major customer, subdued conditions in the US CBD market, and the sale of its food and pet business, Ananda Food, to Elixinol.
As at January 31, the company held available cash of $5.9m in its core business and $3.8m in EOF Bio, a subsidiary holding exclusive rights to commercialise intellectual property developed by Ecofibre and the University of Newcastle for use of hemp extract across a range of conditions.
Ecofibre divested a 15% stake in EOF Bio for $5m in January.
Neurotech International
Neurotech International recorded a loss of A$729,000 in the six months to December, a 79% improvement compared to the equivalent period in the prior financial year.
The clinical-stage, pre-revenue biotech — which is trialling a cannabinoid drug for autism spectrum disorder — received a $3.17m research and development grant during the period.
Stripping out the R&D grant, the company reported a net operating deficit of $3.9m.
Available cash stood at A$4.5m at the end of January.
Neurotech received Human Research Ethics Committee (HREC) approval earlier this month to extend a Phase I/II clinical trial of its NTI164 cannabinoid drug candidate by a further 52 weeks.
Elixinol Wellness
Elixinol Wellness reported reduced losses in FY23 and forecast it would reach earnings breakeven by mid-2024.
The company posted a loss after tax of $7.5m for the 12 months to December, a 29% improvement on FY22.
Earnings before interest and tax improved 46% to $4.6m.
Group revenue for the period grew 17% to $8.3m, aided by a 66% increase from its Australian division in the first half, which from August included The Sustainable Nutrition Group.
Chief executive Ron Dufficy said: "We are pleased to report a significantly improved adjusted EBITDA for the eighth consecutive half year reporting period.
"With strong revenue growth and a continued focus on cost containment the company remains on track to achieve breakeven EBITDA by mid CY24."
The company, which is close to finalising the acquisition of Ananda Food from Ecofibre, is currently seeking to raise $3.16m via an entitlement offer.
Emyria
Emyria posted a half-year loss of A$10.79 million, up 172% from $3.97m in H1 FY23, while revenue climbed 49% from $732k to $1.09m.
The company closed the period with cash and cash equivalents of $1.97m, down from $2.72m at December 31, 2022.
In January, Emyria received a $2.53m government rebate for R&D activity conducted in FY23, and a Radium Capital loan that had been secured against that refund was repaid in full.
