Avecho Biotechnology posted a 41% decline in revenue from ordinary activities to A$446k for the half year ending June 30, 2023, while losses surged 174% to $2.13m.
Research and development tax incentives and other income rose 32% to $403k, while expenses from continuing operations jumped 74% to $2.85m.
The company attributed this increase "largely due" to higher research and development costs of $1.11m and administrative expenses of $1.73m.
The uptick in R&D spending came as the company entered a phase III clinical trial during the period, designed to evaluate its proprietary CBD soft-gel capsule as a treatment for insomnia.
At June 30, 2023, the consolidated entity held $2.87m in cash and cash equivalents, compared with $1.47m at the close of December 2022.
Last month, Avecho raised $6m through a share placement, bringing the total from its recent funding round to $8m. The capital raise launched in April initially attracted $2m of a targeted $11m.
The proceeds will fund the insomnia trial, which will compare nightly CBD doses of 75mg and 150mg against a placebo.
Wellnex Life
Wellnex Life grew sales to A$27.9 million in FY23, achieving more than 50% growth for the second consecutive year. The firm's EBITDA loss held steady with FY22 at $6.8m, and total assets stood at $15m as at June 30, 2023.
CEO George Karafotias said: "FY23 has been a year of investment growth across the whole business and has set the foundations for strong financial performance and growth in FY24 and beyond.
"Our primary focus… is to grow gross margin while maintaining operational expenses at current levels to drive Wellnex to profitability during FY24."
In May, Wellnex entered into a binding agreement to acquire topical pain relief brand Pain Away Australia for $22m. At the time, Karafotias described the move as "perfectly aligned" to the firm's medicinal cannabis strategy and focus on pain relief.
The transaction is expected to settle this month.
Zelira Therapeutics
Zelira Therapeutics recorded an after-tax loss of A$6.27 million for the year ended June 30, 2023, nearly 50% narrower than the $12.41m loss posted in FY22.
The firm attributed the result to research and development activities, along with employee and administration costs. Net cash outflow from operating activities came to $7.25m, a 23% decrease from FY22's $9.43m.
In March, Zelira drew $1.77m from US-based investors through a placement. The capital added working capital to support the firm's 'multiple shots on goal' strategy of advancing its proprietary formulas through formal US Food and Drug Administration clinical trials.
The company closed the financial year with cash and cash equivalents of $146k, down from $2.75m at the end of FY22.
Emyria
Emyria has received A$2 million in firm bids from new and existing sophisticated investors as part of a placement, and has announced a non-renounceable entitlement offer of approximately $3.1m.
The capital will go toward the firm's mental healthcare strategy, with a particular emphasis on new drug development and supporting Australians affected by severe PTSD.
It told the ASX: "Our near-term focus is on leveraging our multidisciplinary team and fit-for-purpose facilities to deliver MDMA-assisted therapy, a modality currently showing promise in Phase III clinical trials for PTSD."
Botanix Pharmaceuticals
Botanix Pharmaceuticals recorded an after-tax loss of A$9.39 million for the year ended June 30, 2023, roughly 30% lower than the $13.36m loss in FY22.
The company linked the loss to research and development activities and costs tied to its Sofpironium Bromide formulation, which targets the treatment of excessive sweating.
At June 30, 2023, the group carried a cash balance of $10.25m, up from $7.29m at the end of the previous financial year.
MGC Pharmaceuticals
MGC Pharmaceuticals posted revenue of A$3.39 million in FY23, a 28% decline from $4.73m the year prior.
The company attributed the drop primarily to regulatory changes in Australia, while maintaining that "2023 delivered a year of great productivity and significant business growth for the company's innovative medicinal products", with sales of $1.91m compared to $1.55m in FY22.
Its CannEpil medicine, developed for drug-resistant epilepsy, is now accessible in the UK via Named Patient Request and has been dispensed to its first patient through the I am Billy Foundation.
Annual losses widened to $21.13m, a 23% increase on the prior year's $17.14m.
AusCann
AusCann recorded a loss of A$1 million in FY23, a period in which it moved to advance its strategic alliance with Perth-based Eurocann.
That compares with a loss of more than $26m the prior year, which was heavily influenced by one-off impairment costs of $15.4m and a $3.9m impairment of investing properties.
The company generated FY23 revenue of $2.3m, a 10% increase on FY22, derived entirely from government grants of $1.3m together with rental and interest income.
Sales revenue was zero after the company had previously halted production of its Neuvis hard-shell capsules due to high manufacturing costs.
More competitive production options identified during the year will now allow AusCann to "explore opportunities to realise value in Neuvis", the company said.
AusCann acquired stock valued at $2.2m under its arrangement with Eurocann and has become the exclusive distributor of a range of flower and oil products from HAPA Pharma, Eurocann's wholly-owned, German-based cultivator and manufacturer.
Epsilon Healthcare
Epsilon Healthcare shares fell a further 13% on Monday following an interim financial report that disclosed a working capital deficit of A$2.6 million and net cash operating expenditure of close to $500,000.
The company, which announced last week that it was exiting the cultivation business to concentrate on manufacturing and clinic operations, reported a narrowed loss of $717,000 for the six months to June 30, down from $8.08m in the prior corresponding period.
The improvement reflected the absence of impairment charges that had weighed on the prior period, alongside tighter cost control, the firm said.
Revenue during the period edged up 3% to $3.3m as output at its Southport facility "continues to ramp up from domestic clients".
The positive headline figure did little to obscure Epsilon's underlying pressures, with an independent auditor flagging material uncertainty around the company.
Beyond the loss and cash outflows, the company carried a working capital deficiency of $2.6m and held only $301,000 in cash at bank.
Despite this, Epsilon took an optimistic stance.
"Notwithstanding this, the directors believe the group will be able to pay its debts as and when they fall and to fund near-term activities from operating cash flows," the firm said. "If necessary, recourse could be made to loan and/or equity funds."
Epsilon shares are trading at $0.02c.
Melodiol Global Health
Melodiol Global Health posted a loss of A$28.2 million for the six months to June 30, compared with $7m in the same period last year, with impairment costs of $10.4m, additional finance costs of $5m and employee benefit expenses of $4m contributing to the deepened deficit.
Revenue climbed 62% to nearly $7m, but non-cash impairment costs tied to Sierra Sage Herbs — a division the company is looking to offload — and Health House UK dragged on the bottom line.
At the end of June, Melodiol carried a cash balance of $1.1m and net assets of $9m, down considerably from $22.3m at the end of December.
Net cash used in operating activities over the six-month period edged down to $5.8m.
Separately, its Australian arm, Health House International, generated $2.8m in revenue while contributing $124,000 to the overall loss, Melodiol said.
The company said expenditure linked to non-operating items — including finance and mergers and acquisitions costs — will decline over time, placing the business in a stronger financial position.
Commenting on revenue growth, chief executive William Lay said the trajectories of recreational arm Mernova Medical and Health House were encouraging.
"The momentum from our core operating divisions is evident through both our half-year results and the company's latest announcements… which highlight that positive revenue and earnings trends have continued into the September quarter," he said.
Bioxyne
ASX-listed Bioxyne, the subject of a reverse takeover by Breathe Life Sciences (BLS) in May, reported an after-tax loss of nearly A$2m in FY23 on revenues of $5.2m.
Under the applicable accounting methodology, the results cover 12 months of BLS trading and one month of Bioxyne trading.
In FY22, Bioxyne as a standalone entity generated revenue of $2.4m and recorded a loss of $237,000.
Net cash used in operating activities in FY23 reached $1.1m, with the combined group holding available cash of $3.8m at the close of June.
The company said costs tied to repositioning the business following the acquisition have "weighted on the result", including non-cash share-based payments of $697,000 for services provided by employees and consultants.
Bioxyne shares jumped 45% on Monday to $0.016c.
