Wed, May 15, 11:57 AM (220 days ago)
NovAccess Global Inc.'s Q2 2024 financial report shows a decrease in working capital deficit from $7.8M to $6.85M. The company reported no revenue for the quarter, mirroring the previous year. Operating expenses decreased significantly due to lower SG&A costs, primarily from reduced stock-based compensation and consulting fees. Despite this, the company posted a net loss of $492K, a stark contrast to the $410K net income in Q2 2023, mainly due to a $2.1M decrease in gain on derivative liabilities. For the six months ended March 31, 2024, NovAccess reported a net income of $811K, compared to a $2.2M loss in the same period in 2023, driven by a $1.9M increase in other income and reduced SG&A costs. The company’s cash flow from operations improved, though it still faced liquidity challenges, necessitating additional financing to sustain operations and fund FDA applications. Significant uncertainties remain, including the completion of a $10.68M transaction with Sumner Global LLC, which is critical for future operations. The company continues to rely heavily on raising additional funds and managing its convertible debt obligations.