Elixinol Wellness reported improved revenue in the second quarter of its financial year as it reassured the ASX over its financial future.
Following a weaker-than-expected first quarter, group revenue in the three months to June climbed to A$4.1 million, almost 11% higher than the previous corresponding period and up from $3.5m in Q1.
The performance took Elixinol’s unaudited half year revenue to $7.6m, a rise of 12% on H1 FY24.
However, the company said the soft first quarter and a “still-challenging retail environment continue to weigh heavily on the top line”.
Elixinol reported a net cash operating deficit in Q2 of $757,000 and $1.4m for the half year.
With only $1.25m of available cash – less than two quarters worth of funding based on its current financial performance – the firm faced questions from the ASX over its future financing.
In response, Elixinol said it expects net operating outflows to reduce during the second half of the year, with margins and EBITDA expected to improve.
The firm also said it has access to additional financing through e-commerce working capital funding and other facilities “to be re-drawn as required”.
“The group remains focused on achieving sustained profitability through margin-accretive revenue growth, disciplined cost control and enhanced capital management,” it added.
Elixinol operates health brands The Healthy Chef, Hemp Foods Australia, Ananda/Soul Seeds and The Australian Superfood Co.
The company is planning to consolidate Soul Seeds into Hemp Foods Australia in a move to simplify its portfolio and “strengthen brand focus”.
Neurotech International
Biopharmaceutical firm Neurotech International, which is pursuing drug registration for the treatment of paediatric neurological conditions, has placed two subsidiaries into voluntary liquidation in a move to focus efforts on its flagship projects.
AAT Medical and AAT Research managed the company’s neurofeedback device, Mente, which helped relax the minds of children suffering autism spectrum disorder.
But following a decision last year to divest or wind back the operations, they have now been placed in administration.
NTI said the original decision had been a “difficult one, having regard the very small number of children using the device to date”.
In its quarterly update to the ASX last week, NTI said the decision to wind up the subsidiaries is designed “to focus all of the company’s resources and capital on NTI164”, a reference to its full spectrum plant extract to treat symptoms of paediatric neurological and inflammatory brain disorders.
NTI previously said that NTI164 “would be more likely to have a greater impact on the lives of children with autism”.
Meanwhile, the company reported new cash operating outflows of A$2.6m in the three months ending June, the majority associated with research and development costs.
It took the 12-month R&D expenditure to more than $10m.
The company closed the quarter with cash and cash equivalents of $3m. It said it expects the operating cash deficit to narrow in Q1 FY26, while an R&D tax rebate of approximately $3m will also bolster its financial position.