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Legal mushroom supplement company Psyched Wellness Ltd. (CSE: PSYC) (OTCQB: PSYCF) quietly released its financial report for the first quarter ending Feb. 29, reported in Canadian dollars. The company reported revenue in the quarter of $62,444 versus last year’s $57,537 for the same time period.

Psyched also reported a net loss of $689,679 in the quarter, which was an improvement over last year’s net loss of $1 million for the same quarter.

At the end of the quarter, the company reported current assets of $6.7 million, including cash and cash equivalents of $5.6 million available to settle current liabilities of $271,044.

Psyched Wellness also reported an accumulated deficit of $23.4 million at the end of February. The company’s financial report stated, “Management believes there is sufficient capital to meet the company’s business obligations for at least the next 12 months, after taking into account expected cash flows, capital commitments, future financings and the cash and cash equivalents position at period-end.”

Zerkalo deal

Since the quarter ended, the company announced that its Chief Commercial Officer Matthew Singh left the company in March.

In April, the company entered into a master services agreement with New York-based Zerkalo LLC for product development, marketing, distribution, and supply chain setup for a product derived from AME-1, the company’s amanita muscaria mushroom product.

Psyched Wellness said it would allocate a budget of $2.25 million in cash towards Zerkalo, payable in 10 quarterly installments of $225,000, to achieve the milestones outlined in the statement of work and issue to Zerkalo an aggregate of 35,066,632 advisory warrants.

Gotham Green

Psyched Wellness did not publish a press release on its earnings, but it did announce that it closed the final tranche of its previously announced non-brokered private placement, effective April 30, for gross proceeds of $2.5 million.

Gotham Green, as part of the investor rights agreement from June 12, 2023, attached to the placement, gets to place someone on the board giving the firm three board members out of a total of seven. Despite the continuing relationship with Gotham, Psyched Wellness noted that Gotham no longer has an exclusive contract with the company as of November 2023.

“Through the completion of Tranche 2B alongside Gotham and our newfound partnership with Justin (Guilbert) and Douglas (Riboud), we are embarking on an exciting chapter for our company,” COO David Shisel said.

Looking ahead

The company outlined its plans for 2024 as follows:

• Focus on direct-to-consumer sales channel and select high-end retailers for the company’s products in the U.S.
• Expand on branding, sales, and marketing efforts for the company’s first product (ongoing)
• Continue R&D projects for additional products
• Complete R&D for formulations of AME-1 with other active compounds
• •Identify joint venture opportunities for white labeling the AME-1 with other brands
• Identify white labeling opportunities for other products with different labels

The post Psyched Wellness reports slightly increased revenue appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Debra Borchardt, KahliBuds, 420GrowLife