After the close of the market on March 31, Innocan Pharma Corp., (CSE: INNO), (OTC:INNPF), reported their audited financial result for the year that ends Dec. 31st 2024.
Innocan’s revenue in 2024 was $5.4m, compared to $4.8m in the year before. The earnings, however, fell from $8.6m in the third quarter.
The revenue for 2023 was $13.7 million. In 2018, it increased to $29.4million, an increase of 114.6%. The significant revenue increase was primarily attributed to Innocan’s subsidiary BI Sky Global Ltd. which saw an increase of revenue on online platforms as a result of the addition of more products.
BI manufactures high-performance non CBD beauty and personal care products in the United States. It operates on online marketplaces and plans to grow to include direct-to consumer sales, before settling into physical stores. Innocan is the owner of 60% of BI, and Brandzon Co. Ltd. has 40%.
The company also reported that its operating loss decreased by 67% to $1.2 million in 2024 versus $3.8 in 2023. Cash levels at the company increased to $5 million by the end 2024, compared with $3.8 million in 2023. The company’s working capital was $8,444,000 at the end 2024 compared to $6,207,000 in 2023.
Iris Bincovich, CEO of Bincovich Group said: “This accomplishment reflects the unwavering dedication to excellence and innovation by our team.” “We are focused on moving ahead aggressively on our two pathways, Human & Animal, with the LTP-CDB injection, our non-opioid chronic pain management solution.”
Going Concern
Innocan, despite the improvement in its financial performance, reported a loss total of $262,000 as well as a cash flow negative of $1.5million. The company has a total deficit of $35 million since it was founded. Management plans to remedy these situations by raising more funds and generating higher volumes of revenues.
While the company’s negative cash flows from operations decreased during 2024, it still expects its negative cash flows from operations to significantly increase in the foreseeable future due to an increase in R&D and R&D-related expenses as a result of the start of clinical trials.