Quantum BioPharma Ltd., (NASDAQ:QNTM), (CSE QNTM) and (FRA:0K91), said that it has made progress with its finances in 2024. It is now removing the designation of a going concern as they look to develop their clinical pipelines for alcohol-related disorders and brain disorders.
Financial statements for the year ended December 2023 show that FSD Pharma had a cash balance of $12.1m, which was up $11.1m from its previous financial end date of 2023.
The CEO Zeeshan Saeed made a public statement that said: “Our pipeline is focusing on the unmet needs of brain disorders, alcohol issues and other areas. Three near-term monetization opportunities are planned.”
Operating expenses dropped 32%, from 23.8 million dollars in 2023, to $16.1 millions in 2024. The net cash flow used for operations decreased to $6.9million, which is a 36% reduction from the $10.8million in the previous year.
Company has achieved significant progress with “unbuzzd”, its alcohol detoxification treatment, after completing a double blind, randomized and placebo controlled clinical trial. Saeed said that the study results revealed “unbuzzd significantly and rapidly decreased blood alcohol concentration” in participants. The reduction rate was 40% higher than control subjects within 30 minutes.
Quantum BioPharma holds a 25,71 percent ownership stake of Celly Nutrition Corp. that sells unbuzzd. This agreement stipulates that royalty payments will be 7% until the payments total $250 million. After this, they drop to 3% per annum. Celly disclosed it had engaged a New York-based investment bank to investigate a possible IPO.
Quantum also made progress in its pharmaceutical pipeline, as Lucid-21-302, the company’s multiple sclerosis treatment, completed a Phase I trial. Safety review committee concluded that the drug was “well tolerated with no safety concerns” and Quantum is now preparing an FDA submission by 2025.
All of this is a significant turnaround for the firm, which underwent a major change last year. While still trading as FSD Pharma in August of last year, the company changed its name and consolidated its shares so that it could comply with Nasdaq’s requirement for a minimum bid price. Stocks of the company were trading for around 20 cents each at that time.
Also, the company purchased Bitcoins and other crypto-currencies worth $3.5 Million. Quantum BioPharma says it believes that it is in a position to sustain its basic operations “well beyond January 2027.”
The net loss in 2024 has decreased by 18% from $18,2 million.