Plantable Health Inc. Reports Second Quarter Financial Results
New York, New York--(Newsfile Corp. - August 9, 2022) - Plantable Health Inc. (NEO: PLBL) (OTCQB: PLBLF) ("Plantable" or the "Company"), a clinically supported dietary intervention program to reverse and prevent chronic disease, today reported the Company's financial results for the second quarter ended June 30, 2022.
"When we founded Plantable, the concept of having a turnkey solution that reversed diet-related chronic disease, paid for by the insurer, was novel. We were very early," said Nadja Pinnavaia Ph.D., CEO of Plantable. "While it is still early days, progressive health insurers and self-insured corporates (the payers) are now beginning to understand and accept the value of Food as Medicine as a solution to lower exploding costs pertaining to chronic disease. We are seeing new companies come to market with high valuations without any proven clinical evidence of their efficacy. Plantable is ahead of the competition in its clinical grounding and its exceptional results. There is a huge opportunity for Plantable, now. The timing is right and we are actively pursuing it."
Summary of Financial Performance for Q2 2022
|Three months ended June 30||Q2 2022||Q2 2021|
|Basic and diluted loss per share||$0.02||$0.08|
|Weighted average number of Common shares outstanding||63,250,000||36,632,423|
- Revenue in Q2 2022 increased 14% to $308,864 in Q2 2022, compared to $271,790 in the same quarter last year primarily; driven by especially strong new Reboot growth in May and June (+109% and +126% respectively), compared to the same period last year. Q2 2022 revenues were 28% lower than Q1 2022, which is in line with seasonality shifts (2021 - 30%).
- Cost of sales was $224,423 in Q2 2022 compared to $185,144 in Q2 2021, representing an increase of $39,279. The year-over-year increase was driven by higher food input prices as well as significantly higher shipping expenses. Given the magnitude of the current inflationary environment, management is pleased that cost of sales have remained in line with Q1 2022. The Company continues to manage costs carefully, seeking ways to reduce cost of sales wherever possible to offset rising input prices and increases in labor costs.
- Percentage gross margin was 27% of revenue in Q2 2022, compared to 32% in Q2 2021.
- Operating expense was $888,628, of which $593,624 were expenses attributable to the Operating company, with the balance ($295,004) incurred by the public company including share-based payments of $131,389 in Q2 2022; compared to $3,079,610 in Q2 2021. Operating expenses declined by $113,827 compared to Q1 2022, driven in part by a 25% reduction in the paid media marketing spend and a significant reduction in investor relations marketing given the capital market environment.
Liquidity and Capital Resources
As of June 30, 2022, the Company had cash on deposit in the amount of $1,622,456, accounts receivable of $19,859, prepaid expenses of $92,986, and inventory of $108,395 compared to cash on deposit in the amount of $3,321,966, accounts receivable of $120, prepaid expenses of $285,885 and inventory of $73,342 at December 31, 2021.
The working capital position of the Company as of June 30, 2022, was $1,716,375 compared to $3,124,532 on December 31, 2021. The Company's major source of capital during Fiscal 2021 was the IPO transaction. Going forward the Company will rely on growth from operations as well as possible future financings to fund its activities.
Net assets of the Company were $1,707,556 as of June 30, 2022, compared to $3,173,249 on December 31, 2021. On June 30, 2022, the Company had a related party loan payable of $105,995 which bears interest at 4%. The loan is to be fully repaid by December 30, 2025. There are no other long-term debt instruments as of June 30, 2022.
Q2 2022 Operational and Corporate Strategy Update
In 2022, the Company's strategic focus was to strengthen and expand the direct-to-consumer business by resetting the base marketing foundations. During the three-month period ended June 30, 2022, Plantable, in line with its strategy, completed the segmented new website, developed new ad creatives, transitioned to HubSpot (an integrated marketing and content management platform), and completed the build-out of the analytics platform. Today, Plantable has clear metrics data for analysis and for future optimized growth.
While top-line growth increased by a modest amount, new Reboot customer acquisition increased by 72% in Q2 2022, with continued excellent weight loss results and clinical outcomes for those clients. The direct-to-consumer market today remains challenging, cluttered with a plethora of companies in health & wellness, weight loss and healthy meal delivery, with customer acquisition costs rising substantially with those same companies competing for the same impressions on paid media search and social media platforms.
In this cluttered world, Plantable remains unique as a clinically-supported and cost effective turnkey program for the proven radical transformation in health, including the reversal of metabo-related chronic conditions causing diabetes, pre-diabetes, cardiovascular disease and obesity.
With Plantable's clinical trials coming to completion starting Q4 2022, and the early adoption of Food as Medicine by payers and providers, in late Q2 2022 and into Q3 2022, the Company has begun to reallocate budgeted resources from B2C paid media towards accelerating the development of the B2B and B2B2C market - anticipating its strategic plan for that market by 6 months.
On June 1, 2022, Plantable finalized its senior management team with the hiring of James (Jim) Wachtel as Chief Growth Officer. Jim brings 25 years of institutional sales leadership to Plantable, with the last 15 years focused on health risk management across self-funded employers, brokers, consultants, health plans and payers. Since starting, Jim has been developing strategic partnerships across institutions (payers and providers), accelerating Plantable's presence in the B2B and B2B2C market, with a clear vision of being the leader in Food as Medicine. The successful conclusion of the clinical trials places Plantable 2-3 years ahead of the competition in the Food as Medicine category, with huge upside opportunity given both the cost and clinical efficacy of Plantable's programs compared with the competition, including certain digital health providers.
Plantable has further future trials in the pipeline, in addition to its current ongoing trials, with prominent hospital systems for conditions including diabetes, obesity, and depression. Furthermore, the Company has been selected to participate in a controlled clinical trial with a leading pharmaceutical company, to evaluate the improved clinical efficacy of Plantable, as a dietary intervention, alongside the pharmaceutical intervention. The Company will be pursuing further opportunities with progressive drug companies for Plantable to be prescribed alongside certain pharmaceutical drugs, with the goal of improved health and quality of life outcomes versus the drug alone.
The management's discussion and analysis for the period and the accompanying financial statements and notes will be available under the Company's profile on SEDAR at www.sedar.com and will be furnished on a Report on Form 6-K on EDGAR at www.sec.gov.
The quarter-end consolidated interim financial statements were prepared in accordance with the International Accounting Standards ("IAS") 34, Interim Financial Reporting, under International Financial Reporting Standards ("IFRS"). All amounts herein are expressed in United States dollars (the Company's functional currency) unless otherwise indicated.
About Plantable Health Inc.
Plantable is a clinically supported, lifestyle intervention program that combines behavioral psychology, neuroscience, and nutritional science to transform health and wellness. Plantable drives healthy weight loss and an improvement in health, and well-being through effective behavior change. Plantable's efficacy is predicated upon the scientific foundation of plant-based nutrition, personalized coaching support and lifestyle educational tools to empower people to change their dietary habits. To view the Company's products and become a customer, please visit plantable.com or click the link here: https://plantable.com.
If you are interested in investing in the Company and would like more information, click the link here: http://invest-plantable.com
Become a part of the Plantable investor community on WhatsApp by joining the link here: https://chat.whatsapp.com/CNupoG2sVitJRhzpfGJGHt
On behalf of the Board of Directors,
Nadja Pinnavaia Ph.D.
Chief Executive Officer
For investor inquiries please contact:
Corporate Communications and Investor Relations
Cautionary Note Regarding Forward-Looking Information
Certain statements contained in this news release constitute forward-looking statements as defined under applicable securities laws. All statements in this news release, other than statements of historical facts, that address events or developments that management of the Company expect, are forward-looking statements. Specifically, the references in this news release to the benefits the Company expects to gain from its Q2 2022 Financial Results constitute forward-looking statements. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond the Company's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements, see "Notice to Investors - Forward-Looking Information" and "Risk Factors" in the Prospectus. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
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