Plantable Health Inc. Reports Third Quarter Financial Results
New York, New York--(Newsfile Corp. - November 10, 2022) - Plantable Health Inc. (NEO: PLBL) (OTCQB: PLBLF) ("Plantable" or the "Company"), provides a clinically proven dietary intervention program to reverse and prevent chronic disease, today reported the financial results for the third quarter ended September 30, 2022.
"Food as Medicine is now here. The recent White House announcement of their support of insurance coverage for dietary lifestyle interventions, including Food as Medicine, paves the way for payer (private and government insurance) subsidy for clinically proven food as medicine (FAM) interventions. Plantable, with its 6 open clinical trials, is 2-3 years ahead of any new FAM entrants. Plantable's combined clinical and cost-efficacy brings a turnkey solution with high return on investment for the payer, to reduce the exploding costs driven by diet-related chronic disease that is plaguing the healthcare industry. Just a 25-basis point penetration of the US type II diabetes and pre-diabetes market alone, gives rise to a $400mm+ revenue opportunity for Plantable. The time is now." Stated Dr. Nadja Pinnavaia Ph.D., President and Chief Executive Officer of Plantable.
Summary of Financial Performance for Q3 2022
|Three months ended September 30, 2022||Q3 2022||Q3 2021|
|Basic and diluted loss per share||$||(0.01)||$||(0.01)|
|Weighted average number of Common shares outstanding||63,250,000||51,502,717|
- Revenue in Q3 2022 increased 17% to $246,603 in Q3 2022, compared to $210,798 in the same quarter last year primarily; driven by especially strong new Reboot growth, compared to the same period last year. Q3 2022 revenues were 20% lower than Q2 2022, which is in line with seasonality shifts (2021 - 22%).
- Cost of sales was $193,321 in Q3 2022 compared to $255,245 in Q3 2021, representing a decrease of $61,924. While the Company has experienced higher food input prices as well as significantly higher shipping expenses, year over year costs have decreased due to better overall control of all costs. Given the magnitude of the current inflationary environment, management is pleased that cost of sales has remained contained. 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. In this last quarter the Company shifted to a more flexible shipping platform allowing for lower shipping costs.
- Percentage gross margin was 21.5% of revenue in Q3 2022, compared to negative 21% in Q3 2021.
- Operating expense was $774,539, of which $581,691 were expenses attributable to the Operating company, with the balance of $192,848 incurred by the public company including share-based payments of $64,505 in Q3 2022; compared to $471,939 in Q3 2021. Operating expenses declined by $114,089 compared to Q2 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.
The quarter ended September 30, 2022, was the Company's third quarter of operations since Plantable listed on the NEO Exchange on January 12, 2022, under the symbol "PLBL". During the year ended December 31, 2021, the Company completed a reverse takeover transaction with Euphebe Healthcare Inc. In addition, the Company successfully completed the initial public offering, issuing 11,250,000 units at $0.40 per unit. The Company raised gross proceeds of C$4.5million.
Liquidity and Capital Resources
As of September 30, 2022, the Company had cash on deposit in the amount of $924,750, accounts receivable of $12,806, prepaid expenses of $64,393, and inventory of $122,780 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 September 30, 2022, was $1,021,275 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 $982,498 as of September 30, 2022, compared to $3,173,249 on December 31, 2021. On September 30, 2022, the Company had a related party loan payable of $107,001 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 September 30, 2022.
Q3 2022 Operational and Corporate Strategy Update
During the three-months ended September 30, 2022, Plantable made the strategic shift to focus on growing the Company's B2B business and reduce B2C paid media marketing initiatives, due to the challenging macroeconomic environment, driven by escalating input prices and reduced consumer spending. While revenues were up 17% YoY, client volumes remained largely flat reflecting the shift towards the more profitable Reboot customer. The reduction in paid media spend was reflected in decreased new client sales compared to Q2 2022.
On October 25, 2022, the Company announced a US distribution relationship with CookUnity, providing access to a new distribution network of 50,000 active members per month. Through this partnership, freshly made Plantable meals will be made available for purchase to this broader audience, while also giving Plantable's existing customers the option to order fresh meals through the CookUnity platform. This expands Plantable's meal distribution significantly and cost-effectively.
On September 29, 2022, Plantable announced a product expansion into the self-funded marketplace with the launch of the RebootRx, a 12-month clinical program that brings self-funded employers a value-based, high return on investment solution for the reversal of chronic disease with high levels of adherence. The RebootRx is a high engagement solution for the improvement in both employee health as well as the corporate bottom line, due to the reduction in health care costs associated with disease reversal. According to self-insured claims data from Vital Incite, a healthcare-focused data analytics company, a two-point reduction in HgbA1c, a marker of diabetes, brings a recurring annual cost saving of more than $5800 to the self-insured employer. In just one month, Plantable's Foundational Results show a reduction in HgbA1c of more than 0.9 pts. The RebootRx targets a sustained 2-3 point reduction in HgbA1c within 3-6 months, bringing the self-insured corporate payer meaningful, recurrent savings and improvement in the bottom line.
On October 4, 2022, the Company released preliminary results from its Myeloma Cancer Trial, NUTRIVENTION clinical trial (NCT04920084), led by Urvi A. Shah, M.D., a Hematologist/Oncologist and Physician Scientist at Memorial Sloan Kettering Cancer Center (MSK). The preliminary results at 12 weeks suggest feasibility of the Plantable intervention, as measured by adherence and weight loss. The final results of the clinical trial are expected to be available in 2023 and if proven successful, sets the path for Plantable to pursue government (CMS) insurance coverage as an effective dietary "prescription" to reduce the studied risk factors associated with metabolic disease.
Following the successful interim results, Plantable announced the opening of a further multi-center clinical trial, NUTRIVENTION-3, at Memorial Sloan Kettering Cancer Center (MSK) in New York, New York with Dr. Urvi Shah as Principal Investigator. This trial builds from the original NUTRIVENTION study and brings the Plantable intervention to a larger, multi-center audience. The primary objective for this trial is to evaluate the impact of the Plantable intervention on stool butyrate levels present in the gut microbiome for patients with Myeloma, Monoclonal Gammopathy of Unknown Significance (MGUS), and Smoldering Multiple Myeloma (SMM). Again, secondary endpoints of this trial include BMI reduction, metabolic indicators including inflammatory markers, blood sugar and insulin markers, lipid markers and quality of life.
Plantable believes that no other player in the Food as Medicine space has the rigor of the Company's independent clinical trials. With the White House announcement of its support for insurance subsidy of Food as Medicine interventions, along with the structural challenges being faced by the payers and providers, the US healthcare industry is in drastic need of change, and interventions that include Food as Medicine are now actively being pursued. The Company remains encouraged by this tremendous opportunity and are actively pursuing strategic payer relationships to capitalize upon it.
The management's discussion and analysis for the period and the accompanying financial statements and notes will be available on the Company's website at www.plantable.com/investor-relations and under the Company's profile on SEDAR at www.sedar.com.
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 the Company's website or click the link here: www.plantable.com.
If you are interested in investing in the Company and would like more information, please visit: www.plantable.com/investor-relations.
On behalf of the Board of Directors,
Dr.Nadja Pinnavaia Ph.D.
President and 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 Q3 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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