GB Sciences Reports $285K Net Loss and Seeks Additional Financing

GB Sciences, Inc. reported a net loss of $285,018 for the three months ended June 30, 2024, compared to a loss of $273,121 for the same period in 2023. The company did not generate any sales revenue during this quarter, maintaining a consistent trend from the previous year. General and administrative expenses decreased to $254,137 from $265,122, reflecting the company's efforts to minimize costs while advancing its research and development initiatives. Interest expenses also saw a reduction, falling to $30,881 from $40,804, attributed to the amortization of debt discounts despite an increase in net note balances.

In terms of financial position, GB Sciences reported total current assets of $91,451 as of June 30, 2024, down from $103,442 at the end of the previous quarter. Current liabilities increased to $5,358,584, primarily due to rising accounts payable and accrued interest. The company's stockholders' deficit widened to $5,589,133, compared to $5,314,115 in the prior quarter, driven by the ongoing net losses. The working capital deficit also increased to $5,267,133, indicating continued financial strain.

Strategically, GB Sciences has focused on expanding its intellectual property portfolio, which now includes eight U.S. and twelve foreign patents, with additional applications pending. The company has made significant strides in its research and development efforts, particularly in the area of cannabinoid-based therapies for conditions such as Parkinson's disease and chronic pain. Recent developments include successful preclinical trials that support the viability of its therapeutic programs, positioning the company for potential clinical trials in the near future.

Operationally, the company has not reported any significant changes in customer counts or user statistics, as it continues to focus on research rather than commercial sales. The employee headcount remains stable, with no new hires reported during the quarter. The company is actively seeking additional financing to support its operations and growth plans, as it anticipates that cash flows from operations will be insufficient to fund its activities over the next twelve months.

Looking ahead, GB Sciences acknowledges substantial doubt about its ability to continue as a going concern without securing additional capital. The company is exploring various financing options, including equity and debt financing, to meet its operational needs. Management remains optimistic about the potential for its drug development programs and is committed to advancing its research initiatives, although the path forward will depend heavily on its ability to raise necessary funds.