Yesterday, AXIM Biotechnologies (OTC:AXIM) filed their 10-Q quarterly report with the U.S. Securities and Exchange Commission for the quarter and half ended June 30, 2017. After reaching a closing high of $14.50 in April of this year, shares of AXIM reversed gains and are down more than 25% year-to-date. This recent downside move has led to increased eyes on the company's filings and news as investors look for potential opportunities. That being said, here are 7 key points from AXIM Biotech's recent 10-Q filing that Wall Street took note of.
Related: AXIM Files Patent on Cannabinoid Gum For Opioid Addiction
AXIM reported revenues of $3,738 in the quarter ended June 30, 2017. This marked a decrease of approximately 66% from the comparable quarter of last year. Don't get too discouraged though, as previously mentioned, the focus with AXIM lies in their research progress, as well as their ability to fund said research. That being said, it can never hurt to keep an eye on revenues, and investors can be a little bit glad they aren't zero like most other development stage biotech companies.
The company generated a gross profit of 2,252 in Q2'17, compared to a gross loss of $(841) in the second quarter of last year.
Research and development expenses increased approximately 40% from the second quarter of last year to $62,949 in Q2'17. Although R&D expenses increased compared to the second quarter last year, a greater decline in selling, general and administrative expenses led to lower operating expenses in the quarter versus Q2'16.
As of June 30th, 2017, AXIM has $4,103,815 in cash. In the first half of the year, cash increased $3,390,469 from loan and convertible note proceeds that were partially offset by cash used in operating activities.
In regards to clinical trials & research, AXIM is currently in process with a quite a few different trials and research avenues. The company is continuing their research at the Free University of Amsterdam regarding their patented cannabinoid delivery systems for the treatment of pain and spasticity resulting from Multiple Sclerosis. Additionally, AXIM is continuing to test its patented delivery systems (including chewing gum) for the treatment patients with Irritable Bowel Syndrome and Crohn's Disease.
The company is planning to commence pre-clinical and clinical trials of gabapentin and cannabidiol (CBD) using their proprietary delivery method in patients with restless leg syndrome this year. AXIM also anticipates starting pre-clinical and clinical trials of its CanQuit® product for nicotine smoking cessation this year.
In regards to financing all of this research, AXIM expressed hedged optimism regarding their funding abilities. According to the company's 10-Q filing, "[AXIM] believes [they] will be able to meet these costs through use of funds in [their] treasury, through deferral of fees by certain service providers and additional amounts, as necessary, to be loaned to or invested in [the company]. AXIM went on... "Management’s plan includes obtaining additional funds by equity financing and/or related party advances; however, there is no assurance of additional funding being available."
Related: AXIM Biotech to Study CBD Gum To Treat Drug-Induced Psychosis
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