NUTRIBAND, the medical technology minnow established by Dubliner Gareth Sheridan, has warned investors it may not be able to continue in business if it cannot obtain financing or enter a joint venture agreement.
It said in its annual report that development efforts have been put on hold, while its financial position and effects of Covid-19 have seen its contract business scaled back.
Former presidential candidate Sean Gallagher, pictured inset, is president of the firm.
Mr Sheridan, the firm's CEO, established Florida based Nutriband in 2012. It focused its efforts on the development of transdermal pharmaceutical products intended to manage chronic pain that requires constant opioid treatment.
"Because of our financial position, we have put our development efforts with respect to these products on hold, and our only business is the performance of contract services for a small number of customers," it told investors.
"Because of both our financial position and the effects of the Covid-19 pandemic, our contract service business has also been scaled back."
In its financial year to the end of last January, Nutriband generated revenue of $370,647 (€340,630) and a $178,000 loss.
Its total net loss for the year was just over $2.7m when stock-based compensation and other costs were included.
"Subsequent to January 31, 2020, because of the lack of available cash and the decline in business resulting in part from the effects of the Covid-19 pandemic, we temporarily closed our operations, and do not expect that we will be able to commence operations relating to the development of our transdermal pharmaceutical products until we receive substantial funding," Nutriband's annual report adds.
Its shares are traded on the over-the-counter market in the US. Last year, Nutriband hoped to raise $3.75m and list on the Nasdaq capital market in a move set to value the company at $65m. That fundraising did not proceed, however.
Last month, it completed a private placement that raised just over $515,000. From that, it used $270,000 to pay off existing convertible notes. It secured an additional $60,000 loan from a shareholder.
"Successful business operations and our transition to attaining profitability are dependent upon obtaining significant financing and achieving a level of revenue to support its cost structure, developing our products and obtaining FDA [Food and Drug Administration] approval to market any product we develop, and implementing a marketing programme for such products," Nutriband said in its annual report this week.