Nutriband, an Irish-owned medical product company which counts businessman and former presidential candidate Sean Gallagher as its president, has expressed doubt over its ability to continue as a going concern.
In its annual report, the US-based business said due to a lack of funds and the effects of the Covid-19 pandemic, it temporarily closed its operations. Nutriband said it did not expect it will be able to commence operations relating to the development of its transdermal pharmaceutical products until it received substantial funding.
According to the report, Nutriband's auditors expressed doubt about its ability to continue as a going concern. Nutriband also said its operation and transition to profitability were dependent on obtaining financing, sustainable revenue, and Food and Drug Administration approval to market its products. "These factors raise substantial doubt about our ability to continue as a going concern. Without such financing, we may not be able to continue in business," the report said.
Nutriband withdrew a public offering statement in March.
Gareth Sheridan, chief executive of Nutriband, said his business would not proceed with the offering at this time due to "unfavourable market conditions". "We are proceeding with the strategic development of the company, which has never stopped," he added.
For the year ended January 2020, Nutriband generated revenue of nearly $371,000 (€341,000), on which it recorded cost of sales of $549,000. The report said it made a loss from operations of $2m.
According to the report, Nutriband has an employment agreement with Gallagher, who serves as president on a part-time basis, at an annual salary of $60,000, which can be paid in stock or cash.
Sunday Indo Business