Introduction
Bakhu Holdings Corp. (BKUH) released its quarterly financial report, revealing an accumulated loss of $56,669,816 as of April 30, 2023. The company specializes in plant cell replication technology and related proprietary equipment, processes, and formulations through its license with Cell Science Holding Ltd. for medical, food additive, and recreational use of cannabis-related byproducts, or cannabinoids.
In its financial report, Bakhu Holdings Corp. stated that its future losses could raise doubts about their ability to continue as a going concern. Despite this, the report provided detailed information about the company’s stock-based compensation plans and other financial strategies moving forward.
Table of Contents
Significance of Bakhu Holdings Corp. in the Cannabis Industry
Bakhu Holdings Corp. holds a valuable license allowing it to produce and manufacture cannabis and their byproducts throughout North and Central America and the Caribbean. The company also recently formed Cell Science CBD International, Inc., a California-based wholly-owned subsidiary established to commercialize the use of the licensed technology. This subsidiary, however, had no active operations as of April 30, 2023.
Bakhu Holdings Corp.’s license with Cell Science Holding Ltd. places the company in a unique position within the cannabis industry, which has experienced steady growth in recent years. The cannabis market in North America alone was worth $16.5 billion in 2021 and is projected to reach $23.4 billion by 2025.
Stock-Based Compensation Plans and Financial Strategies
According to the quarterly report, Bakhu Holdings Corp. recognized stock-based compensation of $11,439,625 and $10,146,604 for the nine months ending April 30, 2023, and 2022, respectively. As of April 30, 2023, a total unrecognized stock-based compensation of $30,736,622 is expected to be recognized over the remaining vesting period of the options and warrants.
These figures take into account various stock option grants to directors, executives, consultants, and advisors of the company, which have been detailed in the report. These grants were made under BKUH’s 2020 Long-Term Incentive Plan and aims to incentivize and retain the talents of those critical to the company’s operations and growth.
Cash Flow Status and Future Prospects
BKUH’s cash and cash equivalents are recognized as highly liquid instruments that can be converted into cash within three months. The company reported long-term debt instruments, including promissory notes payable to related parties, such as Cell Science Holding Ltd. and The OZ Corporation.
Although Bakhu Holdings Corp. admits to its current financial concerns, the company remains positive about its future growth and expansion. With its licensed technology and strategic partnerships, the company aims to become a major player in the cannabis industry in the coming years.
In conclusion, the newly released quarterly financial report of Bakhu Holdings Corp. reveals an accumulated loss of $56,669,816 as of April 30, 2023. But as the cannabis industry continues to grow exponentially, the company’s licensed technology and strategic positioning in the market could pave the way for future success and increased revenue generation.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!