Bakhu Holdings Corp. (ticker: BKUH) has reported a net loss of $13.1 million for the third quarter of 2023, according to its latest Form 10-Q filing with the Securities and Exchange Commission. The company has not generated any revenue to date, and thus remains in a precarious financial situation.
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Accumulated deficit and operating expenses
In the nine months leading up to April 30, 2023, Bakhu Holdings saw its accumulated deficit rise to $56,669,816 from $43,529,628 at the end of the previous fiscal year. During the same period, the company’s total operating expenses rose to $12,930,910 from $12,732,035. Despite the unfavorable financial results, Bakhu Holdings reported that it had 301,302,983 common shares outstanding as of June 16, 2023.
Stockholders’ equity and liquidity
During the reporting period, Bakhu Holdings’ total stockholders’ equity fell to a deficit of $8,828,086, a significant decline from the $7,157,523 deficit recorded at the end of the previous fiscal year. The company’s cash and cash equivalents also fell from $12,451 at the start of the reporting period to just $569 by April 30, 2023. This decline in liquidity indicates that the company may face difficulties meeting its short-term financial obligations.
Fundraising efforts
To help raise funds, Bakhu Holdings has turned to stock options, raising over $11 million through the issuance of stock-based compensation during the first nine months of the reporting period. Additionally, Bakhu Holdings raised $30,000 through the sale of its common stock.
Stock-based compensation expenses
Notably, the company reported expenses of $4,433,406 on stock-based compensation during the nine months leading up to April 30, 2022, while issuing
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