CV Sciences Inc (OTCMKTS:CVSI) took a hit in the market after investors reacted to the posting of a wider than expected net loss for the three months ending September 30, 2016. The life science company posted a net loss of $1.9 million nearly, double a net loss of $989,549 posted in the third quarter of 2015.
Widening Net Los
However, for the nine months ending September, the company says its net loss remained unchanged at $5.66 million compared to a net loss of $5.641 million posted last year same period. Decline in earnings in the third quarter was mostly influenced by weakening grows margins. Revenues, on the other hand, came in at $2.94 million compared to $4.1 million for the same quarter last year.
The increase in net loss is attributed to an increase in capital expenditure as the company continues to come up with new products. The company has set sights on coming up with innovative medicines for unmet medical needs, according to CEO, Michael Mona.
“During the third quarter, we continued to lay the groundwork for advancing CVSI-007; our proprietary lead drug candidate, which addresses the multibillion-dollar smokeless tobacco market. We remain on track to advance the program into clinical development next year,” said Mr. Mona.
Product Pipeline
In addition, the company has a number of candidate drugs in the pipeline having commenced its preclinical drug development program in the second quarter of 2016. Most of the development efforts have been directed to coming up with Cannabidiol drug candidates where the company hopes to pursue growth opportunities with the expected expansion of the industry.
The company has already unveiled Purified Liquids which terms as premium CBD Vape e-liquids that it plans to use to target customers within the medical marijuana business. CV Sciences has also laid the groundwork for the development for the development of therapeutics leveraging marijuana compounds as the active ingredient.
Even with the aggressive spending spree on new drugs, CV Sciences Inc (OTCMKTS:CVSI) still boasts of a cash balance of $847,433, which it says is more than sufficient to meet its working capital requirements.