For the year closed March 2017, Vitality Biopharma Inc (OTCMKTS:VBIO) reported revenue of $163,363 compared to revenue of $248,348 in the same period, a year ago. The net loss came at $5.219 million against net loss of $141,325 in the comparable period. Cash used in operations came around $1.384 million in the reported period, compared to approximately $1.685 million in the comparable period, in the previous year.
Vitality reported that it does not expect to raise significant amounts of cash from its ongoing operations for the foreseeable period. These and other factors create substantial doubt about firm’s ability to advance operations smoothly. In addition, the company’s independent registered public accounting company in its report on March 31, 2017 audited fiscal statements, raised considerable doubt about Vitality ability to work as a going concern.
The company will require significant additional funding to advance its business plans and operations and it has no commitments for future capital. Moreover, the continuation of business is dependent upon its ability to sell securities or obtain loans to existing and new investors or get capital from another sources.
Over the next one year following this report date, Vitality intend to increase the scale of its pharmaceutical development measures. As of June 27, 2017, the company reported seven full-time employees. Total expenditures in the coming 12 months are expected to be around $3 million. The company estimate to have sufficient funds to manage its operations for at least 9 months.
However, the total expenditures estimate could increase if the company encounters unanticipated problems. Moreover, the projections of the amount required to fund business may come to be wrong, and the company could spend available financial resources faster than it currently expect.
In the last trading session, the share prices of Vitality gained more than 2% to close the day at $2.15.