Quantum BioPharma Ltd. Q1 FY2023 earnings call

• The company is R&D-focused, with a world-class science team working on neurodegenerative diseases (LUCID MS) and alcohol misuse (unbuzzd). - LUCID MS completed Phase 1, has toxicity studies ongoing, and a collaboration with Mass General and Harvard for a PET tracer to aid Phase 2 planning. - Unbuzzd licensed to Celly, sales started in Puerto Rico, has marketing and distribution strategies in place, and plans for international expansion. - Quantum has removed material uncertainty related to going concern, with cash on hand to last into 2027. - Lawsuit against banks and brokers is progressing, with next milestone by end of 2024.

The company has two main segments. For LUCID MS: It completed Phase 1 clinical trials, is in toxicity studies with reports expected in nine months, plans to submit an investigational new drug (IND) submission later this year, and hopes to enter Phase 2 trials in early 2026. Revenue contribution not specified as it's in R&D. For unbuzzd: Licensed to Celly Nutrition, sales started in Puerto Rico, partnered with FUSION and AATAC, had a clinical trial showing alcohol metabolized 40% faster vs placebo. Quantum retains 7% gross royalty and ~26% equity stake in Celly.

• For LUCID MS: Intends to submit IND later this year, hope to enter Phase 2 in early 2026, with Phase 2 trial planning underway and potential 18-month timeline. - For unbuzzd: Intends to list via IPO, ongoing reexamination due to market conditions, target raise of $10-15 million, and plan for international expansion.

• Market and regulatory risks: Uncertainties around market acceptance of LUCID MS and unbuzzd products, potential delays in clinical trials or regulatory approvals. - Financial risks: Dependence on cash reserves, potential impact of market conditions on IPO plans for unbuzzd.

Q: How soon will you be able to enter LUCID Phase 2 trials, and how long will that take to complete?

A: Phase 2 trial planning has started. Once tox studies are complete and reports are out, IND will be submitted. Hopeful start in Q1 2026, with Phase 2 potentially taking 18 months to 3 years.

Q: Have sales of unbuzzd started in Puerto Rico, and what is the company's sales, marketing and distribution strategy in that market?

A: Sales have started in Puerto Rico. Initial wholesale product arrived, partnered with FUSION, billboard and social media campaigns, targeting areas with university concentrations and using multichannel approach.

Q: Will you be focusing on college towns and roll out unbuzzd to Europe and Asia?

A: Focus on university towns in US, including California. Intends to expand internationally eventually, starting with US and Canada.

Q: Can you provide any additional updates on Celly Nutrition's intent for the IPO?

A: Celly retained a banker, ongoing reexamination due to market conditions, target raise of $10-15 million, plan to go public with prospectus preparation and market testing.