Inhaled medical cannabis device developer Lifespot Health (ASX: LSH) ended the December 2020 quarter with its first revenue from sales of its Medihale inhaler device.
Sales of the device generated $73,000 in cash to Lifespot, while operating expenditure was $207,000.
Operating expenditure comprised an outlay of $33,000 towards ongoing R&D of Medihale and Lifespot’s other product Fevertel, which is an ear and forehead infrared thermometer. Another $31,000 went toward purchasing inventory, while $34,000 was allocated to advertising and marketing both devices.
The company closed out the period with $1.718 million in the bank.
During the period, the Medihale devices were sold to EC Pharma which is supplying them to Australian patients under the special access scheme.
According to Lifespot, cannabis offers a medical solution for many patients.
The company claims Medihale contains none of the additives that are known to cause lung damage.
Lifespot chief executive officer Matthew Golden previous told Small Caps Medihale was similar to an insulin pen. It contains a cartridge that cannot be tampered with or refilled.
The device also offers users dose precision.
Both of these inclusions prevent black market use of the device and deliberate or unintentional dose increases.
Lifespot has completed development of its Fevertel system and plans to make a strategic assessment of the product in the current quarter.
Fevertel is listed as a class II medical device under the Australian Register of Therapeutic Goods.
Sales of the product were impacted during Q4 2020 by “competitive pricing” and “aggressive promotions”.
Ela Capital investment
Following Q4 2020, Lifespot revealed an almost $800,000 cash influx from Canada-based cannabis investment fund Ela Capital.
Lifespot claims this is particularly important because it represented the first time a North American cannabis fund has taken a stake in an Australian company.
The investment from Ela was part of rights issue earlier this month that aimed to raise $2.4 million.
Funds from the rights issue will be used for clinical trials using Medihale.