Braxia Scientific’s slide continues as company delays filing

Braxia Scientific Corp. (CSE: BRAX) (OTC Pink: BRAXF) informed investors that it would be unable to file its audited annual consolidated financial statements for the financial year ended March 31, 2024 and the related management’s discussion and analysis and CEO and CFO certificates for the same period before the filing deadline of July 31, 2024.

Braxia said the reason was related to the departure of its Chief Financial Officer and other senior management. The company said in a statement that it planned to report its earnings on or before September 15, 2024. In November 2023 Stephen Brooks stepped down as CFO and Olga Cwiek resigned from the board. Both positions were being filled by Peter Rizakos, the company’s general counsel.

The company last reported earnings in March when Green Market Report wrote that at the end of 2023, Braxia‘s cash and cash equivalents were just $0.128 million with a working capital deficit of $1.81 million. Those earnings were also unaudited.

The company cut staff significantly and the remaining members had agreed to defer salary to enable the company to reach its next phase. The company warned that if additional funding wasn’t found in the “very short term”, the company would have to have more cost reductions, restructuring, the potential scaling back of clinic locations, and creditor concessions.

In addition to the lack of financial information, Braxia said it had made an application to the Ontario Securities Commission to approve a management cease trade order under National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults, which, if granted, would prohibit the Chief Executive Officer and Chief Financial Officer of the company from trading in securities of the company until the Required Filings and all continuous disclosure requirements have been filed by the company and the MCTO has been revoked.

The stock trades for less than a penny and hasn’t traded for one cent in almost a year.