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MI

Manuka, Inc. (MNKA)·Q2 2022 Earnings Summary

Executive Summary

  • Q2 2022 showed early-scale revenue acceleration to $61,283 (+>10x YoY from $3,377) driven by increased marketing and repeat customers, but losses widened as OpEx ramped for commercialization and reverse recapitalization costs .
  • Net loss for Q2 2022 was $201,396 vs. $45,874 in Q2 2021; operating loss was $220,635, reflecting higher sales & marketing ($86,832) and G&A ($178,367) versus last year .
  • Liquidity remains tight; management cites support from the major shareholder and expects cash balances to be sufficient to operate through December 2023 (subject to capital raises/support letter) .
  • Structural catalysts in the quarter: completion of the Share Exchange/Reverse Recapitalization (Manuka became the accounting acquirer), debt/warrant exchanges, and manufacturing/import agreements enabling product flow; management highlights five new products supporting growth .

What Went Well and What Went Wrong

  • What Went Well

    • Revenue growth inflected materially (Q2 2022: $61,283 vs. $3,377 YoY), attributed to “our marketing and sales efforts, and an increase in sales and repeat customers” .
    • Favorable financial items: net financial income for Q2 2022 ($19,239) vs. expense last year ($6,309), aided by FX/translation differences .
    • Strategic progress: executed Share Exchange closing; agreements covering private-label honey supply and cosmetics manufacturing/formulas; obtained Israel MoH import license for manuka honey .

  • What Went Wrong

    • Losses widened with commercialization ramp: Q2 2022 operating loss ($220,635) and net loss ($201,396) materially higher YoY due to marketing and professional services tied to the recapitalization .
    • Cash burn increased; cash from operations for 1H 2022 was -$293,297 (vs. -$99,311 in 1H 2021) .
    • Ongoing going‑concern risk and limited capital base; dependence on a shareholder support letter to fund operations if needed .

Financial Results

MetricQ2 2021Q1 2022 (Manuka)Q2 2022
Revenue ($USD)$3,377 $16,377 $61,283
Cost of Revenue ($USD)$550 $3,940 $16,719
Gross Profit ($USD)$2,827 $12,437 $44,564
Sales & Marketing ($USD)$8,023 $109,202 $86,832
General & Administrative ($USD)$34,369 $101,814 $178,367
Total Operating Expenses ($USD)$42,392 $211,016 $265,199
Operating Income (Loss) ($USD)$(39,565) $(198,579) $(220,635)
Financial Income (Expense), net ($USD)$(6,309) $(4,706) $19,239
Net Income (Loss) ($USD)$(45,874) $(203,285) $(201,396)
EPS (Basic & Diluted) ($USD)$(0.0006) —$(0.0006)

Segment breakdown: Not disclosed; business is focused on skincare products based on manuka honey and bee venom .

KPIs/Balance Items:

KPI/MetricQ2 2021Q1 2022 (Manuka)Q2 2022
Products Launched (cumulative)—5 new products mentioned 5 new products supporting growth
Inventory ($USD)$73,972 (Dec-21) $74,272 (Mar-22) $66,112 (Jun-22)
Cash & Equivalents ($USD)$471,074 (Dec-21) $316,819 (Mar-22) $149,396 (Jun-22)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runwayThrough Dec 2023—Management anticipates cash balances sufficient to operate until Dec 2023, relying on shareholder support as needed New disclosure
Revenue/margins/OpEx/guidance rangesQ2/FY—No formal numerical guidance provided in Q2 filings reviewed —

Dividend/Tax rate/OI&E: No dividend policy changes; tax rate commentary not quantified in Q2 2022 10‑Q; OI&E discussed via net financial income/expense .

Earnings Call Themes & Trends

Note: No Q2 2022 earnings-call transcript found; themes derived from MD&A across quarters.

TopicPrevious Mentions (Q-2: Q1 2022 MD&A)Previous Mentions (Q-1: Q2 2022 MD&A)Current Period (Q3 2022 MD&A for trend)Trend
Product performance/launchesNo revenue in Artemis shell; Manuka reported $16,377 revenue and 5 new products Q2 revenue growth attributed to marketing, repeat customers; commercialization ramp Continued growth with $118k quarterly revenue; 9M revenue $195k; growth tied to new products/marketing Improving scale from low base
Marketing intensityNoted marketing ramp at Manuka; early spend Higher S&M spend to drive customer acquisition S&M $269k in Q3; continued investment Sustained investment
Liquidity/going concernShell company; strategic alternatives; liquidity constraints Support letter from major shareholder; runway expectations disclosed Cash $85k; continued reliance on shareholder support/raises Ongoing constraint
Regulatory/supply chainAgreements for manufacturing and import license obtained (Israel MoH) Leveraging agreements to enable sales No new issues cited; operations continue Stable/operationalized

Management Commentary

  • “The reason for the increase in revenues… was mainly due to our marketing and sales efforts, and an increase in sales and repeat customers.” (Q2 2022 MD&A) .
  • “The increase in the general and administrative expenses… was mainly due to an increase in consultants and professional services expenses paid in connection with the Reverse Recapitalization Transaction.” (Q2 2022 MD&A) .
  • “We anticipate that our cash balances will be sufficient to permit us to conduct our operation until December 2023… reliant on the support of its major shareholder… securing the necessary funds.” (Q2 2022 Outlook) .
  • Agreements enabling operations: private-label honey supply and labeling/certification with Waitemata; cosmetic manufacturing/formula IP agreement; Israel MoH import license .

Q&A Highlights

No Q2 2022 earnings call transcript was available; therefore, no Q&A highlights could be derived from primary sources [SearchDocuments—no results].

Estimates Context

  • Wall Street consensus estimates (S&P Global/Capital IQ) were unavailable for MNKA due to missing mapping in SPGI systems; thus, no estimate comparisons can be provided at this time [SpgiEstimatesError].

Key Takeaways for Investors

  • Commercial traction is emerging from a very low base, with Q2 revenue rising sharply YoY and Q3 continuing momentum; however, scale remains modest and variable as marketing and product rollouts drive early-stage results .
  • Losses widened due to commercialization and transaction costs; watch OpEx discipline as the company moves from build-out to optimizing CAC and administrative spend .
  • Liquidity and going‑concern risk require monitoring; operations depend on shareholder support and potential capital raises to maintain runway beyond 2023 .
  • Structural steps (reverse recapitalization, conversion of preferred to common, supplier/manufacturer agreements, import license) reduce operational friction and support product availability .
  • Near-term catalysts: sustained revenue growth from 5 product launches, potential geographic expansion via websites, and conversion of preferred shares streamlining capital structure .
  • Risk factors: thin capitalization, FX/Israel inflation exposure, and reliance on a sole manufacturer/supplier ecosystem per agreements .

Appendix: Prior Period Documents Reviewed

  • Q2 2022 10‑Q (financials and MD&A): revenue, expenses, and liquidity commentary .
  • Q1 2022 (Manuka) interim financials via 8‑K exhibits: early revenue and spending dynamics .
  • Q3 2022 10‑Q: trend validation post‑Q2 .
  • Agreements and licenses enabling operations (private-label honey, cosmetics manufacturing/formulas, Israel MoH import license) .