Filament Made Substantial Progress During 4Q21. Filament Health reported a full year loss of $9.3 million or $(0.06) per share. During the quarter, Filament advanced its clinical pipeline, made licensing agreements, and strengthened its intellectual property. The cash balance at December 31, 2021 was $4.6 million.Clinical Trials Have Begun. During 4Q, Filament announced regulatory clearance for its first clinical trial. This trial began patient treatment in March 2022, testing its naturally-derived psilocybin and its bioactive form, psilocin. The trial has three arms to compare the standard doses of oral psilocybin (PEX010), oral psilocin (PEX020), and sublingual psilocin (PEX030).Licensing and Collaborations Broaden Use of Filament's Products. Filament has made collaborative agreements with academic research centers and other companies for product supplies and research. Its products contain psychedelic compounds that have been extracted from cultivated mushrooms and fungi using the company's proprietary methods rather than made synthetically. Customers may prefer the naturally-derived form, and these methods allow the company to provide products without going through pharmaceutical manufacturing regulatory approvals.A New Patent Was Granted In March 2022, Filament announced the issuance of a second patent by the Canadian Intellectual Property Office. This patent covers the technology used for the extraction and standardization used to make pharmaceutical-grade drugs from natural psilocybin and associated compounds. The company continues to build its intellectual property, have filed its thirtieth patent application during 2021.Conclusion. Filament Health is making continued progress in developing psychedelic products in mental health applications. Although investor interest in using psychedelics as therapeutics has waned since 2021, Filament has started its clinical trials, collaborated with others to supply products for clinical trials, and adds intellectual property to build its proprietary position. We believe Filament will be one of the companies that develops products and builds a successful business in the field. We are reiterating our Outperform rating and $1.50 price target. Read More >>