PharmaCyte Biotech(PMCB) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended July 31, 2024, was $23,421,355, compared to a net loss of$3,183,297 for the same period in 2023, indicating a significant turnaround[9]. - Basic and diluted income per share for the three months ended July 31, 2024, was $1.90, compared to a loss of$0.54 per share in the prior year[9]. - Total operating expenses decreased to $1,268,887 for the three months ended July 31, 2024, down from$2,075,326 in the same period of 2023, a reduction of approximately 38.9%[9]. - Other income for the three months ended July 31, 2024, was $24,690,242, a significant increase from a loss of$(1,107,971) in the same period in 2023[121]. - For the three months ended July 31, 2024, the company reported no revenues, consistent with the same period in 2023[119]. Assets and Liabilities - Total assets increased to $70,194,434 as of July 31, 2024, up from$59,903,883 on April 30, 2024, representing a growth of approximately 17.7%[7]. - Total liabilities decreased to $17,152,950 as of July 31, 2024, down from$20,389,264 on April 30, 2024, a reduction of approximately 15.0%[7]. - The accumulated deficit improved to $(92,203,655) as of July 31, 2024, from$(115,625,010) on April 30, 2024, reflecting a positive change in financial health[7]. - The total stockholders' equity increased to $47,708,370 as of July 31, 2024, compared to$27,647,603 on April 30, 2024, representing an increase of approximately 72.5%[7]. Cash Flow - Cash and cash equivalents decreased to $32,635,092 as of July 31, 2024, from$50,179,968 on April 30, 2024, a decline of about 35.0%[7]. - The company reported cash and cash equivalents of $32,635,092 at the end of the period, down from$74,662,527 at the beginning of the period, reflecting a decrease of $17,544,876[15]. - Cash used in operating activities for the three months ended July 31, 2024, was$(373,297), compared to cash provided of $342,959 in the same period in 2023[125]. - Cash used in financing activities for the three months ended July 31, 2024, was$(10,171,762), compared to cash provided of $6,279,181 in the same period in 2023[125]. - The company expects its current cash and cash equivalents of approximately$26 million will be sufficient to support projected operating requirements for at least the next twelve months[28]. Investments and Stock Repurchase - The company invested $7,000,000 in preferred stock and warrants during the period[15]. - The company repurchased common stock for$742,179, compared to $26,457,324 in the same period last year[15]. - The Company repurchased 320,346 shares at a total cost of$749,600 during the three months ended July 31, 2024, bringing total repurchases to 5,868,921 shares at a cost of $16,067,918[75]. - The tender offer completed on June 9, 2023, resulted in the purchase of 8,085,879 shares at$3.25 per share, totaling $26,721,897[76]. - The Company has$3,932,081 remaining available for share repurchases under its authorized programs as of July 31, 2024[75]. Clinical Development and FDA Compliance - The company is focused on developing cellular therapies for cancer using its proprietary Cell-in-a-Box technology, specifically targeting locally advanced, inoperable pancreatic cancer[16]. - The company is currently addressing a clinical hold from the FDA regarding its Investigational New Drug Application for a planned clinical trial in LAPC[17]. - The company aims to lift the clinical hold on its IND to commence its planned clinical trial in LAPC, contingent upon fulfilling FDA requirements[116]. - The company is actively working to ensure compliance with all FDA requirements to facilitate the timely progression of its clinical trials[116]. - The company has successfully completed stability studies for its product candidate, confirming its stability over 24 months at -80°C[107]. Legal Matters - A legal complaint was filed against the company seeking damages of not less than 1,950,000 related to a breach of contract regarding a private placement transaction[151]. - The company does not believe that the outcome of any pending legal claims will have a material adverse effect on its financial condition or operating results[150]. - The company intends to vigorously defend against the legal complaint filed by H.C. Wainwright & Co., LLC[151]. Strategic Initiatives - A Business Review Committee has been formed to evaluate the company's strategy and operations, which may lead to a reevaluation of its relationship with SG Austria[18]. - The company has curtailed spending on its programs pending the completion of the Business Review Committee's evaluation[21]. - The Strategic Scientific Committee has been formed to review risks associated with the company's development programs and to recommend future actions[100]. - The company has determined that it will no longer pursue research and development in diabetes treatment, refocusing its efforts on cancer therapies[99]. Stock Options and Compensation - As of July 31, 2024, the Company had 924,830 outstanding stock options, with a weighted average exercise price of 2.95[43]. - The Company recorded $222,677 of stock-based compensation related to Employee Options during the three months ended July 31, 2024, compared to$0 in the same period of 2023[46]. - The aggregate intrinsic value of outstanding options as of July 31, 2024, was $0, as all options had exercise prices above the closing stock price of$1.96[46].