Financial Performance - Net loss for the three months ended October 31, 2024, was 1,469,560comparedtoanetincomeof2,789,896 for the same period in 2023[17]. - The company reported a comprehensive loss of (1,469,499)forthethreemonthsendedOctober31,2024,comparedtoacomprehensiveincomeof2,788,305 for the same period in 2023[18]. - The company reported net cash used in operating activities of (1,428,032)forthesixmonthsendedOctober31,2023,comparedto(1,641,395) in the prior period[28]. - Net income for the six months ended October 31, 2023, was 21,951,795,comparedtoanetlossof(393,401) in the prior period[28]. - The company reported a net loss attributable to common stockholders of 2,958,875forthethreemonthsendedOctober31,2024,comparedtoanetlossof2,258,087 for the same period in 2023[90]. - For the six months ended October 31, 2024, the Company achieved a net income of 21,951,795,contrastingwithanetlossof393,401 for the same period in 2023[92]. Assets and Liabilities - Total current assets decreased from 50,439,768inApril2024to21,333,269 in October 2024, a decline of approximately 58.7%[13]. - Total liabilities decreased significantly from 20,389,264inApril2024to11,647,238 in October 2024, representing a reduction of about 42.9%[13]. - Cash and cash equivalents decreased from approximately 50.2millionatApril30,2024,to20.8 million as of October 31, 2024[45]. - Working capital was approximately 17millionasofOctober31,2024,comparedtoapproximately43 million as of April 30, 2024[175]. Stockholder Equity - Total stockholders' equity increased from 27,647,603inApril2024to43,451,146 in October 2024, an increase of approximately 57.1%[13]. - As of October 31, 2023, total stockholders' equity stands at 36,767,508,reflectinganetlossof3,183,297 for the period[21]. - The company issued 35,000 shares of Series B Preferred Stock, resulting in an increase of 16,753,075inpreferredstockequity[21].−Thetotalstockholders′equityincreasedto47,708,370 by July 31, 2024, indicating positive financial momentum[24]. Expenses - Total operating expenses for the three months ended October 31, 2024, were 1,106,060,downfrom1,409,520 in the same period of 2023, a decrease of about 21.5%[17]. - Total operating expenses for the six months ended October 31, 2024, were 2,374,947,adecreaseof31.8382,562 for the three months ended October 31, 2024, compared to 894,181forthesameperiodin2023,adeclineofapproximately57.3(363,500), a significant decline from 4,199,416inthesameperiodin2023[165].−Otherincome(expenses),netforthesixmonthsendedOctober31,2024,was24,326,742, compared to 3,091,445forthesameperiodin2023[166].ResearchandDevelopment−Researchanddevelopmentcostsincreasedto97,470 for the three months ended October 31, 2024, up from 82,033inthesameperiodof2023,reflectingagrowthofapproximately18.25,000,000 in senior unsecured convertible notes from Femasys, convertible at a price of 1.18pershare[57].−Thecompanyinvested7 million in preferred stock and warrants during the six months ended October 31, 2023[28]. - The company invested 7 million in TNF Pharmaceuticals, Inc. for acquiring shares and warrants[171]. Legal and Regulatory Matters - The company is currently involved in a legal proceeding with H.C. Wainwright & Co., LLC, seeking damages of not less than 1,950,000[200]. - The Company intends to vigorously defend against a breach of contract complaint filed by H.C. Wainwright, seeking damages of not less than $1,950,000[77]. - The FDA has placed the Company's IND on clinical hold since October 1, 2020, requiring additional studies and data to lift the hold[139]. Internal Controls and Compliance - The company identified two material weaknesses in its internal controls: insufficient segregation of duties and insufficient management review controls[195]. - The company’s disclosure controls and procedures were found to be ineffective as of October 31, 2024, due to material weaknesses in internal control over financial reporting[191]. - The company has determined that its investment in preferred stock is a Variable Interest Entity (VIE) but is not the primary beneficiary[184]. Miscellaneous - The company has not issued any shares during the three months ended October 31, 2024[203]. - The company has curtailed spending on development programs until the Strategic Scientific Committee completes its evaluation of its programs[134]. - The fair value of the company's convertible preferred stock and warrants is estimated using models that incorporate various market assumptions, including equity volatility and risk-free interest rates[182][185].
