Financial Position and Assets - As of December 31, 2022, intangible assets related to acquisitions represented approximately 33% of total assets [286]. - The aggregate market value of common stock held by non-affiliates as of June 30, 2022, was $17.3 million [428]. - The number of shares of the registrant's Common Stock outstanding as of March 7, 2023, was 14,395,401 [428]. Capital Requirements and Funding - The company may need to raise additional funds to meet capital requirements for business operations and new pharmaceutical product development, which could lead to shareholder dilution [287]. - The company anticipates increased expenditures in drug discovery and development, particularly for clinical trials prior to regulatory approval [288]. - The company intends to continue significant investments in drug discovery and development, which may lead to future losses [314]. Corporate Governance and Control - As of December 31, 2022, officers and directors control approximately 41.81% of common stock, potentially influencing corporate decisions [291]. - The company has never paid cash dividends on its capital stock, indicating a focus on reinvestment [297]. Market Risks and Stock Performance - The market price of the company's common stock may fluctuate substantially, influenced by analyst reports and market conditions [292]. - The company may face challenges in maintaining its NASDAQ listing if it fails to meet minimum requirements, which could negatively impact stock liquidity and market price [294]. Financial Management and Risk Exposure - The company is exposed to market risk related to changes in interest rates on cash deposits and revolving credit facilities, focusing on principal preservation and liquidity [423]. - A portion of the company's research and development is performed abroad, exposing it to foreign currency risk [425]. - The company does not utilize derivative financial instruments to manage exposure to interest rate changes [423]. - The company emphasizes maximizing interest income through low-risk investments [423]. Regulatory and Reporting Status - The company is classified as a non-accelerated filer and a smaller reporting company under the Exchange Act [427]. - The company is not a well-known seasoned issuer as defined in Rule 405 of the Securities Act [426]. Forward-Looking Statements and Uncertainties - The company has made forward-looking statements regarding its future operations, which are subject to various risks and uncertainties [424]. - The company may incur significant losses in the future and may not achieve or maintain profitability due to uncertainties in generating commercially successful drug products [289]. Covenants and Obligations - The Revolving Credit Agreement imposes restrictive covenants that could adversely affect business operations if not complied with [298]. - The sum of individual amounts in the contractual cash obligations may not agree due to rounding [421].
Cumberland Pharmaceuticals(CPIX) - 2022 Q4 - Annual Report