Genenta Science(GNTA)2023-04-21 21:21Financial Performance - As of December 31, 2022, the company had approximately €29.8 million in cash and cash equivalents, down from €37.2 million at the end of 2021, reflecting a net decrease of €7.4 million in cash used for operating activities[591][592][603]. - The company reported a net loss of approximately €8.5 million for the year ended December 31, 2022, compared to a net loss of approximately €5.5 million in 2021[593][596]. - Operating activities used approximately €7.4 million of cash and cash equivalents in 2022, with non-cash charges of approximately €0.8 million partially offsetting the net loss[593][594]. - The company did not generate any revenue during the year ended December 31, 2022, and does not expect to generate revenue from product candidates in the near future[603]. - The company estimates that its existing cash will be sufficient to fund operations and capital expenditures through 2024, although this is subject to change based on various factors[604][605]. - Future capital requirements will depend on various factors, including the progress of clinical trials and potential regulatory approvals[606][608]. - The company may seek additional funding sooner than planned if cash needs arise, which could impact research and development efforts[606][607]. Governance and Management - The total compensation for all directors and senior management for the year ended December 31, 2022, amounted to €1,107,965[632]. - The statutory auditors received approximately €44,000 in aggregate compensation for their services during 2022[634]. - The company has a board of directors that follows the historical Italian corporate governance system, separate from the board of statutory auditors[633]. - The company established a Compensation, Nomination and Governance Committee to oversee cash compensation and equity award recommendations for executive officers[639]. - The board of statutory auditors consists of three members, with a term expiring at the shareholders' meeting for the year ending December 31, 2023[636]. - The company relies on home country governance requirements and certain exemptions rather than Nasdaq Stock Market Rules[641]. - The company has opted out of shareholder approval requirements for certain share issuances, differing from Nasdaq Listing Rule 5635[643]. - The company established a board of statutory auditors in accordance with Italian law, which performs functions similar to an audit committee[644]. - The company believes its reliance on Rule 10A-3(c)(3) does not adversely affect the independence of its board of statutory auditors[645]. Human Resources - As of April 19, 2023, the company had nine full-time employees, with six in Milan, Italy, and three in the United States[646]. - The company relies on consultants and a large number of collaborators at SR-TIGET and OSR for various activities[646]. Research and Development - Dr. Russo has extensive experience in biotech, having held senior roles in companies focused on medical affairs and R&D, including GSK and Adverum[620]. - Dr. Naldini, a key scientific advisor, is recognized as a pioneer in lentiviral gene therapy and has authored over 250 scientific publications[626]. - The company has a diverse board with members having extensive experience in pharmaceuticals, finance, and corporate governance[622][624][625]. Investments - Investing activities used €27,070 in 2022 for cybersecurity improvements and ERP system implementation, compared to €9,009 in 2021 for fixed asset investments[598][600]. - The company funded its operations primarily through proceeds from the sale of quotas and its IPO, raising approximately €32.7 million in December 2021[591][600]. - The company has not hedged its foreign currency exchange risk, which may impact its financial results due to fluctuations in exchange rates[590][589].