NRX Pharmaceuticals(US:NRXP)2022-11-14 21:21Financial Performance - For the three months ended September 30, 2022, NRx Pharmaceuticals reported a net loss of $9.1 million, a significant decrease from a net loss of $37.0 million in the same period of 2021, representing a reduction of approximately 75%[166]. - For the nine months ended September 30, 2022, NRx Pharmaceuticals reported a net loss of $29.5 million for the nine months ended September 30, 2022, an improvement of $33.1 million compared to a net loss of $62.7 million in 2021[178]. - NRx Pharmaceuticals generated no revenues and expects to continue incurring significant operating losses for the foreseeable future[187]. Operating Expenses - Total operating expenses for the three months ended September 30, 2022, were $9.1 million, down from $20.1 million in the same period of 2021, reflecting a decrease of $10.96 million or about 54.5%[171]. - For the nine months ended September 30, 2022, NRx Pharmaceuticals reported total operating expenses of $34.4 million, a decrease of $28.4 million compared to $62.8 million for the same period in 2021[178]. - General and administrative expenses were $5.0 million for the three months ended September 30, 2022, compared to $13.8 million in the same period of 2021, a decrease of $8.8 million or about 63.7%[173]. - General and administrative expenses were $21.9 million for the nine months ended September 30, 2022, down from $28.4 million in 2021, reflecting a decrease of $6.5 million[180]. - NRx Pharmaceuticals recorded no settlement expenses in 2022, compared to $21.4 million in 2021, indicating a significant reduction in liabilities[181]. Research and Development - Research and development expenses decreased to $4.1 million for the three months ended September 30, 2022, from $6.3 million in the same period of 2021, a reduction of $2.1 million or approximately 33.8%[172]. - Research and development expenses decreased to $12.6 million in 2022 from $13.8 million in 2021, primarily due to a $1.5 million reduction in clinical trials and development expenses related to ZYESAMI[179]. - The company is investigating PTSD as an additional indication for NRX-101, with Phase 2 clinical trial planning expected to commence in Q4 2022[170]. Clinical Trials and Product Development - NRx-101 has received Breakthrough Therapy designation from the FDA, which allows for expedited submission of a new drug application, with a data readout from the registrational Phase 3 clinical trial expected in Q3 2023[158]. - The company plans to initiate the registrational Phase 3 trial for NRX-101 in patients with acute suicidal ideation and behavior (ASIB) in Q4 2022, with a patient population of less than 100[162]. - NRx Pharmaceuticals has received numerous inquiries for partnerships regarding NRX-101, indicating strong interest in the product[162]. Financial Position - As of September 30, 2022, NRx Pharmaceuticals had cash of $18.2 million, down from $27.6 million at the end of 2021[200]. - The total liabilities decreased to $8.0 million as of September 30, 2022, from $11.9 million at the end of 2021[200]. - The company issued a 9% redeemable promissory note for $11.0 million on November 4, 2022, to support general corporate purposes[189]. - NRx Pharmaceuticals completed a private placement on February 2, 2022, raising $10.0 million from the sale of 7,824,727 shares of common stock[193]. Cash Flow Activities - For the nine months ended September 30, 2022, operating activities used $31.4 million of cash, primarily due to a net loss of $29.5 million, offset by net non-cash gains of $2.0 million[201]. - During the same period in 2021, operating activities used $26.4 million of cash, resulting from a net loss of $62.7 million, reduced by non-cash charges of $40.2 million[202]. - Financing activities for the nine months ended September 30, 2022, provided $22.1 million of cash, mainly from $22.6 million in net proceeds from the issuance of common stock and preferred investment options[203]. - In 2021, financing activities provided $63.5 million of cash, primarily from $27.4 million in repayment of notes payable assumed in a merger and $16.7 million from the issuance of common stock for warrant exercise[204]. Royalties and Obligations - NRx Pharmaceuticals has a contractual obligation to pay ongoing royalties of 1% to 2.5% of NRX-101 gross sales to SHMH, along with milestone payments of $0.3 million upon completion of phase 3 trials[206]. - As of September 30, 2022, the estimated probability of achieving the required milestones for payment of the Earnout Cash was de minimis, resulting in an Earnout Cash liability of zero[212]. Stock Options and Transactions - The fair value of stock options is estimated using the Black-Scholes option-pricing model, with assumptions including expected volatility and risk-free interest rates[215]. - Changes in the estimated fair value of warrants are recognized as a non-cash gain or loss in the statements of operations[218]. - NRx Pharmaceuticals has no off-balance sheet transactions or guarantees beyond normal business operations[207]. - The company does not expect to pay any cash dividends on common stock in the foreseeable future[215].