Financial Performance - For the three months ended April 30, 2024, revenue was $408,532, a decrease of 14.3% compared to $476,932 for the same period in 2023[12]. - Net loss for the three months ended April 30, 2024, was $1,898,077, compared to a net loss of $1,015,229 for the same period in 2023, representing an increase in loss of 86.7%[12]. - Revenue for the three months ended April 30, 2024, was $408,532, a decrease of 14.3% compared to $476,932 for the same period in 2023[42]. - For the three months ended April 30, 2024, net sales were $408,532 for Pocono Pharmaceuticals, compared to $401,057 in the same period of 2023[96]. - Gross profit for Pocono Pharmaceuticals was $164,786 for the three months ended April 30, 2024, down from $169,308 in 2023[96]. - Total operating expenses for the three months ended April 30, 2024, were $2,054,263, compared to $1,240,162 in the same period of 2023[96]. - The company's net loss for the three months ended April 30, 2024, was $1,898,077, or $(0.21) per share, compared to a loss of $1,015,235, or $(0.13) per share for the same period in 2023[134]. Assets and Liabilities - Total current assets increased to $8,729,940 as of April 30, 2024, compared to $1,021,863 as of January 31, 2024[10]. - Total liabilities increased to $1,791,367 as of April 30, 2024, compared to $1,078,919 as of January 31, 2024[10]. - As of April 30, 2024, the company recorded total assets of $15,154,480, with corporate assets at $8,210,779 and Pocono Pharmaceuticals at $5,044,569[98]. - As of April 30, 2024, net property and equipment amounted to $740,305, a decrease from $774,924 as of January 31, 2024[64]. - As of April 30, 2024, net intangible assets were $638,993, down from $667,280 as of January 31, 2024[71]. - Goodwill as of April 30, 2024, amounted to $5,021,713, unchanged from January 31, 2024[48]. Cash Flow and Financing - Cash and cash equivalents increased to $8,347,740 as of April 30, 2024, from $492,942 at the beginning of the period[17]. - The company reported a net cash used in operating activities of $833,926 for the three months ended April 30, 2024, compared to $749,864 for the same period in 2023[17]. - The company raised $8,400,000 from the sale of common stock and warrants during the three months ended April 30, 2024[17]. - The company generated $8,400,000 from equity financing with European investors on April 19, 2024, of which $7.12 million was from related parties[31]. - The company completed an $8,400,000 equity financing with European investors, where related parties invested a total of $7,120,000, receiving 1,780,000 shares of common stock and warrants for 3,560,000 shares[82]. - The company has relied on sales of securities and issuance of debt to support cash flow from operations since inception[31]. Research and Development - Research and development expenses rose significantly to $974,535 for the three months ended April 30, 2024, compared to $400,430 in the same period of 2023, an increase of 143.5%[12]. - Research and development expenses for 4P Therapeutics were $974,535 for the three months ended April 30, 2024, compared to $400,430 in 2023[96]. - The company incurred approximately $2,950,998 in expenses related to the feasibility Workplan for the AVERSA Fentanyl product, with an estimated total cost of $2.5 million[103]. - The company requires approximately $13 million for research and development of the abuse deterrent fentanyl transdermal system, including clinical manufacturing and trials[120]. - The company has a three-year $5,000,000 Credit Line Note facility to fund research and development of its Aversa product[31]. - Research and development costs are expensed as incurred, with no specific figures provided in the documents[55]. Operational Challenges - The company expects to continue incurring substantial losses and negative cash flow for the foreseeable future due to ongoing product development and clinical trials[183]. - The company faces significant challenges in achieving market acceptance for its products post-FDA approval, which could adversely affect its operating results and financial condition[184]. - The drug delivery industry is rapidly evolving, and the company's future success depends on its ability to keep pace with technological advancements and changing customer requirements[185]. - If FDA approval is obtained, the company anticipates facing strong competition from well-established firms with better resources and existing relationships within the healthcare system[186]. - The FDA regulatory process may be more time-consuming and costly than anticipated, with no guarantee of approval for the lead product[189]. - There is a risk that the company may not be able to launch any products even after receiving FDA marketing approval[189]. Stock and Options - The weighted average shares of common stock outstanding increased to 9,159,869 for the three months ended April 30, 2024, from 7,833,150 in the same period of 2023[12]. - The company issued 390,000 options to purchase shares at prices ranging from $2.37 to $2.61 per share during the three months ended April 30, 2024[91]. - As of April 30, 2024, there are 1,264,835 options outstanding with an average exercise price of $2.63[93]. - The company has reserved a total of 1,400,000 shares for its Employee Stock Option Plan, pending stockholder approval[90]. - The company has reserved a total of 1,400,000 shares under the 2021 Employee Stock Option Plan as of March 20, 2024[123]. Miscellaneous - The company recorded bad debt expenses of $1,200 for the three months ended April 30, 2024, compared to $0 for the same period in 2023[44]. - The company recorded a reserve for bad debts of $118,675 related to a claim from Sorrento Therapeutics, with proceeds of $106,528 received[106]. - The company has established additional monitoring controls over financial statements and improved internal controls for detailed accounting review of revenue items and accounts receivable[172]. - The company has not generated any revenue from 4P Therapeutics' products under development since the acquisition, continuing only contract research and development services[119]. - The company has entered into three-year employment agreements with key executives, with salaries reduced to $150,000 for the CEO and President, and $110,000 for the CFO as of July 31, 2022[99][100]. - The company completed the feasibility Workplan for the AVERSA product in February 2024, marking a significant milestone in its development[102].
Nutriband (NTRB) - 2025 Q1 - Quarterly Report