Virpax Pharmaceuticals(US:VRPX)2021-11-15 21:05Financial Performance - The net loss for the nine months ended September 30, 2021, was $7,938,434, compared to a net loss of $3,634,442 for the same period in 2020, representing a 118% increase in losses[16] - Total operating expenses for the nine months ended September 30, 2021, were $7,903,883, up from $3,508,842 in the same period of 2020, indicating a 125% increase[16] - The company reported a basic and diluted net loss per share of $1.59 for the nine months ended September 30, 2021, compared to $1.18 for the same period in 2020[16] - Virpax Pharmaceuticals incurred a net loss of $7,938,434 for the nine months ended September 30, 2021, compared to a loss of $3,634,442 for the same period in 2020, resulting in an accumulated deficit of $18,586,278[26] - The company has not generated any revenue since its inception and has not achieved profitable operations, relying primarily on debt and equity securities for capital[25] - The company anticipates incurring substantial additional operating losses for several years as it develops product candidates[157] Assets and Liabilities - As of September 30, 2021, total assets amounted to $43,273,033, a significant increase from $465,406 as of December 31, 2020[14] - Total stockholders' equity increased to $41,461,224 as of September 30, 2021, compared to a deficit of $4,216,098 as of December 31, 2020[14] - The total liabilities decreased to $1,811,809 as of September 30, 2021, from $4,681,504 as of December 31, 2020[14] - The company had accounts payable and accrued liabilities totaling $1,811,808 as of September 30, 2021, down from $3,115,924 at the end of 2020[44] - Current assets as of September 30, 2021, were $43,273,033, a significant increase of 59,122% from $73,069 at the end of 2020[140] Cash and Financing Activities - Cash and cash equivalents at the end of the period were $41,713,435, a substantial increase from $256,505 at the end of September 30, 2020[20] - The company raised $40,020,000 from a secondary offering of common stock during the nine months ended September 30, 2021[20] - The gross proceeds from the initial public offering (IPO) were $18.0 million, with net proceeds of approximately $15.8 million after expenses[27] - In September 2021, the company closed an underwritten public offering, raising gross proceeds of $40.0 million and net proceeds of approximately $37.0 million[28] - Cash provided by financing activities was $51,278,908 for the nine months ended September 30, 2021, primarily from an initial public offering and an underwritten offering[154] - The company raised net proceeds of $15,783,207 from its initial public offering in February 2021 and $36,999,465 from an offering in September 2021[161] Research and Development - Research and development expenses for the nine months ended September 30, 2021, were $3,089,769, compared to $1,187,333 for the same period in 2020, reflecting a 160% increase[16] - The company plans to utilize its proprietary delivery technologies to develop a portfolio of non-opioid and non-addictive pain management products, as well as anti-viral therapies[24] - The company is focused on developing non-opioid and non-addictive pain management treatments, with proprietary drug delivery systems targeting various pain indications[105] - Epoladerm, a topical spray for chronic osteoarthritis of the knee, is expected to tap into a significant global market opportunity, with ongoing IND enabling studies[108] - AnQlar, a patented intranasal molecular masking spray, aims to serve as an antiviral barrier against SARS-CoV-2 and influenza, with IND enabling studies expected to complete by mid-2022[115][119] Stock and Compensation - The Company established the Amended and Restated 2017 Equity Incentive Plan to grant restricted stock awards as compensation[68] - As of September 30, 2021, the company recognized $22,013 in stock-based compensation for vested restricted shares, compared to $0 in the same period of 2020[69] - For the nine months ended September 30, 2021, stock-based compensation expense totaled $833,034, down 26.8% from $1,138,096 in 2020[75] - The company had 669,067 stock options outstanding as of September 30, 2021, with a weighted average exercise price of $7.75[77] Future Outlook and Strategic Plans - Management believes that current cash is sufficient to fund operations into 2024, but additional financing will be needed for clinical development and commercialization of product candidates[30] - The company plans to continue evaluating strategic transactions to acquire or in-license additional products to enhance its development pipeline[140] - The company expects its existing cash to fund operations and capital requirements into 2024, but additional financing will be needed for clinical development and commercialization[162] Legal and Regulatory - The Company is required to make royalty payments ranging from 5% to 15% of annual net sales of royalty qualifying products under the Nanomerics License Agreement[89] - The Company has entered into multiple research agreements with Yissum, with total research service fees of $81,000 for the May 2019 agreement and $337,500 for the June 2021 agreement[91][94] - The Company retains ownership of all intellectual property rights generated from the Yissum research agreements upon full payment of research service fees[92] Miscellaneous - The impact of the COVID-19 pandemic has introduced significant volatility in financial markets, affecting the company's ability to secure favorable financing terms[163] - The company has no current commitments for material acquisitions or licenses, indicating potential future capital needs[156] - The company has no off-balance sheet arrangements as defined by SEC regulations[165]