Virpax Pharmaceuticals(VRPX) - 2022 Q4 - Annual Report

Financial Performance - Total operating expenses increased by 82% to $21,845,133 for the year ended December 31, 2022, compared to $12,025,500 in 2021[378]. - Cash used in operations was $17,846,708 for the year ended December 31, 2022, compared to $14,542,592 in 2021, reflecting an increase in net loss[386]. - The company incurred a net loss of $21,650,720 for the year ended December 31, 2022, compared to a net loss of $12,056,063 for 2021, resulting in an accumulated deficit of $44,354,627 as of December 31, 2022[394]. - The company has not generated revenues and has not achieved profitable operations, indicating a reliance on future capital raises for ongoing operations[393]. - The company has not generated positive cash flow from operations and anticipates incurring additional losses until significant revenue can be generated from product candidates[394]. - The auditors have expressed substantial doubt about the company's ability to continue as a going concern due to ongoing losses and litigation uncertainties[395]. Research and Development - Research and development expenses rose by 122% to $10,762,670 for the year ended December 31, 2022, from $4,839,115 in 2021, primarily due to increased preclinical activity and milestone payments[380]. - The company plans to commit substantial resources to research and development, preclinical and clinical trials, and potential product acquisitions[384]. - The company is subject to risks associated with being a preclinical stage pharmaceutical company, including substantial expenditures for research and development[393]. Operating Expenses - Significant increases in general and administrative expenses were driven by legal costs, salaries, and insurance, totaling $11,082,463 for 2022[378]. - Current assets decreased to $19,673,649 as of December 31, 2022, from $39,572,436 in 2021, while current liabilities increased to $3,094,590 from $2,087,691[384]. - The company operates under a six-month operating lease for its office facilities, indicating a commitment to ongoing operational costs[399]. Financing and Capital Requirements - No financing activities occurred in 2022, following significant capital raised in 2021 from public offerings totaling $51,329,788[387]. - Future capital requirements may necessitate raising additional funds through equity or debt financing, as no committed external sources are currently available[391]. - Additional financings will be necessary to fund operations, including litigation costs and clinical development of product candidates, with no assurance that such financing will be available on acceptable terms[396]. - The company raised a total of $52,782,672 from its initial public offering in February 2021 and an underwritten public offering in September 2021, net of issuance costs[394]. Economic and Market Risks - The global macroeconomic environment poses risks such as instability in economic markets and geopolitical tensions, which could negatively impact the company's financial condition and liquidity[397]. - The company expects to incur substantial additional operating losses for at least the next several years as it develops product candidates[390].