Virpax Pharmaceuticals(VRPX) - 2023 Q4 - Annual Report

Operating Expenses - Total operating expenses decreased by $6,155,344, or 28%, to $15,689,789 for the year ended December 31, 2023, compared to $21,845,133 in 2022[413] - Research and development expenses decreased by $5,645,062, or 52%, to $5,117,608 for the year ended December 31, 2023, from $10,762,670 in 2022[414] - General and administrative expenses decreased by $510,282, or 5%, to $10,572,181 for the year ended December 31, 2023, from $11,082,463 in 2022[413] Income and Loss - Other income increased by $305,868, or 157%, to $500,281 for the year ended December 31, 2023, compared to $194,413 in 2022[417] - The company incurred a net loss of $15.2 million for the year ended December 31, 2023, compared to a net loss of $21.7 million for 2022, with an accumulated deficit of $59.5 million as of December 31, 2023[430] Assets and Liabilities - Current assets decreased by $10,045,304, or 51%, to $9,628,345 as of December 31, 2023, from $19,673,649 in 2022[418] - Current liabilities increased by $4,599,434, or 149%, to $7,694,024 as of December 31, 2023, from $3,094,590 in 2022[418] - Working capital decreased by $14,644,738, or 88%, to $1,934,321 as of December 31, 2023, from $16,579,059 in 2022[418] Cash Flow - Cash used in operating activities was $9,853,772 for the year ended December 31, 2023, compared to $17,846,708 in 2022[421] - As of December 31, 2023, the company had cash of approximately $9.1 million, which decreased to approximately $2.5 million by March 22, 2024[431] Litigation and Obligations - The company accrued $6.0 million related to litigation as of December 31, 2023, with $4.0 million recognized for the year ended December 31, 2023[412] - The company is obligated to pay $2.5 million on or before July 1, 2024, as part of a Settlement Agreement, and has already paid $3.5 million[431] Financing and Future Operations - The company has not generated revenues and has not achieved profitable operations since inception, indicating a reliance on external financing for future operations[429] - The primary source of capital has been $15.8 million raised from the initial public offering in February 2021 and $37.0 million from a follow-on offering in September 2021[430] - The company anticipates needing additional financing to fund operations and complete clinical development of product candidates, with no assurance that such financing will be available on acceptable terms[432] - There is substantial doubt about the company's ability to continue as a going concern due to ongoing losses and cash position[431] - The company may need to curtail spending in research and development activities to conserve cash amid uncertainties in capital raising[432] Market Risks - The global macroeconomic environment poses risks, including potential pandemics, trade disputes, and geopolitical instability, which could negatively impact the company's financial condition[434] - The company is subject to risks associated with preclinical stage pharmaceutical development, including the uncertainty of regulatory approvals and commercial viability of products[429] Research and Development - The company plans to commit substantial resources to research and development, preclinical and clinical trials, and potential product acquisitions[419]