Financial Performance - ZyVersa Therapeutics reported a net loss of $2,826,737 for Q1 2024, a decrease of 20.2% compared to a net loss of $3,543,950 in Q1 2023[76] - Total operating expenses for Q1 2024 were $2,827,000, down 38.4% from $4,592,000 in Q1 2023[88] - Research and development expenses decreased by 51.4% to $513,000 in Q1 2024 from $1,056,000 in Q1 2023, primarily due to lower manufacturing costs and payroll[89] - General and administrative expenses were $2,314,000 in Q1 2024, a decrease of 34.6% from $3,536,000 in Q1 2023, attributed to reduced payments and accruals[90] - Net cash used in operating activities was $3.8 million for Q1 2024, compared to $4.6 million for Q1 2023, reflecting a decrease of $812,000[92] - Net cash provided by financing activities was $2.7 million in Q1 2024, a significant increase from a net cash used of $35,000 in Q1 2023[93] Financial Position - As of March 31, 2024, ZyVersa had an accumulated deficit of approximately $106.0 million and cash of $2.0 million[76] - Current assets as of March 31, 2024, were $2,900,000, while current liabilities were $9,583,000, resulting in a working capital deficiency of $6,683,000[94] - As of March 31, 2024, the company has approximately $9.6 million in current liabilities for accounts payable and accrued expenses[96] Future Outlook - The company has not generated any revenue since inception and anticipates continued operating losses until significant revenue can be generated from product candidates[78] - ZyVersa expects to require additional financing to support ongoing operations and development activities, with no assurance that such financing will be available on acceptable terms[77] - The company expects to incur substantial additional operating losses for at least the next several years as it continues to develop product candidates and seek marketing approval[100] - Future capital needs will depend on various factors, including the initiation and progress of clinical trials for product candidates[101] Strategic Plans - The company plans to commit substantial resources to research and development, clinical trials, and potential product acquisitions to grow its business over the long term[102] - The company intends to raise additional capital through equity, equity-linked securities, or debt in subsequent offerings[98] - If the company raises additional funds through collaboration and licensing arrangements, it may need to relinquish valuable rights to its technologies or future revenue streams[103] - The company has no current arrangements for acquisitions or in-licensing but continues to evaluate strategic relationships with established pharmaceutical companies[102] Compliance and Governance - The company expects to incur significant costs related to compliance with corporate governance and internal controls as a public company[100] - There are no off-balance sheet arrangements that materially affect the company's financial conditions or results[107] Investment Strategy - The company’s cash equivalents will primarily be invested in money market funds to preserve principal balance and provide liquidity[99]
ZyVersa Therapeutics(ZVSA) - 2024 Q1 - Quarterly Report