ZyVersa Therapeutics(ZVSA) - 2023 Q1 - Quarterly Report

Financial Performance - ZyVersa Therapeutics reported a net loss of $3,543,950 for the three months ended March 31, 2023, compared to a net loss of $3,748,495 for the same period in 2022, reflecting a decrease of 5.5%[77][90] - The company incurred a net loss of $3.5 million for the three months ended March 31, 2023, compared to a net loss of $3.7 million for the same period in 2022, with an accumulated deficit of $8.5 million as of March 31, 2023[100] - Total other income (expense), net was $1,000 for the three months ended March 31, 2023, a significant improvement from a net expense of $380,000 in the same period of 2022[94] Operating Expenses - Total operating expenses for the Successor Period were $4,592,000, an increase of 36.3% from $3,368,000 in the Predecessor Period[90] - General and administrative expenses increased to $3,536,000 for the three months ended March 31, 2023, up by 53.7% from $2,301,000 in the prior year, primarily due to higher costs in insurance and marketing[92] - Research and development expenses remained consistent at approximately $1,056,000 for the three months ended March 31, 2023, with a slight decrease of 1.0% from $1,067,000 in the same period of 2022[91] Cash Flow and Liquidity - Net cash used in operating activities was $4,589,000 for the three months ended March 31, 2023, compared to $374,000 for the same period in 2022[96] - The company had an accumulated deficit of approximately $8.5 million as of March 31, 2023, with cash reserves of $1.3 million[77] - As of March 31, 2023, current assets were $2.835 million, down from $6.363 million in 2022, while current liabilities increased to $8.578 million from $8.188 million, resulting in a working capital deficiency of $5.743 million compared to $1.825 million in 2022[98] - Cash requirements for current liabilities as of March 31, 2023, include approximately $8.6 million for accounts payable and accrued expenses[101] Future Financing and Development Plans - The company has not generated any revenue to date and does not expect to do so in the near future, relying on future financing to support operations[79][78] - The company expects to seek additional financing through public or private equity or debt financings to support ongoing operations[78] - The company plans to raise additional capital through equity or equity-linked securities to fund continued development of its product candidates[104] - The company plans to continue increasing research and development expenses as it advances its product candidates VAR 200 and IC 100[81] - Future operating cash and capital requirements will depend on various factors, including clinical trial costs and regulatory requirements[107] - The company intends to commit substantial resources to research and development, clinical trials, and potential product acquisitions to grow its business over the long term[108] Regulatory and Compliance - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay compliance with new accounting standards[110] - There are no off-balance sheet arrangements that could materially affect the company's financial conditions or results of operations[113] - The company anticipates needing additional financing to fund operations and product development, with no assurance that such financing will be available on favorable terms[100]