Financial Performance - For the six months ended June 30, 2023, the net loss was $82.1 million, compared to a net loss of $5.8 million for the same period in 2022, reflecting a significant increase in operating losses [97]. - The company recorded a pre-tax net loss of $86.3 million for the three months ended June 30, 2023, compared to a pre-tax net loss of $2.0 million for the same period in 2022, indicating a substantial increase in losses [112]. - The company incurred a net loss of $82.1 million for the six months ended June 30, 2023, compared to a net loss of $5.8 million for the same period in 2022, resulting in an accumulated deficit of $87.0 million [128]. Expenses - Research and development expenses for the three months ended June 30, 2023, were $1.2 million, an increase of 69.7% from $0.7 million in the same period in 2022, primarily due to increased manufacturing costs for IC 100 [113]. - General and administrative expenses for the three months ended June 30, 2023, were $3.9 million, a 237.5% increase from $1.2 million in the same period in 2022, driven by stock grants and increased professional fees [114]. - Total operating expenses for the three months ended June 30, 2023, were $86.3 million, a dramatic increase of 4338.6% compared to $1.9 million in the same period in 2022 [112]. - Research and development expenses increased to $2.3 million for the six months ended June 30, 2023, up $0.5 million or 27.4% from the same period in 2022 [119]. - General and administrative expenses rose to $7.5 million, an increase of $4.0 million or 115.4% compared to the prior year, primarily due to stock grants and professional fees [120]. - Impairment of in-process research and development was $69.3 million for the three months ended June 30, 2023, compared to none in the same period in 2022, due to a decline in stock value [115]. - Impairment of in-process research and development and goodwill totaled $69.3 million and $11.9 million, respectively, compared to none in the prior year, reflecting a decline in stock value [121]. Cash Flow and Financing - Net cash used in operating activities was $5.0 million for the six months ended June 30, 2023, compared to $0.7 million in the same period of 2022, driven by a net loss of approximately $82.1 million [124]. - Cash provided by financing activities was negative $0.7 million for the six months ended June 30, 2023, primarily due to the redemption of Series A Preferred Stock [125]. - The company will seek additional financing through public or private equity or debt financings to support its operations, as adequate financing may not be available on acceptable terms [98]. - The company plans to raise additional capital to fund operations and the development of product candidates VAR200 and IC100 [131]. - Future operations depend on successful capital raising efforts, as the current cash balance is only sufficient for month-to-month operational expenses [128]. Current Assets and Liabilities - Current assets decreased to $1.1 million as of June 30, 2023, from $6.4 million at the end of 2022, while current liabilities increased to $10.5 million [127]. - The company had an accumulated deficit of approximately $87.0 million as of June 30, 2023, with cash reserves of only $0.2 million [97]. - The company has significant contractual obligations totaling approximately $10.5 million for accounts payable and accrued expenses as of June 30, 2023 [129]. Future Outlook - The company has not generated any revenue to date and does not expect to do so in the near future, relying on future collaborations or regulatory approvals for potential revenue [99]. - The company anticipates continued significant expenses related to ongoing research and development activities, which are expected to increase as clinical trials progress [103].
ZyVersa Therapeutics(ZVSA) - 2023 Q2 - Quarterly Report