Nuvectis Pharma(US:NVCT)2024-08-06 13:20Financial Performance - For the three months ended June 30, 2024, the operating loss was $4,643,000, compared to an operating loss of $5,772,000 for the same period in 2023, representing a 19.6% improvement[13]. - The net loss for the three months ended June 30, 2024, was $4,428,000, compared to a net loss of $5,708,000 for the same period in 2023, indicating a 22.4% reduction in losses[13]. - The company reported a net loss of $8.6 million for the six months ended June 30, 2024, compared to a net loss of $9.8 million for the same period in 2023, representing a 12% improvement[21]. - The net loss for the six months ended June 30, 2024, was $8,599,000, a 12% improvement from a net loss of $9,757,000 for the same period in 2023[21]. - The basic net loss attributable to common stockholders for the three months ended June 30, 2024, was $4.4 million, resulting in a basic net loss per share of $0.26[48]. - Basic net loss per common share for the three months ended June 30, 2024, was $0.26, a decrease from $0.38 in the same period of 2023, indicating a 31.6% reduction in loss per share[48]. - The basic net loss per share for the six months ended June 30, 2024, was $0.51, down from $0.65 in the same period of 2023, showing a 21.5% improvement[48]. - The company recognized a total net loss of $8.599 million for the six months ended June 30, 2024, compared to $9.757 million for the same period in 2023, reflecting a 11.9% reduction[48]. Expenses and Liabilities - Research and development expenses for the six months ended June 30, 2024, were $5,603,000, down from $6,629,000 in the same period of 2023, a decrease of 15.4%[13]. - For the three months ended June 30, 2024, the company recognized $0.5 million in general and administrative expenses and $0.7 million in research and development expenses[46]. - Research and development expenses for the three months ended June 30, 2024, were $2,943,000, a decrease of 31% compared to $4,262,000 for the same period in 2023[13]. - Total current liabilities were $5,770,000, a decrease from $6,984,000 as of December 31, 2023, reflecting a 17.4% reduction[13]. - The total stockholders' equity as of June 30, 2024, was $12,528,000, a decrease from $20,332,000 as of June 30, 2023, indicating a decline of 38%[19]. Capital and Funding - The company will require substantial additional capital to finance its operations and achieve its goals[6]. - The company will need to raise additional capital to complete clinical trials for its product candidates, with no assurance of securing sufficient financing[25]. - The company raised approximately $6.6 million through the sale of 749,338 common shares under its At-the-Market Program during the six months ended June 30, 2024, at an average selling price of $8.78 per share[24]. - The company sold 246,691 common shares under its At-the-Market Program for gross proceeds of approximately $1.7 million during the three months ended June 30, 2024[23]. - As of June 30, 2024, approximately $28.1 million of securities remain available under the At-the-Market Program[40]. - The company has not generated any revenue to date and expects to incur continued losses for the foreseeable future[6]. Workforce and Operations - The company currently has 13 full-time employees and plans to grow its workforce to support its operations[9]. - The company has incurred net operating losses since its inception, highlighting the need for strategic financial planning[23]. - The company has a limited operating history and has only initiated a limited number of clinical trials, which may affect investor evaluation of its business[5]. - The company is dependent on the success of its product candidates, NXP800 and NXP900, for future revenue generation[7]. - The company is dependent on the success of its product candidates, NXP800 and NXP900, which are currently in clinical trials[7]. Stock Options and Awards - As of June 30, 2024, the company had 348,281 stock options outstanding with a weighted average exercise price of $4.59 and an intrinsic value of $606,000[41]. - The company granted 580,527 restricted stock awards (RSAs) during the six months ended June 30, 2024, with a weighted average grant fair value of $8.09[42]. - Total unrecognized compensation cost related to RSAs as of June 30, 2024, was $4.5 million, expected to be recognized over a weighted average period of 1.34 years[43]. - The total share compensation expense for the three months ended June 30, 2024, was $1.2 million, up from $1.0 million in the same period of 2023, marking a 20% increase[46]. - The company excluded 1,588,313 unvested RSAs from the diluted net loss per common share calculation for June 2024, compared to 1,093,613 for June 2023, indicating a significant increase in potentially dilutive securities[50]. Cash Flow and Financial Position - Cash and cash equivalents decreased to $18.1 million as of June 30, 2024, down from $24.6 million at the end of the same period in 2023[21]. - The company has not generated positive cash flows from operations and relies primarily on the issuance and sale of common stock to fund operations[23]. - Management believes that existing cash and cash equivalents will fund planned operations for at least 12 months following the issuance date of the financial statements[24]. - The company experienced a net cash used in operating activities of $7,378,000 for the six months ended June 30, 2024, compared to $8,860,000 for the same period in 2023, showing a 17% reduction[21].