MediciNova(MNOV) - 2024 Q2 - Quarterly Report

Financial Performance - Total operating expenses for the three months ended June 30, 2024, were $3,046,496, a decrease of 7.7% compared to $3,300,030 for the same period in 2023[8]. - The net loss for the three months ended June 30, 2024, was $2,628,200, compared to a net loss of $2,871,820 for the same period in 2023, representing a reduction of 8.5%[8]. - Basic and diluted net loss per common share for the three months ended June 30, 2024, was $0.05, an improvement from $0.06 for the same period in 2023[8]. - Comprehensive loss for the three months ended June 30, 2024, was $2,632,745, compared to $2,876,033 for the same period in 2023, indicating a decrease of 8.5%[8]. - Net loss for the six months ended June 30, 2024, was $5,382,718, compared to a net loss of $5,789,324 for the same period in 2023, representing a decrease of approximately 7.0%[13]. Operating Expenses - Research, development, and patents expenses for the six months ended June 30, 2024, totaled $3,427,918, compared to $3,212,411 for the same period in 2023, reflecting an increase of 6.7%[8]. - General and administrative expenses for the six months ended June 30, 2024, were $2,754,571, down from $3,050,862 in the same period of 2023, a decrease of 9.7%[8]. - Non-cash stock-based compensation for the six months ended June 30, 2024, was $422,885, down from $728,973 in the same period of 2023, a decrease of about 42.0%[13]. - Stock-based compensation expense for the six months ended June 30, 2024, totaled $422,885, a decrease of 42% from $728,973 in the same period of 2023[47]. Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $44,337,824, down from $52,876,271 at the end of June 2023, indicating a decrease of about 16.2%[13]. - The company reported a net cash used in operating activities of $6,679,178 for the six months ended June 30, 2024, compared to $5,560,429 for the same period in 2023, an increase of approximately 20.1%[13]. Equity and Stockholder Information - The total stockholders' equity as of June 30, 2024, was $57,405,154, down from $70,242,035 as of June 30, 2023[9]. - The Company granted 1,100,000 stock options under the 2023 Plan, with a weighted average exercise price of $1.51[46]. - As of June 30, 2024, there were 1,502,923 shares available for future grants under the 2023 Equity Incentive Plan[43]. - The estimated fair value of stock options granted during the six months ended June 30, 2024, was $0.99 per option, compared to $1.60 per option in the same period of 2023[49]. Lease Liabilities - As of June 30, 2024, total operating lease liabilities amounted to $492,530, a decrease from $626,586 as of December 31, 2023, reflecting a reduction of approximately 21.4%[36]. - The Company’s current operating lease liabilities decreased from $215,926 as of December 31, 2023, to $190,047 as of June 30, 2024, reflecting a reduction of approximately 12%[36]. - Cash paid for operating lease liabilities for the six months ended June 30, 2024, was $128,833, compared to $127,391 for the same period in 2023, indicating a slight increase of 1.1%[36]. - The right-of-use asset obtained in exchange for operating lease liability was $42,281 for the six months ended June 30, 2024, compared to $139,001 in the same period of 2023, showing a decrease of about 69.6%[13]. - The weighted-average remaining lease term as of June 30, 2024, was 2.47 years, down from 2.81 years as of June 30, 2023[36]. - The total minimum lease payments for the remaining six months of 2024 are projected to be $109,879[36]. Strategic Focus - The company is focusing on developing MN-166 and MN-001 for various serious diseases, including progressive multiple sclerosis and nonalcoholic fatty liver disease, indicating a strategic emphasis on unmet medical needs[15]. - The company operates in a single segment focused on the acquisition and development of small molecule therapeutics for serious diseases[19]. Accounting and Compliance - The company is currently evaluating the potential impact of new accounting standards on its consolidated financial statements and related disclosures[28]. Investment and Financing - The company had no proceeds from the disposal of investments in the current period, contrasting with $39,929,015 in the previous year, indicating a significant change in investment strategy[13]. - The Company has an at-the-market issuance sales agreement allowing for the sale of common stock up to an aggregate offering price of $75.0 million[50]. - No shares of common stock were sold under the ATM Agreement in the six months ended June 30, 2024 and 2023[51]. Diluted Earnings Per Share - The basic net loss per share is computed using the weighted average number of common shares outstanding during the period[51]. - Diluted net loss per share includes potentially dilutive securities, with 8,431,644 shares excluded for the three and six months ended June 30, 2024 due to anti-dilutive effects[51]. - For the same period in 2023, 8,286,416 shares were excluded from the diluted net loss per share calculation due to anti-dilutive effects[51].