Financial Performance - The net loss for the three months ended June 30, 2024, was approximately $3.0 million, a slight improvement compared to a net loss of $3.1 million in the same period in 2023[130]. - Revenue for the six months ended June 30, 2024, was $0.05 million, compared to no revenue in the same period of 2023[136]. - Net loss for the six months ended June 30, 2024, was approximately $9.9 million, compared to a net loss of $5.7 million in the same period of 2023, representing an increase in loss of $4.2 million[138]. - The company expects to continue incurring losses and negative cash flows due to increased general and administrative expenses and ongoing product research and development[143]. Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $6.3 million, an increase of $3.2 million from $3.1 million in the same period in 2023[130]. - General and administrative expenses were approximately $5.3 million, an increase of approximately $2.5 million compared to the same period in 2023[131]. - Research and development expenses for the three months ended June 30, 2024, were approximately $0.4 million, an increase of approximately $0.3 million compared to the same period in 2023[133]. - General and administrative expenses increased to approximately $11.8 million for the six months ended June 30, 2024, up by approximately $6.4 million from $5.4 million in 2023[137]. - Total operating expenses for the six months ended June 30, 2024, were approximately $13.2 million, an increase of $7.5 million compared to $5.7 million in 2023[138]. Cash Flow and Financing - Cash used in operating activities for the six months ended June 30, 2024, was approximately $8.6 million, primarily due to a net loss of approximately $9.9 million[157]. - Cash provided by financing activities during the six months ended June 30, 2024, was approximately $8.5 million, consisting primarily of proceeds from the sale of Common Stock[160]. - The company entered into a private placement in May 2024, raising approximately $5.0 million through the issuance of 1,980,000 shares of Common Stock[147]. - Cash used in investing activities during the six months ended June 30, 2024, was approximately $0.1 million, mainly for capitalized internal-use software costs[159]. - The net cash inflow from changes in operating assets and liabilities was approximately $1.0 million, driven by a $3.6 million increase in accounts payable[157]. Debt and Liabilities - The company reported a gain on debt extinguishment of approximately $1.8 million for the three months ended June 30, 2024, related to the settlement of accounts payable[134]. - Gain on debt extinguishment for the six months ended June 30, 2024, was approximately $1.8 million, with no such gain reported in 2023[141]. - Change in fair value of warrant liabilities for the three months ended June 30, 2024, was approximately $1.5 million, reflecting a non-cash charge[135]. - Change in fair value of warrant liabilities for the six months ended June 30, 2024, was approximately $1.4 million, with no such expenses incurred in 2023[142]. - The company has outstanding loans totaling approximately $0.9 million, with varying interest rates and maturity dates, all assumed in the acquisition of DM Lab in May 2023[153]. Company Status and Future Outlook - The company has not generated any significant revenue to date, as it remains in the development stage[122]. - The company expects to incur significant operating costs impacting future profitability, including research and development expenses and general administrative expenses[121]. - As of June 30, 2024, the company had cash of approximately $1.4 million and an accumulated deficit of approximately $23.2 million[143]. - The company has no off-balance sheet financing arrangements as of June 30, 2024[164]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards[165].
DHC Acquisition (DHCA) - 2024 Q2 - Quarterly Report