Financial Performance - The company reported a net loss of $22,492,573 for the six months ended June 30, 2024, with cash reserves of $91,223 as of the same date, raising concerns about its ability to continue operations beyond one year [180]. - For the three months ended June 30, 2024, the company generated revenue of $44,276, a decrease of 80% compared to $220,978 for the same period in 2023 [182]. - The company incurred a loss from operations of $5,975,981 for the three months ended June 30, 2024, compared to a loss of $4,234,437 for the same period in 2023, reflecting an increase of 41% in operational losses [182]. - As of June 30, 2024, the company had an accumulated deficit of $150,024,555 and working capital of $(19,058,995) [184]. - The company expects to incur additional net expenses over the next several years as it continues to maintain and expand its operations, with future profitability remaining uncertain [181]. - The company raised approximately $9 million from a private placement that closed on September 6, 2023, which was used for outstanding obligations and working capital [184]. Research and Development - Adimune, Inc. is advancing its proprietary immune modulation product candidate, ADI-100, which has shown success in preclinical models for autoimmune diseases and is set to begin human trials for Stiff Person Syndrome in the first half of 2024 [164]. - Pearsanta, Inc. aims to revolutionize personalized medicine with a platform for lab-quality testing, targeting a clinical and consumer diagnostic market projected to reach $429.3 billion by 2030 [169]. - The Mitomic® Technology Platform, acquired from MDNA, focuses on non-invasive, blood-based liquid biopsies to detect diseases through mitochondrial DNA, enhancing early diagnosis and treatment [171]. - The Mitomic® Endometriosis Test (MET™) aims to provide accurate, non-invasive diagnosis of endometriosis, potentially reducing the diagnostic delay of around ten years [172]. - The Mitomic® Prostate Test (MPT™) seeks to improve detection of clinically significant prostate cancer, reducing reliance on PSA testing and avoiding unnecessary procedures [172]. - AditxtScore™ technology is being developed to provide a comprehensive profile of the immune system, with the potential to detect individual immune responses to various agents [173]. - The company has entered into a license agreement with Loma Linda University for the exclusive worldwide commercialization of ADI nucleic acid-based technology, which is currently in the preclinical stage [168]. - Adivir, Inc. is focused on developing innovative antiviral products to address a range of infectious diseases, collaborating with Appili to advance a diverse pipeline of anti-infectives [177]. Operational Challenges - The company is currently over 90 days past due on several vendor obligations and requires significant additional capital to fund clinical studies and normal operations [180]. - A fee of $1,000,000 was paid to Evofem as part of an amendment to a merger agreement, impacting general and administrative expenses significantly [182]. - The company will need significant additional capital to fund operations and clinical trials, with future financing dependent on market conditions [186]. Internal Controls and Compliance - The company is in the process of remediating material weaknesses in its internal controls over financial reporting [195]. - The company did not maintain adequate controls over the documentation of accounting and financial reporting policies, leading to material misstatements in financial statements [195]. - Material weaknesses identified include insufficient procedures for account reconciliations and the identification and cutoff of accounts payable [195]. - No changes occurred in internal control over financial reporting that materially affected the company's reporting during the quarter ended June 30, 2024 [196]. - The company is in the process of remediating identified material weaknesses in internal controls [195]. Legal Risks - The company may become involved in various lawsuits and legal proceedings, which could adversely affect its business [197].
Aditx Therapeutics(ADTX) - 2024 Q2 - Quarterly Report