MediciNova(MNOV) - 2020 Q3 - Quarterly Report

Financial Performance - The company reported a net loss applicable to common stockholders of $3.70 million for the three months ended September 30, 2020, compared to a net loss of $2.38 million for the same period in 2019, indicating an increase in loss of approximately 55.5%[22] - For the nine months ended September 30, 2020, the net loss was $10,868,608, a slight improvement from a net loss of $10,957,570 in the same period of 2019, representing a decrease of approximately 0.8%[29] - Basic and diluted net loss per common share for the three months ended September 30, 2020, was $0.08, compared to $0.05 for the same period in 2019, representing a 60% increase in loss per share[22] - The company expects to incur substantial net losses for the next several years as it continues to develop its product pipeline[67] Assets and Cash Flow - As of September 30, 2020, total assets decreased to $77.29 million from $79.21 million as of December 31, 2019, representing a decline of approximately 2.4%[20] - Cash and cash equivalents decreased to $61.66 million as of September 30, 2020, from $63.79 million as of December 31, 2019, a reduction of approximately 3.3%[20] - Cash and cash equivalents at the end of the period were $61,661,341, down from $62,872,907 at the end of the same period in 2019, reflecting a decrease of approximately 1.9%[29] - As of September 30, 2020, the company had cash and cash equivalents of $61.7 million and working capital of $60.8 million, sufficient to fund operations at least through the end of 2021[89] Expenses - Total operating expenses for the nine months ended September 30, 2020, were $11.16 million, slightly down from $11.81 million for the same period in 2019, reflecting a decrease of about 5.5%[22] - Research, development, and patents expenses for the three months ended September 30, 2020, were $2.24 million, up from $1.15 million in the same period of 2019, indicating an increase of approximately 94.3%[22] - Research and development costs for the nine months ended September 30, 2020, totaled $5.4 million, an increase of 35% compared to $4.0 million for the same period in 2019[38] - General and administrative expenses decreased to $5.5 million for the nine months ended September 30, 2020, down from $7.6 million in 2019, a reduction of $2.1 million primarily due to lower stock compensation expenses[82] Stock and Equity - The total stockholders' equity as of September 30, 2020, was $73.55 million, a slight decrease from $74.89 million as of December 31, 2019, reflecting a decline of about 1.8%[20] - The company issued 68,952 shares under at-the-market equity distribution and sales agreements, netting approximately $412,692[25] - The company raised $6,735,401 from the issuance of common stock and related activities during the nine months ended September 30, 2020, compared to $7,257,028 in the same period of 2019, indicating a decrease of about 7.2%[29] - The company has 7,510,387 stock options outstanding as of September 30, 2020, with a weighted average exercise price of $5.68[51] COVID-19 Impact - The company is actively monitoring the impact of COVID-19 on its business and does not expect a material negative impact on its clinical development plans or liquidity[41] - The COVID-19 pandemic has negatively impacted the global economy and disrupted supply chains, affecting the company's financial condition and operations[100] - The extent of the pandemic's impact on the company's liquidity and future results remains uncertain and depends on future developments[100] - An extended period of economic disruption could materially affect the company's access to liquidity and overall financial condition[100] Clinical Development - The company continues to focus on the development of its BC-PIV vaccine for COVID-19 and other therapeutics for serious diseases, maintaining a strategic emphasis on the U.S. market[32] - The company has seen an increase in patient visits for clinical trials compared to earlier in the COVID-19 pandemic, indicating a recovery in clinical trial activities[41] - The company has continued routine clinical trial activities during the COVID-19 pandemic, including submitting an Investigational New Drug Application (IND) for MN-166 (ibudilast)[70] - The company plans to advance the development of MN-166 (ibudilast) through various clinical trials, including those funded by government grants[68] Revenue and Collaborations - The company has not recognized any revenue from its collaboration agreement with Kissei Pharmaceutical Co., Ltd. for the three and nine months ended September 30, 2020 and 2019[46] - The company intends to pursue strategic partnerships with leading pharmaceutical companies to support the development and commercialization of its products[69]