Financial Performance - The company reported a net loss of $4,730,000 for the three months ended March 31, 2020, compared to a net loss of $2,464,000 for the same period in 2019, indicating an increase in loss of approximately 91.8%[10]. - Total operating expenses for Q1 2020 were $4,749,000, up from $2,451,000 in Q1 2019, reflecting an increase of approximately 93.6%[10]. - The company reported a comprehensive loss of $4,764,000 for the three months ended March 31, 2020, compared to a comprehensive loss of $2,466,000 for the same period in 2019[10]. - The company expects to continue incurring net losses and negative cash flows from operations into the foreseeable future, raising substantial doubt about its ability to continue as a going concern[40]. - The company has experienced net losses and negative cash flows from operating activities since inception, relying on debt and equity financings to fund operations[40]. Assets and Liabilities - As of March 31, 2020, total assets decreased to $11,535,000 from $14,468,000 as of December 31, 2019, representing a decline of approximately 20.2%[8]. - Total current assets decreased from $14,118,000 as of December 31, 2019, to $11,211,000 as of March 31, 2020, a decline of approximately 20.5%[8]. - Total liabilities increased from $2,176,000 as of December 31, 2019, to $3,795,000 as of March 31, 2020, an increase of approximately 74.4%[8]. - Cash and restricted cash at the end of Q1 2020 totaled $9,814,000, down from $13,923,000 at the beginning of the period, marking a decrease of approximately 29.5%[15]. - The company had $9.8 million in cash as of March 31, 2020, which is expected to fund operations through the first quarter of 2021[37][41]. Research and Development - Research and development expenses for Q1 2020 were $2,152,000, compared to $1,800,000 in Q1 2019, an increase of approximately 19.6%[10]. - The company is considering marketing NB-01 as a nutraceutical product and may conduct feasibility studies for a rare disease relevant to NB-01[25]. - The company plans to postpone the first human clinical trials for NB-02 until global health conditions improve, aiming to commence in Q1 2021[26]. - The company has directed its CRO partners to cease all work on Phase 3 clinical trials for NB-01 due to difficulties in the short to medium term[24]. - The company is supporting activities to lift the FDA's partial clinical hold on Gemcabene and is exploring trial opportunities in China[27]. Stock and Financing - The company raised a total of $16.8 million from the issuance of Series A redeemable convertible preferred stock and $24.2 million from Series B redeemable convertible preferred stock in 2019[38]. - The company raised $7.5 million in gross proceeds from a registered direct offering of 750,000 shares at $10 per share on April 16, 2020[129]. - The company has a weighted average of 15,670,800 common shares outstanding for Q1 2020, compared to 5,166,812 shares in Q1 2019, indicating a substantial increase in shares outstanding[10]. - The company’s stockholders may experience significant dilution if additional funds are raised through equity securities[41]. - The company has not recognized any revenue under the Beijing SL Agreement as of March 31, 2020[90]. Agreements and Commitments - The company agreed to make milestone payments totaling up to $37 million under the Pfizer Agreement, contingent on achieving specific milestones[79]. - The Beijing SL Agreement includes a non-refundable upfront payment of $2.5 million, received in October 2019, with additional milestone payments totaling up to $26 million possible[92]. - Future minimum payments under the cultivation service agreement with Xiehecheng are projected to total $572,000 from 2020 to 2022[77]. - The company has committed up to $1 million to support the further development of Gemcabene under the Contingent Value Rights Agreement[70]. - The exclusive license agreement with Pfizer for Gemcabene includes milestone and royalty payments on future sales[78]. Expenses and Liabilities - Accrued liabilities increased to $2,411,000 as of March 31, 2020, up from $1,422,000 in the previous year, primarily due to external research and development expenses[66]. - The Company incurred approximately $675,000 in termination expenses related to contract research organizations (CROs) during the first quarter of 2020[66]. - The New Boston Lease has a monthly rental cost of $21, with total minimum lease payments projected at $214,000 through December 31, 2020[73]. - The total lease liabilities recognized on the consolidated balance sheet as of March 31, 2020, amounted to $111,000, with a long-term portion of $89,000[76]. - The New Boston Lease and Boston Lease expenses totaled $115,000 for the three months ended March 31, 2020, including a termination fee of $83,000[73].
NeuroBo Pharmaceuticals(NRBO) - 2020 Q1 - Quarterly Report