Financial Performance - The company reported a net loss of $3,784,082 for the three months ended September 30, 2024, compared to a net loss of $1,792,754 for the same period in 2023, representing an increase of 111%[103] - For the nine months ended September 30, 2024, the company reported a net loss of approximately $7.5 million with no revenues, and a working capital deficit of approximately $1.3 million[115] - Cash used in operating activities for the nine months ended September 30, 2024, was $4.6 million, a 3% increase from $4.5 million in the same period of 2023[122] Expenses - Research and development (R&D) expenses for the three months ended September 30, 2024, were $1,400,564, an increase of 34% from $1,045,177 in the same period in 2023[103] - Legal and professional expenses surged by 358% to $1,322,002 for the three months ended September 30, 2024, compared to $288,416 in the prior year[107] - The company’s total operating expenses for the three months ended September 30, 2024, were $3,051,561, a 91% increase from $1,599,146 in the same period in 2023[103] - For the nine months ended September 30, 2024, legal and professional expenses increased by 117% to $2,323,013 compared to $1,072,728 in the same period in 2023[113] Capital and Funding - The company raised $3.9 million in net cash from an equity offering in October 2024, issuing 2.9 million shares and warrants with an exercise price of $1.40[116] - The company completed an offering of senior secured convertible bridge notes in October 2024, receiving $790,000 in cash, which is not expected to be sufficient to fund operations through the next twelve months[116] - The company has incurred significant expenses related to the Phase II clinical trial of Ropidoxuridine, necessitating additional capital to complete the trial and fund ongoing operations[118] Working Capital and Assets - As of September 30, 2024, total current assets were $0.4 million, a decrease of 94% from $5.6 million as of December 31, 2023, while current liabilities increased by 59% to $1.7 million[121] - The company has a working capital deficiency of $1.3 million as of September 30, 2024, compared to a working capital of $4.6 million as of December 31, 2023, indicating a substantial decline[121] - Cash on hand as of September 30, 2024, was $156,652, a decrease of 96% from $3.9 million at the end of 2023[122] Compliance and Regulatory Matters - The company reported stockholders' equity of $801,434 as of June 30, 2024, which is below the Nasdaq minimum requirement of $2,500,000[100] - The company executed a 1-for-8 reverse stock split on August 13, 2024, to meet Nasdaq listing requirements[98] - The company submitted a plan to Nasdaq on October 15, 2024, to regain compliance with the minimum stockholders' equity standard[102] Clinical Development - The company has commenced its Phase II clinical study of Ropidoxuridine, enrolling the first three patients in October 2024[97] Internal Controls and Legal Matters - The company has identified material weaknesses in its internal controls over financial reporting, leading to the need for restatements of its 2023 and 2022 financial statements[140] - The company has engaged a third-party consulting firm to assist with SEC reporting and technical accounting matters to address identified weaknesses[141] - The company is not currently involved in any legal proceedings that could materially affect its business or financial condition[142] - The company maintains insurance policies deemed adequate based on business risks and historical experience[142]
Shuttle Pharmaceuticals (SHPH) - 2024 Q3 - Quarterly Report