Financial Performance - As of September 30, 2024, the company had an accumulated deficit of $29,918,777 and a net loss of $4,769,774 for the nine months ended September 30, 2024[109]. - As of September 30, 2024, the Company reported a net loss of $1,685,060, a decrease of 16% from the net loss of $2,022,344 in the same period of 2023[135]. - For the nine months ended September 30, 2024, the net loss was $4,769,774, a 29% decrease from $6,739,999 in 2023[143]. - The Company has not generated significant revenue from syringe product sales since its inception in 2017[109]. - The Company has not generated any significant syringe revenue to date[136]. Operational Challenges - The company has faced delays in the commercialization of the Sharps Provensa product line, with no current timeline for final commercialization[116]. - The company had working capital of $67,820, which is insufficient to fund planned operations for the next 12 months, raising substantial doubt about its ability to continue as a going concern[110]. Research and Development - The company has incurred substantial research and development expenses primarily related to its syringe products and plans to continue these efforts[117]. - Research and Development (R&D) expenses for the three months ended September 30, 2024, decreased to $145,611, down 35% from $225,191 in 2023[137]. Revenue Generation and Sales Agreements - The company has produced commercial quantities of its products and built inventory to support orders in late 2024 and in 2025[113]. - A Purchase Order for the first Securegard sales to a South America distributor was shipped in June 2024, marking the company's entry into international markets[114]. - The company entered into a Supply Agreement with Stericare Solutions for the purchase of 520 million units of 10ml polypropylene Sologard syringes, with expected revenues in excess of $50 million[124]. - The company entered into a cooperative sales and distribution agreement with Roncadelle, appointing each other as exclusive distributors in their respective regions[123]. Stock and Financing Activities - The Company approved a reverse stock split at a ratio of 1-for-22, effective October 16, 2024[128]. - The company’s common stock was at risk of delisting from Nasdaq due to non-compliance with listing rules, but a hearing request was filed to appeal the determination[126]. - The Company plans to seek funding through equity offerings and/or debt financing opportunities[150]. - On September 20, 2024, the Company entered into a securities purchase agreement for an aggregate principal amount of $4,375,000[151]. - The Company offered warrant inducements to certain warrant holders, reducing the exercise price from $14.08 to $7.26 per share, resulting in gross proceeds of $1.9 million[154]. - The Company completed two simultaneous offerings on September 29, 2023, receiving aggregate gross proceeds of approximately $5.6 million, net of $716,000 in expenses[155]. - The Shelf Offering generated net proceeds of approximately $2.5 million, with 164,478 shares issued at an adjusted price of $7.26 per share[156]. - The Private Placement yielded net proceeds of approximately $2.4 million, with PIPE Warrants issued to purchase 397,727 shares at an adjusted exercise price of $7.26[157]. - The Offering completed on February 3, 2023, resulted in net proceeds of approximately $3.2 million, with units priced at $37.18, adjusted to $7.26 by May 30, 2024[158]. - The Company's IPO generated net proceeds of approximately $14.2 million, with $9.0 million recorded in Additional Paid in Capital and $5.2 million as a liability under ASC 815[159]. Cash Flow Analysis - Cash balance as of September 30, 2024, was $2,473,197, down from $3,012,908 as of December 31, 2023[149]. - Cash used in operating activities decreased to $5,172,135 for the nine months ended September 30, 2024, from $6,144,937 in the same period of 2023, due to lower operating expenses[159]. - Cash used in investing activities increased to $1,069,659 in 2024, primarily for fixed assets, compared to $431,379 in 2023[160]. - Cash provided by financing activities was $5,707,946 in 2024, down from $8,029,628 in 2023, reflecting various offerings and warrant exercises[161]. - The Company does not have any off-balance sheet arrangements as defined in Regulation S-K Item 303(a)(4)[162].
Sharps Technology(STSS) - 2024 Q3 - Quarterly Report