Financial Performance - The net loss for the three months ended September 30, 2024, was $1,929,391, compared to a net income of $4,042,994 in 2023[242]. - The net loss for the nine months ended September 30, 2024, was $21,295,080, compared to a net loss of $1,636,391 in 2023[263]. - There was no revenue from operations during the three months and nine months ended September 30, 2024, and 2023[243][263]. - Other income (expense), net for the three months ended September 30, 2024, was $103,762, a significant decrease from $7,885,582 in 2023[242]. - The company incurred a total net loss attributable to stockholders of $24,025,339 for the nine months ended September 30, 2024[286]. Operating Expenses - Operating expenses are anticipated to increase significantly as the Company progresses through clinical trials for MYMD-1 and Supera-CBD[236]. - Total operating expenses for the three months ended September 30, 2024, were $1,825,639, a decrease of 52.5% compared to $3,842,588 for the same period in 2023[242]. - Total operating expenses for the nine months ended September 30, 2024, were $7,979,907, a decrease of 34.5% compared to $12,214,539 in 2023[263]. - General and administrative expenses were $1,104,130 for the three months ended September 30, 2024, a reduction of 17.2% compared to $1,334,690 in 2023[244]. - Total general and administrative expenses decreased to $3,192,762 for the nine months ended September 30, 2024, from $4,202,594 in the same period of 2023, representing a reduction of approximately 24%[265]. Research and Development - The Company is focused on developing MYMD-1 for age-related illnesses and Supera-CBD for conditions like epilepsy and pain[228]. - MYMD-1 is currently being evaluated in patients with sarcopenia, with positive clinical data from its Phase II trial supporting its safety profile[228]. - The Company is exploring non-dilutive opportunities to evaluate MYMD-1 in additional indications not previously considered[228]. - Total research and development expenses decreased to $2,307,789 for the nine months ended September 30, 2024, from $4,907,196 in the same period of 2023, a decline of approximately 53%[270]. - Development program costs decreased by $1,659,742 during the nine months ended September 30, 2024, primarily due to the completion of a Phase II study[271]. Funding and Cash Flow - The Company anticipates needing substantial additional funding to support ongoing operations and growth strategy[235]. - Cash flows used in operating activities for the nine months ended September 30, 2024, were $8,212,233, primarily due to a net loss of $21,296,800[289]. - Cash flows used in operating activities for the nine months ended September 30, 2023, were $11,047,995, with a net loss of $1,636,391[290]. - Net cash consumed by investing activities for the nine months ended September 30, 2024, totaled $7,202,955, compared to $4,088,466 for the same period in 2023[292]. - Net cash provided by financing activities during the nine months ended September 30, 2024, was $13,926,528, down from $14,685,689 in 2023[293]. Stock and Preferred Shares - A 1-for-30 reverse stock split was executed on February 14, 2024, reducing the number of authorized shares from 500 million to 16.67 million[229]. - The Series F Preferred Shares have a dividend rate of 10% per annum, which increases to 15% during a Triggering Event[302]. - The Series F Conversion Price was adjusted to $1.816 per share due to anti-dilution provisions[297]. - The Series F Warrants have an exercise price of $1.816 per share after adjustments, with a total of 8,259,911 shares issuable upon exercise[304]. - The Company entered into a Series F-1 Private Placement, selling 5,050 shares of Series F-1 Preferred Stock convertible into 2,780,839 shares of Common Stock at a conversion price of $1.816 per share[307]. Intellectual Property and Publications - The Company has significant intellectual property coverage for MYMD-1 and Supera-CBD, which is crucial for protecting its product candidates[228]. - The Company is preparing several scientific papers for publication in 2024 related to its product candidates[228]. Management and Governance - Management believes that the company's current financial resources are sufficient to fund its operating budget and contractual obligations for the next twelve months[288]. - The Company is subject to certain covenants regarding the incurrence of indebtedness and payment of dividends[303]. - The Company is subject to litigation and claims in the ordinary course of business, which may require future litigation to defend proprietary rights[333].
TNF Pharmaceuticals, Inc.(TNFA) - 2024 Q3 - Quarterly Report