Revenue and Profitability - Revenue for the three months ended September 30, 2024, was $406,859, compared to $0 for the same period in 2023, representing a significant increase[22]. - Gross profit for the nine months ended September 30, 2024, was $395,130, with total operating expenses of $27,738,007, leading to a loss from operations of $27,342,877[22]. - The net loss for the three months ended September 30, 2024, was $3,827,405, compared to a net loss of $5,346,908 for the same period in 2023[22]. - The net loss for the nine months ended September 30, 2024, was $5,346,908, compared to a net loss of $14,306,704 for the same period in the previous year[24]. - For the nine months ended September 30, 2024, the company reported a net loss of $29,252,681 compared to a net loss of $15,058,822 for the same period in 2023[28]. Assets and Liabilities - Total current assets decreased to $1,047,939 as of September 30, 2024, from $5,838,271 as of December 31, 2023[19]. - Total liabilities decreased slightly to $20,896,798 as of September 30, 2024, from $21,877,471 as of December 31, 2023[19]. - The company reported an accumulated deficit of $86,038,875 as of September 30, 2024, compared to $56,786,194 as of December 31, 2023[19]. - The total stockholders' equity increased to $41,022,620 as of September 30, 2024, from $1,404,476 as of December 31, 2023[19]. - As of September 30, 2024, the company had cash of approximately $341,495, down from $7,653,975 at the end of the previous period[28]. - The company has a working capital deficit of approximately $16.3 million and an accumulated deficit of approximately $86.0 million as of September 30, 2024[41]. Stock and Equity - The weighted average number of common shares outstanding for the three months ended September 30, 2024, was 1,306,146, compared to 438,039 for the same period in 2023[22]. - The company had a total of 8,326,281 common stock shares outstanding as of September 30, 2024[24]. - Stock-based compensation for the nine months ended September 30, 2024, amounted to $272,781[24]. - The total additional paid-in capital as of September 30, 2024, was $119,563,869[24]. - The Company issued 2,696,729 shares of Series B Convertible Preferred Stock, convertible into approximately 6,741,820 shares of common stock upon Stockholder Approval obtained on September 5, 2024[192]. - The Company has authorized the issuance of up to 250,000,000 shares of common stock and 10,000,000 shares of preferred stock as of September 30, 2024[185]. Impairments and Adjustments - The company incurred a total of $15,453,000 in goodwill impairment and $3,530,716 in impairment of ENTADFI assets during the current reporting period[28]. - The company recorded approximately $1.5 million in acquisition-related costs during 2023, which were expensed[142]. - The Company recorded an impairment charge of approximately $14.7 million on the ENTADFI asset group during the fourth quarter of 2023, along with a $1.2 million impairment on acquired inventory[109]. - The company recognized a cumulative impairment charge of $15.5 million related to goodwill for the nine months ended September 30, 2024, with a balance of $38.9 million as of September 30, 2024[90][92]. Acquisitions and Strategic Moves - On December 15, 2023, the company acquired 100% of Proteomedix AG, enhancing its capabilities in prostate cancer diagnosis[32]. - The company has paused the commercialization of ENTADFI and is exploring strategic alternatives, including a potential sale of the ENTADFI assets[34]. - The Company acquired ENTADFI for a total possible consideration of $100 million, with initial consideration of $20 million paid upon closing and additional payments scheduled for 2024[96][97]. - The Company entered into an asset purchase agreement with WraSer for $3.5 million in cash at signing and $4.5 million in cash at closing, along with 25,000 shares of common stock and a $500,000 payment one year post-closing[113]. Financing and Cash Flow - The company entered into an Equity Financing Line of Credit (ELOC) on October 2, 2024, to address its cash flow needs[41]. - The company recorded a net cash used in investing activities of $24,597 for the current period, significantly lower than $9,864,613 in the previous period[28]. - Management plans to secure additional funding through equity or debt financings, but current ELOC funds are insufficient to sustain operations[42]. - The Company executed three non-interest-bearing notes payable totaling $14.0 million, with maturity dates ranging from September 30, 2023, to September 30, 2024[152]. Future Outlook and Risks - The company has significant uncertainty regarding its ability to sustain operations due to historical and expected operating losses, with no commitments for further financing[43]. - The company may need to curtail future clinical trials and product development if additional capital is not secured[42]. - The Company is in the process of finalizing the initial accounting for the business combination, with a deadline of December 15, 2024, for completing the measurement period[129]. Miscellaneous - The company operates in one segment: commercial, with performance evaluated by the chief operating decision maker[47]. - The company has no new accounting pronouncements that could significantly affect its financial statements, except for upcoming disclosures required by FASB[69]. - The Company recorded a change in fair value of the related party subscription agreement liability of approximately $928,000 for the three months ended September 30, 2024[183].
Blue Water Biotech(BWV) - 2024 Q3 - Quarterly Report