PharmaCyte Biotech(PMCB) - 2025 Q2 - Quarterly Report

Financial Performance - Net loss for the three months ended October 31, 2024, was $1,469,560 compared to a net income of $2,789,896 for the same period in 2023[17]. - The company reported a comprehensive loss of $(1,469,499) for the three months ended October 31, 2024, compared to a comprehensive income of $2,788,305 for the same period in 2023[18]. - The company reported net cash used in operating activities of $(1,428,032) for the six months ended October 31, 2023, compared to $(1,641,395) in the prior period[28]. - Net income for the six months ended October 31, 2023, was $21,951,795, compared to a net loss of $(393,401) in the prior period[28]. - The company reported a net loss attributable to common stockholders of $2,958,875 for the three months ended October 31, 2024, compared to a net loss of $2,258,087 for the same period in 2023[90]. - For the six months ended October 31, 2024, the Company achieved a net income of $21,951,795, contrasting with a net loss of $393,401 for the same period in 2023[92]. Assets and Liabilities - Total current assets decreased from $50,439,768 in April 2024 to $21,333,269 in October 2024, a decline of approximately 58.7%[13]. - Total liabilities decreased significantly from $20,389,264 in April 2024 to $11,647,238 in October 2024, representing a reduction of about 42.9%[13]. - Cash and cash equivalents decreased from approximately $50.2 million at April 30, 2024, to $20.8 million as of October 31, 2024[45]. - Working capital was approximately $17 million as of October 31, 2024, compared to approximately $43 million as of April 30, 2024[175]. Stockholder Equity - Total stockholders' equity increased from $27,647,603 in April 2024 to $43,451,146 in October 2024, an increase of approximately 57.1%[13]. - As of October 31, 2023, total stockholders' equity stands at $36,767,508, reflecting a net loss of $3,183,297 for the period[21]. - The company issued 35,000 shares of Series B Preferred Stock, resulting in an increase of $16,753,075 in preferred stock equity[21]. - The total stockholders' equity increased to $47,708,370 by July 31, 2024, indicating positive financial momentum[24]. Expenses - Total operating expenses for the three months ended October 31, 2024, were $1,106,060, down from $1,409,520 in the same period of 2023, a decrease of about 21.5%[17]. - Total operating expenses for the six months ended October 31, 2024, were $2,374,947, a decrease of 31.8% compared to the same period in 2023[162]. - The company reported interest income of $382,562 for the three months ended October 31, 2024, compared to $894,181 for the same period in 2023, a decline of approximately 57.3%[17]. - Other income (expenses), net for the three months ended October 31, 2024, was $(363,500), a significant decline from $4,199,416 in the same period in 2023[165]. - Other income (expenses), net for the six months ended October 31, 2024, was $24,326,742, compared to $3,091,445 for the same period in 2023[166]. Research and Development - Research and development costs increased to $97,470 for the three months ended October 31, 2024, up from $82,033 in the same period of 2023, reflecting a growth of approximately 18.2%[17]. - The company is focused on developing therapies for locally advanced, inoperable pancreatic cancer using its proprietary Cell-in-a-Box technology[31]. - The FDA placed the company's Investigational New Drug Application on clinical hold, requiring additional preclinical studies and data submissions[32][39]. - The company has curtailed spending on its programs pending the completion of a review by the Business Review Committee and the Board[34][38]. Capital and Financing - The company may need to raise additional capital to support ongoing and future projects, which could be dilutive to current stockholders[46]. - The Company entered into a Securities Purchase Agreement to purchase $5,000,000 in senior unsecured convertible notes from Femasys, convertible at a price of $1.18 per share[57]. - The company invested $7 million in preferred stock and warrants during the six months ended October 31, 2023[28]. - The company invested $7 million in TNF Pharmaceuticals, Inc. for acquiring shares and warrants[171]. Legal and Regulatory Matters - The company is currently involved in a legal proceeding with H.C. Wainwright & Co., LLC, seeking damages of not less than $1,950,000[200]. - The Company intends to vigorously defend against a breach of contract complaint filed by H.C. Wainwright, seeking damages of not less than $1,950,000[77]. - The FDA has placed the Company's IND on clinical hold since October 1, 2020, requiring additional studies and data to lift the hold[139]. Internal Controls and Compliance - The company identified two material weaknesses in its internal controls: insufficient segregation of duties and insufficient management review controls[195]. - The company’s disclosure controls and procedures were found to be ineffective as of October 31, 2024, due to material weaknesses in internal control over financial reporting[191]. - The company has determined that its investment in preferred stock is a Variable Interest Entity (VIE) but is not the primary beneficiary[184]. Miscellaneous - The company has not issued any shares during the three months ended October 31, 2024[203]. - The company has curtailed spending on development programs until the Strategic Scientific Committee completes its evaluation of its programs[134]. - The fair value of the company's convertible preferred stock and warrants is estimated using models that incorporate various market assumptions, including equity volatility and risk-free interest rates[182][185].