Drug Development - Enveric's lead drug candidate, EB-003, is in preclinical development with an IND filing expected soon[284]. - The company has synthesized over 1,000 novel molecules from its Psybrary™, which includes 20 patent families covering a million potential molecular structures[281]. - Enveric executed a licensing agreement with MycoMedica for the EVM201 program, receiving an upfront payment of $20,000 and potential milestones totaling up to $62 million[287]. Financial Performance - The Company incurred a net loss of $9,574,987 for the year ended December 31, 2024, compared to a net loss of $17,291,732 in 2023[306]. - The Company has an accumulated deficit of $106,074,505 as of December 31, 2024, with further losses anticipated[316]. - The company reported a net loss adjusted for non-cash items of $7,302,896 for 2024, down from $13,919,661 in 2023, reflecting an improvement of approximately 47%[321][322]. Cash Flow and Liquidity - Cash on hand at December 31, 2024, was $2,241,026, which is insufficient to meet operating cash needs for the next 12 months[317]. - The Company had operating cash outflows of $7,726,139 for the year ended December 31, 2024[316]. - Net cash used in operating activities was $7,726,139 for the year ended December 31, 2024, compared to $14,094,411 for the year ended December 31, 2023, indicating a decrease of approximately 45%[321][322]. Expenses Management - Total operating expenses decreased to $9,632,266 for the year ended December 31, 2024, down from $16,448,440 in 2023, a reduction of approximately 41%[306]. - General and administrative expenses decreased by $2,398,516, or 27%, primarily due to reductions in consulting expenses, salaries, and stock compensation[307]. - Research and development expenses decreased by $4,411,165, or approximately 61%, to $2,841,272 for the year ended December 31, 2024[309]. Stock and Equity - A reverse stock split of 1-for-15 was executed on January 27, 2025, with trading on a split-adjusted basis starting January 29, 2025[285]. - The company issued 159,366 shares through the Lincoln Park Purchase Agreement for gross cash proceeds of $1,083,709 in 2024[293]. - Enveric's equity line with Lincoln Park allows for the purchase of up to $10 million of common stock, subject to certain limitations[292]. Agreements and Partnerships - The company entered into a Distribution Agreement with Canaccord Genuity for an aggregate offering price of up to $10 million, with gross sales of $2,392,502 recorded in 2024[289][291]. - The company is soliciting RFPs for its PsyAI™ trademark portfolio, with the period open until August 31, 2025[282]. - Enveric has entered into several non-binding term sheets to out-license certain molecules from the Psybrary™[283]. Currency and Risk Management - The company is exposed to foreign currency exchange rate risk due to transactions in Canadian and Australian dollars, with the reporting currency being the U.S. dollar[327]. - The company has not entered into any financial derivative instruments to hedge against foreign currency risks but may consider such strategies in the future[328]. Liabilities and Financial Position - The decrease in accounts payable and accrued liabilities was $834,630 in 2024, compared to a decrease of $103,848 in 2023, indicating a larger reduction in liabilities[321][322]. - An increase in due to related parties of $232,891 was noted in 2024, contrasting with a decrease in prepaid expenses of $178,496[321]. Accounting Estimates - The company’s critical accounting estimates involve significant uncertainty, particularly in fair value assessments of common stock and stock-based compensation[326]. - The company plans to evaluate its estimates on an ongoing basis to ensure accuracy in financial reporting[326].
Enveric Biosciences(ENVB) - 2024 Q4 - Annual Report