Mainz Biomed(US:MYNZ)2025-03-31 21:23Accounting Standards and Financial Reporting - The new accounting standard effective from January 1, 2027, is expected to shift certain performance measures and cash flow categorizations but will not materially affect overall financial disclosure [550]. - The company assesses the impacts of new accounting standards but does not expect material effects from the amendments to IFRS 9 and IFRS 7 effective January 1, 2026 [550][552]. - The company has not recognized deferred tax assets due to uncertainty around utilizing all of the losses carry-forwards, which totaled $2,475,532 in deferred tax assets as of December 31, 2024 [19]. Revenue and Cost of Revenue - For the years ended December 31, 2024, 2023, and 2022, the cost of revenue was $319,108, $385,820, and $347,726 respectively, indicating a decrease of 17.3% from 2023 to 2024 [565]. - The company recognizes revenue from genetic diagnostic tests upon the satisfaction of performance obligations, with revenue recorded upon delivery to laboratory partners and end users [561][563]. - The company’s revenue from genetic diagnostic tests is primarily derived from sales to laboratory partners and direct sales to patients [561][563]. Assets and Liabilities - The company’s functional currency is the Euro (EUR), while the presentation currency is the US dollar [576][580]. - Trade receivables decreased from $121,735 in 2023 to $33,577 in 2024, with a net allowance for doubtful accounts of $28,180 [601]. - Inventory decreased from $670,471 in 2023 to $372,870 in 2024, with a significant inventory write-down of $186,339 recorded in 2024 due to expiration of raw materials [602]. - Property and equipment net book value decreased from $1,702,317 in 2023 to $1,365,144 in 2024, with depreciation expense increasing to $319,446 in 2024 from $202,983 in 2023 [605]. - As of December 31, 2024, the company recorded lease liabilities of $1,146,127, down from $1,454,186 in 2023, with current liabilities of $280,145 and long-term liabilities of $865,982 [619]. - The company’s financial liabilities as of December 31, 2024 totaled $5,949,546 due within one year [685]. Impairment and Allowance - The company has not recognized any impairment in its consolidated financial statements for the years ended December 31, 2024, 2023, and 2022 [556]. - The company recorded an impairment loss of $47,449 on construction in progress due to the project being on hold with no future use planned [606]. - The company recorded a reduction in allowance for doubtful accounts of $28,180 in 2024, compared to $38,672 in 2023 [601]. - The company recognized bad debt reserve of $16,261 for VAT receivables in 2024, down from $53,295 in 2023 [603]. - The Company incurred bad debt expenses of ($11,919) in 2024, compared to $14,357 in 2023 [682]. Research and Development - Research and development expenditures are recognized in profit or loss as incurred, while development costs are capitalized only if certain criteria are met [566][567]. - Research and development expenses decreased by 39.1% from $9,590,393 in 2023 to $5,839,033 in 2024 [20]. Financing and Capital Structure - The Company issued a total of four Promissory Notes with principal amounts of $5,500,000, $5,500,000, $3,300,000, and $1,500,000, receiving net amounts of $5,060,000, $5,060,000, $2,970,000, and $1,350,000 respectively [627][628][629]. - The Initial Promissory Note had an original issue discount of $440,000, recorded at a fair value of $5,060,000, while the Second Promissory Note was recorded at a fair value of $5,008,000 [634]. - The Company incurred default interest of 15% per annum starting November 2023, and made principal payments totaling $1,100,000 during November and December 2023 [635]. - The Company recorded a change in fair value of $2,039,622 for the year ended December 31, 2024, resulting in a balance of $1,021,000 as of December 31, 2024 [637]. - The Company raised approximately $8,000,000 in gross proceeds from the sale of 1,367,521 units at an offering price of $5.85 per unit, with net proceeds of $7.2 million after expenses [649]. Stock and Shareholder Information - The Company issued 7,691 ordinary shares under a Controlled Equity Offering in 2023, generating net proceeds of $1,894,742 at an average price of $246.4 per share [645]. - As of December 31, 2024, the Company had 3,905,208 outstanding warrants with an average exercise price of $5.38 and an intrinsic value of $4,945,104 [654]. - The Company granted 3,000 stock options valued at $914,861 during the year ended December 31, 2024, with an exercise price ranging from $12.0 to $24.8 [662][665]. - The estimated fair value of stock options granted in 2024 was based on an expected average volatility of 106% to 113% and a risk-free interest rate of 3.8% to 4.22% [665]. Management and Personnel - Key management personnel remuneration for the year ended December 31, 2024, was $1,113,370, compared to $1,647,186 in 2023 [666]. - The company experienced a significant reduction in employee stock option expense from $3,266,702 in 2023 to $149,510 in 2024, a decrease of approximately 95.4% [21]. - The company restructured operations in 2024, focusing on the ColoAlert business and reducing personnel by 65%, resulting in severance expenses of $277,160 [674]. Government Grants and Related Party Transactions - The Company received government grants totaling $46,087 and $27,741 for research and development projects in 2024 and 2023, respectively [676]. - Revenue from related party sales reached $61,569 in 2024 following the sale of the European Oncology Lab business [675]. Overall Financial Performance - For the year ended December 31, 2024, the company reported a net loss of $21,650,663, compared to a net loss of $26,344,492 in 2023, indicating a 17.5% improvement year-over-year [19]. - Total operating expenses for the year ended December 31, 2024, were $6,581,333 for sales and marketing, $5,839,033 for research and development, and $6,572,765 for general and administrative, reflecting a total operating expense of $19,993,131 [20][21][22].