Financial Performance - For the three months ended March 31, 2024, total operating expenses were $1,380,345, an increase of 8% from $1,274,871 in the same period of 2023[152]. - The net loss before taxes for Q1 2024 was $3,553,162, a 94% increase compared to a net loss of $1,828,715 in Q1 2023[152]. - Other expenses, net, increased significantly to $2,172,817 in Q1 2024 from $553,844 in Q1 2023, primarily due to unfavorable changes in the fair value of the Forward Purchase Agreement[156]. - Net cash used in operating activities for Q1 2024 was $(1,075,778), an increase of $599,819 compared to Q1 2023, primarily due to cash used in AxoBio's operations of $1,033,586[163][164]. - Net cash used in financing activities was $(195,726) for Q1 2024, compared to net cash provided of $375,000 in Q1 2023, reflecting a decrease of $570,726[166]. Expenses Breakdown - Research and development expenses decreased by 42% from $740,325 in Q1 2023 to $429,420 in Q1 2024, reflecting a strategic realignment towards aesthetic products with near-term commercial potential[154]. - General and administrative expenses rose by 82% from $510,445 in Q1 2023 to $927,394 in Q1 2024, primarily due to increased insurance costs and personnel expenses[155]. - The company incurred $748,796 in costs related to the AxoBio Disposition during the three months ended March 31, 2024[165]. Cash Position and Debt - The company had cash of $892,161 and an accumulated deficit of $61,774,360 as of March 31, 2024, raising substantial doubt about its ability to continue as a going concern[150]. - As of March 31, 2024, the company had outstanding indebtedness totaling $736,577, with $375,000 of Promissory Notes maturing and repaid through the issuance of 115,820 shares of Common Stock[162]. Strategic Initiatives - The company plans to launch a line of cosmetic skincare products in the second quarter of 2024, utilizing technologies developed through its research and development efforts[159]. - The company anticipates that revenue from the commercialization of its cosmetic skincare products will assist in extending its cash runway[159]. - The company is exploring out-licensing certain research and development programs to generate non-dilutive liquidity[159]. Legal and Compliance Issues - The company is facing a legal complaint from Puritan, claiming damages totaling $2,725,000 related to breaches of obligations under Convertible Notes and Warrants[167][168]. - The company qualifies as an "emerging growth company" and has opted not to "opt-out" of the extended transition period for new accounting standards[170]. - The company is classified as a "smaller reporting company," with a market value of stock held by non-affiliates less than $700 million and annual revenue below $100 million[171]. Disposition and Gains - The AxoBio Disposition closed on March 26, 2024, resulting in a non-cash gain of $1,534,479 due to changes in the fair value of stock consideration[157].
ALPHA HEALTHCARE(ALPA) - 2024 Q1 - Quarterly Report