Financial Performance - Net loss for the nine months ended September 30, 2024, was $4,025,361, compared to a net loss of $939,825 for the same period in 2023, reflecting a year-over-year increase of 328.5%[10] - The company reported a net cash used in operating activities of $(2,798,123) for the nine months ended September 30, 2024, compared to $(397,590) for the same period in 2023, indicating a significant increase in cash outflow[14] - The net loss for the three months ended September 30, 2024, was $(1,656,373), representing a 218.2% increase compared to the same period in 2023[92] - The accumulated deficit increased to $(10,109,984) as of September 30, 2024, from $(6,084,623) on December 31, 2023, representing a deterioration of 66.5%[8] - For the nine months ended September 30, 2024, the net loss was $4,025,361, compared to a net loss of $939,825 for the same period in 2023, resulting in a basic and diluted loss per share of $(0.64) compared to $(0.15) in 2023[60] Revenue and Funding - The company raised gross proceeds of $15,000,000 from its IPO by selling 1,875,000 shares of Common Stock, with net proceeds of approximately $14,321,686 after underwriting costs[18] - The company plans to use the IPO proceeds for expanding production capabilities, staffing, R&D, and repaying approximately $4,392,455 in intercompany loans[18] - The company has received grants from the Department of Energy (64%) and NIH (36%) for the nine months ended September 30, 2024, indicating a reliance on government funding[26] - The Company received a cost share grant of approximately $1,000,000 from the Department of Defense BioMADE initiative for cell-free biomanufacturing of isobutanol[85] - Grants received for the nine months ended September 30, 2024, totaled $1,756,852, compared to $2,180,581 for the same period in 2023, reflecting a decrease of approximately 19.4%[38] Operating Costs - Operating costs for the three months ended September 30, 2024, totaled $1,611,726, significantly higher than $391,846 for the same period in 2023, indicating a rise of 311.5%[10] - Total general and administrative costs for the three months ended September 30, 2024, rose by 144.1% to $888,239[92] - For the nine months ended September 30, 2024, total operating costs rose by 347.7% to $3,948,789, with significant increases in general and administrative costs[93] - Compensation costs for the three months ended September 30, 2024, surged by 358.3% to $546,095 compared to the same period in 2023[92] - Research and development costs for the three months ended September 30, 2024, amounted to $723,487, reflecting a 2,489.8% increase from the previous year[92] Assets and Liabilities - Total current assets increased to $1,422,591 as of September 30, 2024, up from $1,213,614 on December 31, 2023, representing a growth of 17.2%[8] - Total liabilities rose significantly to $7,161,683 as of September 30, 2024, compared to $3,942,828 on December 31, 2023, marking an increase of 81.4%[8] - Cash and cash equivalents increased to $233,935 as of September 30, 2024, from $66,533 at the beginning of the period, showing a growth of 251.5%[14] - Working capital decreased to $(4,379,709) as of September 30, 2024, down from $(1,201,680) at the end of 2023, primarily due to reduced grant reimbursements[101] - Total current liabilities surged by 140.2% to $5,802,300 compared to $2,415,294 at the end of 2023[96] Research and Development - Research and development costs for the nine months ended September 30, 2024, were $1,238,463, compared to $67,095 for the same period in 2023, an increase of 1745.5%[10] - For the nine months ended September 30, 2024, research and development costs before grant offsets totaled $3,046,169, an increase of 30.7% compared to $2,332,503 in 2023[39] - The increase in research and development costs was attributed to higher salaries and lab expenses[95] Stock and Equity - The weighted average of common shares outstanding was 6,251,158 for the nine months ended September 30, 2024, compared to 6,250,002 for the same period in 2023, reflecting a slight increase[10] - The total number of stock options outstanding was 1,752,983, with a weighted average exercise price of $4.57[54] - Stock-based compensation for the nine months ended September 30, 2024, was $808,362, compared to $174,440 in 2023, indicating a significant increase of 363.5%[53] - The unrecognized stock-based compensation as of September 30, 2024, was $4,871,597, indicating potential future expenses related to stock options[53] - The Company executed a simple agreement for future equity (SAFE) with MDB Capital Holdings LLC for $785,000 and with Paul Opgenorth for $15,000, totaling $800,000 funded as of September 30, 2024[81] Legal and Compliance - The company has no pending or threatened legal claims as of September 30, 2024, which may positively impact its operational stability[61] - The company has met all development milestones under its License Agreement with The Regents of the University of California as of September 30, 2024[69] - Payments made to The Regents in connection with the License Agreement totaled $337,847 from 2019 to September 30, 2024[71] Future Outlook - As of September 30, 2024, the company had working capital of approximately $9,941,977, which is expected to be sufficient to pursue operational objectives[19] - The company does not currently expect significant impacts from supply chain issues or inflation on its business activities[63] - Future payments due under operating leases as of September 30, 2024, total $1,733,274, with a weighted average discount rate of 7.88%[80]
Invizyne Technologies Inc(IZTC) - 2024 Q3 - Quarterly Report