Financial Position - As of March 31, 2025, the company had cash on hand of $73,244 and marketable securities totaling $5,801,531, with a net loss attributable to stockholders of $1,938,239 for the three months ended March 31, 2025[237]. - The company has an accumulated deficit of $131,076,525 as of March 31, 2025[237]. - Cash on hand decreased from $225,655 in Q1 2024 to $73,244 in Q1 2025, while marketable securities increased from $1,509,358 to $5,805,331[272]. - Net cash used in operating activities was $2,640,240 in Q1 2025, compared to $1,757,199 in Q1 2024[274]. Operating Performance - The company reported a net loss of $1,124,743 for the three months ended March 31, 2025, compared to a net loss of $9,800,041 for the same period in 2024[254]. - The company incurred a net loss attributable to stockholders of $1,938,239 in Q1 2025, compared to a net loss of $11,001,908 in Q1 2024[272]. - Total operating expenses for the three months ended March 31, 2025, were $2,471,834, a decrease from $2,784,623 in the same period of 2024, with research and development expenses increasing to $1,545,513 from $1,198,938[254]. Research and Development - The company is focused on developing Isomyosamine and Supera-CBD, with significant anticipated expenses related to clinical trials and commercialization efforts[240]. - Total research and development expenses increased from $1,198,938 in Q1 2024 to $1,545,513 in Q1 2025, an increase of approximately 29%[262]. - Development program costs rose by $470,883, from $888,538 in Q1 2024 to $1,359,421 in Q1 2025, related to drug product production and clinical trials[263]. - The company anticipates significant increases in operating expenses as it progresses through clinical trials for its product candidates[244]. Funding and Capital Structure - The company plans to seek additional funding through private equity or debt financings to support its operations and growth strategy[237]. - The Company received net proceeds of approximately $5.0 million from the Series F-1 Private Placement, intended for general corporate purposes[295]. - The Company received net proceeds of approximately $8.9 million from the Series G Private Placement, intended for general corporate purposes[309]. - The Series F Conversion Price was adjusted to $0.364 per share as of March 31, 2025, reflecting anti-dilution provisions[280]. Shareholder and Stock Information - The company received a Nasdaq deficiency letter on March 17, 2025, indicating it did not meet the minimum bid price requirement of $1.00 per share[238]. - The Company is required to redeem the Series F Preferred Shares in 12 equal monthly installments starting July 1, 2023, with payments either in cash or shares of Common Stock valued at the lower of the Series F Conversion Price or a Floor Price of $6.60[282]. - The holders of the Series F Preferred Shares are entitled to dividends of 10% per annum, compounded monthly, increasing to 15% per annum upon a Triggering Event[288]. - The Series G Preferred Shares will accrue dividends at a rate of 15% per annum during a Triggering Event, with total dividends recorded of $559,032 for the year ended December 31, 2024[313]. Administrative and Personnel Expenses - Total administrative expenses decreased from $1,068,320 in Q1 2024 to $841,685 in Q1 2025, a reduction of approximately 21.3%[256]. - Personnel costs decreased by $79,440, from $190,071 in Q1 2024 to $110,631 in Q1 2025, reflecting staff reductions[257]. - Professional services costs decreased by $179,034, from $416,365 in Q1 2024 to $237,331 in Q1 2025, primarily due to non-recurring expenses[258]. - Stock market and investor relations costs increased by $73,605, from $104,547 in Q1 2024 to $178,152 in Q1 2025[259]. Accounting and Estimates - Critical accounting estimates include fair-market value of preferred stock and stock-based compensation, which may materially affect financial statements[326][328]. - The Company’s financial position and results are influenced by accounting policies, which are detailed in the consolidated financial statements[327]. - Management's estimates are based on historical experience and known trends, with potential for material changes in future results[328]. - There have been no material changes to critical accounting estimates since the last Annual Report filed on April 11, 2025[329].
TNF Pharmaceuticals, Inc.(TNFA) - 2025 Q1 - Quarterly Report