CNS Pharmaceuticals(CNSP) - 2025 Q1 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Financial Statements Presents CNS Pharmaceuticals' unaudited financial statements, detailing financial position, performance, and cash flows for Q1 2025 Balance Sheets | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $13,047,592 | $6,461,378 | | Total current assets | $13,722,026 | $8,658,508 | | Total Assets | $13,749,315 | $8,700,943 | | Total current liabilities | $2,779,193 | $2,524,332 | | Total Liabilities | $2,779,193 | $2,524,332 | | Total Stockholders' Equity (Deficit) | $10,970,122 | $6,176,611 | - The company's cash and cash equivalents significantly increased from $6.46 million at December 31, 2024, to $13.05 million at March 31, 2025, representing a 102% increase[7] - Total assets grew by approximately 58% from $8.70 million to $13.75 million, while total stockholders' equity increased by approximately 78% from $6.18 million to $10.97 million over the three-month period[7] Statements of Operations | Operating Expense | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------ | :-------------------------------- | :-------------------------------- | | General and administrative | $1,094,755 | $1,114,442 | | Research and development | $3,242,905 | $2,430,412 | | Total operating expenses | $4,337,660 | $3,544,854 | | Net loss | $(4,301,320) | $(3,544,748) | | Loss per share - basic | $(1.58) | $(1,020.48) | | Loss per share - diluted | $(1.58) | $(1,020.48) | - Net loss increased by approximately 21.3% from $(3.54 million) in Q1 2024 to $(4.30 million) in Q1 2025[9] - Research and development expenses increased by approximately 33.4% year-over-year, from $2.43 million to $3.24 million, primarily due to costs associated with data clean-up, preparation, and analysis for the Berubicin trial's topline primary data release[9][70] - General and administrative expenses slightly decreased by 1.8% from $1.11 million to $1.09 million[9][69] Statements of Stockholders' Equity (Deficit) | Metric | December 31, 2024 | March 31, 2025 | | :-------------------------- | :---------------- | :------------- | | Common Stock Shares | 1,413,556 | 2,944,381 | | Common Stock Amount | $1,414 | $2,945 | | Additional Paid-in Capital | $90,599,901 | $99,693,201 | | Accumulated Deficit | $(84,424,704) | $(88,726,024) | | Total Stockholders' Equity | $6,176,611 | $10,970,122 | - The company issued 1,530,985 shares of common stock for cash, net, contributing $9,033,021 to additional paid-in capital during the three months ended March 31, 2025[12] - Stockholders' equity increased significantly from $6.18 million at December 31, 2024, to $10.97 million at March 31, 2025, primarily driven by common stock issuances[12] Statements of Cash Flows | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(3,241,907) | $(3,192,057) | | Net cash provided by financing activities | $9,828,121 | $3,458,562 | | Net change in cash and cash equivalents | $6,586,214 | $266,505 | | Cash and cash equivalents, at end of period | $13,047,592 | $815,226 | - Net cash provided by financing activities increased substantially from $3.46 million in Q1 2024 to $9.83 million in Q1 2025, primarily due to proceeds from equity issuance[15][77] - Cash and cash equivalents at the end of the period surged from $815,226 in Q1 2024 to $13.05 million in Q1 2025[15] Notes to the Financial Statements This section provides detailed explanations of the company's financial position, performance, and significant accounting policies Note 1 – Nature of Business - CNS Pharmaceuticals, Inc. is a clinical pharmaceutical company focused on developing anti-cancer drug candidates, organized in Nevada on July 27, 2017[17] - The company effected two 1-for-50 reverse stock splits, one on June 4, 2024, and another on February 21, 2025, with retroactive adjustments made throughout the financial statements[18][19] Note 2 – Summary of Significant Accounting Policies - The financial statements are unaudited and prepared in accordance with U.S. GAAP for interim information, and should be read in conjunction with the Form 10-K for the period ended December 31, 2024[20] - The company's continuation as a going concern is dependent on obtaining additional equity financing, as it has a history of negative cash flows and net losses, raising substantial doubt about its ability to continue operations[21] - As of March 31, 2025, the company held $12,797,592 in cash balances at financial institutions in excess of the federally insured limit of $250,000[22] - The company manages its operations as a single segment, with the CEO acting as the Chief Operating Decision Maker[26] Note 3 – Note Payable - As of March 31, 2025, the company's note payable balance was $210,673, down from $326,072 at November 18, 2024, for a short-term note bearing 9.24% interest to finance insurance policies, with final payment due October 8, 2025[27] Note 4 – Equity - The company increased its authorized common stock from 75,000,000 to 300,000,000 shares on May 2, 2024, and completed two 1-for-50 reverse stock splits effective June 4, 2024, and February 21, 2025[28][30][32] - Through the AGP ATM Sales Agreement, the company sold 1,530,985 shares of common stock for approximately $9 million in net proceeds during Q1 2025, bringing total sales under the agreement to 2,522,758 shares for $22.8 million as of March 31, 2025[33] Stock-based Compensation Expense | Type | Three Months Ended March 31, 2025 | Three Months Ended March 31