Financial Position - As of March 31, 2025, the company reported an accumulated deficit of $143,892,576 and working capital of $86,956[172]. - Current cash balance is expected to fund operations only until December 2025 without additional capital[175]. - The company has no credit facility or committed sources of capital, indicating potential liquidity challenges[215]. Operating Performance - For the three months ended March 31, 2025, the company incurred a net loss of $2,369,232 and cash used in operating activities was $853,723[172]. - Net loss increased by $1,299,488 or 121%, from $1,069,744 in Q1 2024 to $2,369,232 in Q1 2025[209]. - Cash used in operating activities was $853,723 in Q1 2025 compared to $1,033,417 in Q1 2024[211]. - Total other income decreased by $1,018,988 or 100%, from $1,022,724 in Q1 2024 to $3,736 in Q1 2025[208]. Capital Requirements - The company has a minimum monthly cash requirement of approximately $252,000[174]. - The company anticipates needing significant additional capital to operationalize its Gaming Technology Platform and cover operating costs[174]. - The company has raised capital multiple times between July 2022 and December 2024 but faces uncertainty in raising future funds[172]. - The company raised approximately $2.7 million in April 2023 and expects to continue as a going concern through December 2025[216]. - The company intends to use net proceeds of approximately $2.6 million from a recent offering for working capital and general corporate purposes[226]. Business Development - The company is focused on developing and commercializing its iGaming casino and biotechnology products, facing regulatory and operational challenges[160]. - The Company plans to enter the online gaming industry by utilizing a newly acquired "back-end" gaming platform that incorporates blockchain technology and cryptocurrency operability[179]. - The acquisition of the gaming platform was completed on September 30, 2024, involving 1,000,000 shares of Series B Convertible Preferred Stock and warrants for 3,000,000 shares of common stock[180]. - The Company has identified potential acquisition opportunities in the iGaming industry, although no specific targets currently exist[181]. Research and Development - Research and development costs for the iGaming sector will depend on the commercial potential of the proposed online casino and industry dynamics[195]. - Research and development expenses decreased by $124,281 or 34%, from $365,186 in Q1 2024 to $240,905 in Q1 2025[205]. - Research and development expenses related to parties decreased by $35,087 or 21%, from $170,542 in Q1 2024 to $135,455 in Q1 2025[206]. - The Company has terminated its license agreement with Stanford University for the α7nAChR platform, shifting focus to monetizing existing life science assets[188]. Administrative Expenses - General and administrative expenses are expected to increase significantly to support ongoing research and development and the launch of commercial iGaming operations[199]. - General and administrative expenses increased by $439,868 or 28%, from $1,556,740 in Q1 2024 to $1,996,608 in Q1 2025[207]. Risks and Challenges - The company is subject to risks associated with the development of new business in a competitive industry and may not achieve profitable operations[173]. - The company has experienced liquidity issues and may need to issue equity to fund operations and repay debt[175]. - The company relies on third parties for clinical trials and manufacturing, which may affect its ability to generate revenues[160]. - Changes in fair value of derivative liabilities during the reporting period were driven by increases in stock price, affecting the underlying liability's fair value[203]. - The company recognized an impairment loss of $1,526,542 for its licensed R&D patents and related technology assets due to a strategic shift towards blockchain casino technology assets acquired in September 2024[228]. - Management believes that recently issued accounting pronouncements will not have a material effect on the company's unaudited condensed consolidated financial statements[229]. - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[230].
180 LIFE SCIENCE(ATNFW) - 2025 Q1 - Quarterly Report