Financial Performance - The net loss for the six months ended June 30, 2025, was $4.22 million, compared to a net loss of $2.37 million for the same period in 2024, indicating an increase in losses of approximately 77.9%[10] - Total operating costs for the six months ended June 30, 2025, were $4.50 million, up from $2.34 million in 2024, reflecting an increase of approximately 92.7%[10] - The company reported no operating income for the three and six months ended June 30, 2025, consistent with the previous year[10] - The Company incurred net losses of $4,216,707 and $2,368,988 for the six months ended June 30, 2025 and 2024, respectively, indicating a year-over-year increase in losses of approximately 77%[21] - For the six months ended June 30, 2025, the net loss was $4,216,708, compared to a net loss of $2,368,988 for the same period in 2024, resulting in a basic and diluted loss per share of $(0.50) compared to $(0.38) in 2024[73] Assets and Equity - As of June 30, 2025, total assets decreased to $9.68 million from $13.03 million as of December 31, 2024, representing a decline of approximately 25.5%[8] - Stockholders' equity decreased to $7.24 million as of June 30, 2025, from $10.42 million at the end of 2024, a decline of approximately 30.5%[8] - Cash and cash equivalents decreased to $6.99 million as of June 30, 2025, from $9.72 million at the end of 2024, a reduction of about 28.1%[15] - Cash and cash equivalents held by the Company as of June 30, 2025, amounted to $6,985,858, with approximately $6,735,858 exceeding FDIC insured limits[35][37] Research and Development - Research and development costs for the six months ended June 30, 2025, were $1.38 million, compared to $514,977 in 2024, marking an increase of approximately 168.5%[10] - For the six months ended June 30, 2025, research and development costs amounted to $2,268,677, an increase of 23.8% from $1,832,855 in the same period of 2024[49] - The Department of Energy contributed 98% and the NIH contributed 2% of all grant reimbursements for the six months ended June 30, 2025, highlighting a concentration of funding sources[30] - The Company established a wholly owned subsidiary, NCTx LLC, focused on developing N-trans-caffeoyltyramine, a rare plant-derived compound[20] Grants and Funding - Grants received for the six months ended June 30, 2025, totaled $864,433, down 32.0% from $1,272,127 in 2024[47] - The balance of grants receivable at the end of the period decreased significantly to $257,407 in 2025 from $1,147,171 in 2024, representing a decline of 77.5%[46] - The Company recognizes grant reimbursements from the Federal government as offsets against research and development expenses, with no allowance for credit losses recorded[44][45] Stock and Compensation - The weighted average number of common shares outstanding for the six months ended June 30, 2025, was 8,372,564, compared to 6,250,557 in 2024, an increase of approximately 33.9%[10] - The company incurred stock-based compensation expenses of $884,531 for the six months ended June 30, 2025, compared to $491,085 in 2024, an increase of approximately 80%[15] - Stock-based compensation for the six months ended June 30, 2025, was $640,753, up 30.4% from $491,085 in 2024[65] - The company has unrecognized stock-based compensation of $3,194,925 as of June 30, 2025[65] Operational Highlights - The company had no revenue reported for the three and six months ended June 30, 2025, indicating a continued focus on development rather than sales[10] - The company operates as a single reportable operating segment focused on the research and commercialization of exozyme biosolutions[54] - The company has not generated revenue from operations, remaining in a pre-revenue status[21] Lease and Liabilities - As of June 30, 2025, the company had total operating lease liabilities of $1,264,863 and finance lease liabilities of $129,593[95] - The company recognized operating lease expenses of $187,265 for both the six months ended June 30, 2025, and 2024[96] - The company executed a lease for new office space with an initial base rent of $13,277 per month, which will increase annually[87] Future Outlook - The Company has sufficient working capital for the near term but faces substantial doubt about its ability to continue as a going concern due to anticipated funding shortfalls[21] - The company plans to issue stock options to purchase 235,817 shares at an exercise price of $12.69 per share, which will vest over four years[98] - On July 1, 2025, the company was awarded a $3 million share of a $9.2 million grant from the U.S. National Science Foundation aimed at enhancing cell-free systems[99]
Invizyne Technologies Inc(IZTC) - 2025 Q2 - Quarterly Report