NeuroSense Therapeutics(NRSN) - 2025 Q2 - Quarterly Report

Financial Performance - The company reported a net loss of $4,709,000 for the six months ended June 30, 2025, compared to a net loss of $6,261,000 for the same period in 2024, indicating an improvement of about 24.8%[3] - Research and development expenses decreased from $3,733,000 in the six months ended June 30, 2024, to $2,503,000 in the same period of 2025, a reduction of approximately 33.1%[3] - Cash and cash equivalents at the end of the period decreased to $666,000 from $3,378,000 at the beginning of the period, a decline of approximately 80.3%[7] - Shareholders' equity turned from a positive $2,583,000 as of December 31, 2024, to a deficit of $519,000 as of June 30, 2025[2] Assets and Liabilities - Total current assets decreased from $4,402,000 as of December 31, 2024, to $1,556,000 as of June 30, 2025, representing a decline of approximately 64.7%[2] - The total liabilities increased from $1,992,000 as of December 31, 2024, to $2,203,000 as of June 30, 2025, reflecting an increase of about 10.6%[2] Shareholder Activity - The weighted average number of shares outstanding increased from 16,773,806 in 2024 to 25,402,649 in 2025, an increase of approximately 51.7%[3] - The Company entered into a Capital on Demand Sales Agreement with JonesTrading, allowing for the sale of ordinary shares with an aggregate offering price of up to $2,556 thousand, with $1,410 thousand already sold as of February 21, 2025[16] - During the six-month period ended June 30, 2025, the Company sold 708,952 ordinary shares at an average gross sales price of $1.45 per share, generating aggregate gross proceeds of $1,031 thousand[16] - Under the Standby Equity Purchase Agreement with Yorkville, the Company can sell up to $30.0 million of ordinary shares over 36 months, with 175,000 shares sold at an average gross price of $1.85 per share, resulting in gross proceeds of $323 thousand during the same period[17] - The Company granted 295,512 RSUs to consultants and service providers, with a fair value estimated at $275 thousand[18] - The Company issued 180,000 ordinary shares following the exercise of vested RSUs during the six-month period ended June 30, 2025[20] - The Company issued 14,000 ordinary shares following the exercise of options during the six-month period ended June 30, 2025[20] Compensation and Expenses - The share-based compensation expense for research and development was $18 thousand for the six months ended June 30, 2025, compared to $154 thousand for the same period in 2024[21] - The total share-based compensation expense for general and administrative purposes was $288 thousand for the six months ended June 30, 2025, compared to $152 thousand for the same period in 2024[21] - The options granted to employees have an exercise price of $0.93 per share and vest quarterly over three years[19] - The expected volatility for the options granted was 92.06%, with a risk-free interest rate of 4.38%[19] Business Focus - The company has no products approved for sale and has generated no sales or revenues to date, indicating a pre-revenue status[9] - The company anticipates needing additional cash to fund its mid and long-term development program, highlighting the need for external financing[9] - The company is focused on developing treatments for neurodegenerative diseases, with its lead product candidate being PrimeC, a combination of two FDA-approved drugs[8]