MediciNova(MNOV) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2025, were $123,319, compared to $0 for the same period in 2024, indicating a significant increase[17]. - The net loss for the nine months ended September 30, 2025, was $9,195,678, compared to a net loss of $8,234,897 for the same period in 2024, representing an increase in loss of about 11.7%[17]. - The segment and consolidated net loss for the nine months ended September 30, 2025, was $(9,195,678), compared to $(8,234,897) for the same period in 2024[30]. - Revenues for the three months ended September 30, 2025, were $0.1 million, an increase from $0.0 million in 2024, attributed to the agreement with Mayo[79]. - Revenues for the nine months ended September 30, 2025, were $0.3 million, an increase from $0.0 million in 2024, attributed to the Mayo agreement[84]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $10,448,518, up from $9,491,617 in 2024, reflecting a year-over-year increase of approximately 10.1%[17]. - Total operating expenses for the three months ended September 30, 2025, were $3,504,317, an increase from $3,309,128 in 2024, resulting in an operating loss of $(3,380,998) for 2025[30]. - General and administrative expenses increased to $1.8 million for the three months ended September 30, 2025, from $1.4 million in 2024, primarily due to upfront costs associated with the SEPA[82]. - General and administrative expenses increased to $4.6 million in 2025 from $4.2 million in 2024, primarily due to SEPA fees and professional expenses[87]. Cash and Assets - Cash and cash equivalents decreased to $32,562,612 as of September 30, 2025, down from $40,359,738 at the end of 2024, a decline of approximately 19.3%[16]. - Total assets decreased to $47,578,388 as of September 30, 2025, from $55,875,926 at December 31, 2024, a reduction of about 15%[16]. - The Company had $32.6 million in cash and cash equivalents as of September 30, 2025, which is expected to meet funding requirements for at least the next 12 months[27]. - As of September 30, 2025, available cash and cash equivalents were $32.6 million, with working capital of $29.6 million, sufficient to fund operations at least through November 2026[90]. Equity and Stock Options - The company’s total stockholders' equity decreased to $43,964,756 as of September 30, 2025, from $52,503,551 at December 31, 2024, a decline of about 16.3%[16]. - The accumulated deficit as of September 30, 2025, was $435.9 million, with expectations of substantial net losses continuing for several years[69]. - As of September 30, 2025, there are 2,032,173 shares available for future grants under the 2023 Equity Incentive Plan[51]. - The Company granted 1,380,500 stock options under the 2023 Plan, with an exercise price of $2.00[55]. - The Company has a total of 970,000 shares underlying performance options subject to vesting based on corporate objectives for 2025[52]. Research and Development - Research, development, and patents expenses for the nine months ended September 30, 2025, were $5,611,429, compared to $5,287,318 in 2024, reflecting an increase of approximately 6.1%[17]. - Research and development costs for the three months ended September 30, 2025, totaled $1,523,489, compared to $1,643,659 in 2024, while total research and development costs for the nine months ended September 30, 2025, were $5,355,670, up from $4,911,359 in 2024[30][33]. - Research, development, and patents expenses for the three months ended September 30, 2025, were $1.6 million, a decrease of $0.3 million from $1.9 million in 2024[81]. - Research, development, and patents expenses rose to $5.6 million in 2025 from $5.3 million in 2024, driven by increased expenses for MN-166 and clinical trials[86]. Future Outlook - The Company expects to continue incurring losses and will require additional capital to advance its clinical trial programs[27]. - The Company has incurred net losses since inception and has negative operating cash flows[27]. - The Company entered into a Standby Equity Purchase Agreement (SEPA) allowing it to sell up to $30.0 million of common stock over 36 months[61]. - The company does not expect any material changes in risk factors affecting its business from those previously disclosed[106].