NanoViricides(NNVC) - 2026 Q1 - Quarterly Report

Financial Performance - The Company reported a net loss per common share for the three months ended September 30, 2025, with basic and diluted calculations reflecting the potential dilution from outstanding shares[38]. - The Company raised approximately $1,245,000 in net proceeds from the sale of 824,535 shares of common stock at an average price of $1.45 per share from July 1, 2025, to September 30, 2025[58]. - The Company sold 440,453 shares of common stock at an average price of approximately $1.55 per share from October 1, 2025, to November 4, 2025, generating net proceeds of approximately $663,000[73]. - On November 10, 2025, the Company entered into a securities purchase agreement to sell 1,970,000 shares of common stock at an offering price of $1.68 per share, with gross proceeds of approximately $6 million[74]. Research and Development - For the three months ended September 30, 2025, research and development costs related to TheraCour amounted to $539,522, a decrease from $644,527 in the same period of 2024, indicating a reduction of approximately 16.3%[47]. - The Company is dependent on its license agreements with TheraCour, which are critical for the development of its drug candidates[68]. - The Company has entered into multiple license agreements, including a COVID-19 License Agreement with TheraCour, which allows the Company to use proprietary technology for drug development[69]. - The Company will pay KMPL a royalty of 70% of the final invoiced sales of any resulting approved drugs from its clinical test drug candidates for COVID-19 in India[70]. Assets and Liabilities - The total property and equipment as of September 30, 2025, was $15,107,567, an increase from $15,023,250 as of June 30, 2025, reflecting a growth of approximately 0.56%[52]. - The Company’s intangible assets, net, as of September 30, 2025, totaled $314,971, a slight decrease from $317,039 as of June 30, 2025[53]. - The Company’s accumulated depreciation for property and equipment increased to $8,320,111 as of September 30, 2025, from $8,189,359 as of June 30, 2025, indicating an increase of approximately 1.6%[52]. - The Company’s accounts payable to TheraCour as of September 30, 2025, was $663,776, an increase from $584,089 as of June 30, 2025[46]. - As of September 30, 2025, accrued expenses totaled $26,300, an increase from $25,969 as of June 30, 2025[57]. Stock and Equity - The Company has 916,308 shares of Series A preferred stock outstanding, which can convert to 3,207,078 common shares only upon a change of control[39]. - The Company granted Dr. Anil Diwan 10,204 shares of Series A preferred stock, with a non-cash compensation expense of $10,013 recognized for the three months ended September 30, 2025[59]. - The Company issued 117,208 fully vested shares of common stock for consulting and legal services, recording an expense of $173,850 for the three months ended September 30, 2025[62]. - The Company has 5,434 outstanding and exercisable common stock warrants as of September 30, 2025, with a weighted average exercise price of $2.36[64]. Regulatory and Reporting - The Company adopted ASU 2023-07 for segment reporting, effective January 1, 2024, which requires additional disclosures regarding significant segment expenses[42]. - The private placement of Warrants and shares was conducted under an exemption from registration, indicating a strategic move to raise capital without extensive regulatory requirements[75]. - The company qualifies as a smaller reporting company and is not obligated to disclose certain market risk information, reflecting its operational scale[323].