Cryptocurrency Strategy - The company launched a differentiated cryptocurrency treasury strategy focused on the TAO cryptocurrency, aiming for revenue generation and capital appreciation [215]. - The company formed a subsidiary, TAOX Florida Inc., to facilitate its expansion into the cryptocurrency treasury strategy business [215]. Series C Preferred Stock - During the nine months ended September 30, 2025, the company settled $4,285,000 of Series C Preferred Stock through $1,430,000 in cash redemptions and conversion of $2,855,000 into 951,667 shares of Common Stock [230]. - The Series C Preferred Stock has a stated value of $1,000 per share and is initially convertible into up to 448,250 shares of Common Stock [218]. - The Series C Preferred Shares accrue dividends at a rate of 5% per annum, compounded quarterly, increasing to 15% per annum upon a Triggering Event [221]. - The company received Nasdaq Stockholder Approval for the Series C Preferred Stock matters on December 6, 2024 [222]. - The Series C Offering included an aggregate of 1,793 shares of Series C convertible preferred stock and warrants to acquire up to 1,250,000 shares of Common Stock [218]. - The Series C Warrants are exercisable immediately and expire five years from the date of issuance [224]. - The company recognized a deemed dividend of $105,722 related to cash premiums during the nine months ended September 30, 2025 [230]. Series D Preferred Stock - The Company entered into a Series D Private Placement, selling 5,500 shares of Series D convertible preferred stock at a stated value of $1,000 per share, convertible into up to 1,833,333 shares of Common Stock at an initial conversion price of $3.00 [231]. - The Series D Preferred Stock will accrue dividends at a rate of 5% per annum, compounded quarterly, increasing to 15% per annum upon a Triggering Event [233]. - The Company settled $4,296,438 of the Series D Preferred Stock through conversions into 1,432,146 shares of Common Stock during the three and nine months ended September 30, 2025 [240]. - The Series D Warrants are exercisable immediately at an exercise price of $3.00 per share and expire five years from the date of issuance [241]. - The Resale Registration Statement for the Series D Conversion Shares was declared effective by the SEC on July 17, 2025 [243]. Financial Performance - During the three months ended September 30, 2025, the Company generated staking revenue of $203,371, compared to none in the same period of 2024 [252][253]. - Total operating expenses for the three months ended September 30, 2025 were $2,002,871, a slight increase of approximately 1.3% from $1,978,044 in the same period of 2024 [254]. - The Company recorded a net loss of $3,923,247 for the three months ended September 30, 2025, representing a decrease of 31.7% compared to a net loss of $5,742,013 in the same period of 2024 [252]. - The company recognized losses of $(3,923,247) for the three months ended September 30, 2025, an improvement from $(5,742,013) in the same period of 2024 [260]. - For the nine months ended September 30, 2025, research and development expenses decreased by approximately 77.5% to $263,759 from $1,174,217 in the same period of 2024 [264]. - Total operating expenses for the nine months ended September 30, 2025, increased by approximately 16.4% to $6,111,831 compared to $5,250,505 for the same period in 2024 [263]. - The company incurred total other expenses of $(15,149,658) for the nine months ended September 30, 2025, compared to $(1,971,516) for the same period in 2024 [268]. - Net income (loss) for the nine months ended September 30, 2025, was $(21,054,156), a significant increase in loss compared to $(7,222,021) for the same period in 2024 [269]. Cash Flow and Working Capital - As of September 30, 2025, the company had working capital of $7,306,830, a decrease from $16,706,587 as of December 31, 2024 [270]. - The company expects its current cash and cash equivalents, along with the value of TAO tokens, totaling approximately $34.0 million, to support projected operating requirements for at least the next 12 months [271]. - Cash used in operating activities was $3,944,213 for the nine months ended September 30, 2025, compared to $3,716,123 for the same period in 2024, reflecting an increase of $228,090 [276]. - Net cash used in investing activities was approximately $17.6 million for the nine months ended September 30, 2025, compared to $1.0 million for the same period in 2024 [277]. - Net cash provided by financing activities was $5,303,622 for the nine months ended September 30, 2025, compared to $4,319,595 used in financing activities for the same period in 2024 [278]. - Cash provided by financing activities in 2025 included proceeds from the Company's Series D Preferred Stock offering and exercise of investor warrants [278]. - Cash used in investing activities in 2024 was primarily for the purchase of cryptocurrency for the Company's treasury strategy [277]. - Cash used for financing activities in 2024 was for the redemption of principal and dividends on Series B Preferred Stock, partially offset by proceeds from Series C Preferred Stock offering [278]. Research and Development Expenses - The Company has incurred cumulative expenses of approximately $100,000 related to the Nemours Agreement for a clinical trial, with total trial and IND costs estimated at $2 million [248]. - As of September 30, 2025, the Company has incurred expenses of approximately $563,000 related to the collaboration with Cleveland Clinic, with total estimated costs of approximately $2 million [250]. - Research and development expenses for the three months ended September 30, 2025, decreased by approximately 75.6% to $54,388 from $222,897 in the same period of 2024 [255]. - General and administrative expenses increased by approximately 11.0% to $1,948,483 for the three months ended September 30, 2025, compared to $1,755,147 for the same period in 2024 [258].
Synaptogenix(SNPX) - 2025 Q3 - Quarterly Report