NanoViricides(NNVC) - 2026 Q2 - Quarterly Report

Financial Performance - The company reported a net loss per common share for the three months ended December 31, 2025, with basic and diluted EPS reflecting the loss due to anti-dilutive shares[34][36]. - The company has 7,148,006 potentially dilutive common shares excluded from the diluted net loss per common share calculation for the three months ended December 31, 2025[37]. - The company accrued expenses totaled $48,380 as of December 31, 2025, compared to $25,969 as of June 30, 2025, indicating an increase in personnel and compensation costs[54]. Assets and Liabilities - As of December 31, 2025, the total property and equipment net value was $6,656,439, a decrease from $6,833,891 as of June 30, 2025, reflecting a depreciation expense of $131,016 for the three months ended December 31, 2025[52]. - The net intangible assets as of December 31, 2025, amounted to $312,904, down from $317,039 as of June 30, 2025, with an amortization expense of $2,068 for the three months ended December 31, 2025[53]. - The accounts payable to TheraCour as of December 31, 2025, was $691,865, reflecting ongoing obligations under licensing agreements[46]. - The company has not drawn against the $3,000,000 line of credit facility established with Dr. Anil R. Diwan as of December 31, 2025[51]. Research and Development - The company incurred research and development costs related to related parties amounting to $485,792 for the three months ended December 31, 2025[46]. - The Phase 1 human clinical trial of NV-CoV-2 began in India on June 17, 2023, under an agreement with KMPL[46]. - The company accrued clinical trial costs related to the Phase 1a/1b trials in India, amounting to $9,932 as of June 30, 2025[47]. Capital Raising Activities - The company raised approximately $1,909,000 in net proceeds from the ATM offering by selling 1,264,988 shares at an average price of $1.56 per share from July 1, 2025, to December 31, 2025[55]. - In a registered direct offering on November 10, 2025, the company sold 1,970,000 shares at an offering price of $1.68 per share, generating gross proceeds of $6,000,000 and net proceeds of $5,403,981 after expenses[59]. Stock and Compensation - The company granted Dr. Anil Diwan 10,204 shares of Series A preferred stock, with a non-cash compensation expense of $20,026 recognized for the six months ended December 31, 2025[63]. - The company issued 19,255 fully vested shares of common stock for consulting services, recording an expense of $27,000 for the three months ended December 31, 2025[68]. - As of December 31, 2025, the company had 7,148,006 outstanding and exercisable common stock warrants with a weighted average exercise price of $1.88 per share[70]. Legal and Regulatory Matters - The company has no pending legal proceedings that it believes will have a material adverse effect on its business or financial position[71]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[351]. Licensing Agreements - The company is dependent on its license agreements with TheraCour for the development of its drug candidates, which could incur substantial delays and costs if lost[74]. - The Company entered into a license agreement with KMPL for exclusive rights to use, sell, or offer two clinical test drug candidates for COVID treatment in India[76]. - KMPL will receive a clinical trials manager fee of 30% of the costs and applicable taxes, and a 70% royalty on commercial sales of approved drugs[76]. - An amendment to the COVID License Agreement with TheraCour stipulates that cash milestone payments will only be payable upon the Company achieving sufficient revenues[77]. - A Memorandum of Understanding with TheraCour grants the Company a right of first refusal for licensing any antiviral drugs in development for research and development purposes[78]. - The MoU codifies the treatment of future milestone payments to be consistent with the principles established in the February 12, 2024 amendment[78]. Accounting Standards - The company adopted ASU 2023-07 for segment reporting, effective January 1, 2024, which requires enhanced disclosures regarding segment expenses[41]. - The company expects the adoption of ASU 2024-03 to have minimal impact on its financial statements, effective for fiscal years beginning after December 15, 2026[40].