180 Life Sciences (US:ATNF)2023-03-30 16:00Financial Performance - As of December 31, 2022, the company reported an accumulated deficit of $107,408,545 and a net loss of $38,726,259 for the year[638]. - The net loss for 2022 was $38,726,259, compared to a net loss of $20,324,648 in 2021[679]. - Cash used in operating activities was $12,127,585 in 2022, down from $19,371,428 in 2021[679]. - As of December 31, 2022, cash balances were $6,970,110, down from $8,224,508 in 2021[678]. - The company expects to continue incurring losses and anticipates an increase in research and development and general administrative expenses[682]. Capital Requirements - The company has a minimum monthly cash requirement of approximately $900,000 and anticipates needing significant additional capital funding to support operations[641]. - The company has material cash requirements of approximately $10,000,000 for 2023 and $27,000,000 for the years 2024 through 2027[683]. - The company may need to issue equity to fund operations and repay outstanding debt, which could dilute existing shareholders' ownership[644]. - The company currently has no credit facility or committed sources of capital, indicating potential liquidity risks[684]. Research and Development - Research and development expenses are expected to increase as clinical programs progress and additional product candidates are developed[654]. - The company is focused on developing therapeutics for chronic pain, inflammation, and other inflammatory diseases through innovative research[648]. - Research and development expenses increased by $1,191,065 or 119% to $2,191,834 in 2022 from $1,000,769 in 2021[673]. General and Administrative Expenses - General and administrative expenses are expected to rise in the coming years to support research and development, manufacturing activities, and compliance with public company regulations[661]. - General and administrative expenses rose by $4,229,670 or 38% to $15,459,788 in 2022 compared to $11,230,118 in 2021[675]. Other Financial Activities - The company has experienced liquidity issues and has historically relied on equity and debt financings to fund operations[642]. - The Company settled a finder agreement with EarlyBird Capital, paying $275,000 in cash and issuing 11,250 shares valued at $1,973,250, resulting in a recorded loss of $223,250[692]. - The Company issued 7,500 shares and three-year warrants to settle a convertible note agreement with Alpha Capital, fully satisfying the note[693]. - The August 2021 Offering generated approximately $15 million in gross proceeds, with net proceeds of about $13.9 million after fees[694]. - The Company recorded a gain of approximately $650,000 after settling legal services with Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. for $800,000[698]. - The July 2022 Offering raised $6,499,737 in gross proceeds, with net proceeds of approximately $6.0 million after expenses[699]. - The December 2022 Offering resulted in gross proceeds of $5,999,851, with net proceeds of about $5.5 million after deducting fees[700]. Impairments - As of December 31, 2022, the Company recorded a goodwill impairment loss of $33,547,278 due to the carrying value exceeding fair market value by $18,872,850 and $14,674,428 at two measurement dates[707]. - The Company recognized an impairment of IP R&D assets totaling $3,342,084, reducing the asset balances significantly as of December 31, 2022[709]. Manufacturing and Production - The company relies on third-party contract manufacturing organizations for the production and processing of product candidates, which is considered cost-effective[650]. Clinical Development - The company has several product candidates in development, including one that recently completed a successful Phase 2b clinical trial for Dupuytren's Contracture[649]. - The outcome of product candidates in clinical development is uncertain, and the company cannot estimate the actual amounts necessary for successful commercialization[658].