BioRestorative Therapies(BRTX) - 2022 Q2 - Quarterly Report

Revenue Growth - For the three months ended June 30, 2022, revenues increased to $71,100 from $15,000 in the same period of 2021, representing a 374% increase[116]. - The company generated $87,100 in royalty revenue for the six months ended June 30, 2022, compared to $33,000 for the same period in 2021, indicating a significant increase[128]. Research and Development - Research and development expenses surged by 568% from $160,898 in Q2 2021 to $1,075,224 in Q2 2022, reflecting a recommencement of research initiatives[120]. - Research and development expenses increased by $1,524,409, or 467%, from $326,152 to $1,850,561 for the six months ended June 30, 2022, compared to the same period in 2021[131]. - The company has received FDA authorization to commence a Phase 2 clinical trial for BRTX-100, targeting chronic lower back pain from degenerative disc disease[111]. - The company is developing the ThermoStem Program, which focuses on treating type 2 diabetes and obesity using brown adipose tissue[111]. Expenses - General and administrative expenses rose by 6% from $3,401,497 in Q2 2021 to $3,588,809 in Q2 2022, primarily due to increased stock-based compensation[123]. - General and administrative expenses decreased by $10.5 million, or 57%, from $18.3 million to $7.8 million for the six months ended June 30, 2022, primarily due to a decrease in stock-based compensation[133]. - Total operating expenses for the six months ended June 30, 2022, decreased to $9,769,521 from $18,642,919 in the same period of 2021[127]. Net Loss and Financial Position - The net loss for the six months ended June 30, 2022, was $9,491,391, compared to a net loss of $19,715,925 for the same period in 2021[127]. - The accumulated deficit as of June 30, 2022, was $143.6 million, reflecting historical losses primarily from operating expenses[110]. - The accumulated deficit was $143,637,519 as of June 30, 2022, indicating a need for additional equity and/or debt financing to continue operations[140]. - The company reported a net cash used in operating activities of $2,845,756 for the six months ended June 30, 2022, primarily due to a net loss of $9,491,391[144]. Interest Expense - Interest expense decreased by 91% from $507,332 in Q2 2021 to $46,613 in Q2 2022, due to the exchange of convertible debt for equity[125]. - Interest expense decreased by $1,030,382, or 93%, for the six months ended June 30, 2022, compared to the same period in 2021, due to the exchange of convertible debt for common and preferred shares[135]. Cash and Working Capital - As of June 30, 2022, cash was $17,933,724, and working capital was $17,702,436, down from $21,026,727 and $21,104,086, respectively, as of December 31, 2021[139]. - Net cash used in investing activities was $247,247 for equipment purchases during the six months ended June 30, 2022, with no cash flows from investing activities in the same period of 2021[145]. Future Outlook - The company anticipates that general and administrative expenses will increase as it expands its staff and infrastructure to support business growth[134]. - The company may face challenges in raising sufficient additional capital on favorable terms, which could impact its operations[142].