Financial Performance - The company reported net losses of approximately $4,247,000 and $10,470,000 for the three and nine months ended September 30, 2022, compared to net losses of approximately $3,860,000 and $11,494,000 for the same periods in 2021[120]. - Total revenues for the three-month period ended September 30, 2022, increased 12% to approximately $452,000 compared to approximately $404,000 for the same period in 2021; for the nine-month period, revenues increased 19% to approximately $1,189,000 compared to approximately $1,000,000 for the same period in 2021[121]. - Sales of Trappsol® Cyclo™ for the three-month period ended September 30, 2022, were $270, compared to $90 for the same period in 2021; for the nine-month period, sales decreased to $970 from $2,020[122]. - Sales of Trappsol® HPB increased by 18% for the three-month period ended September 30, 2022, to approximately $337,000 from approximately $286,000 for the same period in 2021; for the nine-month period, sales increased by 40% to approximately $759,000 from approximately $543,000[123]. Expenses - The cost of products sold for the three-month period ended September 30, 2022, increased 43% to approximately $33,000 from approximately $23,000 for the same period in 2021; for the nine-month period, it increased 41% to approximately $123,000 from approximately $87,000[128]. - Personnel expenses decreased by 47% to approximately $888,000 for the three months ended September 30, 2022, from approximately $1,668,000 for the same period in 2021; however, they increased by 11% for the nine-month period to approximately $3,075,000 from approximately $2,770,000[131]. - Research and development expenses increased 55% to approximately $2,856,000 for the three months ended September 30, 2022, from approximately $1,838,000 for the same period in 2021; however, they decreased 25% for the nine-month period to approximately $5,815,000 from approximately $7,739,000[133]. - Professional fees increased 36% to approximately $612,000 for the three months ended September 30, 2022, compared to approximately $450,000 for the same period in 2021; for the nine-month period, they increased 60% to approximately $1,674,000 from approximately $1,047,000[134]. - Office and other expenses decreased 16% to approximately $205,000 for the three months ended September 30, 2022, compared to approximately $244,000 for the same period in 2021[135]. Cash and Assets - Cash decreased to approximately $4,290,000 as of September 30, 2022, compared to approximately $16,613,000 as of December 31, 2021[137]. - Current assets less current liabilities were approximately $5,547,000 as of September 30, 2022, down from approximately $15,605,000 at December 31, 2021[137]. - Cash used in operations was approximately $12,367,000 for the nine months ended September 30, 2022, compared to approximately $12,394,000 for the same period in 2021[137]. Future Outlook - The company has approximately $37,510,000 in net state and federal operating loss carryforwards expiring from 2022 through 2037, including $29,000,000 that will not expire[141]. - The company expects to continue to raise additional capital through the sale of its securities to fund the development of drug product candidates[139]. - The company has provided a 100% valuation allowance on its deferred tax asset based on expected future expenses related to clinical trials[141]. - The company realized losses from operations but believes it will have sufficient cash to meet anticipated operating costs for at least the next 12 months[139]. - The consolidated financial statements were prepared on the basis of a going concern, dependent on the availability of equity financing[140]. Business Operations - The company continues to operate its legacy fine chemical business, with the three largest customers accounting for 67% of sales during the nine months ended September 30, 2022, compared to 65% in the same period of 2021[127]. - The company is exploring the use of cyclodextrins in the treatment of Alzheimer's disease, with an IND clearance from the FDA for a Phase II study expected to begin enrollment in 2022[117]. - The company had no off-balance sheet arrangements as of September 30, 2022[142].
Cyclo Therapeutics(CYTH) - 2022 Q3 - Quarterly Report