Daré Bioscience(US:DARE)2023-05-10 16:00Financial Performance - Net loss for the three months ended March 31, 2023, was $8.04 million, compared to a net loss of $8.40 million for the same period in 2022, indicating a reduction in loss of about 4.3%[17] - The company reported a comprehensive loss of $8.06 million for the three months ended March 31, 2023, compared to a comprehensive loss of $8.41 million for the same period in 2022, a decrease of about 4.2%[17] - For the three months ended March 31, 2023, the company reported a net loss of approximately $8.0 million, compared to a net loss of $8.4 million for the same period in 2022, representing a 4.3% improvement in net loss year-over-year[33] Assets and Liabilities - Total current assets decreased from $43.04 million as of December 31, 2022, to $29.51 million as of March 31, 2023, representing a decline of approximately 31.2%[16] - Total assets decreased from $43.83 million as of December 31, 2022, to $30.37 million as of March 31, 2023, a reduction of about 30.7%[16] - Total liabilities decreased from $32.71 million as of December 31, 2022, to $25.40 million as of March 31, 2023, reflecting a decrease of approximately 22.3%[16] Cash Flow - Cash and cash equivalents decreased from $34.67 million as of December 31, 2022, to $19.83 million as of March 31, 2023, a decline of about 42.7%[16] - The net cash used in operating activities for the three months ended March 31, 2023, was approximately $16.1 million, an increase of 30.4% compared to $12.3 million for the same period in 2022[33] - The company reported a net change in cash and cash equivalents of approximately $(14.8) million for the three months ended March 31, 2023[33] - As of March 31, 2023, the company had cash and cash equivalents of approximately $19.8 million, down from $39.3 million at the end of the previous year, indicating a decrease of 49.7%[33] Operating Expenses - Operating expenses for the three months ended March 31, 2023, were $8.38 million, slightly down from $8.40 million in the same period of 2022, showing a decrease of approximately 0.2%[17] - General and administrative expenses increased from $2.57 million in Q1 2022 to $3.34 million in Q1 2023, an increase of approximately 29.8%[17] - Research and development expenses decreased from $5.81 million in Q1 2022 to $5.02 million in Q1 2023, a reduction of about 13.6%[17] Revenue Generation - The company recognized $10.0 million in license fee revenue from its agreement for XACIATO, which was the only revenue recognized as of March 31, 2023[44] - The company has not recognized any collaboration revenues as of March 31, 2023, indicating limited revenue generation from partnerships[43] Capital Needs and Future Outlook - The company expects to continue incurring negative cash flows from operations for the foreseeable future, necessitating substantial additional capital to fund operations and execute its strategy[34] - The company will need to raise substantial additional capital to continue its operations and may face significant operational adjustments if capital is not available[35] Stock and Equity - The weighted average number of shares outstanding increased from 83.94 million in Q1 2022 to 85.52 million in Q1 2023, an increase of approximately 1.9%[17] - The Company entered into a sales agreement to sell up to $50.0 million of common stock through an ATM equity offering program, with no shares sold during the three months ended March 31, 2023[85][86] - As of March 31, 2023, the Company had 9,110,219 stock options outstanding with a weighted average exercise price of $1.48[97] Milestone Payments and Agreements - The Company is entitled to receive up to $310.0 million in milestone payments related to the commercial sales of Ovaprene, along with tiered royalties starting in the low double digits based on annual net sales[49] - An exclusive license agreement with Organon resulted in a $10.0 million non-refundable payment, with potential milestone payments totaling up to $182.5 million and tiered double-digit royalties based on net sales[52][53] - The Company has potential future payments of up to $6.25 million for development and regulatory milestones and up to $45.0 million for commercial sales milestones under the Hennepin License Agreement[64] - The acquisition of Dare MB Inc. included contingent payments of up to $46.5 million for specified milestones and up to $55.0 million based on aggregate net sales of products[66] - The Company has paid $1.25 million in milestone payments related to the MBI acquisition, with a portion paid in shares of common stock[67] - The Pear Tree acquisition includes potential payments of up to $15.5 million for clinical development milestones and up to $47.0 million for commercial milestones, along with tiered royalties based on net sales[72] Grant Funding and Non-Dilutive Funding - The Company received a grant of $585,000 from the Bill & Melinda Gates Foundation for the development of DARE-LBT, with a deferred grant funding liability of approximately $552,000 recorded as of March 31, 2023[117][118] - Cumulative total of approximately $23.9 million in non-dilutive funding received under the DARE-LARC1 agreement, with a deferred grant funding liability of approximately $15.3 million as of March 31, 2023[120] Lease Obligations - The Company reported operating lease right of use assets of approximately $368,000 as of March 31, 2023[104] - Total operating lease costs for Q1 2023 were approximately $139,000, down from $169,000 in Q1 2022, representing a decrease of about 17.8%[105] - Cash paid for operating lease liabilities was approximately $105,000 in Q1 2023, compared to $123,000 in Q1 2022, indicating a decrease of approximately 14.6%[106] - Future minimum lease payments under operating leases total $410,000, with $317,000 due in the remainder of 2023 and $93,000 in 2024[106]