GeoVax Labs(GOVX) - 2021 Q1 - Quarterly Report

PART I – FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements Unaudited statements show a wider net loss despite increased assets from financing activities - The company is considered a going concern, with management believing cash is sufficient for operations into 2023[28] - The company enacted two reverse stock splits in 2020, and all share data has been retroactively restated[27] Condensed Consolidated Balance Sheets Total assets doubled to $21.1 million and stockholders' equity grew to $20.7 million, driven by financing activities Condensed Consolidated Balance Sheet Highlights (as of March 31, 2021 vs. December 31, 2020) | Balance Sheet Item | March 31, 2021 (unaudited) | December 31, 2020 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $20,842,782 | $9,883,796 | | Total current assets | $20,961,212 | $10,235,148 | | Total assets | $21,115,446 | $10,393,899 | | Liabilities & Equity | | | | Total current liabilities | $451,949 | $810,309 | | Total liabilities | $464,106 | $825,047 | | Total stockholders' equity | $20,651,340 | $9,568,852 | Condensed Consolidated Statements of Operations The company's Q1 net loss widened to $1.6 million from $0.6 million year-over-year due to lower revenue and higher G&A costs Condensed Consolidated Statements of Operations (Three Months Ended March 31) | Operating Metric | 2021 | 2020 | | :--- | :--- | :--- | | Grant and collaboration revenues | $110,417 | $715,977 | | Research and development expense | $602,783 | $808,936 | | General and administrative expense | $1,071,710 | $502,345 | | Loss from operations | ($1,564,076) | ($595,304) | | Net loss | ($1,562,778) | ($595,694) | | Net loss per common share | ($0.29) | ($2.54) | Condensed Consolidated Statements of Cash Flows Net cash increased by $11.0 million, as $12.6 million from financing activities offset a $1.6 million operating cash outflow Cash Flow Summary (Three Months Ended March 31) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,621,027) | ($358,620) | | Net cash provided by financing activities | $12,580,013 | $297,086 | | Net increase (decrease) in cash | $10,958,986 | ($61,534) | | Cash and cash equivalents at end of period | $20,842,782 | $221,807 | - Financing activities in Q1 2021 included $9.4 million in net proceeds from a common stock sale and $3.2 million from warrant exercises[18] Notes to Condensed Consolidated Financial Statements Notes detail the company's biotech business, a $9.4 million public offering, and a significant grant revenue decline - GeoVax is a clinical-stage biotech company developing immunotherapies and vaccines using its novel GV-MVA-VLP™ vector vaccine platform[20][21] - A February 2021 public offering raised net proceeds of approximately $9.4 million[38] - The exercise of stock purchase warrants in Q1 2021 generated net proceeds of $3,174,156[40] - The company had approximately $800,000 of unrecorded purchase commitments as of March 31, 2021, expected to be due in 2021[37] Grant and Collaboration Revenue (Q1 2021 vs Q1 2020) | Description | Revenues Recorded Q1 2021 | Revenues Recorded Q1 2020 | Approved Funds Available at Mar 31, 2021 | | :--- | :--- | :--- | :--- | | Lassa Fever – U.S. Army Grant | $ - | $654,021 | $165,500 | | Covid-19 – NIH SBIR Grant | $110,417 | $ - | $189,510 | | Malaria – Leidos, Inc. Collaboration | $ - | $61,956 | $ - | | Total | $110,417 | $715,977 | $355,010 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses improved liquidity from financing, a wider net loss, and its vaccine development strategy Overview The company is a clinical-stage biotech developing vaccines and immunotherapies, seeking partnerships for commercialization - Development programs target COVID-19, HIV, hemorrhagic fever viruses (Ebola, Lassa), Zika, and malaria, as well as immunotherapies for solid tumor cancers[47] - The most advanced program, HIV vaccine GOVX-B11, is slated for the HVTN 132 clinical trial, expected to begin in late 2021[50] - The corporate strategy involves advancing products through human clinical testing before seeking partnership or licensing arrangements[51] Liquidity and Capital Resources Liquidity improved with cash at $20.8 million, deemed sufficient to fund operations into 2023 despite ongoing losses Key Liquidity Metrics (as of March 31, 2021 vs. December 31, 2020) | Metric | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $20,842,782 | $9,883,796 | | Working capital | $20,509,263 | $9,424,839 | - Net cash from financing activities in Q1 2021 was $12,580,013, primarily from a $9,408,920 public offering and $3,174,156 in warrant exercises[59][60] - Management believes existing cash resources will fund planned operations into 2023, but additional funds will be required beyond that date[63] Results of Operations Q1 net loss increased to $1.6 million as lower grant revenue and higher G&A costs offset a 25% drop in R&D spending Comparison of Operating Results (Three Months Ended March 31) | Item | 2021 | 2020 | | :--- | :--- | :--- | | Net Loss | $1,562,778 | $595,694 | | Grant and Collaboration Revenues | $110,417 | $715,977 | | Research and Development Expenses | $602,783 | $808,936 | | General and Administrative Expenses | $1,071,710 | $502,345 | - The decrease in R&D expenses by 25% was primarily due to the timing of external expenditures related to government grants[70] - The 105% increase in G&A expenses (excluding stock compensation) was due to higher Delaware franchise taxes, legal, patent, and personnel costs[73] Item 3. Quantitative and Qualitative Disclosures About Market Risk Market risk is limited to interest rate sensitivity on cash investments, with no derivative or foreign currency exposure - Market risk is limited mainly to interest income sensitivity from changes in U.S. interest rates on institutional money market funds[77] - The company does not use any derivative financial instruments or foreign currency instruments[77] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2021 - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[79] - There were no significant changes in internal control over financial reporting during Q1 2021 that have materially affected, or are reasonably likely to materially affect, internal controls[80] PART II – OTHER INFORMATION Item 1. Legal Proceedings The company reports no legal proceedings - None[83] Item 1A. Risk Factors No material changes to risk factors from the most recent Form 10-K are reported - There have been no material changes from the risk factors previously disclosed in the company's most recent Annual Report on Form 10-K[84] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company issued 1,472 unregistered shares valued at $6,000 for social media services in Q1 2021 - In Q1 2021, the company issued 1,472 shares of common stock valued at $6,000 for services, relying on a registration exemption[85] Item 3. Defaults Upon Senior Securities The company reports no defaults upon senior securities - None[86] Item 4. Mine Safety Disclosures This item is not applicable to the company - Not applicable[87] Item 5. Other Information No required Form 8-K disclosures were omitted during the quarter - No information required to be disclosed in a Form 8-K was omitted during the period[87] Item 6. Exhibits The report lists key exhibits including agreements, certifications, and XBRL data files - Exhibits filed include the Underwriting Agreement, Form of Underwriter's Warrant Agreement, Certifications, and XBRL documents[88]