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GT Biopharma(GTBP) - 2022 Q1 - Quarterly Report
GT BiopharmaGT Biopharma(US:GTBP)2022-05-16 13:00

Financial Performance - Interest income rose to $8,000 for the three months ended March 31, 2022, compared to $0 in the same period of 2021, indicating improved financial performance [108]. - Interest expense dropped to $0 for the three months ended March 31, 2022, down from $696,000 in the same period of 2021, due to the conversion of notes payable to common shares [109]. - The company reported cash and cash equivalents of $7.3 million and short-term investments of $19.5 million as of March 31, 2022, indicating sufficient liquidity for operations [113]. Expenses - Research and development expenses increased to $2.1 million for the three months ended March 31, 2022, up from $1.6 million in the same period of 2021, reflecting a $500,000 increase primarily due to the addition of employees [106]. - Selling, general and administrative expenses decreased significantly to $3.4 million for the three months ended March 31, 2022, compared to $27.4 million in the same period of 2021, mainly due to reduced stock-based compensation [107]. - The company anticipates cash utilization for selling, general and administrative expenses to range between $5 million and $6 million, and for research and development expenses to range between $14 million and $16 million over the next twelve months [112]. Revenue and Losses - The company has not generated any revenue from product sales and has sustained operating losses since inception, which are expected to continue in the foreseeable future [112]. Legal and Compliance - A settlement of $425,000 was reached on February 7, 2022, regarding a breach of a license agreement, which was fully accrued at December 31, 2021, and paid on March 4, 2022 [125]. - The company has begun implementing measures to address material weaknesses in internal controls over financial reporting, including hiring a Chief Financial Officer and engaging a forensic accountant [122]. Future Strategies - The company is evaluating strategies for future funding, including public offerings of equity and/or debt securities and potential collaborations with pharmaceutical companies [114].