MediciNova(MNOV) - 2021 Q3 - Quarterly Report

Financial Performance - Revenues for the three months ended September 30, 2021, were $37,500, compared to $0 for the same period in 2020, indicating a significant increase[16] - The net loss applicable to common stockholders for the nine months ended September 30, 2021, was $8.05 million, compared to a net loss of $10.87 million for the same period in 2020, showing an improvement of 26.0%[16] - The company reported a comprehensive loss of $8.06 million for the nine months ended September 30, 2021, compared to $10.87 million for the same period in 2020, indicating a reduction of 25.8%[16] - For the nine months ended September 30, 2021, the net loss was $8,051,107, an improvement from a net loss of $10,868,608 in the same period of 2020, representing a decrease of approximately 26%[20] - Revenues for the nine months ended September 30, 2021, were $4.0 million, an increase from $0.0 million in the same period in 2020, primarily due to milestone payments under the Genzyme Agreement[80] Assets and Equity - Total assets increased to $91.62 million as of September 30, 2021, up from $75.42 million at December 31, 2020, representing a growth of 21.5%[15] - Cash and cash equivalents increased to $75.03 million as of September 30, 2021, compared to $60.04 million at December 31, 2020, a rise of 25.0%[15] - Total stockholders' equity rose to $86.48 million as of September 30, 2021, up from $71.33 million at December 31, 2020, marking an increase of 21.3%[15] - Cash and cash equivalents at the end of the period were $75,025,384, up from $61,661,341 at the end of the same period in 2020, indicating an increase of approximately 21.5%[20] - As of September 30, 2021, the company had available cash and cash equivalents of $75.0 million and working capital of $72.0 million, sufficient to fund operations at least through the end of 2022[87] Expenses - Operating expenses for the nine months ended September 30, 2021, totaled $12.15 million, up from $11.16 million in the same period of 2020, reflecting an increase of 8.9%[16] - Research and development costs for the nine months ended September 30, 2021, totaled $6.4 million, compared to $5.4 million for the same period in 2020, reflecting an increase of approximately 18.5%[30] - General and administrative expenses for the nine months ended September 30, 2021, were $5.4 million, a slight decrease from $5.5 million in 2020[82] - Research, development, and patents expenses for the nine months ended September 30, 2021, were $6.8 million, up from $5.7 million in 2020, mainly due to higher clinical trial expenses for MN-166 (ibudilast) in ALS[81] - Total stock-based compensation expense for the nine months ended September 30, 2021, was $2,474,485, compared to $2,777,503 for the same period in 2020[54] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2021, was $5,742,639, a decrease from $8,877,277 in the same period of 2020, representing a reduction of approximately 35%[20] - Net cash provided by financing activities was $20.7 million during the nine months ended September 30, 2021, compared to $6.7 million in 2020, primarily due to the sale of 3,656,307 shares of common stock[84] Stock and Equity Transactions - The company issued 3,656,307 shares in a private placement transaction, net of issuance costs, contributing to the increase in additional paid-in capital to $477.51 million[18] - The Company issued 3,656,307 shares of common stock at a price of $5.47 per share for approximately $20 million in cash proceeds in a private placement on January 29, 2021[57] - The Company had 8,099,250 stock options outstanding as of September 30, 2021, with a weighted average exercise price of $5.82[51] - As of September 30, 2021, there were 212,678 shares available for future issuance under the Employee Stock Purchase Plan[53] Clinical Development and Strategy - The company is focusing on developing MN-166 (ibudilast) for various neurological disorders and MN-001 (tipelukast) for fibrotic diseases, indicating a strategic emphasis on addressing serious diseases with unmet medical needs[23] - The company intends to advance the development of MN-166 (ibudilast) through a combination of investigator-sponsored clinical trials and government grants[65] - The company plans to pursue strategic partnerships with leading pharmaceutical companies to support the clinical development and commercialization of its products[67] - The company has designed a clinical trial for MN-166 (ibudilast) to evaluate its effectiveness in preventing acute respiratory distress syndrome (ARDS) caused by COVID-19[68] Liabilities and Commitments - The total current liabilities increased to $4.20 million as of September 30, 2021, from $2.19 million at December 31, 2020, an increase of 91.7%[15] - The company reported a right-of-use asset obtained in exchange for operating lease liability amounting to $875,515, indicating ongoing commitments in lease agreements[20] - The total operating lease liabilities as of September 30, 2021, amounted to $888,398, with current operating lease liabilities of $150,682[47] - The weighted-average remaining lease term for operating leases was 4.51 years, with a weighted-average discount rate of 9.7%[47] Risk and Compliance - The company does not have any off-balance sheet arrangements or relationships with unconsolidated entities as of September 30, 2021, mitigating exposure to financing, liquidity, market, or credit risk[89] - The company is not involved in any material legal proceedings as of September 30, 2021, although it may face various disputes in the ordinary course of business[98] - The company has not identified any new risk factors that could materially affect its business, financial condition, or future results since its last annual report[99] - The company expects no material negative impact on its clinical development plans or liquidity due to the COVID-19 pandemic, reflecting confidence in its operational resilience[34] Accounting and Controls - The company is currently evaluating the potential impact of new accounting standards on its consolidated financial statements, indicating proactive financial management[38] - The company maintains disclosure controls and procedures designed to provide reasonable assurance that required information is recorded and reported timely[93] - The company does not expect any changes in internal control over financial reporting that would materially affect its controls[96]