MediciNova(US:MNOV)2022-11-10 21:19Financial Performance - Revenues for the three months ended September 30, 2022, were $0, compared to $37,500 for the same period in 2021, indicating a 100% decrease [17]. - The net loss applicable to common stockholders for the nine months ended September 30, 2022, was $11,067,599, compared to a net loss of $8,051,107 for the same period in 2021, reflecting a 37.5% increase in losses [17]. - Revenues for the nine months ended September 30, 2022, were $0.0 million, a decrease of $4.0 million compared to $4.0 million for the same period in 2021, attributed to the absence of milestone payments [85]. - The company has incurred significant net losses and expects to continue doing so for the next several years as it develops its product pipeline [71]. Assets and Liabilities - Total current assets decreased from $72,008,946 on December 31, 2021, to $53,148,995 on September 30, 2022, representing a decline of approximately 26.1% [15]. - Cash and cash equivalents decreased from $71,430,954 on December 31, 2021, to $52,507,263 on September 30, 2022, a decline of approximately 26.5% [15]. - Total liabilities increased from $3,729,374 on December 31, 2021, to $5,285,899 on September 30, 2022, representing a rise of approximately 41.6% [15]. - The total stockholders' equity decreased from $83,677,084 on December 31, 2021, to $73,105,871 on September 30, 2022, a decline of approximately 12.7% [15]. - As of September 30, 2022, the company's accumulated deficit was $404.1 million, indicating significant net losses since inception [71]. Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2022, was $8,904,519, an increase of 55.5% from $5,742,639 in the same period of 2021 [22]. - Net cash used in investing activities during the nine months ended September 30, 2022, was $10.0 million, compared to $0.0 million in the same period of 2021, primarily due to the purchase of certificates of deposit [89]. - Net cash provided by financing activities was $0.0 million for the nine months ended September 30, 2022, compared to $20.7 million in the same period of 2021, which was mainly from the sale of 3,656,307 shares of common stock for net proceeds of $19.9 million [90]. - As of September 30, 2022, the company had available cash and cash equivalents of $52.5 million and working capital of $48.6 million, sufficient to fund operations at least through the end of 2023 [91]. Operating Expenses - Operating expenses for the nine months ended September 30, 2022, totaled $11,397,414, a decrease of 6.2% from $12,150,481 in the same period of 2021 [17]. - General and administrative expenses decreased to $1.4 million for the three months ended September 30, 2022, down from $1.6 million in 2021, primarily due to a decrease in performance-based stock option expense [84]. - General and administrative expenses for the nine months ended September 30, 2022, were $4.3 million, down from $5.4 million in 2021, reflecting a decrease in performance-based stock option expense [87]. - Stock-based compensation expense for the nine months ended September 30, 2022, totaled $513.9 million, compared to $2.5 billion for the same period in 2021 [60]. Research and Development - Research and development costs for the nine months ended September 30, 2022, totaled $6.8 million, compared to $6.4 million for the same period in 2021, reflecting a 6.25% increase [32]. - Research, development, and patents expenses for the three months ended September 30, 2022, were $2.5 million, an increase of $0.4 million compared to $2.1 million for the same period in 2021 [83]. - Research, development, and patents expenses for the nine months ended September 30, 2022, were $7.1 million, an increase of $0.3 million from $6.8 million in 2021, driven by higher expenses related to MN-166 and MN-221 [86]. - The company plans to advance the development of MN-166 (ibudilast) and MN-001 (tipelukast) through various funding sources, including investigator-sponsored trials and strategic alliances [72]. Clinical Development and Strategy - The company’s strategy focuses on developing MN-166 and MN-001 for various serious diseases, including progressive multiple sclerosis and nonalcoholic fatty liver disease [25]. - The company has seen an increase in patient visits for clinical trials compared to earlier in the COVID-19 pandemic, indicating a recovery in clinical trial activities [36]. - The company expects no material negative impact on its clinical development plans or liquidity due to the COVID-19 pandemic [36]. - The company is actively pursuing strategic partnerships with leading pharmaceutical companies to support clinical development and commercialization of its products [72]. Legal and Compliance - The company is not involved in any material legal proceedings as of September 30, 2022, but may face various disputes in the ordinary course of business [101]. - There have been no material changes in internal control over financial reporting during the most recent fiscal quarter [98]. - The company does not expect its internal controls to prevent or detect all errors and fraud, providing only reasonable assurance of effectiveness [96]. - The management concluded that the disclosure controls and procedures were effective at the reasonable assurance level as of the end of the quarter covered by this report [97].