ENDRA Life Sciences(US:NDRA)2024-03-28 20:38Financial Performance - As of December 31, 2023, the total assets of ENDRA Life Sciences Inc. were $6.75 million, a decrease from $9.27 million in 2022, representing a decline of approximately 27%[309] - The company reported a net loss of $10.06 million for the year ended December 31, 2023, compared to a net loss of $13.18 million in 2022, indicating an improvement of about 24%[312] - Total operating expenses for 2023 were $10.52 million, down from $13.16 million in 2022, reflecting a reduction of approximately 20%[312] - The net loss for the year ended December 31, 2023, was $10,060,250, compared to a net loss of $13,179,092 for the year ended December 31, 2022, representing a 23.5% improvement[317] - The company had a total income loss before income taxes of $9,996,700 for the year ended December 31, 2023, compared to a loss of $13,179,100 in 2022[379] Cash and Liquidity - Cash and cash equivalents decreased to $2.83 million as of December 31, 2023, from $4.89 million in 2022, a decline of approximately 42%[309] - Cash used in operating activities for 2023 was $9,548,775, a decrease from $12,769,371 in 2022, indicating a 25.5% reduction in cash outflow[317] - The company experienced a net decrease in cash of $2,055,191 in 2023, compared to a decrease of $4,572,436 in 2022, indicating improved cash management[317] Research and Development - Research and development expenses decreased to $5.00 million in 2023 from $6.55 million in 2022, a reduction of about 24%[312] - Research and development expenses for the year ended December 31, 2023, were $5,003,695, down from $6,554,194 in 2022, reflecting a 23.6% decrease[332] - The company continues to develop technology for non-invasive tissue characterization to enhance patient access to safe diagnosis and treatment[318] Accumulated Deficit and Liabilities - The company has an accumulated deficit of $91.93 million as of December 31, 2023, compared to $81.87 million in 2022, indicating an increase in losses[310] - The Company reported a cumulative net loss of $91,930,152 since inception[343] - Total accounts payable and accrued liabilities decreased from $1,523,012 in 2022 to $700,754 in 2023[349] Capital and Equity - The weighted average common shares outstanding increased to 6.36 million in 2023 from 2.89 million in 2022, reflecting a growth of approximately 120%[312] - Proceeds from the issuance of common stock in 2023 amounted to $6,483,393, compared to $8,399,512 in 2022, a decline of 22.8%[317] - The Company issued a total of 7,221,047 shares of common stock during the year ended December 31, 2023, raising aggregate net proceeds of $7,498,352[355] - A total of 1,583,500 shares of common stock were issued upon warrant exercises, generating net proceeds of $1,014,859 during the year ended December 31, 2023[361] - The Company issued 202,020 shares of restricted common stock valued at $200,485 to PatentVest for services related to its patent portfolio[360] Going Concern and Future Plans - The company has expressed substantial doubt about its ability to continue as a going concern due to recurring losses and negative cash flows from operations[301] - The company plans to advance the engineering design and development of its TAEUS technology and expand marketing efforts for its NAFLD TAEUS application[298] - ENDRA Life Sciences Inc. aims to hire a small internal marketing team to support channel partners and clinical customers for its NAFLD TAEUS application[298] - The Company plans to raise additional capital through equity securities and borrowing to fund future operations[343] Taxation and Compliance - The Company does not have any unrecognized tax benefits as of December 31, 2023 and 2022[383] - No income tax returns are currently under examination for the years 2020 and after[383] - The Company is subject to taxation in multiple states and foreign jurisdictions[383] - Foreign income tax returns after 2020 remain open to examination[383] - The company recorded a full valuation allowance for deferred tax assets due to uncertainty in realizing these assets as of December 31, 2023[381] Other Financial Metrics - The company recognized an inventory reserve of $138,045, which is 5% of the inventory, resulting in a net carrying value of inventory of $2,622,865 as of December 31, 2023[325] - Inventory as of December 31, 2023, was valued at $2,622,865, with a reserve of 5% or $138,045[346][347] - The Company had working capital of $2,129,717 as of December 31, 2023[343] - The Company’s fixed assets, net, decreased from $235,655 in 2022 to $111,782 in 2023[348] - The company incurred rent expenses of $218,815 for the year ended December 31, 2023, compared to $213,912 in 2022[370] - The company has a long-term lease obligation of $192,062 as of December 31, 2023[370] - The Toronto-Dominion Bank loan balance remained at CAD 40,000 as of December 31, 2023, with conditions for partial forgiveness[350] - The Toronto-Dominion Bank Loan was repaid in full after December 31, 2023[385] Stock Options and Warrants - The fair value of stock options granted in 2023 was estimated at $1,017,534, with a volatility rate of 105% to 107%[358] - The company had 1,514,715 potentially dilutive shares as of December 31, 2023, compared to 410,358 in 2022[334] - The company has a total of 882,349 warrants outstanding as of December 31, 2023, with a weighted average exercise price of $1.58[362] - The company reduced the exercise price of certain warrants from $1.40 to $0.70 in December 2023[361] Consulting and Agreements - The company entered into a consulting agreement with a director, compensating him at a rate of $150 per hour for commercialization services[364] - There are no changes or disagreements with accountants on accounting and financial disclosure[386]