Nuvectis Pharma(NVCT) - 2022 Q1 - Quarterly Report

Financial Position - As of March 31, 2022, Nuvectis Pharma had cash and cash equivalents of $16.7 million, a significant increase from $5.7 million as of December 31, 2021, representing a 191% increase[10] - Total current assets increased to $17.618 million as of March 31, 2022, compared to $5.833 million as of December 31, 2021, marking a 202% increase[10] - The company had an accumulated deficit of $15.843 million as of March 31, 2022, up from $12.900 million at the end of 2021[10] - Nuvectis Pharma's total liabilities as of March 31, 2022, were $3.059 million, unchanged from December 31, 2021[10] - As of March 31, 2022, the company reported a net cash used in operating activities of $3.0 million, primarily due to a net loss of $2.9 million[98] - Net cash provided by financing activities for the three months ended March 31, 2022, was $14.0 million, mainly from the sale of common stock[100] Losses and Expenses - The company reported a net loss of $2.943 million for the three months ended March 31, 2022, compared to a net loss of $23, indicating a substantial increase in losses[13] - Research and development expenses for the first quarter of 2022 were $1.805 million, while general and administrative expenses were $1.140 million, reflecting a shift in operational focus[13] - The company reported a net loss attributable to common stockholders of $2.943 million for the three months ended March 31, 2022, resulting in a basic and diluted net loss per share of $0.32, compared to a loss of $23,000 and less than $0.01 per share for the same period in 2021[64] - The company expects substantial increases in research and development and general administrative expenses as it advances its product candidates and builds its infrastructure[87] - The company anticipates incurring additional costs associated with operating as a public company following the IPO[91] Initial Public Offering (IPO) - Nuvectis Pharma completed an initial public offering on February 8, 2022, selling 3,200,000 shares at $5.00 per share, resulting in net proceeds of $12.6 million[28] - The company completed its initial public offering (IPO) on February 8, 2022, raising gross proceeds of $16.0 million, with net proceeds of $12.6 million[90] - Nuvectis Pharma's shares began trading on NASDAQ under the symbol "NVCT" in February 2022, marking a significant milestone for the company[28] Stock and Equity - The company converted 5,012,280 shares of Series A redeemable convertible preferred stock into common stock on a 1:1 basis, enhancing its equity structure[28] - As of March 31, 2022, the company had 12,717,794 shares of common stock issued and paid, an increase from 4,505,514 shares as of December 31, 2021[50] - The company has a total of 408,486 common stock reserved for issuance under the 2021 Global Equity Incentive Plan, which was increased to 1,500,000 shares in February 2022[57] Research and Development - The company plans to raise additional capital to fund clinical trials and product development, indicating ongoing financial needs[27] - The company plans to clinically investigate NXP800 in Ovarian Clear Cell Carcinoma and endometrioid ovarian carcinoma, with a focus on the ARID1a mutation as a potential biomarker[74] - NXP900, a preclinical-stage drug candidate, is designed to inhibit SRC and YES1 kinases, with plans to submit an IND or equivalent submission in early 2023[78] - The company has committed to provide up to an additional $500,000 in research and development support to the Institute of Cancer Research in London over the next 18 months[43] Compensation and Bonuses - The company awarded bonuses totaling $431,250 related to the completion of the IPO, with additional salary increases for key executives[69] - The company expects to recognize $0.3 million of unrecognized stock-based compensation expense related to unvested stock options over a weighted-average period of 2.25 years[59] - The company granted 29,000 restricted stock units (RSUs) during the three months ended March 31, 2022, with an expected total unrecognized compensation cost of $0.2 million to be recognized over a weighted average period of 2.63 years[61] - The company granted 128,000 fully vested warrants to HC Wainwright & Co. with an estimated value of approximately $458,000, recognized as a reduction from gross proceeds of the IPO[55] Legal and Regulatory - There are no material legal proceedings currently involving the company that would adversely impact its financial position[117] - The company has not experienced any significant changes in critical accounting policies compared to previous disclosures[109] - The company has no long-term leases and operates under a one-year rental agreement for its office space[105] Management - Ron Bentsur serves as the Chairman, Chief Executive Officer, and President of Nuvectis Pharma, Inc.[131] - Michael J Carson is the Vice President of Finance and serves as the Principal Financial and Accounting Officer[131]