Nuvectis Pharma(US:NVCT)2022-08-10 17:33Financial Position - As of June 30, 2022, Nuvectis Pharma had cash and cash equivalents of $13.6 million, a significant increase from $5.7 million as of December 31, 2021, representing a 137% growth[10]. - Total stockholders' equity increased to $11.5 million as of June 30, 2022, compared to a deficit of $11 million as of December 31, 2021[10]. - The company incurred an accumulated deficit of $19.4 million as of June 30, 2022, up from $12.9 million at the end of 2021[24]. - The company’s total current assets increased to $14.2 million as of June 30, 2022, compared to $5.8 million as of December 31, 2021, reflecting a 143% increase[10]. - As of June 30, 2022, the company had 331,580 RSUs outstanding with an intrinsic value of $3.714 million[62]. - As of June 30, 2022, the company was obligated to pay up to $23.0 million in milestone payments related to the NXP800 License Agreement, with additional potential payments of up to $178 million for regulatory and commercial sales milestones[113]. - Under the NXP900 License Agreement, the company is required to make payments of up to $46.0 million in milestone payments, including $0.5 million on the first anniversary of the agreement, and up to $279.5 million in regulatory and commercial sales milestones[114]. Revenue and Losses - The company reported a net loss of $3.6 million for the three months ended June 30, 2022, compared to a net loss of $5.9 million for the same period in 2021, indicating a 40% improvement in losses[13]. - The net loss attributable to common stockholders for the six months ended June 30, 2022, was $6.512 million, with a basic net loss per share of $0.59[67]. - The net loss for the six months ended June 30, 2022, increased by $0.6 million or 9% to $6.5 million compared to $6.0 million in the same period in 2021[97]. - The company has not generated any revenue since its inception on July 27, 2020, and has focused on organizational and capital raising activities[84]. Expenses - Research and development expenses for the three months ended June 30, 2022, were $2.5 million, down 41% from $4.2 million in the same period of 2021[13]. - General and administrative expenses decreased by $0.6 million or 37% to $1.1 million for the three months ended June 30, 2022, compared to $1.7 million in the same period in 2021[92]. - For the six months ended June 30, 2022, research and development expenses increased by $0.1 million or 2% to $4.3 million compared to $4.2 million in the same period in 2021[95]. - General and administrative expenses increased by $0.5 million or 29% to $2.2 million for the six months ended June 30, 2022, compared to $1.7 million in the same period in 2021[96]. - The company anticipates significant increases in expenses related to ongoing activities, particularly for clinical trials and operating as a public company[102]. Capital Raising Activities - 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[27]. - The company raised approximately $14.2 million in net proceeds from a private placement completed on July 29, 2022[25]. - The company completed a private placement on July 27, 2022, raising approximately $15.9 million through the issuance of 1,015,598 shares at $8.25 per share[72]. - For the six months ended June 30, 2022, net cash provided by financing activities was $13.4 million, primarily from the sale of common stock, offset by $2.6 million in commissions and deferred offering costs[110]. Stock and Equity - The weighted average number of common shares outstanding increased significantly to 12,717,794 as of June 30, 2022, from 4,155,661 in the same period of 2021[13]. - As of June 30, 2022, the Company had 12,717,794 common shares issued and paid, with a total authorized common stock of 60,000,000[52]. - The Company granted 128,000 fully vested warrants with an exercise price of $6.25 per share, valued at approximately $458,000, as part of the IPO[55]. - The Company has reserved a total of 1,500,000 common stock for issuance under the 2021 Global Equity Incentive Plan[57]. - As of June 30, 2022, there was $0.6 million of unrecognized stock-based compensation expense related to unvested stock options expected to be recognized over a weighted-average period of 2.22 years[59]. - The Company recognized $0.1 million of research and development support expense during the three and six months ended June 30, 2022[45]. Clinical Development - The Phase 1 clinical trial for NXP800 was initiated in December 2021, with the FDA clearing the IND application in June 2022[79]. - NXP900, a preclinical-stage drug candidate, demonstrated potent inhibition of SRC and YES1 kinases and substantial growth inhibition in animal models[81]. - The company plans to submit an IND for NXP900 in early 2023[82]. - The Company has agreed to provide an additional $865,000 in research and development support to the Institute of Cancer Research over the next 18 months for the NXP800 Program[45]. Accounting and Compliance - The Company’s financial statements are prepared in accordance with U.S. GAAP and are stated in U.S. dollars[33]. - The company has no contingent liabilities as of June 30, 2022, and December 31, 2021[50]. - The Company’s common stock has no preemptive rights, conversion rights, or other subscription rights[53]. - There have been no significant changes to critical accounting policies and estimates compared to the previous fiscal year[119]. - The company has not issued any unregistered securities during the reporting period[129]. - As of June 30, 2022, the company's disclosure controls and procedures were deemed effective by management[124]. - The company does not currently have any off-balance sheet arrangements[117].