Cingulate(US:CING)2024-05-08 11:15Financial Performance - The company reported a net loss of $2,972,477 for the three months ended March 31, 2024, an improvement from a net loss of $4,004,887 for the same period in 2023[62] - For the three months ended March 31, 2024, the company reported a net loss of $2,972,477, compared to a net loss of $4,004,887 for the same period in 2023, representing a 25.7% improvement[81] - Cingulate Inc. reported a net loss of $2,972,477 for Q1 2024, a decrease of 25.7% compared to a net loss of $4,004,887 in Q1 2023[80] - The company reported net cash used in operating activities of $(8,746,360) for the three months ended March 31, 2024, compared to $(3,576,461) for the same period in 2023[62] - The company has incurred losses and negative cash flows from operations since inception, indicating a need for additional funding to support operations and development[89] Assets and Liabilities - Total current assets increased to $2,726,842 as of March 31, 2024, compared to $578,594 as of December 31, 2023, representing a significant growth[45] - Total liabilities decreased to $2,278,396 as of March 31, 2024, down from $10,360,865 as of December 31, 2023[45] - Stockholders' equity improved to $3,216,119 as of March 31, 2024, compared to a deficit of $(6,869,429) at the end of 2023[45] - Total current liabilities decreased significantly to $2,245,251 as of March 31, 2024, from $10,225,766 as of December 31, 2023[45] - As of March 31, 2024, the company's accumulated deficit stood at $95,915,920, reflecting ongoing financial challenges[83] Cash and Financing - Cash and cash equivalents surged to $1,113,830 as of March 31, 2024, up from $52,416 at the end of 2023[45] - The company had cash and cash equivalents of $1,113,830 as of March 31, 2024, down from $1,738,760 at the end of Q1 2023, indicating a decrease of 36%[86] - The company received $5.0 million in debt financing in August 2022 and an additional $3.0 million in May 2023, increasing the total principal amount to $8.0 million[74] - The company is evaluating various strategies to obtain additional funding, which may include equity offerings, debt issuance, or strategic collaborations[89] - The company raised approximately $7.5 million in gross proceeds from a public offering completed in February 2024[103] Research and Development - Cingulate is developing two proprietary medications for ADHD, CTx-1301 and CTx-1302, utilizing a flexible core tableting technology[64] - The company plans to submit a New Drug Application (NDA) for CTx-1301 in the first half of 2025, following the closure of enrollment in Phase 3 clinical trials[64] - Cingulate Inc. closed enrollment for Phase 3 clinical trials for CTx-1301, which targets ADHD treatment[64] - Research and development expenses decreased to $1,806,985 in Q1 2024 from $2,128,616 in Q1 2023, a reduction of approximately 15.1%[81] - Research and development expenses for Q1 2024 were $1,806,985, down 15.1% from $2,128,616 in Q1 2023[80] Stock and Equity - The company issued 3,552,000 shares in a public offering, netting $6,432,892 after fees[60] - The company completed a one-for-twenty reverse stock split on November 30, 2023, which reduced the number of shares issued and outstanding[77] - The company has a total of 6,046,479 shares of common stock issued and outstanding as of May 3, 2024[52] - The Company issued Series A and Series B warrants in the February 2024 Offering, with Series A warrants having an exercise price of $2.00 and a five-year term[111] - The Company issued Series A warrants for 3,750,000 shares and Series B warrants for 1,875,000 shares at an exercise price of $2.00 per share[111] Tax and Expenses - The company recognized $31,250 in interest expense related to a related party note for Q1 2024, down from $187,500 in Q1 2023, a reduction of 83.4%[76] - The federal income tax benefit for the three months ended March 31, 2024, was $(588,266), compared to $(841,026) for the same period in 2023[116] - The state income tax benefit for the same period was $(154,910), down from $(221,470) in the prior year[116] - The Company recorded a change in valuation allowance of $770,439 for the three months ended March 31, 2024[116] - The Company recorded stock-based compensation expenses of $164,575 for the three months ended March 31, 2024, compared to $204,479 for the same period in 2023[105]