MediciNova(MNOV) - 2024 Q1 - Quarterly Report

Financial Performance - Total current assets decreased from $51,174,380 on December 31, 2023, to $47,863,595 on March 31, 2024, a decline of approximately 6.4%[15] - Operating expenses increased to $3,135,993 for the three months ended March 31, 2024, compared to $2,963,243 for the same period in 2023, representing a rise of about 5.8%[17] - The net loss for the first quarter of 2024 was $2,754,518, a slight improvement from the net loss of $2,917,504 in Q1 2023, indicating a reduction of approximately 5.6%[17] - Cash and cash equivalents decreased from $50,999,442 at the beginning of the period to $47,138,799 at the end of March 2024, a decrease of about 7.5%[22] - The total stockholders' equity decreased from $62,378,424 on December 31, 2023, to $59,830,444 on March 31, 2024, a decline of about 4.4%[15] - The company reported interest income of $397,510 for Q1 2024, down from $509,046 in Q1 2023, reflecting a decrease of approximately 22%[17] - The company’s cash flow from operating activities for Q1 2024 was $(3,868,248), compared to $(3,177,413) in Q1 2023, indicating an increase in cash used in operations[22] - The accumulated deficit of the company reached $418.5 million as of March 31, 2024, indicating significant net losses since inception[68] Research and Development - Research and development expenses totaled $1,781,869 for Q1 2024, up from $1,476,676 in Q1 2023, marking an increase of approximately 20.6%[17] - The company plans to advance the development of MN-166 (ibudilast) through a combination of investigator-sponsored clinical trials and trials funded by government grants[70] - The company has incurred research, development, and patents expenses primarily related to clinical development, with expectations to increase these costs through the remainder of 2024[76] - Research, development, and patents expenses increased to $1.8 million for the three months ended March 31, 2024, compared to $1.5 million in the same period of 2023, primarily due to higher manufacturing costs for MN-166[85] - Future potential milestone payments for product development total $26.5 million as of March 31, 2024, with $10 million related to MN-166 and MN-001[48] Stock and Equity - The company has maintained its common stock at 49,046,246 shares issued and outstanding as of March 31, 2024, consistent with the previous quarter[19] - As of March 31, 2024, 1,355,923 shares remain available for future grants under the 2023 Equity Incentive Plan[52] - The Company adopted the 2023 Equity Incentive Plan in June 2023, succeeding the 2013 Plan, with a maximum of 9,934,567 shares potentially available for issuance[51] - As of March 31, 2024, the company had a total of 1,016,000 shares underlying performance options subject to vesting based on achievement of corporate objectives for 2024[53] - The total stock-based compensation expense for the three months ended March 31, 2024, was $215,430, a decrease of 46.5% compared to $403,263 for the same period in 2023[56] - The weighted-average fair value of each stock option granted during the three months ended March 31, 2024, was $1.00, down from $1.60 in 2023[58] - As of March 31, 2024, there were 8,578,644 potentially dilutive outstanding stock options excluded from diluted net loss per share due to their anti-dilutive effect[63] Lease and Operating Expenses - The Company reported cash paid for operating lease liabilities of $64,594 for the three months ended March 31, 2024, compared to $64,990 for the same period in 2023[45] - Total operating lease liabilities as of March 31, 2024, amounted to $569,072, down from $626,586 as of December 31, 2023[45] - The weighted-average remaining lease term is 2.60 years, with a weighted-average discount rate of 9.3%[45] - General and administrative expenses decreased to $1.4 million for the three months ended March 31, 2024, from $1.5 million in the same period of 2023, mainly due to a reduction in performance-based stock option expenses[86] Strategic Partnerships and Future Plans - The company intends to pursue strategic partnerships with leading pharmaceutical companies to support clinical development and commercialization of its products[70] - The Company is currently evaluating the potential impact of ASU 2023-07 on its consolidated financial statements and related disclosures, effective for fiscal years beginning after December 15, 2023[39] - The company has not made any milestone payments under its licensing agreements during the three months ended March 31, 2024[48] - The company believes it carries reasonably adequate insurance for product liability risks associated with its drug products[46] - The company has not experienced any material changes in its critical accounting policies during the three months ended March 31, 2024[82] Cash Position - As of March 31, 2024, the company had available cash and cash equivalents of $47.1 million and working capital of $45.4 million, sufficient to fund operations at least through the end of 2025[90] - Net cash used in operating activities was $3.9 million for the three months ended March 31, 2024, compared to $3.2 million in the same period of 2023, reflecting a $0.7 million change related to decreased net loss[88] - The company has not sold any shares of common stock under the ATM Agreement in the three months ended March 31, 2024, and 2023[61] - No shares of common stock were sold under the at-the-market issuance sales agreement in the three months ended March 31, 2024, and 2023[92]