Revelation Biosciences(US:REVB)2023-08-11 20:09Financial Condition - As of June 30, 2023, the company had an accumulated deficit of $20.6 million and expects to continue generating operating losses and negative cash flows for the foreseeable future[140]. - The company raised net proceeds of $43.9 million through the issuance and sale of capital stock since its inception in May 2020, but current cash and cash equivalents will not be sufficient for necessary product development or commercialization efforts[138]. - As of June 30, 2023, there were 3,006 Rollover RSU awards and 35,005 stock options outstanding, indicating ongoing stock-based compensation commitments[180]. - As of June 30, 2023, there were 3,006 Rollover RSU awards and 35,005 stock options outstanding[180]. - The company has entered into an operating lease for laboratory space with total contractual obligations of $57,780[170]. - As of June 30, 2023, the company had available cash and cash equivalents of $15.7 million and an accumulated deficit of $20.6 million[158]. - The company expects to continue to incur significant operating losses and negative cash flows for the foreseeable future[162]. Research and Development - Research and development expenses for the three months ended June 30, 2023, were $1.4 million, a decrease of $0.1 million from $1.0 million in the same period in 2022[151]. - For the six months ended June 30, 2023, research and development expenses decreased by $3.2 million to $1.4 million from $4.7 million in the same period in 2022[152]. - The company anticipates that research and development expenses will increase substantially as it continues to advance its product candidates into larger clinical studies[146]. - The company has never generated revenue and does not expect to do so until successful completion and regulatory approval of its product candidates, which may take several years[141]. - The company is focused on developing therapeutics for acute organ injury and chronic organ disease, with several product candidates in various stages of development[136]. Operating Expenses - Total operating expenses for the three months ended June 30, 2023, were $1.9 million, compared to $1.9 million for the same period in 2022, reflecting a slight increase[150]. - General and administrative expenses increased by $0.1 million, from $0.9 million for the three months ended June 30, 2022 to $1.0 million for the three months ended June 30, 2023[154]. - General and administrative expenses decreased by $1.7 million, from $3.8 million for the six months ended June 30, 2022 to $2.1 million for the six months ended June 30, 2023[155]. Funding and Going Concern - The company plans to seek additional funding through public or private equity or debt financings, but there is substantial doubt about its ability to continue as a going concern if funding is not obtained[139]. - The company plans to seek additional funding through public or private equity or debt financings to continue operations[163]. Stock and Market Risks - A reverse stock split of 1-for-35 was executed on February 1, 2023, following the approval to change the authorized common stock from 100 million to 500 million shares[142]. - The fair value of common stock is determined based on various factors including third-party valuations, operating results, and market conditions, particularly after the Business Combination[181]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards until they apply to private companies[183]. - The company has opted to use an extended transition period for compliance with new accounting standards, which may affect comparability with other public companies[184]. - The company is exposed to market risks in the ordinary course of business, which may affect its financial condition and results of operations[173]. Cash Flow - Net cash used in operating activities was $3.6 million for the six months ended June 30, 2023, compared to $8.5 million for the same period in 2022[165]. - Net cash provided by financing activities was $14.0 million during the six months ended June 30, 2023, primarily from a public offering[168]. Other Financial Information - Other income (expense), net was $484,860 for the three months ended June 30, 2023, related to the change in fair value of the warrant liability and foreign currency transaction gains[156]. - Foreign currency transaction gains and losses have not been material to date, with a 10% change in exchange rates expected to have no significant impact on financial results[175]. - Cash and cash equivalents are primarily in highly liquid investments with short maturities, minimizing interest rate risk exposure[174]. - The company recognizes stock-based compensation expenses based on the estimated fair value of awards at the grant date, using the Black-Scholes option-pricing model[179]. - Management's estimates and assumptions in financial reporting are based on industry experience, but actual results may differ materially from these estimates[176]. - The company has not experienced significant changes in estimates of clinical study accruals, indicating stable management of research and development expenditures[178].