Revelation Biosciences(US:REVB)2023-11-09 21:07Financial Performance - As of September 30, 2023, the company had an accumulated deficit of $23.3 million and expects to continue generating operating losses and negative cash flows for the foreseeable future[138]. - The company reported a net loss of $2.63 million for the three months ended September 30, 2023, compared to a net loss of $1.17 million for the same period in 2022[148]. - The company expects to continue to incur significant operating and net losses, as well as negative cash flows from operations, for the foreseeable future[160]. - Net cash used in operating activities was $5.3 million for the nine months ended September 30, 2023, compared to $10.3 million in 2022[163]. Funding and Capital Structure - 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 to sustain operations within one year[136]. - The company plans to seek additional funding through public or private equity or debt financings, but there is no guarantee that financing will be obtained on acceptable terms[137]. - A reverse stock split of 1-for-35 was executed on February 1, 2023, increasing the authorized common stock from 100 million to 500 million shares[141]. - Net cash provided by financing activities was $14.0 million for the nine months ended September 30, 2023, from net cash proceeds of $14.0 million received from the February 2023 Public Offering[166]. Expenses - Research and development expenses for the three months ended September 30, 2023, were $1.65 million, compared to $1.27 million for the same period in 2022, reflecting an increase of approximately 30%[148]. - General and administrative expenses for the three months ended September 30, 2023, were $1.13 million, compared to $0.82 million for the same period in 2022, indicating a rise of approximately 38%[148]. - Total operating expenses for the nine months ended September 30, 2023, were $6.33 million, down from $9.65 million for the same period in 2022, a decrease of approximately 34%[148]. - Research and development expenses increased by $1.3 million, from $0.4 million for the three months ended September 30, 2022 to $1.7 million for the three months ended September 30, 2023[150]. - For the nine months ended September 30, 2023, research and development expenses decreased by $2.0 million, from $5.0 million in 2022 to $3.1 million in 2023[151]. - General and administrative expenses increased by $0.3 million, from $0.8 million for the three months ended September 30, 2022 to $1.1 million for the three months ended September 30, 2023[152]. - General and administrative expenses decreased by $1.4 million, from $4.6 million for the nine months ended September 30, 2022 to $3.2 million for the nine months ended September 30, 2023[153]. Cash and Liquidity - As of September 30, 2023, the company had available cash and cash equivalents of $14.0 million and an accumulated deficit of $23.3 million[156]. - The company anticipates that research and development expenses will increase substantially as it continues to develop its product candidates[144]. Accounting and Compliance - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards[181]. - The company has elected to use an extended transition period for compliance with new accounting standards until it is no longer classified as an emerging growth company[182]. - Stock-based compensation expenses are recognized based on the estimated fair value of awards at the date of grant[177]. Other Financial Information - Other income (expense), net was $149,521 for the three months ended September 30, 2023, compared to $28,728 in 2022[154]. - The fair value of cash and cash equivalents would not be significantly affected by interest rate changes due to their short-term nature[172]. - A 10% increase or decrease in currency exchange rates would not have a material effect on financial results[173]. - Foreign currency transaction gains and losses have not been material to date, and the company may consider a formal hedging program in the future[173]. - Management's estimates for accrued expenses related to clinical studies are based on patient enrollment levels and may differ from actual expenses[176]. - The company has not experienced significant changes in estimates of clinical study accruals to date[176]. - The fair value of common stock is determined based on various factors including market conditions and comparable public companies[179]. - The company has entered into an operating lease for laboratory space with total contractual obligations of $28,890[168]. - As of September 30, 2023, there were 3,006 Rollover RSU awards and 35,005 stock options outstanding[178].