Revelation Biosciences(REVB) - 2024 Q1 - Quarterly Results

Press Release Introduction Announcement of Q1 2024 Financial Results Revelation Biosciences, Inc. announced its financial results for the three months ended March 31, 2024, highlighting its status as a clinical-stage life sciences company focused on harnessing trained immunity for disease prevention and treatment - Revelation Biosciences, Inc. (NASDAQ: REVB) reported its financial results for the three months ended March 31, 2024[1] - The company is a clinical-stage life sciences company focused on harnessing trained immunity for disease prevention and treatment[1] Company Overview Revelation Biosciences is a clinical-stage life sciences company dedicated to leveraging trained immunity for disease prevention and treatment, primarily through its proprietary Gemini formulation, with multiple ongoing development programs - Revelation Biosciences, Inc. is a clinical-stage life sciences company focused on harnessing trained immunity for disease prevention and treatment[6] - The company utilizes its proprietary formulation, Gemini, in multiple ongoing programs[6] - Current programs for Gemini include prevention of post-surgical infection, acute kidney injury, and treatment of chronic kidney disease[6] Product Overview: Gemini Gemini, Revelation's proprietary PHAD® formulation, is being developed for systemic administration across multiple indications, including post-surgical infection, acute kidney injury, and chronic kidney disease, by modulating trained immunity - Gemini is a proprietary formulation of phosphorylated hexaacyl disaccharide (PHAD®) for systemic administration[5] - It is being developed for multiple indications, including pretreatment for post-surgical infection (GEMINI-SSI) and acute kidney injury (GEMINI-AKI)[5] - Gemini may also treat chronic kidney disease (GEMINI-CKD) by modulating trained immunity to attenuate the innate immune response[5] Financial Performance Summary Key Financial Highlights Revelation Biosciences reported an increase in cash and cash equivalents to $14.6 million as of March 31, 2024, which is projected to fund operations through 2024. The company recorded a net loss of $2.7 million for Q1 2024, a significant shift from net earnings in the prior year period Cash and Cash Equivalents (USD) | Metric | March 31, 2024 | December 31, 2023 | | :---------------------- | :------------- | :---------------- | | Cash and cash equivalents | $14.6 million | $12.0 million | - The increase in cash and cash equivalents was primarily due to net cash received from financing activities, offset by cash used for operating activities[2] - Revelation believes its current cash and cash equivalents are sufficient to fund operations through 2024[2] Net (Loss) Earnings and Per Share Data (USD) | Metric | Q1 2024 | Q1 2023 | | :------------------------- | :------------- | :------------ | | Net (loss) earnings | $(2.7) million | $6.2 million | | Basic net loss per share | $(2.46) | $45.52 | | Diluted net loss per share | $(2.46) | $37.07 | Analysis of Operational Changes The increase in net cash used for operating activities was primarily driven by higher clinical study expenses for GEM-AKI and GEM-SSI. The shift from net earnings to net loss was mainly due to the absence of a significant gain from the change in fair value of warrant liability, which occurred in the prior year Net Cash Used for Operating Activities (USD) | Metric | Q1 2024 | Q1 2023 | Change (YoY) | | :------------------------------ | :------------ | :------------ | :----------- | | Net cash used for operating activities | $2.8 million | $1.6 million | +$1.2 million| - The change in net cash used for operating activities was primarily due to GEM-AKI and GEM-SSI clinical study expenses[4] - The shift from net earnings in Q1 2023 to net loss in Q1 2024 was primarily due to a $7.7 million gain from the change in fair value of warrant liability in Q1 2023, which did not recur in Q1 2024[4] Consolidated Financial Statements Consolidated Statements of Operations For the three months ended March 31, 2024, Revelation Biosciences reported a net loss of $2.68 million, a significant decline from net earnings of $6.16 million in the prior year. This was primarily due to a substantial decrease in other income related to warrant liability fair value changes, while total operating expenses increased by 17.4% year-over-year Consolidated Statements of Operations (USD) | Metric | 2024 | 2023 | Change (YoY) | | :-------------------------------- | :------------ | :------------ | :----------- | | Research and development | $717,582 | $525,273 | +36.6% | | General and administrative | $1,184,556 | $1,094,574 | +8.2% | | Total operating expenses | $1,902,138 | $1,619,847 | +17.4% | | Loss from operations | $(1,902,138) | $(1,619,847) | -17.4% | | Change in fair value of warrant liability | $68,427 | $7,744,935 | -99.1% | | Other (expense) income, net | $(847,722) | $34,107 | N/A | | Total other (expense) income, net | $(779,295) | $7,779,042 | N/A | | Net (loss) earnings | $(2,681,433) | $6,159,195 | N/A | | Net (loss) earnings per share, basic | $(2.46) | $45.52 | N/A | | Weighted-average shares, basic | 1,089,833 | 135,305 | +705.5% | | Net (loss) earnings per share, diluted | $(2.46) | $37.07 | N/A | | Weighted-average shares, diluted | 1,089,833 | 166,144 | +556.0% | Consolidated Balance Sheets As of March 31, 2024, Revelation's total assets increased to $14.7 million from $12.2 million at December 31, 2023, primarily driven by a rise in cash and cash equivalents. Total liabilities saw a slight decrease, while stockholders' equity significantly increased due to additional paid-in capital Consolidated Balance Sheets (USD) | Metric | March 31, 2024 | December 31, 2023 | Change | | :-------------------------------- | :------------- | :---------------- | :----------- | | Cash and cash equivalents | $14,551,740 | $11,991,701 | +$2,560,039 | | Total current assets | $14,623,616 | $12,147,525 | +$2,476,091 | | Total assets | $14,701,610 | $12,212,609 | +$2,489,001 | | Total current liabilities | $5,228,465 | $5,564,894 | -$336,429 | | Total liabilities | $5,228,465 | $5,564,894 | -$336,429 | | Common Stock (shares outstanding) | 1,632,935 | 264,537 | +1,368,398 | | Additional paid-in-capital | $37,620,047 | $32,114,552 | +$5,505,495 | | Accumulated deficit | $(28,148,535) | $(25,467,102) | -$2,681,433 | | Total stockholders' equity | $9,473,145 | $6,647,715 | +$2,825,430 | Corporate Information Forward-Looking Statements This section provides a standard disclaimer regarding forward-looking statements, cautioning investors about inherent risks and uncertainties that could cause actual results to differ materially from projections. Key risks include competition, ability to manage growth, successful product development, clinical study outcomes, regulatory approvals, and funding duration - The press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995[9] - These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from anticipated[9] - Key risks include the ability to meet financial goals, manage growth, successfully develop product candidates, complete clinical studies, obtain regulatory approvals, and the expected duration of funding[9] Company Contacts Contact information for Revelation Biosciences' Vice President of Investor Relations & Human Resources and Chief Financial Officer is provided for investor and media inquiries - Contact information is provided for Sandra Vedrick, Vice President, Investor Relations & Human Resources, and Chester Zygmont, III, Chief Financial Officer[14]