Revelation Biosciences(US:REVB)2022-08-15 21:02Financial Performance - Revelation Biosciences has incurred a net loss of $1.8 million and $8.5 million for the three and six months ended June 30, 2022, respectively, compared to $2.5 million and $5.1 million for the same periods in 2021 [121]. - The accumulated deficit as of June 30, 2022, was $23.0 million, indicating ongoing financial challenges [121]. - The total loss from operations for the six months ended June 30, 2022, was $8.4 million, reflecting increased expenditures in research and development [132]. - The company incurred a net loss of $8.5 million for the six months ended June 30, 2022, with an accumulated deficit of $23.0 million as of the same date [143]. - The company expects to continue generating substantial operating losses as it expands research and development activities [141]. Funding and Cash Flow - The company has raised net proceeds of $25.5 million since its inception in May 2020, but its current cash and cash equivalents will not be sufficient to sustain operations within one year [119]. - The company plans to seek additional funding through public or private equity or debt financings to support its operations and product development [120]. - Net cash used in operating activities was $8.5 million for the six months ended June 30, 2022, compared to $6.0 million for the same period in 2021 [147]. - The company raised net proceeds of $25.5 million from the issuance and sale of common stock, preferred stock, and warrants since inception, with $11.6 million received during the six months ended June 30, 2022 [139]. - The net cash provided by financing activities was $10.7 million for the six months ended June 30, 2022, compared to $8.0 million for the same period in 2021 [151]. Research and Development - Research and development expenses increased by $1.9 million, from $2.7 million for the six months ended June 30, 2021, to $4.7 million for the same period in 2022 [134]. - Research and development expenses for the three months ended June 30, 2022, were $1.2 million, a decrease from $1.0 million for the same period in 2021 [133]. - The company has not generated revenue and does not expect to do so until successful completion and regulatory approval of its product candidates, which may take several years [143]. - Revelation Biosciences is focused on developing immune system therapeutics and diagnostics, with current product candidates targeting allergies and viral infections [117]. Operating Expenses - Total operating expenses for the six months ended June 30, 2022, were $8.4 million, compared to $5.0 million for the same period in 2021 [132]. - General and administrative expenses decreased by $0.4 million, from $1.3 million for the three months ended June 30, 2021 to $0.9 million for the three months ended June 30, 2022 [135]. - For the six months ended June 30, 2022, general and administrative expenses increased by $1.5 million, totaling $3.8 million compared to $2.3 million for the same period in 2021 [136]. Financial Position and Obligations - As of June 30, 2022, the company had available cash and cash equivalents of $3.5 million and an accumulated deficit of $23.0 million [139]. - Total contractual obligations as of June 30, 2022, amounted to $332,099, primarily related to operating lease obligations and a Premium Finance Agreement for D&O Insurance [153]. Risk Management - The company is exposed to market risks in the ordinary course of business, highlighting the need for ongoing risk assessment [156]. - A 10% increase or decrease in currency exchange rates would not have a material effect on the company's financial results, indicating a level of resilience to foreign currency risk [159]. - The company has not had a formal hedging program for foreign currency but may consider implementing one in the future, reflecting a proactive approach to managing currency risk [158]. - Cash and cash equivalents are primarily in highly liquid investments with original maturities of 90 days or less, minimizing interest rate risk exposure [157]. Accounting and Valuation - The fair value of common stock is determined based on various factors including third-party valuations, operating results, and market conditions, especially in the biotechnology industry [164]. - The company recognizes stock-based compensation expenses using the Black-Scholes option-pricing model, which incorporates various inputs such as expected volatility and risk-free rates [162]. - Management regularly evaluates estimates and assumptions related to financial statements, which could lead to material differences in actual results [160]. - Recent accounting pronouncements may impact the company's financial condition, with ongoing assessments being conducted [165]. - The company has not experienced significant changes in estimates of clinical study accruals, suggesting stable management of research and development expenditures [161].