Financial Performance - For the three months ended March 31, 2024, total operating expenses decreased to $2,477,317 from $4,860,678 for the same period in 2023, representing a reduction of approximately 49%[97] - The net loss for the three months ended March 31, 2024, was $2,456,915, compared to a net loss of $4,677,527 for the same period in 2023, indicating an improvement of approximately 47%[97] - For the three months ended March 31, 2024, the company reported a loss from operations of $2,477,317 and operating cash outflows of $2,598,347[105][110] - The net cash used in operating activities for the three months ended March 31, 2024, was $2,598,347, compared to $5,137,009 for the same period in 2023[109][111] - The net cash used in investing activities was $0 for the three months ended March 31, 2024, compared to $5,169 in the same period in 2023[112] Expenses Breakdown - General and administrative expenses decreased by $1,014,647, or 34%, from $2,948,400 in Q1 2023 to $1,933,753 in Q1 2024, primarily due to reductions in consulting expenses and salaries[98] - Research and development expenses saw a significant decrease of $1,367,637, or approximately 75%, from $1,825,792 in Q1 2023 to $458,155 in Q1 2024, largely driven by reduced salaries and research costs[99] Cash and Financing Activities - As of March 31, 2024, the company had cash of $6,356,036 and working capital of $5,860,884, which is insufficient to meet its operating cash needs for the next 12 months[106] - The company provided $6,658,269 in net cash from financing activities during the three months ended March 31, 2024, primarily from stock subscription and warrant exercises[113] - The company issued 1,668,000 shares of common stock for gross proceeds of $2,392,502 during the three months ended March 31, 2024[89] - The company entered into warrant exercise inducement offer letters on December 28, 2023, allowing holders to exercise existing warrants at a reduced price, generating total proceeds of $280,500[90] Business Operations and Strategy - The company has created over 1,000 novel psychedelic molecular compounds and derivatives housed in the Psybrary™, focusing on developing lead molecules EB-002 and EB-003[88] - The company is dedicated to developing novel neuroplastogenic small-molecule therapeutics for mental health disorders, leveraging its proprietary Psybrary™ platform[87] - The company has not generated any revenue since inception and has funded its operations mainly through debt and equity issuance[105][108] - The company is exploring additional working capital through public or private equity or debt financings to alleviate its financial conditions[106] Financial Health and Concerns - The company has incurred an accumulated deficit of $98,956,433 as of March 31, 2024, and anticipates further losses in its business development[105] - Management has substantial doubt about the company's ability to continue as a going concern for one year from the issuance of the financial statements[107] - The change in fair value of warrant liabilities resulted in income of $10,039 for Q1 2024, compared to $50,657 in Q1 2023, reflecting a decrease in outstanding warrants[102] - The change in fair value of investment option liability resulted in income of $11,398 for Q1 2024, down from $119,505 in Q1 2023, due to the exercise of investment options and a decrease in stock price[103] - The company has not entered into any financial derivative instruments to hedge against foreign currency exposure, but may consider doing so in the future[118]
Enveric Biosciences(ENVB) - 2024 Q1 - Quarterly Report