Financial Performance - The net loss for the nine months ended September 30, 2023, was $5,042,535, a reduction of 49.9% from $10,056,302 in the same period of 2022[175]. - The company reported a net income of $763,203 for the three months ended September 30, 2023, compared to a net loss of $3,026,476 in the prior year[183]. - Total operating expenses for the nine months ended September 30, 2023, were $6,181,446, a decrease of approximately 39.7% compared to $10,246,129 for the same period in 2022[170]. - General and administrative expenses decreased by approximately 10.3% to $4,784,415 for the nine months ended September 30, 2023, compared to $5,334,260 in 2022[173]. - Research and development expenses for the nine months ended September 30, 2023, were $1,397,031, down 71.6% from $4,911,869 in the prior year, primarily due to reduced activities related to the Phase 2 clinical trial for Alzheimer's Disease (AD)[171]. Cash Flow and Liquidity - Cash used in operating activities was $4,107,209 for the nine months ended September 30, 2023, a decrease of approximately 51.3% compared to $8,427,727 for the same period in 2022[189]. - The net cash used in investing activities was $2,707 for the nine months ended September 30, 2023, down from $5,275 in the prior year, indicating a reduction in capital expenditures[191]. - Net cash used in financing activities was $1,641,015 for the nine months ended September 30, 2023, compared to cash provided by financing activities of $553,150 for the same period in 2022, reflecting a shift towards paying dividends and redeeming investments[192]. - As of September 30, 2023, the company had working capital of $30,522,980, a decrease of $6,749,871 from $37,272,851 as of December 31, 2022, primarily due to operating expenses and preferred stock dividends[185]. - The decrease in cash used in operating activities was primarily due to a reduction in net loss of approximately $5.0 million[190]. Clinical Study and Research Development - The Phase 2 study of Bryostatin-1 did not achieve statistical significance on the primary endpoint, but secondary endpoints showed statistical significance in the most advanced and severe Alzheimer's disease patient population[159]. - The total estimated budget for the Phase 2 clinical study assessing Bryostatin-1 is approximately $11 million, with a net budgeted cost to the company of $8.3 million after NIH grant support[157]. - As of September 30, 2023, the company incurred cumulative expenses of approximately $10.6 million associated with services provided for the Phase 2 clinical study of Bryostatin-1, offset by NIH reimbursements of $2.7 million[158]. - The company incurred approximately $1.5 million of cumulative expenses associated with the 2022 Study as of September 30, 2023[163]. - The company anticipates ongoing research and development expenditures as part of its product development strategy[188]. Funding and Financial Challenges - Additional capital will be required to initiate and complete potential AD clinical trials and obtain regulatory approval for therapeutic candidates[187]. - The company may face challenges in accessing additional funding on favorable terms, which could materially harm its business and financial condition[187]. - The company expects to incur losses and negative cash flows from operations over at least the next several years as it continues to develop AD and other therapeutic products[188]. Preferred Stock and Dividends - The Series B Preferred Stock carries a dividend rate of 7% per annum, compounded monthly, which increases to 15% per annum upon the occurrence of a Triggering Event[146]. - During the three months ended September 30, 2023, the company redeemed $3 million of the Series B Preferred Stock and $192,500 of accrued dividends, issuing 8,086,785 shares of Common Stock through installment conversions[154]. - For the nine months ended September 30, 2023, the company redeemed $6 million of the Series B Preferred Stock and $882,149 of accrued dividends, also issuing 8,086,785 shares of Common Stock through installment conversions[155]. - The company recognized a deemed dividend of $932,128 related to true-up conversion shares in excess of pre-amortization installment amounts during the three months ended September 30, 2023[154]. - As of September 30, 2023, the company has accrued a liability for installment payments owed to investors of $1,527,001[156]. Other Income and Expenses - Other income increased significantly to $1,138,911 for the nine months ended September 30, 2023, from $189,827 in the prior year, driven by higher interest income and changes in fair value of liabilities[174]. - Other income for the three months ended September 30, 2023, surged to $2,192,995 from $140,730 in the same period of 2022, reflecting increased interest income and favorable changes in liability valuations[182]. - For the three months ended September 30, 2023, research and development expenses were $212,103, a decrease of 85.7% from $1,484,694 in the prior year[179]. - General and administrative expenses for the three months ended September 30, 2023, were $1,217,689, down 27.6% from $1,682,512 in 2022[181].
Synaptogenix(SNPX) - 2023 Q3 - Quarterly Report