Financial Performance - The Company reported total operating expenses of $4.55 million for the three-month period ended March 31, 2024, compared to $2.44 million for the same period in 2023, reflecting an increase of $2.11 million[137]. - The net loss for the three-month period ended March 31, 2024, was $2.30 million, compared to a net loss of $2.44 million for the same period in 2023, a decrease of $138,636[137]. - Interest and other income increased to $1.93 million in Q1 2024 from a net loss of $0.01 million in Q1 2023, reflecting a substantial increase of $1.94 million[141]. - Net cash used in operating activities rose to $5.08 million in Q1 2024 from $1.44 million in Q1 2023, an increase of $3.64 million[147]. - Net cash provided by financing activities increased to $7.16 million in Q1 2024 from an immaterial amount in Q1 2023, driven by the sale of Series A Preferred Stock[148]. Operating Expenses - Research and development expenses were $1.67 million for the three-month period ended March 31, 2024, down from $1.80 million in the same period of 2023, a decrease of $131,789[137]. - General and administrative expenses increased to $2.88 million for the three-month period ended March 31, 2024, compared to $0.63 million in the same period of 2023, an increase of $2.25 million[138]. - The Company anticipates future increases in general and administrative expenses due to headcount growth and compliance with public company requirements[132]. - The company anticipates a significant increase in R&D expenses in the future due to increased headcount and contracted services for clinical development[140]. Revenue and Future Expectations - The Company has not recognized any revenue from product sales and does not expect to generate revenue in the foreseeable future[126]. - The company has not generated any revenue and does not expect to do so for at least the next few years, pending regulatory approval of its product candidates[142]. - The company expects to incur significant commercialization expenses if any product candidates receive approval, impacting future financial performance[143]. - The company may face increased costs due to inflation affecting labor and clinical trial expenses, which could impact future operations[163]. Financing and Capital Structure - The Company completed a private placement in February 2024, raising approximately $10.0 million from the issuance of Series A Preferred Stock and warrants[125]. - The Company has established multiple earnout share pools totaling 2,875,000 shares, contingent on achieving specific regulatory and stock price milestones[121]. - The company had $4.6 million in cash and cash equivalents as of March 31, 2024, and does not expect this to fund operations for the next 12 months[144]. - The company has arranged two equity lines of credit, one for the sale of up to 2,977,070 shares and another for the purchase of up to $25 million of Common Stock[144]. Regulatory and Reporting Status - The Company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of certain accounting standards until they apply to private companies[164]. - The Company can present only two years of audited financial statements along with required unaudited interim financial statements, resulting in reduced disclosure requirements[165]. - The Company will cease to qualify as an emerging growth company when it exceeds $1.07 billion in total annual gross revenues[166]. - The Company may also lose its status if the market value of its Common Stock held by non-affiliates exceeds $700 million as of the prior June 30th[166]. - The Company has issued more than $1.0 billion of non-convertible debt over the prior three-year period, which could affect its emerging growth company status[166]. - The Company has taken advantage of certain reduced reporting requirements in its Form 10-Q[166]. - The information contained in the Company's filings may differ from that of other public companies due to its reduced reporting burdens[166]. Merger and Share Issuance - The Merger between Predecessor and PBAX was consummated on February 14, 2024, resulting in the issuance of 7,597,638 shares of Common Stock to Predecessor stockholders[124].
Phoenix Biotech Acquisition (PBAX) - 2024 Q1 - Quarterly Report