Tonix Pharmaceuticals (TNXP) - 2023 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents unaudited financial statements, management's discussion, market risk, and controls, highlighting a $89.3 million net loss and going concern doubt ITEM 1. Financial Statements This item provides the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes Condensed Consolidated Balance Sheets This section presents the company's financial position as of September 30, 2023, and December 31, 2022 Balance Sheet Highlights (in thousands): | Metric | Sep 30, 2023 | Dec 31, 2022 | Change | | :-------------------------- | :----------- | :----------- | :----- | | Cash and cash equivalents | $6,914 | $120,229 | $(113,315) | | Total current assets | $31,337 | $130,777 | $(99,440) | | Total assets | $139,282 | $225,690 | $(86,408) | | Total liabilities | $18,449 | $18,508 | $(59) | | Total stockholders' equity | $120,833 | $207,182 | $(86,349) | - Inventory increased from $0 at December 31, 2022, to $13,317 thousand at September 30, 2023, due to the acquisition of Zembrace® SymTouch® and Tosymra® products[8][46] - Intangible assets, net, increased significantly from $120 thousand to $9,982 thousand, and goodwill of $965 thousand was recognized, both primarily due to the USL Acquisition[8][50][87] Condensed Consolidated Statements of Operations This section details the company's financial performance for the three and nine months ended September 30, 2023, and 2022 Product Revenue (in thousands): | Period | 2023 | 2022 | | :-------------------- | :----- | :----- | | Three Months Ended Sep 30 | $3,989 | $0 | | Nine Months Ended Sep 30 | $3,989 | $0 | Net Loss (in thousands): | Period | 2023 | 2022 | Change (YoY) | | :-------------------- | :------- | :------- | :----------- | | Three Months Ended Sep 30 | $(27,975) | $(28,981) | $(1,006) | | Nine Months Ended Sep 30 | $(89,336) | $(78,538) | $(10,798) | Net Loss Per Common Share (Basic and Diluted): | Period | 2023 | 2022 | | :-------------------- | :----- | :----- | | Three Months Ended Sep 30 | $(1.83) | $(4.24) | | Nine Months Ended Sep 30 | $(7.40) | $(18.58) | Condensed Consolidated Statements of Comprehensive Loss This section presents the company's comprehensive loss for the three and nine months ended September 30, 2023, and 2022 Comprehensive Loss (in thousands): | Period | 2023 | 2022 | | :-------------------- | :------- | :------- | | Three Months Ended Sep 30 | $(27,983) | $(28,998) | | Nine Months Ended Sep 30 | $(89,389) | $(78,606) | - Foreign currency translation loss contributed a minor amount to comprehensive loss, with $(53) thousand for the nine months ended September 30, 2023, compared to $(68) thousand in 2022[12] Condensed Consolidated Statements of Stockholders' Equity This section outlines changes in stockholders' equity for the three and nine months ended September 30, 2023, and 2022 Total Stockholders' Equity (in thousands): | Date | Amount | | :-------------------- | :------- | | December 31, 2022 | $207,182 | | September 30, 2023 | $120,833 | - The company repurchased 2,672,044 shares of common stock for $13,965 thousand during the nine months ended September 30, 2023[14] - A 1-for-6.25 reverse stock split was effective May 10, 2023, retrospectively adjusting all common stock and per share data[28][29][91] Condensed Consolidated Statements of Cash Flows This section summarizes the company's cash flows from operating, investing, and financing activities for the nine months ended September 30, 2023, and 2022 Net Cash Used in Operating Activities (in thousands): | Period | 2023 | 2022 | Change (YoY) | | :-------------------- | :------- | :------- | :----------- | | Nine Months Ended Sep 30 | $(79,663) | $(75,752) | $(3,911) | Net Cash Used in Investing Activities (in thousands): | Period | 2023 | 2022 | Change (YoY) | | :-------------------- | :------- | :------- | :----------- | | Nine Months Ended Sep 30 | $(28,639) | $(43,476) | $14,837 | Net Cash (Used in) Provided by Financing Activities (in thousands): | Period | 2023 | 2022 | Change (YoY) | | :-------------------- | :------- | :------- | :----------- | | Nine Months Ended Sep 30 | $(4,197) | $80,615 | $(84,812) | Cash, Cash Equivalents and Restricted Cash (in thousands): | Date | Amount | | :-------------------- | :------- | | Beginning of Period (Jan 1, 2023) | $120,470 | | End of Period (Sep 30, 2023) | $7,916 | Notes to Condensed Consolidated Financial Statements This section provides detailed notes to the unaudited condensed consolidated financial statements, offering further context and breakdowns - The company faces substantial doubt about its ability to continue as a going concern due to recurring losses and negative cash flows, requiring additional funding[22][23][24] - On June 30, 2023, the company acquired Zembrace® SymTouch® and Tosymra® products from Upsher-Smith Laboratories LLC for approximately $26.5 million, marking its entry into commercial product sales[20][111][203] NOTE 1 – BUSINESS This note describes Tonix Pharmaceuticals Holding Corp.'s business operations and going concern considerations - Tonix Pharmaceuticals Holding Corp. is a biopharmaceutical company focused on commercializing, developing, discovering, and licensing therapeutics[20] - Acquired Zembrace® SymTouch® and Tosymra® for acute migraine treatment as of June 30, 2023[20][111] - Recurring losses, negative cash flows, and insufficient cash resources raise substantial doubt about the company's ability to continue as a going concern, necessitating additional funding[22][23][24](index=24