Unicycive(US:UNCY)2022-03-31 10:18Financial Performance - The company reported a net loss of $10.0 million for the year ended December 31, 2021, compared to a net loss of $2.3 million for the year ended December 31, 2020, representing a 342% increase in losses [318]. - As of December 31, 2021, the company had an accumulated deficit of $15.9 million and expects to incur substantial additional losses in the future [325]. - Net cash used in operating activities was $5.8 million for the year ended December 31, 2021, primarily due to development costs and corporate expenditures [339]. - The company incurred a net loss of $10.0 million for the year ended December 31, 2021, after accounting for non-cash adjustments [339]. - The company experienced a loss of $431,000 due to the conversion of approximately $2.4 million of principal and $191,000 of unpaid accrued interest related to convertible notes [337]. Research and Development - Research and development expenses increased by approximately $5.1 million, or 499%, from $1.0 million in 2020 to $6.1 million in 2021, primarily due to increased development costs and non-cash expenses [319]. - Research and development expenses include costs for third-party services, consulting, and personnel-related expenses, with no material changes in accounting policies from 2020 to 2021 [344][345]. Operating Expenses - General and administrative expenses rose by approximately $1.9 million, or 188%, from $1.0 million in 2020 to $2.9 million in 2021, driven by higher insurance and labor costs [320]. - The company expects its operating expenses to increase significantly as it advances its product candidates through development and seeks regulatory approval [304]. Capital and Funding - The company raised approximately $22.3 million in net proceeds from its IPO on July 15, 2021, which will be used for pre-clinical and clinical studies, regulatory filings, and general corporate purposes [324]. - The company has funded its operations primarily through the sale of common stock and convertible notes, with a total of $1.1 million raised through convertible notes in 2021 [323]. - The company anticipates needing to raise substantial additional capital, influenced by factors such as drug discovery efforts, clinical trials, and regulatory reviews [327]. - Net cash provided by financing activities was $22.4 million for the year ended December 31, 2021, mainly from proceeds of the IPO [342]. - The company issued convertible notes totaling $1.1 million in 2021, with a 12% annual interest rate, maturing between January and May 2022 [332]. Business Model and Market - The company’s business model focuses on licensing technologies and drugs, with an emphasis on developing treatments for kidney diseases, specifically hyperphosphatemia and acute kidney injury [300]. - The number of patients with end-stage renal disease in the US is projected to reach between 971,000 and 1,259,000 by 2030, indicating a growing market for the company's products [301]. Third-Party Services - The company plans to continue using third-party service providers for pre-clinical and clinical development, as well as for manufacturing and supply [307]. Accounting and Compliance - The company has chosen to take advantage of the extended transition periods under the JOBS Act for complying with new accounting standards [352]. - The company paid Globavir $10,000 per month starting January 1, 2020, for administrative and consulting services, with service fee expenses recorded as general and administrative expenses [331].