Unicycive(UNCY) - 2022 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2022, total operating expenses increased to approximately $3.5 million, a 384% increase from $731,000 in the same period in 2021[123] - The net loss for the three months ended March 31, 2022, was $3.5 million, a 267% increase from a net loss of $964,000 in the same period in 2021[123] - As of March 31, 2022, the accumulated deficit stood at $19.5 million, indicating ongoing financial challenges[129] - For the three months ended March 31, 2022, net cash used in operating activities was $2.957 million, primarily due to development costs and corporate expenditures[143] - The company incurred a net loss of $3.5 million for the three months ended March 31, 2022, after accounting for non-cash adjustments[143] - The company had no cash flows from financing activities for the three months ended March 31, 2022, compared to $820,000 in the same period of 2021[146] Operating Expenses - Research and development expenses rose to approximately $1.9 million, reflecting a 330% increase from $450,000 for the three months ended March 31, 2021, primarily due to increased drug development costs[124] - General and administrative expenses increased by 471% to approximately $1.6 million from $281,000 for the same period in 2021, driven by higher insurance and labor costs[125] Funding and Capital Needs - The company raised approximately $22.3 million in net proceeds from its IPO on July 15, 2021, intended for clinical studies and regulatory filings[128] - The company expects to require additional funding before the end of Q2 2023 to sustain operations and meet future expenditures[131] - The company anticipates needing to raise substantial additional capital, influenced by factors such as drug discovery efforts, clinical trials, and regulatory reviews[133] - The company issued convertible notes in 2021 totaling approximately $1,098,000, with a 12% annual interest rate, maturing between January and May 2022[137] - The company may need to delay or terminate development programs if it fails to raise necessary capital[135] Business Model and Development - The company’s business model focuses on licensing technologies and drugs for development and commercialization in global markets[109] - The company is developing two novel therapies: Renazorb for hyperphosphatemia in chronic kidney disease and UNI 494 for acute kidney injury[106] Impact of COVID-19 - The COVID-19 pandemic has introduced uncertainties that may delay clinical trials and increase costs, impacting the company's financial condition[115] Agreements and Accounting - The company plans to amend its Service Agreement with Globavir to reflect a reduced service fee of $6,000 per month[136] - The company accounted for the 2021 and 2020 Notes as stock-settled debt, accruing the carrying amount to the settlement amount through maturity[138][140] - The company has chosen to take advantage of the extended transition periods under the JOBS Act for complying with new accounting standards[155]