☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 31-1103425 | |
(State of incorporation) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||
Common stock, $0.005 par value per share | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
Emerging growth company | ☐ |
| Page | |
PART I – FINANCIAL INFORMATION | ||
Item 1. | Financial Statements (unaudited) | |
1 | ||
2 | ||
3 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Item 1. | Financial Statements |
June 30, | December 31, | |||||||||||||||
June 30, 2022 | December 31, 2021 | 2023 | 2022 | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash | $ | 19,407 | $ | 16,985 | $ | 1,837 | $ | 11,446 | ||||||||
Other receivable | 694 | 684 | ||||||||||||||
Other receivables | 984 | 951 | ||||||||||||||
Prepaid expenses and other current assets | 1,824 | 1,097 | 1,070 | 1,284 | ||||||||||||
Total current assets | 21,925 | 18,766 | 3,891 | 13,681 | ||||||||||||
Restricted cash | 4,095 | 4,095 | ||||||||||||||
Property and equipment, net | 424 | 670 | 193 | 236 | ||||||||||||
Right-of-use assets - operating leases | 1,943 | 2,567 | 35,357 | 1,030 | ||||||||||||
Goodwill | 2,044 | 2,044 | 2,044 | 2,044 | ||||||||||||
In-process research and development | 0 | 5,990 | ||||||||||||||
Investment in non-controlling interest | 89 | 1,000 | - | 59 | ||||||||||||
Security deposits and other assets | 477 | 488 | ||||||||||||||
Other assets | 1,374 | 1,134 | ||||||||||||||
Total assets | $ | 26,902 | $ | 31,525 | $ | 46,954 | $ | 22,279 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 1,478 | $ | 1,755 | $ | 2,675 | $ | 1,620 | ||||||||
Accrued expenses | 3,821 | 1,249 | 2,109 | 3,626 | ||||||||||||
Income taxes payable | 8 | - | ||||||||||||||
Operating lease liabilities, current | 390 | 426 | 173 | 295 | ||||||||||||
Due to related party, current | 1,750 | 1,750 | ||||||||||||||
Other current liabilities | 1,429 | 247 | 450 | 363 | ||||||||||||
Total current liabilities | 7,118 | 3,677 | 7,165 | 7,654 | ||||||||||||
Warrant liabilities | 2,524 | 0 | 185 | 331 | ||||||||||||
Operating lease liabilities, non-current | 2,433 | 2,297 | 34,963 | 887 | ||||||||||||
Due to related party, non-current | 331 | 1,206 | ||||||||||||||
Deferred revenue | 250 | - | ||||||||||||||
Contingent consideration liability | 107 | - | ||||||||||||||
Other liabilities | 48 | 48 | 87 | 94 | ||||||||||||
Total liabilities | 12,123 | 6,022 | 43,088 | 10,172 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock, $0.005 par value, 1,000 shares authorized, 156 designated, issued and outstanding of Series A convertible preferred stock at June 30, 2022 and December 31, 2021, $156 liquidation preference | 1 | 1 | ||||||||||||||
Common stock, $0.005 par value, 100,000 shares authorized at June 30, 2022 and December 31, 2021; 57,469 and 52,021 issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 287 | 260 | ||||||||||||||
Preferred stock, $0.005 par value, 1,000 shares authorized, 156 designated and outstanding of Series A convertible preferred stock at June 30, 2023 and December 31, 2022, $156 liquidation preference | 1 | 1 | ||||||||||||||
Common stock, $0.005 par value, 100,000 shares authorized at June 30, 2023 and December 31, 2022; 5,410 and 5,127 issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 27 | 26 | ||||||||||||||
Additional paid-in capital | 167,974 | 165,944 | 179,067 | 177,377 | ||||||||||||
Accumulated deficit | (153,483 | ) | (140,702 | ) | (175,229 | ) | (165,297 | ) | ||||||||
Total stockholders’ equity | 14,779 | 25,503 | 3,866 | 12,107 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 26,902 | $ | 31,525 | $ | 46,954 | $ | 22,279 |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
License costs | $ | - | $ | - | $ | 50 | $ | - | ||||||||||||||||||||||||
Research and development | $ | 1,685 | $ | 5,432 | $ | 3,467 | $ | 6,965 | 1,579 | 1,685 | 3,253 | 3,467 | ||||||||||||||||||||
General and administrative | 6,205 | 4,581 | 10,719 | 6,204 | 2,510 | 6,205 | 6,102 | 10,719 | ||||||||||||||||||||||||
Acquisition of Exacis in-process research and development | 460 | - | 460 | - | ||||||||||||||||||||||||||||
Impairment of in-process research and development | 5,990 | 0 | 5,990 | 0 | - | 5,990 | - | 5,990 | ||||||||||||||||||||||||
Transaction costs | 0 | 0 | 0 | 5,765 | ||||||||||||||||||||||||||||
Total operating expenses | 13,880 | 10,013 | 20,176 | 18,934 | 4,549 | 13,880 | 9,865 | 20,176 | ||||||||||||||||||||||||
Loss from operations | (13,880 | ) | (10,013 | ) | (20,176 | ) | (18,934 | ) | (4,549 | ) | (13,880 | ) | (9,865 | ) | (20,176 | ) | ||||||||||||||||
Other income (expense), net: | ||||||||||||||||||||||||||||||||
Loss on sale of NTN assets | 0 | (50 | ) | 0 | (9,648 | ) | ||||||||||||||||||||||||||
Change in fair value of warrant liabilities | 10,792 | 0 | 9,470 | 0 | 191 | 10,792 | 146 | 9,470 | ||||||||||||||||||||||||
Change in fair value of contingent consideration | 118 | - | 118 | - | ||||||||||||||||||||||||||||
Loss on non-controlling investment | (296 | ) | 0 | (911 | ) | 0 | (8 | ) | (296 | ) | (59 | ) | (911 | ) | ||||||||||||||||||
Other expense, net | (14 | ) | (22 | ) | (1,156 | ) | (25 | ) | (256 | ) | (14 | ) | (255 | ) | (1,156 | ) | ||||||||||||||||
Total other income (expense), net | 10,482 | (72 | ) | 7,403 | (9,673 | ) | 45 | 10,482 | (50 | ) | 7,403 | |||||||||||||||||||||
Loss before income taxes | (4,504 | ) | (3,398 | ) | (9,915 | ) | (12,773 | ) | ||||||||||||||||||||||||
Provision for income taxes | (4 | ) | - | (9 | ) | - | ||||||||||||||||||||||||||
Net loss | (3,398 | ) | (10,085 | ) | (12,773 | ) | (28,607 | ) | $ | (4,508 | ) | $ | (3,398 | ) | $ | (9,924 | ) | $ | (12,773 | ) | ||||||||||||
Series A preferred stock dividend | (8 | ) | (8 | ) | (8 | ) | (8 | ) | (8 | ) | (8 | ) | (8 | ) | (8 | ) | ||||||||||||||||
Net loss attributable to common stockholders | $ | (3,406 | ) | $ | (10,093 | ) | $ | (12,781 | ) | $ | (28,615 | ) | $ | (4,516 | ) | $ | (3,406 | ) | $ | (9,932 | ) | $ | (12,781 | ) | ||||||||
Net loss per common share - basic and diluted | $ | (0.06 | ) | $ | (0.24 | ) | $ | (0.23 | ) | $ | (0.81 | ) | $ | (0.85 | ) | $ | (1.16 | ) | $ | (1.90 | ) | $ | (4.55 | ) | ||||||||
Weighted average shares outstanding - basic and diluted | 58,805 | 42,448 | 56,230 | 35,187 | 5,303 | 2,940 | 5,215 | 2,811 |
Series A Preferred Stock | Common Stock | Additional Paid- in | Accumulated | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
Balances at April 1, 2023 | 156 | $ | 1 | 5,127 | $ | 26 | $ | 178,066 | $ | (170,713 | ) | $ | 7,380 | |||||||||||||||
Issuance of common stock in connection with Exacis asset acquisition | - | - | 69 | - | 208 | - | 208 | |||||||||||||||||||||
Issuance of common stock related to stock purchase agreement with Lincoln Park Capital Fund, LLC, net | - | - | 214 | 1 | 579 | - | 580 | |||||||||||||||||||||
Cash dividends to Series A preferred stockholders | - | - | - | - | - | (8 | ) | (8 | ) | |||||||||||||||||||
Stock-based compensation | - | - | - | - | 214 | - | 214 | |||||||||||||||||||||
Net loss | - | - | - | - | - | (4,508 | ) | (4,508 | ) | |||||||||||||||||||
Balances at June 30, 2023 | 156 | $ | 1 | 5,410 | $ | 27 | $ | 179,067 | $ | (175,229 | ) | $ | 3,866 | |||||||||||||||
Balances at January 1, 2023 | 156 | $ | 1 | 5,127 | $ | 26 | $ | 177,377 | $ | (165,297 | ) | $ | 12,107 | |||||||||||||||
Issuance of common stock in connection with Exacis asset acquisition | - | - | 69 | - | 208 | - | 208 | |||||||||||||||||||||
Issuance of common stock related to stock purchase agreement with Lincoln Park Capital Fund, LLC, net | - | - | 214 | 1 | 579 | - | 580 | |||||||||||||||||||||
Cash dividends to Series A preferred stockholders | - | - | - | - | - | (8 | ) | (8 | ) | |||||||||||||||||||
Stock-based compensation | - | - | - | - | 903 | - | 903 | |||||||||||||||||||||
Net loss | - | - | - | - | - | (9,924 | ) | (9,924 | ) | |||||||||||||||||||
Balances at June 30, 2023 | 156 | $ | 1 | 5,410 | $ | 27 | $ | 179,067 | $ | (175,229 | ) | $ | 3,866 | |||||||||||||||
Balances at April 1, 2022 | 156 | $ | 1 | 2,872 | $ | 14 | $ | 167,373 | $ | (150,077 | ) | $ | 17,311 | |||||||||||||||
Issuance of common stock from vested restricted stock units | - | - | 1 | - | (5 | ) | - | (5 | ) | |||||||||||||||||||
Cash dividends to Series A preferred stockholders | - | - | - | - | - | (8 | ) | (8 | ) | |||||||||||||||||||
Stock-based compensation | - | - | - | - | 879 | - | 879 | |||||||||||||||||||||
Net loss | - | - | - | - | - | (3,398 | ) | (3,398 | ) | |||||||||||||||||||
Balances at June 30, 2022 | 156 | $ | 1 | 2,873 | $ | 14 | $ | 168,247 | $ | (153,483 | ) | $ | 14,779 | |||||||||||||||
Balances at January 1, 2022 | 156 | $ | 1 | 2,601 | $ | 13 | $ | 166,191 | $ | (140,702 | ) | $ | 25,503 | |||||||||||||||
Issuance of common stock in connection with private offering | - | - | 275 | 1 | (1 | ) | - | - | ||||||||||||||||||||
Issuance of common stock from vested restricted stock units | - | - | 1 | - | (5 | ) | - | (5 | ) | |||||||||||||||||||
Forfeiture of unvested restricted stock | - | - | (4 | ) | - | - | - | - | ||||||||||||||||||||
Cash dividends to Series A preferred stockholders | - | - | - | - | - | (8 | ) | (8 | ) | |||||||||||||||||||
Stock-based compensation | - | - | - | - | 2,062 | - | 2,062 | |||||||||||||||||||||
Net loss | - | - | - | - | - | (12,773 | ) | (12,773 | ) | |||||||||||||||||||
Balances at June 30, 2022 | 156 | $ | 1 | 2,873 | $ | 14 | $ | 168,247 | $ | (153,483 | ) | $ | 14,779 |
Common Stock | Series A Preferred Stock | Additional Paid-in | Accumulated | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
Balances at April 1, 2022 | 57,452 | $ | 287 | 156 | $ | 1 | $ | 167,100 | $ | (150,077 | ) | $ | 17,311 | |||||||||||||||
Issuance of common stock from vested restricted stock units | 17 | 0 | 0 | 0 | (5 | ) | 0 | (5 | ) | |||||||||||||||||||
Stock-based compensation | - | 0 | - | 0 | 879 | 0 | 879 | |||||||||||||||||||||
Cash dividends to Series A preferred stockholders | 0 | 0 | 0 | 0 | 0 | (8 | ) | (8 | ) | |||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (3,398 | ) | (3,398 | ) | |||||||||||||||||||
Balances at June 30, 2022 | 57,469 | $ | 287 | 156 | $ | 1 | $ | 167,974 | $ | (153,483 | ) | $ | 14,779 | |||||||||||||||
Balances at January 1, 2022 | 52,021 | $ | 260 | 156 | $ | 1 | $ | 165,944 | $ | (140,702 | ) | $ | 25,503 | |||||||||||||||
Issuance of common stock in connection with private offering | 5,500 | 27 | 0 | 0 | (27 | ) | 0 | 0 | ||||||||||||||||||||
Forfeiture of unvested restricted stock | (78 | ) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Issuance of common stock from vested restricted stock units | 26 | 0 | 0 | 0 | (5 | ) | 0 | (5 | ) | |||||||||||||||||||
Stock-based compensation | - | 0 | - | 0 | 2,062 | 0 | 2,062 | |||||||||||||||||||||
Cash dividends to Series A preferred stockholders | 0 | 0 | 0 | 0 | 0 | (8 | ) | (8 | ) | |||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (12,773 | ) | (12,773 | ) | |||||||||||||||||||
Balances at June 30, 2022 | 57,469 | $ | 287 | 156 | $ | 1 | $ | 167,974 | $ | (153,483 | ) | $ | 14,779 |
Membership Equity | Common Stock | Series A Preferred Stock | Additional Paid-in | Accumulated | ||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Class C | Common | Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||||||||||||||
Balances at April 1, 2021 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | 41,506 | $ | 208 | 156 | $ | 1 | $ | 50,453 | $ | (36,663 | ) | $ | 13,999 | |||||||||||||||||||||||
Common stock to be retained by NTN stockholders | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Issuance of common stock from the exercise of stock options | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 10 | 0 | 10 | |||||||||||||||||||||||||||||||||
Issuance of common stock related to stock purchase agreement with Lincoln Park Capital Fund, LLC, net | 0 | 0 | 0 | 0 | 3,212 | 16 | 0 | 0 | 48,509 | 0 | 48,525 | |||||||||||||||||||||||||||||||||
Issuance of common stock in lieu of cash dividend to Series A preferred stockholders | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8 | (8 | ) | 0 | ||||||||||||||||||||||||||||||||
Forfeiture of unvested restricted stock | 0 | 0 | 0 | 0 | (12 | ) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Stock-based compensation | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 1,154 | 0 | 1,154 | |||||||||||||||||||||||||||||||||
Net loss | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | (10,085 | ) | (10,085 | ) | |||||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | 44,707 | $ | 224 | 156 | $ | 1 | $ | 100,134 | $ | (46,756 | ) | $ | 53,603 | |||||||||||||||||||||||
Balances at January 1, 2021 | $ | 23,202 | $ | 1,400 | $ | 1,000 | $ | 198 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | (18,141 | ) | $ | 7,659 | |||||||||||||||||||||||
Brooklyn rights offerings membership units | 10,500 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | 10,500 | |||||||||||||||||||||||||||||||||
Elimination of Brooklyn’s historical members’ equity | (33,702 | ) | (1,400 | ) | (1,000 | ) | (198 | ) | - | 0 | - | 0 | 36,300 | 0 | 0 | |||||||||||||||||||||||||||||
Issuance of common stock for business combination | 0 | 0 | 0 | 0 | 1,514 | 8 | 0 | 0 | 8,170 | 0 | 8,178 | |||||||||||||||||||||||||||||||||
Series A preferred stock retained in business combination | 0 | 0 | 0 | 0 | 0 | 0 | 156 | 1 | (1 | ) | 0 | 0 | ||||||||||||||||||||||||||||||||
Issuance of common stock to Brooklyn members | 0 | 0 | 0 | 0 | 38,924 | 195 | 0 | 0 | (195 | ) | 0 | 0 | ||||||||||||||||||||||||||||||||
Issuance of common stock to Financial Advisor upon consummation of merger | 0 | 0 | 0 | 0 | 1,068 | 5 | 0 | 0 | 5,760 | 0 | 5,765 | |||||||||||||||||||||||||||||||||
Issuance of common stock from the exercise of stock options | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 10 | 0 | 10 | |||||||||||||||||||||||||||||||||
Issuance of common stock related to stock purchase agreement with Lincoln Park Capital Fund, LLC, net | 0 | 0 | 0 | 0 | 3,212 | 16 | 0 | 0 | 48,509 | 0 | 48,525 | |||||||||||||||||||||||||||||||||
Issuance of common stock in lieu of cash dividend to Series A preferred stockholders | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8 | (8 | ) | 0 | ||||||||||||||||||||||||||||||||
Forfeiture of unvested restricted stock | 0 | 0 | 0 | 0 | (12 | ) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Stock-based compensation | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 1,573 | 0 | 1,573 | |||||||||||||||||||||||||||||||||
Net loss | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | (28,607 | ) | (28,607 | ) | |||||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | 44,707 | $ | 224 | 156 | $ | 1 | $ | 100,134 | $ | (46,756 | ) | $ | 53,603 |
For the six months ended June 30, | For the six months ended | |||||||||||||||
2022 | 2021 | June 30, | ||||||||||||||
Cash flows used in operating activities: | ||||||||||||||||
2023 | 2022 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (12,773 | ) | $ | (28,607 | ) | $ | (9,924 | ) | $ | (12,773 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Depreciation and amortization | 104 | 63 | 42 | 104 | ||||||||||||
Stock-based compensation | 2,062 | 1,573 | 903 | 2,062 | ||||||||||||
Commitment shares issued to Lincoln Park Capital, LLC | 249 | - | ||||||||||||||
Loss on shares sold to Lincoln Park Capital, LLC | 11 | - | ||||||||||||||
Amortization of right-of-use asset | 186 | 149 | 83 | 186 | ||||||||||||
Impairment of right-of-use asset | 772 | 0 | ||||||||||||||
Impairment of right-of-use-asset | - | 772 | ||||||||||||||
Non-cash component of acquisition of Exacis in-process research and development | 433 | - | ||||||||||||||
Impairment of in-process research and development | 5,990 | 0 | - | 5,990 | ||||||||||||
Transaction costs - shares to Financial Advisor | 0 | 5,765 | ||||||||||||||
Loss on sale of NTN assets | 0 | 9,648 | ||||||||||||||
Loss on disposal of fixed assets | 274 | 0 | 1 | 274 | ||||||||||||
Gain on lease termination | (85 | ) | 0 | - | (85 | ) | ||||||||||
Gain on warrant liabilities | (9,470 | ) | 0 | |||||||||||||
Change in fair value of warrant liabilities | (146 | ) | (9,470 | ) | ||||||||||||
Change in fair value of contingent consideration liability | (118 | ) | - | |||||||||||||
Loss on non-controlling investment | 911 | 0 | 59 | 911 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Other receivable | (5 | ) | 5 | |||||||||||||
Other receivables | (33 | ) | (5 | ) | ||||||||||||
Prepaid expenses and other current assets | (727 | ) | (1,508 | ) | 214 | (727 | ) | |||||||||
Security deposits and other non-current assets | 11 | (27 | ) | |||||||||||||
Other non-current assets | (481 | ) | 11 | |||||||||||||
Accounts payable and accrued expenses | 2,295 | 1,862 | (454 | ) | 2,295 | |||||||||||
Operating lease liability | (153 | ) | (139 | ) | (215 | ) | (153 | ) | ||||||||
Due to related party | (875 | ) | - | |||||||||||||
Deferred revenue | 250 | - | ||||||||||||||
Other liabilities | 1,183 | 982 | 80 | 1,183 | ||||||||||||
Net cash used in operating activities | (9,425 | ) | (10,234 | ) | (9,921 | ) | (9,425 | ) | ||||||||
Cash flows (used in) provided by investing activities: | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (233 | ) | 0 | - | (233 | ) | ||||||||||
Proceeds from the sales of fixed assets | 100 | 0 | ||||||||||||||
Purchase of NTN, net of cash acquired | 0 | 147 | ||||||||||||||
Proceeds from the sale of NTN assets, net of cash disposed | 0 | 119 | ||||||||||||||
Net cash (used in) provided by investing activities | (133 | ) | 266 | |||||||||||||
Cash flows provided by financing activities: | ||||||||||||||||
Proceeds from the sale of fixed assets | - | 100 | ||||||||||||||
Net cash used in investing activities | - | (133 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of common stock and warrants in connection with private offering | 11,993 | 0 | - | 11,993 | ||||||||||||
Proceeds from sale of common stock pursuant to stock purchase agreement with Lincoln Park Capital Fund, LLC | 320 | - | ||||||||||||||
Payroll tax remitted on net share settlement of equity awards | (5 | ) | 0 | - | (5 | ) | ||||||||||
Dividends paid to Series A preferred stockholders | (8 | ) | 0 | (8 | ) | (8 | ) | |||||||||
Proceeds from issuance of common stock to Lincoln Park | 0 | 50,497 | ||||||||||||||
Fees incurred in connection with the common stock issued to Lincoln Park | 0 | (1,972 | ) | |||||||||||||
Proceeds from sale of members’ equity | 0 | 10,500 | ||||||||||||||
Proceeds from the exercise of stock options | 0 | 10 | ||||||||||||||
Repayment of NTN’s PPP loan | 0 | (532 | ) | |||||||||||||
Net cash provided by financing activities | 11,980 | 58,503 | 312 | 11,980 | ||||||||||||
Net increase in cash and cash equivalents | 2,422 | 48,535 | ||||||||||||||
Cash and cash equivalents at beginning of period | 16,985 | 1,630 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 19,407 | $ | 50,165 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (9,609 | ) | 2,422 | |||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 15,541 | 16,985 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 5,932 | $ | 19,407 | ||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Interest | $ | 14 | $ | 0 | $ | 13 | $ | 14 | ||||||||
Income taxes | $ | 8 | $ | 0 | $ | 4 | $ | 8 | ||||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||||||
Issuance of common stock for business combination | $ | 0 | $ | 8,177 | ||||||||||||
Series A preferred stock retained in business combination | $ | 0 | $ | 1 | ||||||||||||
Initial measurement of ROU assets and liabilities | $ | 1,706 | $ | 874 | ||||||||||||
Contingent consideration for Exacis asset acquisition | $ | 225 | $ | - | ||||||||||||
Issuance of common stock for Exacis asset acquisition | $ | 208 | $ | - | ||||||||||||
Initial measurement of right-of-use asset | $ | 34,410 | $ | 1,706 | ||||||||||||
Initial measurement of lease liability | $ | 34,169 | $ | 1,706 | ||||||||||||
Reconciliation of cash, cash equivalents and restricted cash at end of period: | ||||||||||||||||
Cash and cash equivalents | $ | 1,837 | $ | 19,407 | ||||||||||||
Restricted cash | 4,095 | - | ||||||||||||||
Total cash, cash equivalents and restricted cash at end of period | $ | 5,932 | $ | 19,407 |
1) | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION |
2) | LIQUIDITY AND CAPITAL RESOURCES |
3) |
Historical Balance Sheet of Brooklyn at March 25, 2021 | Fair Value Adjustment to Brooklyn Pre-Merger Assets | Purchase Price Allocation | ||||||||||
Cash and cash equivalents | $ | 148 | $ | 0 | $ | 148 | ||||||
Accounts receivable | 103 | 0 | 103 | |||||||||
Prepaid expense and other current assets | 329 | 0 | 329 | |||||||||
Property and equipment, net | 1,015 | 0 | 1,015 | |||||||||
Software development costs | 1,296 | (368 | ) | 928 | ||||||||
Customers | 0 | 548 | 548 | |||||||||
Trade name | 0 | 299 | 299 | |||||||||
Accounts payable, accrued liabilities and other current | ||||||||||||
liabilities | (3,781 | ) | 0 | (3,781 | ) | |||||||
Net assets acquired, excluding goodwill | $ | (890 | ) | $ | 479 | $ | (411 | ) | ||||
Total consideration | $ | 8,178 | ||||||||||
Net assets acquired, excluding goodwill | (411 | ) | ||||||||||
Goodwill | $ | 8,589 |
Proceeds from sale: | ||||
Cash | $ | 132 | ||
Escrow | 50 | |||
Assume advance/loans | 1,700 | |||
Interest on advance/loans | 68 | |||
Carrying value of assets sold: | ||||
Cash and cash equivalents | (14 | ) | ||
Accounts receivable | (75 | ) | ||
Prepaids and other current assets | (124 | ) | ||
Property and equipment, net | (1,014 | ) | ||
Software development costs | (927 | ) | ||
Customers | (548 | ) | ||
Trade name | (299 | ) | ||
Goodwill | (8,589 | ) | ||
Other assets | (103 | ) | ||
Liabilities transferred upon sale: | ||||
Accounts payable and accrued expenses | 113 | |||
Obligations under finance leases | 17 | |||
Lease liability | 26 | |||
Deferred revenue | 55 | |||
Other current liabilities | 149 | |||
Transaction costs | (265 | ) | ||
Total loss on sale of assets | $ | (9,648 | ) |
(i) | if, at any time during the three-year period commencing on the closing date and ending on the three-year anniversary of the closing date, the Company’s market capitalization equals or exceeds $100.0 million for at least ten consecutive trading days, then the Company will issue to Exacis a number of shares of common stock equal to (x) $2.0 million divided by (y) the quotient of $100.00 million divided by the number of the Company’s then issued and outstanding shares of common stock; |
(ii) | if, at any time during the three-year period commencing on the closing date and ending on the three-year anniversary of the closing date, the Company’s market capitalization equals or exceeds $200.0 million for at least ten consecutive trading days, then the Company will issue to Exacis a number of additional shares of common stock equal to (x) $2.0 million divided by (y) the quotient of $200.00 million divided by the number of the Company’s then issued and outstanding shares of common stock (collectively with (i) above, the “Market Cap Contingent Consideration”); and |
(iii) | during the five-year period commencing on the closing date and ending on the five-year anniversary of the closing date, the Company will pay or deliver to Exacis 20% of all cash or other consideration (collectively, “License Contingent Consideration”) actually received by the Company during the five-year period from (i) third-party licensees or sublicensees of the intellectual property rights acquired by the Company from Exacis pursuant to the Exacis Purchase Agreement, or (ii) subject to certain exceptions, the sale of such intellectual property rights; provided, that the License Contingent Consideration shall not in any event exceed $45.0 million. |
Fair Value of Consideration | ||||
Cash paid | $ | 22,882 | ||
Cash acquired | (28 | ) | ||
Unrestricted shares | 36,628 | |||
Restricted shares | 22,056 | |||
Total fair value of consideration paid | 81,538 | |||
Less amount of cash paid for NoveCite investment | (1,000 | ) | ||
Fair value of IPR&D acquired | $ | 80,538 |
Fair Value of Consideration | ||||
Shares issued | $ | 208 | ||
Contingent consideration | 225 | |||
Direct costs | 27 | |||
Total fair value | $ | 460 |
4) | FAIR VALUE OF FINANCIAL INSTRUMENTS |
● | Level 1 Inputs – Valued based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. |
● | Level 2 Inputs – Valued based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. |
● | Level 3 Inputs – Valued based on inputs for which there is little or no market value, which require the reporting entity to develop its own assumptions. |
As of June 30, 2022 | ||||||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Level | June 30, 2023 | December 31, 2022 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Warrant liabilities - Pre-Funded Warrants | $ | 0 | $ | 702 | $ | 0 | ||||||||||||||||||
Warrant liabilities - Common Warrants | 0 | 0 | 1,822 | 3 | $ | 185 | $ | 331 | ||||||||||||||||
Total | $ | 0 | $ | 702 | $ | 1,822 | ||||||||||||||||||
Market Cap Contingent Consideration | 3 | $ | 107 | $ | - |
Acquisition Date | June 30, 2023 | |||||||
Stock price | $ | 3.00 | $ | 2.26 | ||||
Risk-free rate | 3.58 | % | 4.46 | % | ||||
Volatility | 100 | % | 90 | % | ||||
Dividend yield | 0 | % | 0 | % | ||||
Expected term | 3.0 years | 2.82 years |
Pre-Funded Warrants (Level 2) | Common Warrants (Level 3) | Total Warrant Liabilities | ||||||||||
Fair value at January 1, 2022 | $ | 0 | $ | 0 | $ | 0 | ||||||
Fair value at March 9, 2022 (issuance date) | 2,646 | 9,943 | 12,589 | |||||||||
Change in fair value of warrant liabilities | (1,944 | ) | (8,121 | ) | (10,065 | ) | ||||||
Fair value at June 30, 2022 | $ | 702 | $ | 1,822 | $ | 2,524 |
Warrant Liabilities | Contingent Consideration | |||||||
Fair value at January 1, 2023 | $ | 331 | $ | - | ||||
Initial measurement of Market Cap Contingent Consideration | - | 225 | ||||||
Change in fair value | (146 | ) | (118 | ) | ||||
Fair value at June 30, 2023 | $ | 185 | $ | 107 |
5) | CONTRACT WITH CUSTOMER |
1. | Identify the contract with a customer; |
2. | Identify the performance obligations in the contracts; |
3. | Determine the transaction price; |
4. | Allocate the transaction price to the performance obligations; and |
5. | Recognize revenue when (or as) the performance obligations are satisfied. |
LEASES |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Operating lease expense | $ | 67 | $ | 146 | $ | 135 | $ | 333 | ||||||||
Sublease income | (21 | ) | (21 | ) | (42 | ) | (42 | ) | ||||||||
Variable lease expense | 7 | 51 | 12 | 53 | ||||||||||||
Total lease expense | $ | 53 | $ | 176 | $ | 105 | $ | 344 |
Three months ended June 30, | ||||||||
2022 | 2021 | |||||||
Operating lease expense | $ | 146 | $ | 164 | ||||
Sublease income | (21 | ) | (21 | ) | ||||
Variable lease expense | 51 | 1 | ||||||
Total lease expense | $ | 176 | $ | 144 |
Six months ended June 30, | ||||||||
2022 | 2021 | |||||||
Operating lease expense | $ | 333 | $ | 315 | ||||
Sublease income | (42 | ) | (42 | ) | ||||
Variable lease expense | 53 | 10 | ||||||
Total lease expense | $ | 344 | $ | 283 |
Operating Lease ROU Assets | ||||
Operating lease ROU assets at January 1, 2022 | $ | 2,567 | ||
Initial measurement of operating lease ROU assets | 1,706 | |||
Amortization of operating lease ROU assets | (186 | ) | ||
Impairment of ROU assets | (772 | ) | ||
Write off of ROU asset due to lease termination | (1,372 | ) | ||
Operating lease ROU assets at June 30, 2022 | $ | 1,943 |
Operating Lease ROU Assets | ||||
Operating lease ROU assets at January 1, 2023 | $ | 1,030 | ||
Recognition of ROU asset for Somerville Sublease | 34,410 | |||
Amortization of operating lease ROU assets | (83 | ) | ||
Operating lease ROU assets at June 30, 2023 | $ | 35,357 |
Operating Lease Liabilities | ||||
Operating lease liabilities at January 1, 2022 | $ | 2,723 | ||
Initial measurement of operating lease liabilities | 1,706 | |||
Principal payments on operating lease liabilities | (153 | ) | ||
Write off of operating lease liability due to lease termination | (1,453 | ) | ||
Operating lease liabilities at June 30, 2022 | 2,823 | |||
Less non-current portion | 2,433 | |||
Current portion at June 30, 2022 | $ | 390 |
Operating Lease Liabilities | ||||
Operating lease liabilities at January 1, 2023 | $ | 1,182 | ||
Recognition of lease liability for Somerville Sublease | 34,169 | |||
Principal payments on operating lease liabilties | (215 | ) | ||
Operating lease liabilities at June 30, 2023 | 35,136 | |||
Less non-current portion | 34,963 | |||
Current portion at June 30, 2023 | $ | 173 |
As of June 30, 2022 | As of June 30, 2023 | |||||||
2022 | $ | 299 | ||||||
2023 | 673 | $ | 1,064 | |||||
2024 | 688 | 5,931 | ||||||
2025 | 703 | 6,065 | ||||||
2026 | 708 | 6,227 | ||||||
2027 | 6,298 | |||||||
Thereafter | 470 | 40,224 | ||||||
Total payments | 3,541 | 65,809 | ||||||
Less imputed interest | (718 | ) | (30,673 | ) | ||||
Total operating lease liabilities | $ | 2,823 | $ | 35,136 |
ACCRUED EXPENSES |
June 30, 2022 | December 31, 2021 | |||||||
Accrued compensation | $ | 1,613 | $ | 656 | ||||
Accrued research and development expenses | 388 | 222 | ||||||
Accrued general and administrative expenses | 1,820 | 371 | ||||||
Total accrued expenses | $ | 3,821 | $ | 1,249 |
June 30, 2023 | December 31, 2022 | |||||||
Legal fees and settlements | $ | 349 | $ | 1,138 | ||||
Clinical | 310 | 570 | ||||||
Professional fees | 431 | 333 | ||||||
Accrued compensation | 324 | 1,065 | ||||||
Other | 695 | 520 | ||||||
Total accrued expenses | $ | 2,109 | $ | 3,626 |
COMMITMENTS AND CONTINGENCIES |
STOCK-BASED COMPENSATION |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Stock options granted | 723 | 3,366 | 1,981 | 3,366 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Stock options granted | 25 | 36 | 237 | 99 |
Three months ended June 30, | ||||||||
2022 | 2021 | |||||||
Weighted average risk-free rate | 2.74% | 1.06% | ||||||
Weighted average volatility | 92.74% | 134.30% | ||||||
Dividend yield | 0% | 0% | ||||||
Expected term | 4.15 years | 6.08 years |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Weighted average risk-free rate | 3.54 | % | 2.74 | % | 3.82 | % | 2.42 | % | ||||||||
Weighted average volatility | 96.09 | % | 92.74 | % | 95.15 | % | 92.85 | % | ||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Expected term | 6.08 years | 4.15 years | 5.44 years | 4.79 years |
Six months ended June 30, | ||||||||
2022 | 2021 | |||||||
Weighted average risk-free rate | 2.42% | 1.06% | ||||||
Weighted average volatility | 92.85% | 134.30% | ||||||
Dividend yield | 0% | 0% | ||||||
Expected term | 4.79 years | 6.08 years |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Weighted average grant date fair value | $ | 1.64 | $ | 9.97 | $ | 2.99 | $ | 23.68 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
RSUs Granted | 0 | 105 | 1,101 | 105 |
Three months ended | Six months ended | |||||||
June 30, 2022 | June 30, 2022 | |||||||
RSUs vested | 26 | 35 | ||||||
Common stock withheld to cover taxes | (9 | ) | (9 | ) | ||||
Common stock issued | 17 | 26 |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Research and development | $ | 470 | $ | 168 | $ | 892 | $ | 570 | $ | 56 | $ | 470 | $ | 120 | $ | 892 | ||||||||||||||||
General and administrative | 409 | 986 | 1,170 | 1,003 | 158 | 409 | 783 | 1,170 | ||||||||||||||||||||||||
Total | $ | 879 | $ | 1,154 | $ | 2,062 | $ | 1,573 | $ | 214 | $ | 879 | $ | 903 | $ | 2,062 |
Private Placement | Warrants Outstanding (in thousands) | Exercise Price | Date Exerciseable | Expiration Date | Classification | ||||||||
March 2022 PIPE | 343 | $ | 38.20 | September 9, 2022 | September 9, 2027 | Liability | |||||||
November 2022 PIPE | 4,370 | $ | 3.28 | June 2, 2023 | June 2, 2028 | Equity | |||||||
4,713 |
EARNINGS PER SHARE |
Three and Six months ended June 30, | ||||||||
2022 | 2021 | |||||||
Stock options | 3,750 | 3,366 | ||||||
RSUs | 587 | 105 | ||||||
Warrants | 6,857 | 0 | ||||||
Preferred stock converted into common stock | 50 | 42 | ||||||
Total potential common shares excluded from computation | 11,244 | 3,513 |
Three and Six months ended June 30, | ||||||||
2023 | 2022 | |||||||
Warrants | 4,713 | 343 | ||||||
Stock options | 522 | 188 | ||||||
Preferred stock converted into common stock | 7 | 3 | ||||||
RSUs | 1 | 29 | ||||||
Total potential common shares excluded from computation | 5,243 | 563 |
14) | STANDBY EQUITY PURCHASE AGREEMENT |
RECENT ACCOUNTING PRONOUNCEMENTS |
SUBSEQUENT |
Three months ended June 30, | Change | Six months ended June 30, | Change | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||
License costs | $ | - | $ | - | $ | - | $ | 50 | $ | - | $ | 50 | ||||||||||||||||||||||||||||||||||||
Research and development | $ | 1,685 | $ | 5,432 | $ | (3,747 | ) | $ | 3,467 | $ | 6,965 | $ | (3,498 | ) | 1,579 | 1,685 | (106 | ) | 3,253 | 3,467 | (214 | ) | ||||||||||||||||||||||||||
General and administrative | 6,205 | 4,581 | 1,624 | 10,719 | 6,204 | 4,515 | 2,510 | 6,205 | (3,695 | ) | 6,102 | 10,719 | (4,617 | ) | ||||||||||||||||||||||||||||||||||
Impairment of in-process research and | 5,990 | - | 5,990 | 5,990 | - | 5,990 | ||||||||||||||||||||||||||||||||||||||||||
Transaction costs | - | - | - | - | 5,765 | (5,765 | ) | |||||||||||||||||||||||||||||||||||||||||
Acquisition of Exacis in-process research and development | 460 | - | 460 | 460 | - | 460 | ||||||||||||||||||||||||||||||||||||||||||
Impairment of in-process research and development | - | 5,990 | (5,990 | ) | - | 5,990 | (5,990 | ) | ||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 13,880 | 10,013 | 3,867 | 20,176 | 18,934 | 1,242 | 4,549 | 13,880 | (9,331 | ) | 9,865 | 20,176 | (10,311 | ) | ||||||||||||||||||||||||||||||||||
Loss from operations | (13,880 | ) | (10,013 | ) | (3,867 | ) | (20,176 | ) | (18,934 | ) | (1,242 | ) | (4,549 | ) | (13,880 | ) | 9,331 | (9,865 | ) | (20,176 | ) | 10,311 | ||||||||||||||||||||||||||
Other income (expense), net: | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss on sale of NTN assets | - | (50 | ) | 50 | - | (9,648 | ) | 9,648 | ||||||||||||||||||||||||||||||||||||||||
Change in fair value of warrant liabilities | 10,792 | - | 10,792 | 9,470 | - | 9,470 | 191 | 10,792 | (10,601 | ) | 146 | 9,470 | (9,324 | ) | ||||||||||||||||||||||||||||||||||
Change in fair value of contingent consideration | 118 | - | 118 | 118 | - | 118 | ||||||||||||||||||||||||||||||||||||||||||
Loss on non-controlling investment | (296 | ) | - | (296 | ) | (911 | ) | - | (911 | ) | (8 | ) | (296 | ) | 288 | (59 | ) | (911 | ) | 852 | ||||||||||||||||||||||||||||
Other expense, net | (14 | ) | (22 | ) | 8 | (1,156 | ) | (25 | ) | (1,131 | ) | (256 | ) | (14 | ) | (242 | ) | (255 | ) | (1,156 | ) | 901 | ||||||||||||||||||||||||||
Total other income (expense), net | 10,482 | (72 | ) | 10,554 | 7,403 | (9,673 | ) | 17,076 | 45 | 10,482 | (10,437 | ) | (50 | ) | 7,403 | (7,453 | ) | |||||||||||||||||||||||||||||||
Loss before income taxes | (4,504 | ) | (3,398 | ) | (1,106 | ) | (9,915 | ) | (12,773 | ) | 2,858 | |||||||||||||||||||||||||||||||||||||
Provision for income taxes | (4 | ) | - | (4 | ) | (9 | ) | - | (9 | ) | ||||||||||||||||||||||||||||||||||||||
Net loss | $ | (3,398 | ) | $ | (10,085 | ) | $ | 6,687 | $ | (12,773 | ) | $ | (28,607 | ) | $ | 15,834 | $ | (4,508 | ) | $ | (3,398 | ) | $ | (1,110 | ) | $ | (9,924 | ) | $ | (12,773 | ) | $ | 2,849 |
Three months ended June 30, | Three months ended June 30, | |||||||||||||||||||||||
2022 | 2021 | Change | 2023 | 2022 | Change | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
License fees | $ | - | $ | 4,000 | $ | (4,000 | ) | |||||||||||||||||
Payroll-related | $ | 167 | $ | 639 | $ | (472 | ) | |||||||||||||||||
Stock-based compensation | 470 | 168 | 302 | 56 | 470 | (414 | ) | |||||||||||||||||
Payroll-related | 639 | 593 | 46 | |||||||||||||||||||||
Clinical trials | 402 | 526 | (124 | ) | ||||||||||||||||||||
Professional fees | 79 | 39 | 40 | 249 | 79 | 170 | ||||||||||||||||||
MSA expense | 813 | - | 813 | |||||||||||||||||||||
Other expenses, net | 95 | 106 | (11 | ) | 294 | 497 | (203 | ) | ||||||||||||||||
Total research and development expenses | $ | 1,685 | $ | 5,432 | $ | (3,747 | ) | $ | 1,579 | $ | 1,685 | $ | (106 | ) | ||||||||||
Six months ended June 30, | ||||||||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Payroll-related | $ | 369 | $ | 1,601 | $ | (1,232 | ) | |||||||||||||||||
Stock-based compensation | 120 | 892 | (772 | ) | ||||||||||||||||||||
Professional fees | 529 | 120 | 409 | |||||||||||||||||||||
MSA expense | 1,625 | - | 1,625 | |||||||||||||||||||||
Other expenses, net | 610 | 854 | (244 | ) | ||||||||||||||||||||
Total research and development expenses | $ | 3,253 | $ | 3,467 | $ | (214 | ) |
Six months ended June 30, | ||||||||||||
2022 | 2021 | Change | ||||||||||
(in thousands) | ||||||||||||
License fees | $ | - | $ | 4,000 | $ | (4,000 | ) | |||||
Payroll-related | 1,601 | 1,054 | 547 | |||||||||
Stock-based compensation | 891 | 571 | 320 | |||||||||
Clinical trials | 632 | 961 | (329 | ) | ||||||||
Professional fees | 120 | 126 | (6 | ) | ||||||||
Other expenses, net | 223 | 253 | (30 | ) | ||||||||
Total research and development expenses | $ | 3,467 | $ | 6,965 | $ | (3,498 | ) |
Three months ended June 30, | Three months ended June 30, | |||||||||||||||||||||||
2022 | 2021 | Change | 2023 | 2022 | Change | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Professional fees | $ | 1,312 | $ | 2,552 | $ | (1,240 | ) | |||||||||||||||||
Payroll-related | $ | 1,533 | $ | 142 | $ | 1,391 | 700 | 1,533 | (833 | ) | ||||||||||||||
Impairment of ROU asset | 772 | - | 772 | - | 772 | (772 | ) | |||||||||||||||||
Professional fees | 2,083 | 2,721 | (638 | ) | ||||||||||||||||||||
Insurance | 194 | 527 | (333 | ) | ||||||||||||||||||||
Stock-based compensation | 409 | 986 | (577 | ) | 158 | 409 | (251 | ) | ||||||||||||||||
Insurance | 527 | 367 | 160 | |||||||||||||||||||||
Occupancy expense | 182 | 150 | 32 | 19 | 182 | (163 | ) | |||||||||||||||||
Other expenses, net | 699 | 215 | 484 | 127 | 230 | (103 | ) | |||||||||||||||||
Total general and administrative expenses | $ | 6,205 | $ | 4,581 | $ | 1,624 | $ | 2,510 | $ | 6,205 | $ | (3,695 | ) | |||||||||||
Six months ended June 30, | ||||||||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Professional fees | $ | 3,248 | $ | 4,623 | $ | (1,375 | ) | |||||||||||||||||
Payroll-related | 1,057 | 2,282 | (1,225 | ) | ||||||||||||||||||||
Impairment of ROU asset | - | 772 | (772 | ) | ||||||||||||||||||||
Stock-based compensation | 783 | 1,170 | (387 | ) | ||||||||||||||||||||
Occupancy expense | 43 | 352 | (309 | ) | ||||||||||||||||||||
Insurance | 726 | 894 | (168 | ) | ||||||||||||||||||||
Other expenses, net | 245 | 626 | (381 | ) | ||||||||||||||||||||
Total general and administrative expenses | $ | 6,102 | $ | 10,719 | $ | (4,617 | ) |
Six months ended June 30, | ||||||||||||
2022 | 2021 | Change | ||||||||||
(in thousands) | ||||||||||||
Payroll-related | $ | 2,282 | $ | 175 | $ | 2,107 | ||||||
Impairment of ROU asset | 772 | - | 772 | |||||||||
Professional fees | 3,404 | 4,040 | (636 | ) | ||||||||
Insurance | 894 | 400 | 494 | |||||||||
Stock-based compensation | 1,170 | 1,003 | 167 | |||||||||
Occupancy expense | 382 | 301 | 81 | |||||||||
Loss on disposal of fixed assets | 274 | - | 274 | |||||||||
Other expenses, net | 1,541 | 285 | 1,256 | |||||||||
Total general and administrative expenses | $ | 10,719 | $ | 6,204 | $ | 4,515 |
Three months ended June 30, | ||||||||||||
2022 | 2021 | Change | ||||||||||
(in thousands) | ||||||||||||
PIPE transaction fees | $ | (15 | ) | $ | - | $ | (15 | ) | ||||
Interest expense, net | (13 | ) | (22 | ) | 9 | |||||||
Other (expense) income , net | 14 | - | 14 | |||||||||
Total other expense, net | $ | (14 | ) | $ | (22 | ) | $ | 8 |
Three months ended June 30, | ||||||||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
SEPA commitment shares | $ | (249 | ) | $ | - | $ | (249 | ) | ||||||||||||||||
Interest income (expense), net | 24 | (13 | ) | 37 | ||||||||||||||||||||
Other | (31 | ) | (1 | ) | (30 | ) | ||||||||||||||||||
Total other expense, net | $ | (256 | ) | $ | (14 | ) | $ | (242 | ) | |||||||||||||||
Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
2022 | 2021 | Change | 2023 | 2022 | Change | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
PIPE transaction fees | $ | (1,007 | ) | $ | - | $ | (1,007 | ) | $ | - | $ | (1,007 | ) | $ | 1,007 | |||||||||
Liquidated damages | (240 | ) | - | (240 | ) | - | (240 | ) | 240 | |||||||||||||||
Interest expense, net | (14 | ) | (36 | ) | 22 | 26 | (14 | ) | 40 | |||||||||||||||
Other (expense) income , net | 105 | 11 | 94 | |||||||||||||||||||||
SEPA commitment shares | (249 | ) | - | (249 | ) | |||||||||||||||||||
Other income, net | (32 | ) | 105 | (137 | ) | |||||||||||||||||||
Total other expense, net | $ | (1,156 | ) | $ | (25 | ) | $ | (1,131 | ) | $ | (255 | ) | $ | (1,156 | ) | $ | 901 |
For the six months ended June 30, | ||||||||||||
(in thousands) | 2023 | 2022 | Change | |||||||||
Cash (used in) provided by: | ||||||||||||
Operating activities | $ | (9,921 | ) | $ | (9,425 | ) | $ | (496 | ) | |||
Investing activities | - | (133 | ) | 133 | ||||||||
Financing activities | 312 | 11,980 | (11,668 | ) | ||||||||
Net (decrease) increase in cash and cash equivalents | $ | (9,609 | ) | $ | 2,422 | $ | (12,031 | ) |
For the six months ended June 30, | ||||||||||||
(in thousands) | 2022 | 2021 | Change | |||||||||
Cash provided by (used in): | ||||||||||||
Operating activities | $ | (9,425 | ) | $ | (10,234 | ) | $ | 809 | ||||
Investing activities | (133 | ) | 266 | (399 | ) | |||||||
Financing activities | 11,980 | 58,503 | (46,523 | ) | ||||||||
Net increase in cash and cash equivalents | $ | 2,422 | $ | 48,535 | $ | (46,113 | ) |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 3. | Defaults Upon Senior Securities. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Other Information. |
Item 6. | Exhibits. |
Exhibit | Description | Incorporated By Reference | ||
10.1 | Exhibit 10.1 to Form 8-K filed on April 11, 2023 | |||
Registration Rights Agreement, dated as of April 5, 2023, by and between Eterna Therapeutics Inc. and Lincoln Park Capital Fund, LLC | Exhibit 10.2 to Form 8-K filed on April 11, 2023 | |||
Asset Purchase Agreement, dated April 26, 2023, by and among Eterna Therapeutics Inc., Exacis Biotherapeutics Inc., the stockholders party thereto and, with respect to certain provisions, Factor Bioscience Limited. | Exhibit 10.1 to Form 8-K filed on May | |||
Separation Agreement and General Release, dated May | Exhibit | |||
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith |
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||
Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Furnished herewith | |||
Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Furnished herewith | |||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | Filed herewith | ||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed herewith | ||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith | ||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
* | Indicates management contract or compensatory plan. |
Date: August 11, | By: | /s/ |
Chief | ||
(on behalf of the Registrant and as Principal |