BioVie(US:BIVI)2022-05-10 16:00Financial Position - The Company reported intangible assets of $2,293,770 as of March 31, 2022, with accumulated amortization of $1,369,953, resulting in net intangible assets of $923,817[34]. - The carrying value of notes payable as of March 31, 2022, was approximately $11.6 million, net of unearned discount of approximately $3.1 million and unamortized direct costs of approximately $333,000[48]. - As of March 31, 2022, the company had working capital of approximately $20.5 million and cash of approximately $24.5 million, with an accumulated deficit of approximately $242.9 million[105]. - The company has not generated any revenues to date and does not expect to generate revenues in the foreseeable future, making future operations dependent on successful development and financing efforts[105]. - The company closed a debt financing in November 2021, receiving a loan of $15 million, which may sustain operations over the next 12 months if expenditures are delayed[107]. Debt and Financing - The Company entered into a Loan Agreement for growth capital loans with an aggregate commitment of up to $20 million, with $15 million funded at closing and an additional $5 million contingent on achieving certain milestones[44]. - The Loan bears interest at an annual rate of at least 7.00% plus the prime rate, or 10.75%, whichever is greater, and matures on December 1, 2024[44]. - The outstanding principal balance of $15 million will be paid in 18 monthly equal installments starting July 1, 2023, with $10 million due in the fiscal year ending June 30, 2024, and $5 million in the fiscal year ending June 30, 2025[48]. Expenses and Losses - The Company recognized a net loss per common share, with diluted loss amounts excluded due to anti-dilutive effects from the net loss for the period[30]. - The net loss for the three months ended March 31, 2022, was approximately $7.0 million, an increase of $4.0 million compared to a net loss of $3.0 million for the same period in 2021[95]. - Total operating expenses for the three months ended March 31, 2022, were approximately $5.7 million, up from $3.0 million in the same period in 2021, primarily due to increased research and development activities[96]. - The net loss for the nine months ended March 31, 2022, was approximately $18.0 million, a decline from net income of $1.3 million for the same period in 2021, attributed to increased operational losses[100]. - Total operating expenses for the nine months ended March 31, 2022, were approximately $18 million, compared to $6.5 million for the same period in 2021, with a net increase of approximately $11.5 million[101]. Research and Development - Research and development expenses for the three months ended March 31, 2022, were approximately $3.6 million, compared to $790,000 for the same period in 2021, reflecting a net increase of approximately $2.8 million[97]. - Research and development expenses for the nine months ended March 31, 2022, were approximately $11.4 million, up from $2.0 million in the same period in 2021, indicating a significant increase of approximately $9.4 million[102]. Stock Options and Compensation - The company recorded stock option-based compensation expense of approximately $930,000 and $4.0 million for the three and nine months ended March 31, 2022, respectively[64]. - The number of outstanding stock options increased to 2,438,044 at March 31, 2022, with a weighted average exercise price of $8.63[62]. - The company granted stock options to purchase 1,365,835 shares at an exercise price of $7.74 per share to the executive management team on August 20, 2021[71]. - The company issued 2,500,000 shares of Class A common stock at $8.00 per share on August 11, 2021, resulting in net proceeds of approximately $17.8 million[68]. - The company began sponsoring a 401K Plan on August 1, 2021, with contributions totaling approximately $75,100 for the nine months ended March 31, 2022[85]. Lease Obligations - The company’s lease liabilities and right-of-use assets are recognized based on the present value of future minimum lease payments, with no recognition for short-term leases[29]. - As of March 31, 2022, the company had total operating lease liabilities of $127,029, with a weighted average remaining lease term of 3.1 years[79]. - The company recognized operating lease costs of approximately $76,500 for the nine months ended March 31, 2022[77]. Market and Operational Risks - The ongoing COVID-19 pandemic has led to regional quarantines, business shutdowns, and labor shortages, creating economic instability[110]. - The company expresses substantial doubt about its ability to continue as a going concern due to the uncertainties surrounding the pandemic[111]. Accounting Policies - No significant changes were reported in the company's critical accounting policies for the periods ended March 31, 2022[114]. - Recent accounting pronouncements were determined to be either not applicable or expected to have minimal impact on the company's financial statements[115]. - The company has not disclosed any quantitative and qualitative disclosures about market risk as it is not applicable to smaller reporting companies[116].