Jaguar Health(JAGX) - 2022 Q4 - Annual Report

Financial Position - As of December 31, 2022, Jaguar Health reported total assets of $47.452 million, a decrease from$ 53.265 million in 2021[535]. - The company had an accumulated deficit of $266.948 million as of December 31, 2022, compared to$ 219.494 million in 2021, indicating increasing financial losses[535]. - Total current liabilities increased significantly to $30.339 million in 2022 from$ 15.471 million in 2021, reflecting a rise in financial obligations[535]. - Cash reserves decreased to $5.469 million in 2022 from$ 17.051 million in 2021, highlighting liquidity challenges[535]. - Jaguar Health's total liabilities increased to $48.808 million in 2022 from$ 41.412 million in 2021, indicating a growing debt burden[535]. - The company expects continuing future losses, raising substantial doubt about its ability to continue as a going concern[522]. - The company had a noncontrolling interest of $(699) thousand in 2022, down from$ 242 thousand in 2021, indicating a decline in minority interests[535]. Revenue and Growth - Product revenue for the year ended December 31, 2022, was $11,956,000, a significant increase from$ 4,335,000 in 2021, representing a growth of 176%[537]. - Net revenues from the sale of Mytesi were $11.7 million for the year ended December 31, 2022, compared to$ 4.3 million for 2021, representing a 172% increase[605]. - Canalevia-CA1 product revenues were $167,000 for the year ended December 31, 2022, compared to zero for 2021, indicating a successful market entry[606]. - Neonorm revenues were$ 48,000 for the year ended December 31, 2022, down from $62,000 in 2021, reflecting a 23% decrease[606]. - Revenue from Mytesi sales in 2022 was primarily derived from three major pharmaceutical distributors, with Customer 2 contributing 35% and Customer 3 contributing 53% of total revenue[569]. Expenses and Losses - Total operating expenses increased to$ 46,371,000 in 2022 from $45,043,000 in 2021, reflecting a rise of 3%[537]. - The net loss for the year ended December 31, 2022, was$ 48,395,000, an improvement compared to a net loss of $52,600,000 in 2021, indicating a reduction of approximately 8%[541]. - The net loss per share, basic and diluted, improved to$ 36.18 in 2022 from $88.22 in 2021[537]. - Research and development expenses rose to$ 17,647,000 in 2022, up from $15,079,000 in 2021, marking an increase of 17%[537]. - Comprehensive loss for the year ended December 31, 2022, was$ 49,075,000, compared to $52,600,000 in 2021, showing a decrease of approximately 7%[541]. - The company did not incur any income tax expense for both years reported[537]. Cash Flow and Financing - Total cash used in operating activities for 2022 was$ 33,104,000, slightly better than $34,970,000 in 2021, indicating a 5% reduction in cash burn[546]. - Cash provided by financing activities in 2022 amounted to$ 23,181,000, a significant decrease from $43,937,000 in 2021, reflecting a 47% decline[546]. - The company has an immediate need to raise cash, as current cash balances are insufficient to fund operations for the next year[560]. - Cash at the end of 2022 was$ 5,469,000, down from $17,051,000 at the beginning of the year, indicating a cash decrease of 68%[546]. Assets and Liabilities - Intangible assets, net, were reported at$ 22.439 million as of December 31, 2022, slightly down from $22.651 million in 2021[535]. - The company did not recognize any impairment loss for intangible assets in the financial statements for the year ended December 31, 2022[527]. - The Company’s amortization expense for intangible assets was$ 1.8 million in 2022, with total intangible assets net of amortization at $22.439 million[678]. - Total inventory increased to$ 7.024 million in 2022 from $4.900 million in 2021, with significant increases in raw materials and work in process[675]. - Notes payable increased to$ 47.255 million in 2022 from $45.503 million in 2021, with a net note payable of$ 33.627 million after discounts[681]. Agreements and Commitments - The Company entered into a 15-year License Agreement with Knight Therapeutics for exclusive commercialization rights of Jaguar human health products in Canada and Israel, with potential payments of up to $18 million based on regulatory and sales milestones[615]. - The Company entered into a manufacturing and supply agreement with Glenmark Life Sciences for the production of crofelemer, effective until March 31, 2023[667]. - The Company has a commitment to purchase a minimum of 500 kilograms of crofelemer per year from Glenmark, with a remaining commitment of 125 kilograms as of December 31, 2022[668]. - The Company entered into a royalty interest purchase agreement, selling a$ 12.0 million royalty interest for an aggregate purchase price of $6.0 million[683]. - The Company is obligated to make minimum royalty payments starting at$ 250,000, increasing to $750,000 over time, based on the terms of the March 2021 Purchase Agreement[708]. Other Financial Metrics - The fair value of the Streeterville Note was$ 7.8 million as of December 31, 2021, and $6.0 million at issuance on January 13, 2021[642]. - The fair value of the Level 3 liability for the Streeterville Note increased by$ 21, resulting in an ending fair value of $7.839 million as of December 31, 2022[640]. - The discount rate for the royalty interest under the December 2020 Purchase Agreement was initially set at 23.70% and adjusted to 29.55% as of December 31, 2022 due to changes in forecasted future revenues[703]. - The fair value measurement for Level 3 inputs showed a risk-adjusted discount rate range of 11.53%-26.06% in 2022, compared to 6.78%-21.31% in 2021[644]. - The Company experienced a cumulative loss of$ 2.2 million due to the extinguishment of certain royalty interests[693].