Financial Performance - Reviva Pharmaceuticals has an accumulated deficit of 59.3millionasofMarch31,2021,andreportedanetlossofapproximately949,000 for the three months ended March 31, 2021[88]. - The net loss for the three months ended March 31, 2021, was approximately 949,000,comparedtoanetlossof749,000 for the same period in 2020[101]. - Net cash used in operating activities for Q1 2021 was approximately 3.1million,significantlyhigherthan61,000 in Q1 2020, primarily due to increased net operating assets[112]. - The gain on remeasurement of warrant liabilities for Q1 2021 was approximately 923,000,resultingfromadecreaseincalculatedfairvalueduetoadeclineinstockprice[105].−AsofMarch31,2021,thecompanyhadcashofapproximately5.6 million and expects to incur significant expenses and operating losses in the foreseeable future[106]. Research and Development - The company expects to incur significant expenses and increased operating losses for the next several years as it continues to develop its product candidates[88]. - Reviva Pharmaceuticals has two drug candidates in its pipeline: RP5063 (Brilaroxazine) and RP1208, both of which have been granted composition of matter patents in the U.S., Europe, and other countries[79]. - RP5063 is in Phase 2 clinical development for acute schizophrenia and has completed Phase 1 studies for multiple indications, including bipolar disorder and major depressive disorder[93]. - The company anticipates that its research and development expenses will increase significantly as it advances its development programs and prepares for potential commercialization[92]. - Research and development expenses increased by approximately 120,000,or44271,000 in Q1 2020 to 391,000inQ12021,primarilyduetohighersalaryexpendituresandincreasedconsultingcosts[102].OperationalChallenges−RevivaPharmaceuticalshastakenprecautionarymeasuresinresponsetoCOVID−19,whichmaydisruptclinicaltrialsandoperations[82].−Thecompanydoesnotcurrentlyhaveanycommittedexternalsourcesofcapitalandmayneedtofinancecashneedsthroughequityordebtfinancings[107].FuturePlans−ThecompanyisfocusingoncompletingtheclinicaldevelopmentofRP5063forvariousneuropsychiatricandrespiratoryindications,subjecttoadditionalfinancing[81].−TheestimatedinitialcostsforconductingthePhase3clinicalstudyforRP5063areapproximately21.0 million, with 7.0millionpayablein2021,10.0 million in 2022, and 4.0millionin2023[96].−Thecompanyplanstoestablishasales,marketing,anddistributioninfrastructuretocommercializeanydrugsthatreceivemarketingapproval[89].−Thecompanyexpectsgeneralandadministrativeexpensestoincreaseasitexpandsinfrastructureandcontinuesclinicalprogramdevelopment[98].AdministrativeExpenses−Generalandadministrativeexpensesrosebyapproximately1.1 million, or 327%, from 347,000inQ12020to1.5 million in Q1 2021, driven by increased use of consultants and higher insurance costs[103]. - The company incurred no interest expense in Q1 2021, a decrease from approximately $130,000 in Q1 2020, due to the conversion of all investor notes prior to the Business Combination[104].
