☒ | 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 | 30-0793665 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
449 South 12 th Street, Unit 1705Tampa, FL | 33602 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
Page | |||||||||
Part I. Financial Information | |||||||||
Item 1. | Condensed Financial Statements (unaudited) | ||||||||
1 | |||||||||
2 | |||||||||
3 | |||||||||
4 | |||||||||
5 | |||||||||
Item 2. | 11 | ||||||||
Item 3. | 12 | ||||||||
Item 4. | 12 | ||||||||
13 | |||||||||
Item 1 | 14 | ||||||||
Item 1A. | 14 | ||||||||
Item 2 | 14 | ||||||||
Item 3 | 14 | ||||||||
Item | 14 | ||||||||
Item | |||||||||
Item | 1 5 | ||||||||
S-1 |
(Unaudited) September 30, 2021 | December 31, 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 53,287 | $ | 75,059 | ||||
Prepaid expenses | 36,792 | 32,292 | ||||||
Total current assets | 90,079 | 107,351 | ||||||
Other long-term assets | 2,439 | 24,408 | ||||||
Total assets | $ | 92,518 | $ | 131,759 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 304,820 | $ | 269,416 | ||||
Interest payable, related party | 10,161 | 0 | ||||||
Dividends payable, related party | 50,411 | 100,822 | ||||||
Note payable, short-term (PPP Loan) | 0 | 30,044 | ||||||
Term debt facility, short-term, related party | 192,500 | 0 | ||||||
Other liabilities | 33,000 | 25,124 | ||||||
Total current liabilities | 590,892 | 425,406 | ||||||
Note payable, long-term (PPP Loan) | 0 | 11,556 | ||||||
Term debt facility, long-term, related party | 38,500 | 55,000 | ||||||
Deferred revenue, related party | 3,000,000 | 3,000,000 | ||||||
Total liabilities | 3,629,392 | 3.491,962 | ||||||
Commitments and contingencies (Note 7) | 0 | 0 | ||||||
Stockholders’ deficit: | ||||||||
Series A Preferred Stock, $0.0001 par value; 500,000 shares authorized; 0 shares issued and outstanding | 0 | 0 | ||||||
Series B Convertible, Redeemable, Preferred Stock, $0.0001 par value; 7,246,377 shares authorized; 5,797,102 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 3,960,866 | 3,960,866 | ||||||
Undesignated Preferred Stock, $0.0001 par value; 2,253,623 shares authorized; 0 shares issued or outstanding | 0 | 0 | ||||||
Common stock, $0.0001 par value; 500,000,000 shares authorized; 375,876,361 and 376,858,323 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 37,686 | 37,364 | ||||||
Additional paid-in capital | 50,051,711 | 49,814,043 | ||||||
Accumulated deficit | (57,587,137 | ) | (57,172,476 | ) | ||||
Total stockholders’ deficit | (3,536,874 | ) | (3,360,203 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 92,518 | $ | 131,759 | ||||
(Unaudited) | ||||||||
June 30, 2022 | December 31, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 24,945 | $ | 30,626 | ||||
Prepaid expenses | 13,572 | 28,158 | ||||||
Total current assets | 38,517 | 58,784 | ||||||
Total assets | $ | 38,517 | $ | 58,784 | ||||
LIABILITIES AND STOC K HOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 311,878 | $ | 279,842 | ||||
Dividends payable, related party | 200,002 | 100,823 | ||||||
Notes payable, related party | 331,000 | 231,000 | ||||||
Interest payable, related party | 27,139 | 14,965 | ||||||
Other liabilities | 65,000 | 53,000 | ||||||
Total current liabilities | 935,019 | 679,630 | ||||||
Deferred revenue, related party | 3,000,000 | 3,000,000 | ||||||
Total liabilities | 3,935,019 | 3,679,630 | ||||||
Commitments and contingencies (note 7) | 0— | 0— | ||||||
Stockholders’ deficit: | ||||||||
Series A Preferred Stock, $0.0001 par value; 500,000 shares authorized; 0 shares issued and outstanding | — | — | ||||||
Series B Convertible, Redeemable, Preferred Stock, $0.0001 par value; 7,246,377 shares authorized; 5,797,102 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 3,960,866 | 3,960,866 | ||||||
Undesignated Preferred Stock, $0.0001 par value; 2,253,623 shares authorized; 0 shares issued or outstanding | — | — | ||||||
Common stock, $0.0001 par value; 500,000,000 shares authorized; 376,858,323 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 37,686 | 37,686 | ||||||
Additional paid-in capital | 50,051,711 | 50,051,711 | ||||||
Accumulated deficit | (57,946,765 | ) | (57,671,109 | ) | ||||
Total stockholders’ deficit | (3,896,502 | ) | (3,620,846 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 38,517 | $ | 58,784 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues: | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Expenses: | ||||||||||||||||
Research and development | 0 | 32,468 | 4,830 | 182,584 | ||||||||||||
General and administrative | 66,248 | 270,306 | 291,806 | 820,676 | ||||||||||||
Total Expenses: | 66,248 | 302,774 | 296,636 | 1,003,260 | ||||||||||||
Loss from operations | (66,248 | ) | (302,774 | ) | (296,636 | ) | (1,003,260 | ) | ||||||||
Interest income | 0 | 7 | 0 | 1,182 | ||||||||||||
Interest expense, related party | (4,803 | ) | 0 | (10,035 | ) | 0 | ||||||||||
Gain on loan forgiveness | 0 | 0 | 41,600 | 0 | ||||||||||||
Net loss | (71,051 | ) | (302,767 | ) | (265,071 | ) | (1,002,078 | ) | ||||||||
Preferred stock dividend | (50,412 | ) | (50,411 | ) | (149,590 | ) | (150,137 | ) | ||||||||
Net loss applicable to common stockholders | $ | (121,463 | ) | $ | (353,178 | ) | $ | (414,661 | ) | $ | (1,152,215 | ) | ||||
Basic and diluted net loss applicable to common stockholders per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||
Weighted average common stock shares outstanding – basic and diluted | 376,708,894 | 373,150,486 | 376,042,025 | 371,354,198 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenues: | $ | — | $ | — | $ | — | $ | — | ||||||||
Expenses: | ||||||||||||||||
Research and development | 6,150 | 950 | 6,150 | 4,830 | ||||||||||||
General and administrative | 64,654 | 61,685 | 158,154 | 225,558 | ||||||||||||
Total Expenses: | 70,804 | 62,635 | 164,304 | 230,388 | ||||||||||||
Loss from operations | (70,804 | ) | (62,635 | ) | (164,304 | ) | (230,388 | ) | ||||||||
Interest expense, related party | (6,763 | ) | (3,547 | ) | (12,173 | ) | (5,232 | ) | ||||||||
Gain on loan forgiveness | — | — | — | 41,600 | ||||||||||||
Net loss | (77,567 | ) | (66,182 | ) | (176,477 | ) | (194,020 | ) | ||||||||
Preferred stock dividend | (49,863 | ) | (49,863 | ) | (99,178 | ) | (99,178 | ) | ||||||||
Net loss applicable to common stockholders | $ | (127,430 | ) | $ | (116,045 | ) | $ | (275,655 | ) | $ | (293,198 | ) | ||||
Basic and diluted net loss applicable to common stockholders per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||
Weighted average common stock shares outstanding – basic and diluted | 376,858,323 | 375,876,361 | 376,858,323 | 375,703,064 | ||||||||||||
Preferred Stock – Series B | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balances, January 1, 2021 | 5,797,102 | $ | 3,960,866 | 373,635,873 | $ | 37,364 | $ | 49,814,043 | $ | (57,172,476 | ) | $ | (3,360,203 | ) | ||||||||||||||
Common shares issued in payment of Preferred Stock dividend, related party | — | — | 2,240,488 | 224 | 100,598 | — | 100,822 | |||||||||||||||||||||
Stock based compensation | — | — | — | — | 37,990 | — | 37,990 | |||||||||||||||||||||
Preferred stock dividends, related party | — | — | — | — | — | (49,315 | ) | (49,315 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (127,838 | ) | (127,838 | ) | |||||||||||||||||||
Balances, March 31, 2021 | 5,797,102 | $ | 3,960,866 | 375,876,361 | $ | 37,588 | $ | 49,952,631 | $ | (57,349,629 | ) | $ | (3,398,544 | ) | ||||||||||||||
Preferred stock dividends, related party | — | — | — | — | — | (49,863 | ) | (49,863 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (66,182 | ) | (66,182 | ) | |||||||||||||||||||
Balances, June 30, 2021 | 5,797,102 | $ | 3,960,866 | 375,876,361 | $ | 37,588 | $ | 49,952,631 | $ | (57,465,674 | ) | $ | (3,514,589 | ) | ||||||||||||||
Common shares issued in payment of Preferred Stock dividend, related party | — | — | 981,962 | 98 | 99,080 | — | 99,178 | |||||||||||||||||||||
Preferred stock dividends, related party | — | — | — | — | — | (50,412 | ) | (50,412 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (71,051 | ) | (71,051 | ) | |||||||||||||||||||
Balances, September 30, 2021 | 5,797,102 | $ | 3,960,866 | 376,858,323 | $ | 37,686 | $ | 50,051,711 | $ | (57,587,137 | ) | $ | (3,536,874 | )) | ||||||||||||||
Preferred Stock – Series B | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balances, January 1, 2020 | 5,797,102 | $ | 3,960,866 | 370,446,185 | $ | 37,045 | $ | 49,384,953 | $ | (55,913,999 | ) | $ | (2,531,135 | ) | ||||||||||||||
Stock based compensation | — | — | — | — | 16,819 | — | 16,819 | |||||||||||||||||||||
Preferred stock dividends, related party | — | — | — | — | — | (49,863 | ) | (49,863 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (384,417 | ) | (384,417 | ) | |||||||||||||||||||
Balance March 31, 2020 | 5,797,102 | $ | 3,960,866 | 370,446,185 | $ | 37,045 | $ | 49,401,772 | $ | (56,348,279 | ) | $ | (2,948,596 | ) | ||||||||||||||
Stock based compensation | — | — | — | — | 42,753 | — | 42,753 | |||||||||||||||||||||
Preferred stock dividends, related party | — | — | — | — | — | (49,863 | ) | (49,863 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (314,894 | ) | (314,894 | ) | |||||||||||||||||||
Balances, June 30, 2020 | 5,797,102 | $ | 3,960,866 | 370,446,185 | $ | 37,045 | $ | 49,444,525 | $ | (56,713,036 | ) | $ | (3,270,600 | ) | ||||||||||||||
Common shares issued in payment of Preferred Stock dividend, related party | — | — | 3,189,688 | 319 | 200,229 | — | 200,548 | |||||||||||||||||||||
Stock based compensation | — | — | — | — | 49,953 | — | 49,953 | |||||||||||||||||||||
Preferred stock dividends, related party | — | — | — | — | — | (50,411 | ) | (50,411 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (302,767 | ) | (302,767 | ) | |||||||||||||||||||
Balances, September 30,2021 | 5,797,102 | $ | 3,960,866 | 373,635,873 | $ | 37,364 | $ | 49,694,707 | $ | (57,066,214 | ) | $ | (3,373,277 | ) | ||||||||||||||
Preferred Stock – Series B | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balances, January 1, 2022 | 5,797,102 | $ | 3,960,866 | 376,858,323 | $ | 37,686 | $ | 50,051,711 | $ | (57,671,109 | ) | $ | (3,620,846 | ) | ||||||||||||||
Preferred stock dividends, related party | — | — | — | — | — | (49,315 | ) | (49,315 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (98,910 | ) | (98,910 | ) | |||||||||||||||||||
Balances, March 31, 2022 | 5,797,102 | $ | 3,960,866 | 376,858,323 | $ | 37,868 | $ | 50,051,711 | $ | (57,819,334 | ) | $ | (3,769,071 | ) | ||||||||||||||
Preferred stock dividends, related party | — | — | — | — | — | (49,864 | ) | (49,864 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (77,567 | ) | (77,567 | ) | |||||||||||||||||||
Balance, June 30, 2022 | 5,797,102 | $ | 3,960,866 | 376,858,323 | $ | 37,868 | $ | 50,051,711 | $ | (57,946,765 | ) | $ | (3,896,502 | ) | ||||||||||||||
Preferred Stock – Series B | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balances, January 1, 2021 | 5,797,102 | $ | 3,960,866 | 373,635,873 | $ | 37,364 | $ | 49,814,043 | $ | (57,172,476 | ) | $ | (3,360,203 | ) | ||||||||||||||
Common shares issued in payment of Preferred Stock dividend, related party | — | — | 2,240,488 | 224 | 100,598 | — | 100,822 | |||||||||||||||||||||
Stock based compensation | — | — | — | — | 37,990 | — | 37,990 | |||||||||||||||||||||
Preferred stock dividends, related party | — | — | — | — | — | (49,315 | ) | (49,315 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (127,838 | ) | (127,838 | ) | |||||||||||||||||||
Balances, March 31, 2021 | 5,797,102 | $ | 3,960,866 | 375,876,361 | $ | 37,588 | $ | 49,952,631 | $ | (57,349,629 | ) | $ | (3,398,544 | ) | ||||||||||||||
Preferred stock dividends, related party | — | — | — | — | — | (49,863 | ) | (49,863 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (66,182 | ) | (66,182 | ) | |||||||||||||||||||
Balances, June 30, 2021 | 5,797,102 | $ | 3,960,866 | 375,876,361 | $ | 37,588 | $ | 49,952,631 | $ | (57,465,674 | ) | $ | (3,514,589 | ) | ||||||||||||||
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Operating activities: | ||||||||
Net loss | $ | (265,071 | ) | $ | (1,002,078 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock based compensation | 37,990 | 109,525 | ||||||
Gain on loan forgiveness | (41,600 | ) | 0 | |||||
Changes in assets and liabilities: | ||||||||
Prepaid expense and other assets | 17,469 | 29,127 | ||||||
Accounts payable and other current liabilities | 53,440 | 54,717 | ||||||
Net cash used in operating activities | (197,772 | ) | (808,709 | ) | ||||
Financing activities: | ||||||||
Proceeds from note payable (Note 4) | 0 | 41,600 | ||||||
Proceeds from term debt facility, related party | 176,000 | 0 | ||||||
Net cash provided by financing activities | 176,000 | 41,600 | ||||||
Net change in cash and cash equivalents | (21,772 | ) | (767,109 | ) | ||||
Cash and cash equivalents at beginning of period | 75,059 | 803,816 | ||||||
Cash and cash equivalents at end of period | $ | 53,287 | $ | 36,707 | ||||
Non-cash financing activities: | ||||||||
Issuance of common stock for payment of Preferred Stock dividend | $ | 200,000 | $ | 200,348 | ||||
Accrued, but unpaid dividends | $ | 50,412 | $ | 50,411 |
Six Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Operating activities: | ||||||||
Net loss | $ | (176,477 | ) | $ | (194,020 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock based compensation | — | 37,990 | ||||||
Gain on loan forgiveness | — | (41,600 | ) | |||||
Changes in assets and liabilities: | ||||||||
Prepaid expense and other assets | 14,586 | 13,896 | ||||||
Accounts payable and other current liabilities | 56,210 | 26,391 | ||||||
Net cash used in operating activities | (105,681 | ) | (157,343 | ) | ||||
Financing activities: | ||||||||
Proceeds from note payable, related party | 100,000 | 176,000 | ||||||
Net cash provided by financing activities | 100,000 | 176,000 | ||||||
Net change in cash and cash equivalents | (5,681 | ) | 18,657 | |||||
Cash and cash equivalents at beginning of period | 30,626 | 75,059 | ||||||
Cash and cash equivalents at end of period | $ | 24,945 | $ | 93,716 | ||||
Non-cash financing activities: | ||||||||
Issuance of common stock for payment of Preferred Stock dividend | $ | — | $ | 100,822 | ||||
Accrued, but unpaid dividends | $ | 99,178 | $ | 99,178 |
See notes to condensed financial statements |
1. | Corporate overview: |
2. | Liquidity and management’s plans: |
3. | Summary of Significant Accounting Policies: |
3. | Summary of Significant Accounting Policies (continued): |
4. |
5. | Mayne |
5. | Mayne Term Debt Facility (continued): |
6. | Stockholders’ Equity: |
7. | Legal Proceedings: |
7. | Legal Proceedings (continued): |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
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. |
Number | Description | |
31.1 | Certification of Chief Executive Officer Pursuant To Sarbanes-Oxley Section 302 | |
31.2 | Certification of Chief Financial Officer Pursuant To Sarbanes-Oxley Section 302 | |
32.1 | Certification Pursuant To 18 U.S.C. Section 1350 (*) | |
32.2 | Certification Pursuant To 18 U.S.C. Section 1350 (*) | |
101.ins | XBRL Instance Document | |
101.sch | XBRL Taxonomy Extension Schema Document | |
101.cal | XBRL Taxonomy Calculation Linkbase Document | |
101.def | XBRL Taxonomy Definition Linkbase Document | |
101.lab | XBRL Taxonomy Label Linkbase Document | |
101.pre | XBRL Taxonomy Presentation Linkbase Document | |
Cover Page Interactive Data File (formatted as |
* | A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. |
INHIBITOR THERAPEUTICS, INC. | ||||||
Date: | By: | /s/ Nicholas J. Virca | ||||
Nicholas J. Virca President and Chief Executive Officer (Principal Executive Officer) | ||||||
Date: | By: | /s/ Garrison J. Hasara | ||||
Garrison J. Hasara, CPA Chief Financial Officer and Treasurer (Principal Financial Officer) |