| Delaware | | | 3841 | | | 45-3213164 | |
| (State or other jurisdiction of incorporation or organization) | | | (Primary Standard Industrial Classification Code Number) | | | (I.R.S. Employer Identification Number) | |
| Valerie Ford Jacob, Esq. Michael A. Levitt, Esq. Freshfields Bruckhaus Deringer US LLP 601 Lexington Avenue New York, New York 10022 (212) 277-4000 | | | Jason DiBona Ryan Patch c/o 10455 Riverside Drive Palm Beach Gardens, FL 33410 Telephone: (833) 652-5326 | |
| Large accelerated filer | | | ☐ | | | Accelerated filer | | | ☐ | |
| Non-accelerated filer | | | ☒ | | | Smaller reporting company | | | ☒ | |
| | | | | | | Emerging growth company | | | ☒ | |
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| | | Three Months Ended March 31, | | | Year Ended December 31, | | ||||||||||||||||||
| | | 2022 | | | 2021 | | | 2021 | | | 2020 | | ||||||||||||
Operating Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | | | $ | 2,673,707 | | | | | $ | 1,969,692 | | | | | $ | 8,521,360 | | | | | $ | 3,323,081 | | |
Net loss | | | | | (2,577,964) | | | | | | (1,969,692) | | | | | | (7,923,607) | | | | | | (3,323,081) | | |
| | | As of March 31, | | | As of December 31, | | ||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Cash | | | | $ | 17,774,097 | | | | | $ | 19,629,649 | | | | | $ | 2,333,117 | | |
Total assets | | | | | 21,459,419 | | | | | | 23,722,748 | | | | | | 3,193,175 | | |
Total liabilities | | | | | 1,656,130 | | | | | | 2,012,333 | | | | | | 665,308 | | |
Total members’/stockholders’ equity | | | | | 19,803,289 | | | | | | 21,710,415 | | | | | | 2,527,867 | | |
| By Mail: | | | By Courier: | |
| Computershare Inc. | | | Computershare Inc. | |
| 150 Royall Street, Suite V | | | 150 Royall Street, Suite V | |
| Canton, Massachusetts 02021 | | | Canton, Massachusetts 02021 | |
| Attention: Molekule Rights Offer | | | Attention: Molekule Rights Offer | |
| Preferred stock conversion price | | | | $ | | | |
| Net tangible book value per common share as of June 30, 2023 | | | | $ | (0.75) | | |
| Increase in net tangible book value per common share attributable to this rights offering | | | | $ | | | |
| Pro forma net tangible book value per common share as of June 30, 2023 after giving effect to this rights offering | | | | $ | | | |
| Dilution in net tangible book value per common share to purchasers in this rights offering | | | | $ | | |
| | | A | | | B | | | C | | | D | | | E | | | F | | | G | | | H | | ||||||||||||||||||||||||||||||
Holder | | | Common Stock as of Record Date | | | Basic Subscription Rights(1) | | | Over- Subscription Request | | | Units Allocated (1st round)(2) | | | Units Allocated in Excess of Request(3) | | | Units to be Issued (1st Round)(4) | | | Units to be Issued (2nd round)(5) | | | Total Units Issued | | ||||||||||||||||||||||||||||||
| Rights | | | Units | | ||||||||||||||||||||||||||||||||||||||||||||||||||
1 | | | | | 5,000 | | | | | | 5,000 | | | | | | 5,000 | | | | | | 3,000 | | | | | | 588 | | | | | | — | | | | | | 588 | | | | | | 12 | | | | | | 600 | | |
2 | | | | | 2,500 | | | | | | 2,500 | | | | | | 2,500 | | | | | | 2,000 | | | | | | 294 | | | | | | — | | | | | | 294 | | | | | | 6 | | | | | | 300 | | |
3 | | | | | 1,000 | | | | | | 1,000 | | | | | | 1,000 | | | | | | 100 | | | | | | 118 | | | | | | 18 | | | | | | 100 | | | | | | — | | | | | | 100 | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 982 | | | | | | 18 | | | | | | 1,000 | | |
Holder | | | Common Stock as of Record Date | | | Common Stock Included in 1st Round Denominator | | | Common Stock Included in 2nd Round Denominator | | |||||||||
1 | | | | | 5,000 | | | | | | 5,000 | | | | | | 5,000 | | |
2 | | | | | 2,500 | | | | | | 2,500 | | | | | | 2,500 | | |
3 | | | | | 1,000 | | | | | | 1,000 | | | | | | — | | |
Other holders not exercising their over-subscription privilege | | | | | 1,500 | | | | | | — | | | | | | — | | |
Total | | | | | 10,000 | | | | | | 8,500 | | | | | | 7,500 | | |
| By Mail: Computershare Inc. 150 Royall Street, Suite V Canton, Massachusetts 02021 Attention: Molekule Rights Offer | | | By Courier: Computershare Inc. 150 Royall Street, Suite V Canton, Massachusetts 02021 Attention: Molekule Rights Offer | |
Name of Beneficial Owner | | | Shares Beneficially Owned | | | Percentage of Shares Beneficially Owned | | ||||||
5% Stockholders | | | | | | | | | | | | | |
Lewis Pell(1) | | | | | 1,569,060 | | | | | | 10.2% | | |
Dateline TV Holdings, Inc.(2) | | | | | 1,198,062 | | | | | | 7.8% | | |
Armistice Capital Master Fund Ltd.(3) | | | | | 1,500,000 | | | | | | 9.7% | | |
Northeastern University(4) | | | | | 1,500,000 | | | | | | 9.7% | | |
Named Executive Officers and Directors | | | | | | | | | | | | | |
Amin J. Khoury(5) | | | | | 4,119,793 | | | | | | 26.7% | | |
David Helfet, M.D.(6) | | | | | 759,590 | | | | | | 4.9% | | |
Mark Krosney | | | | | 256,728 | | | | | | 1.7% | | |
Michael Senft(7) | | | | | 37,862 | | | | | | * | | |
Thomas P. McCaffrey(8) | | | | | 186,509 | | | | | | 1.2% | | |
Heather Floyd(9) | | | | | — | | | | | | — | | |
Timothy Scannell(10) | | | | | — | | | | | | — | | |
Jason DiBona(11) | | | | | — | | | | | | — | | |
Ryan Tyler(12) | | | | | — | | | | | | — | | |
All Executive Officers and Directors as a Group (9 persons) | | | | | 5,360,482 | | | | | | 34.8% | | |
| By Mail: Computershare Inc. 150 Royall Street, Suite V Canton, Massachusetts 02021 Attention: Molekule Rights Offering | | | By Courier: Computershare Inc. 150 Royall Street, Suite V Canton, Massachusetts 02021 Attention: Molekule Rights Offering | |
| | | Amount to be paid | | |||
SEC registration fee | | | | $ | 3,526 | | |
Accounting fees and expenses | | | | $ | 10,000 | | |
Legal fees and expenses | | | | | 75,000 | | |
FINRA filing fee | | | | | 6,247 | | |
Total | | | | $ | 94,773 | | |
Expense | | | Amount | | |||
SEC Registration Fee | | | | $ | 2,370 | | |
Accounting Fees and Expenses | | | | ||||
Legal Fees and Expenses | | | | ||||
Miscellaneous Fees and expenses | | | | ||||
Total | | | | $ | | |
| | | | MOLEKULE GROUP, INC. | |
| | | | /s/ Jason DiBona Jason DiBona Chief Executive Officer (Principal Executive Officer) | |
| /s/ Jason DiBona Jason DiBona | | | Chief Executive Officer (Principal Executive Officer) | | |||
| /s/ Ryan Tyler Ryan Tyler | | | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | | |||
| /s/ Amin J. Khoury, Ph.D. (Hon) Amin J. Khoury, | | | Chairman of the Board | | |||
| /s/ David Helfet, M.D. David Helfet, M.D. | | | Director | | |||
| /s/ Michael Senft Michael Senft | | | Director | | |||
| /s/ Thomas P. McCaffrey Thomas P. McCaffrey | | | Director | |
| /s/ Heather Floyd Heather Floyd | | | Director | | |||
| /s/ Timothy J. Scannell Timothy J. Scannell | | | Director | | |||
| /s/ Stephen M. Ward, Jr. Stephen M. Ward, Jr. | | | Director | | |||
| /s/ Brad Feld Brad Feld | | | Director | |