Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 20, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | MYMETICS CORPORATION | |
Entity Central Index Key | 0000927761 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 303,757,622 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-25132 | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 25-1741849 | |
Entity Address Address Line 1 | c/o Mymetics SA | |
Entity Address Address Line 2 | Route de la Corniche 4 | |
Entity Address City Or Town | Epalinges | |
Entity Address Country | CH | |
Entity Address Postal Zip Code | 1066 | |
City Area Code | 011 | |
Local Phone Number | 41 21 566 57 72 | |
Security 12b Title | Common Stock, Par Value $0.01 per share | |
Trading Symbol | MYMX | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - EUR (€) € in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash | € 62 | € 313 |
Accounts receivable | 13 | 62 |
Prepaid expenses | 24 | 106 |
Total current assets | 99 | 481 |
Rent deposit | 0 | 10 |
Property and equipment, net of accumulated depreciation of ?498 at September 30, 2023 and ?475 at December 31, 2022 | 1 | 26 |
Right-of-Use Asset | 0 | 133 |
Goodwill | 0 | 6,671 |
Total assets | 100 | 7,321 |
Current Liabilities | ||
Accounts payable | 559 | 213 |
Deferred revenue | 0 | 7 |
Operating Lease Liability | 0 | 106 |
Non-convertible notes payable and related accrued interest to related parties | 11,755 | 10,461 |
Convertible notes payable and related accrued interest to related parties | 63,211 | 61,243 |
Total current liabilities | 75,525 | 72,030 |
Long Term Liabilities | ||
Debt-Principal Payable to the Federal Financing Bank | 145 | 156 |
Operating lease liability | 0 | 31 |
Total long-term liabilities | 145 | 187 |
Total liabilities | 75,670 | 72,217 |
Commitments and Contingencies (Note 3) | 0 | 0 |
Shareholders' Deficit | ||
Common stock, U.S. $0.01 par value; 1,200,000,000 shares authorized; issued and outstanding 303,757,622 at September 30, 2023 and at December 31, 2022 | 2,530 | 2,530 |
Preferred stock, U.S. $0.01 par value; 5,000,000 shares authorized; none-issued or outstanding | 0 | 0 |
Additional paid-in capital | 34,443 | 34,443 |
Accumulated deficit | (113,215) | (102,555) |
Accumulated other comprehensive income | 672 | 686 |
Total shareholders' deficit | (75,570) | (64,896) |
Total liabilities and shareholders' deficit | € 100 | € 7,321 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - EUR (€) € in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Property and equipment, accumulated depreciation | € 498 | € 475 |
Shareholders' Deficit | ||
Common stock, par value | € 0.01 | € 0.01 |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 |
Common stock, shares issued | 303,757,622 | 303,757,622 |
Common stock, shares outstanding | 303,757,622 | 303,757,622 |
Preferred stock, par value | € 0.01 | € 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - EUR (€) € in Thousands, shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | ||||
Research and Development | € 0 | € 0 | € 3 | € 0 |
Grants | 34 | 130 | 411 | 909 |
Revenues | 34 | 130 | 414 | 909 |
Expenses | ||||
Research and development | 60 | 209 | 854 | 1,191 |
General and administrative | 355 | 320 | 1,515 | 979 |
Total expenses | 415 | 529 | 2,369 | 2,170 |
Operating Loss | (381) | (399) | (1,955) | (1,261) |
Interest expense | 710 | 703 | 2,118 | 2,096 |
Goodwill impairment | 0 | 0 | 6,671 | 0 |
Other (income) expense | 23 | 243 | 84 | 541 |
Loss before income tax provision | (1,114) | (1,345) | (10,660) | (3,898) |
Income tax provision | 0 | 0 | 0 | 0 |
Net Loss | (1,114) | (1,345) | (10,660) | (3,898) |
Other comprehensive income | ||||
Foreign currency translation adjustment | (5) | (7) | (14) | (2) |
Comprehensive loss | € (1,119) | € (1,352) | € (10,674) | € (3,900) |
Basic and dilutive earnings per share | € 0 | € 0 | € (0.04) | € (0.01) |
Weighted-average shares outstanding, basic and diluted | 303,757,622 | 303,757,622 | 303,757,622 | 303,757,622 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (UNAUDITED) - EUR (€) € in Thousands | Total | Common Stock | APIC | Accumulated Deficit | Accumulated Other Comprehensive Income |
Balance, shares at Dec. 31, 2021 | 303,757,622 | ||||
Balance, amount at Dec. 31, 2021 | € (60,086) | € 2,530 | € 34,443 | € (97,750) | € 691 |
Net loss | (1,211) | 0 | 0 | (1,211) | 0 |
Translation adjustment | 7 | € 0 | 0 | 0 | 7 |
Balance, shares at Mar. 31, 2022 | 303,757,622 | ||||
Balance, amount at Mar. 31, 2022 | (61,290) | € 2,530 | 34,443 | (98,961) | 698 |
Balance, shares at Dec. 31, 2021 | 303,757,622 | ||||
Balance, amount at Dec. 31, 2021 | (60,086) | € 2,530 | 34,443 | (97,750) | 691 |
Net loss | (3,898) | ||||
Balance, shares at Sep. 30, 2022 | 303,757,622 | ||||
Balance, amount at Sep. 30, 2022 | (63,986) | € 2,530 | 34,443 | (101,648) | 689 |
Balance, shares at Mar. 31, 2022 | 303,757,622 | ||||
Balance, amount at Mar. 31, 2022 | (61,290) | € 2,530 | 34,443 | (98,961) | 698 |
Net loss | (1,342) | 0 | 0 | (1,342) | 0 |
Translation adjustment | (2) | € 0 | 0 | 0 | (2) |
Balance, shares at Jun. 30, 2022 | 303,757,622 | ||||
Balance, amount at Jun. 30, 2022 | (62,634) | € 2,530 | 34,443 | (100,303) | 696 |
Net loss | (1,345) | 0 | 0 | (1,345) | 0 |
Translation adjustment | (7) | € 0 | 0 | 0 | (7) |
Balance, shares at Sep. 30, 2022 | 303,757,622 | ||||
Balance, amount at Sep. 30, 2022 | (63,986) | € 2,530 | 34,443 | (101,648) | 689 |
Balance, shares at Dec. 31, 2022 | 303,757,622 | ||||
Balance, amount at Dec. 31, 2022 | (64,896) | € 2,530 | 34,443 | (102,555) | 686 |
Net loss | (1,861) | 0 | 0 | (1,861) | 0 |
Translation adjustment | 0 | € 0 | 0 | 0 | 0 |
Balance, shares at Mar. 31, 2023 | 303,757,622 | ||||
Balance, amount at Mar. 31, 2023 | (66,757) | € 2,530 | 34,443 | (104,416) | 698 |
Balance, shares at Dec. 31, 2022 | 303,757,622 | ||||
Balance, amount at Dec. 31, 2022 | (64,896) | € 2,530 | 34,443 | (102,555) | 686 |
Net loss | (10,660) | ||||
Balance, shares at Sep. 30, 2023 | 303,757,622 | ||||
Balance, amount at Sep. 30, 2023 | (75,570) | € 2,530 | 34,443 | (113,215) | 672 |
Balance, shares at Mar. 31, 2023 | 303,757,622 | ||||
Balance, amount at Mar. 31, 2023 | (66,757) | € 2,530 | 34,443 | (104,416) | 698 |
Net loss | (7,685) | 0 | 0 | (7,685) | 0 |
Translation adjustment | (9) | € 0 | 0 | 0 | (9) |
Balance, shares at Jun. 30, 2023 | 303,757,622 | ||||
Balance, amount at Jun. 30, 2023 | (74,451) | € 2,530 | 34,443 | (112,101) | 677 |
Net loss | (1,114) | 0 | 0 | (1,114) | 0 |
Translation adjustment | (5) | € 0 | 0 | 0 | (5) |
Balance, shares at Sep. 30, 2023 | 303,757,622 | ||||
Balance, amount at Sep. 30, 2023 | € (75,570) | € 2,530 | € 34,443 | € (113,215) | € 672 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - EUR (€) € in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flow from Operating Activities | ||
Net loss | € (10,660) | € (3,898) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 9 | 11 |
Goodwill impairment | 6,671 | 0 |
Gain on sales of equipment | (75) | 0 |
Changes in operating assets and liabilities | ||
Receivables | 49 | (43) |
Accrued interest on convertible notes payable | 1,968 | 2,436 |
Accrued interest on non-convertible notes payable | 194 | 161 |
Accounts payable | 346 | 1 |
Other | 81 | (34) |
Net cash used in operating activities | (1,417) | (1,366) |
Cash Flows from Investing Activities | ||
Proceeds from sale of equipment | 94 | 0 |
Purchase of property and equipment | 0 | (2) |
Net cash used in investing activities | 94 | (2) |
Cash Flows from Financing Activities | ||
Repayments of federal bank loan | (14) | 0 |
Proceeds from issuance of non-convertible notes | 1,100 | 1,200 |
Net cash provided by financing activities | 1,086 | 1,200 |
Effect on foreign exchange rate on cash | (14) | (2) |
Net change in cash | (251) | (170) |
Cash, beginning of period | 313 | 571 |
Cash, end of period | 62 | 401 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for taxes | € 0 | € 0 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
The Company and Summary of Significant Accounting Policies | |
The Company and Summary of Significant Accounting Policies | Note 1. The Company and Summary of Significant Accounting Policies BASIS OF PRESENTATION AND GOING CONCERN The amounts in the notes are shown in thousands of EURO, unless otherwise noted, and rounded to the nearest thousand except for share and per share amounts. The accompanying interim period condensed consolidated financial statements of Mymetics Corporation (the "Company") set forth herein have been prepared by the Company pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such SEC rules and regulations. The interim period condensed consolidated financial statements should be read together with the audited financial statements and the accompanying notes included in the Company's latest annual report on Form 10-K for the fiscal year ended December 31, 2022. The Company was created for the purpose of engaging in vaccine research and development. Its main research efforts in the beginning have been concentrated in the prevention and treatment of the AIDS virus and malaria. The Company has established a network which enables it to work with education centers, research centers, pharmaceutical laboratories and biotechnology companies. Besides the HIV and malaria vaccine candidates, the Company additionally has generated preclinical data for the following vaccines: Herpes Simplex and Respiratory Syncytial Virus (“RSV”), neither of which is currently being developed. The company also has clinical data for an intranasal influenza vaccine for the elderly which has finished a Phase I clinical trial and is currently on hold. As of September 30, 2023, the Company has generated preclinical data for an intra nasal Covid-19 vaccine and early-stage preclinical data in immunotherapy in the field of oncology, but both programs have been stopped The Company has been collaborating with leading academic institutions, such as Baylor College of Medicine in Texas, the Amsterdam Medical Center (AMC) of the University of Amsterdam in the Netherlands and the University Hospital in Bern, Switzerland until April 2023. On January 16, 2023, the Board appointed Marcel B. Rüegg to the Board to fill the vacancy created by Mr. Stern’s resignation. Mr. Rüegg was also appointed to the Audit Committee. The Company entered into an independent director agreement with Mr. Rüegg (the “Director Agreement”) setting forth the terms of his compensation. Pursuant to the Director Agreement, Mr. Rüegg is entitled to a fee of CHF 5,000 per quarter, which is payable quarterly, and CHF 350 per hour for each additional hour worked outside of meetings of the Board or attending more than one meeting of the Board per quarter, which is payable quarterly. The Company also agreed to reimburse Mr. Rüegg for pre-approved reasonable business expenses incurred in good faith in connection with the performance of his duties for the Company. The Company also agreed to indemnify, defend and hold harmless Mr. Rüegg, to the fullest extent permitted by law, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, subject to certain exceptions based on good faith and reasonableness. On February 8, 2023, the Company announced that it has been conducting a process to explore strategic alternatives to enhance shareholder value. The Board authorized management and its external advisors to initiate such a process, and it has been considering a broad range of strategic alternatives including a potential sale of part or all of the Company. In connection therewith, the Company, through its external advisors, had requested bids (the “Bid Process”) for any combination of assets (including but not limited to as a going concern), by February 24, 2023, at 5:00 pm ET (the “Bid Deadline”). To the extent the Company determined there were viable bids by or prior to the Bid Deadline, the Company pursued those possible alternatives. To the extent the there were no viable bids provided by or prior to the Bid Deadline, the Company would consider other alternatives, including the winding up of its operations shortly after the Bid Deadline. On February 24, 2023, the Company announced that it was still discussing with counterparties potential bids for any combination of its assets (including but not limited to as a going concern) and had decided to extend the bid process (the “Bid Process”) for an indeterminate period of time. The extension of the Bid Process did not assure the sale of part or all of the Company or other change or outcome. The Company retained McDermott, Will & Emery LLP as legal counsel in connection with the Bid Process. While the Company pursued these strategic alternatives, due to lack of liquidity, cost reductions for 2023 had been put in place, including the termination of employment agreements for all employees, except Ronald Kempers. On July 26, 2023, the Company decided to winddown its wholly owned subsidiary Bestewil Holding BV (“BH”) and Mymetics BV running the laboratory, which is the wholly owned subsidiary of BH. The Company has been working with the appropriate accountants to ensure this winddown process follows the applicable tax and accounting regulations. The execution of the winddown is expected to take several months to complete and is subject to various risks and uncertainties that could impact on the Company's ability to successfully complete the winddown or the costs associated with the winddown. To the extent that none of the remaining strategic alternatives are viable, we are exploring a possible winddown of the Company. The Board of Directors of the Company continues to evaluate the next steps, in connection with a possible winddown of the Company’s operations. As of the date of this filing, there is no certainty or conclusion on the future of the Company. During the fiscal year 2023, the Company has been notified twice by the OTC Markets Group, once on May 12, 2023 and the second time on September 14, 2023, that its bid price had closed below $0.01 for more than 30 consecutive calendar days and no longer met the Standards for Continued Eligibility for OTCQB as per the OTCQB Standards, Section 2.3(2), which states that the Company must “maintain proprietary priced quotations published by a Market Maker in OTC Link with a minimum closing bid price of $.01 per share on at least one of the prior thirty consecutive calendar days.” As per Section 4.1 of the OTCQB Standards, the Company will be granted a cure period of 90 calendar days during which the closing bid price for the Company’s Common Stock must be $.01 or greater for ten consecutive trading days in order to continue trading on the OTCQB marketplace. If this requirement is not met by December 13, 2023, the Company will be removed from the OTCQB marketplace. On October 16, 2023, the Company was informed by the OTC Markets that the Company’s bid price for the stock closed below $.001 on October 13, 2023, and that in the event that the Company’s closing bid price per share falls below $0.001 at any time for five consecutive trading days, the Company will be removed from OTCQB as per Section 4.1(b) of the OTCQB Standards. On October 23, 2023, the Company was informed that it has been moved from the OTCQB to the OTC Pink on October 24, 2023, as its closing bid price per share has fallen below $0.001 for more than 5 consecutive trading days. The Company filed an 8-K on October 11, 2023, a Form Pre-14C and Schedule 13E-3, on October 16 and October 17, 2023, respectively, followed by a Form Def-14C and Schedule 13E-3/A on October 27, 2023 in which it announced that following (i) the approval on October 5, 2023 of resolutions by the Company’s Board of Directors (the “Board”) proposing an amendment to the Company’s Certificate of Incorporation (the “ Certificate of Incorporation”) to effect a reverse stock split of the Company’s Common Stock (the “Reverse Stock Split”) and (ii) the receipt of written consents dated October 9, 2023 (the “ Written Consents”), approving such amendment by stockholders holding 51.55% of the voting power of all of the Company’s stockholders entitled to vote (the “Consenting Stockholders”) on the matter as of October 9, 2023 (the “ Record Date”). The resolutions adopted by the Board and the written consents of the stockholders give has provided the Company the authority to file a Certificate of Amendment to the Certificate of Incorporation (the “Certificate of Amendment”). The Certificate of Amendment shall be filed with the Secretary of State of the State of Delaware on or after November 20, 2023 (20 calendar days following the date this Information Statement is first mailed to the Company’s stockholders) and will become effective immediately thereafter (the “Effective Date”). As a result of the Reverse Stock Split, as described in the Form Def-14C, Mymetics stockholders owning fewer than 2,000 shares of Mymetics Common Stock will receive cash in the amount of $0.0023 per share of existing Common Stock, and Mymetics stockholders who own 2,000 or more shares of existing Common Stock on the Effective Date will receive (i) one share of new Common Stock for every 2,000 shares of existing Common Stock held on the Effective Date and (ii) cash in lieu of any fractional share of new Common Stock that such holder would otherwise be entitled to receive on the basis of $0.0023 per share of existing Common Stock. Although the Reverse Stock Split has been approved by the requisite number of stockholders, the Company’s Board reserves the right, in its discretion, to abandon the Reverse Stock Split prior to the proposed Effective Date if it determines that abandoning the Reverse Stock Split is in the best interests of the Company. The Reverse Stock Split is being undertaken as part of the Company’s plan to suspend its obligations to file periodic and current reports and other information with the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As described further in the Information Statement Form Def-14C, the Company’s Board has determined that the costs of being a public reporting company outweigh the benefits thereof. The actions described herein, including effecting the Reverse Stock Split, terminating the registration of our Common Stock under Section 12(g) of the Exchange Act and suspending of our reporting obligations under Section 15(d) of the Exchange Act, are collectively referred to herein as the “Transaction.” After giving effect to the Transaction, the Company will no longer be subject to the reporting requirements under the Exchange Act or other requirements applicable to a public company, including requirements under the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and the listing standards of any national securities exchange. Additionally, the Reverse Stock Split is subject to Financial Industry Regulatory Authority (“FINRA”) approval, of which there are no assurances when and if FINRA will provide such approval. As previously announced, the Board continues to evaluate the next steps in the Company’s business, in connection with a possible winddown of the Company’s operations. These consolidated financial statements have been prepared assuming the Company will continue as a going concern, however the significantly reduced human resource and lack of financial resources has triggered the Company to record a complete Goodwill write-off for the period ending September 30, 2023. The Company has experienced negative cash flows from operations and significant losses since inception resulting in an accumulated deficit of €113,215 at September 30, 2023. Further, the Company’s current liabilities exceed its current assets by €75,426 as of September 30, 2023, and there is no assurance that cash will become available to pay current liabilities in the near term. Management is seeking strategic alternatives but there can be no assurance that management will be successful in any of those efforts. These conditions raise substantial doubt about our ability to continue as a going concern within three months of the issuance of the financial statements. Besides the Goodwill impairment, the financial statements do not include any adjustments that might result from the outcome of this uncertainty. LEASES Effective January 1, 2019, the Company adopted ASC 842, which established a right-of-use ("ROU") model requiring lessees to record a right-of-use ("ROU") asset and lease obligations on the balance sheet for all leases with terms longer than 12 months. The Company determines if an arrangement is a lease at inception. Where an arrangement is a lease, the Company determines if it is an operating lease or a finance lease. At lease commencement, the Company records a lease liability and corresponding right-of-use ("ROU") asset. Lease liabilities represent the present value of our future lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the Company’s lease liability is determined using its incremental collateralized borrowing rate at lease inception. ROU assets represent its right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability for leases with an initial term greater than 12 months. Over the lease term (operating leases only), the Company uses the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to consolidated statement of operations in a manner that results in straight line expense recognition. The Company does not apply lease recognition requirements for short-term leases. Instead, the Company recognizes payments related to these arrangements in the consolidated statement of operations as lease costs on a straight-line basis over the lease term. PRINCIPLES OF CONSOLIDATION The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated. NEW ACCOUNTING PRONOUNCEMENT In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Specifically, ASU 2020-06 simplifies accounting for the issuance of convertible instruments by removing major separation models required under current GAAP. In addition, the ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share (EPS) calculation in certain areas. ASU 2020-06 will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, beginning in fiscal years which begin after December 15, 2020. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluating the impact of the pending adoption of this new standard on its consolidated financial statements. FOREIGN CURRENCY TRANSLATION The Company translates non-Euro assets and liabilities of its subsidiaries at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Unrealized gains or losses from these translations are reported as a separate component of comprehensive income. Transaction gains or losses are included in foreign exchange (gain) loss in the consolidated statements of comprehensive loss. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations. The Company's reporting currency is the Euro because substantially all of the Company's activities are conducted in Europe. CASH The Company considers all highly liquid investments purchased with maturities of six months or less to be cash equivalents. Cash deposits are occasionally in excess of insured amounts. REVENUE RECOGNITION Effective January 1, 2018, the Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, using the modified retrospective method and there was no impact to financial position and results of operations as a result of the adoption. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Overall, adoption of the new standard did not result in an adjustment to amounts previously reported in our consolidated financial statements and there were no other significant changes impacting the timing or measurement of our revenue or our business processes and controls. The Company has concluded that government grants are not within the scope of Topic 606, as they do not meet the definition of a contract with a “customer”. The Company concluded the definition of a contract with a “customer” was not met as the counterparty to the government grants has not contracted to obtain goods or services and thus the contracts are not considered to have commercial substance. Government grants provide the Company with payments for certain types of expenditures related to research and development activities over a contractually defined period. Revenue from government grants is recognized in the period during which the related costs are incurred, provided that the applicable conditions under the government contracts have been met. NIH On April 29, 2019, the National Institutes of Health (“NIH”) awarded the Company and Texas Biomedical Research Institute (“Texas Biomed”) a five-year grant for the project called “Cold Chain-independent, Needle-free Mucosal Virosomal Vaccine to Prevent HIV-1 Acquisition at Mucosal Levels” (“NIH Grant”). The project started on May 1, 2019, and has been planned for five years. It was initially co-led by Texas Biomed, but due to the move of Dr. Ruth Ruprecht, the Co-Principal Investigator, to the University of Louisiana at Lafayette (“ULL”) at the end of 2019, ULL has become the co-lead with Mymetics for this project. The overall budget related to the project is US$8,850 with US$8,761 approved for the period of (May 2019 to April 2024). This includes the funds approved for the period of May 2023 to April 2024 of US$1’630. The amounts mentioned in the following statements are purely related to the Company and not to the other partners in the project: The overall portion of the grant allocated to the Company is US$4,052 approved for the period of May 2019 to April 2024. This includes the funds approved for the period of May 2023 to April 2024 of US$97. In March 2023, an amendment to the contract was signed to reduce the allocated funds from ULL to the Company from US$1,328 to US$ 815, as more funds were allocated to the animal studies at ULL. The cost granted under the sub-award with Texas Biomed for the period of (May to December 2019) was US$743, of which, US$599 (€542) was incurred as revenue. The sub-award contracts between ULL and the Company for the period of (January 2020 to April 2021) were signed for a total budget of US$1,319, of which, US$1,048 (€909) was incurred as revenue. The sub-award contract between ULL and the Company for the period of (May 2021 to April 2022) was signed for a total budget of US$1,078, of which, US$986 (€899) was incurred as revenue. The sub-award contract, including the amendment, between ULL and the Company for the period of (May 2022 to April 2023) was signed for a total budget of US$815, of which, US$674 (€638) was incurred as revenue as of end of April 2023. The sub-award contract between ULL and the Company for the period of (May 2023 to April 2024) was signed for a total budget of US$97, of which, US$55 (€47) was incurred as revenue. Since the beginning of the project to date, the Company has incurred a total cost of US$3,362 (€3,035) which was recognized as grant revenue from the NIH. For the three and nine months ended on September 30, 2023, the Company has incurred a total cost of US$36 (€30) and US$440 (€406), respectively, which was recognized as grant revenue from the NIH. The First results are expected to be reported in 2023. The project had the objective to prepare the Company’s HIV-1 vaccine candidate for clinical trials, by first executing a non-human primate (“NHP”) study, where the test subjects will be receiving Mymetics’ virosome based HIV-1 vaccine candidate by several intra-muscular and intra-nasal applications, followed by rectal challenges. As of September 30, 2023, the Company has successfully produced six sets of virosome based vaccines and the NHPs have received two intramuscular vaccinations and three intranasal vaccinations in two different studies. The vaccinations were well tolerated. The final studies are ongoing. The vaccine candidate is created to induce protective mucosal antibodies acting as a frontline defense against sexual HIV transmission. This grant from the NIH has allowed the Company to continue some of the developments that were achieved during the European Horizon 2020 project. In February 2022, Mymetics announced the publication of results in Frontiers in Immunology title: “Cooperation between Systemic and Mucosal Antibodies Induced by Virosomal Vaccines Targeting HIV1 Env: Protection of Indian Rhesus Macaques against Mucosal SHIV challenges”. The Project with ULL under the NIH grant for our HIV vaccine is in its final year that will end on April 30, 2024. Mymetics has provided its commitments to this project by delivering the vaccines, which are tested in non-human primates. RECEIVABLES Receivables are stated at their outstanding principal balances. Management reviews the collectability of receivables on a periodic basis and determines the appropriate amount of any allowance. There was no allowance necessary at September 30, 2023 or December 31, 2022. The Company writes off receivables to the allowance when management determines that a receivable is not collectible. The Company may retain a security interest in the products sold. PROPERTY AND EQUIPMENT Property and equipment is recorded at cost and is depreciated over its estimated useful life on straight-line basis from the date placed in service. Estimated useful lives are usually taken as three years. IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets, which include property and equipment, are assessed for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. The impairment testing involves comparing the carrying amount to the forecasted undiscounted future cash flows generated by that asset. In the event the carrying value of the assets exceeds the undiscounted future cash flows generated by that asset and the carrying value is not considered recoverable, impairment exists. An impairment loss is measured as the excess of the asset’s carrying value over its fair value, calculated using a discounted future cash flow method. An impairment loss would be recognized in net income (loss) in the period that the impairment occurs. GOODWILL Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of a business acquired. The Company typically performs its annual goodwill impairment test effective as of April 1 of each year, unless events or circumstances indicate impairment may have occurred before that time. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than it’s carrying amount. With the significantly reduced human resources and lack of funds the Company has recorded a complete Goodwill write-off for the nine months period ending September 30, 2023. RESEARCH AND DEVELOPMENT Research and development costs are expensed as incurred. TAXES ON INCOME The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax laws or rates. The Company reports a liability, if any, for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of interest expense and other expense, respectively. The Company has not recorded any liabilities for uncertain tax positions or any related interest and penalties at December 31, 2022 or 2021. The Company’s United States tax returns are open to audit for the years ended December 31, 2018 to 2021. The returns for the Swiss subsidiary, Mymetics S.A., are open to audit for the year ended December 31, 2021. The returns for the Netherlands subsidiaries, Bestewil B.V. and Mymetics B.V., are open to audit for the year ended December 31, 2021. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. For the periods ended September 30, 2023 and 2022, options and convertible debt were not included in the computation of diluted earnings per share because their effect would be anti-dilutive due to net losses incurred under the treasury stock method. For the three and nine months ended September 30, 2023, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 830,150,223 at September 30, 2023 includes 804,400,223 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees. For the three and nine months ended September 30, 2022, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 793,630,391 at September 30, 2022 includes 767,880,391 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees. PREFERRED STOCK The Company has authorized 5,000,000 shares of preferred stock that may be issued in several series with varying dividend, conversion and voting rights. No preferred shares are issued or outstanding at September 30, 2023 or December 31, 2022. ESTIMATES The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FAIR VALUE MEASUREMENTS Fair value guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1- Quoted prices in active markets for identical assets or liabilities. Level 2- Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3- Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. FAIR VALUES OF FINANCIAL INSTRUMENTS The Company generally has the following financial instruments: cash, receivables, accounts payable, and notes payable. The carrying value of cash, accounts receivable, and accounts payable, approximates their fair value based on the short-term nature of these financial instruments. Management believes the fair value of the note’s payable reflects the actual value reported for these instruments. CONCENTRATIONS The Company derived 99% and 100% of grant revenue for the nine-month periods ended September 30, 2023 and 2022, respectively, from one grantor, respectively. For the period ended December 31, 2022, the Company derived 100% of grant revenue from one partner. RELATED PARTY TRANSACTIONS Mr. Ernest M. Stern, the Company’s, is a partner in Culhane Meadows PLLC and was outside counsel to the company and a director of the Company until his resignation on December 20, 2022. Culhane Meadows PLLC was the Company’s legal counsel until December 31, 2022. Fees incurred with the law firm was NIL in the nine months ended September 30, 2023, and totaling €10 and €6 for the three months ended September 30, 2022. On January 16, 2023, the Board appointed Marcel B. Rüegg to the Board to fill the vacancy created by Mr. Stern’s resignation. Mr. Rüegg was also appointed to the Audit Committee. The Company entered into an independent director agreement with Mr. Rüegg (the “Director Agreement”) setting forth the terms of his compensation. Pursuant to the Director Agreement, Mr. Rüegg is entitled to a fee of CHF 5,000 per quarter, which is payable quarterly, and CHF 350 per hour for each additional hour worked outside of meetings of the Board or attending more than one meeting of the Board per quarter, which is payable quarterly. The Company also agreed to reimburse Mr. Rüegg for pre-approved reasonable business expenses incurred in good faith in connection with the performance of his duties for the Company. The Company also agreed to indemnify, defend and hold harmless Mr. Rüegg, to the fullest extent permitted by law, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, subject to certain exceptions based on good faith and reasonableness. No fee was paid to Marcel B. Rüegg during the nine months ended September 30, 2023. Two of the Company’s major shareholders have granted secured convertible notes and short-term convertible notes and promissory notes, which have a total carrying amount of €74,483 including interest due as of September 30, 2023. Conversion p |
Debt Financing
Debt Financing | 9 Months Ended |
Sep. 30, 2023 | |
Debt Financing | |
Debt Financing | Note 2. Debt Financing Certain principal shareholders have granted the Company secured convertible notes (in accordance with the Uniform Commercial Code in the State of Delaware), short term convertible notes and other short-term notes, which have a total carrying value of €74,966 including interest due to date. Interest incurred on these notes since inception has been added to the principal amounts. The details of the convertible notes and loans are as follows at September 30, 2023: Conversion Fixed Rate Lender Price 1st-Issue Date Principal Amount Duration (Note) Interest Rate Price (stated) EUR/USD Conversion Eardley Holding A.G. (1) 06/23/2006 € 180 (2 ) 10% pa $ 0.10 N/A Anglo Irish Bank S.A.(3) 10/21/2007 € 500 (2 ) 10% pa $ 0.50 1.4090 Round Enterprises Ltd. 12/10/2007 € 1,500 (2 ) 10% pa $ 0.50 1.4429 Round Enterprises Ltd. 01/22/2008 € 1,500 (2 ) 10% pa $ 0.50 1.4629 Round Enterprises Ltd. 04/25/2008 € 2,000 (2 ) 10% pa $ 0.50 1.5889 Round Enterprises Ltd. 06/30/2008 € 1,500 (2 ) 10% pa $ 0.50 1.5380 Round Enterprises Ltd. 11/18/2008 € 1,200 (2 ) 10% pa $ 0.50 1.2650 Round Enterprises Ltd. 02/09/2009 € 1,500 (2 ) 10% pa $ 0.50 1.2940 Round Enterprises Ltd. 06/15/2009 € 5,500 (2,4 ) 10% pa $ 0.80 1.4045 Eardley Holding A.G. 06/15/2009 € 100 (2,4 ) 10% pa $ 0.80 1.4300 Von Meyenburg 08/03/2009 € 200 (2 ) 10% pa $ 0.80 1.4400 Round Enterprises Ltd. 10/13/2009 € 2,000 (2 ) 5% pa $ 0.25 1.4854 Round Enterprises Ltd. 12/18/2009 € 2,200 (2 ) 5% pa $ 0.25 1.4338 Round Enterprises Ltd. 08/04/2011 € 1,135 (5,6 ) 10% pa $ 0.034 N/A Eardley Holding A.G. 08/04/2011 € 284 (5,6 ) 10% pa $ 0.034 N/A Round Enterprises Ltd. 11/08/2011 € 400 (6 ) 10% pa $ 0.034 1.3787 Eardley Holding A.G. 11/08/2011 € 100 (6 ) 10% pa $ 0.034 1.3787 Round Enterprises Ltd. 02/10/2012 € 1,000 (6 ) 10% pa $ 0.034 1.3260 Eardley Holding A.G. 02/14/2012 € 200 (6 ) 10% pa $ 0.034 1.3260 Round Enterprises Ltd. 04/19/2012 € 322 (6 ) 10% pa $ 0.034 1.3100 Eardley Holding A.G. 04/19/2012 € 80 (6 ) 10% pa $ 0.034 1.3100 Round Enterprises Ltd. 05/04/2012 € 480 (6 ) 10% pa $ 0.034 1.3152 Eardley Holding A.G. 05/04/2012 € 120 (6 ) 10% pa $ 0.034 1.3152 Round Enterprises Ltd. 09/03/2012 € 200 (6 ) 10% pa $ 0.034 1.2576 Eardley Holding A.G. 09/03/2012 € 50 (6 ) 10% pa $ 0.034 1.2576 Round Enterprises Ltd. 11/14/2012 € 500 (6 ) 10% pa $ 0.034 1.2718 Eardley Holding A.G. 12/06/2012 € 125 (6 ) 10% pa $ 0.034 1.3070 Round Enterprises Ltd. 01/16/2013 € 240 (6 ) 10% pa $ 0.034 1.3318 Eardley Holding A.G. 01/16/2013 € 60 (6 ) 10% pa $ 0.034 1.3318 Round Enterprises Ltd. 03/25/2013 € 400 (6 ) 10% pa $ 0.037 1.2915 Eardley Holding A.G. 04/14/2013 € 150 (6 ) 10% pa $ 0.034 1.3056 Round Enterprises Ltd. 04/14/2013 € 600 (6 ) 10% pa $ 0.034 1.3056 Eardley Holding A.G. 05/15/2013 € 170 (6 ) 10% pa $ 0.037 1.2938 Round Enterprises Ltd. 05/15/2013 € 680 (6 ) 10% pa $ 0.037 1.2938 Eardley Holding A.G. 06/24/2013 € 60 (6 ) 10% pa $ 0.025 1.3340 Round Enterprises Ltd. 06/24/2013 € 240 (6 ) 10% pa $ 0.025 1.3340 Eardley Holding A.G. 08/05/2013 € 80 (6 ) 10% pa $ 0.018 1.3283 Round Enterprises Ltd. 08/05/2013 € 320 (6 ) 10% pa $ 0.018 1.3283 Eardley Holding A.G. 03/01/2017 € 230 (7 ) 2.5% pa N/A N/A Round Enterprises Ltd. 03/01/2017 € 920 (7 ) 2.5% pa N/A N/A Eardley Holding A.G. 10/18/2017 € 230 (7 ) 2.5% pa N/A N/A Round Enterprises Ltd. 10/18/2017 € 920 (7 ) 2.5% pa N/A N/A Eardley Holding A.G. 06/01/2018 € 160 (8 ) 2.5% pa N/A N/A Round Enterprises Ltd. 06/01/2018 € 640 (8 ) 2.5% pa N/A N/A Eardley Holding A.G. 11/10/2018 € 160 (8 ) 2.5% pa N/A N/A Round Enterprises Ltd. 11/10/2018 € 640 (8 ) 2.5% pa N/A N/A Eardley Holding A.G. 06/15/2019 € 120 (9 ) 2.5% pa N/A N/A Round Enterprises Ltd. 06/15/2019 € 480 (9 ) 2.5% pa N/A N/A Eardley Holding A.G. 12/20/2019 € 120 (10 ) 2.5% pa N/A N/A Round Enterprises Ltd. 12/20/2019 € 480 (10 ) 2.5% pa N/A N/A Eardley Holding AG 06/15/2020 € 220 (11 ) 2.5% pa N/A N/A Round Enterprises Ltd. 06/15/2020 € 880 (11 ) 2.5% pa N/A N/A Eardley Holding AG 12/15/2020 € 170 (12 ) 2.5% pa N/A N/A Round Enterprises Ltd. 12/15/2020 € 680 (12 ) 2.5% pa N/A N/A Eardley Holding AG 08/15/2021 € 240 (13 ) 2.5% pa N/A N/A Round Enterprises Ltd. 08/15/2021 € 960 (13 ) 2.5% pa N/A N/A Eardley Holding AG 04/30/2022 € 120 (14 ) 2.5% pa N/A N/A Round Enterprises Ltd. 04/30/2022 € 480 (14 ) 2.5% pa N/A N/A Eardley Holding A.G. 08/15/2022 € 120 (15 ) 2.5% pa N/A N/A Round Enterprises Ltd. 08/15/2022 € 480 (15 ) 2.5% pa N/A N/A Eardley Holding A.G. 12/31/2022 € 50 (16 ) 2.5% pa N/A N/A Round Enterprises Ltd. 12/31/2022 € 200 (16 ) 2.5% pa N/A N/A Eardley Holding A.G. 02/28/2023 € 100 (17 ) 2.5% pa N/A N/A Round Enterprises Ltd. 02/28/2023 € 400 (17 ) 2.5% pa N/A N/A Eardley Holding A.G. 05/30/2023 € 120 (18 ) 2.5% pa N/A N/A Round Enterprises Ltd. 05/30/2023 € 480 (18 ) 2.5% pa N/A N/A Total Short Term Principal Amounts € 38,676 Accrued Interest € 36,290 TOTAL LOANS AND NOTES € 74,966 (1) Private investment company of Dr. Thomas Staehelin, member of the Board of Directors and of the Audit Committee of the Company. Face value is stated in U.S. dollars at $190. (2) This maturity date is automatically prolonged for periods of three months, unless called for repayment. (3) Renamed Hyposwiss Private Bank Genève S.A. and acting on behalf of Round Enterprises Ltd. which is a major shareholder. (4) The loan is secured against 2/3rds of the IP assets of Bestewil Holding BV and against all property of the Company. (5) The face values of the loans are stated in U.S. dollars at $1,200 and $300, respectively. (6) This maturity date is automatically prolonged for periods of three months, unless called for repayment. The conversion price per share is determined by the lower of (i) reducing by 10% the price per share of the Company’s common stock paid by the investors in connection with an investment in the Company of not less than US$20,000, or (ii) at the fixed conversion price using a fixed exchange rate which are noted in the table above. The convertible note holder has the right to convert at any time prior to the maturity date, at the convertible note holder’s option, prior to the repayment of the outstanding balance under the note by the Company, to convert the unpaid outstanding principal balance and accrued interest, in whole or in part, into common stock at the fixed conversion price as stated in the contract. (7) On March 1, 2017, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €1,840 and €460, respectively, with a 2.5% interest per annum and a maturity date of March 1, 2018. The first 50% of the promissory Notes of €920 and €230, respectively, were provided immediately. The second 50% of the promissory notes of €920 and €230, respectively, were provided on October 18, 2017, with a 2.5% interest per annum and a maturity date of October 18, 2018. Both Round Enterprises Ltd. And Eardley Holding AG have agreed to amend the maturity date of these promissory notes to follow the same terms of the other convertible loans. Therefore, the maturity date of the promissory notes is amended to be the later of (i) June 30, 2018, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. The amendments were accounted for as modifications in the consolidated financial statements. (8) On June 1, 2018, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €1,280 and €320 in two tranches, respectively, with a 2.5% interest per annum. The first tranche of the promissory Notes of €640 and €160, respectively, were provided immediately. The second tranche of the promissory notes of €640 and €160, respectively, were provided on November 10, 2018, with a 2.5% interest per annum. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2019, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. (9) On June 15, 2019, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. (10) On December 20, 2019, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. (11) On June 15, 2020, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €1,100 with a 2.5% interest per annum. The promissory Notes of €880 and €220, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. (12) On December 15, 2020, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €850 with a 2.5% interest per annum. The promissory Notes of €680 and €170, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. (13) On August 15, 2021, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €1,200 with a 2.5% interest per annum. The promissory Notes of €960 and €240, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. (14) On April 30, 2022, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €960 and €240 in two tranches, respectively, with a 2.5% interest per annum. The first tranche of the promissory Notes of €480 and €120, respectively, were provided immediately. The second tranche of the promissory notes of €480 and €120, respectively, will be provided in August, 2022, with a 2.5% interest per annum. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2022, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. (15) On August 15, 2022, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2022, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. (16) On December 31, 2022, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €250 with a 2.5% interest per annum. The promissory Notes of €200 and €50, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. (17) On February 28, 2023, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €500 with a 2.5% interest per annum. The promissory Notes of €400 and €100, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. (18) On May 30, 2023, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. On April 2, 2020, the Swiss entity, Mymetics SA, received a federal credit line of Chf 168 in relation with the Covid-19 pandemic. This credit line applies for five years and is fully guaranteed by the Swiss Confederation via guaranteed organizations. The interest rate is currently at 0 percent until March 31, 2023. The Swiss Confederation has the right to adjust the interest rate to the market rate. The first revision took place as of April 1, 2022, but no modification was applied. The second revision took place as of April 13, 2023, and decided to introduce an interest rate of 1.5% per year as of April 1, 2023, which triggered an interest amount paid of €0.5 and €1 for the three and nine months ended September 30, 2023, respectively. A first amortization installment of Chf 14 (€14) was paid on October 3, 2022. A second amortization installment of Chf 14 (€14) was paid on April 3, 2023. The next amortization of €14 was incurred on September 30, 2023, but is paid on October 2, 2023. The entire loan should be fully amortized and repaid by September 30, 2027. Certain of the secured convertible notes have conversion features that should be bifurcated from the debt and recorded at fair value; however, as of September 30, 2023, and 2022, the probability of the conversion features being exercised was zero. For this reason, the conversion features is not required to be bifurcated from the debt as the fair value is zero at September 30, 2023 and December 31, 2022. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Commitments | |
Commitments | Note 3. Commitments The facility lease agreement for Epalinges, Switzerland, was terminated with a three-month notice on July 1, 2023, with an effective date negotiated to August 31, 2023. The related rent was paid monthly in the amount of €4 and was considered a short-term lease. As the term is less than twelve months, the lease was outside of the scope of ASC 842 and not accounted for on the balance sheet due to the Company’s policy elections. The facility lease agreement for Leiden, The Netherlands, was terminated with a six-month notice on March 14, 2023, with an effective date negotiated to September 30, 2023 instead of March 31, 2024. The related rent was paid monthly in the amount of €9. The Company does not have any other operating lease for its research and development facilities, corporate headquarters, offices and equipment. ASU 201602 and ASU 201811— Accounting Standards Update (“ASU”) 201602, Leases (“ASU 201602”) required the recognition of right-of-use lease assets relate primarily to the Company’s leases of office and laboratory space. Right-of-use lease assets initially equal the lease liability. The lease liability equals the present value of the minimum rental payments due under the lease discounted at the rate implicit in the lease or the Company’s incremental borrowing rate for similar collateral. For operating leases, lease liabilities were discounted at the Company’s weighted average incremental borrowing rate for similar collateral estimated to be 5% and the weighted average lease term is 2 years. For operating leases, rent expense is recognized on a straight-line basis over the term of the lease and is recorded in “General and administrative” in the Company’s consolidated statements of operations. During the three and nine months ended September 30, 2023, the Company recognized -€1 and -€4, respectively, in “General and administrative” in its consolidated statement of operations relating to operating leases as a result of the right-of-use lease assets write off. The Company entered into exclusive negotiations with a third party to sell its assets, although an exclusivity fee had been received and was not refundable, the third party did not enter continue further negotiations for definitive agreements and the Company has no further commitment. The Company received an exclusive fee of €100, which was recorded in “other income”. The net balance of severance payment and related fringe benefit of €336 has been reserved and is scheduled to be paid withing the next 6 months. The facility lease agreement for Leiden, The Netherlands, was terminated with a six-month notice on March 14, 2023, with an effective date negotiated to September 30, 2023 instead of March 31, 2024. The related rent was paid monthly in the amount of €9. The Company does not have any other operating lease for its research and development facilities, corporate headquarters, offices and equipment. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events | |
Subsequent Events | Note 4. Subsequent Events On October 16, 2023, the Company was informed by the OTC Markets that the Company’s bid price for the stock closed below $0.001 on October 13, 2023, and that in the event that the Company’s closing bid price per share falls below $0.001 at any time for five consecutive trading days, the Company will be removed from OTCQB as per Section 4.1(b) of the OTCQB Standards. On October 23, 2023, the Company was informed that it has been moved from the OTCQB to the OTC Pink on October 24, 2023, as its closing bid price per share has fallen below $0.001 for more than 5 consecutive trading days. The Company filed an 8-K on October 11, 2023, a Form Pre-14C and Schedule 13E-3 on October 16 and October 17, 2023, respectively, followed by a Form Def-14C and Schedule 13E-3/A on October 27, 2023 in which it announced (i) the approval on October 5, 2023 of resolutions by the Company’s Board of Directors (the “Board”) proposing an amendment to the Company’s Certificate of Incorporation (the “ Certificate of Incorporation”) to effect a reverse stock split of the Company’s Common Stock (the “Reverse Stock Split”) and (ii) the receipt of written consents dated October 9, 2023 (the “ Written Consents”), approving such amendment by stockholders holding 51.55% of the voting power of all of the Company’s stockholders entitled to vote (the “Consenting Stockholders”) on the matter as of October 9, 2023 (the “ Record Date”). The resolutions adopted by the Board and the written consents of the stockholders give has provided the Company the authority to file a Certificate of Amendment to the Certificate of Incorporation (the “Certificate of Amendment”). The Certificate of Amendment shall be filed with the Secretary of State of the State of Delaware on or after November 20, 2023 (20 calendar days following the date this Information Statement is first mailed to the Company’s stockholders) and will become effective immediately thereafter (the “Effective Date”). As a result of the Reverse Stock Split, as described in the Form Def-14C, Mymetics stockholders owning fewer than 2,000 shares of Mymetics Common Stock will receive cash in the amount of $0.0023 per share of existing Common Stock, and Mymetics stockholders who own 2,000 or more shares of existing Common Stock on the Effective Date will receive (i) one share of new Common Stock for every 2,000 shares of existing Common Stock held on the Effective Date and (ii) cash in lieu of any fractional share of new Common Stock that such holder would otherwise be entitled to receive on the basis of $0.0023 per share of existing Common Stock. Although the Reverse Stock Split has been approved by the requisite number of stockholders, the Company’s Board reserves the right, in its discretion, to abandon the Reverse Stock Split prior to the proposed Effective Date if it determines that abandoning the Reverse Stock Split is in the best interests of the Company. The Reverse Stock Split is being undertaken as part of the Company’s plan to suspend its obligations to file periodic and current reports and other information with the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As described further in the Information Statement Form Def-14C, the Company’s Board has determined that the costs of being a public reporting company outweigh the benefits thereof. The actions described herein, including effecting the Reverse Stock Split, terminating the registration of our Common Stock under Section 12(g) of the Exchange Act and suspending of our reporting obligations under Section 15(d) of the Exchange Act, are collectively referred to herein as the “Transaction.” After giving effect to the Transaction, the Company will no longer be subject to the reporting requirements under the Exchange Act or other requirements applicable to a public company, including requirements under the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and the listing standards of any national securities exchange. Additionally, the Reverse Stock Split is subject to Financial Industry Regulatory Authority (“FINRA”) approval, of which there are no assurances when and if FINRA will provide such approval. On October 15, 2023, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
The Company and Summary of Significant Accounting Policies | |
Basis of Presentation and Going Concern | The amounts in the notes are shown in thousands of EURO, unless otherwise noted, and rounded to the nearest thousand except for share and per share amounts. The accompanying interim period condensed consolidated financial statements of Mymetics Corporation (the "Company") set forth herein have been prepared by the Company pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such SEC rules and regulations. The interim period condensed consolidated financial statements should be read together with the audited financial statements and the accompanying notes included in the Company's latest annual report on Form 10-K for the fiscal year ended December 31, 2022. The Company was created for the purpose of engaging in vaccine research and development. Its main research efforts in the beginning have been concentrated in the prevention and treatment of the AIDS virus and malaria. The Company has established a network which enables it to work with education centers, research centers, pharmaceutical laboratories and biotechnology companies. Besides the HIV and malaria vaccine candidates, the Company additionally has generated preclinical data for the following vaccines: Herpes Simplex and Respiratory Syncytial Virus (“RSV”), neither of which is currently being developed. The company also has clinical data for an intranasal influenza vaccine for the elderly which has finished a Phase I clinical trial and is currently on hold. As of September 30, 2023, the Company has generated preclinical data for an intra nasal Covid-19 vaccine and early-stage preclinical data in immunotherapy in the field of oncology, but both programs have been stopped The Company has been collaborating with leading academic institutions, such as Baylor College of Medicine in Texas, the Amsterdam Medical Center (AMC) of the University of Amsterdam in the Netherlands and the University Hospital in Bern, Switzerland until April 2023. On January 16, 2023, the Board appointed Marcel B. Rüegg to the Board to fill the vacancy created by Mr. Stern’s resignation. Mr. Rüegg was also appointed to the Audit Committee. The Company entered into an independent director agreement with Mr. Rüegg (the “Director Agreement”) setting forth the terms of his compensation. Pursuant to the Director Agreement, Mr. Rüegg is entitled to a fee of CHF 5,000 per quarter, which is payable quarterly, and CHF 350 per hour for each additional hour worked outside of meetings of the Board or attending more than one meeting of the Board per quarter, which is payable quarterly. The Company also agreed to reimburse Mr. Rüegg for pre-approved reasonable business expenses incurred in good faith in connection with the performance of his duties for the Company. The Company also agreed to indemnify, defend and hold harmless Mr. Rüegg, to the fullest extent permitted by law, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, subject to certain exceptions based on good faith and reasonableness. On February 8, 2023, the Company announced that it has been conducting a process to explore strategic alternatives to enhance shareholder value. The Board authorized management and its external advisors to initiate such a process, and it has been considering a broad range of strategic alternatives including a potential sale of part or all of the Company. In connection therewith, the Company, through its external advisors, had requested bids (the “Bid Process”) for any combination of assets (including but not limited to as a going concern), by February 24, 2023, at 5:00 pm ET (the “Bid Deadline”). To the extent the Company determined there were viable bids by or prior to the Bid Deadline, the Company pursued those possible alternatives. To the extent the there were no viable bids provided by or prior to the Bid Deadline, the Company would consider other alternatives, including the winding up of its operations shortly after the Bid Deadline. On February 24, 2023, the Company announced that it was still discussing with counterparties potential bids for any combination of its assets (including but not limited to as a going concern) and had decided to extend the bid process (the “Bid Process”) for an indeterminate period of time. The extension of the Bid Process did not assure the sale of part or all of the Company or other change or outcome. The Company retained McDermott, Will & Emery LLP as legal counsel in connection with the Bid Process. While the Company pursued these strategic alternatives, due to lack of liquidity, cost reductions for 2023 had been put in place, including the termination of employment agreements for all employees, except Ronald Kempers. On July 26, 2023, the Company decided to winddown its wholly owned subsidiary Bestewil Holding BV (“BH”) and Mymetics BV running the laboratory, which is the wholly owned subsidiary of BH. The Company has been working with the appropriate accountants to ensure this winddown process follows the applicable tax and accounting regulations. The execution of the winddown is expected to take several months to complete and is subject to various risks and uncertainties that could impact on the Company's ability to successfully complete the winddown or the costs associated with the winddown. To the extent that none of the remaining strategic alternatives are viable, we are exploring a possible winddown of the Company. The Board of Directors of the Company continues to evaluate the next steps, in connection with a possible winddown of the Company’s operations. As of the date of this filing, there is no certainty or conclusion on the future of the Company. During the fiscal year 2023, the Company has been notified twice by the OTC Markets Group, once on May 12, 2023 and the second time on September 14, 2023, that its bid price had closed below $0.01 for more than 30 consecutive calendar days and no longer met the Standards for Continued Eligibility for OTCQB as per the OTCQB Standards, Section 2.3(2), which states that the Company must “maintain proprietary priced quotations published by a Market Maker in OTC Link with a minimum closing bid price of $.01 per share on at least one of the prior thirty consecutive calendar days.” As per Section 4.1 of the OTCQB Standards, the Company will be granted a cure period of 90 calendar days during which the closing bid price for the Company’s Common Stock must be $.01 or greater for ten consecutive trading days in order to continue trading on the OTCQB marketplace. If this requirement is not met by December 13, 2023, the Company will be removed from the OTCQB marketplace. On October 16, 2023, the Company was informed by the OTC Markets that the Company’s bid price for the stock closed below $.001 on October 13, 2023, and that in the event that the Company’s closing bid price per share falls below $0.001 at any time for five consecutive trading days, the Company will be removed from OTCQB as per Section 4.1(b) of the OTCQB Standards. On October 23, 2023, the Company was informed that it has been moved from the OTCQB to the OTC Pink on October 24, 2023, as its closing bid price per share has fallen below $0.001 for more than 5 consecutive trading days. The Company filed an 8-K on October 11, 2023, a Form Pre-14C and Schedule 13E-3, on October 16 and October 17, 2023, respectively, followed by a Form Def-14C and Schedule 13E-3/A on October 27, 2023 in which it announced that following (i) the approval on October 5, 2023 of resolutions by the Company’s Board of Directors (the “Board”) proposing an amendment to the Company’s Certificate of Incorporation (the “ Certificate of Incorporation”) to effect a reverse stock split of the Company’s Common Stock (the “Reverse Stock Split”) and (ii) the receipt of written consents dated October 9, 2023 (the “ Written Consents”), approving such amendment by stockholders holding 51.55% of the voting power of all of the Company’s stockholders entitled to vote (the “Consenting Stockholders”) on the matter as of October 9, 2023 (the “ Record Date”). The resolutions adopted by the Board and the written consents of the stockholders give has provided the Company the authority to file a Certificate of Amendment to the Certificate of Incorporation (the “Certificate of Amendment”). The Certificate of Amendment shall be filed with the Secretary of State of the State of Delaware on or after November 20, 2023 (20 calendar days following the date this Information Statement is first mailed to the Company’s stockholders) and will become effective immediately thereafter (the “Effective Date”). As a result of the Reverse Stock Split, as described in the Form Def-14C, Mymetics stockholders owning fewer than 2,000 shares of Mymetics Common Stock will receive cash in the amount of $0.0023 per share of existing Common Stock, and Mymetics stockholders who own 2,000 or more shares of existing Common Stock on the Effective Date will receive (i) one share of new Common Stock for every 2,000 shares of existing Common Stock held on the Effective Date and (ii) cash in lieu of any fractional share of new Common Stock that such holder would otherwise be entitled to receive on the basis of $0.0023 per share of existing Common Stock. Although the Reverse Stock Split has been approved by the requisite number of stockholders, the Company’s Board reserves the right, in its discretion, to abandon the Reverse Stock Split prior to the proposed Effective Date if it determines that abandoning the Reverse Stock Split is in the best interests of the Company. The Reverse Stock Split is being undertaken as part of the Company’s plan to suspend its obligations to file periodic and current reports and other information with the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As described further in the Information Statement Form Def-14C, the Company’s Board has determined that the costs of being a public reporting company outweigh the benefits thereof. The actions described herein, including effecting the Reverse Stock Split, terminating the registration of our Common Stock under Section 12(g) of the Exchange Act and suspending of our reporting obligations under Section 15(d) of the Exchange Act, are collectively referred to herein as the “Transaction.” After giving effect to the Transaction, the Company will no longer be subject to the reporting requirements under the Exchange Act or other requirements applicable to a public company, including requirements under the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and the listing standards of any national securities exchange. Additionally, the Reverse Stock Split is subject to Financial Industry Regulatory Authority (“FINRA”) approval, of which there are no assurances when and if FINRA will provide such approval. As previously announced, the Board continues to evaluate the next steps in the Company’s business, in connection with a possible winddown of the Company’s operations. These consolidated financial statements have been prepared assuming the Company will continue as a going concern, however the significantly reduced human resource and lack of financial resources has triggered the Company to record a complete Goodwill write-off for the period ending September 30, 2023. The Company has experienced negative cash flows from operations and significant losses since inception resulting in an accumulated deficit of €113,215 at September 30, 2023. Further, the Company’s current liabilities exceed its current assets by €75,426 as of September 30, 2023, and there is no assurance that cash will become available to pay current liabilities in the near term. Management is seeking strategic alternatives but there can be no assurance that management will be successful in any of those efforts. These conditions raise substantial doubt about our ability to continue as a going concern within three months of the issuance of the financial statements. Besides the Goodwill impairment, the financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Leases | Effective January 1, 2019, the Company adopted ASC 842, which established a right-of-use ("ROU") model requiring lessees to record a right-of-use ("ROU") asset and lease obligations on the balance sheet for all leases with terms longer than 12 months. The Company determines if an arrangement is a lease at inception. Where an arrangement is a lease, the Company determines if it is an operating lease or a finance lease. At lease commencement, the Company records a lease liability and corresponding right-of-use ("ROU") asset. Lease liabilities represent the present value of our future lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the Company’s lease liability is determined using its incremental collateralized borrowing rate at lease inception. ROU assets represent its right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability for leases with an initial term greater than 12 months. Over the lease term (operating leases only), the Company uses the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to consolidated statement of operations in a manner that results in straight line expense recognition. The Company does not apply lease recognition requirements for short-term leases. Instead, the Company recognizes payments related to these arrangements in the consolidated statement of operations as lease costs on a straight-line basis over the lease term. |
Principles of Consolidation | The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated. |
New Accounting Pronouncement | In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Specifically, ASU 2020-06 simplifies accounting for the issuance of convertible instruments by removing major separation models required under current GAAP. In addition, the ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share (EPS) calculation in certain areas. ASU 2020-06 will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, beginning in fiscal years which begin after December 15, 2020. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluating the impact of the pending adoption of this new standard on its consolidated financial statements. |
Foreign Currency Translation | The Company translates non-Euro assets and liabilities of its subsidiaries at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Unrealized gains or losses from these translations are reported as a separate component of comprehensive income. Transaction gains or losses are included in foreign exchange (gain) loss in the consolidated statements of comprehensive loss. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations. The Company's reporting currency is the Euro because substantially all of the Company's activities are conducted in Europe. |
Cash | The Company considers all highly liquid investments purchased with maturities of six months or less to be cash equivalents. Cash deposits are occasionally in excess of insured amounts. |
Revenue Recognition | Effective January 1, 2018, the Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, using the modified retrospective method and there was no impact to financial position and results of operations as a result of the adoption. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Overall, adoption of the new standard did not result in an adjustment to amounts previously reported in our consolidated financial statements and there were no other significant changes impacting the timing or measurement of our revenue or our business processes and controls. The Company has concluded that government grants are not within the scope of Topic 606, as they do not meet the definition of a contract with a “customer”. The Company concluded the definition of a contract with a “customer” was not met as the counterparty to the government grants has not contracted to obtain goods or services and thus the contracts are not considered to have commercial substance. Government grants provide the Company with payments for certain types of expenditures related to research and development activities over a contractually defined period. Revenue from government grants is recognized in the period during which the related costs are incurred, provided that the applicable conditions under the government contracts have been met. |
NIH | On April 29, 2019, the National Institutes of Health (“NIH”) awarded the Company and Texas Biomedical Research Institute (“Texas Biomed”) a five-year grant for the project called “Cold Chain-independent, Needle-free Mucosal Virosomal Vaccine to Prevent HIV-1 Acquisition at Mucosal Levels” (“NIH Grant”). The project started on May 1, 2019, and has been planned for five years. It was initially co-led by Texas Biomed, but due to the move of Dr. Ruth Ruprecht, the Co-Principal Investigator, to the University of Louisiana at Lafayette (“ULL”) at the end of 2019, ULL has become the co-lead with Mymetics for this project. The overall budget related to the project is US$8,850 with US$8,761 approved for the period of (May 2019 to April 2024). This includes the funds approved for the period of May 2023 to April 2024 of US$1’630. The amounts mentioned in the following statements are purely related to the Company and not to the other partners in the project: The overall portion of the grant allocated to the Company is US$4,052 approved for the period of May 2019 to April 2024. This includes the funds approved for the period of May 2023 to April 2024 of US$97. In March 2023, an amendment to the contract was signed to reduce the allocated funds from ULL to the Company from US$1,328 to US$ 815, as more funds were allocated to the animal studies at ULL. The cost granted under the sub-award with Texas Biomed for the period of (May to December 2019) was US$743, of which, US$599 (€542) was incurred as revenue. The sub-award contracts between ULL and the Company for the period of (January 2020 to April 2021) were signed for a total budget of US$1,319, of which, US$1,048 (€909) was incurred as revenue. The sub-award contract between ULL and the Company for the period of (May 2021 to April 2022) was signed for a total budget of US$1,078, of which, US$986 (€899) was incurred as revenue. The sub-award contract, including the amendment, between ULL and the Company for the period of (May 2022 to April 2023) was signed for a total budget of US$815, of which, US$674 (€638) was incurred as revenue as of end of April 2023. The sub-award contract between ULL and the Company for the period of (May 2023 to April 2024) was signed for a total budget of US$97, of which, US$55 (€47) was incurred as revenue. Since the beginning of the project to date, the Company has incurred a total cost of US$3,362 (€3,035) which was recognized as grant revenue from the NIH. For the three and nine months ended on September 30, 2023, the Company has incurred a total cost of US$36 (€30) and US$440 (€406), respectively, which was recognized as grant revenue from the NIH. The First results are expected to be reported in 2023. The project had the objective to prepare the Company’s HIV-1 vaccine candidate for clinical trials, by first executing a non-human primate (“NHP”) study, where the test subjects will be receiving Mymetics’ virosome based HIV-1 vaccine candidate by several intra-muscular and intra-nasal applications, followed by rectal challenges. As of September 30, 2023, the Company has successfully produced six sets of virosome based vaccines and the NHPs have received two intramuscular vaccinations and three intranasal vaccinations in two different studies. The vaccinations were well tolerated. The final studies are ongoing. The vaccine candidate is created to induce protective mucosal antibodies acting as a frontline defense against sexual HIV transmission. This grant from the NIH has allowed the Company to continue some of the developments that were achieved during the European Horizon 2020 project. In February 2022, Mymetics announced the publication of results in Frontiers in Immunology title: “Cooperation between Systemic and Mucosal Antibodies Induced by Virosomal Vaccines Targeting HIV1 Env: Protection of Indian Rhesus Macaques against Mucosal SHIV challenges”. The Project with ULL under the NIH grant for our HIV vaccine is in its final year that will end on April 30, 2024. Mymetics has provided its commitments to this project by delivering the vaccines, which are tested in non-human primates. |
Receivables | Receivables are stated at their outstanding principal balances. Management reviews the collectability of receivables on a periodic basis and determines the appropriate amount of any allowance. There was no allowance necessary at September 30, 2023 or December 31, 2022. The Company writes off receivables to the allowance when management determines that a receivable is not collectible. The Company may retain a security interest in the products sold. |
Property and Equipment | Property and equipment is recorded at cost and is depreciated over its estimated useful life on straight-line basis from the date placed in service. Estimated useful lives are usually taken as three years. |
Impairment of Long-Lived Assets | Long-lived assets, which include property and equipment, are assessed for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. The impairment testing involves comparing the carrying amount to the forecasted undiscounted future cash flows generated by that asset. In the event the carrying value of the assets exceeds the undiscounted future cash flows generated by that asset and the carrying value is not considered recoverable, impairment exists. An impairment loss is measured as the excess of the asset’s carrying value over its fair value, calculated using a discounted future cash flow method. An impairment loss would be recognized in net income (loss) in the period that the impairment occurs. |
Goodwill | Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of a business acquired. The Company typically performs its annual goodwill impairment test effective as of April 1 of each year, unless events or circumstances indicate impairment may have occurred before that time. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than it’s carrying amount. With the significantly reduced human resources and lack of funds the Company has recorded a complete Goodwill write-off for the nine months period ending September 30, 2023. |
Research and Development | Research and development costs are expensed as incurred. |
Taxes on Income | The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax laws or rates. The Company reports a liability, if any, for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of interest expense and other expense, respectively. The Company has not recorded any liabilities for uncertain tax positions or any related interest and penalties at December 31, 2022 or 2021. The Company’s United States tax returns are open to audit for the years ended December 31, 2018 to 2021. The returns for the Swiss subsidiary, Mymetics S.A., are open to audit for the year ended December 31, 2021. The returns for the Netherlands subsidiaries, Bestewil B.V. and Mymetics B.V., are open to audit for the year ended December 31, 2021. |
Earnings per Share | Basic earnings per share is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. For the periods ended September 30, 2023 and 2022, options and convertible debt were not included in the computation of diluted earnings per share because their effect would be anti-dilutive due to net losses incurred under the treasury stock method. For the three and nine months ended September 30, 2023, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 830,150,223 at September 30, 2023 includes 804,400,223 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees. For the three and nine months ended September 30, 2022, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 793,630,391 at September 30, 2022 includes 767,880,391 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees. |
Preferred Stock | The Company has authorized 5,000,000 shares of preferred stock that may be issued in several series with varying dividend, conversion and voting rights. No preferred shares are issued or outstanding at September 30, 2023 or December 31, 2022. |
Estimates | The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value Measurements | Fair value guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1- Quoted prices in active markets for identical assets or liabilities. Level 2- Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3- Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Fair Values of Financial Instruments | The Company generally has the following financial instruments: cash, receivables, accounts payable, and notes payable. The carrying value of cash, accounts receivable, and accounts payable, approximates their fair value based on the short-term nature of these financial instruments. Management believes the fair value of the note’s payable reflects the actual value reported for these instruments. |
Concentrations | The Company derived 99% and 100% of grant revenue for the nine-month periods ended September 30, 2023 and 2022, respectively, from one grantor, respectively. For the period ended December 31, 2022, the Company derived 100% of grant revenue from one partner. |
Related Party Transactions | Mr. Ernest M. Stern, the Company’s, is a partner in Culhane Meadows PLLC and was outside counsel to the company and a director of the Company until his resignation on December 20, 2022. Culhane Meadows PLLC was the Company’s legal counsel until December 31, 2022. Fees incurred with the law firm was NIL in the nine months ended September 30, 2023, and totaling €10 and €6 for the three months ended September 30, 2022. On January 16, 2023, the Board appointed Marcel B. Rüegg to the Board to fill the vacancy created by Mr. Stern’s resignation. Mr. Rüegg was also appointed to the Audit Committee. The Company entered into an independent director agreement with Mr. Rüegg (the “Director Agreement”) setting forth the terms of his compensation. Pursuant to the Director Agreement, Mr. Rüegg is entitled to a fee of CHF 5,000 per quarter, which is payable quarterly, and CHF 350 per hour for each additional hour worked outside of meetings of the Board or attending more than one meeting of the Board per quarter, which is payable quarterly. The Company also agreed to reimburse Mr. Rüegg for pre-approved reasonable business expenses incurred in good faith in connection with the performance of his duties for the Company. The Company also agreed to indemnify, defend and hold harmless Mr. Rüegg, to the fullest extent permitted by law, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, subject to certain exceptions based on good faith and reasonableness. No fee was paid to Marcel B. Rüegg during the nine months ended September 30, 2023. Two of the Company’s major shareholders have granted secured convertible notes and short-term convertible notes and promissory notes, which have a total carrying amount of €74,483 including interest due as of September 30, 2023. Conversion prices on the Euro-denominated convertible debt have been fixed to a fixed Euro/US dollar exchange rate. |
Debt Financing (Tables)
Debt Financing (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Financing | |
Schedule of notes and other loans | Conversion Fixed Rate Lender Price 1st-Issue Date Principal Amount Duration (Note) Interest Rate Price (stated) EUR/USD Conversion Eardley Holding A.G. (1) 06/23/2006 € 180 (2 ) 10% pa $ 0.10 N/A Anglo Irish Bank S.A.(3) 10/21/2007 € 500 (2 ) 10% pa $ 0.50 1.4090 Round Enterprises Ltd. 12/10/2007 € 1,500 (2 ) 10% pa $ 0.50 1.4429 Round Enterprises Ltd. 01/22/2008 € 1,500 (2 ) 10% pa $ 0.50 1.4629 Round Enterprises Ltd. 04/25/2008 € 2,000 (2 ) 10% pa $ 0.50 1.5889 Round Enterprises Ltd. 06/30/2008 € 1,500 (2 ) 10% pa $ 0.50 1.5380 Round Enterprises Ltd. 11/18/2008 € 1,200 (2 ) 10% pa $ 0.50 1.2650 Round Enterprises Ltd. 02/09/2009 € 1,500 (2 ) 10% pa $ 0.50 1.2940 Round Enterprises Ltd. 06/15/2009 € 5,500 (2,4 ) 10% pa $ 0.80 1.4045 Eardley Holding A.G. 06/15/2009 € 100 (2,4 ) 10% pa $ 0.80 1.4300 Von Meyenburg 08/03/2009 € 200 (2 ) 10% pa $ 0.80 1.4400 Round Enterprises Ltd. 10/13/2009 € 2,000 (2 ) 5% pa $ 0.25 1.4854 Round Enterprises Ltd. 12/18/2009 € 2,200 (2 ) 5% pa $ 0.25 1.4338 Round Enterprises Ltd. 08/04/2011 € 1,135 (5,6 ) 10% pa $ 0.034 N/A Eardley Holding A.G. 08/04/2011 € 284 (5,6 ) 10% pa $ 0.034 N/A Round Enterprises Ltd. 11/08/2011 € 400 (6 ) 10% pa $ 0.034 1.3787 Eardley Holding A.G. 11/08/2011 € 100 (6 ) 10% pa $ 0.034 1.3787 Round Enterprises Ltd. 02/10/2012 € 1,000 (6 ) 10% pa $ 0.034 1.3260 Eardley Holding A.G. 02/14/2012 € 200 (6 ) 10% pa $ 0.034 1.3260 Round Enterprises Ltd. 04/19/2012 € 322 (6 ) 10% pa $ 0.034 1.3100 Eardley Holding A.G. 04/19/2012 € 80 (6 ) 10% pa $ 0.034 1.3100 Round Enterprises Ltd. 05/04/2012 € 480 (6 ) 10% pa $ 0.034 1.3152 Eardley Holding A.G. 05/04/2012 € 120 (6 ) 10% pa $ 0.034 1.3152 Round Enterprises Ltd. 09/03/2012 € 200 (6 ) 10% pa $ 0.034 1.2576 Eardley Holding A.G. 09/03/2012 € 50 (6 ) 10% pa $ 0.034 1.2576 Round Enterprises Ltd. 11/14/2012 € 500 (6 ) 10% pa $ 0.034 1.2718 Eardley Holding A.G. 12/06/2012 € 125 (6 ) 10% pa $ 0.034 1.3070 Round Enterprises Ltd. 01/16/2013 € 240 (6 ) 10% pa $ 0.034 1.3318 Eardley Holding A.G. 01/16/2013 € 60 (6 ) 10% pa $ 0.034 1.3318 Round Enterprises Ltd. 03/25/2013 € 400 (6 ) 10% pa $ 0.037 1.2915 Eardley Holding A.G. 04/14/2013 € 150 (6 ) 10% pa $ 0.034 1.3056 Round Enterprises Ltd. 04/14/2013 € 600 (6 ) 10% pa $ 0.034 1.3056 Eardley Holding A.G. 05/15/2013 € 170 (6 ) 10% pa $ 0.037 1.2938 Round Enterprises Ltd. 05/15/2013 € 680 (6 ) 10% pa $ 0.037 1.2938 Eardley Holding A.G. 06/24/2013 € 60 (6 ) 10% pa $ 0.025 1.3340 Round Enterprises Ltd. 06/24/2013 € 240 (6 ) 10% pa $ 0.025 1.3340 Eardley Holding A.G. 08/05/2013 € 80 (6 ) 10% pa $ 0.018 1.3283 Round Enterprises Ltd. 08/05/2013 € 320 (6 ) 10% pa $ 0.018 1.3283 Eardley Holding A.G. 03/01/2017 € 230 (7 ) 2.5% pa N/A N/A Round Enterprises Ltd. 03/01/2017 € 920 (7 ) 2.5% pa N/A N/A Eardley Holding A.G. 10/18/2017 € 230 (7 ) 2.5% pa N/A N/A Round Enterprises Ltd. 10/18/2017 € 920 (7 ) 2.5% pa N/A N/A Eardley Holding A.G. 06/01/2018 € 160 (8 ) 2.5% pa N/A N/A Round Enterprises Ltd. 06/01/2018 € 640 (8 ) 2.5% pa N/A N/A Eardley Holding A.G. 11/10/2018 € 160 (8 ) 2.5% pa N/A N/A Round Enterprises Ltd. 11/10/2018 € 640 (8 ) 2.5% pa N/A N/A Eardley Holding A.G. 06/15/2019 € 120 (9 ) 2.5% pa N/A N/A Round Enterprises Ltd. 06/15/2019 € 480 (9 ) 2.5% pa N/A N/A Eardley Holding A.G. 12/20/2019 € 120 (10 ) 2.5% pa N/A N/A Round Enterprises Ltd. 12/20/2019 € 480 (10 ) 2.5% pa N/A N/A Eardley Holding AG 06/15/2020 € 220 (11 ) 2.5% pa N/A N/A Round Enterprises Ltd. 06/15/2020 € 880 (11 ) 2.5% pa N/A N/A Eardley Holding AG 12/15/2020 € 170 (12 ) 2.5% pa N/A N/A Round Enterprises Ltd. 12/15/2020 € 680 (12 ) 2.5% pa N/A N/A Eardley Holding AG 08/15/2021 € 240 (13 ) 2.5% pa N/A N/A Round Enterprises Ltd. 08/15/2021 € 960 (13 ) 2.5% pa N/A N/A Eardley Holding AG 04/30/2022 € 120 (14 ) 2.5% pa N/A N/A Round Enterprises Ltd. 04/30/2022 € 480 (14 ) 2.5% pa N/A N/A Eardley Holding A.G. 08/15/2022 € 120 (15 ) 2.5% pa N/A N/A Round Enterprises Ltd. 08/15/2022 € 480 (15 ) 2.5% pa N/A N/A Eardley Holding A.G. 12/31/2022 € 50 (16 ) 2.5% pa N/A N/A Round Enterprises Ltd. 12/31/2022 € 200 (16 ) 2.5% pa N/A N/A Eardley Holding A.G. 02/28/2023 € 100 (17 ) 2.5% pa N/A N/A Round Enterprises Ltd. 02/28/2023 € 400 (17 ) 2.5% pa N/A N/A Eardley Holding A.G. 05/30/2023 € 120 (18 ) 2.5% pa N/A N/A Round Enterprises Ltd. 05/30/2023 € 480 (18 ) 2.5% pa N/A N/A Total Short Term Principal Amounts € 38,676 Accrued Interest € 36,290 TOTAL LOANS AND NOTES € 74,966 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies (Details Narrative) € in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 EUR (€) shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 shares | Sep. 30, 2023 EUR (€) shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 shares | Dec. 31, 2022 EUR (€) shares | |
Current liabilities exceeding current assets | € | € 75,426 | € 75,426 | |||||
Preferred stock shares authorized | shares | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Potentially shares issuable | shares | 830,150,223 | 830,150,223 | 793,630,391 | 25,750,000,000 | 25,750,000,000 | 793,630,391 | |
Potentially shares issuable convertible loans | shares | 804,400,223 | 804,400,223 | 767,880,391 | ||||
Sub award grant revenue USD | $ | $ 36 | $ 440 | |||||
Accumulated deficit | € | € (113,215) | € (113,215) | € (102,555) | ||||
Sub award grant revenue euro | € | 30 | 406 | |||||
Secured convertible notes and short-term convertible notes and promissory notes | € | € 74,483 | € 74,483 | |||||
Basic weighted and diluted | shares | 303,757,622 | 303,757,622 | 303,757,622 | 303,757,622 | 303,757,622 | 303,757,622 | |
Budget description | The overall budget related to the project is US$8,850 with US$8,761 approved for the period of (May 2019 to April 2024). This includes the funds approved for the period of May 2023 to April 2024 of US$1’630 | The overall budget related to the project is US$8,850 with US$8,761 approved for the period of (May 2019 to April 2024). This includes the funds approved for the period of May 2023 to April 2024 of US$1’630 | |||||
Grant allocated description | The amounts mentioned in the following statements are purely related to the Company and not to the other partners in the project: The overall portion of the grant allocated to the Company is US$4,052 approved for the period of May 2019 to April 2024. This includes the funds approved for the period of May 2023 to April 2024 of US$97. In March 2023, an amendment to the contract was signed to reduce the allocated funds from ULL to the Company from US$1,328 to US$ 815, as more funds were allocated to the animal studies at ULL | The amounts mentioned in the following statements are purely related to the Company and not to the other partners in the project: The overall portion of the grant allocated to the Company is US$4,052 approved for the period of May 2019 to April 2024. This includes the funds approved for the period of May 2023 to April 2024 of US$97. In March 2023, an amendment to the contract was signed to reduce the allocated funds from ULL to the Company from US$1,328 to US$ 815, as more funds were allocated to the animal studies at ULL | |||||
Grant Revenue [Member] | |||||||
Concentration risk percentage | 99% | 99% | 100% | 100% | |||
First Year [Member] | |||||||
Sub award grant revenue USD | $ | $ 599 | ||||||
Sub award grant revenue euro | € | € 542 | ||||||
Sub award project cost USD | $ | 743 | ||||||
Second Year [Member] | |||||||
Sub award grant revenue USD | $ | 1,048 | ||||||
Sub award grant revenue euro | € | 909 | ||||||
Sub award project cost USD | $ | 1,319 | ||||||
Third Year [Member] | |||||||
Sub award grant revenue USD | $ | 986 | ||||||
Sub award grant revenue euro | € | 899 | ||||||
Sub award project cost USD | $ | 1,078 | ||||||
Fourth Year [Member] | |||||||
Sub award grant revenue USD | $ | 674 | ||||||
Sub award grant revenue euro | € | 638 | ||||||
Sub award project cost USD | $ | 815 | ||||||
Five Year [Member] | |||||||
Sub award grant revenue USD | € | 55 | ||||||
Sub award grant revenue euro | € | 47 | ||||||
Sub award project cost USD | $ | 97 | ||||||
Revanue form NIH [Member] | |||||||
Sub award grant revenue USD | $ | $ 3,362 | ||||||
Sub award grant revenue euro | € | € 3,035 |
Debt Financing (Details)
Debt Financing (Details) - 9 months ended Sep. 30, 2023 € in Thousands | EUR (€) | $ / shares |
Total short term principal amounts | € 38,676 | |
Accrued interest | 36,290 | |
Total loans and notes | € 74,966 | |
Note 1 [Member] | ||
Issuance date | 06/23/2006 | |
Principal amount | € 180 | |
Interest rate | 10% | |
Conversion price | $ / shares | $ 0.10 | |
Note 2 [Member] | ||
Issuance date | 10/21/2007 | |
Principal amount | € 500 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.50 | |
Fixed rate conversion | 1.4090 | |
Note 3 [Member] | ||
Issuance date | 12/10/2007 | |
Principal amount | € 1,500 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.50 | |
Fixed rate conversion | 1.4429 | |
Note 4 [Member] | ||
Issuance date | 01/22/2008 | |
Principal amount | € 1,500 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.50 | |
Fixed rate conversion | 1.4629 | |
Note 5 [Member] | ||
Issuance date | 04/25/2008 | |
Principal amount | € 2,000 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.50 | |
Fixed rate conversion | 1.5889 | |
Note 6 [Member] | ||
Issuance date | 06/30/2008 | |
Principal amount | € 1,500 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.50 | |
Fixed rate conversion | 1.5380 | |
Note 7 [Member] | ||
Issuance date | 11/18/2008 | |
Principal amount | € 1,200 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.50 | |
Fixed rate conversion | 1.2650 | |
Note 8 [Member] | ||
Issuance date | 02/09/2009 | |
Principal amount | € 1,500 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.50 | |
Fixed rate conversion | 1.2940 | |
Note 9 [Member] | ||
Issuance date | 06/15/2009 | |
Principal amount | € 5,500 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.80 | |
Fixed rate conversion | 1.4045 | |
Note 10 [Member] | ||
Issuance date | 06/15/2009 | |
Principal amount | € 100 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.80 | |
Fixed rate conversion | 1.4300 | |
Note 11 [Member] | ||
Issuance date | 08/03/2009 | |
Principal amount | € 200 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.80 | |
Fixed rate conversion | 1.4400 | |
Note 12 [Member] | ||
Issuance date | 10/13/2009 | |
Principal amount | € 2,000 | |
Interest rate | 5% | |
Conversion price | $ / shares | 0.25 | |
Fixed rate conversion | 1.4854 | |
Note 13 [Member] | ||
Issuance date | 12/18/2009 | |
Principal amount | € 2,200 | |
Interest rate | 5% | |
Conversion price | $ / shares | 0.25 | |
Fixed rate conversion | 1.4338 | |
Note 14 [Member] | ||
Issuance date | 08/04/2011 | |
Principal amount | € 1,135 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Note 15 [Member] | ||
Issuance date | 08/04/2011 | |
Principal amount | € 284 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Note 16 [Member] | ||
Issuance date | 11/08/2011 | |
Principal amount | € 400 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3787 | |
Note 17 [Member] | ||
Issuance date | 11/08/2011 | |
Principal amount | € 100 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3787 | |
Note 18 [Member] | ||
Issuance date | 02/10/2012 | |
Principal amount | € 1,000 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3260 | |
Note 19 [Member] | ||
Issuance date | 02/14/2012 | |
Principal amount | € 200 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3260 | |
Note 20 [Member] | ||
Issuance date | 04/19/2012 | |
Principal amount | € 322 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3100 | |
Note 21 [Member] | ||
Issuance date | 04/19/2012 | |
Principal amount | € 80 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3100 | |
Note 22 [Member] | ||
Issuance date | 05/04/2012 | |
Principal amount | € 480 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3152 | |
Note 23 [Member] | ||
Issuance date | 05/04/2012 | |
Principal amount | € 120 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3152 | |
Note 24 [Member] | ||
Issuance date | 09/03/2012 | |
Principal amount | € 200 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.2576 | |
Note 25 [Member] | ||
Issuance date | 09/03/2012 | |
Principal amount | € 50 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.2576 | |
Note 26 [Member] | ||
Issuance date | 11/14/2012 | |
Principal amount | € 500 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.2718 | |
Note 27 [Member] | ||
Issuance date | 12/06/2012 | |
Principal amount | € 125 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3070 | |
Note 28 [Member] | ||
Issuance date | 01/16/2013 | |
Principal amount | € 240 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3318 | |
Note 29 [Member] | ||
Issuance date | 01/16/2013 | |
Principal amount | € 60 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3318 | |
Note 30 [Member] | ||
Issuance date | 03/25/2013 | |
Principal amount | € 400 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.037 | |
Fixed rate conversion | 1.2915 | |
Note 31 [Member] | ||
Issuance date | 04/14/2013 | |
Principal amount | € 150 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3056 | |
Note 32 [Member] | ||
Issuance date | 04/14/2013 | |
Principal amount | € 600 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.034 | |
Fixed rate conversion | 1.3056 | |
Note 33 [Member] | ||
Issuance date | 05/15/2013 | |
Principal amount | € 170 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.037 | |
Fixed rate conversion | 1.2938 | |
Note 34 [Member] | ||
Issuance date | 05/15/2013 | |
Principal amount | € 680 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.037 | |
Fixed rate conversion | 1.2938 | |
Note 35 [Member] | ||
Issuance date | 06/24/2013 | |
Principal amount | € 60 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.025 | |
Fixed rate conversion | 1.3340 | |
Note 36 [Member] | ||
Issuance date | 06/24/2013 | |
Principal amount | € 240 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.025 | |
Fixed rate conversion | 1.3340 | |
Note 37 [Member] | ||
Issuance date | 08/05/2013 | |
Principal amount | € 80 | |
Interest rate | 10% | |
Conversion price | $ / shares | 0.018 | |
Fixed rate conversion | 1.3283 | |
Note 38 [Member] | ||
Issuance date | 08/05/2013 | |
Principal amount | € 320 | |
Interest rate | 10% | |
Conversion price | $ / shares | $ 0.018 | |
Fixed rate conversion | 1.3283 | |
Note 39 [Member] | ||
Issuance date | 03/01/2017 | |
Principal amount | € 230 | |
Interest rate | 2.50% | |
Note 40 [Member] | ||
Issuance date | 03/01/2017 | |
Principal amount | € 920 | |
Interest rate | 2.50% | |
Note 41 [Member] | ||
Issuance date | 10/18/2017 | |
Principal amount | € 230 | |
Interest rate | 2.50% | |
Note 42 [Member] | ||
Issuance date | 10/18/2017 | |
Principal amount | € 920 | |
Interest rate | 2.50% | |
Note 43 [Member] | ||
Issuance date | 06/01/2018 | |
Principal amount | € 160 | |
Interest rate | 2.50% | |
Note 44 [Member] | ||
Issuance date | 06/01/2018 | |
Principal amount | € 640 | |
Interest rate | 2.50% | |
Note 45 [Member] | ||
Issuance date | 11/10/2018 | |
Principal amount | € 160 | |
Interest rate | 2.50% | |
Note 46 [Member] | ||
Issuance date | 11/10/2018 | |
Principal amount | € 640 | |
Interest rate | 2.50% | |
Note 47 [Member] | ||
Issuance date | 06/15/2019 | |
Principal amount | € 120 | |
Interest rate | 2.50% | |
Note 48 [Member] | ||
Issuance date | 06/15/2019 | |
Principal amount | € 480 | |
Interest rate | 2.50% | |
Note 49 [Member] | ||
Issuance date | 12/20/2019 | |
Principal amount | € 120 | |
Interest rate | 2.50% | |
Note 50 [Member] | ||
Issuance date | 12/20/2019 | |
Principal amount | € 480 | |
Interest rate | 2.50% | |
Note 51 [Member] | ||
Issuance date | 06/15/2020 | |
Principal amount | € 220 | |
Interest rate | 2.50% | |
Note 52 [Member] | ||
Issuance date | 06/15/2020 | |
Principal amount | € 880 | |
Interest rate | 2.50% | |
Note 53 [Member] | ||
Issuance date | 12/15/2020 | |
Principal amount | € 170 | |
Interest rate | 2.50% | |
Note 54 [Member] | ||
Issuance date | 12/15/2020 | |
Principal amount | € 680 | |
Interest rate | 2.50% | |
Note 55 [Member] | ||
Issuance date | 08/15/2021 | |
Principal amount | € 240 | |
Interest rate | 2.50% | |
Note 56 [Member] | ||
Issuance date | 08/15/2021 | |
Principal amount | € 960 | |
Interest rate | 2.50% | |
Note 57 [Member] | ||
Issuance date | 04/30/2022 | |
Principal amount | € 120 | |
Interest rate | 2.50% | |
Note 58 [Member] | ||
Issuance date | 04/30/2022 | |
Principal amount | € 480 | |
Interest rate | 2.50% | |
Note 59 [Member] | ||
Issuance date | 08/15/2022 | |
Principal amount | € 120 | |
Interest rate | 2.50% | |
Note 60 [Member] | ||
Issuance date | 08/15/2022 | |
Principal amount | € 480 | |
Interest rate | 2.50% | |
Note 61 [Member] | ||
Issuance date | 12/31/2022 | |
Principal amount | € 50 | |
Interest rate | 2.50% | |
Note 62 [Member] | ||
Issuance date | 12/31/2022 | |
Principal amount | € 200 | |
Interest rate | 2.50% | |
Note 63 [Member] | ||
Issuance date | 02/28/2023 | |
Principal amount | € 100 | |
Interest rate | 2.50% | |
Note 64 [Member] | ||
Issuance date | 02/28/2023 | |
Principal amount | € 400 | |
Interest rate | 2.50% | |
Note 65 [Member] | ||
Issuance date | 05/30/2023 | |
Principal amount | € 120 | |
Interest rate | 2.50% | |
Note 66 [Member] | ||
Issuance date | 05/30/2023 | |
Principal amount | € 480 | |
Interest rate | 2.50% |
Debt Financing (Details Narrati
Debt Financing (Details Narrative) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Aug. 15, 2022 EUR (€) | Aug. 15, 2021 EUR (€) | Dec. 15, 2020 EUR (€) | Jun. 01, 2018 EUR (€) | Mar. 01, 2017 EUR (€) | May 30, 2023 EUR (€) | Feb. 28, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Jun. 15, 2020 EUR (€) | Dec. 20, 2019 EUR (€) | Jun. 15, 2019 EUR (€) | Sep. 30, 2023 EUR (€) | Sep. 30, 2023 EUR (€) | Oct. 15, 2023 EUR (€) | Apr. 30, 2022 EUR (€) | Apr. 30, 2022 USD ($) | Apr. 02, 2020 EUR (€) | |
Description of conversion price | (i) reducing by 10% the price per share of the Company’s common stock paid by the investors in connection with an investment in the Company of not less than US$20,000, or (ii) at the fixed conversion price using a fixed exchange rate which are noted in the table above | ||||||||||||||||
Promissory Notes | € 600,000 | € 1,200,000 | € 850,000 | € 600,000 | € 500,000 | € 250,000 | € 1,100,000 | € 600,000 | € 600,000 | € 600,000 | € 960,000 | ||||||
Interest amount paid | € 500 | € 1,000 | |||||||||||||||
Interest rate | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 1.50% | 1.50% | 2.50% | 2.50% | ||
Debt instruments description | The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2022, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes | The promissory Notes of €960 and €240, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes | The promissory Notes of €680 and €170, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes | The first tranche of the promissory Notes of €640 and €160, respectively, were provided immediately. The second tranche of the promissory notes of €640 and €160, respectively, were provided on November 10, 2018, with a 2.5% interest per annum | The first 50% of the promissory Notes of €920 and €230, respectively, were provided immediately. The second 50% of the promissory notes of €920 and €230, respectively, were provided on October 18, 2017, with a 2.5% interest per annum and a maturity date of October 18, 2018 | The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes | The promissory Notes of €400 and €100, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes | The promissory Notes of €200 and €50, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes | The promissory Notes of €880 and €220, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes | The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes | The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes | ||||||
Total loans and notes | € 74,966,000 | € 74,966,000 | |||||||||||||||
Received from federal credit line | € 168,000 | ||||||||||||||||
Amortization installment description | A first amortization installment of Chf 14 (€14) was paid on October 3, 2022. A second amortization installment of Chf 14 (€14) was paid on April 3, 2023. The next amortization of €14 was incurred on September 30, 2023, but is paid on October 2, 2023. The entire loan should be fully amortized and repaid by September 30, 2027 | ||||||||||||||||
Debt instrument one | |||||||||||||||||
Debt instrument face value | 190,000 | € 190,000 | |||||||||||||||
Debt instrument two | |||||||||||||||||
Debt instrument face value | 1,200,000 | 1,200,000 | |||||||||||||||
Debt instrument three | |||||||||||||||||
Debt instrument face value | € 300,000 | € 300,000 | |||||||||||||||
Promissory Notes One | |||||||||||||||||
Promissory Notes | € 1,840,000 | 480,000 | $ 240 | ||||||||||||||
Promissory Notes Two | |||||||||||||||||
Promissory Notes | € 460,000 | € 120,000 | |||||||||||||||
Promissory Notes Tranches One | Round Enterprises Ltd | |||||||||||||||||
Promissory Notes Tranches | € 1,280,000 | 480 | |||||||||||||||
Promissory Notes Tranches One | Eardley Holding | |||||||||||||||||
Promissory Notes Tranches | $ | 120 | ||||||||||||||||
Promissory Notes Tranches Two | Round Enterprises Ltd | |||||||||||||||||
Promissory Notes Tranches | € 320,000 | 480 | |||||||||||||||
Promissory Notes Tranches Two | Eardley Holding | |||||||||||||||||
Promissory Notes Tranches | $ | $ 120 |
Commitments (Details Narrative)
Commitments (Details Narrative) - EUR (€) € in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Commitments [Member] | ||
Other income | € 100 | |
Severance payment and related fringe benefit | 336 | |
Rent | 9 | |
Lease Agreements [Member] | ||
General and administrative expense | € 1 | € 4 |
Weighted average lease term | 2 years | |
Lease liabilities discounted | 5% | |
Short Term Lease [Member] | ||
Rent paid per month | € 4 | |
Netherlands [Member] | ||
Rent paid per month | € 9 | |
Lease agreement maturity date | Mar. 31, 2024 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) $ / shares in Units, € in Thousands, $ in Thousands | 1 Months Ended | 9 Months Ended | |||||||||||||||
Oct. 11, 2023 | Oct. 16, 2023 $ / shares | Sep. 30, 2023 | Oct. 15, 2023 EUR (€) | May 30, 2023 EUR (€) | Feb. 28, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Aug. 15, 2022 EUR (€) | Apr. 30, 2022 EUR (€) | Apr. 30, 2022 USD ($) | Aug. 15, 2021 EUR (€) | Dec. 15, 2020 EUR (€) | Jun. 15, 2020 EUR (€) | Dec. 20, 2019 EUR (€) | Jun. 15, 2019 EUR (€) | Jun. 01, 2018 | Mar. 01, 2017 EUR (€) | |
Description of conversion price | (i) reducing by 10% the price per share of the Company’s common stock paid by the investors in connection with an investment in the Company of not less than US$20,000, or (ii) at the fixed conversion price using a fixed exchange rate which are noted in the table above | ||||||||||||||||
Promissory Notes | € 600 | € 600 | € 500 | € 250 | € 600 | € 960 | € 1,200 | € 850 | € 1,100 | € 600 | € 600 | ||||||
Interest rate | 1.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | |||
Subsequent Event [Member] | |||||||||||||||||
Description of closing bid Price fallen down | the Company’s closing bid price per share falls below $0.001 at any time for five consecutive trading days, the Company will be removed from OTCQB as per Section 4.1(b) of the OTCQB Standards. On October 23, 2023, the Company was informed that it has been moved from the OTCQB to the OTC Pink on October 24, 2023, as its closing bid price per share has fallen below $0.001 for more than 5 consecutive trading days | ||||||||||||||||
Bid price | $ / shares | $ 0.001 | ||||||||||||||||
Description of conversion price | stockholders owning fewer than 2,000 shares of Mymetics Common Stock will receive cash in the amount of $0.0023 per share of existing Common Stock, and Mymetics stockholders who own 2,000 or more shares of existing Common Stock on the Effective Date will receive (i) one share of new Common Stock for every 2,000 shares of existing Common Stock held on the Effective Date and (ii) cash in lieu of any fractional share of new Common Stock that such holder would otherwise be entitled to receive on the basis of $0.0023 per share of existing Common Stock | ||||||||||||||||
Interest rate | 2.50% | ||||||||||||||||
Promissory Notes One | |||||||||||||||||
Promissory Notes | € 480 | $ 240 | € 1,840 | ||||||||||||||
Promissory Notes Two | |||||||||||||||||
Promissory Notes | € 120 | € 460 |