Results of Operations
Revenues The Company is a biopharmaceutical company and did not have any revenue for the six month period ended December 31, 2022.
Research and Development Expenses – Research and development expenses for the three months ended December 31, 2022 decreased $90,598 to $1,170,710 from $1,261,308 for the three months ended December 31, 2021. Research and development expenses for the six months ended December 31, 2022 decreased $1,074,859 to $2,283,369 from $3,358,228 for the six months ended December 31, 2021. The decrease in research and development expenses for the three months ended December 31, 2022 is due to a decrease in outside lab expenses. The decrease in the research and development expenses for the six months ended December 31, 2022 is due to a decrease in outside lab expenses, and a milestone payment during the six months ended December 31, 2021 to a related party, TheraCour, upon execution of a COVID -19 License Agreement.
General and Administration Expenses – General and administrative expenses for the three months ended December 31, 2022 increased $4,016 to $663,284 from $659,268 for the three months ended December 31, 2021. General and administrative expenses for the six months ended December 31, 2022 decreased $1,728 to $1,172,985 from $1,174,713 for the six months ended December 31, 2021. The increase in general and administrative expenses for the three months ended December 31, 2022 is due to an increase in professional fees. The decrease in general and administrative expense for the six months ended December 31, 2022 is due to an decrease in office expenses.
Interest Income – Interest income for the three months ended December 31, 2022 increased $86,881 to $88,954 from $2,073 for the three months ended December 31, 2021. Interest income for the six months ended December 31, 2022 increased $138,389 to $141,516 from $3,127 for the six months ended December 31, 2021. The increase in interest income for the three and six months ended December 31, 2022 is due to an increase in interest rates during the three and six month period ended December 31, 2022.
Interest Expense – Interest expense decreased $2,537 to $94 for the three months ended December 31, 2022 from $2,631 for the three months ended December 31, 2021. Interest expense decreased $3,450 to $938 for the six months ended December 31, 2022 from $4,388 for the six months ended December 31, 2021. The decrease in interest expense for the three and six months ended December 31, 2022 is a result of the full payoff of the mortgage loan and complete amortization of the loan origination fee at December 31, 2021.
Income Taxes – There is no provision for income taxes due to ongoing operating losses.
Net Loss – For the three months ended December 31, 2022, the Company had a net loss of $(1,745,134) or $(0.15) per share compared to a net loss of $(1,921,134) or $(0.17) per share for the three months ended December 31, 2021. For the six months ended December 31, 2022, the Company had a net loss of $(3,315,776) or $(0.29) per share compared to a net loss of $(4,534,202) or $(.0.39) per share for the six months ended December 31, 2021. The decrease in the net loss for the three months ended December 31, 2022 is attributable to a decrease in research and development expenses. The decrease in the net loss for the six months ended December 31, 2022 is attributable to a milestone payment of 100,000 shares of the Company’s Series A preferred stock, with a fair value of approximately $935,000, issued in September 2021, to TheraCour upon execution of an exclusive license agreement for the sale of drugs to treat COVID-19 infections using TheraCour’s technology and a decrease in outside lab expenses.
Liquidity and Capital Reserves
The Company had cash and cash equivalents of $11,448,346, and prepaid expenses of $104,545 as of December 31, 2022 and accounts payable and accrued expenses were $464,592, inclusive of accounts payable of $373,424 to a related party as of the same date. The accounts payable – related party is net of a two month advance of $465,000. Since inception, the Company has expended substantial resources on research and development. Consequently, we have sustained substantial losses. The Company has an accumulated deficit of $125,807,952 at December 31, 2022. Such losses are expected to continue for the foreseeable future and until such time, if ever, as the Company is able to attain sales levels sufficient to support its operations. There can be no assurance that the Company will achieve or maintain profitability in the future. On July 31, 2020, the Company entered into an At The Market (“ATM”) Sales Agreement with B. Riley Securities, Inc. and Kingswood Capital (now E.F.Hutton)(collectively the “Sales Agents) pursuant to which the Company may offer and sell, from time to time, through or to the Sales Agents, shares of common stock having an aggregate offering price of up to $50 million. To date the Company has sold 814,242 shares for approximately $6.4 million under the