2024 Q1 Form 10-K Financial Statement

#000149315224009993 Filed on March 15, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $305.7K $515.0K $2.231M
YoY Change -61.28% -64.07% -11.61%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.370M $1.438M $5.361M
YoY Change -11.9% 20.6% -22.41%
% of Gross Profit
Research & Development $778.9K $2.233M $7.587M
YoY Change -56.63% -65.34% -61.75%
% of Gross Profit
Depreciation & Amortization $0.00 $0.00
YoY Change
% of Gross Profit
Operating Expenses $2.149M $3.671M $12.95M
YoY Change -35.88% -51.92% -51.59%
Operating Profit -$1.843M -$10.72M
YoY Change -28.04% -55.75%
Interest Expense $1.248M -$344.8K -$354.0K
YoY Change 83271.08% 564.87% -423.17%
% of Operating Profit
Other Income/Expense, Net -$1.274M -$3.880K $445.9K
YoY Change -444.75% -100.52% 2994.1%
Pretax Income -$3.117M -$3.504M -$10.63M
YoY Change 42.19% -36.03% -56.1%
Income Tax
% Of Pretax Income
Net Earnings -$3.117M -$3.504M -$10.63M
YoY Change 42.19% -36.54% -56.1%
Net Earnings / Revenue -1019.41% -680.41% -476.39%
Basic Earnings Per Share -$0.55 -$4.69
Diluted Earnings Per Share -$0.55 -$1.34 -$4.69
COMMON SHARES
Basic Shares Outstanding 7.329M shares 3.146M shares 2.264M shares
Diluted Shares Outstanding 5.694M shares 2.264M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.404M $1.124M $1.124M
YoY Change 140.46% -64.3% -64.3%
Cash & Equivalents $3.404M $1.124M $1.124M
Short-Term Investments
Other Short-Term Assets $25.51K $1.068M $1.068M
YoY Change -98.47% -43.05% -43.05%
Inventory
Prepaid Expenses $1.196M $1.068M
Receivables $96.22K $97.56K $97.56K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $4.697M $2.289M $2.289M
YoY Change 39.34% -56.81% -56.81%
LONG-TERM ASSETS
Property, Plant & Equipment $0.00 $0.00
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $377.6K $419.2K $419.2K
YoY Change -30.63% -28.45% -28.45%
Total Long-Term Assets $377.6K $419.2K $419.2K
YoY Change -30.63% -28.45% -28.45%
TOTAL ASSETS
Total Short-Term Assets $4.697M $2.289M $2.289M
Total Long-Term Assets $377.6K $419.2K $419.2K
Total Assets $5.074M $2.708M $2.708M
YoY Change 29.61% -53.98% -53.98%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $981.7K $1.936M $1.936M
YoY Change -38.57% -34.23% -34.23%
Accrued Expenses $408.4K $542.3K $542.3K
YoY Change -82.82% -75.94% -75.94%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $246.0K $854.7K $854.7K
YoY Change -79.97% -79.97%
Total Short-Term Liabilities $1.636M $3.333M $3.333M
YoY Change -58.85% -64.78% -64.78%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0% -100.0%
Other Long-Term Liabilities $17.43K $26.39K $26.39K
YoY Change -80.91% -91.5% -91.5%
Total Long-Term Liabilities $17.43K $26.39K $26.39K
YoY Change -80.91% -94.14% -94.14%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.636M $3.333M $3.333M
Total Long-Term Liabilities $17.43K $26.39K $26.39K
Total Liabilities $1.654M $3.031M $3.031M
YoY Change -59.34% -69.43% -68.43%
SHAREHOLDERS EQUITY
Retained Earnings -$124.7M -$121.6M
YoY Change 10.23% 9.61%
Common Stock $733.00 $315.00
YoY Change 472.66% -50.93%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.749M -$322.9K -$322.9K
YoY Change
Total Liabilities & Shareholders Equity $5.074M $2.708M $2.708M
YoY Change 29.61% -53.98% -53.98%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$3.117M -$3.504M -$10.63M
YoY Change 42.19% -36.54% -56.1%
Depreciation, Depletion And Amortization $0.00 $0.00
YoY Change
Cash From Operating Activities -$3.408M -$1.802M -$10.78M
YoY Change -5.5% -45.33% -39.73%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities $0.00 $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $9.050M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $5.689M 1.461M 8.756M
YoY Change 203.42% -24.7% -0.11%
NET CHANGE
Cash From Operating Activities -$3.408M -1.802M -10.78M
Cash From Investing Activities 0.000 0.000
Cash From Financing Activities $5.689M 1.461M 8.756M
Net Change In Cash $2.281M -340.8K -2.024M
YoY Change -231.69% -74.86% -77.8%
FREE CASH FLOW
Cash From Operating Activities -$3.408M -$1.802M -$10.78M
Capital Expenditures
Free Cash Flow
YoY Change

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CY2022 ENSC Transaction Costs From Public Offerings
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CY2022 ENSC Repayment Insurance Premiums
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CY2022 us-gaap Net Cash Provided By Used In Financing Activities
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CY2023 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2023 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
3200 usd
CY2022 us-gaap Income Taxes Paid Net
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1600 usd
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CY2022 ENSC Non Cash Payable To Related Parties Settled In Shares
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CY2022 ENSC Capital Contribution From Related Parties
CapitalContributionFromRelatedParties
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136000 usd
CY2023 ENSC Debt Discount From Warrants Issuance
DebtDiscountFromWarrantsIssuance
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CY2023 ENSC Issuance Cost From Convertible Notes
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226503 usd
CY2023 ENSC Financed Insurance Premiums
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CY2022 ENSC Financed Insurance Premiums
FinancedInsurancePremiums
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CY2023 ENSC Settlement Of Commitment Fee In Shares
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CY2022 ENSC Deemed Dividend Related To Warrants Down Round Provision
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CY2023 us-gaap Basis Of Accounting
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<p id="xdx_803_eus-gaap--BasisOfAccounting_z1uLbGFSiOPl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 2 - <span id="xdx_82B_z3Bz0hcbXKv3">BASIS OF PRESENTATION</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the United States Securities Exchange Commission (“SEC”). The consolidated financial statements include the accounts of Ensysce Biosciences, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated in the consolidation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Reverse Stock Split</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In March 2023, the Company completed a <span id="xdx_90F_eus-gaap--StockholdersEquityReverseStockSplit_c20230301__20230331_zmkN19qXzT8c" title="Reverse stock split">1-for-12</span> reverse split of its outstanding common stock. All references in these consolidated financial statements to shares and per share amounts in all periods have been retroactively restated to reflect the split. The number of authorized shares and the par value of the shares did not change as a result of the reverse stock split.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Going Concern</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has not generated any product revenue. There is no assurance that profitable operations will ever be achieved, and, if achieved, would be sustained on a continuing basis. Product development activities, clinical and pre-clinical testing, and commercialization of the Company’s product candidates are necessary to develop the Company’s products and will require significant additional financing. There can be no assurance the Company will be able to obtain such funds. These matters, among others, raise substantial doubt about the Company’s ability to continue as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While the Company believes in the viability of its strategy to ultimately realize revenues and in its ability to raise additional funds, management cannot be certain that additional funding will be available on acceptable terms, or at all. The Company’s ability to continue as a going concern is dependent upon its ability to obtain adequate financing and achieve profitable operations. As a result, these plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern for a period of 12 months following the date these consolidated financial statements were issued.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Ensysce Biosciences, Inc.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to the Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023Q1 us-gaap Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
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CY2023 us-gaap Use Of Estimates
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<p id="xdx_847_eus-gaap--UseOfEstimates_zDivFpYfZqV1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_863_zcmibkv7XCU6">Use of Estimates and Assumptions</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and disclosed in the accompanying notes. Actual results may differ from those estimates and such differences may be material to the consolidated financial statements. The more significant estimates and assumptions by management include, but are not limited to, the expense recognition for certain accrued research and development services.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_84C_eus-gaap--ConcentrationRiskCreditRisk_zkuVBPb9auwb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 11pt; text-align: justify; text-indent: -11pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_861_zTnNiFMryQyf">Concentrations of Credit Risk and Off-Balance Sheet Risk</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash and cash equivalents are financial instruments that are potentially subject to concentrations of credit risk. The Company’s cash and cash equivalents are deposited in accounts at large financial institutions and amounts currently exceed federally insured limits. The Company has no financial instruments with off-balance sheet risk of loss. Additionally, the Company had a concentration in accounts payable, as <span id="xdx_90C_eus-gaap--ConcentrationRiskBenchmarkDescription_c20230101__20231231_zdefpdM3UV11">two research and development vendors made up greater than 10% individually, and 38% and 65% in aggregate</span>, of the outstanding accounts payable balance as of December 31, 2023 and 2022, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Ensysce Biosciences, Inc.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to the Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023 us-gaap Concentration Risk Benchmark Description
ConcentrationRiskBenchmarkDescription
two research and development vendors made up greater than 10% individually, and 38% and 65% in aggregate
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CY2023 ENSC Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Cash Payments
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CY2023 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2023 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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5101173 shares
CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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241885 shares
CY2023Q4 ENSC Prepaid Research And Development
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CY2022Q4 ENSC Prepaid Research And Development
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CY2022Q4 us-gaap Prepaid Expense Current
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CY2023Q4 ENSC Accrued Research And Development
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CY2022Q4 ENSC Accrued Research And Development
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CY2022Q4 ENSC Share Subscription Facility Commitments Fees
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400000 usd
CY2023Q4 us-gaap Accrued Professional Fees Current And Noncurrent
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CY2022Q4 us-gaap Accrued Professional Fees Current And Noncurrent
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