2023 Q4 Form 20-F Financial Statement

#000121390024043570 Filed on May 15, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023 2022
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $2.733M $5.899M $6.506M
YoY Change -18.71% -9.33% 9.5%
% of Gross Profit
Research & Development $1.525M $5.908M $8.977M
YoY Change -55.58% -34.18% 51.65%
% of Gross Profit
Depreciation & Amortization $5.710K $11.41K $11.41K
YoY Change 0.0% 0.0% 13.51%
% of Gross Profit
Operating Expenses $4.258M $11.81M $15.48M
YoY Change -37.34% -23.74% 30.54%
Operating Profit -$11.80M -$15.48M
YoY Change -23.78% 30.54%
Interest Expense -$145.0K $119.9K -$90.82K
YoY Change 77.63% -232.04% 6.28%
% of Operating Profit
Other Income/Expense, Net -$156.7K -$219.8K $10.05K
YoY Change 177.82% -2288.27% -157.99%
Pretax Income -$4.559M -$12.17M -$16.50M
YoY Change -41.96% -26.21% 38.08%
Income Tax
% Of Pretax Income
Net Earnings -$4.559M -$12.17M -$16.50M
YoY Change -41.96% -26.21% 38.08%
Net Earnings / Revenue
Basic Earnings Per Share -$0.32 -$0.84
Diluted Earnings Per Share -$0.12 -$0.32 -$0.84
COMMON SHARES
Basic Shares Outstanding 35.67M shares 38.18M shares 19.68M shares
Diluted Shares Outstanding 38.18M shares 19.68M shares

Balance Sheet

Concept 2023 Q4 2023 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $897.7K $897.7K $8.948M
YoY Change -89.97% -89.97% 64.76%
Cash & Equivalents $900.0K $897.7K $8.948M
Short-Term Investments
Other Short-Term Assets $890.3K $890.3K $256.8K
YoY Change 246.74% 246.74% 1.33%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $1.823M $1.823M $9.246M
YoY Change -80.28% -80.28% 61.56%
LONG-TERM ASSETS
Property, Plant & Equipment $6.694K $6.690K $18.10K
YoY Change -63.02% -63.04% -38.66%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $16.89K $16.89K $12.14K
YoY Change 39.05% 39.13% 0.83%
Total Long-Term Assets $23.58K $23.58K $30.24K
YoY Change -22.04% -22.02% -27.22%
TOTAL ASSETS
Total Short-Term Assets $1.823M $1.823M $9.246M
Total Long-Term Assets $23.58K $23.58K $30.24K
Total Assets $1.847M $1.847M $9.277M
YoY Change -80.09% -80.09% 60.92%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.634M $4.634M $2.373M
YoY Change 95.24% 95.24% 36.63%
Accrued Expenses $1.652M $1.652M $986.4K
YoY Change 67.5% 67.5% 48.01%
Deferred Revenue
YoY Change
Short-Term Debt $1.634M $1.634M $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $7.920M $7.920M $3.360M
YoY Change 135.72% 135.72% 39.79%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $2.761M $2.761M $2.636M
YoY Change 4.73% 4.73% -6.48%
Total Long-Term Liabilities $2.761M $2.761M $2.636M
YoY Change 4.73% 4.73% -6.48%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.920M $7.920M $3.360M
Total Long-Term Liabilities $2.761M $2.761M $2.636M
Total Liabilities $10.68M $10.68M $5.996M
YoY Change 78.13% 78.13% 14.81%
SHAREHOLDERS EQUITY
Retained Earnings -$70.37M
YoY Change 20.91%
Common Stock $733.4K
YoY Change 9.7%
Preferred Stock
YoY Change
Treasury Stock (at cost) $64.86K
YoY Change
Treasury Stock Shares
Shareholders Equity -$8.834M -$8.834M $3.281M
YoY Change
Total Liabilities & Shareholders Equity $1.847M $1.847M $9.277M
YoY Change -80.09% -80.09% 60.92%

Cashflow Statement

Concept 2023 Q4 2023 2022
OPERATING ACTIVITIES
Net Income -$4.559M -$12.17M -$16.50M
YoY Change -41.96% -26.21% 38.08%
Depreciation, Depletion And Amortization $5.710K $11.41K $11.41K
YoY Change 0.0% 0.0% 13.51%
Cash From Operating Activities -$2.388M -$9.684M -$13.88M
YoY Change -61.57% -30.22% -7.07%
INVESTING ACTIVITIES
Capital Expenditures $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00 $1.912M
YoY Change -100.0% -91.48%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.634M $1.634M $17.40M
YoY Change -88.17% -90.61% -14.46%
NET CHANGE
Cash From Operating Activities -2.388M -$9.684M -$13.88M
Cash From Investing Activities 0.000
Cash From Financing Activities 1.634M $1.634M $17.40M
Net Change In Cash -754.2K -$8.051M $3.517M
YoY Change -109.93% -328.9% -34.41%
FREE CASH FLOW
Cash From Operating Activities -$2.388M -$9.684M -$13.88M
Capital Expenditures $0.00
Free Cash Flow -$2.388M -$9.684M -$13.88M
YoY Change -61.57% -30.22% -6.83%

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CY2022 us-gaap Proceeds From Issuance Of Warrants
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CY2021 us-gaap Proceeds From Issuance Of Warrants
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CY2021 us-gaap Proceeds From Notes Payable
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CY2023 us-gaap Interest Paid Net
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CY2022 us-gaap Interest Paid Net
InterestPaidNet
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CY2021 us-gaap Interest Paid Net
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CY2022 us-gaap Notes Issued1
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CY2021 us-gaap Debt Issuance Costs Incurred During Noncash Or Partial Noncash Transaction
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CY2021 nlsp Issuance Of Common Shares To Consultant For Payment Of Expenses
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CY2023 us-gaap Nature Of Operations
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Note 1</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Background:</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NLS Pharmaceutics Ltd. (Nasdaq: NLSP, NLSPW) (the “Company”) is an emerging biopharmaceutical company engaged in the discovery and development of life-improving drug therapies to treat rare and complex central nervous system disorders, including narcolepsy, idiopathic hypersomnia and other rare sleep disorders, and of neurodevelopmental disorders, such as attention deficit hyperactivity disorder (“ADHD”). The Company’s lead product candidates are Quilience, to treat narcolepsy (type 1 and type 2), and Nolazol, to treat ADHD.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 2, 2021, the Company completed the closing of its initial public offering (the “Initial Public Offering”) of 4,819,277 units at a price of $4.15 per unit. Each unit consisted of one common share and one warrant to purchase one common share (the “Warrants”). The common shares and Warrants were immediately separable from the units and were issued separately. The common shares and Warrants began trading on the Nasdaq Capital Market on January 29, 2021 under the symbols “NLSP” and “NLSPW,” respectively. The Company received net proceeds of $17 million, after deducting underwriting discounts and commissions and other estimated offering expenses. The Warrants are exercisable immediately, expire five years from the date of issuance and have an exercise price of $4.15 per share. In addition, the Company granted the underwriters a 45-day option to purchase up to an additional 722,891 common shares and/or Warrants to purchase 722,891 common shares at the public offering price of $0.01 per Warrant, of which the underwriters exercised its option to purchase Warrants to purchase up to 722,891 common shares. These Warrants were issued in the Company’s Initial Public Offering and therefore have the same exercise price of $4.15 per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Going Concern</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2023, the Company had an accumulated deficit of approximately $70.4 million and the Company incurred an operating loss for the year ended December 31, 2023, of approximately $11.8 million. To date, the Company has dedicated most of its financial resources to achieve and maintain Phase 3 readiness, research and development, clinical studies associated with its ongoing biopharmaceutical business and general and administrative expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2023, the Company’s cash and cash equivalents were $0.9 million. The Company’s existing cash and cash equivalents and access to existing financing arrangements will not be sufficient to fund operations for a period of one year from the issuance of these financial statements. The Company expects to continue to generate operating losses and negative operating cash flows for the next few years and will need additional funding to support its planned operating activities through profitability. The Company is actively exploring a range of options to raise funds, including strategic partnerships, out-licensing, or divestment of assets of the Company, and other future strategic actions. The Company is engaged in discussions with third party creditors to extend payment terms and has secured extensions on maturity dates on its existing bridge loans to December 31, 2024 and June 30, 2025 respectively (see subsequent event note). The future viability of the Company is dependent on its ability to extend payment terms with third party creditors until additional funds have been raised. There can be no assurance that such capital will be available within a sufficient period of time, in sufficient amounts or on terms acceptable to the Company. These conditions raise substantial doubt about the Company’s ability to continue as a going concern beyond one year from the issuance of these financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accordingly, the accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which contemplate continuation of the Company as a going concern for a period within one year from the issuance of these financial statements and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in these financial statements do not necessarily purport to represent realizable or settlement values. These financial statements do not include any adjustment that might result from the outcome of this uncertainty.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Use of Estimates</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates and be based on events different from those assumptions. As part of these financial statements, the Company’s significant estimates include the valuation allowance related to the Company’s deferred tax assets.</p>
CY2023 us-gaap Concentration Risk Credit Risk
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Concentration of Credit Risk</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially subject the Company to concentration of credit risk include cash. At December 31, 2023 and 2022, substantially all of the cash balances are deposited in one banking institution. At various times, the Company has deposits in financial institutions which are in excess of federally insured limits.</p>
CY2023 nlsp Tax Benefits More Likely To Be Recognized Percentage
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Depreciation
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CY2023 nlsp Milestone Payments Due Description
MilestonePaymentsDueDescription
(i) $750,000 payable following the end of a Phase II meeting with the FDA, with the amount to be reduced to $375,000 if toxicology studies must be repeated; (ii) $2 million following the earlier of U.S. Food and Drug Administration (“FDA”) marketing authorization of Quilience or Nolazol; (iii) 1% of any upfront and milestone payments, if any, from any sublicensees and (iv) $3 million as a one-time payment upon the Company’s product candidate reaching $250 million in cumulative sales.
CY2023Q2 us-gaap Litigation Settlement Amount Awarded From Other Party
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CY2023 nlsp Cash Placement
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CY2023 nlsp Sales Agreement Description
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the Company entered into the Sales Agreement with Virtu, as sales agent. On April 13, 2022, the Company reduced the amount that may be sold pursuant to the Sales Agreement to $230,000. The Company will pay Virtu a commission rate of up to 3.0% of the gross proceeds from each sale of common shares and has agreed to provide Virtu with customary indemnification and contribution rights. The Company will also reimburse Virtu for certain specified expenses in connection with entering into the Sales Agreement. Under the Sales Agreement, common shares will be offered and sold pursuant to the Company’s shelf registration statement on Form F-3 (File No. 333-262489), declared effective by the Securities and Exchange Commission on February 11, 2023. In addition, under the Sales Agreement, sales of common shares may be made by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended. The Company has no obligation to sell any of the common shares under the Sales Agreement and may at any time suspend the offering of its common shares upon notice and subject to other conditions
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the Company entered into two addendums to the Short Term Loan Agreements with Ronald Hafner, the Company’s Chairman of the Board of Directors. These addendums extend the maturity date under the Loan Agreements to June 30, 2025, for the aggregate amount of CHF 750,000.
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0001213900-24-043570-index.html Edgar Link pending
0001213900-24-043570.txt Edgar Link pending
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ea020587101ex12-1_nlspharma.htm Edgar Link pending
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