2024 Q1 Form 10-K Financial Statement

#000141057824000410 Filed on April 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.082M $1.555M $6.339M
YoY Change -47.06% -65.27% -35.38%
% of Gross Profit
Research & Development $609.2K $577.9K $1.975M
YoY Change -30.59% -59.1% -68.78%
% of Gross Profit
Depreciation & Amortization $1.399K -$3.650K $6.350K
YoY Change -17.22% -340.13% 11.13%
% of Gross Profit
Operating Expenses $1.691M $2.132M $8.314M
YoY Change -42.11% -63.79% -48.47%
Operating Profit
YoY Change
Interest Expense $1.427M $821.4K $905.4K
YoY Change 17.9% -92.08% -91.43%
% of Operating Profit
Other Income/Expense, Net $1.485M $315.0K $1.370M
YoY Change 22.69% -96.25% -87.03%
Pretax Income -$206.7K -$996.0K -$6.039M
YoY Change -87.92% -122.22% 8.33%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$206.7K -$1.229M -$13.78M
YoY Change -87.92% -128.16% 147.21%
Net Earnings / Revenue
Basic Earnings Per Share -$0.41 -$1.18
Diluted Earnings Per Share -$0.41 -$1.45 -$29.56
COMMON SHARES
Basic Shares Outstanding 27.13M 20.39M 11.65M
Diluted Shares Outstanding 1.037M 11.65M

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $28.24M $28.66M $28.66M
YoY Change -21.08% -23.53% -23.53%
Cash & Equivalents $26.30M $28.66M $28.66M
Short-Term Investments $1.938M $1.439M
Other Short-Term Assets $2.498M $1.871M $1.871M
YoY Change 243.98% 69.01% 69.01%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $28.83M $30.53M $30.53M
YoY Change -21.03% -20.87% -20.87%
LONG-TERM ASSETS
Property, Plant & Equipment $17.11K $18.51K $18.51K
YoY Change -23.95% -16.41% -16.43%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $553.8K $562.4K $562.4K
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $570.9K $580.9K $580.9K
YoY Change 2438.16% 2523.21% 2522.62%
TOTAL ASSETS
Total Short-Term Assets $28.83M $30.53M $30.53M
Total Long-Term Assets $570.9K $580.9K $580.9K
Total Assets $29.40M $31.11M $31.11M
YoY Change -19.52% -19.41% -19.41%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $238.9K $444.6K $444.6K
YoY Change -32.87% -32.65% -32.65%
Accrued Expenses $45.69K $3.832M $3.832M
YoY Change -91.52% 613.94% 613.95%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $6.300M $4.276M $4.276M
YoY Change 393.39% 225.75% 225.75%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $223.0K $1.253M $1.253M
YoY Change -79.09% -33.36% -33.36%
Total Long-Term Liabilities $223.0K $1.253M $1.253M
YoY Change -79.09% -33.36% -33.36%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.300M $4.276M $4.276M
Total Long-Term Liabilities $223.0K $1.253M $1.253M
Total Liabilities $6.523M $5.529M $5.529M
YoY Change 178.35% 73.17% 73.17%
SHAREHOLDERS EQUITY
Retained Earnings -$34.04M -$33.61M
YoY Change 56.06% 69.48%
Common Stock $109.00 $2.411K
YoY Change -85.21% 231.18%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $22.05M $25.58M $25.58M
YoY Change
Total Liabilities & Shareholders Equity $29.40M $31.11M $31.11M
YoY Change -19.52% -19.41% -19.41%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$206.7K -$1.229M -$13.78M
YoY Change -87.92% -128.16% 147.21%
Depreciation, Depletion And Amortization $1.399K -$3.650K $6.350K
YoY Change -17.22% -340.13% 11.13%
Cash From Operating Activities -$1.832M -$1.063M -$5.173M
YoY Change 8.0% -61.8% -53.86%
INVESTING ACTIVITIES
Capital Expenditures $2.710K $2.710K
YoY Change 27.23% -63.45%
Acquisitions
YoY Change
Other Investing Activities -$500.0K -$2.000M -$2.000M
YoY Change
Cash From Investing Activities -$500.0K -$2.003M -$2.003M
YoY Change 24433.86% 93923.94% 26912.54%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$1.000M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.070K -1.641M
YoY Change -100.01% -111.33%
NET CHANGE
Cash From Operating Activities -1.832M -1.063M -5.173M
Cash From Investing Activities -500.0K -2.003M -2.003M
Cash From Financing Activities -1.070K -1.641M
Net Change In Cash -2.332M -3.067M -8.817M
YoY Change 37.32% -127.52% -370.09%
FREE CASH FLOW
Cash From Operating Activities -$1.832M -$1.063M -$5.173M
Capital Expenditures $2.710K $2.710K
Free Cash Flow -$1.066M -$5.176M
YoY Change -61.74% -53.86%

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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;text-indent:0pt;margin:0pt 0pt 12pt 0pt;">Note 1 – Organization, Business, Risks and Uncertainties:</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;font-weight:bold;text-indent:0pt;margin:0pt 0pt 12pt 0pt;">Organization and Business</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">On May 17, 2020, Neurotrope, Inc. (“Neurotrope” or “the Parent”) announced plans for the complete legal and structural separation of its wholly owned subsidiary, Neurotrope Bioscience, Inc., from Neurotrope (the “Spin-Off”). Under the Separation and Distribution Agreement, Neurotrope planned to distribute all of its equity interest in this wholly owned subsidiary to Neurotrope’s stockholders. Following the Spin-Off, Neurotrope does not own any equity interest in the Company, and the Company operates independently from Neurotrope. On December 7, 2020, the Company became an independent company, Synaptogenix, Inc., a Delaware corporation (formerly known as Neurotrope Bioscience, Inc.) (the “Company” or “Synaptogenix”) when the Company filed an amended and restated certificate of incorporation which, among other things, changed its name to Synaptogenix, Inc. The Company’s shares of common stock, par value $0.0001 per share (the “Common Stock”), are listed on The Nasdaq Capital Market under the symbol “SNPX.”</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">Neurotrope Bioscience, Inc. was incorporated in Delaware on October 31, 2012 to advance new therapeutic and diagnostic technologies in the field of neurodegenerative disease, primarily Alzheimer’s disease (“AD”). The Company is collaborating with Cognitive Research Enterprises, Inc. (formerly known as the Blanchette Rockefeller Neurosciences Institute, or BRNI) (“CRE”) in this process. The exclusive rights to certain technology were licensed by CRE to the Company on February 28, 2013 (see Note 3 - Collaborative Agreements and Commitments).</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">In connection with the separation from Neurotrope, the Company entered into a Separation and Distribution Agreement and several other ancillary agreements. These agreements govern the relationship between the parties after the separation and allocate between the parties’ various assets, liabilities, rights and obligations following the separation, including employee benefits, intellectual property, information technology, insurance and tax-related liabilities.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">On December 16, 2022, the Company issued a press release announcing that an extended confirmatory Phase 2 study of Bryostatin-1 in moderate to severe AD (Study #204) did not achieve statistical significance on the primary endpoint, which was changed from baseline to Week 13 in the Severe Impairment Battery (“SIB”) total score assessment obtained after completion of the second seven-dose course of treatment (week 28 of trial). On March 7, 2023, the Company announced results of its analysis of secondary endpoints and post hoc analysis from our Phase 2 study of Bryostatin-1. In the secondary endpoint analysis, changes from baseline at Weeks 9, 20, 24, 30, and 42 in the SIB (Severe Impairment Battery) total score were not statistically significant in the total patient population, and no pre-specified secondary endpoints were met with statistical significance in the low-to-moderately severe AD patient stratum. However, nearly all pre-specified secondary endpoints in the most advanced and severe AD (Mini Mental State Exam 2 (“MMSE”) (baseline scores: 10-14) patient population, with baseline MMSE-2 (Mini-Mental State Examination, 2nd Edition) scores of 10-14, were achieved with statistical significance (p = &lt;0.05, 2-tailed). Data also showed statistical significance in exploratory secondary endpoints for the MMSE-2 10-14 stratum, and post hoc analysis was positive.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">On April 24, 2023, the Company received a written notice from the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that for the preceding 30 consecutive business days, the Company’s common stock did not maintain a minimum closing bid price of $1.00 per share as required by Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company received an initial grace period of 180 calendar days, or until October 23, 2023 (the “Initial Compliance Period”), to regain compliance with the Minimum Bid Price Requirement. Compliance could be achieved automatically and without further action if the closing bid price of the Company’s stock remained at or above $1.00 for a minimum of 10 consecutive business days at any time during the Initial Compliance Period. On October 24, 2023, the Company received a second written notice from Nasdaq, notifying the Company that it had not regained compliance with the Minimum Bid Price Requirement during the Initial Compliance Period and granting the Company an additional grace period of 180 calendar days, or until April 22, 2024 (the “Second Compliance Period”), to regain compliance. Compliance can be achieved automatically and without further action if the closing bid price of the Company’s stock remains at or above $1.00 for a minimum of 10 consecutive business days at any time during the Second Compliance Period, in which case Nasdaq will notify the Company of its compliance and the matter will be closed. If, however, the Company does not achieve compliance with the Minimum Bid Price Requirement during the Second Compliance Period, Nasdaq will notify the Company that its common stock will be delisted subject to an opportunity for the Company to appeal. As of the date of this Annual Report, the Company had not yet regained compliance. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;font-weight:bold;text-indent:0pt;margin:0pt 0pt 12pt 0pt;">Liquidity Uncertainties</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">As of December 31, 2023, the Company had approximately $28.7 million in cash and cash equivalents as compared to $37.5 million at December 31, 2022. The Company expects that its current cash and cash equivalents, approximately $26.3 million as of the date of this Annual Report, will be sufficient to support its projected operating requirements and financial commitments for at least the next 12 months from this date. The operating requirements include the current development plans for Bryostatin-1, our novel drug candidate targeting the activation of Protein Kinase C Epsilon and other development projects. The financial commitments include the potential redemption of the Series B Convertible Preferred Stock for cash.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">The Company expects to need additional capital in order to initiate and pursue potential additional development projects, including the continuing development beyond the ongoing Phase 2 trial of Bryostatin-1. Any additional equity financing, if available, may not be on favorable terms and would likely be significantly dilutive to the Company’s current stockholders, and debt financing, if available, may involve restrictive covenants. If the Company is able to access funds through collaborative or licensing arrangements, it may be required to relinquish rights to some of its technologies or product candidates that the Company would otherwise seek to develop or commercialize on its own, on terms that are not favorable to the Company. The Company’s ability to access capital when needed is not assured and, if not achieved on a timely basis, will likely have a materially adverse effect on our business, financial condition and results of operations.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;font-weight:bold;text-indent:0pt;margin:0pt 0pt 12pt 0pt;">Other Risks and Uncertainties</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">The Company operates in an industry that is subject to rapid technological change, intense competition, and significant government regulation. The Company’s operations are subject to significant risk and uncertainties including financial, operational, technological, regulatory, and other risk. Such factors include, but are not necessarily limited to, the results of clinical testing and trial activities, the ability to obtain regulatory approval, the limited supply of raw materials, the ability to obtain favorable licensing, manufacturing, or other agreements, including risk associated with our CRE licensing agreement, and the ability to raise capital to achieve strategic objectives.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">CRE has entered into a material transfer agreement with the National Cancer Institute of the National Institutes of Health (“NCI”), pursuant to which the NCI has agreed to supply bryostatin required for the Company’s pre-clinical research and clinical trials. This agreement does not provide for a sufficient amount of bryostatin to support the completion of all the clinical trials that the Company is required to conduct in order to seek U.S. Food and Drug Administration (“FDA”) approval. Therefore, CRE or the Company would have to enter into one or more subsequent agreements with the NCI for the supply of additional amounts of bryostatin. If CRE or the Company were unable to secure such additional agreements, or if the NCI otherwise discontinues the supply, the Company will have to either secure another source of bryostatin or discontinue its efforts to develop and commercialize Bryostatin-1 for the treatment of AD. In June 2020, the Company entered into a supply agreement (the “Supply Agreement”) with BryoLogyx Inc. (“BryoLogyx”), pursuant to which BryoLogyx agreed to be the Company’s exclusive supplier of synthetic bryostatin. Pursuant to the terms of the Supply Agreement, the Company received its initial order of one gram of synthetic bryostatin. See Note 3.</p>
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;margin:0pt 0pt 12pt 0pt;"><b style="font-style:normal;font-weight:bold;text-decoration-color:#000000;text-decoration-line:none;">Use of Estimates:</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">The preparation of financial statements in conformity with US GAAP requires management to make significant estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such these estimates may ultimately differ from actual results.</p>
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65000
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
7179919
CY2023Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
7179919
CY2023Q4 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1
11.79
CY2023 snpx Warrants And Rights Outstanding Remaining Term
WarrantsAndRightsOutstandingRemainingTerm
P2Y8M12D
CY2023Q4 snpx Intrinsic Value Of Warrants
IntrinsicValueOfWarrants
37000
CY2022 us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
553150
CY2023 snpx Number Of Warrant Holders Who Exercised Warrants
NumberOfWarrantHoldersWhoExercisedWarrants
0

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