2023 Q1 Form 10-K Financial Statement

#000138713123003377 Filed on March 13, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit $0.00 $0.00
YoY Change
Gross Profit Margin
Selling, General & Admin $7.391M $8.054M $30.22M
YoY Change -7.77% 12.13% 28.72%
% of Gross Profit
Research & Development $26.51M $24.67M $81.88M
YoY Change 43.91% 10.67% 18.94%
% of Gross Profit
Depreciation & Amortization $893.0K $836.0K $1.253M
YoY Change 1317.46% 2996.3% 2406.0%
% of Gross Profit
Operating Expenses $26.51M $32.73M $81.88M
YoY Change 0.28% 11.02% -11.31%
Operating Profit -$33.90M -$112.1M
YoY Change 28.24% 21.43%
Interest Expense $897.0K $1.048M $1.873M
YoY Change 4621.05% -1516.22% 7392.0%
% of Operating Profit
Other Income/Expense, Net $897.0K
YoY Change
Pretax Income -$33.01M -$31.68M -$21.74M
YoY Change 24.94% 7.2% -76.44%
Income Tax
% Of Pretax Income
Net Earnings -$33.01M -$34.08M -$110.2M
YoY Change 24.94% 15.33% 19.43%
Net Earnings / Revenue
Basic Earnings Per Share -$0.52 -$3.27
Diluted Earnings Per Share -$0.52 -$0.55 -$3.27
COMMON SHARES
Basic Shares Outstanding 62.54M shares 57.54M shares 35.74M shares
Diluted Shares Outstanding 63.35M shares 35.74M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $71.98M $120.2M $120.2M
YoY Change -48.75% -32.71% -32.71%
Cash & Equivalents $71.98M $120.2M $120.2M
Short-Term Investments
Other Short-Term Assets $11.75M $10.55M $10.55M
YoY Change -6.4% 1.53% 1.53%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $83.73M $130.8M $130.8M
YoY Change -45.27% -30.82% -30.82%
LONG-TERM ASSETS
Property, Plant & Equipment $93.99M $93.81M $94.53M
YoY Change 33.61% 85.56% 83.65%
Goodwill
YoY Change
Intangibles $120.0K
YoY Change
Long-Term Investments
YoY Change
Other Assets $385.0K $384.0K $384.0K
YoY Change 1.58% 1.32% 48.26%
Total Long-Term Assets $95.36M $94.91M $94.91M
YoY Change 34.83% 83.05% 83.05%
TOTAL ASSETS
Total Short-Term Assets $83.73M $130.8M $130.8M
Total Long-Term Assets $95.36M $94.91M $94.91M
Total Assets $179.1M $225.7M $225.7M
YoY Change -19.95% -6.31% -6.31%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.016M $8.068M $8.068M
YoY Change -14.7% -39.26% -39.26%
Accrued Expenses $5.057M $10.11M $6.180M
YoY Change -15.11% 19.9% 25.38%
Deferred Revenue $3.273M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $13.07M $18.18M $18.18M
YoY Change -14.86% -16.28% -16.28%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $588.0K $328.0K $328.0K
YoY Change 45.19% -29.76% -29.76%
Total Long-Term Liabilities $588.0K $328.0K $328.0K
YoY Change 45.19% -29.76% -29.76%
TOTAL LIABILITIES
Total Short-Term Liabilities $13.07M $18.18M $18.18M
Total Long-Term Liabilities $588.0K $328.0K $328.0K
Total Liabilities $13.66M $18.51M $18.51M
YoY Change -13.31% -16.57% -16.57%
SHAREHOLDERS EQUITY
Retained Earnings -$517.0M -$470.0M
YoY Change 33.85% 30.63%
Common Stock $682.6M $677.4M
YoY Change 17.07%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $165.4M $207.2M $207.2M
YoY Change
Total Liabilities & Shareholders Equity $179.1M $225.7M $225.7M
YoY Change -19.95% -6.31% -6.31%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$33.01M -$34.08M -$110.2M
YoY Change 24.94% 15.33% 19.43%
Depreciation, Depletion And Amortization $893.0K $836.0K $1.253M
YoY Change 1317.46% 2996.3% 2406.0%
Cash From Operating Activities -$32.91M -$22.30M -$98.05M
YoY Change 6.01% -0.64% 29.77%
INVESTING ACTIVITIES
Capital Expenditures $3.799M $4.671M $48.15M
YoY Change -118.79% -118.23% -236.37%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$3.799M -$4.671M -$48.15M
YoY Change -81.21% -81.77% 36.37%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $94.46M
YoY Change -55.54%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$11.50M 7.229M $87.84M
YoY Change -188.03% -83.48% -58.66%
NET CHANGE
Cash From Operating Activities -$32.91M -22.30M -$98.05M
Cash From Investing Activities -$3.799M -4.671M -$48.15M
Cash From Financing Activities -$11.50M 7.229M $87.84M
Net Change In Cash -$48.25M -19.74M -$58.43M
YoY Change 26.32% 359.14% -157.5%
FREE CASH FLOW
Cash From Operating Activities -$32.91M -$22.30M -$98.05M
Capital Expenditures $3.799M $4.671M $48.15M
Free Cash Flow -$36.71M -$26.97M -$146.2M
YoY Change 239.0% -948.98% 263.23%

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CY2021 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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120470000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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178900000 usd
CY2022 us-gaap Capital Expenditures Incurred But Not Yet Paid
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3092000 usd
CY2021 us-gaap Capital Expenditures Incurred But Not Yet Paid
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CY2022 us-gaap Nature Of Operations
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<p id="xdx_80A_eus-gaap--NatureOfOperations_zlvvG1OMgiy4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 1 – <span id="xdx_821_zacOZmUYMm59">BUSINESS</span></b></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; text-indent: 0.5in">Tonix Pharmaceuticals Holding Corp., through its wholly owned subsidiary Tonix Pharmaceuticals, Inc. (“Tonix Sub”), is a clinical-stage biopharmaceutical company focused on discovering, licensing, acquiring and developing therapeutics and vaccines to treat and prevent human disease and alleviate suffering. The therapeutics include both small molecules and biologics. All drug product and vaccine candidates are still in development and none are approved or marketed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The consolidated financial statements include the accounts of Tonix Pharmaceuticals Holding Corp. and its wholly owned subsidiaries, Tonix Sub, Krele LLC, Tonix Pharmaceuticals (Canada), Inc., Tonix Medicines, Inc., Jenner LLC, Tonix R&amp;D Center LLC, Tonix Pharma Holdings Limited and Tonix Pharma Limited (collectively hereafter referred to as the “Company” or “Tonix”). All intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Going Concern</span></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; text-indent: 0.5in">The accompanying financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company has suffered recurring losses from operations and negative cash flows from operating activities. At December 31, 2022, the Company had working capital of approximately $<span id="xdx_909_ecustom--WorkingCapital_iI_pn5n6_c20221231_zMAchNvNO0be" title="Working capital">112.6</span> million. At December 31, 2022, the Company had an accumulated deficit of approximately $<span id="xdx_907_eus-gaap--RetainedEarningsAccumulatedDeficit_iI_pn3n3_dxL_c20221231_zFcvc05qocU6" title="Accumulated deficit::XDX::-470038"><span style="-sec-ix-hidden: xdx2ixbrl0523">470.0 million</span></span>. The Company held cash and cash equivalents of approximately $<span id="xdx_902_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_pn3n3_dxL_c20221231_ziIbKtPDeCDk" title="Cash and cash equivalents::XDX::120229"><span style="-sec-ix-hidden: xdx2ixbrl0525">120.2 million</span></span> as of December 31, 2022.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company believes that its cash resources at December 31, 2022 and the proceeds that it raised from equity offerings in the first quarter of 2023, net of amounts paid to repurchase shares in the first quarter of 2023 (See Note 22), will meet its operating and capital expenditure requirements into the fourth quarter of 2023, but not beyond.  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company faces significant challenges and uncertainties and, as a result, its available capital resources may be consumed more rapidly than currently expected due to changes it may make in its research and development spending plans. The Company believes that it has the ability to obtain additional funding through public and private financing and collaborative arrangements with strategic partners to increase the funds available to fund operations. However, the Company may not be able to raise capital on terms acceptable to the Company. Without additional funds, it may be forced to delay, scale back or eliminate some of its research and development activities, or other operations and potentially delay product development in an effort to provide sufficient funds to continue operations. If any of these events occurs, the Company’s ability to achieve its development and commercialization goals would be adversely affected. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p>
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<p id="xdx_847_eus-gaap--ConcentrationRiskCreditRisk_z85bylyw235c" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Risks and uncertainties</span></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; text-indent: 0.5in">The Company’s primary efforts are devoted to conducting research and development of innovative pharmaceutical and biological products to address public health challenges. The Company has experienced net losses and negative cash flows from operations since inception and expects these conditions to continue for the foreseeable future. Further, the Company does not have any commercial products available for sale and has not generated revenues, and there is no assurance that if its products are approved for sale, that the Company will be able to generate cash flow to fund operations. In addition, there can be no assurance that the Company’s research and development will be successfully completed or that any product will be approved or commercially viable. Moreover, the extent to which COVID-19 impacts the Company’s operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence at this time.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
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<p id="xdx_847_eus-gaap--UseOfEstimates_zycH3ZaWPaDg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline">Use of estimates</span></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; text-indent: 0.5in">The preparation of financial statements in accordance with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the assumptions used in the fair value of stock-based compensation and other equity instruments, and the percent of completion of research and development contracts.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
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CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
21642000 usd
CY2021Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
13297000 usd
CY2022Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost
7353000 usd
CY2021Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost
5832000 usd
CY2022Q4 us-gaap Deferred Tax Assets Other
DeferredTaxAssetsOther
1997000 usd
CY2021Q4 us-gaap Deferred Tax Assets Other
DeferredTaxAssetsOther
2285000 usd
CY2022Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
30992000 usd
CY2021Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
21414000 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
30992000 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
21414000 usd
CY2022 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
9500000 usd
CY2021 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
15300000 usd
CY2022 dei Auditor Name
AuditorName
EisnerAmper LLP

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