What changed in this filing

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Item 1. Financial Statements

2023-08-08 compared with 2023-05-09 · 160 added, 188 removed, 331 unchanged (51% of the section changed)

2 unchanged sentences

Condensed Interim Consolidated Financial Statements

March 31, 2023

June 30, 2023

Life Sciences Corp.

Interim Consolidated Balance Sheets

at March 31, 2023 and September 30, 2022

September 30,

Cash and cash equivalents

Consolidated Balance Sheets

at June 30, 2023 and September 30, 2022

and cash equivalents

$ 154,817,164

$ 149,157,861

Incentive and tax receivables

Prepaid expenses and other current assets

and tax receivables

expenses and other current assets

$ 157,809,863

$ 152,704,603

Liabilities and Stockholders' Equity

Current Liabilities

Accounts payable

Accrued liabilities - Note 4

Deferred grant income - Note 3

Total Liabilities

Commitments and Contingencies - Note 6

Capital stock

and Stockholders' Equity

liabilities - Note 4

grant income - Note 3

and Contingencies - Note 6

preferred stock, par value $ 0.001 per share

common stock, par value $ 0.001 per share

Issued and outstanding:

and outstanding:

common shares (September 30, 2022 - 77,942,815 )

Additional paid-in capital

Accumulated deficit

paid-in capital

( 282,922,756 )

( 245,563,783 )

Total Stockholders' Equity

Total Liabilities and Stockholders' Equity

Stockholders' Equity

Liabilities and Stockholders' Equity

$ 157,809,863

2 unchanged sentences

Life Sciences Corp.

Interim Consolidated Statements of Operations

the three and six months ended March 31, 2023 and 2022

Three months ended March 31,

Six months ended March 31,

Interim Consolidated Statements of Operations and Comprehensive Loss

the three and nine months ended June 30, 2023 and 2022

months ended June 30,

and administrative

and development

operating expenses

General and administrative

Research and development

Total operating expenses

Operating loss

( 13,530,697 )

2 unchanged sentences

( 35,701,857 )

Other income (expenses)

Research and development incentive income

Interest income, net

Other financing expense

Foreign exchange (loss) gain

Total other income, net

Net loss before provision for income taxes

income (expenses)

and development incentive income

financing expense

exchange (loss) gain

other income, net

loss before provision for income taxes

( 11,238,976 )

2 unchanged sentences

( 33,539,318 )

Income tax expense, current

Net loss and comprehensive loss

tax expense, current

loss and comprehensive loss

$ ( 11,279,976 )

2 unchanged sentences

$ ( 33,687,519 )

Net Loss per share

Basic and diluted

Weighted average number of shares outstanding

Basic and diluted

Accompanying Notes to Condensed Interim Consolidated Financial Statements

Loss per share

average number of shares outstanding

See Accompanying Notes to Condensed Interim Consolidated

Financial Statements

Life Sciences Corp.

Interim Consolidated Statements of Changes in Stockholders' Equity

the three months ended March 31, 2023 and 2022

Additional Paid-in Capital

Share proceeds Receivable

Accumulated Deficit

Balance, January 1, 2023

the three months ended June 30, 2023 and 2022

April 1, 2023

$ 416,727,598

1 unchanged sentence

$ 145,165,054

Shares issued under 2023 purchase agreement

Initial Commitment shares

Purchase shares

Commitment shares

Shares issued upon exercise of stock options

Share based compensation

issued under 2023 purchase agreement

issued pursuant to exercise of stock options

based compensation

( 11,279,976 )

Balance, March 31, 2023

June 30, 2023

$ 429,595,961

1 unchanged sentence

$ 146,754,596

Balance, January 1, 2022

April 1, 2022

$ 371,437,616

1 unchanged sentence

$ ( 218,906,042 )

Shares issued upon exercise of stock options

Shares issued under Sales Agreement

share issue costs

Stock based compensation

$ 152,205,041

issued under Sales Agreement

share issue costs

issued pursuant to exercise of stock options

based compensation

( 12,367,341 )

Balance, March 31, 2022

( 12,367,341 )

June 30, 2022

$ 381,932,039

1 unchanged sentence

$ 150,736,600

Accompanying Notes to Condensed Interim Consolidated Financial Statements

See Accompanying Notes to Condensed Interim Consolidated Financial

Life Sciences Corp.

Interim Consolidated Statements of Changes in Stockholders' Equity

the six months ended March 31, 2023 and 2022

Additional Paid-in Capital

Share proceeds Receivable

Accumulated Deficit

Balance, October 1, 2022

the nine months ended June 30, 2023 and 2022

Paid-in Capital

October 1, 2022

$ 387,976,881

1 unchanged sentence

$ 142,491,042

Shares issued under 2023 purchase agreement

Initial Commitment shares

Purchase shares

issued under 2023 purchase agreement

Commitment shares

Shares issued upon exercise of stock options

Share based compensation

issued pursuant to exercise of stock options

based compensation

( 37,358,973 )

Balance, March 31, 2023

June 30, 2023

$ 429,595,961

1 unchanged sentence

$ 146,754,596

Balance, October 1, 2021

October 1, 2021

$ 348,328,048

1 unchanged sentence

$ 150,818,104

Shares issued under Sales Agreement

issued under Sales Agreement

share issue costs

Shares issued upon exercise of stock options

Stock based compensation

( 21,320,178 )

issued upon exercise of stock options

based compensation

( 33,687,519 )

Balance, March 31, 2022

( 33,687,519 )

June 30, 2022

$ 381,932,039

1 unchanged sentence

$ 150,736,600

Accompanying Notes to Condensed Interim Consolidated Financial Statements

See Accompanying Notes to Condensed Interim Consolidated

Financial Statements

Life Sciences Corp.

Interim Consolidated Statements of Cash Flows

the six months ended March 31, 2023 and 2022

Cash Flows used in Operating Activities

$ ( 26,078,997 )

the nine months ended June 30, 2023 and 2022

Flows used in Operating Activities

$ ( 37,358,973 )

Adjustments to reconcile net loss to net cash used in operations:

Non-cash financing related charges

Stock-based compensation

Changes in working capital balances related to operations:

Incentive and tax receivables

$ ( 33,687,519 )

Prepaid expenses and deposits

Accounts payable

to reconcile net loss to net cash used in operations:

financing related charges

based compensation

in working capital balances related to operations:

and tax receivables

expenses and deposits

( 1,612,889 )

Accrued liabilities

Deferred grant income

Net cash used in operating activities

cash used in operating activities

( 21,935,371 )

( 20,193,929 )

Cash Flows provided by Financing Activities

Issuance of common shares

Share issue costs

Proceeds from exercise of stock options

Net cash provided by financing activities

Increase in cash and cash equivalents during the period

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Flows provided by Financing Activities

of common shares

from exercise of stock options

cash provided by financing activities

in cash and cash equivalents during the period

and cash equivalents, beginning of period

and cash equivalents, end of period

$ 154,817,164

$ 153,199,352

Supplemental Cash Flow Information

Cash paid for state and local minimum income taxes

Accompanying Notes to Condensed Interim Consolidated Financial Statements

Cash Flow Information

paid for state and local minimum income taxes

See Accompanying Notes to Condensed Interim Consolidated

Financial Statements

Life Sciences Corp.

to the Condensed Interim Consolidated Financial Statements

1 Business Description

Life Sciences Corp.

(“Anavex” or the “Company”) is a clinical stage biopharmaceutical company engaged in the

development of differentiated therapeutics by applying precision medicine to central nervous system (“CNS”) diseases with

high unmet need.

Anavex analyzes genomic data from clinical trials to identify biomarkers, which are used in the analysis of its clinical

trials for the treatment of neurodegenerative and neurodevelopmental diseases.

Company’s lead compound ANAVEX ® 2-73 is being developed to treat Alzheimer’s disease, Parkinson’s disease

and potentially other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic

disorder caused by mutations in the X-linked gene, methyl-CpG-binding protein 2 (“MECP2”), and Fragile X syndrome.

Note 1 Business Description

Anavex Life Sciences Corp.

the “Company”) is a clinical stage biopharmaceutical company engaged in the development of differentiated therapeutics by

applying precision medicine to central nervous system (“CNS”) diseases with high unmet need.

Anavex analyzes genomic data

from clinical trials to identify biomarkers, which are used in the analysis of its clinical trials for the treatment of neurodegenerative

and neurodevelopmental diseases.

The Company’s lead compound ANAVEX ® 2-73

is being developed to treat Alzheimer’s disease, Parkinson’s disease and potentially other central nervous system diseases,

including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder caused by mutations in the X-linked gene,

methyl-CpG-binding protein 2 (“MECP2”).

Note 2 Basis of Presentation

Basis of Presentation

of Presentation

accompanying unaudited condensed interim consolidated financial statements have been prepared pursuant to the rules and regulations of

the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America

These accompanying unaudited condensed interim consolidated

financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”)

and accounting principles generally accepted in the United States of America (“U.S.

GAAP”) for interim reporting.

Accordingly, certain information and note disclosures normally included in the annual

financial statements in accordance with U.S.

GAAP have been condensed or omitted pursuant to such rules and regulations.

In the opinion

of management, the disclosures are adequate to make the information presented not misleading.

accompanying unaudited condensed interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments,

which in the opinion of management are necessary for fair presentation of the information contained herein.

The consolidated balance

sheet as of September 30, 2022 was derived from the audited annual financial statements but does not include all disclosures required

The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the audited

consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended September

30, 2022 filed with the SEC on November 28, 2022.

The Company follows the same accounting policies in the preparation of interim reports.

results for the three and six months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the

year ending September 30, 2023.

of the Company’s potential drug compounds are in the clinical development stage and the Company cannot be certain that its research

and development efforts will be successful or, if successful, that its potential drug compounds will ever be approved for sales to pharmaceutical

companies or generate commercial revenues.

certain information and note disclosures normally included in the annual financial statements in accordance with U.S.

GAAP have been condensed

or omitted pursuant to such rules and regulations.

In the opinion of management, the disclosures are adequate to make the information

presented not misleading.

These accompanying unaudited condensed interim consolidated

financial statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary

for fair presentation of the information contained herein.

The consolidated balance sheet as of September 30, 2022 was derived from the

audited annual financial statements but does not include all disclosures required by U.S.

The accompanying unaudited condensed interim

consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included

in the Company’s annual report on Form 10-K for the year ended September 30, 2022 filed with the SEC on November 28, 2022.

follows the same accounting policies in the preparation of interim reports.

Operating results for the three and nine months ended

June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023.

All of the Company’s potential drug compounds

are in the clinical development stage and the Company cannot be certain that its research and development efforts will be successful or,

if successful, that its potential drug compounds will ever be approved for sales to pharmaceutical companies or generate commercial revenues.

To date, we have not generated any revenues from our operations.

The Company expects the business

to continue to experience negative cash flows from operations for the foreseeable future and cannot predict when, if ever, our business

might become profitable.

The Company expects the business to continue to experience negative cash

flows from operations for the foreseeable future and cannot predict when, if ever, our business might become profitable.

Life Sciences Corp.

51 unchanged sentences

value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities.

At March 31, 2023 and September 30, 2022, the Company

At June 30, 2023 and September 30, 2022, the Company

did not have any Level 3 assets or liabilities.

8 unchanged sentences

net loss per share because their effect would be anti-dilutive.

As of March 31, 2023 loss per share excludes 15,001,613

(March 31, 2022:

As of June 30, 2023 loss per share excludes 14,858,863

(June 30, 2022:

13,194,616 ) potentially dilutive common shares related to outstanding options and warrants, as their effect was anti-dilutive.

10 unchanged sentences

Note 3 Other Income

As of March 31, 2023, the

As of June 30, 2023, the

Company had received $ 995,862 in a research grant awarded by the Michael J.

2 unchanged sentences

be used to fund a clinical trial of the Company’s lead compound, ANAVEX ® 2-73 related to Parkinson’s disease.

Of the total, $ 497,931 was received during the six months ended March 31, 2023, and $ 497,931 was received during the year ended September

Of the total, $ 497,931 was received during the nine months ended June 30, 2023, and $ 497,931 was received during the year ended September

Life Sciences Corp.

2 unchanged sentences

to deferred grant income when received and is being amortized to grant income as the related research and development expenditures are

During the three and six months ended March 31, 2023, the Company recognized $ 0 and $ 25,000 , respectively (2022:

During the three and nine months ended June 30, 2023, the Company recognized $ 0 and $ 25,000 , respectively (2022:

$ 0 and $ 0 ,

respectively) of this grant on its statements of operations as grant income.

At March 31, 2023, an amount of $ 916,763 (September 30, 2022:

At June 30, 2023, an amount of $ 916,763 (September 30, 2022:

$ 443,831 ) of this grant is recorded as deferred grant income, representing the amount of this grant which has not yet been amortized to

6 unchanged sentences

“Tax Incentive Credit”).

During the three and six

months ended March 31, 2023, the Company recorded research and development incentive income of $ 749,681 (AUD 1,099,134 ) and $ 1,483,271

(AUD 2,215,753 ), respectively (2022:

835,513 (AUD 1,146,955 ) and $ 1,646,243 (AUD 2,263,317 ), respectively) in respect of the Tax Incentive

Credit for eligible research and development expenses incurred during the period.

During the three and nine

months ended June 30, 2023, the Company recorded research and development incentive income of $ 564,842 (AUD 852,862 ) and $ 2,048,113 (AUD

3,068,615 ), respectively (2022:

$ 682,432 (AUD 954,986 ) and $ 2,328,675 (AUD 3,218,303 ), respectively) in respect of the Tax Incentive Credit

for eligible research and development expenses incurred during the period.

Company evaluates its eligibility under the tax incentive program as of each balance sheet date based on the most current and relevant

40 unchanged sentences

to provide the Sales Agents with customary indemnification and contribution rights.

During the six months ended March 31, 2023, no shares

During the nine months ended June 30, 2023, no shares

were sold pursuant to the Offering.

During the six months ended March 31, 2022, 1,066,389 shares were sold for gross proceeds of $ 14,803,464

During the nine months ended June 30, 2022, 1,623,566 shares were sold for gross proceeds of $ 20,982,148

(net proceeds of $ 20,258,981 ).

At March 31, 2023, an amount of $ 142,407,882 (September 30, 2022:

At June 30, 2023, an amount of $ 142,407,882 (September 30, 2022:

$ 142,407,882 ) was registered pursuant

2 unchanged sentences

On February 3, 2023, the Company entered into a $150,000,000

purchase agreement (the “Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to

which the Company has the right to sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $ 150,000,000 in value

of its shares of common stock from time to time over a three-year period until February 3, 2026.

purchase agreement (the “2023 Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant

to which the Company has the right to sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $ 150,000,000 in

value of its shares of common stock from time to time over a three-year period until February 3, 2026.

In consideration for entering into the Purchase Agreement,

7 unchanged sentences

These amounts were expensed to other financing expense on the statement

of operations during the three and six months ended March 31, 2023.

During the six months ended March 31, 2023, the Company

of operations during the nine months ended June 30, 2023.

During the nine months ended June 30, 2023, the Company

issued to Lincoln Park an aggregate of 3,138,348 (2022:

0 ) shares of common stock under the 2023 Purchase Agreement, including 3,125,000

0 ) shares of common stock for an aggregate purchase price of $ 18,152,500 (2022:

0 l) shares of common stock for aggregate proceeds of $ 26,687,017 (2022:

$ 0 ) and 13,348 (2022:

0 ) commitment

At March 31, 2023, an amount of $ 131,847,500 (September

$ 0 ) remained available under the 2023 Purchase Agreement.

As at June 30, 2023, an amount of $ 123,312,983 (September

N/A) remained available under the 2023 Purchase Agreement.

Life Sciences Corp.

2 unchanged sentences

During the three

and six months ended March 31, 2023, the Company incurred office lease expense of $ 30,070 and $ 60,140 , (2022:

and nine months ended June 30, 2023, the Company incurred office lease expense of $ 25,103 and $ 85,243 , (2022:

$ 21,015 and $ 42,348 ) respectively.

6 unchanged sentences

The 401(k) plan permits the Company to make additional matching contributions on behalf of contributing employees.

During the three and six months ended March 31, 2023, the Company made $ 56,230 and $ 99,876 (2022:

During the three and nine months ended June 30, 2023, the Company made $ 76,313 and $ 176,189 (2022:

$ 27,358 and $ 120,979 ), respectively,

8 unchanged sentences

Share Purchase Warrants

At March 31, 2023 and September 30, 2022, the Company

At June 30, 2023 and September 30, 2022, the Company

had 160,000 warrants outstanding at a weighted average exercise price of $ 3.72 as follows:

9 unchanged sentences

issue under the plan was 6,050,553 shares, subject to adjustment in the event of a change of the Company’s capitalization.

Life Sciences Corp.

to the Condensed Interim Consolidated Financial Statements

2019 Stock Option Plan

4 unchanged sentences

issue under the plan was 6,000,000 shares, subject to adjustment in the event of a change of the Company’s capitalization.

Life Sciences Corp.

to the Condensed Interim Consolidated Financial Statements

During the year ended September 30, 2022, 406,453

18 unchanged sentences

lesser periods as may be determined by the Board, subject to earlier termination in accordance with the terms of the 2022 Plan.

March 31, 2023, 3,916,000 options had been issued under the 2022 Plan and 6,557,952 options were available for issuance under the 2022

June 30, 2023, 3,912,000 options had been issued under the 2022 Plan and 6,599,452 options were available for issuance under the 2022

A summary of the status of Company’s outstanding

1 unchanged sentence

Schedule of outstanding stock purchase options

Number of Shares

Weighted Average Exercise Price

Weighted Average Grant Date Fair Value

Aggregate intrinsic value

Outstanding, September 30, 2021

Outstanding, September 30, 2022

Outstanding, March 31, 2023

Exercisable, March 31, 2023

Weighted Average

Grant Date Fair

Aggregate intrinsic

Exercise Price

The following summarizes information about stock options

at March 31, 2023 by a range of exercise prices:

at June 30, 2023 by a range of exercise prices:

Schedule Of Share-based Payment Arrangement, Option, Activity

Range of exercises prices

Number of Outstanding

Weighted average remaining contractual Me

Weighted average

Number of vested

Weighted average

Range of exercises prices

contractual life

exercise price

3 unchanged sentences

The weighted average grant date fair value of options

vested during the six months ended March 31, 2023 was $ 3.67 (2022:

At March 31, 2023, the weighted average contractual life of

vested during the nine months ended June 30, 2023 was $ 3.77 (2022:

At June 30, 2023, the weighted average contractual life of

options outstanding was 6.09 years (September 30, 2022:

2 unchanged sentences

difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options

that were in-the-money at March 31, 2023.

During the three and six months ended March 31, 2023,

that were in-the-money at June 30, 2023.

During the three and nine months ended June 30, 2023,

the Company recognized stock based compensation expense of $ 3,866,781 and $ 13,183,353 (2022:

4 unchanged sentences

Schedule of general and administrative expenses and research and development expenses

Three months ended March 31,

Six months end March 31,

Three months ended June 30,

Nine months ended June 30,

General and administrative

4 unchanged sentences

The fair value of each option award

granted during the three and six months ended March 31, 2023 and 2022 is estimated on the date of grant using the Black Scholes option

granted during the three and nine months ended June 30, 2023 and 2022 is estimated on the date of grant using the Black Scholes option

pricing model based on the following weighted average assumptions:

5 unchanged sentences

The fair value of stock compensation charges recognized

during the three and six months ended March 31, 2023 and 2022 was determined with reference to the quoted market price of the Company’s

during the three and nine months ended June 30, 2023 and 2022 was determined with reference to the quoted market price of the Company’s

shares on the grant date.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements