What changed in this filing

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Item 1. Financial Statements

2023-08-21 compared with 2023-05-22 · 88 added, 74 removed, 147 unchanged (52% of the section changed)

1 unchanged sentence

LIFESCIENCES, INC.

CONSOLIDATED BALANCE

OF MARCH 31, 2023 AND DECEMBER 31, 2022 (UNAUDITED)

December 31, 2022

BALANCE SHEETS

OF JUNE 30, 2023 AND DECEMBER 31, 2022 (UNAUDITED)

Current assets

5 unchanged sentences

Unreimbursed expenses

Total current liabilities

Total liabilities

current liabilities

Stockholders’ equity

1 unchanged sentence

100,000,000 shares authorized;

12,848,165 shares issued and outstanding as of March 31, 2023 and December 31, 2022

shares issued and outstanding as of June 30, 2023 and December 31, 2022

Additional paid-in capital

2 unchanged sentences

( 41,472,766 )

Total stockholders’ equity

Total liabilities and stockholders’ equity

stockholders’ equity

liabilities and stockholders’ equity

accompanying notes to unaudited financial statements.

LIFESCIENCES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022 (UNAUDITED)

Three Months Ended March 31,

STATEMENTS OF OPERATIONS

THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)

Months Ended June 30,

Operating expenses

1 unchanged sentence

General and administrative

Total operating expenses

operating expenses

Loss from operations

1 unchanged sentence

( 3,988,908 )

( 2,762,510 )

Interest Income

1 unchanged sentence

$ ( 746,073 )

$ ( 3,753,275 )

$ ( 2,715,701 )

Per share information:

Net loss per common share, basic and diluted

Weighted average common shares outstanding, basic and diluted

Weighted average common shares outstanding,

basic and diluted

accompanying notes to unaudited financial statements.

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022 (UNAUDITED)

THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)

Stockholders’

3 unchanged sentences

Stock-based compensation

Repurchase of common stock via stock buy back program, net of costs

Repurchase of common stock via stock buy back

program, net of costs

( 5,513,441 )

4 unchanged sentences

$ ( 35,617,157 )

Balances, December 31, 2022

Stock-based compensation

Repurchase of common

stock via stock buy back program, net of costs

( 2,022,255 )

( 2,022,505 )

Balances, June 30, 2022

$ ( 36,363,230 )

Balances, December 31, 2022

$ ( 41,472,766 )

Stock-based compensation

4 unchanged sentences

$ ( 43,597,668 )

Stock-based compensation

Balances, June 30, 2023

$ ( 45,226,041 )

accompanying notes to unaudited financial statements.

1 unchanged sentence

STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022 (UNAUDITED)

Three Months Ended

THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)

Months Ended June 30,

Operating activities:

1 unchanged sentence

$ ( 2,715,701 )

Adjustments required to reconcile net loss to net cash used in operating activities:

Adjustments required to reconcile net loss

to net cash used in operating activities:

Stock-based compensation

Changes in operating assets and liabilities:

Unreimbursed expenses (accrued)

Net cash used in operating activities

Accounts Payable

Unreimbursed expenses

Net cash used in operating

( 2,523,784 )

1 unchanged sentence

Financing activities:

Repurchase of common stock via stock buy back program, net of costs

Repurchase of common

stock via stock buy back program, net of costs

( 7,536,216 )

Net cash provided by (used in) financing activities

Net cash provided by

(used in) financing activities

( 7,536,216 )

40 unchanged sentences

The month-to-month sub-lease is from a related party and the underlying lease expires in May of 2024.

right of use asset and liability is deemed to be nominal as of March 31, 2023 and December 31, 2022.

right of use asset and liability is deemed to be nominal as of June 30, 2023 and December 31, 2022.

and Diluted Loss per Share

of March 31, 2023 and 2022, the Company had common stock equivalents related to warrants outstanding to acquire 20,174 shares of the

Company’s common stock.

following table sets forth the computation of basic and diluted net loss per common share for the periods indicated:

Schedule of Basic and Diluted Net Loss Per Common Share

Three Months Ended

Basic and diluted net loss per share calculation:

Net loss, basic

( 2,124,902 )

( 1,969,628 )

Change in fair value of warrants

Net loss, diluted

( 2,124,902 )

( 1,969,628 )

Weighted average common shares outstanding, basic and diluted

Net loss per common share, basic and diluted

computed by dividing net loss (numerator) by the weighted average number of common shares outstanding (denominator) during the period.

Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method.

EPS excludes all dilutive potential shares if their effect is antidilutive.

During periods of net loss, all common stock equivalents related

to options and warrants outstanding of 20,174 as of June 30, 2023 and 2022 are excluded from the diluted EPS calculation because they

are antidilutive.

Adopted Accounting Pronouncements

In June 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-13, “Financial Instruments

- Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”).

ASU 2016-13 requires

companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader

range of reasonable and supportable information to inform credit loss estimates.

ASU 2016-13 is effective for fiscal years beginning

after December 15, 2022, including interim periods within those fiscal years.

The Company adopted ASU 2016-13 effective January 1, 2023.

The Company determined that the update applied to trade receivables, but that there was no material impact to the consolidated financial

statements from the adoption of ASU 2016-13.

Related Party Transactions

expenses have been accrued and incurred by management, which total $ 14,730 as of March 31, 2023 and $ 42,060 as of December 31, 2022.

expenses have been accrued and incurred by management, which total $ 1,083

as of June 30, 2023 and $ 42,060 as of December 31, 2022.

Commitments and Contingencies

11 unchanged sentences

for the Company’s clinical trials.

payable includes accrued interest obligations to HJF which total $ 220,845 as of March 31, 2023 and December 31, 2022.

payable includes accrued interest obligations to HJF which total $ 220,845 as of June 30, 2023 and December 31, 2022.

time to time, the Company may be involved in disputes, including litigation, relating to claims arising out of operations in the normal

11 unchanged sentences

Stockholders’ Equity

As of March 31, 2023, 893,181

shares of the 908,362

shares of the common stock grant, which includes an additional grant of 120

shares issued during the vesting period due to rounding up of fractional shares, had vested at approximately $ 2,009,657

value and 15,181

shares remain unvested and unrecognized at approximately $ 34,157

There were no shares vested during the three

months ended March 31, 2023.

On January 23, 2022,

the Board of Directors authorized the Company’s management to implement a stock repurchase program for up to $ 10

million of the Company’s common stock at any time.

The term of the Board of Directors authorization of the repurchase program

is until March 31, 2023.

The repurchase program may be suspended or discontinued at any time and will be funded using the

Company’s working capital.

As of March 31, 2023, approximately 519,828

shares of the Company’s common stock has been repurchased and cancelled at an aggregate purchase price, including all

transactions costs, of approximately $ 7,536,216 .

There were no shares repurchased during the three months ended March 31, 2023.

As of March 31, 2022, approximately 269,828

shares of the Company’s common stock had been repurchased and cancelled at an aggregate purchase price, including all

transactions costs, of approximately $ 5,513,711 .

of June 30, 2023, 893,181 shares of the 908,362 shares of the common stock grant, which includes an additional grant of 120 shares issued

during the vesting period due to rounding up of fractional shares, had vested at approximately $ 2,009,657 value and 15,181 shares remain

unvested and unrecognized at approximately $ 34,157 value.

There were no shares vested during the six months ended June 30, 2023.

January 23, 2022, the Board of Directors authorized the Company’s management to implement a stock repurchase program for up to

million of the Company’s common stock at

The term of the Board of Directors authorization of the repurchase program ended on March 31, 2023.

The repurchase program

may be suspended or discontinued at any time and will be funded using the Company’s working capital.

As of June 30, 2023 and 2022,

approximately 519,828

shares of the Company’s common stock has

been repurchased and cancelled at an aggregate purchase price, including all transactions costs, of approximately $ 7,536,216 .

There were no shares

repurchased during the six months ended June 30, 2023 .

January 23, 2022, the Board of Directors extended the lock-up of the shares owned by the Company’s directors, officers, and existing

6 unchanged sentences

will not be able to sell their shares of the Company’s common stock unless otherwise modified by the Board of Directors .

March 31, 2023, outstanding warrants to purchase shares of common stock accounted for as equity or liabilities were as follows with an

aggregate intrinsic value as of March 31, 2023 of $ 133,199 based on the March 31, 2023 closing share price of $ 13.79 :

June 30, 2023, outstanding warrants to purchase shares of common stock were as follows with an

aggregate intrinsic value as of June 30, 2023 of $ 49,678 based on the June 30, 2023 closing share price of $ 9.65 :

Schedule of Outstanding Warrants

4 unchanged sentences

cash within the first six months of the period in which they are exercisable.

On June 22, 2022, prior to the close of the Nasdaq

market, 1,498,128 shares of common stock were granted to employees, consultants, and directors issuable upon exercise of outstanding stock

options under the Company’s 2019 Equity Incentive Plan at an exercise price of $ 7.63 per share, which was the most recent prior

closing share price on June 21, 2022.

The options had a fair value on the grant date of $ 9,512,356 , based on a risk-free rate of 3.2 %

and an annualized volatility of 106 %, of which $ 1,843,018 was expensed through March 31, 2023 and $ 7,669,338 will be expensed in the future

if and as vesting occurs.

Vesting will be based on time of service over a four year period and certain additional performance milestones

for senior management, primarily related to the Phase III clinical trial.

June 22, 2022, prior to the close of the Nasdaq market, 1,498,128 shares of common stock were granted to employees, consultants, and

directors issuable upon exercise of outstanding stock options under the Company’s 2019 Equity Incentive Plan at an exercise price

of $ 7.63 per share, which was the most recent prior closing share price on June 21, 2022.

The options had a fair value on the grant date

of $ 9,512,356 , based on a risk-free rate of 3.2 % and an annualized volatility of 106 %, of which $ 2,437,540 was expensed through June

30, 2023 and $ 7,074,816 will be expensed in the future if and as vesting occurs.

Vesting will be based on time of service over a four

year period and certain additional performance milestones for senior management, primarily related to the Phase III clinical trial.

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