What changed in this filing

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Item 1. Financial Statements

2023-10-19 compared with 2023-08-21 · 86 added, 87 removed, 148 unchanged (54% of the section changed)

2 unchanged sentences

BALANCE SHEETS

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

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

September 30,

Current assets

5 unchanged sentences

Unreimbursed expenses

current liabilities

Total current liabilities

Total liabilities

Stockholders’ equity

1 unchanged sentence

100,000,000 shares authorized;

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

12,848,165 shares issued and outstanding as of September 30, 2023 and December 31, 2022

Additional paid-in capital

2 unchanged sentences

( 41,472,766 )

stockholders’ equity

liabilities and stockholders’ equity

Total stockholders’ equity

Total liabilities and stockholders’ equity

accompanying notes to unaudited financial statements.

1 unchanged sentence

STATEMENTS OF OPERATIONS

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

Months Ended June 30,

Operating expenses

Research and development

General and administrative

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 (UNAUDITED)

and development

and administrative

operating expenses

Loss from operations

( 1,747,826 )

( 3,988,908 )

( 2,762,510 )

Interest Income

$ ( 1,628,373 )

$ ( 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

from operations

share information:

loss per common share, basic and diluted

average common shares outstanding, basic and diluted

accompanying notes to unaudited financial statements.

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

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

THE NINE MONTHS ENDED SEPTEMBER 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 )

5 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

( 2,022,255 )

2 unchanged sentences

( 36,363,230 )

Stock-based compensation

( 2,319,024 )

Balances, September 30, 2022

$ ( 38,682,254 )

Balances, December 31, 2022

5 unchanged sentences

( 43,597,668 )

$ ( 43,597,668 )

Stock-based compensation

( 1,628,373 )

Balances, June 30, 2023

( 45,226,041 )

$ ( 45,226,041 )

Stock-based compensation

Balances, September 30, 2023

$ ( 47,617,830

accompanying notes to unaudited financial statements.

1 unchanged sentence

STATEMENTS OF CASH FLOWS

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

Months Ended June 30,

THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 (UNAUDITED)

Nine Months Ended

September 30,

Operating activities:

1 unchanged sentence

$ ( 5,034,725 )

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

1 unchanged sentence

Accounts payable

Unreimbursed expenses

Net cash used in operating

Unreimbursed expenses (accrued)

Net cash used in operating activities

( 4,324,407 )

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 )

6 unchanged sentences

LIFESCIENCES, INC.

NOTES TO FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Organization and Description of the Business

31 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 June 30, 2023 and December 31, 2022.

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

and Diluted Loss per Share

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

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

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.

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

During periods of net loss, all common stock equivalents

related to 1,498,128

options and 20,174

warrants outstanding as of September 30, 2023

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):

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.

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

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.

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 $ 66,385

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

as of September 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 June 30, 2023 and December 31, 2022.

payable includes accrued interest obligations to HJF which total $ 220,845 as of September 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

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.

of September 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 $ 34,157 value.

There were no shares vested during the nine months ended September 30,

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 .

$ 10 million of the Company’s common stock at any time.

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 September 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 nine months ended September 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 .

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 :

September 30, 2023, outstanding warrants to purchase shares of common stock were as follows with an aggregate intrinsic value as of September

30, 2023 of $ 33,338 based on the September 29, 2023 closing share price of $ 8.84 :

Schedule of Outstanding Warrants

Shares Underlying

warrants are exercisable at any time and from time to time, in whole or in part, during a period commencing March 24, 2021 and expiring

September 24, 2025 .

The exercise price of the warrants is $ 7.1875 per share or $ 6.9718 per share if the warrants are exercised for

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

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.

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 $ 3,032,062 was

expensed through September 30, 2023 and $ 6,480,294

will be expensed in the future if and as vesting

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.

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