What changed in this filing

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Item 1. Financial Statements

2022-08-03 compared with 2022-04-29 · 111 added, 77 removed, 144 unchanged (57% of the section changed)

2 unchanged sentences

BALANCE SHEETS

(In thousands except par values, unless

otherwise indicated)

(In thousands except par values, unless otherwise indicated)

Current Assets:

Cash and cash equivalents

Short-term investments

Accrued interest receivable

Prepaid expenses and other current assets

2 unchanged sentences

Operating lease right-of-use assets, net

Long-term investments

Security deposits and other assets

11 unchanged sentences

no shares issued or outstanding

Common stock, par value $ 0.00001 ,

250,000 shares authorized,

9,470 shares issued and outstanding

as of March 31, 2022 and December 31, 2021

Common stock, par value $ 0.00001 , 250,000 shares authorized, 9,470 shares issued and outstanding as of June 30, 2022 and December 31, 2021

Additional paid-in capital

6 unchanged sentences

For the Three Months Ended

For the Six Months Ended

(In thousands, except per share data)

3 unchanged sentences

Loss from Operations

Other Income:

Interest income, net

Other (Income) Expense:

Interest (income) expense, net

Unrealized loss from investments

Other expense

Total Other Income

Total Other (Income) Expense

Net Loss Per Basic and Diluted Common Share:

4 unchanged sentences

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIENCY)

(In thousands, unless otherwise indicated)

thousands, unless otherwise indicated)

Additional Paid-in

Stockholders’

Balance at January 1, 2022

Common stock issued in public offering

Common stock issued in public offering, shares

Common stock issued for exercise of warrants

Common stock issued for exercise of warrants, shares

Fair Value of Warrants Issued

Shared-Based Compensation

Balance at March 31, 2022

Stockholders’

Shared-Based Compensation

Fair value of warrants issued

Balance at June 30, 2022

Additional Paid-in

Total Stockholders’

Balance at January 1, 2021

4 unchanged sentences

Balance at March 31, 2021

Share-Based Compensation

Shares issued in satisfaction of trade payable

Balance at June 30, 2021

Notes to these Unaudited Condensed Financial Statements

1 unchanged sentence

STATEMENTS OF CASH FLOWS

(In thousands, unless otherwise indicated)

For the Three Months Ended

thousands, unless otherwise indicated)

For the Six Months Ended

Cash Flows from Operating Activities

1 unchanged sentence

Share-based compensation

Issuance of warrants for services

Depreciation and amortization

1 unchanged sentence

Deposit applied to consulting services

Unrealized loss from investments

Changes in operating assets and liabilities:

Prepaid expenses and other current assets

Accrued interest receivable

Security deposit and other assets

Accounts payable

5 unchanged sentences

Purchase of property and equipment

Purchases of investments

Net Cash Used in Investing Activities

6 unchanged sentences

Cash, cash equivalents - End of period

For the Three Months Ended

For the Six Months Ended

Supplemental Disclosures of Cash Flow Information:

2 unchanged sentences

Non-Cash Financing Activities

Fair value of warrants issued

Fair value of common stock issued in satisfaction of trade payable

Fair value of warrants issued in satisfaction of trade payables and accrued expenses

Notes to these Unaudited Condensed Financial Statements

20 unchanged sentences

2 – Management’s Liquidity Plan

of March 31, 2022, the Company had a cash balance of $ 51.3

million and working capital of $ 50.4

Although the Company expects to continue

incurring losses for the foreseeable future and may need to raise additional capital to sustain its operations, pursue its product development

initiatives and penetrate markets for the sale of its products, Management believes that our capital resources at March 31, 2022 are

sufficient to meet our obligations as they become due within one year after the date of this Quarterly Report, and sustain operations.

of June 30, 2022, the Company had a cash balance of $ 9.1 million, investments of $ 38.1 million and working capital of $ 35.6 million.

Although the Company expects to continue incurring losses for the foreseeable future and may need to raise additional capital to sustain

its operations, pursue its product development initiatives and penetrate markets for the sale of its products, Management believes that

our capital resources at June 30, 2022 are sufficient to meet our obligations as they become due within one year after the date of this

Quarterly Report, and sustain operations.

3 – Significant Accounting Policies

6 unchanged sentences

of normal recurring items) which are considered necessary for a fair presentation of the unaudited condensed financial statements of

the Company as of March 31, 2022 and December 31, 2021, and for the three months ended March 31, 2022 and 2021.

The results of operations

for the three months ended March 31, 2022 are not necessarily indicative of the operating results for the full year.

These unaudited

condensed financial statements should be read in conjunction with the financial statements and notes thereto for the year ended December

31, 2021 included in the Company’s Form 10-K filed with the SEC on March 28, 2022.

The condensed balance sheet as of December 31,

2021 has been derived from the Company’s audited financial statements.

the Company as of June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021.

The results of

operations for the three and six months ended June 30, 2022 are not necessarily indicative of the operating results for the full year.

These unaudited condensed financial statements should be read in conjunction with the financial statements and notes thereto for the

year ended December 31, 2021 included in the Company’s Form 10-K filed with the SEC on March 28, 2022.

The condensed balance sheet

as of December 31, 2021 has been derived from the Company’s audited financial statements.

consider all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents.

The fair values of these investments approximate their carrying values.

Investments with original maturities of greater than three months

and remaining maturities of less than one year are classified as short-term investments.

Investments with maturities beyond one year

are classified as long-term investments.

Debt investments are classified

as trading securities and realized gains and losses are recorded using the specific identification method.

Changes in fair value, excluding

credit losses and impairments, are recorded in unrealized gains (losses) from investments.

Fair value is calculated based on publicly

available market information.

If the cost of an investment exceeds its fair value, we evaluate, among other factors, general market conditions,

credit quality of debt instrument issuers, and the extent to which the fair value is less than cost.

We recognize interest income based

on the stated coupon rate of the investments purchased.

MEDICAL CORPORATION

TO CONDENSED FINANCIAL STATEMENTS

Note 4 – Concentrations

The Company maintains

cash with major financial institutions.

Cash held in United States bank institutions is currently insured by the Federal Deposit Insurance

Corporation (“FDIC”) up to $ 250 at each institution.

There were aggregate uninsured cash balances of $ 51.1 and $ 54.5

million as of March 31, 2022 and December 31, 2021, respectively.

5 – Property and Equipment

of March 31, 2022 and December 31, 2021, property and equipment consist of the following:

of Property and Equipment

software and equipment

Work in Progress – Software

property and equipment

accumulated depreciation

and equipment, net

expense amounted to $ 0.1 million

for the three months ended March 31, 2022 and 2021.

Depreciation expense is reflected in general and administrative expenses in the accompanying statements of operations.

4 – Investments

components of investments were as follows at June 30, 2022:

of Investments

(In thousands)

Cash Equivalents

Short-Term Investment

Long Term Investment

Fair Value Level 1

Government securities

Total debt investments

losses from fixed-income securities are primarily attributable to changes in interest rates.

Management does not believe any remaining

unrealized losses represent impairments based on our evaluation of available evidence.

There were no similar investments at December

5 – Concentrations

Company maintains cash with major financial institutions.

Cash held in United States bank institutions is currently insured by the Federal

Deposit Insurance Corporation (“FDIC”) up to $ 250 at each institution.

There were aggregate uninsured cash balances of $ 8.8

and $ 54.5 million as of June 30, 2022 and December 31, 2021, respectively.

MEDICAL CORPORATION

1 unchanged sentence

6 – Accrued Expenses and Other Current Liabilities

of March 31, 2022, and December 31, 2021, accrued expenses and other current liabilities consist of the following:

of June 30, 2022, and December 31, 2021, accrued expenses and other current liabilities consist of the following:

of Accrued Expenses and Other Current Liabilities

(In thousands)

Accrued compensation costs

8 unchanged sentences

Rankin Complaints

July 9, 2020, the Company was served with a civil complaint filed in the Superior Court for the State of California, County of Orange

by a former employee, Robert Rankin, who resigned his employment on or about March 30, 2020.

July 9, 2020, the Company was served with a civil complaint filed in the Superior Court for the State of California, County of

Orange by a former employee, Robert Rankin, who resigned his employment on or about March 30, 2020.

The case is entitled Rankin v.

Hancock Jaffe

Laboratories, Inc.

Hancock Jaffe Laboratories, Inc.

et al., Case No.

30-2020-01146555-CU-WR-CJC and was filed on May 27, 2020.

On September 3, 2020 the Company and its

Chief Executive Officer were served with a second complaint filed in the Superior Court for the State of California, County of Orange

On September 3, 2020 the

Company and its Chief Executive Officer were served with a second complaint filed in the Superior Court for the State of California,

County of Orange by Mr.

The case is entitled Rankin v.

1 unchanged sentence

et al., Case No.

30-2020-01157857

and was filed on August 31, 2020.

The complaints assert several causes of action including a cause of action for failure to timely pay Mr.

Rankin’s accrued

and unused vacation and three months’ severance under his July 16, 2018 employment agreement, defamation, unlawful labor code violations,

sex-based discrimination, and unfair competition, and seeks damages for lost wages, emotional and mental distress, consequential damages,

punitive damages and attorney’s fees and costs.

The Company has denied all claims in both matters (which have now been consolidated)

and has filed a counterclaim asserting that Rankin has breached his employment agreement with the Company to the Company’s damage.

The Company continues to believe it has meritorious defenses to both matters.

As of the date of these financial statements, the amount

of loss associated with these complaints, if any, cannot be reasonably estimated.

Accordingly, no amounts related to these complaints

are accrued as of March 31, 2022.

The complaints assert several causes of action including a cause of action for failure to timely

Rankin’s accrued and unused vacation and three months’ severance under his July 16, 2018 employment agreement,

defamation, unlawful labor code violations, sex-based discrimination, and unfair competition, and seeks damages for lost wages,

emotional and mental distress, consequential damages, punitive damages and attorney’s fees and costs.

The Company has denied

all claims in both matters (which have now been consolidated) and has filed a counterclaim asserting that Rankin has breached his

employment agreement with the Company to the Company’s damage.

The Company continues to believe it has meritorious defenses to

both matters which are currently set for trial on October 24, 2022.

As of the date of these financial statements, the amount of loss associated with these complaints, if any, cannot be

reasonably estimated.

Accordingly, no amounts related to these complaints are accrued as of June 30, 2022.

MEDICAL CORPORATION

2 unchanged sentences

time to time, the Company issues options for the purchase of its common stock to employees and others.

The Company recognized $ 2.2 million

and $ 0.1 million of share-based compensation related to stock options during the three months ended March 31, 2022 and 2021, respectively.

As of March 31, 2022, there was $ 13.0 million of unrecognized stock-based compensation expense related to outstanding stock options that

will be recognized over the weighted average remaining vesting period of 1.9 years.

During the six-months ended

June 30, 2022, the Company granted options to employees for the purchase of thirty-thousand shares with a weighted average exercise

price of $ 6.83

The Company recognized $ 4.5

million and $ 0.3

million of share-based compensation related to stock options during the six months ended June 30, 2022 and 2021, respectively.

June 30, 2022, there was $ 10.6

million of unrecognized stock-based compensation expense related to outstanding stock options that will be recognized over the

weighted average remaining vesting period of 1.7

9 – Net Loss per Share

following table summarizes the number of potentially dilutive common stock equivalents excluded from the calculation of diluted net loss

per common share as of March 31, 2022 and 2021:

Schedule of Dilutive Net Loss Per Common Share

per common share as of June 30, 2022 and 2021:

of Dilutive Net Loss Per Common Share

(In thousands)

Shares of common stock issuable upon exercise of warrants

2 unchanged sentences

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