What changed in this filing

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Item 1. Financial Statements

2024-10-31 compared with 2024-07-31 · 75 added, 86 removed, 149 unchanged (52% of the section changed)

2 unchanged sentences

BALANCE SHEETS

June 30, 2024

September 30, 2024

December 31, 2023

19 unchanged sentences

no shares issued or outstanding

Common stock, par value $ 0.00001 , 250,000 shares authorized, 13,330 and 13,317 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively

Common stock, par value $ 0.00001 , 250,000 shares authorized, 17,536 and 13,317 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

Additional paid-in capital

5 unchanged sentences

STATEMENTS OF OPERATIONS

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended

For the Nine Months Ended

September 30,

(In thousands, except per share data)

Operating Expenses:

Selling, general and administrative expenses

Research and development expenses

Selling, general and administrative expenses

Loss from Operations

Other Income:

Realized gains from sales of trading securities

Unrealized gains from of trading securities

Realized gain from sales of trading securities

Unrealized gain from trading securities

Interest income, net

5 unchanged sentences

MEDICAL CORPORATION

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIENCY)

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

thousands, unless otherwise indicated)

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Stockholders’

Balance at April 1, 2024

Balance at July 1, 2024

$ ( 139,984 )

Shared-Based Compensation

Balance at June 30, 2024

Common Stock and Warrants Issued in Public Offering

Share-Based Compensation

Balance at September 30, 2024

$ ( 145,626 )

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Stockholders’

Balance at April 1, 2023

Balance at July 1, 2023

$ ( 119,386 )

Shared-Based Compensation

Balance at June 30, 2023

Share-Based Compensation

Balance at September 30, 2023

$ ( 124,387 )

Six Months Ended June 30, 2024

Additional Paid-in

Nine Months Ended September 30, 2024

Stockholders’

1 unchanged sentence

$ ( 130,036 )

Shared-Based Compensation

Common Stock and Warrants Issued in Public Offering

Share-Based Compensation

Options exercised

Balance at June 30, 2024

Balance at September 30, 2024

$ ( 145,626 )

Six Months Ended June 30, 2023

Additional Paid-in

Nine Months Ended September 30, 2023

Stockholders’

2 unchanged sentences

$ ( 106,520 )

Shared-Based Compensation

Balance at June 30, 2023

Share-Based Compensation

Balance at September 30, 2023

$ ( 124,387 )

4 unchanged sentences

thousands, unless otherwise indicated)

For the Six Months Ended June 30,

For the Nine Months Ended

September 30,

Cash Flows from Operating Activities

3 unchanged sentences

Amortization of right-of-use assets

Unrealized (gain) loss from investments

Unrealized gain from investments, net

Changes in operating assets and liabilities:

Prepaid expenses and other current assets

Accounts payable

Accrued expenses and other current liabilities

Security deposit and other assets

Accounts payable, accrued expenses and other current liabilities

Operating lease liabilities

1 unchanged sentence

Cash Flows from Investing Activities

Maturities of investments

Purchase of property and equipment

Purchases of investments

Maturities of investments

Net Cash Provided by Investing Activities

Cash Flows from Financing Activities

Proceeds from public offering

Proceeds from stock option exercises

Net Cash Provided by Financing Activities

Net (Decrease) Increase in Cash

Net Increase in Cash, Cash Equivalents

Cash, cash equivalents - Beginning of period

4 unchanged sentences

1 – Business Organization and Nature of Operations

Medical Corporation is a late clinical-stage medical device company focused on the advancement of innovative bioprosthetic (tissue-based)

solutions to improve the standard of care for the treatment of venous disease.

The Company is developing surgical and non-surgical replacement

venous valves for patients suffering from severe Chronic Venous Insufficiency (“CVI”) of the deep venous system of the leg.

Medical Corporation (the “Company”) is a late clinical-stage medical device company focused on the advancement of

innovative bioprosthetic (tissue-based) solutions to improve the standard of care for the treatment of venous disease.

is developing surgical and non-surgical replacement venous valves for patients suffering from severe Chronic Venous Insufficiency

(“CVI”) of the deep venous system of the leg.

Company’s lead product is the VenoValve®, which is a potential first-in-class surgical replacement venous valve that is currently

14 unchanged sentences

2 – Management’s Liquidity Plan

of June 30, 2024, the Company had a cash and investment balance of $ 39.1 million and working capital of $ 37.8 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

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

of September 30, 2024, the Company had a cash and investment balance of $ 48.4 million and working capital of $ 47.3 million.

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 the Company’s capital resources

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

MEDICAL CORPORATION

TO CONDENSED FINANCIAL STATEMENTS

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 June 30, 2024 and December 31, 2023, and for the three and six months ended June 30, 2024 and 2023.

results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the operating results for

the full year.

the Company as of September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 2024 and 2023.

results of operations for the three and nine months ended September 30, 2024 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, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on

February 29, 2024.

The accompanying condensed balance sheet as of December 31, 2023 has been derived from the Company’s

audited financial statements.

MEDICAL CORPORATION

TO CONDENSED FINANCIAL STATEMENTS

thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on February

The accompanying condensed balance sheet as of December 31, 2023 has been derived from the Company’s audited financial

4 – Investments

components of investments at June 30, 2024 and December 31, 2023 were as follows:

components of investments were as follows at September 30, 2024 and December 31, 2024:

Schedule of Components of Investments

June 30, 2024

September 30, 2024

December 31, 2023

6 unchanged sentences

of available evidence.

MEDICAL CORPORATION

TO CONDENSED FINANCIAL STATEMENTS

5 – Concentrations

3 unchanged sentences

There were aggregate uninsured cash balances of

$ 0.9 million and $ 3.4 million as of June 30, 2024 and December 31, 2023, respectively.

MEDICAL CORPORATION

TO CONDENSED FINANCIAL STATEMENTS

$ 14.9 million and $ 3.4 million as of September 30, 2024 and December 31, 2023, respectively.

6 – Accounts Payable, Accrued Expenses and Other Current Liabilities

of June 30, 2024, and December 31, 2023, accounts payable, accrued expenses and other current liabilities consist of the following:

of September 30, 2024, and December 31, 2023, accounts payable, accrued expenses and other current liabilities consist of the following:

of Accounts Payable, Accrued Expenses and Other Current Liabilities

(In thousands)

June 30, 2024

September 30, 2024

December 31, 2023

7 unchanged sentences

The Company records legal costs associated with loss contingencies as incurred and accrues for all probable and estimable

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.

The case is entitled Rankin v.

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

The case is entitled Rankin v.

Hancock Jaffe Laboratories, Inc.

et al., Case No.

30-2020-01157857 and was filed on August

complaints allege 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.

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 and fiduciary duty to the Company’s damage.

The Company continues to

believe it has meritorious defenses to both matters which are currently set for trial on August 12, 2024.

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, 2024.

MEDICAL CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

TO CONDENSED FINANCIAL STATEMENTS

8 – Stockholders’ Equity

Company consummated a public offering on September 30, 2024 whereby it raised net proceeds of $ 13.3 million and issued 4.2 million

shares of common stock, 0.1 million prefunded warrants and 0.3 million warrants to the underwriter.

The weighted average exercise price

of the warrants is $ 3.18 .

fees in connection with the capital raise were $ 1.4 million.

warrants have a fair value of $ 1.0 million based on the Black Scholes method and the following weighted average input assumptions:

of Estimated Fair values and Assumptions

Contractual term in years

Risk free interest rate

Dividend yield

compensation is reflected in selling, general and administrative expenses in the accompanying condensed statements of operations and

was $ 1.0 million and $ 1.2 million during the three months ended June 30, 2024 and 2023, respectively, and $ 2.1 million and $ 3.0 million

during the six months ended June 30, 2024 and 2023.

As of June 30, 2024, there was $ 5.3 million of unrecognized stock-based compensation

expense related to outstanding stock options that will be recognized over the weighted average remaining vesting period of 1.5 years.

was $ 1.0 million and $ 1.1 million during the three months ended September 30, 2024 and 2023, respectively, and $ 3.1 million and $ 4.1

million during the nine months ended September 30, 2024 and 2023.

As of September 30, 2024, there was $ 4.3 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.

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 June 30, 2024 and 2023:

per common share as of September 30, 2024 and 2023:

Schedule of Dilutive Net Loss Per Common Share

(In thousands)

September 30,

(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