Nanoviricides, Inc 10-Q for FY2023 Q2

Nanoviricides, Inc. (NNVC)

10-Q 2023-02-14 For: 2022-12-31

Added on April 10, 2026

About this 10-Q

Nanoviricides, Inc filed this 10-Q on February 14, 2023, covering the quarter ended December 31, 2022 (FY2023 Q2).

Headline figures

Quarter ended December 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $1.75M; compared with a net loss of $1.92M a year earlier
Diluted EPS: -$0.15; compared with -$0.17 a year earlier

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NEVADA		76-0674577
(State or other jurisdiction)		(IRS Employer Identification No.)
of incorporation or organization)


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐


Title of each class:	Trading Symbol(s)	Name of each exchange on which registered:
Common Stock	NNVC	NYSE-American


PART I FINANCIAL INFORMATION	3

Item 1. Financial Statements	3

Condensed Balance Sheets at December 31, 2022 (Unaudited) and June 30, 2022	3

Condensed Statements of Operations for the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited)	4

Condensed Statements of Changes in Stockholders’ Equity for the Six Months Ended December 31, 2022 and 2021 (Unaudited)	5

Condensed Statements of Cash Flows for the Six Months Ended December 31, 2022 and 2021 (Unaudited)	7

Notes to the Condensed Financial Statements (Unaudited)	8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3. Quantitative and Qualitative Disclosures About Market Risk	29

Item 4. Controls and Procedures	29

PART II OTHER INFORMATION	31

Item 1. Legal Proceedings	31

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	31

Item 3. Defaults Upon Senior Securities	31

Item 4. Mine Safety Disclosures	32

Item 5. Other Information	32

Item 6. Exhibits and Reports on Form 8-K	33

Signatures	34

Certifications


	December 31,		June 30,
	2022		2022
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	11,448,346	$	14,066,359
Prepaid expenses		104,545		350,021
Total current assets		11,552,891		14,416,380

Property and equipment, net		8,417,849		8,694,194

Trademark and patents, net		337,713		341,848

OTHER ASSETS
Service agreements		26,510		38,925
Security deposits		—		3,515
Other assets		26,510		42,440
Total assets	$	20,334,963	$	23,494,862

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	39,291	$	57,960
Accounts payable – related party		373,424		214,397
Loan payable		—		94,788
Accrued expenses		51,877		45,692
Total current liabilities		464,592		412,837

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY:
Series A convertible preferred stock, $0.001 par value, 10,000,000 shares designated, 495,560 and 484,582 shares issued and outstanding, at December 31, 2022 and June 30, 2022, respectively		495		485
Common stock, $0.001 par value; 150,000,000 shares authorized, 11,634,576 and 11,592,173 shares issued and outstanding, at December 31, 2022 and June 30, 2022, respectively		11,634		11,592
Additional paid-in capital		145,666,194		145,562,124
Accumulated deficit		(125,807,952)		(122,492,176)

Total stockholders’ equity		19,870,371		23,082,025

Total liabilities and stockholders’ equity	$	20,334,963	$	23,494,862


	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
	2022		2021		2022		2021
OPERATING EXPENSES
Research and development	$	1,170,710	$	1,261,308	$	2,283,369	$	3,358,228
General and administrative		663,284		659,268		1,172,985		1,174,713

Total operating expenses		1,833,994		1,920,576		3,456,354		4,532,941

LOSS FROM OPERATIONS		(1,833,994)		(1,920,576)		(3,456,354)		(4,532,941)

OTHER INCOME (EXPENSE)
Interest income		88,954		2,073		141,516		3,127
Interest expense		(94)		(2,631)		(938)		(4,388)

Other (expense) income, net		88,860		(558)		140,578		(1,261)

LOSS BEFORE INCOME TAX PROVISION		(1,745,134)		(1,921,134)		(3,315,776)		(4,534,202)

INCOME TAX PROVISION		—		—		—		—

NET LOSS	$	(1,745,134)	$	(1,921,134)	$	(3,315,776)	$	(4,534,202)

Net loss per common share- basic and diluted	$	(0.15)	$	(0.17)	$	(0.29)	$	(0.39)

Weighted average common shares outstanding- basic and diluted		11,610,303		11,525,304		11,601,335		11,520,291


	Series A Preferred			Common Stock:
	Stock: Par $0.001			Par $0.001
	Number			Number			Additional				Total
	of			of			Paid-in		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Capital		Deficit		Equity
Balance, June 30, 2022	484,582	$	485	11,592,173	$	11,592	$	145,562,124	$	(122,492,176)	$	23,082,025

Series A preferred stock issued for employee stock compensation	10,591		10	—		—		13,854		—		13,864

Common stock issued for consulting and legal services rendered	—		—	12,710		13		26,987		—		27,000

Warrants issued to Scientific Advisory Board	—		—	—		—		480		—		480

Common stock issued for Directors fees	—		—	5,154		5		11,245		—		11,250

Net loss	—		—	—		—		—		(1,570,642)		(1,570,642)

Balance, September 30, 2022	495,173	$	495	11,610,037	$	11,610	$	145,614,690	$	(124,062,818)	$	21,563,977

Series A preferred stock issued for employee stock compensation	387		—	—		—		13,055		—		13,055

Common stock issued for consulting and legal services rendered	—		—	17,366		17		26,983		—		27,000

Warrants issued to Scientific Advisory Board	—		—	—		—		223		—		223

Common stock issued for Directors fees	—		—	7,173		7		11,243		—		11,250

Net loss	—		—	—		—		—		(1,745,134)		(1,745,134)

Balance, December 31, 2022	495,560	$	495	11,634,576	$	11,634	$	145,666,194	$	(125,807,952)	$	19,870,371


	Potentially Outstanding Dilutive Common Shares
	For the	For the	For the	For the
	Three Months	Three Months	Six Months	Six Months
	Ended	Ended	Ended	Ended
	December 31, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Warrants	8,820	9,146	8,576	9,146


Related Parties		Relationship
Dr. Anil R. Diwan		Chairman, President, CEO, significant stockholder and Director

TheraCour Pharma, Inc. (“TheraCour”)		An entity owned and controlled by Dr. Anil R. Diwan


	As of
	December 31,		June 30,
	2022		2022
Account Payable – Related Party

Pursuant to an Exclusive License Agreement with TheraCour, the Company was granted exclusive licenses for technologies developed by TheraCour for the virus types: HIV, HCV, Herpes, Asian (bird) flu, Influenza and rabies. On November 1, 2019, the Company entered into the VZV Licensing Agreement with TheraCour. In consideration for obtaining these exclusive licenses, the Company agreed: (1) that TheraCour can charge its costs (direct and indirect) plus no more than 30% of certain direct costs as a development fee and such development fees shall be due and payable in periodic installments as billed, (2) the Company will pay $2,000 or actual costs each month, whichever is higher for other general and administrative expenses incurred by TheraCour on the Company’s behalf, (3) to make royalty payments of 15% (calculated as a percentage of net sales of the licensed drugs) to TheraCour and; (4) to pay an advance payment equal to twice the amount of the previous months invoice to be applied as a prepayment towards expenses. Accounts payable due TheraCour at December 31, 2022 and June 30, 2022 were $838,424 and $679,397, respectively, which were each offset by a two month advance of $465,000.	$	373,424	$	214,397


Expected life (year)	4

Expected volatility	60.09-85.12	%

Expected annual rate of quarterly dividends	0.00	%

Risk-free rate(s)	3.025-4.027	%


		Weighted
		Average		Weighted
		Exercise		Average
		Price		Remaining	Aggregate
	Number of	per share		Contractual Term	Intrinsic Value
Common Stock Warrants	Shares	($)		(years)	($)
Outstanding and exercisable at June 30, 2022	9,146	$	6.06	2.00	$	238

Granted	572		2.75	3.75		—

Expired	(1,142)		8.22	—		—
Outstanding and exercisable at December 31, 2022	8,576	$	5.56	1.88	$	—


PCT/US21/39050 - SELF-ASSEMBLING AMPHIPHILIC POLYMERS AS ANTI-COVID-19 AGENTS	Applied: June 25, 2021	Ca. 2043 (estimated)	PCT Application filed.	TheraCour Pharma, Inc. [Exclusive License].
PCT/US22/35210 – SELF-ASSEMBLING AMPHIPHILIC POLYMERS AS ANTI-COVID-19 AGENTS (**)	Applied: June 28, 2022	Ca. 2043 (estimated)	PCT Application filed,	TheraCour Pharma, Inc. [Exclusive License].

:TThe PCT application PCT/US22/35210 was filed with request for priority of PCT/US21/39050.


Exhibit No.		Description

31.1		Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer

31.2		Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer

32.1		Section 1350 Certification of Chief Executive Officer

32.2		Section 1350 Certification of Chief Financial Officer

101.INS		Inline XBRL Instance Document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit)


	NANOVIRICIDES, INC.

	/s/ Anil R. Diwan
Dated: February 14, 2023	Name:	Anil R. Diwan
	Title:	President, Chairman of the Board
	(Principal Executive Officer)

	/s/ Meeta Vyas
Dated: February 14, 2023	Name:	Meeta Vyas
	Title:	Chief Financial Officer
	(Principal Financial Officer)


	For the Six Months Ended
	December 31,		December 31,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(3,315,776)	$	(4,534,202)

Adjustments to reconcile net loss to net cash used in operating activities
Preferred shares issued as compensation		26,919		66,257
Preferred shares issued pursuant to license agreement		—		935,088
Common shares issued as compensation and for services		76,500		84,000
Warrants granted to Scientific Advisory Board		703		2,996
Depreciation		366,190		349,675
Amortization		4,135		4,135
Changes in operating assets and liabilities:
Prepaid expenses		245,476		165,198
Other assets		15,930		—
Accounts payable		(18,669)		(46,836)
Accounts payable - related party		159,027		135,409
Accrued expenses		6,185		(128)

NET CASH USED IN OPERATING ACTIVITIES		(2,433,380)		(2,838,408)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(89,845)		(209,663)

CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of loan payable		(94,788)		(95,306)
Deferred financing costs		—		(37,408)
NET CASH (USED IN) FINANCING ACTIVITIES		(94,788)		(132,714)

NET CHANGE IN CASH AND CASH EQUIVALENTS		(2,618,013)		(3,180,785)
Cash and cash equivalents at beginning of period		14,066,359		20,516,677
Cash and cash equivalents at end of period	$	11,448,346	$	17,335,892
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
Interest paid	$	938	$	943


	December 31,		June 30,
	2022		2022
GMP Facility	$	8,168,045	$	8,149,416

Land		260,000		260,000

Office Equipment		57,781		57,781

Furniture and Fixtures		5,607		5,607

Lab Equipment		6,256,426		6,185,210

Total Property and Equipment		14,747,859		14,658,014

Less Accumulated Depreciation		(6,330,010)		(5,963,820)
Property and Equipment, Net	$	8,417,849	$	8,694,194

February 14, 2023	By:	/s/ Anil Diwan
	Name:	Anil Diwan
	Title:	President, Chairman
		(Principal Executive Officer)


February 14, 2023	By:	/s/ Meeta Vyas
	Name:	Meeta Vyas
	Title:	Chief Financial Officer
		(Principal Financial and Accounting Officer)