Nanoviricides, Inc 10-Q for FY2022 Q2

Nanoviricides, Inc. (NNVC)

10-Q 2022-02-14 For: 2021-12-31

Added on April 10, 2026

About this 10-Q

Nanoviricides, Inc filed this 10-Q on February 14, 2022, covering the quarter ended December 31, 2021 (FY2022 Q2).

Headline figures

Quarter ended December 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $1.92M; compared with a net loss of $2.33M a year earlier
Diluted EPS: -$0.17; compared with -$0.22 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

Balance Sheets at December 31, 2021 (Unaudited) and June 30, 2021	3

Statements of Operations for the Three and Six Months Ended December 31, 2021and 2020 (Unaudited)	4

Statements of Changes in Stockholders’ Equity for the Periods from July 1, 2021 through December 31, 2021 (Unaudited) and from July 1, 2020 through December 31, 2020 (Unaudited)	5-6

Statements of Cash Flows for the Six Months Ended December 31, 2021 and 2020 (Unaudited)	7

Notes to the 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	47

Item 4. Controls and Procedures	47

PART II OTHER INFORMATION

Item 1. Legal Proceedings	49

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	49

Item 3. Defaults Upon Senior Securities	49

Item 4. Mine Safety Disclosures	50

Item 5. Other Information	50

Item 6. Exhibits and Reports on Form 8-K	51

Signatures	52

Certifications


	December 31,		June 30,
	2021		2021
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	17,335,892	$	20,516,677
Prepaid expenses		141,904		307,102
Deferred financing costs		37,408		—
Total current assets		17,515,204		20,823,779

PROPERTY AND EQUIPMENT
Property and equipment		14,543,329		14,333,666
Accumulated depreciation		(5,598,440)		(5,248,765)
Property and equipment, net		8,944,889		9,084,901

TRADEMARK AND PATENTS
Trademark and patents		458,954		458,954
Accumulated amortization		(112,971)		(108,836)
Trademark and patents, net		345,983		350,118

OTHER ASSETS
Security deposits		3,515		3,515
Total assets	$	26,809,591	$	30,262,313

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	153,180	$	200,016
Accounts payable – related party		166,948		31,539
Loan payable		—		95,306
Accrued expenses		24,157		24,285
Total current liabilities		344,285		351,146

COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Series A Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 482,468 and 371,490 shares issued and outstanding, at December 31, 2021 and June 30, 2021, respectively		482		372
Common stock, $0.001 par value; 150,000,000 shares authorized, 11,534,484 and 11,515,170 shares issued and outstanding, at December 31, 2021 and June 30, 2021, respectively		11,534		11,515
Additional paid-in capital		145,372,805		144,284,593
Accumulated deficit		(118,919,515)		(114,385,313)

Total stockholders' equity		26,465,306		29,911,167

Total liabilities and stockholders' equity	$	26,809,591	$	30,262,313


	For the Three Months Ended				For the Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
OPERATING EXPENSES
Research and development	$	1,261,308	$	1,493,200	$	3,358,228	$	3,066,271
General and administrative		659,268		798,722		1,174,713		1,496,034

Total operating expenses		1,920,576		2,291,922		4,532,941		4,562,305

LOSS FROM OPERATIONS		(1,920,576)		(2,291,922)		(4,532,941)		(4,562,305)

OTHER INCOME (EXPENSE)
Interest income		2,073		1,187		3,127		4,246
Interest expense		(2,631)		(37,293)		(4,388)		(81,202)
Loss on disposal of property and equipment		—		(2,026)		—		(2,026)

Other (expense) income, net		(558)		(38,132)		(1,261)		(78,982)

LOSS BEFORE INCOME TAX PROVISION		(1,921,134)		(2,330,054)		(4,534,202)		(4,641,287)

INCOME TAX PROVISION		—		—		—		—

NET LOSS	$	(1,921,134)	$	(2,330,054)	$	(4,534,202)	$	(4,641,287)

Net loss per common share- basic and diluted	$	(0.17)	$	(0.22)	$	(0.39)	$	(0.44)

Weighted average common shares outstanding- basic and diluted		11,525,304		10,666,056		11,520,291		10,576,828


	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, 2021	371,490	$	372	11,515,170	$	11,515	$	144,284,593	$	(114,385,313)	$	29,911,167

Series A preferred stock issued for employee stock compensation	10,591		10	—		—		32,880		—		32,890

Series A preferred stock issued for license agreement	100,000		100	—		—		934,988		—		935,088

Common stock issued for consulting and legal services rendered	—		—	6,509		6		26,994		—		27,000

Warrants issued to Scientific Advisory Board	—		—	—		—		1,352		—		1,352

Common shares issued for Directors fees	—		—	3,524		4		14,996		—		15,000

Net loss	—		—	—		—		—		(2,613,068)		(2,613,068)

Balance, September 30, 2021	482,081	$	482	11,525,203	$	11,525	$	145,295,803	$	(116,998,381)	$	28,309,429

Series A preferred stock issued for employee stock compensation	387		—	—		—		33,367		—		33,367

Common stock issued for consulting and legal services rendered	—		—	5,993		6		26,994		—		27,000

Warrants issued to Scientific Advisory Board	—		—	—		—		1,644		—		1,644

Common shares issued for Directors fees	—		—	3,288		3		14,997		—		15,000

Net loss	—		—	—		—		—		(1,921,134)		(1,921,134)

Balance, December 31, 2021	482,468	$	482	11,534,484	$	11,534	$	145,372,805	$	(118,919,515)	$	26,465,306


	Potentially Outstanding Dilutive Common Shares
	For the	For the
	Six Months	Six Months
	Ended	Ended
	December 31, 2021	December 31, 2020
Options	—	5,000
Warrants	9,146	21,646
Total potentially outstanding dilutive common shares	9,146	26,646


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,
	2021		2021
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, 2021 and June 30, 2021 was $657,948 and $517,862, inclusive of $200,000 which is deferred until the filing of an IND respectively, and which were offset by a two month advance (see above) of $491,000.	$	113,788	$	26,862

Included in Accounts Payable–Related Party are reimbursements of certain of the Company’s executive compensation paid by TheraCour on behalf of the Company.	$	53,160	$	4,677


Date	Shares	Value
7/31/2021	10,333	$	111,012
8/31/2021	129		1,718
9/30/2021	100,129		936,984
10/31/2021	129		2,166
11/30/2021	129		1,895
12/31/2021	129		2,060
	110,978	$	1,055,835


Expected life (year)	4

Expected volatility	86.0-91.4	%

Expected annual rate of quarterly dividends	0.00	%

Risk-free rate(s)	0.615-1.065	%


		Weighted
		Average		Weighted
		Exercise		Average
		Price		Remaining	Aggregate
	Number of	per share		Contractual Term	Intrinsic Value
Stock Warrants	Shares	($)		(years)	($)
Outstanding and exercisable at June 30, 2021	9,146	$	10.80	2.00	$	1,943

Granted	1,144		5.29	3.76		—

Expired	(1,144)		27.30	—		—
Outstanding and exercisable at December 31, 2021	9,146	$	8.05	2.00	$	623


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, 2022	Name:	Anil R. Diwan
	Title:	President, Chairman of the Board
	(Principal Executive Officer)

	/s/ Meeta Vyas
Dated: February 14, 2022	Name:	Meeta Vyas
	Title:	Chief Financial Officer
	(Principal Financial Officer)


	December 31,		June 30,
	2021		2021
GMP Facility	$	8,149,416	$	8,020,471

Land		260,000		260,000

Office Equipment		57,781		57,781

Furniture and Fixtures		5,607		5,607

Lab Equipment		6,070,525		5,989,807

Total Property and Equipment		14,543,329		14,333,666

Less Accumulated Depreciation		(5,598,440)		(5,248,765)
Property and Equipment, Net	$	8,944,889	$	9,084,901