Quarterly report pursuant to Section 13 or 15(d)

Liquidity and Management???s Plans

Liquidity and Management’s Plans
9 Months Ended
Sep. 30, 2022
Liquidity and Management’s Plan [Abstract]  
Liquidity and Management’s Plans

Note 2 – Liquidity and Management’s Plans


Pursuant to the requirements of Accounting Standard Codification (“ASC”) 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued.


As of September 30, 2022, the Company had working capital and stockholders’ equity of $18.5 million and $18.7 million, respectively. During the nine months ended September 30, 2022, the Company incurred a net loss of $8.4 million and utilized cash of $7.7 million in its operating activities. Based on the cash and investments on hand as of September 30, 2022 of approximately $18.3 million, current budget assumptions and projected cash burn, the Company believes that it has sufficient capital to meet its operating expenses and obligations for the next twelve months from the date of this filing but it anticipates it will be dependent on additional investment capital to fund its operating expenses in subsequent quarters.


Future capital requirements will depend on many factors, including the timing of spending on research and development, potential success of the Company’s research and development efforts, the sentiment of the capital markets at the time capital is required or pursued, amongst other things. 


If unanticipated difficulties or circumstances arise, the Company may require additional capital sooner to support its operations.  If the Company is unable to raise additional capital whenever necessary, it may be forced to decelerate or curtail its research and development activities and/or other operations until such time as additional capital becomes available. Such limitation of the Company’s activities would allow it to slow its rate of spending and extend its use of cash until additional capital is raised.  There can be no assurance that such a plan would be successful.  There is no assurance that, in the event the Company requires additional financing, such financing will be available at terms acceptable to the Company, if at all.