Annovis Bio, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Annovis Bio, Inc. filed its Q1 2024 10-Q, detailing financial instruments, stock activity, and balance sheet changes.</b>

AI Summary

Annovis Bio, Inc. (ANVS) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. Annovis Bio, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing includes data related to warrants classified as liabilities, with fair value inputs such as share price, risk-free interest rate, price volatility, expected term, exercise price, conversion price, and success rate. Financial data for employee stock options and common stock are presented for the periods ending March 31, 2024, and March 31, 2023. Key balance sheet components like Retained Earnings and Additional Paid-In Capital are detailed for March 31, 2024, December 31, 2023, March 31, 2023, and December 31, 2022. A subsequent event noted is a Common Stock Purchase Agreement, dated between May 1, 2024, and May 31, 2024, and a private placement on March 21, 2024.

Why It Matters

For investors and stakeholders tracking Annovis Bio, Inc., this filing contains several important signals. This filing provides investors with a detailed look at Annovis Bio's financial position and equity structure as of the end of the first quarter of 2024, including the valuation of financial instruments. The inclusion of subsequent events like the Common Stock Purchase Agreement and private placement offers insight into recent corporate financing activities and potential future dilution or capital infusion.

Risk Assessment

Risk Level: medium — Annovis Bio, Inc. shows moderate risk based on this filing. The company is in the pharmaceutical preparations industry, which is subject to significant regulatory oversight and clinical trial risks. The filing mentions stock purchase agreements and private placements, indicating potential financing activities that could impact share structure and valuation.

Analyst Insight

Monitor future filings for updates on the Common Stock Purchase Agreement and private placement details, as these could significantly impact the company's cash position and share count.

Key Numbers

• 2024-03-31 — Period of Report (Conformed period of report)
• 2024-05-10 — Filing Date (Filed as of date)
• 2024-05-01 — Agreement Start Date (Common Stock Purchase Agreement)
• 2024-03-21 — Private Placement Date (Private placement)

Key Players & Entities

• Annovis Bio, Inc. (company) — Filer name
• QR Pharma, Inc. (company) — Former company name
• 2024-03-31 (date) — Period of report
• 2024-05-10 (date) — Filing date
• 101 LINDENWOOD DRIVE, SUITE 225 (address) — Business address
• 484-875-3192 (phone) — Business phone

FAQ

Risk Factors

• Regulatory Risks [high — regulatory]: The pharmaceutical industry is subject to extensive regulation by government agencies, which can impact product development, approval, and marketing.
• Financing Risks [medium — financial]: The company may need to raise additional capital through equity or debt financing, which could dilute existing shareholders or increase financial obligations.
• Clinical Trial Risks [high — operational]: The success of Annovis Bio's drug candidates depends on the outcomes of clinical trials, which are inherently uncertain and can lead to significant delays or failures.

Key Financial Figures

• $0.0001 — ch Registered Common Stock, par value $0.0001 per share ANVS New York Stock Excha

Filing Documents

• anvs-20240331x10q.htm (10-Q) — 802KB
• anvs-20240331xex31d1.htm (EX-31.1) — 13KB
• anvs-20240331xex32d1.htm (EX-32.1) — 5KB
• 0001558370-24-007820.txt (&nbsp;) — 4169KB
• anvs-20240331.xsd (EX-101.SCH) — 32KB
• anvs-20240331_cal.xml (EX-101.CAL) — 28KB
• anvs-20240331_def.xml (EX-101.DEF) — 110KB
• anvs-20240331_lab.xml (EX-101.LAB) — 270KB
• anvs-20240331_pre.xml (EX-101.PRE) — 211KB
• anvs-20240331x10q_htm.xml (XML) — 662KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Page Item 1.

Financial Statements

Financial Statements 3 Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 3 4 5 6

Notes to Financial Statements (Unaudited)

Notes to Financial Statements (Unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3. Quantitative and Qualitative Disclosure About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 3. Defaults Upon Senior Securities 24 Item 4. Mine Safety Disclosures 24 Item 5. Other Information 24 Item 6. Exhibits 25

Signatures

Signatures 26 2 Table of Contents PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Annovis Bio, Inc. Balance Sheets (Unaudited) March 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 3,136,968 $ 5,754,720 Prepaid expenses and other current assets 4,676,327 4,453,544 Total current assets 7,813,295 10,208,264 Total assets $ 7,813,295 $ 10,208,264 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable $ 4,106,832 $ 1,292,837 Accrued expenses 763,183 2,986,273 Total current liabilities 4,870,015 4,279,110 Warrant liability 6,297,308 13,680,000 Total liabilities 11,167,323 17,959,110 Commitments and contingencies (Note 6) Stockholders' (deficit): Preferred stock - $ 0.0001 par value, 2,000,000 shares authorized and 0 shares issued and outstanding — — Common stock - $ 0.0001 par value, 70,000,000 and 70,000,000 shares authorized and 11,011,299 and 10,519,933 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 1,101 1,052 Additional paid-in capital 107,970,905 102,507,189 Accumulated deficit ( 111,326,034 ) ( 110,259,087 ) Total stockholders' (deficit) ( 3,354,028 ) ( 7,750,846 ) Total liabilities and stockholders' deficit $ 7,813,295 $ 10,208,264 See accompanying notes to financial statements. 3 Table of Contents Annovis Bio, Inc. (Unaudited) Three Months Ended March 31, 2024 2023 Operating expenses: Research and development $ 6,514,920 $ 7,786,056 General and administrative 1,294,887 2,183,660 Total operating expenses 7,809,807 9,969,716 Operating loss ( 7,809,807 ) ( 9,969,716 ) Other income: Interest income 44,168 232,535 Change in fair value of warrants 6,698,692 — Total other income 6,742,860 232,535 Net loss before income taxes ( 1,066,947 ) ( 9,737,181 ) Income tax expense (benefit) — — Net loss $ ( 1,066,947 ) $ ( 9,737,181 ) Net loss per share (Note

Notes to Financial Statements

Notes to Financial Statements (Unaudited) (1) Nature of Business, Going Concern and Management's Plan Annovis Bio, Inc. (the "Company" or "Annovis") was incorporated on April 29, 2008, under the laws of the State of Delaware. Annovis is a clinical-stage drug platform company addressing neurodegeneration, such as Alzheimer's disease ("AD") and Parkinson's disease ("PD"). The toxic cascade in neurodegeneration begins with high levels of neurotoxic proteins, which lead to impaired axonal transport, inflammation, death of nerve cells and loss of cognition and motor function. The Company's lead product candidate, Buntanetap, is a small molecule administered orally that is designed to attack neurodegeneration by entering the brain and inhibiting the translation of multiple neurotoxic proteins, thereby impeding the toxic cascade. High levels of neurotoxic proteins lead to impaired axonal transport, which is responsible for the communication between and within nerve cells. When that communication is impaired, the immune system is activated and attacks the nerve cells, eventually killing them. The Company has shown in its clinical and pre-clinical studies that Buntanetap lowered neurotoxic protein levels, leading to improved axonal transport, reduced inflammation, lower nerve cell death and improved function. Going Concern Since its founding, the Company has been engaged in organizational activities, including raising capital, as well as research and development activities. The Company has no t generated substantial revenues and has not yet achieved profitable operations, nor has it ever generated positive cash flows from operations. There is no assurance that profitable operations, if achieved, could be sustained on a continuing basis. The Company is subject to those risks associated with any clinical stage pharmaceutical company that has substantial expenditures for research and development. There can be no assurance that the Company's research and development pro

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View this 10-Q filing on SEC EDGAR