CervoMed Inc. Files 10-Q for Q1 2024, Reporting on Financials and Equity

TL;DR

<b>CervoMed Inc. has filed its Q1 2024 10-Q, detailing financial performance, equity changes, and subsequent events.</b>

AI Summary

CervoMed Inc. (CRVO) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. CervoMed Inc. filed a 10-Q for the period ending March 31, 2024. The filing includes financial data for Q1 2024 and comparative periods. Details on equity instruments, including warrants and stock options, are provided. Subsequent events, such as private placements and warrant issuances, are noted. The company previously operated under the names Diffusion Pharmaceuticals Inc., RestorGenex Corp, and Stratus Media Group, Inc.

Why It Matters

For investors and stakeholders tracking CervoMed Inc., this filing contains several important signals. Investors can assess the company's financial health and operational progress during the first quarter of 2024. The filing provides insights into the company's capital structure and potential future dilution from equity issuances.

Risk Assessment

Risk Level: medium — CervoMed Inc. shows moderate risk based on this filing. The company has a history of name changes and operates in the pharmaceutical preparations industry, which is subject to significant regulatory and market risks.

Analyst Insight

Review the detailed financial statements and risk factors to understand CervoMed's current financial position and future prospects.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2024-05-14 — Filing Date (10-Q filing)
• 2023-01-01 — Comparative Period Start Date (Q1 2023 financials)
• 2023-03-31 — Comparative Period End Date (Q1 2023 financials)

Key Players & Entities

• CervoMed Inc. (company) — Filer name
• CRVO (company) — Ticker symbol
• 2024-03-31 (date) — Reporting period end date
• 2024-05-14 (date) — Filing date
• Diffusion Pharmaceuticals Inc. (company) — Former company name
• RestorGenex Corp (company) — Former company name
• Stratus Media Group, Inc (company) — Former company name
• 20160115 (date) — Date of name change

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.
• Market Competition [medium — market]: CervoMed operates in a competitive market with established players and potential new entrants, which could affect market share and pricing.
• Financing Risks [medium — financial]: The company may require additional funding to support its operations and development activities, and there is no assurance that such funding will be available on favorable terms.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-14: Filing Date — Date the 10-Q was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive overview of a company's financial performance during a specific quarter.)

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share CRVO NASDAQ Capital Marke
• $149.4 m — e gross proceeds of up to approximately $149.4 million, completed on April 1, 2024 401(
• $21 million — al Institutes of Health NIA Grant the $21 million grant awarded to us by the NIA in Janua
• $39.24 — of common stock at a purchase price of $39.24 per share issued in connection with the
• $50.0 m — 24 Private Placement were approximately $50.0 million, before deducting offering fees a
• $99.4 million — l gross proceeds of up to approximately $99.4 million may be received if the Series A Warrant

Filing Documents

• crvo20240331_10q.htm (10-Q) — 710KB
• ex_673636.htm (EX-31.1) — 11KB
• ex_673637.htm (EX-31.2) — 10KB
• ex_673638.htm (EX-32.1) — 6KB
• ex_673639.htm (EX-32.2) — 6KB
• image1.jpg (GRAPHIC) — 13KB
• 0001437749-24-016615.txt (&nbsp;) — 3944KB
• crvo-20240331.xsd (EX-101.SCH) — 43KB
• crvo-20240331_def.xml (EX-101.DEF) — 291KB
• crvo-20240331_lab.xml (EX-101.LAB) — 227KB
• crvo-20240331_pre.xml (EX-101.PRE) — 312KB
• crvo-20240331_cal.xml (EX-101.CAL) — 22KB
• crvo20240331_10q_htm.xml (XML) — 468KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1 Item 1:

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 1 Item 2:

MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 18 Item 3:

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 26 Item 4:

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 26 Part II

– OTHER INFORMATION

PART II – OTHER INFORMATION 27 Item 1:

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 27 Item 1A:

RISK FACTORS

ITEM 1A. RISK FACTORS 27 Item 2:

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 27 Item 3:

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 27 Item 4:

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 27 Item 5:

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 27 Item 6:

EXHIBITS

ITEM 6. EXHIBITS 28

Signatures

Signatures 29 i Table of Contents INTRODUCTORY NOTES Note Regarding Company References and Other Defined Terms As previously disclosed in our Current Report on Form 8-K filed with the SEC on August 17, 2023, on August 16, 2023, the Delaware corporation formerly known as "Diffusion Pharmaceuticals Inc." completed a merger transaction in accordance with the terms and conditions of the Agreement and Plan of Merger, dated March 30, 2023 (the "Merger Agreement") by and among Diffusion Pharmaceuticals Inc. ("Diffusion"), Dawn Merger Inc., a wholly-owned subsidiary of Diffusion ("Merger Sub") and EIP Pharma, Inc. ("EIP"), pursuant to which Merger Sub merged with and into EIP, with EIP surviving the Merger a wholly-owned subsidiary of Diffusion (the "Merger"). Additionally, on August 16, 2023, Diffusion changed its name from "Diffusion Pharmaceuticals Inc." to "CervoMed Inc." Prior to the Effective Time (as defined below), in connection with the transactions contemplated by the Merger Agreement, Diffusion effected a reverse stock split of the Company's common stock, par value $0.001 per share ("common stock"), at a ratio of 1-for-1.5 (the "Reverse Stock Split"). At the Effective Time, each outstanding share of EIP capital stock was converted into the right to receive 0.1151 shares of Company common stock. For accounting purposes, the Merger is treated as a reverse recapitalization under US GAAP and EIP is considered the accounting acquirer. Accordingly, EIP's historical results of operations are deemed the Company's historical results of operations for all periods prior to the Merger and, for all periods following the Merger, the results of operations of the combined company will be included in the Company's consolidated financial statements. Following the completion of the Merger, the business conducted by the Company became primarily the business conducted by EIP. Accordingly, unless the context otherwise requires, all references in this Quarterly Report to

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS CervoMed Inc. Condensed Consolidated Balance Sheets (unaudited) March 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 6,369,172 $ 7,792,846 Deferred offering costs 247,671 — Prepaid expenses 1,348,679 1,256,501 Grant receivable — 915,404 Total current assets 7,965,522 9,964,751 Other assets 31,926 7,770 Total assets $ 7,997,448 $ 9,972,521 Liabilities and Stockholders ' Equity Current liabilities: Accounts payable 679,739 662,471 Deferred grant revenue 572,475 — Accrued expenses and other current liabilities 1,408,856 1,933,276 Total liabilities 2,661,070 2,595,747 Commitments and Contingencies (Note 8) Stockholders' Equity: Series A preferred stock $ 0.001 par value; 30,000,000 authorized at March 31, 2024 and December 31, 2023, 0 shares issued and outstanding at March 31, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value: 1,000,000,000 shares authorized: 6,170,479 and 5,674,520 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 6,170 5,674 Additional paid-in capital 62,285,332 61,811,889 Accumulated deficit ( 56,955,124 ) ( 54,440,789 ) Total stockholders' equity 5,336,378 7,376,774 Total liabilities and stockholders' equity $ 7,997,448 $ 9,972,521 See accompanying notes to unaudited condensed consolidated interim financial statements 1 Table of Contents CervoMed Inc. Condensed Consolidated Statements of Operations (unaudited) Three Months Ended March 31, 2024 2023 (As Restated) Grant revenue $ 2,347,250 $ 1,407,868 Operating expenses: Research and development 2,814,258 1,833,274 General and administrative 2,127,930 1,000,913 Total operating expenses 4,942,188 2,834,187 Loss from operations ( 2,594,938 ) ( 1,426,319 ) Other income (expense): Other income (expense) ( 30 ) 856,579 Interest income 80

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View this 10-Q filing on SEC EDGAR