CervoMed Inc. Files Q2 2024 10-Q

TL;DR

**CervoMed Q2 10-Q filed. Financials for June 30, 2024, period out.**

AI Summary

CervoMed Inc. filed its 10-Q for the period ending June 30, 2024. The company, formerly known as Diffusion Pharmaceuticals Inc., RestorGenex Corp, and Stratus Media Group, Inc., is based in Boston, MA. The filing covers the second quarter of 2024 and includes financial data for the periods ending June 30, 2024, and June 30, 2023.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for CervoMed Inc. during the second quarter of 2024.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information which can reveal significant risks and opportunities for investors.

Key Numbers

• 20240630 — Period End Date (The end of the reporting period for this 10-Q filing.)
• 20240809 — Filing Date (The date CervoMed Inc. submitted this 10-Q to the SEC.)

Key Players & Entities

• CervoMed Inc. (company) — Filer of the 10-Q
• Diffusion Pharmaceuticals Inc. (company) — Former company name
• RestorGenex Corp (company) — Former company name
• Stratus Media Group, Inc (company) — Former company name
• 20240630 (date) — Period of report
• 20240809 (date) — Filing date

FAQ

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(
• $0 — mmon Stock the common stock, par value $0.001, of EIP issued and outstanding prio
• $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

Filing Documents

• crvo20240630_10q.htm (10-Q) — 987KB
• ex_711250.htm (EX-10.2) — 118KB
• ex_711251.htm (EX-10.3) — 39KB
• ex_711252.htm (EX-10.4) — 29KB
• ex_711253.htm (EX-31.1) — 11KB
• ex_711258.htm (EX-31.2) — 11KB
• ex_711259.htm (EX-32.1) — 7KB
• ex_711260.htm (EX-32.2) — 7KB
• crvologo1.jpg (GRAPHIC) — 7KB
• logosm.jpg (GRAPHIC) — 10KB
• 0001437749-24-025875.txt ( ) — 5248KB
• crvo-20240630.xsd (EX-101.SCH) — 47KB
• crvo-20240630_def.xml (EX-101.DEF) — 321KB
• crvo-20240630_lab.xml (EX-101.LAB) — 260KB
• crvo-20240630_pre.xml (EX-101.PRE) — 347KB
• crvo-20240630_cal.xml (EX-101.CAL) — 25KB
• crvo20240630_10q_htm.xml (XML) — 707KB

– 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 20 Item 3:

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 30 Item 4:

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 30 Part II

– OTHER INFORMATION

PART II – OTHER INFORMATION 32 Item 1:

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 32 Item 1A:

RISK FACTORS

ITEM 1A. RISK FACTORS 32 Item 2:

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 32 Item 3:

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 32 Item 4:

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 33 Item 5:

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 33 Item 6:

EXHIBITS

ITEM 6. EXHIBITS 33

Signatures

Signatures 34 i 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 as a wholly-owned subsidiary of Diffusion (the "Merger"). At the Effective Time (as defined below), each outstanding share of EIP capital stock was converted into the right to receive 0.1151 shares of the Company's common stock and, immediately following the Effective Time, Diffusion changed its name from "Diffusion Pharmaceuticals Inc." to "CervoMed Inc." 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 prior to the Merger. Accordingly, unless the context otherwise requires, all references in this Quarterly Report to (i) "CervoMed," the "Company," "we," "our," or "us," refer to the business of EIP for all dates and periods prior to August 16, 2023 and to the business of CervoMed for all dates and periods subsequent to (and including) August 16, 2023 and (ii) "common

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS CervoMed Inc. Condensed Consolidated Balance Sheets (unaudited) June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 10,009,217 $ 7,792,846 Marketable securities, current 35,082,502 — Prepaid expenses and other current assets 2,236,436 1,256,501 Grant receivable — 915,404 Total current assets 47,328,155 9,964,751 Marketable securities, non-current 5,806,260 — Other assets 56,234 7,770 Total assets $ 53,190,649 $ 9,972,521 Liabilities and Stockholders ' Equity Current liabilities: Accounts payable $ 725,854 $ 662,471 Deferred grant revenue 1,401,501 — Accrued expenses and other current liabilities 1,086,381 1,933,276 Total liabilities 3,213,736 2,595,747 Commitments and Contingencies (Note 9) Stockholders' Equity: Common stock, $ 0.001 par value: 1,000,000,000 shares authorized: 8,253,741 and 5,674,520 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 8,253 5,674 Additional paid-in capital 109,260,391 61,811,889 Accumulated other comprehensive loss ( 19,702 ) — Accumulated deficit ( 59,272,029 ) ( 54,440,789 ) Total stockholders' equity 49,976,913 7,376,774 Total liabilities and stockholders' equity $ 53,190,649 $ 9,972,521 See accompanying notes to unaudited condensed consolidated interim financial statements 1 CervoMed Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 (As Restated) 2024 2023 (As Restated) Grant revenue $ 3,288,971 $ 1,719,944 $ 5,636,221 $ 3,127,812 Operating expenses: Research and development 3,772,391 1,958,388 6,586,649 3,791,662 General and administrative 2,511,679 992,553 4,639,609 1,993,466 Total operating expenses 6,284,070 2,950,941 11,226,258 5,785,128 Loss from opera

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