CervoMed Inc. Files Q3 2024 10-Q

TL;DR

CervoMed 10-Q filed. Q3 2024 financials out.

AI Summary

CervoMed Inc. filed its 10-Q for the period ending September 30, 2024. The company, formerly known as Diffusion Pharmaceuticals Inc., is involved in the pharmaceutical preparations industry. The filing details financial information and business operations for the third quarter of 2024.

Why It Matters

This filing provides investors with an update on CervoMed's financial performance and operational status for the third quarter of 2024, crucial for assessing the company's current health and future prospects.

Risk Assessment

Risk Level: medium — As a pharmaceutical company, CervoMed faces inherent risks related to drug development, regulatory approvals, and market competition, which are typical for the industry.

Key Players & Entities

• CervoMed Inc. (company) — Filer of the 10-Q
• Diffusion Pharmaceuticals Inc. (company) — Former name of CervoMed Inc.
• 20240930 (date) — End of the reporting period
• 20241112 (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
• $21.3 million — al Institutes of Health NIA Grant the $21.3 million grant awarded to us by the NIA to suppo
• $21.0 million — the NIA to support the RewinD-LB Trial, $21.0 million of which was awarded in January 2023 an
• $0.3 million — arded in January 2023 and an additional $0.3 million of which was awarded in August 2024 NI
• $39.24 — of common stock at a purchase price of $39.24 per share issued in connection with the

Filing Documents

• crvo20240930_10q.htm (10-Q) — 1016KB
• ex_744569.htm (EX-31.1) — 12KB
• ex_744570.htm (EX-31.2) — 12KB
• ex_744571.htm (EX-32.1) — 8KB
• ex_744572.htm (EX-32.2) — 8KB
• crvo20240930_10qimg001.jpg (GRAPHIC) — 7KB
• 0001437749-24-034344.txt ( ) — 5135KB
• crvo-20240930.xsd (EX-101.SCH) — 48KB
• crvo-20240930_def.xml (EX-101.DEF) — 324KB
• crvo-20240930_lab.xml (EX-101.LAB) — 281KB
• crvo-20240930_pre.xml (EX-101.PRE) — 349KB
• crvo-20240930_cal.xml (EX-101.CAL) — 30KB
• crvo20240930_10q_htm.xml (XML) — 740KB

– 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 31 Item 1:

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 31 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 31 Item 3:

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 31 Item 4:

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 31 Item 5:

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 31 Item 6:

EXHIBITS

ITEM 6. EXHIBITS 32

Signatures

Signatures 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 Sub 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) September 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 7,743,667 $ 7,792,846 Marketable securities 38,913,236 — Prepaid expenses and other current assets 1,888,879 1,256,501 Grant receivable 264,148 915,404 Total current assets 48,809,930 9,964,751 Other assets 73,937 7,770 Total assets $ 48,883,867 $ 9,972,521 Liabilities and Stockholders ' Equity Current liabilities: Accounts payable $ 1,082,435 $ 662,471 Accrued expenses and other current liabilities 2,163,936 1,933,276 Total liabilities 3,246,371 2,595,747 Commitments and Contingencies (Note 10) 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 September 30, 2024 and December 31, 2023, respectively 8,253 5,674 Additional paid-in capital 109,531,651 61,811,889 Accumulated other comprehensive income 123,162 — Accumulated deficit ( 64,025,570 ) ( 54,440,789 ) Total stockholders' equity 45,637,496 7,376,774 Total liabilities and stockholders' equity $ 48,883,867 $ 9,972,521 See accompanying notes to unaudited condensed consolidated interim financial statements 1 CervoMed Inc. Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Grant revenue $ 1,939,751 $ 1,526,482 $ 7,575,972 $ 4,654,294 Operating expenses: Research and development 5,125,097 1,791,487 11,711,746 5,583,149 General and administrative 2,210,927 2,410,124 6,850,536 4,403,590 Total operating expenses 7,336,024 4,201,611 18,562,282 9,986,739 Loss from operations ( 5,396,273 ) ( 2,675,129 ) ( 10,986,310 ) ( 5,332,445 ) Other income (ex

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