Salarius Pharmaceuticals Files 2023 Annual Report on Form 10-K

TL;DR

<b>Salarius Pharmaceuticals filed its 2023 10-K, detailing corporate information and historical transactions.</b>

AI Summary

Salarius Pharmaceuticals, Inc. (DCOY) filed a Annual Report (10-K) with the SEC on March 22, 2024. Salarius Pharmaceuticals, Inc. filed its 10-K for the fiscal year ending December 31, 2023. The company's principal executive offices are located at 2450 Holcombe Blvd, Suite J-608, Houston, TX 77021. Salarius Pharmaceuticals was formerly known as Flex Pharma, Inc., with a name change effective July 30, 2014. The filing indicates various stock and warrant transactions occurred throughout 2021, 2022, and 2023. Key dates related to securities purchases and offerings are noted, including May 11, 2023, and April 22, 2022.

Why It Matters

For investors and stakeholders tracking Salarius Pharmaceuticals, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Salarius Pharmaceuticals' financial and operational status for the fiscal year 2023, which is crucial for investors to assess the company's performance and outlook. The detailed information on past stock and warrant activities, including private placements and at-the-market offerings, offers insights into the company's capital-raising strategies and potential dilution effects for shareholders.

Risk Assessment

Risk Level: medium — Salarius Pharmaceuticals, Inc. shows moderate risk based on this filing. The company's financial health and operational status are not detailed in this header information, requiring a deeper dive into the full 10-K to assess its risk profile.

Analyst Insight

Review the full 10-K filing to understand Salarius Pharmaceuticals' financial performance, strategic initiatives, and potential risks for the fiscal year 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-22 — Filing Date (Filed as of date)
• 2834 — SIC Code (Standard Industrial Classification for Pharmaceutical Preparations)
• DE — State of Incorporation (Delaware)
• 001-36812 — SEC File Number (SEC file number for the company)

Key Players & Entities

• Salarius Pharmaceuticals, Inc. (company) — Filer name
• Flex Pharma, Inc. (company) — Former company name
• 2450 Holcombe Blvd, Suite J-608, Houston, TX 77021 (location) — Business and mailing address
• 2023-12-31 (date) — Conformed period of report
• 2024-03-22 (date) — Filed as of date
• University of Utah Research Foundation (company) — Mentioned in relation to a date

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Defines the reporting period for the 10-K.
• 2024-03-22: Filing Date — Date the 10-K was officially submitted to the SEC.
• 2014-07-30: Name Change — Date Salarius Pharmaceuticals changed its name from Flex Pharma, Inc.

Key Financial Figures

• $0.0001 — nding shares of common stock, par value $0.0001 per share (the Reverse Stock Split), 2

Filing Documents

• flks-20231231.htm (10-K) — 951KB
• a2023eyconsent.htm (EX-23.1) — 5KB
• slrx20231231ex-311.htm (EX-31.1) — 10KB
• slrx12312023-312expfocerti.htm (EX-31.2) — 10KB
• slrx12312023-321ex906peoce.htm (EX-32.1) — 5KB
• slrx12312023-322ex906pfoce.htm (EX-32.2) — 5KB
• slrx-compensationcommittee.htm (EX-97) — 38KB
• flks-20231231_g1.gif (GRAPHIC) — 59KB
• 0001615219-24-000025.txt (&nbsp;) — 3905KB
• flks-20231231.xsd (EX-101.SCH) — 24KB
• flks-20231231_cal.xml (EX-101.CAL) — 37KB
• flks-20231231_def.xml (EX-101.DEF) — 87KB
• flks-20231231_lab.xml (EX-101.LAB) — 331KB
• flks-20231231_pre.xml (EX-101.PRE) — 220KB
• flks-20231231_htm.xml (XML) — 266KB

Business

Business 9 Item 1A.

Risk Factors

Risk Factors 25 Item 1B. Unresolved Staff Comments 49 Item 1C Cybersecurity 50 Item 2.

Properties

Properties 50 Item 3.

Legal Proceedings

Legal Proceedings 50 Item 4. Mine Safety Disclosures 50 Part II 50 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 50 Item 6. Reserved 50 Item 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations Overview 52 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 55 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 56 Index to Financial Statements 56 Report of Independent Registered Public Accounting Firm 57 Consolidated Balance Sheets 59 Consolidated Statements of Operations 60 Consolidated Statements of Cash Flows 61 Consolidated Statement of Stockholders' Equity (Deficit) 62

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 63 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 72 Item 9A.

Controls and Procedures

Controls and Procedures 72 Item 9B. Other Information 72 Part III 73 Item 10. Directors, Executive Officers and Corporate Governance 73 Item 11.

Executive Compensation

Executive Compensation 73 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 73 Item 13. Certain Relationships and Related Transactions, and Director Independence 73 Item 14. Principle Accounting Fees and Services 73 Part IV 74 Item 15. Exhibits, Financial Statement Schedules 74 Item 16. Form 10- K Summary 76

SIGNATURES

SIGNATURES 77 October 14, 2022, the Company filed a Certificate of Amendment to the Company's restated certificate of incorporation with the Secretary of State of the State of Delaware to effect a 1-for-25 reverse stock split of the Company's issued and outstanding shares of common stock, par value $0.0001 per share (the Reverse Stock Split), 2 Table of Contents which became effective on October 14, 2022. All historical share and per share amounts reflected throughout this report have been adjusted to reflect the Reverse Stock Split. 3 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Various statements made in this Annual Report on Form 10-K are forward-looking and involve risks and uncertainties. All statements that address activities, events or developments that we intend, expect or believe may occur in the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements give our current expectations or forecasts of future events and are not statements of historical or current facts. These statements include, among others, statements about: the Company's ability to continue as a going concern and its ability to support it operations into the first half of 2025; the Company's expectations regarding the exploration of strategic alternatives; the Company's strategy, including significantly reducing its expenditures on operational and research and development activities and taking other cost savings measures in connection with the Company's ongoing review of strategic alternatives; the Company's expectations regarding the benefits of its cost-saving measures; the Company's ability to preserve capital while it continues to await clinical data and assess potential strategic alternatives; the expected timing for incurring costs associated with the cost savings measures; the Company's expectations re

Business

Item 1. Business References to "Salarius," the "Company," "we," "us" and "our" refer to Salarius Pharmaceuticals, Inc. and its consolidated subsidiaries following the completion of the Merger and Salarius Pharmaceuticals, LLC prior to the completion of the Merger. References to "Notes" refer to the Notes to Consolidated Financial Statements included herein (refer to Item 8). Overview We are a clinical-stage biopharmaceutical company focused on developing treatments for parties with cancers in need of new treatment options . Specifically, we are concentrated on developing treatments for cancers caused by dysregulated gene expression, i.e., genes which are incorrectly turned on or off. We have two primary classes of drugs that address gene dysregulation: protein inhibitors and targeted protein degraders. Our technologies have the potential to work in both liquid and solid tumors. Our current pipeline consists of two primary compounds: 1) SP-3164, a small molecule protein degrader, and 2) seclidemstat (SP-2577), a small molecule inhibitor. Recent Developments On July 11, 2023 we announced that the U.S. Food & Drug Administration (FDA) had cleared our investigational new drug (IND) application to treat relapsed/refractory non-Hodgkin lymphoma patients with SP-3164. On August 8, 2023, we announced that we retained Canaccord Genuity, LLC to lead a comprehensive review of strategic alternatives focusing on maximizing shareholder value, including but not limited to, an acquisition, merger, reverse merger, divestiture of assets, licensing, or other strategic transactions involving our company. In connection with the evaluation of strategic alternatives and in order to extend our resources, we implemented a cost-savings plan that includes a reduction in workforce by over 50% of our positions, with remaining employees focusing primarily on limited general operating activities, completing the FDA process to determine the clinical trial registration requirements for the se

View Full Filing

View this 10-K filing on SEC EDGAR