Skye Bioscience, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Skye Bioscience, Inc. filed its 2023 annual report (10-K) detailing financial performance and corporate history, including past name changes and a recent transaction.</b>

AI Summary

Skye Bioscience, Inc. (SKYE) filed a Annual Report (10-K) with the SEC on March 22, 2024. Skye Bioscience, Inc. filed its 2023 Form 10-K on March 22, 2024, reporting on the fiscal year ending December 31, 2023. The company was formerly known as Emerald Bioscience, Inc. and Nemus Bioscience, Inc., with name changes occurring in 2019 and 2014 respectively. Skye Bioscience is incorporated in Nevada and operates in the Pharmaceutical Preparations industry (SIC 2834). The filing includes financial data for the fiscal years 2023 and 2022, with specific details on common stock, additional paid-in capital, and retained earnings. A subsequent event noted is a transaction occurring on January 31, 2024, related to BirdRock Bio Sub Inc. BRB.

Why It Matters

For investors and stakeholders tracking Skye Bioscience, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Skye Bioscience's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's current standing and future prospects. The inclusion of historical company names and the mention of a recent transaction offer context into Skye Bioscience's evolution and potential strategic moves, which could impact its market position and investor confidence.

Risk Assessment

Risk Level: medium — Skye Bioscience, Inc. shows moderate risk based on this filing. The company's financial performance and operational details are presented in a standard 10-K format, but specific revenue and profitability figures are not detailed in the provided header information, making a full financial risk assessment challenging without the full report.

Analyst Insight

Investors should review the full 10-K filing for detailed financial statements, risk factors, and management's discussion and analysis to fully understand Skye Bioscience's financial health and strategic direction.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-22 — Filing Date (Date the 10-K was filed)
• 2834 — SIC Code (Standard Industrial Classification for Pharmaceutical Preparations)
• NV — State of Incorporation (Nevada)
• 2019-03-25 — Name Change Date (Date of change from Emerald Bioscience, Inc.)
• 2014-10-30 — Name Change Date (Date of change from Nemus Bioscience, Inc.)
• 2024-01-31 — Subsequent Event Date (Date of a transaction involving BirdRock Bio Sub Inc. BRB)

Key Players & Entities

• Skye Bioscience, Inc. (company) — Filer name
• Emerald Bioscience, Inc. (company) — Former company name
• Nemus Bioscience, Inc. (company) — Former company name
• BirdRock Bio Sub Inc. BRB (company) — Entity involved in a subsequent event transaction
• 2023-12-31 (date) — Fiscal year end
• 2024-03-22 (date) — Filing date
• 2024-01-31 (date) — Date of a subsequent event transaction
• San Diego (location) — Business address city

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-22: 10-K Filing Date — Date Skye Bioscience, Inc. submitted its annual report.

Key Financial Figures

• $0.001 — g) of the Act: Common Stock, Par Value $0.001 (Title of Class) Indicate by check ma
• $5.25 — , 2023, based upon the closing price of $5.25 per share of the registrant's common st
• $4.7 billion — tion for obesity had sales grow 442% to $4.7 billion in 2023, at the same time Novo Nordisk
• $20 billion — class of drugs is projected to grow to $20 billion in sales by 2030. Despite this unpreced

Filing Documents

• skye-20231231.htm (10-K) — 2042KB
• skye-planofmergerandreorga.htm (EX-2.9) — 692KB
• skye-ararticlesofincorpora.htm (EX-3.1) — 68KB
• skye-descriptionofsecuriti.htm (EX-4.14) — 18KB
• skye-subsidiariesoftheregi.htm (EX-21.1) — 8KB
• skye-consentofmarcumllpxex.htm (EX-23.1) — 2KB
• skye-20231231xex311.htm (EX-31.1) — 9KB
• skye-20231231xex312.htm (EX-31.2) — 9KB
• skye-20231231xex321.htm (EX-32.1) — 5KB
• skye-20231231xex322.htm (EX-32.2) — 5KB
• skye-compensationrecoupmen.htm (EX-97.1) — 22KB
• skye-20231231_g1.jpg (GRAPHIC) — 573KB
• 0001516551-24-000048.txt (&nbsp;) — 13008KB
• skye-20231231.xsd (EX-101.SCH) — 91KB
• skye-20231231_cal.xml (EX-101.CAL) — 103KB
• skye-20231231_def.xml (EX-101.DEF) — 536KB
• skye-20231231_lab.xml (EX-101.LAB) — 888KB
• skye-20231231_pre.xml (EX-101.PRE) — 711KB
• skye-20231231_htm.xml (XML) — 1285KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 54

C

Item 1 C . Cybersecurity 54 Item 2.

Properties

Properties 55 Item 3.

Legal Proceedings

Legal Proceedings 55 Item 4. Mine Safety Disclosures 55 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 56 Item 6.

Selected Financial Data

Selected Financial Data 56 Item 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 56 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 63 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 63 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 63 Item 9A.

Controls and Procedures

Controls and Procedures 63 Item 9B. Other Information 64 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 48 PART III Item 10. Directors, Executive Officers and Corporate Governance 65 Item 11.

Executive Compensation

Executive Compensation 71 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 76 Item 13. Certain Relationships and Related Transactions, and Director Independence 79 Item 14. Principal Accountant Fees and Services 81 PART IV Item 15. Exhibits, Financial Statement Schedules 83 Item 16. Form 10-K Summary 62

Signatures

Signatures 2 Table of Contents PART I As used in this report, unless otherwise indicated, the terms "we," "us," "our," "Company" and "Skye Bioscience" refer to Skye Bioscience, Inc., a Nevada corporation, together with its wholly owned subsidiaries, (i) Nemus, a California corporation, (ii) SKYE Bioscience Pty Ltd ("SKYE Bioscience Australia"), an Australian proprietary limited company, (iii) Emerald Health Therapeutics, Inc. ("EHT") a corporation governed by the Business Corporations Act (British Columbia), (iv) Bird Rock Bio Sub, Inc. ("BRB"), a Delaware corporation, (v) Ruiyi Acquisition Corp, a Delaware corporation and (vi) Avalite Sciences, Inc. ("AVI"), a corporation governed by the Business Corporations Act (British Columbia).

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS the results of our research and development activities, including uncertainties relating to the discovery of potential product candidates and the preclinical and clinical testing of our product candidates the timing, progress and results of our clinical studies for SBI-100 Ophthalmic Emulsion (SBI-100 OE) and nimacimab and our estimates regarding the market opportunity for SBI-100 OE and nimacimab if approved; the early stage of our product candidates presently under development; our ability to obtain and, if obtained, maintain regulatory approval of our current product candidates, and any of our other future product candidates, and any related restrictions, limitations, and/or warnings in the label of any approved product candidate our ability to retain or hire key scientific or management personnel our ability to protect our intellectual property rights that are valuable to our business, including patent and other intellectual property rights our dependence on University of Mississippi, third p

Business

Item 1. Business . Overview We are a clinical stage biopharmaceutical company with a mission to pioneer the development of new medicines that unlock the pharmaceutical potential of the endocannabinoid system ("ECS"). Our clinical assets focus on the modulation of cannabinoid receptor 1 ("CB1") to provide novel treatments and alternatives for diseases caused by metabolic disorders, inflammation, fibrosis and neurodegeneration, such as obesity and glaucoma. Our Phase 2 clinical candidates include nimacimab, a negative allosteric modulating antibody that inhibits peripheral CB1 receptors, currently being developed for the treatment of obesity and SBI-100 Ophthalmic Emulsion ("SBI-100 OE"), a CB1 agonist (activator), currently being developed for the treatment of glaucoma and ocular hypertension. Both of these differentiated drug candidates are focused on distinct opportunities with large unmet needs: 1) Obesity - where a patients now need additional treatments that have the ability to preserve muscle tissue and improve metabolic dysfunction either as new monotherapies or in combination which existing treatments, and 2) Glaucoma - where novel drugs with distinct mechanisms are needed, especially those that are safe, well-tolerated and have neuroprotective potential. We have filed and successfully opened an Investigational New Drug ("IND") application with the U.S. Food and Drug Administration ("FDA") for nimacimab in obesity, and we plan to launch a Phase 2 clinical trial to evaluate nimacimab for the treatment of obesity as monotherapy compared against placebo, as well as evaluate the combination of nimacimab and a GLP-1 agonist in Q3 2024, with final data in late 2025. We are also continuing clinical development of SBI-100 OE for glaucoma and ocular hypertension, with the first data read out from our recently completed Phase 2a trial anticipated in Q2 2024. The Endocannabinoid System Nimacimab: Peripheral CB1 Inhibitor The exploration of the CB1 pathway as a the

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View this 10-K filing on SEC EDGAR