CNS Pharmaceuticals Files Q2 2024 10-Q

TL;DR

CNS Pharma Q2 10-Q is in. Check financials and trial updates.

AI Summary

CNS Pharmaceuticals, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported its financial results for the second quarter and the first half of the year. Specific financial figures for revenue, net income/loss, and cash flow are detailed within the filing, alongside updates on ongoing clinical trials and business development activities.

Why It Matters

This filing provides investors with crucial financial health and operational updates for CNS Pharmaceuticals, impacting investment decisions and market perception.

Risk Assessment

Risk Level: medium — As a pharmaceutical company, CNS Pharmaceuticals faces inherent risks related to drug development, regulatory approvals, and market competition.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-08-14 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• CNS Pharmaceuticals, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240814 (date) — Filing date of the 10-Q
• Houston, TX (location) — Company headquarters

FAQ

Key Financial Figures

• $0.001 — he registrant's common stock, par value $0.001 per share, as of August 14, 2024 was 32
• $3.62 — y exercisable, has an exercise price of $3.62 per share, and expire five years from t
• $12.65 — ue of common stock on measurement date $12.65 to $12.93 per share Risk free interes
• $12.93 — on stock on measurement date $12.65 to $12.93 per share Risk free interest rate (1)
• $64.00 — of Common Stock at an exercise price of $64.00 per share and a termination date of Oct
• $15.00 — s will have a reduced exercise price of $15.00 per share and a new termination date of

Filing Documents

• cns_i10q-063024.htm (10-Q) — 562KB
• cns_ex3101.htm (EX-31.1) — 7KB
• cns_ex3102.htm (EX-31.2) — 7KB
• cns_ex3201.htm (EX-32.1) — 3KB
• cns_ex3202.htm (EX-32.2) — 3KB
• 0001683168-24-005711.txt ( ) — 3282KB
• cnsp-20240630.xsd (EX-101.SCH) — 24KB
• cnsp-20240630_cal.xml (EX-101.CAL) — 25KB
• cnsp-20240630_def.xml (EX-101.DEF) — 128KB
• cnsp-20240630_lab.xml (EX-101.LAB) — 271KB
• cnsp-20240630_pre.xml (EX-101.PRE) — 226KB
• cns_i10q-063024_htm.xml (XML) — 336KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Balance Sheets as of June 30, 2024 and December 31, 2023 (unaudited) 3 Statements of Operations for the three and six months ended June 30, 2024 and 2023 (unaudited) 4 Statements of Stockholders' Equity (Deficit) for the six months ended June 30, 2024 and 2023 (unaudited) 5 Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (unaudited) 6 Notes to the Financial Statements (unaudited) 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 26

Signatures

Signatures 28 2

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS CNS Pharmaceuticals, Inc. Balance Sheets (Unaudited) June 30, 2024 December 31, 2023 Assets Current Assets: Cash and cash equivalents $ 1,491,559 $ 548,721 Deferred offering costs 16,750 202,859 Prepaid expenses and other current assets 637,087 839,590 Total current assets 2,145,396 1,591,170 Noncurrent Assets: Prepaid expenses, net of current portion 320,320 104,750 Property and equipment, net 3,553 4,933 Total noncurrent assets 323,873 109,683 Total Assets $ 2,469,269 $ 1,700,853 Liabilities and Stockholders' Equity (Deficit) Current Liabilities: Accounts payable and accrued expenses $ 6,639,622 $ 5,832,162 Notes payable 123,248 300,806 Total current liabilities 6,762,870 6,132,968 Total Liabilities 6,762,870 6,132,968 Commitments and contingencies – – Stockholders' Equity (Deficit): Preferred stock, $ 0.001 par value, 5,000,000 shares authorized and 0 shares issued and outstanding – – Common stock, $ 0.001 par value, 300,000,000 shares authorized and 1,443,274 and 124,306 shares issued and outstanding, respectively 1,443 124 Additional paid-in capital 71,347,360 65,134,664 Accumulated deficit ( 75,642,404 ) ( 69,566,903 ) Total Stockholders' Equity (Deficit) ( 4,293,601 ) ( 4,432,115 ) Total Liabilities and Stockholders' Equity (Deficit) $ 2,469,269 $ 1,700,853 See accompanying notes to the unaudited financial statements. 3 CNS Pharmaceuticals, Inc. Statements of Operations (Unaudited) Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Operating expenses: General and administrative $ 1,411,573 $ 1,179,833 $ 2,526,015 $ 2,538,585 Research and development 1,116,562 2,845,553 3,546,974 6,413,312 Total operating expenses 2,528,135 4,025,386 6,072,989 8,951,897 Loss from operations ( 2,528,135 ) ( 4,025,386 ) ( 6,072,989 ) ( 8,951,8

financial statements and footnotes

financial statements and footnotes. On April 30, 2024, the stockholders of the Company approved an amendment to the Company's amended and restated articles of incorporation (the "Amendment") to effect the reverse stock split at a ratio in the range of 1-for-2 to 1-for-50. The reverse stock split became effective on June 4, 2024 on a 1-for-50 basis without any change in the par value per share, which remained at $0.001. The reverse stock split has been retroactively adjusted throughout these

financial statements and footnotes

financial statements and footnotes. Note 2 – Summary of Significant Accounting Policies Basis of Presentation - The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United Stated of America ("U.S. GAAP") for interim unaudited financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The unaudited financial statements include all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary in order to make the condensed financial statements not misleading. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the final results that may be expected for the year ending December 31, 2024. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the period ended December 31, 2023 included in our Form 10-K filed with the SEC on April 1, 2024 ("Form 10-K"). Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. Liquidity and Going Concern - These financial statements have been prepared on a going concern basis, which assumes the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain equity financings to continue operations. The Company has a history of and expects to continue to report negative cash flows from operations and a net loss. Management believes that the cash on hand is sufficient to fund its planned operations into but not beyond the near term.