CNS Pharmaceuticals Files Q3 2024 10-Q

TL;DR

CNS Pharmaceuticals filed its Q3 2024 10-Q, showing financial and operational updates.

AI Summary

CNS Pharmaceuticals, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported financial results for the third quarter and the first nine months of 2024, detailing its operational and financial standing. Key financial data and disclosures relevant to investors are presented in this filing.

Why It Matters

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

Risk Assessment

Risk Level: medium — As a pharmaceutical company, CNS Pharmaceuticals faces inherent risks related to drug development, regulatory approvals, and market competition, which are detailed in its SEC filings.

Key Numbers

• Q3 2024 — Reporting Period (Financial results for the third quarter of 2024 are detailed.)
• First nine months of 2024 — Reporting Period (Financial results for the year-to-date period ending September 30, 2024.)

Key Players & Entities

• CNS Pharmaceuticals, Inc. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241114 (date) — Filing date
• 77027 (dollar_amount) — ZIP code for business and mailing address

FAQ

Key Financial Figures

• $0.001 — he registrant's common stock, par value $0.001 per share, as of November 14, 2024 was
• $250,000 — xcess of the federally insured limit of $250,000. The amount in excess of the FDIC insur
• $15.00 — ck and accompanying Common Warrants was $15.00 and the combined purchase price of one
• $14.95 — nt and accompanying Common Warrants was $14.95. In connection with the offering, the C
• $3.75 — accompanying June 14 Common Warrant was $3.75. The closing of this offering and priva
• $3.62 — y exercisable, has an exercise price of $3.62 per share, and expire five years from t
• $2.45 — accompanying June 26 Common Warrant was $2.45. The closing of the offering and privat
• $2.32 — y exercisable, has an exercise price of $2.32 per share, and expire five years from t
• $1.39 — d accompanying July 3 Common Warrant is $1.39. The closing of this offering and priva
• $1.26 — y exercisable, has an exercise price of $1.26 per share, and expire five years from t
• $5.2 million — initial aggregate sales price of up to $5.2 million. On July 30, 2024, the Company increase
• $25.0 million — ld under the AGP ATM Sales Agreement to $25.0 million (not including the original $5.2 millio
• $15.0 million — l trial for a licensed product – either $15.0 million or 411,132 shares of Company common sto
• $30.0 million — ication for a licensed product – either $30.0 million or 822,264 shares of Company common sto
• $45.0 million — d States of a licensed product – either $45.0 million or 1,233,395 shares of Company common s

Filing Documents

• cns_i10q-093024.htm (10-Q) — 543KB
• 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
• 0001683168-24-008125.txt ( ) — 3303KB
• cnsp-20240930.xsd (EX-101.SCH) — 24KB
• cnsp-20240930_cal.xml (EX-101.CAL) — 27KB
• cnsp-20240930_def.xml (EX-101.DEF) — 123KB
• cnsp-20240930_lab.xml (EX-101.LAB) — 272KB
• cnsp-20240930_pre.xml (EX-101.PRE) — 221KB
• cns_i10q-093024_htm.xml (XML) — 345KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Balance Sheets as of September 30, 2024 and December 31, 2023 (unaudited) 3 Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (unaudited) 4 Statements of Stockholders' Equity (Deficit) for the nine months ended September 30, 2024 and 2023 (unaudited) 5 Statements of Cash Flows for the nine months ended September 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 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 3. Defaults Upon Senior Securities 27 Item 4. Mine Safety Disclosures 27 Item 5. Other Information 27 Item 6. Exhibits 28

Signatures

Signatures 29 2

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS CNS Pharmaceuticals, Inc. Balance Sheets (Unaudited) September 30, 2024 December 31, 2023 Assets Current Assets: Cash and cash equivalents $ 6,973,124 $ 548,721 Deferred offering costs 26,932 202,859 Prepaid expenses and other current assets 388,042 839,590 Total current assets 7,388,098 1,591,170 Noncurrent Assets: Prepaid expenses, net of current portion 18,373 104,750 Property and equipment, net 2,802 4,933 Total noncurrent assets 21,175 109,683 Total Assets $ 7,409,273 $ 1,700,853 Liabilities and Stockholders' Equity (Deficit) Current Liabilities: Accounts payable and accrued expenses $ 4,025,742 $ 5,832,162 Notes payable 31,187 300,806 Total current liabilities 4,056,929 6,132,968 Total Liabilities 4,056,929 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 33,446,403 and 124,306 shares issued and outstanding, respectively 33,446 124 Additional paid-in capital 84,567,236 65,134,664 Accumulated deficit ( 81,248,338 ) ( 69,566,903 ) Total Stockholders' Equity (Deficit) 3,352,344 ( 4,432,115 ) Total Liabilities and Stockholders' Equity (Deficit) $ 7,409,273 $ 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 Nine Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Operating expenses: General and administrative $ 1,383,913 $ 1,123,268 $ 3,909,928 $ 3,661,853 Research and development 4,244,993 3,410,572 7,791,967 9,823,884 Total operating expenses 5,628,906 4,533,840 11,701,895 13,485,737 Loss from operations ( 5,628,906 ) ( 4,533,840 ) ( 11,70

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 nine months ended September 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