Quarterly report pursuant to Section 13 or 15(d)

Liquidity

v3.20.2
Liquidity
3 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Liquidity

NOTE 2 — LIQUIDITY

 

The Company has suffered recurring losses from operations and has a net working capital deficit and an accumulated deficit at June 30, 2020, and the Company continued to incur losses subsequent to the balance sheet date. The Company’s reverse recapitalization transaction with Ritter Pharmaceuticals, Inc. (“Ritter”) closed in May 2020 together with an associated new equity capital raise of approximately $4.0 million, and approximately $1.9 million in convertible notes payable were converted into shares of the Company’s capital stock. In July and August 2020, the Company raised an additional $18.0 million through two Securities Purchase Agreements with a single institutional investor (see Note 13). Planned future research and development activities, capital expenditures, clinical and pre-clinical testing, and commercialization activities of the Company’s products will require significant additional financing. Additional financing may not be available on acceptable terms or at all. There is no assurance that profitable operations will ever be achieved, or if achieved, could be sustained on a continuing basis.