IMMIX BIOPHARMA, INC. You should read the following discussion and analysis of our financial condition
and results of operations together with our unaudited interim consolidated
financial statements and the related notes appearing elsewhere in this Quarterly
Report on Form 10-Q. In addition to historical information, this discussion and
analysis contains forward-looking statements that involve risks, uncertainties
and assumptions. Our actual results may differ materially from those discussed
below. Factors that could cause or contribute to such differences include, but
are not limited to, those identified below, and those discussed in the section
titled "Risk Factors" included in our Annual Report on Form 10-K for the fiscal
year ended
Throughout this Quarterly Report on Form 10-Q, references to "we," "our," "us,"
the "Company," "Immix," or "Immix Biopharma" refer to
Overview
We are a clinical-stage pharmaceutical company focused on the development of
safe and effective therapies for patients with cancer and inflammatory diseases.
In
Since inception, we have devoted substantially all of our resources to developing product and technology rights, conducting research and development, organizing and staffing our Company, business planning and raising capital. We operate as one business segment and have incurred recurring losses, the majority of which are attributable to research and development activities and negative cash flows from operations. We have funded our operations primarily through the sale of convertible debt and sale of common stock through our IPO. Currently, our primary use of cash is to fund operating expenses, which consist primarily of research and development expenditures, and to a lesser extent, general and administrative expenditures. We expect to continue to incur significant expenses and operating losses for the foreseeable future as we advance our product candidates through all stages of development and clinical trials and, ultimately, seek regulatory approval. In addition, if we obtain regulatory approval for any of our product candidates, we expect to incur significant commercialization expenses related to product manufacturing, marketing, sales and distribution. Furthermore, we incur costs associated with operating as a public company, including significant legal, accounting, investor relations and other expenses. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our clinical trials and our expenses on other research and development activities.
AxioMx Master Services Agreement
On
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The COVID-19 Pandemic and its Impacts on Our Business
In
Results of Operations
Three Months Ended
General and Administrative Expense
General and administrative expense was
The expenses incurred in both periods were related to salaries, patent
maintenance costs and general accounting and other general consulting expenses,
which were higher for the three months ended
Research and Development Expense
Research and development expense was
The increased research and development expenses during the three months ended
Interest Expense
Interest expense was
Change in fair value of derivative liability
The change in fair value of derivative liability was
Provision for Income Taxes
Provision for income taxes for the three months ended
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Net loss for the three months ended
Liquidity and Capital Resources
Our primary use of cash is to fund operating expenses, which consist of research and development expenditures and various general and administrative expenses. Cash used to fund operating expenses is impacted by the timing of when we pay these expenses, as reflected in the change in our outstanding accounts payable, accrued expenses and prepaid expenses.
Because of the numerous risks and uncertainties associated with research, development and commercialization of pharmaceutical products, we are unable to estimate the exact amount of our operating capital requirements. Our future funding requirements will depend on many factors, including, but not limited to:
? the scope, timing, progress and results of discovery, pre-clinical
development, laboratory testing and clinical trials for our product
candidates;
? the costs of manufacturing our product candidates for clinical trials and in
preparation for regulatory approval and commercialization;
? the extent to which we enter into collaborations or other arrangements with
additional third parties in order to further develop our product candidates;
? the costs of preparing, filing and prosecuting patent applications,
maintaining and enforcing our intellectual property rights and defending
intellectual property-related claims;
? the costs and fees associated with the discovery, acquisition or in-license of
additional product candidates or technologies;
? expenses needed to attract and retain skilled personnel;
? the costs associated with being a public company;
? the costs required to scale up our clinical, regulatory and manufacturing
capabilities;
? the costs of future commercialization activities, if any, including
establishing sales, marketing, manufacturing and distribution capabilities,
for any of our product candidates for which we receive regulatory approval;
and
? revenue, if any, received from commercial sales of our product candidates,
should any of our product candidates receive regulatory approval.
We will need additional funds to meet our operational needs and capital requirements for clinical trials, other research and development expenditures, and general and administrative expenses. We currently have no credit facility or committed sources of capital.
Until such time, if ever, as we can generate substantial product revenue, we expect to finance our operations through a combination of equity offerings, debt financings, government or other third-party funding, commercialization, marketing and distribution arrangements, other collaborations, strategic alliances and licensing arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership interest will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder. If we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates, or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financings or other arrangements when needed, we may be required to delay, limit, reduce or terminate our research, product development or future commercialization efforts, or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.
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Cash used in operating activities
Net cash used in operating activities was
Cash used in investing activities
Net cash used in investing activities was
Cash provided by financing activities
Net cash provided by financing activities was
Our continuation as a going concern is dependent upon our ability to obtain
continued financial support from our stockholders, necessary equity financing to
continue operations and the attainment of profitable operations. As of
We will have additional capital requirements going forward and may need to seek additional financing, which may or may not be available to us.
JOBS Act
On
We have chosen to take advantage of the extended transition periods available to emerging growth companies under the JOBS Act for complying with new or revised accounting standards until those standards would otherwise apply to private companies provided under the JOBS Act. As a result, our financial statements may not be comparable to those of companies that comply with public company effective dates for complying with new or revised accounting standards.
Subject to certain conditions set forth in the JOBS Act, as an "emerging growth
company," we intend to rely on certain of these exemptions, including, without
limitation, (i) providing an auditor's attestation report on our internal
controls over financial reporting pursuant to Section 404(b) of the
Sarbanes-Oxley Act of 2002, as amended, and (ii) complying with the requirement
adopted by the
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