The following discussion and analysis should be read in conjunction with the Condensed Financial Statements and Notes thereto included elsewhere in this Quarterly Report. This discussion contains certain forward-looking statements that involve risks and uncertainties. The Company's actual results and the timing of certain events could differ materially from those discussed in these forward-looking statements as a result of certain factors, including, but not limited to, those set forth herein and elsewhere in this Quarterly Report and in the Company's other filings with the SEC. See "Cautionary Note Regarding Forward Looking Statements" below.

As used in this Management's Discussion and Analysis of Financial Condition and Results of Operations, unless otherwise indicated, the terms "the Company", "we", "us", "our" and similar terminology refer to Inhibitor Therapeutics, Inc.

Critical Accounting Policies

See Note 3 of the Notes to Condensed Financial Statements included in Item 1 of this Quarterly Report for a summary of significant accounting policies and information on recently issued accounting pronouncements.

Results of Operations

For the three months ended March 31, 2021 compared to the three months ended March 31, 2020

Research and Development Expenses. We recognized less than $0.01 million in research and development expenses during the three months ended March 31, 2021 compared to approximately $0.1 million for the three months ended March 31, 2020. Research and development expenses for the three months ended March 31, 2020 primarily included salary expenses and expenses related to follow-up with the FDA on the Investigational New Drug application for use of SUBA-Itraconazole for prostate cancer that was cleared by the FDA in late 2019. The expenses for the three months ended March 31, 2021 primarily included patent expenses and minimal expenses related to filing the FDA annual report related to the prostate cancer program.

General and Administrative Expenses. We recognized approximately $0.2 million in general and administrative expenses during the three months ended March 31, 2021 compared to $0.3 million for the three months ended March 31, 2020. General and administrative expenses consisted primarily of professional fees, compensation and related costs for corporate administrative staff and Board members including stock compensation expense. The decrease is primarily due to the reduction of salaries and Board compensation in the three months ended March 31, 2021 compared to the three months ended March 31, 2020.

Gain on loan forgiveness. We recognized $41,600 in gain on loan forgiveness during the three months ended March 31, 2021 when our PPP Loan was forgiven on March 31, 2021. There was no such gain in the three months ended March 31, 2020.

Liquidity and Capital Resources

We had approximately $0.1 million cash on hand at March 31, 2021. Based on our current operational plan and budget, including anticipated additional proceeds from the Facility, we expect that we will have sufficient cash to manage our business into the third quarter of 2021, although this estimation assumes we do not begin any clinical trials, acquire other drug development opportunities or otherwise face unexpected events, costs or contingencies, any of which could affect our cash requirements. Available resources may be consumed more rapidly than anticipated, potentially resulting in the need for additional funding.

We intend to seek additional financing for our research and development, commercialization and distribution efforts and our working capital needs primarily through:





     •    proceeds from public and private financings (including most recently,
          financials from our majority shareholder, Mayne Pharma) and, potentially,
          from other strategic transactions;




     •    royalty revenue from Mayne Pharma from sales of SUBA-Itraconazole BCCNS
          upon and assuming approval by FDA (after earned royalties have been
          applied to any royalties advanced under Third Amended SLA, although it is
          uncertain if and when such FDA approval will be obtained);




     •    proceeds from the exercise of outstanding warrants previously issued in
          private financings (including, potentially, warrants held by our majority
          shareholder, Mayne Pharma);




     •    potential partnerships with other pharmaceutical companies to assist in
          the supply, manufacturing and distribution of our products for which we
          would expect to receive upfront milestone and royalty payments;




     •    potential licensing and joint venture arrangements with third parties,
          including other pharmaceutical companies where we would receive funding
          based on out-licensing our product; and




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     •    government or private foundation grants or loans which would be awarded
          to us to further develop our current and future therapies, or government
          payroll protection or similar programs available as a result of the novel
          coronavirus outbreak.

However, there is a significant risk that none of these plans will be implemented in a manner necessary to sustain our operations for beyond the third quarter of 2021and that we will be unable to obtain additional financing when needed on commercially reasonable terms, if at all. In particular, we are presently subject to shareholder litigations (see Note 5 - Legal Proceedings in the accompanying unaudited financial statements). The existence of the Action and the Putative Class Action (as defined in such note) and the uncertainty surrounding their outcome has impeded our ability to secure additional funding and may continue to do so for so long as the outcome of the Action and the Putative Class Action is uncertain.

In addition, on January 30, 2020, the International Health Regulations Emergency Committee of the World Health Organization (WHO) declared the novel coronavirus outbreak a public health emergency of international concern and on March 12, 2020 the WHO announced the outbreak was a pandemic. On January 31, 2020 the U.S. Health and Human Services Secretary declared a public health emergency, and subsequently state and local governments have imposed various restrictions on public activity. The Company has maintained operations virtually during the outbreak, but the impact of the outbreak currently is unknown and rapidly evolving.

If adequate funds are not available when needed, we may be required to significantly reduce or refocus operations or to obtain funds through arrangements that may require us to relinquish rights to technologies or potential markets, any of which could have a material adverse effect on us. In addition, our inability to secure additional funding in the near future could cause us to wind down or discontinue operations.

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