SYNAPTOGENIX, INC. You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes appearing elsewhere in this report. 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 elsewhere in this report and our annual report on Form 10-K for the year endedDecember 31, 2021 . The following discussion highlights our results of operations and the principal factors that have affected our financial condition as well as our liquidity and capital resources for the periods described, and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on the unaudited financial statements contained in this report, which we have prepared in accordance withUnited States generally accepted accounting principles. You should read the discussion and analysis together with such financial statements and the related notes thereto. Explanatory Note OnMay 17, 2020 ,Neurotrope, Inc. (Neurotrope or Parent) announced plans for the complete legal and structural separation of us fromNeurotrope , also known as the Spin-Off. Under the Separation and Distribution Agreement,Neurotrope planned to distribute all of its equity interest in us toNeurotrope's stockholders. Following the Spin-Off,Neurotrope would not own any equity interest in us, and we would operate independently fromNeurotrope .Neurotrope Bioscience, Inc. was a wholly-owned subsidiary ofNeurotrope prior to the completion of the Spin-Off onDecember 7, 2020 (see below for description of Spin-Off).Neurotrope Bioscience, Inc. represented substantially all the business ofNeurotrope . OnDecember 6, 2020 ,Neurotrope approved the final distribution ratio and holders of record ofNeurotrope common stock,Neurotrope preferred stock and certain warrants as ofNovember 30, 2020 received a pro rata distribution at the rate of (i) one share of our Common Stock for every five shares ofNeurotrope common stock held, (ii) one share of our Common Stock for every five shares ofNeurotrope common stock issuable upon conversion ofNeurotrope preferred stock held and (iii) one share of our Common Stock for every five shares ofNeurotrope common stock issuable upon exercise of certainNeurotrope warrants held that were entitled to participate in the Spin-Off pursuant to the terms thereof.
Basis of Presentation
The unaudited financial statements for the three and six months endedJune 30,2022 and 2021 include a summary of our significant accounting policies and should be read in conjunction with the discussion below and our financial statements and related notes included elsewhere in this quarterly report. In the opinion of management, all material adjustments necessary to present fairly the results of operations for such periods have been included in the financial statements. All such adjustments are of a normal recurring nature.
Overview
We are a biopharmaceutical company with product candidates in pre-clinical and clinical development. We began operations inOctober 2012 . We are principally focused on developing a product platform based upon a drug candidate called Bryostatin-1 for the treatment of Alzheimer's disease, which is in the clinical testing stage. We are also evaluating Bryostatin-1 for other neurodegenerative or cognitive diseases and dysfunctions, such as Fragile X syndrome, Multiple Sclerosis, and Niemann-Pick Type C disease, which have undergone pre-clinical testing. 21 Table of Contents
Neurotrope had been a party to a technology license and services agreement with the originalBlanchette Rockefeller Neurosciences Institute (which has been known asCognitive Research Enterprises, Inc. sinceOctober 2016 ), and its affiliateNRV II, LLC , which we collectively refer to herein as "CRE," pursuant to which we now have an exclusive non-transferable license to certain patents and technologies required to develop our proposed products. We were formed for the primary purpose of commercializing the technologies initially developed by BRNI for therapeutic applications for AD or other cognitive dysfunctions. These technologies have been under development by BRNI since 1999 and, untilMarch 2013 , had been financed through funding from a variety of non-investor sources (which include not-for-profit foundations, theNIH , which is part of theU.S. Department of Health and Human Services , and individual philanthropists). FromMarch 2013 forward, development of the licensed technology has been funded principally through us in collaboration with CRE.
Reverse Stock Split
OnApril 7, 2021 , our stockholders approved our proposal to effect one reverse stock split of our outstanding shares of Common Stock, at any ratio between 1-for-1.5 and 1-for-20, at such time as the Board shall determine, in its sole discretion, beforeDecember 31, 2022 . OnMay 19, 2021 , we effected a 1-for-4 reverse stock split of our shares of Common Stock. As a result of the reverse stock split, every four (4) shares of our pre-reverse split Common Stock was combined and reclassified into one share of Common Stock. All share and per share information herein has been adjusted to retrospectively reflect this reverse stock split.
Results of Most Recent Confirmatory Phase 2 Clinical Trial
On
An average increase in SIB total score of 1.3 points and 2.1 points was observed for the Bryostatin-1 and placebo groups, respectively, at Week 13. There were multiple secondary outcome measures in this trial, including the changes from baseline at Weeks 5, 9 and 15 in the SIB total score. No statistically significant difference was observed in the change from baseline in SIB total score between the Bryostatin -1 and placebo treatment groups. The confirmatory Phase 2 multicenter trial was designed to assess the safety and efficacy of Bryostatin-1 as a treatment for cognitive deficits in patients with moderate to severe AD - defined as a MMSE-2 score of 4-15 - who are not currently taking memantine. Patients were randomized 1:1 to be treated with either Bryostatin-1 20?g or placebo, receiving 7 doses over 12 weeks. Patients on memantine, an NMDA receptor antagonist, were excluded unless they had been discontinued from memantine treatment for a 30-day washout period prior to study enrollment. The primary efficacy endpoint was the change in the SIB score between the baseline and week 13. Secondary endpoints included repeated SIB changes from baseline SIB at weeks 5, 9, 13 and 15. OnJanuary 22, 2020 , we announced the completion of an additional analysis in connection with the confirmatory Phase 2 study, which examined moderately severe to severe AD patients treated with Bryostatin-1 in the absence of memantine. To adjust for the baseline imbalance observed in the study, a post-hoc analysis was conducted using paired data for individual patients, with each patient as his/her own control. For the pre-specified moderate stratum (i.e., MMSE-2 baseline scores 10-15), the baseline value and the week 13 value were used, resulting in pairs of observations for each patient. The changes from baseline for each patient were calculated and a paired t-test was used to compare the mean change from baseline to week 13 for each patient. A total of 65 patients had both baseline and week 13 values, from which there were 32 patients in the Bryostatin-1 treatment group and 33 patients in the placebo group. There was a statistically significant improvement over baseline (4.8 points) in the mean SIB at week 13 for subjects in the Bryostatin-1 treatment group (32 subjects), paired t-test p < 0.0076, 2-tailed. In the placebo group (33 subjects), there was also a statistically significant increase from baseline in the mean SIB at week 13, for paired t-test p < 0.0144, consistent with the placebo effect seen in the overall 203 study. Although there was a signal of Bryostatin-1's benefit for the moderately severe stratum, the difference between the Bryostatin-1 and placebo treatment groups was not statistically significant (p=0.2727). As a further test of the robustness of this Moderate Stratum benefit signal, a pre-specified trend analysis (measuring increase of SIB improvement as a function of successive drug doses) was performed on the repeated SIB measures over time (Weeks 0, 5, 9, and 13). These trend analyses showed a significant positive slope of improvement for the treatment groups in the 203 study that was significantly greater than for the placebo group (p<.01). 22
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In connection with the additional analysis, we also announced the approval of a$2.7 million award from theNIH to support an additional Phase 2 clinical study focused on the moderate stratum for which we saw improvement in the 203 study. The grant provides for funds in the first year of approximately$1.0 million and funding in year two of approximately$1.7 million subject to satisfactory progress of the project. We are planning to meet with the FDA to present the totality of the clinical data for Bryostatin-1. OnJuly 23, 2020 , we entered into the 2020 Services Agreement with WCT. The 2020 Services Agreement relates to services for our Phase 2 clinical study assessing the safety, tolerability and long-term efficacy of Bryostatin-1 in the treatment of moderately severe AD subjects not receiving memantine treatment. OnJanuary 22, 2022 , the Company executed a change order with WCT to accelerate trial subject recruitment totaling approximately$1.4 million . In addition, onFebruary 10, 2022 , the Company signed an additional agreement with a third-party vendor to assist with the increased trial recruitment retention totaling approximately$1.0 million . The updated total estimated budget for the services, including pass-through costs, is approximately$12.0 million . As previously disclosed, onJanuary 22, 2020 , we were granted a$2.7 million award from theNIH , which award is being used to support the 2020 Study, resulting in an estimated net budgeted cost of the 2020 Study to us of$9.3 million . Of the$2.7 million grant, virtually all has been received as ofFebruary 22, 2022 . As ofJune 30, 2022 , we incurred cumulative expenses of approximately$9.4 million associated with services provided by WCT and certain pass thru expenses incurred by WCT, which was offset byNIH reimbursements recognized of$2.7 million and, for the three months endedJune 30, 2022 , we incurred expenses of approximately$1.3 million associated with services provided by WCT and certain pass thru expenses incurred by WCT.
Additional Phase 2 Clinical Trial
OnMay 12, 2022 , the Company entered into the 2022 Services Agreement with WCT. The 2022 Services Agreement relates to services for a Phase 2 "open label," dose ranging study, clinical trial assessing the safety, tolerability and efficacy of Bryostatin-1 administered via infusion in the treatment of moderately severe to severe AD subjects not receiving memantine treatment. Pursuant to the terms of the 2022 Services Agreement, WCT is providing services to enroll approximately 12 2022 Study subjects, which enrollment is currently underway. The first 2022 Study site was initiated during the third quarter of 2022. The total estimated budget for the services, including pass-through costs, is currently approximately$2.0 million . During the three and six months endedJune 30, 2022 , the Company incurred a total of approximately$450,000 for this clinical trial and, as ofJune 30, 2022 , recorded a payable of approximately$80,000 on its balance sheet. DuringJuly 2022 , the Company paid WCT 20%, or approximately$400,000 , as a prepayment for services, pass thru and site expenses to be incurred for the 2022 Services Agreement. Either party may terminate the 2022 Services Agreement without cause upon ninety days prior written notice. Furthermore, in the event of a material breach by the other party, which breach is not cured by the breaching party, the other party may terminate the agreement upon 30 days' prior written notice.
Other Development Projects
To the extent resources permit, we may pursue development of selected technology platforms with indications related to the treatment of various disorders, including neurodegenerative disorders such as AD, based on our currently licensed technology and/or technologies available from third party licensors or collaborators. Nemours Agreement
OnSeptember 5, 2018 , we announced a collaboration with Nemours, a premierU.S. children's hospital, to initiate a clinical trial in children with Fragile X. In addition to the primary objective of safety and tolerability, measurements will be made of working memory, language and other functional aspects such as anxiety, repetitive behavior, executive functioning, and social behavior. OnAugust 5, 2021 , the Company announced its memorandum of understanding withNemours A.I. DuPont Hospital ("Nemours") to initiate a clinical trial using Bryostatin-1, under Orphan Drug Status, to treat FragileX. The Company intends to provide the Bryostatin-1 drug product candidate and obtain the investigational new drug documentation ("IND") and Nemours intends to provide the clinical site and attendant support for the trial. The Company and Nemours, jointly, will develop the trial protocol. The Company estimates its total trial and IND cost to be approximately$700,000 . The Company plans to initiate a Phase 1 clinical trial during the second half of 2022. 23 Table of ContentsCleveland Clinic OnFebruary 23, 2022 , the Company announced its collaboration with theCleveland Clinic to pursue possible treatments for Multiple Sclerosis. The collaboration entails filing an IND and conducting initial clinical trials using Bryostatin-1. Future development work will be conducted pursuant to statements of work to
be determined. Impact of COVID-19
We face the ongoing risk that the coronavirus pandemic may slow the conduct of our current trials. In order to prioritize patient health and that of the investigators at clinical trial sites, we will monitor enrollment of new patients in our Phase 2 clinical trials of Bryostatin-1 for the treatment of patients with Alzheimer's disease. In addition, some patients may be unwilling to enroll in our trials or be unable to comply with clinical trial protocols if quarantines or travel restrictions impede patient movement or interrupt healthcare services. These and other factors outside of our control could delay our ability to conduct clinical trials or release clinical trial results. In addition, the effects of the ongoing coronavirus pandemic may also increase non-trial costs such as insurance premiums, increase the demand for and cost of capital, increase loss of work time from key personnel, and negatively impact our key clinical trial vendors and supplier of API. In light of the COVID-19 outbreak, the FDA has issued a number of new guidance documents. Specifically, as a result of the potential effect of the COVID-19 outbreak on many clinical trial programs in the US and globally, the FDA issued guidance concerning potential impacts on clinical trial programs, changes that may be necessary to such programs if they proceed, considerations regarding trial suspensions and discontinuations, the potential need to consult with or make submissions to relevant ethics committees,Institutional Review Board ("IRBs"), and the FDA, the use of alternative drug delivery methods, and considerations with respect the outbreak's impacts on endpoints, data collection, study procedures, and analysis. Such developments may result in delays in our development of Bryostatin-1.
Results of Operations
Comparison of the six months ended
The following table summarizes our results of operations for the six months
ended
Six Months ended
June 30, Dollar
2022 2021 Change % Change
Revenue $ - $ - $ - 0 %
Operating Expenses:
Research and development expenses $ 3,427,175 $ 2,138,060 $ 1,289,115 60.3 %
General and administrative expenses $ 3,651,748 $ 3,312,306 $ 339,442 10.2 %
Other income, net $ 49,097 $ 2,147 $ 46,950 2,186.8 %
Net loss $ 7,029,826 $ 5,448,219 $ 1,581,607 29.0 %
Revenues
We did not generate any revenues for the six months ended
Operating Expenses Overview Total operating expenses for the six months endedJune 30, 2022 were$7,078,923 as compared to$5,450,366 for the six months endedJune 30, 2021 , an increase of approximately 29.9%. The increase in total operating expenses is due to the increase in research and development activities and general and administrative expenses. 24 Table of Contents
Research and Development Expenses
For the six months endedJune 30, 2022 , we incurred$3,427,175 in research and development expenses as compared to$2,138,060 for the six months endedJune 30, 2021 , an increase of approximately 60.3%. These expenses were incurred primarily pursuant to developing the potential AD therapeutic product, specifically expenses relating to our ongoing Phase 2 clinical trial for AD. Of these expenses, for the six months endedJune 30, 2022 ,$2,943,402 was incurred principally relating to our current confirmatory clinical trial and related storage of drug product,$152,658 for clinical consulting services,$14,931 of amortization of prepaid licensing fees relating to the Stanford License Agreement and Mount Sinai Agreement,$23,481 for development of alternative drug supply withStanford University and$292,703 of non-cash stock options compensation expense; comparatively, for the six months endedJune 30, 2021 ,$1,732,669 was incurred principally relating to our confirmatory clinical trial and related storage of drug product,$156,853 for clinical consulting services,$14,876 of amortization of prepaid licensing fees relating to theStanford License Agreement and Mount Sinai Agreement,$24,197 for development of alternative drug supply withStanford University and$209,465 of non-cash stock options compensation expense. We expect our research and development expenses to level off as we expect that our current Phase 2 clinical trial for AD will be materially concluded by the end of 2022 while, to a lesser extent, our Phase 2 dose ranging study activities increase. Other development expenses might increase, as our resources permit, in order to advance our potential products. We are continuing to determine how to proceed with respect to our other current development programs for Bryostatin-1.
General and Administrative Expenses
We incurred$3,651,748 and$3,312,306 of general and administrative expenses for the six months endedJune 30, 2022 and 2021, respectively, an increase of approximately 10.2%. During the six months endedJune 30, 2022 ,$601,507 was incurred primarily for wages, bonuses, vacation pay, severance, taxes and insurance, versus$667,552 for the six months endedJune 30, 2021 . The decrease in wages is primarily attributable to the reduction of bonus accruals for our former Chief Executive Officer;$207,019 was incurred for legal expenses versus$468,406 for the 2021 comparable period. The decrease in legal fees for 2022 is based upon prior year's increased fees for one-time work for fundraising planning in 2021;$589,454 was incurred for outside operations consulting services during the six months endedJune 30, 2022 , versus$956,530 for the comparable period in 2021 as, during such period in 2021, we incurred additional non-cash expenses associated with warrant issuances for investment banking consulting services;$39,131 was incurred for travel expenses during the six months endedJune 30, 2022 , versus$28,167 for the comparable period in 2021;$133,569 was incurred for investor relations services during the six months endedJune 30, 2022 , versus$156,528 for the comparable period in 2021;$109,725 was incurred for professional fees associated with auditing, financial, accounting and tax advisory services during the six months endedJune 30, 2022 , versus$88,163 for the comparable period in 2021;$365,544 was incurred for insurance during the six months endedJune 30, 2022 , versus$327,545 for the comparable period in 2021, which increase is primarily attributable to an increase in premiums;$170,254 was incurred for utilities, supplies, license fees, filing costs, rent, advertising and other during the six months endedJune 30, 2022 , versus$109,089 for the comparable period in 2021, with the increase for 2022 primary attributable to stock market up-listing fees to Nasdaq and rent expenses associated with our newMaryland laboratory facility; and$1,435,545 was recorded as non-cash stock options compensation expense during the six months endedJune 30, 2022 , versus$510,326 for the comparable period in 2021, which increase is primarily attributable to equity awards granted afterJune 30, 2021 expensed in 2022. Other Income / Expense
We earned$49,097 of net interest income for the six months endedJune 30, 2022 as compared to$2,147 for the six months endedJune 30, 2021 on funds deposited in interest bearing money market accounts. The increase is primarily attributable to the increase in money market interest income rates and higher average cash balances in 2022 compared to the corresponding period in 2021.
Net loss
We incurred losses of$7,029,826 and$5,448,219 for the six months endedJune 30, 2022 and 2021, respectively. The increased loss was primarily attributable to the increase in net research and development expenses associated with our current Phase 2 confirmatory clinical trial and an increase in general and
administrative expenses.
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Comparison of the three months ended
The following table summarizes our results of operations for the three months
ended
Three Months ended
June 30, Dollar
2022 2021 Change % Change
Revenue $ - $ - $ - 0 %
Operating Expenses:Research and development expenses$ 1,941,101 $ 986,280 $ 954,821 96.8 % General and administrative expenses$ 1,855,290 $ 1,308,893 $
546,397 41.7 % Other income, net$ 44,487 $ 1,331 $ 43,156 3,242.4 % Net loss$ 3,751,904 $ 2,293,842 $ 1,458,062 63.6 % Revenues
We did not generate any revenues for the three months ended
Operating Expenses Overview Total operating expenses for the three months endedJune 30, 2022 were$3,796,391 as compared to$2,295,173 for the three months endedJune 30, 2021 , an increase of approximately 65.4%. The increase in total operating expenses is due to the increase in research and development and general and administrative expenses.
Research and Development Expenses
For the three months endedJune 30, 2022 , we incurred$1,832,792 in research and development expenses as compared to$986,280 for the three months endedJune 30, 2021 , an increase of approximately 85.8%. These expenses were incurred primarily pursuant to developing the potential AD therapeutic product, specifically expenses relating to our ongoing Phase 2 clinical trial for AD. Of these expenses, for the three months endedJune 30, 2022 ,$1,680,918 was incurred principally relating to our current confirmatory clinical trial and related storage of drug product,$73,113 for clinical consulting services,$7,479 of amortization of prepaid licensing fees relating to the Stanford License Agreement and Mount Sinai Agreement,$7,938 for development of alternative drug supply withStanford University and$171,653 of non-cash stock options compensation expense as compared to, for the three months endedJune 30, 2021 ,$834,080 was incurred principally relating to our confirmatory clinical trial and related storage of drug product,$93,203 for clinical consulting services,$7,479 of amortization of prepaid licensing fees relating to theStanford andMount Sinai license agreements,$15,755 for development of alternative drug supply withStanford University and$35,763 of non-cash stock options compensation expense. We expect our research and development expenses to level off as our current Phase 2 clinical trial for AD will be materially concluded by the end of 2022 while, to a lesser extent, our Phase 2 dose ranging study activities increases. Other development expenses might increase, as our resources permit, in order to advance our potential products. We are continuing to determine how to proceed with respect to our other current development programs for Bryostatin-1. 26
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General and Administrative Expenses
We incurred$1,855,290 and$1,308,893 of general and administrative expenses for the three months endedJune 30, 2022 and 2021, respectively, an increase of approximately 41.7%. Of the amounts for the three months endedJune 30, 2022 , as compared to the comparable 2021 period:$307,603 was incurred primarily for wages, bonuses, vacation pay, severance, taxes and insurance, versus$237,337 for the 2021 comparable period. The increase is primarily attributable to the reclassification of our former Chief Executive Officer's compensation to consulting fees for the comparable 2021 period;$77,804 was incurred for legal expenses versus$233,822 for the 2021 comparable period. The decrease for 2022 is based upon prior year's increased fees for one-time work for fundraising planning in 2021;$193,250 was incurred for outside operations consulting services during the three months endedJune 30, 2022 , versus$363,854 for the comparable period in 2021 as, during such period in 2021, we incurred additional non-cash expenses associated with warrant issuances for investment banking consulting services;$24,479 was incurred for travel expenses during the three months endedJune 30, 2022 , versus$17,417 for the comparable period in 2021;$61,355 was incurred for investor relations services during the three months endedJune 30, 2022 , versus$89,459 for the comparable period in 2021;$87,677 was incurred for professional fees associated with auditing, financial, accounting and tax advisory services during the three months endedJune 30, 2022 , versus$38,268 for the comparable period in 2021. The increase for 2022 is attributable to expensing the 2021 audit in the second quarter of 2022 versus during the first quarter in 2021;$181,236 was incurred for insurance during the three months endedJune 30, 2022 , versus$165,437 for the comparable period in 2021, which increase is primarily attributable to an increase in premiums;$76,849 was incurred for utilities, supplies, license fees, filing costs, rent, advertising and other during the three months endedJune 30, 2022 , versus$47,510 for the comparable period in 2021, with the increase for 2022 primary attributable to stock market up-listing fees to Nasdaq and rent expenses associated with our newMaryland laboratory facility; and$845,037 was recorded as non-cash stock options compensation expense during the three months endedJune 30, 2022 , versus$115,789 for the comparable period in 2021, which increase is primarily attributable to equity awards granted afterJune 30, 2021 expensed in 2022. Other Income / Expense We earned$44,487 of net interest income for the three months endedJune 30, 2022 as compared to$1,331 for the three months endedJune 30, 2021 on funds deposited in interest bearing money market accounts. The increase is primarily attributable to the increase in money market interest income rates and higher average cash balances in 2022 compared to the corresponding period in 2021.
Net loss
We incurred losses of$3,751,904 and$2,293,842 for the three months endedJune 30, 2022 and 2021, respectively. The increased loss was primarily attributable to the increase in net research and development expenses associated with our current Phase 2 confirmatory clinical trial and the increase in general and administrative expenses.
Financial Condition, Liquidity and Capital Resources
Since inception, we have incurred negative cash flows from operations. As ofJune 30, 2022 , we had working capital of$28,932,496 as compared to working capital of$33,509,303 as ofDecember 31, 2021 . The$4,576,807 decrease in working capital was primarily attributable to approximately$7.1 million of operating expenses partially offset by non-cash expenses of approximately$1.8 million and cash proceeds from warrant exercises of approximately$553,000 . We expect that our current cash and cash equivalents of approximately$27.4 million will be sufficient to support our projected operating requirements for at least the next 12 months from the Form 10-Q filing date, which would include the continuing development and current Phase 2 clinical trial, of Bryostatin-1, our novel drug candidate targeting the activation of PKC epsilon. 27
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We expect to require additional capital in order to initiate, pursue and complete all potential AD clinical trials and obtain regulatory approval of one or more therapeutic candidates. However, additional future funding may not be available to us on acceptable terms, or at all. If we are unable to access additional funds when needed, we may not be able to initiate, pursue and complete all planned clinical trials or continue the development of our product candidates or we could be required to delay, scale back or eliminate some or all of our development programs and operations. Any additional equity financing, if available, may not be available on favorable terms, would most likely be significantly dilutive to our current stockholders and debt financing, if available, and may involve restrictive covenants. If we are able to access funds through collaborative or licensing arrangements, we may be required to relinquish rights to some of our technologies or product candidates that we would otherwise seek to develop or commercialize on our own, on terms that are not favorable to us. Our ability to access capital when needed is not assured and, if not achieved on a timely basis, would likely materially harm our business and financial condition.
Sources and Uses of Liquidity
Since inception, we have satisfied our operating cash requirements from transfers of cash fromNeurotrope , which was raised byNeurotrope through the private placement of equity securities sold principally to outside investors and through the Company's two private placements. We expect to continue to incur expenses, resulting in losses and negative cash flows from operations, over at least the next several years as we continue to develop AD and other therapeutic products. We anticipate that this development may include clinical trials in addition to our current ongoing clinical trial and additional research and development expenditures. Six Months EndedJune 30, 2022 2021
Cash used in operating activities
3,029 -
Cash provided by financing activities 553,150 31,492,353
Cash used in operating activities was$6,009,489 for the six months endedJune 30, 2022 , compared to$5,585,322 for the six months endedJune 30, 2021 . The$424,167 increase primarily resulted from the increase in net loss of approximately$1.6 million and the decrease in accounts payable of approximately$403,000 partially offset by a decrease in net of prepaid and accrued expenses of approximately$795,000 and an increase in non-cash stock-based compensation of approximately$765,000 for the six months endedJune 30, 2022 .
Net cash used in investing activities was$3,029 for the six months endedJune 30, 2022 compared to$0 for the six months endedJune 30, 2021 . The cash used in investing activities for the six months endedJune 30, 2022 was for capital expenditures.
Net Cash Provided by Financing Activities
Net cash provided by financing activities was$553,150 for the six months endedJune 30, 2022 compared to cash provided by financing activities of$31,492,353 for the six months endedJune 30, 2021 . The net cash provided by financing activities for 2022 resulted from the exercise of investor warrants issued in 2021. The net cash provided by financing activities in 2021 was primarily attributable to$23.7 million of net proceeds from our private placement offerings,$7.6 million from warrant exercises and$127,000 fromNIH grant funding proceeds
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