Quarterly report pursuant to Section 13 or 15(d)

Organization

Organization

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

1. Organization

Oragenics, Inc. (formerly known as Oragen, Inc.) (the “Company” or “we”) was incorporated in November, 1996; however, operating activity did not commence until 1999. We are focused on the development of the NT-CoV2-1 intranasal vaccine candidate to combat the novel Severe Acute Respiratory Syndrome coronavirus (“SARS-CoV-2”) coronavirus pandemic and the further development of effective treatments for novel antibiotics against infectious disease.

1A: Amendment To Previously Reported Quarterly Financial Statements

The Company’s previously issued unaudited consolidated financial statements for the three-month period ended March 31, 2022 have been restated related to the Company’s accounting for certain research and development expenses; certain upfront and prepayments made to vendors, and their classification on the Company’s unaudited consolidated financial statements.

Management reviewed the terms and conditions of the contracts and the payments and concluded that during the three-month period ending March 31, 2022 amounts were paid as part of a prepayment arrangement. Management reviewed Accounting Standards Codification Topic 730 Research and Development guidance related to recording initial upfront payments to vendors; and determined that the unaudited consolidated financial statements originally reported for the three-month period ended March 31, 2022 classified as research and development expense on the unaudited consolidated statement of operations that should be classified as prepaid expense on the Company’s unaudited consolidated balance sheet.

The Company has restated its accounting for these prepaid research and development expenses and recorded them as prepaid assets on its unaudited consolidated balance sheet with changes to the amount of research and development expense recorded on its unaudited consolidated statement of operations for the three-month period ended March 31, 2022.

As a result of these adjustments, net loss for the three-months ended March 31, 2022 was reduced by $1.4 million, the total assets reported for the same period increased by $1.4 million and total equity increased by $1.4 million. The Company has reported an amended net loss of $4.6 million versus the previously reported net loss of approximately $6 million. For the same period the Company has also reported amended total assets of approximately $24 million and accumulated deficit of $176 million; versus $22 million and $177 million respectively.

The following tables summarize the effect of the restatement on the Company’s consolidated unaudited financial statements for the three months ended March 31, 2022:

Oragenics, Inc.

Consolidated Balance Sheets

March 31, 2022

	As Previously Reported			Adjustment		As Restated
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	21,372,463			-	$	21,372,463
Other receivables		—			-		—
Prepaid expenses and other current assets		277,473			1,444,401		1,721,874
Total current assets		21,649,936					23,094,337
Property and equipment, net		121,845					121,845
Operating lease right-of-use assets		431,961					431,961
Total assets	$	22,203,742				$	23,648,143
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	1,094,052				$	1,094,052
Short-term notes payable		122,175					122,175
Operating lease liabilities		192,535					192,535
Total current liabilities		1,408,762					1,408,762

Long-term liabilities:
Operating lease liabilities		253,928					253,928
Total long-term liabilities		253,928					253,928

Shareholders’ equity:
Preferred stock, no par value; 50,000,000 shares authorized; 9,417,000 Series A shares, 6,600,000 Series B shares, issued and outstanding at March 31, 2022 and December 31, 2021, respectively		2,656,713					2,656,713
Common stock, $0.001 par value; 250,000,000 and 200,000,000 shares authorized at March 31, 2022 and December 31, 2021, respectively, 116,394,806 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively		116,395					116,395
Additional paid-in capital		195,077,466					195,077,466
Accumulated deficit		(177,309,522	)		1,444,401		(175,865,121	)
Total shareholders’ equity		20,541,052					21,985,453
Total liabilities and shareholders’ equity	$	22,203,742				$	23,648,143

Oragenics, Inc.

Consolidated Statements of Operations

(Unaudited)

	As Previously Reported			Adjustment			As Restated
	For the Three Months Ended March 31, 2022
	As Previously Reported			Adjustment			As Restated
Grant revenue	$	15,083			-		$	15,083

Operating expenses:
Research and development		4,738,062			(1,444,401	)		3,293,661
General and administrative		1,331,549						1,331,549
Total operating expenses		6,069,611						4,625,210
Loss from operations		(6,054,528	)					(4,610,127	)
Other income (expense):
Interest income		11,906						11,906
Interest expense		(3,246	)					(3,246	)
Local business tax		(490	)					(490	)
Miscellaneous income		10,964						10,964
Total other income, net		19,134						19,134
Loss before income taxes		(6,035,394	)					(4,590,993	)
Income tax benefit		—						-
Net loss	$	(6,035,394	)				$	(4,590,993	)
Basic and diluted net loss per share	$	(0.05	)				$	(0.04	)
Shares used to compute basic and diluted net loss per share		116,394,806						116,394,806

Oragenics, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

	As Previously Reported			Adjustment			As Restated
	For the Three Months Ended March 31, 2022
	As Previously Reported			Adjustment			As Restated
Cash flows from operating activities:
Net loss	$	(6,035,394	)		1,444,401		$	(4,590,993	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		8,468						8,468
Gain on sale of property and equipment		(10,964	)					(10,964	)
Stock-based compensation expense		90,247						90,247
Changes in operating assets and liabilities:
Other receivables		6,987						6,987
Prepaid expenses and other current assets		157,226			(1,444,401	)		(1,287,175	)
Accounts payable and accrued expenses		146,478						146,478
Net cash used in operating activities		(5,636,952	)					(5,636,952	)
Cash flows from investing activities:
Proceeds from sale of property and equipment		12,000						12,000
Purchase of property and equipment		(87,047	)					(87,047	)
Net cash used in investing activities		(75,047	)					(75,047	)
Cash flows from financing activities:
Payments on short-term notes payable		(181,241	)					(181,241	)
Redemption of Series C Preferred stock		—						—
Proceeds from issuance of common stock for warrant exercise		—						—
Net proceeds from issuance of common stock		—						—
Net cash provided by (used in) financing activities		(181,241	)					(181,241	)
Net increase (decrease) in cash and cash equivalents		(5,893,240	)					(5,893,240	)
Cash and cash equivalents at beginning of period		27,265,703			-			27,265,703
Cash and cash equivalents at end of period	$	21,372,463			-		$	21,372,463
Supplemental disclosure of cash flow information:
Interest paid	$	3,246					$	3,246
Non-cash investing and financing activities:
Stock dividend on Series C Preferred stock	$	—					$	—