Basis of Presentation |
12 Months Ended |
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Dec. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation |
1. Basis of Presentation
The Company
Oragenics, Inc. (formerly known as Oragen, Inc.) (the “Company” or “we”) was incorporated in November 1996. Commencing in December 2023, we are focused on the development of medical products that treat brain related illnesses and diseases and our lead product candidate and focus is on the development and commercialization of ONP-002 for the treatment of mild traumatic brain injury (“mTBI” or “Concussion”).
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) including the assumption of a going concern basis which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.
Going Concern Consideration
In light of our recurring losses, accumulated deficit and negative cash flow, the report of our independent registered public accounting firm on our consolidated financial statements for the year ended December 31, 2024 contained an explanatory paragraph raising substantial doubt about our ability to continue as a going concern.
We have incurred losses and negative cash flows from operations since inception. To date, we have not generated significant revenues from operations. We incurred a net loss of $10.6 million and used cash of $8.6 million in our operating activities during the year ended December 31, 2024. As of December 31, 2024, we had an accumulated deficit of $216.8 million.
Historically, our major sources of cash have been comprised of proceeds from various public and private offerings of our common stock and preferred stock, warrant exercises, income earned on grants and interest income. For the fiscal year ended December 2024, we raised $7.65 million in gross proceeds from private placements and sales of our common stock. We expect to incur substantial expenditures to further develop our concussion drug. We believe the working capital at December 31, 2024 will be sufficient to meet our business objectives through the first quarter of 2025. In February 2025, we raised $2.75 million through the sale of common stock through our At-the-Market Sales Agreement (“ATM”) (see Note 7). In March 2025 we entered into a Purchase Agreement with a single investor pursuant to which raised approximately $2.5 million (see Note 7). As a result of this financing, we believe our working capital at the time of this filing to be sufficient to meet our business objectives through the third quarter of 2025.
These matters, when considered in the aggregate, raise substantial doubt about our ability to continue as a going concern for a reasonable period of time, which is defined as within one year after the date that our consolidated financial statements are issued.
Our ability to continue operations after our current cash resources are exhausted depends on our ability to obtain additional financing or achieve profitable operations, as to which no assurances can be given. Cash requirements may vary materially from those now planned because of changes in our focus and direction of our research and development programs, competitive and technical advances, or other developments.
Additional financing will be required to continue operations after we exhaust our current cash resources and to continue our long-term plans for clinical trials and new product development. There can be no assurance that any such financing can be realized or, if realized, what the terms thereof may be, or that any amount that we are able to raise will be adequate to support our working capital requirements until we achieve profitable operations.
We intend to seek additional funding through sublicensing arrangements, joint ventures or partnerships, sales of rights to technology, government grants and public or private financings and may receive funding through the exercise of outstanding warrants. Our future success depends on our ability to raise capital and ultimately generate revenue and attain profitability. We cannot be certain that additional capital, whether through selling additional debt or equity securities or obtaining a line of credit or other loan, will be available or, if available, will be on terms acceptable to us. If we issue additional securities to raise funds, these securities may have rights, preferences, or privileges senior to those of our common stock, and our current shareholders may experience dilution. If we are unable to obtain funds when needed or on acceptable terms, we may be required to curtail our current development programs, cut operating costs and forego future development and other opportunities.
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