Quarterly report pursuant to Section 13 or 15(d)

Organization

Organization

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

1. Organization

Oragenics, Inc. (the “Company” or “we”) is focused on the development of the NT-CoV2-1 intranasal vaccine candidate to combat the novel Severe Acute Respiratory Syndrome coronavirus (“SARS-CoV-2”) and 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- and six-month periods ended June 30, 2022 have been restated related to the Company’s accounting for certain research and development expense; 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- and six-month period ended June 30, 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- and six- month periods ended June 30, 2022 classified 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-and six- month periods ended June 30, 2022.

As a result of these adjustments, net loss for the three and six months ended June 30, 2022 was reduced by approximately $0.4 million and $1.9 million respectively. The total assets reported for the six-month period ended June 30, 2022 increased by approximately $1.9 million. Total accumulated deficit for the six-month period ending June 30, 2022 was reduced by approximately $1.9 million. The Company has reported an amended net loss of $3.6 million and $8.2 million for the three and six months ended June 30, 2022 respectively; versus the previously reported net loss of approximately $4 million and $10 million. For the same six-month period ended June 30, 2022 the Company has also reported amended total assets of $20 million and accumulated deficit of $179 million versus $18 million and $181 million respectively.

The following table summarizes the effect of the restatement on the Company’s unaudited consolidated financial statements for the three- and six- months ended June 30, 2022:

Oragenics, Inc.

Consolidated Balance Sheets

June 30, 2022

	As Previously Reported			Adjustment		As Restated
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	17,867,483				$	17,867,483
Other receivables		-					-
Prepaid expenses and other current assets		102,498			1,887,551		1,990,049
Total current assets		17,969,981					19,857,532
Property and equipment, net		109,780					109,780
Operating lease right-of-use assets		385,361					385,361
Total assets	$	18,465,122				$	20,352,673
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	1,279,598				$	1,279,598
Short-term notes payable		-					-
Operating lease liabilities		180,824					180,824
Total current liabilities		1,460,422					1,460,422

Long-term liabilities:
Operating lease liabilities		217,353					217,353
Total long-term liabilities		217,353					217,353

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 June 30, 2022 and December 31, 2021, respectively		2,656,713					2,656,713
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 June 30, 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 June 30, 2022 and December 31, 2021, respectively, 116,394,806 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		116,395					116,395
Additional paid-in capital		195,356,454					195,356,454
Accumulated deficit		(181,342,215	)		1,887,551		(179,454,664	)
Total shareholders’ equity		16,787,347					18,674,898
Total liabilities and shareholders’ equity	$	18,465,122				$	20,352,673

Oragenics, Inc.

Consolidated Statements of Operations

(Unaudited)

	Reported			Adjustment			As Restated

	For the Three Months Ended June 30, 2022
	As Previously Reported			Adjustment			As Restated
Grant revenue	$	30,391					$	30,391

Operating expenses:
Research and development		3,033,182			(443,150	)		2,590,032
General and administrative		1,044,334						1,044,334
Total operating expenses		4,077,516						3,634,366
Loss from operations		(4,047,125	)					(3,603,975	)
Other income (expense):
Interest income		15,369						15,369
Interest expense		(816	)					(816	)
Local business tax		(490	)					(490	)
Miscellaneous income		369						369
Total other income, net		14,432						14,432
Loss before income taxes		(4,032,693	)					(3,589,543	)
Income tax benefit		-						-
Net loss	$	(4,032,693	)				$	(3,589,543	)
Basic and diluted net loss per share	$	(0.03	)				$	(0.03	)
Shares used to compute basic and diluted net loss per share		116,394,806						116,394,806

Oragenics, Inc.

Consolidated Statements of Operations

(Unaudited)

	As Previously Reported			Adjustment			As Restated
	For the Six Months Ended June 30, 2022
	As Previously Reported			Adjustment			As Restated
Grant revenue	$	45,474					$	45,474

Operating expenses:
Research and development		7,771,244			(1,887,551	)		5,883,693
General and administrative		2,375,883						2,375,883
Total operating expenses		10,147,127						8,259,576
Loss from operations		(10,101,653	)					(8,214,102	)
Other income (expense):
Interest income		27,275						27,275
Interest expense		(4,062	)					(4,062	)
Local business tax		(980	)					(980	)
Miscellaneous income		11,333						11,333
Total other income, net		33,566						33,566
Loss before income taxes		(10,068,087	)					(8,180,536	)
Income tax benefit		-						-
Net loss	$	(10,068,087	)				$	(8,180,536	)
Basic and diluted net loss per share	$	(0.09	)				$	(0.07	)
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 Six Months Ended June 30, 2022
	As Previously Reported			Adjustment			As Restated
Cash flows from operating activities:
Net loss	$	(10,068,087	)		1,887,551		$	(8,180,536	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		18,847						18,847
Gain on sale of property and equipment		(10,964	)					(10,964	)
Stock-based compensation expense		369,235						369,235
Changes in operating assets and liabilities:								-
Other receivables		6,987						6,987
Prepaid expenses and other current assets		332,201			(1,887,551	)		(1,555,350	)
Accounts payable and accrued expenses		332,024						332,024
Net cash used in operating activities		(9,019,757	)					(9,019,757	)
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		(303,416	)					(303,416	)
Redemption of Series C Preferred stock		-						-
Proceeds from issuance of common stock for option exercise		-						-
Proceeds from issuance of common stock for warrant exercise		-						-
Net proceeds from issuance of common stock		-						-
Net cash provided by (used in) financing activities		(303,416	)					(303,416	)
Net increase (decrease) in cash and cash equivalents		(9,398,220	)					(9,398,220	)
Cash and cash equivalents at beginning of period		27,265,703			-			27,265,703
Cash and cash equivalents at end of period	$	17,867,483					$	17,867,483
Supplemental disclosure of cash flow information:
Interest paid	$	4,062					$	4,062
Non-cash investing and financing activities:		-						-
Stock dividend on Series C Preferred stock	$	-					$	-