Quarterly report pursuant to Section 13 or 15(d)

Organization

v3.23.1
Organization
9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization

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 consolidated financial statements for the three and nine months ended September 30, 2022 have been restated related to the Company’s accounting for research and development expenses; certain upfront or prepayments made to vendors and expenses to be accrued, and their classification on the Company’s financial statements for the three- and nine- month periods ended September 30, 2022.

 

Management reviewed the terms and conditions of the contracts and the payments and concluded that during the three- and nine-month periods ending September 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 for future research and development; and determined that the financial statements originally reported for the three-and nine-month periods ended September 30, 2022 classified expense on the Company’s unaudited consolidated statement of operations that should be classified as prepaid expense on the Company’s unaudited consolidated balance sheet. Management also determined that during the three- and nine-month periods ending September 30, 2022, expenses had been incurred for research and development activities completed that should have been reflected as expense on the Company’s unaudited consolidated statement of operations and accrued liabilities on the Company’s unaudited consolidated balance sheet.

 

The Company has restated its accounting for these prepaid and accrued expenses and recorded them as prepaid assets and accrued liabilities on its consolidated balance sheet with changes to the amount of research and development expense recorded on the consolidated statement of operations for the three- and nine- month periods ended September 30, 2022.

 

As a result of these adjustments, net loss for the three and nine months ended September 30, 2022 was reduced by $0.05 million and $1.9 million respectively. The total assets reported for the nine-month period ended September 30, 2022 increased by $2.0 million. Total accumulated deficit for the nine-month period ending September 30, 2022 was reduced by $1.9 million. The Company has reported an amended net loss of $3.9 million and $12 million for the three- and nine-month periods ended September 30, 2022 respectively; versus the previously reported net loss of approximately $3.9 million and $14 million. For the nine-month period ended September 30, 2022 the Company has also reported amended total assets of $17 million and accumulated deficit of $183 million versus $15 million and $185 million respectively.

 

The following tables summarize the effects of the restatement on the Company’s consolidated unaudited financial statements for the three- and nine-months ended September 30, 2022:

Schedule of Effect of Restatement on Financial Statements 

 

Oragenics, Inc.

 

Consolidated Balance Sheets

September 30, 2022

 

    As Previously Reported    

 

Adjustment

    As Restated  
      (Unaudited)                  
Assets                                  
Current assets:                        
Cash and cash equivalents   $ 13,951,054           $ 13,951,054  
Other receivables                   -  
Prepaid expenses and other current assets     561,952       2,010,081       2,572,033  
Total current assets     14,513,006               16,523,087  
Property and equipment, net     132,382               132,382  
Operating lease right-of-use assets     395,435               395,435  
Total assets   $ 15,040,823             $ 17,050,904  
Liabilities and Shareholders’ Equity                        
Current liabilities:                        
Accounts payable and accrued expenses   $ 871,084       75,000     $ 946,084  
Short-term notes payable     424,924               424,924  
Operating lease liabilities     201,973               201,973  
Total current liabilities     1,497,981               1,572,981  
                         
Long-term liabilities:                        
Operating lease liabilities     204,593               204,593  
Total long-term liabilities     204,593               204,593  
                         
Shareholders’ equity:                        
Preferred stock, no par value; 50,000,000 shares authorized; 5,417,000, and
9,417,000 Series A shares, 4,050,000 and 6,600,000 Series B shares,
issued and outstanding at September 30, 2022 and December 31, 2021,
respectively
    1,592,723               1,592,723  
Common stock, $0.001 par value; 250,000,000 and 200,000,000 shares
authorized at September 30, 2022 and December 31, 2021, respectively,
117,304,809 and 116,394,806 shares issued and outstanding at
September 30, 2022 and December 31, 2021, respectively
    117,305               117,305  
Additional paid-in capital     196,888,079               196,888,079  
Accumulated deficit     (185,259,858 )     1,935,081       (183,324,777 )
Total shareholders’ equity     13,338,249               15,273,330  
Total liabilities and shareholders’ equity   $ 15,040,823             $ 17,050,904  

 

See accompanying notes.

 

 

Oragenics, Inc.

 

Consolidated Statements of Operations

(Unaudited)

 

    As Previously Reported    

 

Adjustment

    As Restated  
   

For the Three Months

Ended September 30, 2022

 
    As Previously Reported    

 

Adjustment

    As Restated  
Grant revenue   $ 86,047           $ 86,047  
                             
Operating expenses:                      
Research and development     2,824,598      

(47,530

)     2,777,068  
General and administrative     1,215,009             1,215,009  
Total operating expenses     4,039,607             3,992,077  
Loss from operations     (3,953,560 )           (3,906,030 )
Other income (expense):                      
Interest income     41,634             41,634  
Interest expense     (5,228 )           (5,228 )
Local business tax     (489 )           (489 )
Miscellaneous income     -             -  
Total other income, net     35,917             35,917  
Loss before income taxes     (3,917,643 )           (3,870,113 )
Income tax benefit     -             -  
Net loss   $ (3,917,643 )         $ (3,870,113 )
Basic and diluted net loss per share   $ (0.03 )         $ (0.03 )
Shares used to compute basic and diluted net loss per share     116,744,807             116,744,807  

 

 

Oragenics, Inc.

 

Consolidated Statements of Operations

(Unaudited)

 

       

 

Adjustment

     
   

For the Nine Months

Ended September 30, 2022

 
    As Previously Reported    

 

Adjustment

    As Restated  
Grant revenue   $ 131,521             $ 131,521  
                         
Operating expenses:                        
Research and development     10,595,842       (1,935,081 )     8,660,761  
General and administrative     3,590,892               3,590,892  
Total operating expenses     14,186,734               12,251,653  
Loss from operations     (14,055,213 )             (12,120,132 )
Other income (expense):                        
Interest income     68,909               68,909  
Interest expense     (9,290 )             (9,290 )
Local business tax     (1,469 )             (1,469 )
Miscellaneous income     11,333               11,333  
Total other income, net     69,483               69,483  
Loss before income taxes     (13,985,730 )             (12,050,649 )
Income tax benefit                   -  
Net loss   $ (13,985,730 )           $ (12,050,649 )
Basic and diluted net loss per share   $ (0.12 )           $ (0.10 )
Shares used to compute basic and diluted net loss per share     116,511,473               116,511,473  

 

See accompanying notes.

 

 

Oragenics, Inc.

 

Consolidated Statements of Cash Flows

(Unaudited)

 

    2022
As Restated
    Adjustment     2021  
    For the Nine Months
Ended September 30, 2022
 
    As Previously Reported     Adjustment     As Restated  
Cash flows from operating activities:                      
Net loss   $ (13,985,730 )     1,935,081     $ (12,050,649 )
Adjustments to reconcile net loss to net cash used in operating activities:                        
Depreciation and amortization     31,594               31,594  
Gain on sale of property and equipment     (10,964 )             (10,964 )
Stock-based compensation expense     837,780               837,780  
Changes in operating assets and liabilities:                      
Other receivables     6,987               6,987  
Prepaid expenses and other current assets     401,176       (2,010,081 )     (1,608,905 )
Accounts payable and accrued expenses     (76,490 )     75,000       (1,490 )
Net cash used in operating activities     (12,795,647 )             (12,795,647 )
Cash flows from investing activities:                        
Proceeds from sale of property and equipment     12,000               12,000  
Purchase of property and equipment     (124,081 )             (124,081 )
Net cash used in investing activities     (112,081 )             (112,081 )
Cash flows from financing activities:                        
Payments on short-term notes payable     (406,921 )             (406,921 )
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 financing activities     (406,921 )             (406,921 )
Net increase (decrease) in cash and cash equivalents     (13,314,649 )             (13,314,649 )
Cash and cash equivalents at beginning of period     27,265,703       -       27,265,703  
Cash and cash equivalents at end of period   $ 13,951,054       -     $ 13,951,054  
Supplemental disclosure of cash flow information:                        
Interest paid   $ 9,290             $ 9,290  
Non-cash investing and financing activities:                        
Borrowings under short term notes payable for prepaid expense   $ 528,429             $ 528,429  
Value of Series A preferred stock converted into common stock   $ 415,169             $ 415,169  
Value of Series B preferred stock converted into common stock   $ 648,821             $ 648,821  
Par value of common stock issued in connection with Series A Preferred Stock Conversion   $ 400             $ 400  
Par value of common stock issued in connection with Series B Preferred Stock Conversion   $ 510             $ 510  
Stock dividend on Series C Preferred stock   $             $  

 

See accompanying notes.