MYMETICS CORPORATION GENERAL
The following discussion and analysis of the results of operations and financial
condition of the Company for the periods ended
This report contains forward-looking statements that involve risks and uncertainties. The statements contained in this report are not purely historical but are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These forward-looking statements concern matters that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Words such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue", "probably" or similar words are intended to identify forward looking statements, although not all forward looking statements contain these words.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We are under no duty to update any of the forward-looking statements after the date hereof to conform such statements to actual results or to changes in our expectations.
Readers are urged to carefully review and consider the various disclosures made
by us which attempt to advise interested parties of the factors which affect our
business, including without limitation disclosures made under the captions
"Management Discussion and Analysis of Financial Condition and Results of
Operations," "Risk Factors," "Consolidated Financial Statements" and "Notes to
Consolidated Financial Statements" included in our annual report on Form 10-K
for the year ended
IMPACT OF THE NOVEL CORONAVIRUS
On
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the Company's financial condition, liquidity, and future results of operations.
Management is actively monitoring the global situation on its financial condition, liquidity, operations, scientific collaborations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2020.
The Company's partner for the oncology immunotherapy project in
The Company is dependent on its workforce to deliver and advance its research. Developments such as physical distancing and working from home directives have and will continue to impact the Company's ability to deploy its workforce effectively. While expected to be temporary, prolonged workforce disruptions may negatively impact future revenues for the remainder of fiscal year 2020 and the Company's overall liquidity.
The Company is dependent on its partners in certain projects, such as the
Although the Company cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, if the pandemic continues, it may have a material adverse effect on the Company's results of future operations, financial position, and liquidity for the remainder of fiscal year 2020.
CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT
On
THREE MONTHS ENDED
For the three months ended
Costs and expenses decreased to €363 for the three months ended
Research and development expenses decreased to €215 in the current period from €295 (-27.1%) in the comparative period of 2019, mainly lower costs in the NIH Grant project due to the worldwide pandemic situation.
General and administrative expenses increased to €254 in the three months ended
Foreign exchange revaluation generated a net gain of €116 and a net loss of €113
during the three months ended
Interest expense increased to €679 for the three months ended
The Company reported a net loss of (€1,038), or (€0.00) per share, for the three
months ended
NINE MONTHS ENDED
Revenue was €429 for the nine months ended
Costs and expenses decreased to €1,617 for the nine months ended
Research and development expenses increased to €789 in the current period from €720 (9.6%) in the comparative period of 2019, mainly due to higher subcontracting services during the same period in 2019 related to the NIH Grant project.
General and administrative expenses increased to €875 in the nine months ended
Foreign exchange revaluation generated a net gain of €78 and a net loss of €135
during the nine months ended
The Company reported a net loss of (€3,233), or (€0.01) per share, for the nine
months ended
LIQUIDITY AND CAPITAL RESOURCES
We had cash of €623 at
During 2019 and 2020, our revenue has been generated through the NIH Grant project. New significant revenues will not be expected, unless and until a major licensing agreement or other commercial arrangement is entered into with respect to our technology or new grant financings are awarded.
As of
Net cash used in operating activities was €1,316 and €774 for the nine-month
period ended
Net cash used in investing activities was €5 during the nine-months ended
Financing activities provided net cash of €1,256 for the nine-months ended
Salaries and related payroll costs represent gross salaries for two executives,
our CSO of
Our Swiss subsidiary,
We intend to continue to incur additional expenditures during the next nine months for additional research and development of our HIV, Covid-19 vaccine development project and immunotherapy projects, which we will try to seek through collaborations with pharmaceutical companies or with not-for-profit organizations. These expenditures will relate to the continued research and testing of these prototype vaccines and are included in the monthly cash outflow described above.
In the past, we have financed our research and development activities primarily through debt and equity financings from various parties and through license and collaboration agreements and grant agreements.
We anticipate that our normal operations will require approximately €660 of
cash in the year ending
Monthly fixed and recurring expenses for "Property leases" of €13 represent the
monthly lease and maintenance payments to unaffiliated third parties for our
offices, of which €4 is related to our executive office located at Route de la
Corniche 4, 1066 Epalinges in
Included in professional fees are legal fees paid to outside corporate counsel and audit and review fees paid to our independent accountants, and fees paid for investor relations.
Cumulative interest expense of €27,768 has been accrued on all of the Company's outstanding notes and advances (see detailed table in Note 2 to the financial statements).
RECENT FINANCING ACTIVITIES
During the nine-month period ending
We have filed or are in the process of filing several new grant applications
with
We anticipate using our current funds and those we receive in the future both to meet our working capital needs and for funding the ongoing vaccines pre-clinical research costs for new virosome vaccine.
Management anticipates that our existing capital resources will be sufficient to fund our cash requirements through the next three months. We have cash presently on hand in conjunction with the collection of receivables, based upon our current levels of expenditures and anticipated needs during this period. For 2020, we will need additional funding through future collaborative arrangements, licensing arrangements, and debt and equity financings under Regulation D and Regulation S under the Securities Act of 1933. We do not know whether additional financing will be available on commercially acceptable terms when needed. These conditions raise substantial doubt about our ability to continue as a going concern.
If management cannot raise funds on acceptable terms when needed, we may not be able to successfully commercialize our technologies, take advantage of future opportunities, or respond to unanticipated requirements. If unable to secure such additional financing when needed, we will have to curtail or suspend all or a portion of our business activities and could be required to cease operations entirely. Further, if new equity securities are issued, our shareholders may experience severe dilution of their ownership percentage.
The extent and timing of our future capital requirements will depend primarily upon the rate of our progress in the research and development of our technologies, our ability to enter into a partnership agreement with a major pharmaceutical company, and the results of our present projects and future clinical trials.
On
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the Company's financial condition, liquidity, and future results of operations.
Management is actively monitoring the global situation on its financial condition, liquidity, operations, scientific collaborations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for the remainder of fiscal year 2020.
The Company's partner for the oncology immunotherapy project in
The Company is dependent on its workforce to deliver and advance its research. Developments such as physical distancing and working from home directives will impact the Company's ability to deploy its workforce effectively. While expected to be temporary, prolonged workforce disruptions may negatively impact future revenues in fiscal year 2020 and the Company's overall liquidity.
The Company is dependent on its partners in certain projects, such as the
Although the Company cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, if the pandemic continues, it may have a material adverse effect on the Company's results of future operations, financial position, and liquidity for the remainder of fiscal year 2020.
OFF-BALANCE SHEET ARRANGEMENTS
None
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