Full Press Release Details
Biosciences Reports Full Year 2020 Financial Results and Provides Shareholder Update on its Accomplishments in 2021
balance sheet during the first quarter of 2021 with the closing of two direct offerings totaling $22.8 million in gross proceeds
and $3.3 million from the exercise of warrants
development agreement collaboration and supply agreement with PureForm Global to support cannabinoid clinical programs
definitive agreement to acquire exclusive license for novel molecules for pre-clinical and clinical development in pain and dermatology
to alleviate the side effects as a result of cancer treatment
Fla. - April 1, 2021 - Enveric Biosciences, Inc. (NASDAQ: ENVB) ("Enveric" or the "Company"),
a patient-first biotechnology company developing novel cannabinoid (CBD)_medicines to improve quality of life for cancer patients,
today reported its financial results for the year ended December 31, 2020 and provided shareholders with an update on its accomplishments
Johnson, Chairman and Chief Executive Officer, said, "Since the closing of our going public transaction in late December
2020, our team has achieved several critical milestones that have positioned our Company to accelerate the execution of our vision
to extend and enhance the quality of life for cancer patients in need through researching and developing novel supportive care
Johnson continued, "Our ability to strengthen our balance sheet through the closing of approximately $22.8 million in gross
proceeds during the first quarter of 2021 has allowed us the opportunity to not only accelerate the research and development of
our cannabinoid-based therapies, but also the optionality to evaluate a robust pipeline of strategic asset acquisitions and partnerships.
During the first quarter of 2021, we launched a development collaboration and supply agreement with PureForm and shortly thereafter
acquired the exclusive license to five molecules focused on pain and dermatology indications. Our team remains focused on advancing
several pivotal studies throughout the remainder of 2021 in the large, unmet, supportive care market for cancer."
for the Remainder of 2021:
Results for the Year Ended December 31, 2020:
cash used in operating activities was $3,888,785 during the year ended December 31, 2020, which consisted primarily of a net loss
of $6,864,676, offset by amortization of note discount of $288,631, stock-based compensation of $1,977,155, induced conversion
of warrants of $802,109, amortization of intangible assets of $120,872, increases in prepaid expenses and other current assets
for $636,497, and increases in accounts payable and accrued liabilities of $267,002.
operating expenses increased to $5,617,317, for the year ended December 31, 2020 from $2,296,534 for the year ended December 31,
2019, for an increase of $3,320,783, or 145%. This change was primarily driven by an increase in general and administrative fees
of $3,146,700 and an increase in research and development costs of $174,083.
cash provided by financing activities was $5,531,270 during the year ended December 31, 2020. Cash as of December 31, 2020 totaled
$1,578,460 and the Company currently has no debt.
to December 31, 2020, the Company completed two registered direct offerings for gross proceeds of $22.8 million. On March 10,
2021, the Company also received $3,267,245 from the exercise of warrants to purchase 851,099 shares of common stock.
of March 29, 2021, the Company had 19,450,507 shares of common stock outstanding.
Biosciences is a patient-first biotechnology company developing rigorously tested, novel cannabinoid medicines to improve quality
of life for cancer patients. Initial indications include radiodermatitis, a common and often severe side effect of radiation therapy,
and chemotherapy-induced neuropathy. For more information, please visit https://www.enveric.com/.
press release contains forward-looking statements and forward-looking information within the meaning of applicable securities
laws. These statements relate to future events or future performance. All statements other than statements of historical fact
may be forward-looking statements or information. Generally, forward-looking statements and information may be identified by the
use of forward-looking terminology such as "plans", " expects" or "does not expect", "proposed",
"is expected", "budgets", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such words and phrases,
or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be
achieved. Forward-looking statements consist of statements that are not purely historical, including any statements regarding
beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements are based on the beliefs of management
as well as assumptions made by and information currently available to management. Actual results could differ materially from
those contemplated by the forward-looking statements as a result of certain factors, including, but not limited to, the impact
of the novel coronavirus (COVID-19) on Enveric's ongoing and planned clinical trials; the geographic, social and economic
impact of COVID-19 on Enveric's ability to conduct its business and raise capital in the future when needed; delays in planned
clinical trials; the ability to establish that potential products are efficacious or safe in preclinical or clinical trials; the
ability to establish or maintain collaborations on the development of therapeutic candidates; the ability to obtain appropriate
or necessary governmental approvals to market potential products; the ability to obtain future funding for developmental products
and working capital and to obtain such funding on commercially reasonable terms; Enveric's ability to manufacture product
candidates on a commercial scale or in collaborations with third parties; changes in the size and nature of competitors; the ability
to retain key executives and scientists; and the ability to secure and enforce legal rights related to Enveric's products,
including patent protection. A discussion of these and other factors, including risks and uncertainties with respect to Enveric,
is set forth in Enveric's registration statement on Form S-4 filed on May 28, 2020, as amended. Enveric disclaims any intention
or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise, except
Pinto / Allison Soss
Strategic Communications
Kasunich / Raquel Cona
Strategic Communications
BIOSCIENCES, INC. AND SUBSIDIARY
| As of December 31, | ||||||||
| 2020 | 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 1,578,460 | $ | 43,714 | ||||
| Prepaid expenses and other current assets | 700,710 | 65,075 | ||||||
| Total current assets | 2,279,170 | 108,789 | ||||||
| Intangible assets | 1,817,721 | - | ||||||
| Total assets | $ | 4,096,891 | $ | 108,789 | ||||
| Liabilities and Shareholders' Equity (Deficit) | ||||||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 681,250 | $ | 1,157,645 | ||||
| Advance from related party | - | 22,409 | ||||||
| Notes payable | - | 446,415 | ||||||
| Convertible notes payable | - | 293,921 | ||||||
| Total liabilities | 681,250 | 1,920,390 | ||||||
| Commitments | ||||||||
| Shareholders' Equity (Deficit) | ||||||||
| Preferred Stock, $0.01 par value, 20,000,000 shares authorized, 3,275,407 and 262,500 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively | 32,754 | 2,625 | ||||||
| Common stock, $0.01 par value, 100,000,000 shares authorized, 10,095,109 and 5,311,414 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively | 100,951 | 53,114 | ||||||
| Additional paid-in capital | 15,222,770 | 3,039,163 | ||||||
| Accumulated deficit | (11,759,557 | ) | (4,894,881 | ) | ||||
| Accumulated other comprehensive loss | (181,277 | ) | (11,622 | ) | ||||
| Total shareholders' equity (deficit) | 3,415,641 | (1,811,601 | ) | |||||
| Total liabilities and shareholders' equity (deficit) | $ | 4,096,891 | $ | 108,789 |
BIOSCIENCES, INC. AND SUBSIDIARY
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
| For the Years Ended December 31, | ||||||||
| 2020 | 2019 | |||||||
| Expenses | ||||||||
| General and administrative expenses | $ | 5,443,234 | $ | 2,296,534 | ||||
| Research and development | 174,083 | - | ||||||
| Loss from operations | (5,617,317 | ) | (2,296,534 | ) | ||||
| Other expense | ||||||||
| Extinguishment of note payable | - | 32,316 | ||||||
| Interest expense | 445,250 | 81,823 | ||||||
| Inducement expense | 802,109 | - | ||||||
| Total other expense | 1,247,359 | 114,139 | ||||||
| Net loss | (6,864,676 | ) | (2,410,673 | ) | ||||
| Other comprehensive loss | ||||||||
| Foreign exchange loss | (169,655 | ) | (6,667 | ) | ||||
| Comprehensive loss | $ | (7,034,331 | ) | $ | (2,417,340 | ) | ||
| Net loss per share - basic and diluted | $ | (1.19 | ) | $ | (0.46 | ) | ||
| Weighted average shares outstanding, basic and diluted | 5,753,598 | 5,287,145 |