Filing identity and reporting period
The supplied filing is Aikido Pharma Inc.’s unaudited Form 10-Q for the quarter and six months ended June 30, 2021—not a filing identified as Dominari Holdings Inc. Investors should verify the issuer before relying on this summary.
Financial results and position
Amounts below are in thousands of dollars unless stated otherwise. Aikido reported little or no revenue in recent years and said it did not expect product revenue until a biotechnology product is fully developed, potentially years away.
| Metric | Q2 2021 | Q2 2020 | Six months 2021 | Six months 2020 |
|---|---|---|---|---|
| Operating expenses | $2,759 | $1,794 | $5,077 | $4,193 |
| Operating loss | $(2,759) | $(1,794) | $(5,077) | $(4,193) |
| Other income (expense), net | $1,407 | $(519) | $(237) | $(6,453) |
| Net loss | $(1,352) | $(2,313) | $(5,314) | $(10,646) |
| Net loss per share | $(0.02) | $(0.07) | $(0.07) | $(0.50) |
At June 30, 2021, cash and cash equivalents were $7,718 and marketable securities were $87,832; total current assets were $102,068. Current liabilities were $1,052, with no debt reported. Stockholders’ equity was $103,083. Six-month operating cash use was $2,658, investing cash use was $70,412, and financing cash provided was $78,073. The company ended the period with $7,718 in cash.
Changes versus prior period
Q2 operating loss widened by about $965, primarily as general and administrative expense rose $1,326; lower research and development expense partly offset the increase. Net loss improved year over year, mainly because the fair-value loss on the Hoth investment was lower and gains on marketable securities were higher. For the six months, operating loss widened by $884, but net loss improved substantially as the prior-year period included a much larger investment fair-value loss.
A February 2021 public offering and partial over-allotment generated approximately $78.0 million in net proceeds. The company issued 53.9 million shares in the offering; common shares outstanding rose from 34.9 million at December 31, 2020 to 89.5 million at June 30, 2021. The filing reports 89,681,146 shares outstanding as of August 11, 2021.
Outlook, risks and notable items
- Management said available resources were adequate to fund operations for at least 12 months from issuance of the financial statements. It planned to manage cash with an emphasis on asset preservation and to pursue licensing, research partnerships and pipeline expansion.
- The company is a pre-revenue biotechnology business developing oncology and antiviral candidates. Development and commercialization are uncertain, and management does not anticipate product revenue for potentially many years.
- COVID-19 had slowed some drug development and acquisition activity. Management said activity was continuing as pandemic effects eased, but potential financial and operational effects remained uncertain.
- During the quarter, the company deposited $5 million with a fund seeking Asia business opportunities, incurred approximately $0.5 million in advisory fees, and reported $4.476 million in deposits at quarter-end.
- The company acquired a $2 million, 8% Convergent Therapeutics convertible note, due January 2023, and recorded approximately $67,000 of accrued interest receivable. The balance sheet reports a fair value of $2.067 million.
- Management concluded disclosure controls were not effective at June 30, 2021, citing material weaknesses including inadequate segregation of duties and insufficient controls to ensure all material transactions and developments were reflected in the financial statements.
- No material active or pending legal proceedings were reported; the filing stated there were no material changes to previously disclosed risk factors.
Key facts for investors to verify
- Confirm the intended issuer: the supplied 10-Q names Aikido Pharma Inc., whereas the request metadata names Dominari Holdings Inc.
- Reconcile share counts: 89,531,146 common shares outstanding at June 30 versus 89,681,146 reported as of August 11, 2021.
- Review the composition, valuation and liquidity of the $87.8 million marketable-securities portfolio, and the terms and valuation assumptions for the Convergent note and Asia-focused fund deposit.
- Assess cash runway against research, licensing and administrative spending, given no expected near-term product revenue.
- Evaluate the disclosed internal-control material weaknesses and any remediation updates in subsequent filings.