MIRA Pharmaceuticals, Inc. — Q3 2023 Form 10-Q
Reporting period: Quarter and nine months ended September 30, 2023. Financial statements are unaudited. MIRA is a preclinical-stage pharmaceutical company developing MIRA1a, a synthetic THC analog being investigated for anxiety, cognitive decline and neuropathic pain. It has generated no product revenue.
Key financial metrics
| Metric | Q3 2023 / September 30, 2023 | Comparable period / prior year-end |
|---|---|---|
| Revenue | $0 | $0 in Q3 2022 and nine-month periods |
| Operating costs | $3.16 million for Q3 | $1.81 million in Q3 2022 |
| Net loss | $3.59 million for Q3; $6.19 million for nine months | $1.81 million for Q3 2022; $5.71 million for nine months 2022 |
| Loss per share | $0.26 for Q3; $0.45 for nine months | $0.14 for Q3 2022; $0.43 for nine months 2022 |
| Cash and cash equivalents | $5.87 million | $0.35 million at December 31, 2022 |
| Cash flow from operations | $(3.50) million for nine months | $(4.63) million for nine months 2022 |
| Total assets / liabilities | $9.02 million / $0.90 million | $0.86 million / $1.45 million at December 31, 2022 |
| Stockholders’ equity | $8.12 million | $(0.60) million at December 31, 2022 |
Margins are not meaningful because the company has no revenue. The balance sheet implies working capital of approximately $5.20 million (current assets less current liabilities); MD&A instead states $8.1 million. The company reported $15.50 million of accumulated deficit.
Changes and financing
- Q3 net loss increased to $3.59 million from $1.81 million a year earlier, mainly as general and administrative expense and interest expense rose. Nine-month net loss increased to $6.19 million from $5.71 million.
- Q3 2023 operating costs included $1.02 million of R&D and $2.14 million of general and administrative expense. For nine months, the statements report $1.19 million of R&D, $3.83 million of general and administrative expense, and $0.45 million of related-party travel costs.
- The August 2023 IPO sold 1.275 million shares at $7.00 each, raising approximately $8.93 million gross. The company reported issuing 14.78 million common shares outstanding at September 30, compared with 13.31 million at year-end 2022.
- IPO proceeds helped repay $1.0 million of Bay Shore Trust borrowing and $0.03 million of interest. At period-end, the balance sheet shows $14,472 of related-party accrued interest, but no related-party line-of-credit balance. Total liabilities were primarily accounts payable, accrued items and lease liabilities.
- Financing activities provided $9.01 million during the first nine months, including $7.70 million from common-stock sales, net of offering costs. Operating cash use declined from $4.63 million in the prior-year period to $3.50 million.
Outlook, risks and notable items
- Management expects to file an Investigational New Drug application with the FDA by the end of Q3 2024. This is a development target, not an assurance of filing or approval.
- The filing gives inconsistent cash-runway estimates: approximately Q4 2024 in the liquidity note and later MD&A text, but approximately Q1 2025 in another MD&A passage. It says additional financing will be needed thereafter to fund development and commercialization.
- Management cites substantial continuing losses, dependence on external financing, and uncertainties around preclinical work, clinical trials, regulatory approval, suppliers, intellectual property and eventual commercialization. No material non-cancellable contractual obligations were reported.
- A Bay Shore Trust warrant permits purchase of up to 1.0 million shares at $5.00 per share for five years. The IPO underwriter also received 63,750 warrants at $7.00; outstanding options and warrants may dilute shareholders.
- Related-party matters include the Bay Shore Trust financing and a license arrangement with MyMD Pharmaceuticals, which shares board members and officers with MIRA. The license grants MIRA a perpetual, worldwide, royalty-free, non-exclusive right to use Supera-CBD as a synthetic intermediate; it involves no cash payments, but includes information-sharing and improvement-license terms.
- The Tampa office lease remained on MIRA’s balance sheet while a related party paid rent and sought to remove MIRA from the lease. The company reported no material pending legal proceedings and said disclosure controls were effective; it reported no material Q3 changes in internal control over financial reporting.
- The cover page marks “No” for having filed all required reports during the preceding 12 months. Investors should verify the filing status and any explanation in the company’s SEC record.
Important facts to verify
- Which runway estimate is current—Q4 2024 or Q1 2025—and what financing plans support operations beyond that date.
- Why reported working capital differs from the balance-sheet calculation, and why the filing gives multiple IPO net-proceeds figures ($7.61 million, approximately $7.7 million and approximately $8.1 million).
- Why MD&A expense amounts differ from the condensed statements: Q3 general and administrative expense is reported as $2.14 million in the statements versus $1.9 million in MD&A; nine-month amounts are $3.83 million versus $3.5 million. Confirm the correct figures and period presentation.
- The company’s SEC reporting-compliance status, the timing and progress of preclinical studies, and whether the planned IND filing timeline remains achievable.
- Potential dilution from outstanding options and warrants, and the status of related-party lease obligations and remaining accrued interest.