Virpax Pharmaceuticals, Inc. reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company experienced a drastic decline in total current assets, which fell to $304,162 from $9,628,345 at the end of 2023. Total liabilities also decreased to $2,355,774 from $7,694,024, indicating a reduction in financial obligations. However, the accumulated deficit increased to $(68.2 million) from $(59.5 million) over the same period, reflecting ongoing operational losses.
For the three months ended September 30, 2024, Virpax reported total operating expenses of $1,924,354, a substantial decrease from $6,115,138 in the same quarter of 2023. This reduction was primarily due to lower general and administrative expenses, which dropped by 83% to $780,958, attributed to settled litigation liabilities and reduced legal costs. Research and development expenses also decreased by 24% to $1,143,396, reflecting a shift in focus away from certain preclinical activities.
The net loss for the three months ended September 30, 2024, was $(2,006,456), significantly improved from $(5,994,498) in the prior year. For the nine-month period, the net loss was $(8,677,137), down from $(10,627,799) in 2023. The company reported no revenues generated during this period, continuing its trend of unprofitable operations since inception.
Virpax's cash position was critically low, with approximately $17,000 as of September 30, 2024, and $2.5 million as of November 14, 2024. The company utilized proceeds from a public offering and warrant exercises to partially offset cash flow challenges, reporting $4,717,930 in cash provided by financing activities for the nine months ended September 30, 2024.
Strategically, Virpax formed a subsidiary, Novvae Pharmaceuticals, Inc., in July 2023, aimed at developing over-the-counter products, although no activities were reported as of the latest filing. The company also entered into a settlement agreement on February 29, 2024, with Sorrento Therapeutics and Scilex Pharmaceuticals, resolving litigation for a total payment of $6 million. This settlement included a royalty agreement on future product sales.
Leadership changes included the resignation of former CEO Anthony P. Mack in November 2023, with Jatinder Dhaliwal appointed as the new CEO in October 2024. The company is currently facing substantial doubt regarding its ability to continue operations due to ongoing losses and insufficient capital, necessitating additional financing to support its product development and operational needs.
About Virpax Pharmaceuticals, Inc.
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