UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934.

 

For the quarterly period ended March 31, 2014

 

Commission File Number: 333-148471

 

NANOVIRICIDES, INC.

 

(Exact name of Company as specified in its charter)

 

NEVADA   76-0674577
(State or other jurisdiction)   (IRS Employer Identification No.)
of incorporation or organization)    

 

135 Wood Street, Suite 205

West Haven, Connecticut 06516

(Address of principal executive offices and zip code)

 

(203) 937-6137

(Company’s telephone number, including area code)

 

Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   x    No   ¨

 

Indicate by check mark whether the Company has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Company was required to submit and post such files). Yes x   No ¨

 

Indicate by check mark whether the Company is a larger accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one)

 

Large accelerated filer ¨ Accelerated filer ¨
Non-accelerated filer x Smaller reporting company ¨

 

Indicate by check mark whether the Company is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨    No x

 

The number of shares outstanding of the Company's common stock, par value $0.001 per share, as of May 15, 2014, was approximately: 54,536,000

 

 
 

 

NANOVIRICIDES, INC.

FORM 10-Q

INDEX

 

PART I FINANCIAL INFORMATION  
   
Item 1. Financial Statements  
   
Balance Sheets at March 31, 2014 (Unaudited) and June 30, 2013 3
   
Statements of Operations for the Three Months and Nine Months Ended March 31, 2014 and 2013 and for the Period from May 12, 2005 (Inception) through March 31, 2014 (Unaudited) 4
   
Statement of Stockholders’ Equity For the period May 12, 2005 (inception through March 31, 2014 (Unaudited) 5
   
Statements of Cash Flows for the Nine Months Ended March 31, 2014 and 2013 and for the Period from May 12, 2005 (Inception) through March 31, 2014 (Unaudited) 6
   
Notes to the Financial Statements (Unaudited) 7
     
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 39
     
Item 4. Controls and Procedures 39
     
PART II OTHER INFORMATION  
     
Item 1. Legal Proceedings 41
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42
     
Item 3. Defaults Upon Senior Securities 42
     
Item 4. Mine Safety Disclosures 43
     
Item 5. Other Information 43
     
Item 6. Exhibits and Reports on Form 8-K 43
     
Signatures 44
   
Certifications  

 

2
 

 

Nanoviricides, Inc.

 

(A Development Stage Company)

Balance Sheets

 

   March 31, 2014   June 30, 2013 
   (Unaudited)     
         
ASSETS          
CURRENT ASSETS:          
Cash and cash equivalents  $33,265,348   $13,923,245 
Prepaid expenses   1,338,895    598,380 
           
Total Current Assets   34,604,243    14,521,625 
           
PROPERTY AND EQUIPMENT          
Property and equipment   5,123,849    1,505,648 
Accumulated depreciation   (1,188,654)   (1,036,752)
           
Property and equipment, net   3,935,195    468,896 
           
TRADEMARK          
Trademark   458,954    458,954 
Accumulated amortization   (48,502)   (41,921)
           
Trademark, net   410,452    417,033 
           
SECURITY DEPOSIT   2,000,000    1,000,000 
           
Total Assets  $40,949,890   $16,407,554 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
CURRENT LIABILITIES:          
Accounts payable  $255,002   $263,258 
Accounts payable – related parties   746,036    710,567 
Accrued expenses   207,096    204,359 
           
Total Current Liabilities   1,208,134    1,178,184 
           
LONG TERM LIABILITIES:          
Debentures payable   3,887,378    3,468,073 
Derivative liability   3,824,986    3,751,645 
Total Long Term Liabilities   7,712,364    7,219,718 
           
Total Liabilities   8,920,498    8,397,902 
           
COMMITMENTS AND CONTINGENCIES          
           
STOCKHOLDERS' EQUITY:          
Series A Convertible Preferred stock, $0.001 par value, 4,000,000 shares designated, 3,017,307 and 2,990,000 shares issued and outstanding, respectively   3,018    2,990 
Series B Convertible Preferred stock, $0.001 par value, 2,857,143 shares designated, none issued and outstanding   -    - 
Series C Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, none issued and outstanding   -    - 
Common stock, $0.001 par value; 85,714,286 shares authorized; 54,536,081 and 47,026,173 shares issued and outstanding, respectively   54,536    47,026 
Additional paid-in capital   78,531,194    46,259,420 
Deficit accumulated during the development stage   (46,559,356)   (38,299,784)
           
Total Stockholders' Equity   32,029,392    8,009,652 
           
Total Liabilities and Stockholders' Equity  $40,949,890   $16,407,554 

 

See accompanying notes to the financial statements

 

3
 

 

NanoViricides, Inc.

 

(A Development Stage Company)

Statements of Operations 

 

                   For the Period from 
   For the Three Months   For the Three Months   For the Nine Months   For the Nine Months   May 12, 2005 
   Ended   Ended   Ended   Ended   (inception) through 
   March 31, 2014   March 31, 2013   March 31, 2014   March 31, 2013   March 31, 2014 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
                     
OPERATING EXPENSES                         
Research and development  $625,737   $1,359,205   $2,930,436   $3,279,220   $25,734,496 
Refund credit research and development costs   -    -    -    -    (420,842)
General and administrative   607,628    831,353    1,943,123    1,748,582    14,957,971 
                          
Total operating expenses   1,233,365    2,190,558    4,873,559    5,027,802    40,271,625 
                          
LOSS FROM OPERATIONS   (1,233,365)   (2,190,558)   (4,873,559)   (5,027,802)   (40,271,625)
                          
OTHER INCOME (EXPENSE):                         
Interest income   54,789    -    78,850         346,548 
Interest expense   (2,725,716)   (822,278)   (2,972,216)   (770,825)   (3,149,254)
Amortization of discount on convertible debentures   (143,051)   -    (419,305)   -    (1,407,738)
Beneficial conversion feature of convertible debentures   -    -    -    -    (713,079)
Change in fair market value of derivatives   3,752,933    (669,753)   (73,342)   (896,302)   (1,364,208)
                          
Other income (expense), net   938,955    (1,492,031)   (3,386,013)   (1,667,127)   (6,287,731)
                          
LOSS BEFORE INCOME TAX PROVISION   (294,410)   (3,682,589)   (8,259,572)   (6,694,929)   (46,559,356)
                          
INCOME TAX PROVISION   -    -    -    -    - 
                          
NET LOSS  $(294,410)  $(3,682,589)  $(8,259,572)   (6,694,929)  $(46,559,356)
                          
NET LOSS PER COMMON SHARE                         
- BASIC AND DILUTED:  $(0.01)  $(0.08)  $(0.16)   (0.15)     
                          
Weighted average common shares outstanding                         
- basic and diluted   53,318,736    46,701,410    50,307,984    45,686,379      

 

See accompanying notes to the financial statements 

 

4
 

 

NanoViricides, Inc.
Statement of Stockholders' Equity
For the period from May 12, 2005 (inception) through March 31, 2014

 

   Series A Preferred Stock:
Par $0.001		   Series B Preferred Stock:
Par $0.001		   Series C Preferred Stock:
Par $0.001		   Common Stock:
Par $0.001		   Additional   Stock   Deficit Accumulated During the   Total 
   Number of       Number of       Number of       Number of       Paid-in   Subscription   Development   Stockholders' 
   Shares   Amount   Shares   Amount   Shares   Amount   Shares   Amount   Capital   Receivable   Stage   Equity 
                                                 
Common shares issued May 12, 2005 (Inception)                                 5,714    6    14    (20)        - 
Share exchange with Edot-com.com Inc., June 1, 2005                                 (5,714)   (6)   (14)   20         - 
Common shares exchanged in reverse acquisition of Edot-com.com Inc., June 1, 2005                                 22,857,143    22,857    (22,837)   (20)        - 
Common shares outstanding Edot-com.com Inc., June 1, 2005                                 5,714,286    5,714    (5,714)             - 
Options granted in connection with reverse acquisition                                 -         -              - 
                                                             
Net loss                                 -         -         (66,005)   (66,005)
                                                             
Balance, June 30, 2005   -    -    -    -    -    -    28,571,429    28,571    (28,551)   (20)   (66,005)   (66,005)
                                                             
Discount related to beneficial conversion feature of Convertible debentures, July 13, 2005                                 -         5,277              5,277 
Legal expenses related private placement of common stock, July 31, 2006                                 -         (2,175)             (2,175)
Discount related to beneficial conversion feature of Convertible debentures, July 31, 2005                                 -         5,302              5,302 
Warrants issued to Scientific Advisory Board, August 15, 2005                                 -         4,094              4,094 
Options issued to officers, September 23, 2005                                 -         87,318              87,318 
Common shares issued for consulting services valued at $.081 per share, September 30, 2005                                 657,143    657    185,643              186,300 
Common shares issued for interest on debentures, September 30, 2005                                 13,765    14    4,301              4,315 
Discount related to beneficial conversion feature of Convertible debentures, October 28, 2005                                 -         166,666              166,666 
Discount related to beneficial conversion feature of Convertible debentures, November 9, 2005                                 -         166,667              166,667 
Discount related to beneficial conversion feature of Convertible debentures, November 10, 2005                                 -         45,000              45,000 
Discount related to beneficial conversion feature of Convertible debentures, November 11, 2005                                 -         275,000              275,000 
Discount related to beneficial conversion feature of Convertible debentures, November 15, 2005                                 -         49,167              49,167 
Warrants issued to Scientific Advisory Board, November 15, 2005                                 -         25,876              25,876 
Common shares and warrants issued in connection with private placement of common stock, November 28, 2005                                 97,143    97    169,903              170,000 
Common shares and warrants issued in connection with private placement of common stock, November 29, 2005                                 85,715    86    149,914              150,000 
Common shares and warrants issued in connection with private placement of common stock, November 30, 2005                                 42,857    43    74,957              75,000 
Common shares and warrants issued in connection with private placement of common stock, December 2, 2005                                 28,571    29    49,971              50,000 
Common shares and warrants issued in connection with private placement of common stock, December 6, 2005                                 242,857    243    424,757              425,000 
Common shares issued for legal services valued at $.95 per share, December 6, 2005                                 5,714    6    18,994              19,000 
Common shares and warrants issued in connection with private placement of common stock, December 12, 2005                                 214,286    214    374,786              375,000 
Common shares and warrants issued in connection with private placement of common stock, December 13, 2005                                 14,286    14    24,986              25,000 
Common shares and warrants issued in connection with private placement of common stock, December 14, 2005                                 14,285    14    24,986              25,000 
Common shares issued in connection with debenture offering, December 15, 2005                                 14,286    14    48,986              49,000 
Common shares and warrants issued in connection with private placement of common stock, December 20, 2005                                 14,285    14    24,986              25,000 
Common shares and warrants issued in connection with private placement of common stock, December 29, 2005                                 14,286    14    24,986              25,000 
Common shares and warrants issued in connection with private placement of common stock, December 30, 2005.                                 14,285    14    24,986              25,000 
Common shares issued for interest on debentures, December 31, 2005                                 5,565    6    17,334              17,340 
Common shares issued for consulting services valued at $1.46 per share, January 9, 2006                                 978    1    5,000              5,001 
Warrants issued to Scientific Advisory Board, February 15, 2006                                 -         49,067              49,067 
Warrnats issued to Scientific Advisory Board, May 15, 2006                                 -         51,048              51,048 
Common shares issued for interest on debentures, March 31, 2005                                 2,263    2    22,190              22,192 
Options exercised, May 31, 2006                                 514,286    515    89,485              90,000 
Common shares and warrants issued in connection with private placement of common stock, June 15, 2006                                 535,714    536    1,874,464              1,875,000 
Common shares issued for interest on debentures, June 30, 2006                                 4,122    4    22,434              22,438 
                                                             
Net loss                                                     (3,284,432)   (3,284,432)
                                                             
Balance, June 30, 2006   -    -    -    -    -    -    31,108,121    31,108    4,557,805    (20)   (3,350,437)   1,238,456 
                                                             
Common shares issued for interest on debentures, July 31, 2006                                 1,641    2    7,642              7,644 
Common shares issued for conversion of convertible debentures, July 31, 2006                                 952,381    952    999,048              1,000,000 
Exercise of stock warrants, July 31, 2006                                 57,143    57    49,943              50,000 
Options issued to Scientific Advisory Board, August 15, 2006                                 -         30,184              30,184 
Options issued to Scientific Advisory Board, November 15, 2006                                 -         25,888              25,888 
Common shares issued for consulting services valued at $.76 per share, January 3, 2007                                 61,714    62    164,098              164,160 
Options issued to Scientific Advisory Board, February 15, 2007                                 -         32,668              32,668 
Options issued to Scientific Advisory Board, May 15, 2007                                 -         25,664              25,664 
Common shares issued for consulting services valued at $1.03 per share, June 12, 2007                                 215    -    775              775 
Common shares issued for consulting services valued at $1.15 per share, June 20, 2007                                 28,572    29    114,971              115,000 
Common shares issued upon warrants conversion, June 20, 2007                                 265,714    266    619,734              620,000 
Common shares issued upon warrants conversion, June 25, 2007                                 21,429    21    49,979              50,000 
Common shares issued upon warrants conversion, June 30, 2007                                 85,714    86    199,914              200,000 
Common shares issued for consulting services valued at $1.06 per share, June 30, 2007                                 8,540    9    31,791              31,800 
Officers' compensation expense                                 -         27,062              27,062 
                                                             
Net loss                                 -         -         (3,118,963)   (3,118,963)
                                                             
Balance, June 30, 2007   -    -   $-    -    -    -    32,591,184    32,592   $6,937,166   $(20)   (6,469,400)  $500,338 
                                                             
Warrants issued to Scientific Advisory Board, August 15, 2007                                 -         14,800              14,800 
Common shares and warrants issued in connection with private placement of common stock, September 21, 2007                                 428,571    429    749,571              750,000 
Common shares issued for consulting and legal  services valued at $.75 per share, September 30,  2007                                 7,213    7    18,393              18,400 
Common shares and warrants issued in connection with private placement of common stock, October 16,  2007                                 928,571    929    1,624,071              1,625,000 
Common shares and warrants issued in connection with private placement of common stock, October 16, 2007                                 71,428    71    124,929              125,000 
Collection of stock subscriptions receivable, October 17, 2007                                 -         -    20         20 
Warrants issued to Scientific Advisory Board, November 15, 2007                                 -         7,200              7,200 
Common shares issued for consulting and legal services valued at $.49 per share, December 31, 2007                                 16,329    16    26,884              26,900 
Options issued to officers, January 1, 2008                                 -         7,044              7,044 
Warrants issued to Scientific Advisory Board, February 15, 2008                                 -         8,500              8,500 
Common shares issued for consulting and legal services valued at $ .45 per share,March 31, 2008                                 17,585    18    27,882              27,900 
Common shares issued for consulting services valued at $.39 per share, April , 2008                                 7,929    8    10,813              10,821 
Warrants issued to Scientific Advisory Board, May 15, 2008                                 -         32,253              32,253 
Common shares issued for consulting services valued at $1.03 per share, June 30, 2008                                 8,526    9    27,891              27,900 
                                                             
Net loss                                 -         -         (2,738,337)   (2,738,337)
                                                             
Balance, June 30, 2008   -    -    -    -    -    -    34,077,336   $34,079   $9,617,397   $-   $(9,207,737)  $443,739 
                                                             
Common shares issued for consulting and legal services valued at $ 1.22 per share, July 31, 2008                                 1,171    1    4,999              5,000 
Common shares issued for consulting services valued at $1.22 per share, July , 2008                                 656    1    2,799              2,800 
Warrants issued to Scientific Advisory Board, August 15, 2008                                 -    -    47,500              47,500 
Common shares and warrants issued in connection with private placement of common stock, August 22, 2008                                 896,000    896    3,135,104              3,136,000 
Common shares issued to settle account payable                                 42,857    43    149,957              150,000 
Payment of Finder's Fee to Biotech                                 -    -    (14,696)             (14,696)
Common shares issued in connection with Warrant Conversion, August 22, 2008                                 35,714    36    106,214              106,250 
Common shares issued for  legal services valued at $1.24per share, August 31, 2008                                 1,152    1    4,999              5,000 
Common shares issued for consulting services valued at $1.24 per share, August,  2008                                 645    1    2,799              2,800 
Common shares issued for  legal services valued at $1.00 per share, September 30, 2008                                 1,429    1    4,999              5,000 
Common shares issued for consulting services valued at $1.00 per share, September 30, 2008                                 1,600    2    5,598              5,600 
Common shares issued for consulting and legal services valued at $ .71 per share, October 31, 2008                                 2,012    2    4,998              5,000 
Common shares issued for consulting services valued at $.71 per share, October 31, 2008                                 2,254    2    5,598              5,600 
Warrants issued to Scientific Advisory Board, November 15, 2008                                 -    -    30,500              30,500 
Common shares issued for consulting and legal services valued at $ .67 per share, November 30, 2008