LIQUIDITY |
12 Months Ended |
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Jun. 30, 2022 | |
LIQUIDITY | |
LIQUIDITY |
NOTE 2 — LIQUIDITY The Company is in the clinical stage and has not yet generated any revenues. For the fiscal year ended June 30, 2022, the Company incurred a net loss of $41.1 million and net cash used in operating activities amounted to $39.6 million. As of June 30, 2022, the Company had an accumulated deficit of $209.2 million, cash and cash equivalents of $150.4 million, and total current liabilities of $2.5 million. As discussed in Note 4, the Company is subject to license agreements that provide for future contractual payments upon achievement of various milestone events. Pursuant to the ActiveSite License Agreement, a $3.0 million milestone payment will be due upon dosing of the first patient in a Phase 2 clinical trial for RZ402. Additionally, pursuant to the XOMA License Agreement (as defined below), a $5.0 million milestone payment will be due upon dosing of the first patient in a Phase 3 clinical trial for RZ358. After underwriting discounts of $7.1 million, the Company received proceeds of approximately $110.5 million upon closing of a registered direct offering on May 4, 2022. This amount consists of $39.1 million related to the issuance of 10.9 million Class B pre-funded warrants where exercise was subject to shareholder approval of an increase in the Company’s authorized shares, for which approval was received in June 2022, and the remainder of $71.4 million related to unrestricted issuances of equity securities. As discussed in Note 15, in July 2022 the Company received gross proceeds of approximately $12.3 million related to a private placement of approximately 3.2 million shares of common stock. Management believes the Company’s cash and cash equivalents balance of $150.4 million as of June 30, 2022, and additional proceeds received in July 2022 from the private placement, will be adequate to carry out currently planned activities through September 2023, at a minimum. |