Scopus BioPharma Inc. (SCPS)

[FACT-MASTER]

tsk tsk Scopus mgmt.


The Registrant expects to report a material increase in net loss, key components of which are set forth below, for the year ended December 31, 2021, as compared to a net loss of approximately $11 million for the year ended December 31, 2020. The net loss for the year ended December 31, 2021 is attributable principally to: (a) approximately $15 million of research and development expenses, including acquired in-process research and development expensed in connection with a key acquisition and (b) approximately $13 million of general and administrative expenses, including an aggregate of approximately $8 million of fees, costs and/or expenses relating to (i) a proxy contest for the 2021 Annual Meeting of Stockholders and related proceedings, including an action pursuant to Section 225 of the Delaware General Corporation Law and (ii) additional related litigation by or against the participants engaged in the proxy contest and other litigation by parties associated and/or acting with such participants. The amount set forth in (a) above includes non-cash expenses of approximately $12.6 million. In addition, certain of the amounts described in (b) above include accruals recorded in the year ended December 31, 2021. Subsequent to December 31, 2021, the Registrant has been negotiating with various parties for a reduction in certain of the amounts included in (b) above. Any reduction would be reflected as a reduction in accounts payable and accrued expenses in the period such reduction is recognized. As a result of such negotiations, on January 31, 2022, the Registrant recognized a reduction in accounts payable and accrued expenses which it expects to be reflected in its financial statements for the period ended March 31, 2022. There can be no assurance that the Registrant will be successful in negotiating any additional or material reductions.