RegenCell BioScience Holdings (RGC)

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Regencell Bioscience : Announces First Half 2022 Management Financial Results - Form 6-K

Regencell Bioscience Limited (Nasdaq: RGC), announced its unaudited interim financial results for the six months ended December 31, 2021.

Some of the important notes are highlighted below,

Recent Developments
Entry into Joint Venture Agreement on September 2, 2021, Regencell Bioscience Limited entered into a joint venture agreement (the "JV Agreement") with Honor Epic Enterprises Limited ("Honor Epic"), a company incorporated in the British Virgin Islands, to form a joint venture under the laws of Hong Kong.

Operation Expenses
During the six-month period ended December 31, 2021, we incurred total operating expenses of approximately $3.7 million, an increase of approximately $3.3 million, or 893%, as compared to total operating expenses of approximately $0.4 million during the six-month period ended December 31, 2020

General and administrative expenses increased by approximately $2.4 million, or 2,106%, to approximately $2.5 million for the six-month period ended December 31, 2021 from approximately $0.1 million for the six-month period ended December 31, 2020. The increase was mainly attributable to

(i) approximately $1.0 million in amortization of share based payments for our general and administrative personnel for the six-month period ended December 31, 2021,

(ii) approximately $0.5 million increase in professional fees, such as legal services and public relations services as we became a public company listed on the Nasdaq Capital Market,

(iii) approximately $0.4 million increase in salaries due to the increase in the number of staff and bonus payments during the six-month period ended December 31, 2021,

(iv) approximately 0.3 million increase in rental expenses due to the rental of new office and staff quarters,

(v) approximately 0.2 million increase in traveling and entertainment and others mainly due to more business activities since our operation expanded during the six-month period ended December 31, 2021

Other Income, Net
Total other income, net was approximately $100 for the six-month period ended December 31, 2021 and total other income, net was approximately $35,000 for the six-month period ended December 31, 2020.

Other income mainly consisted of cash received from a government grant and interest income. Other income decreased to approximately $100 for the six-month period ended December 31, 2021 from approximately $35,000 for the six-month period ended December 31, 2020, because the Company did not receive any government grants in respect of COVID-19-related subsidies from the Employment Support Scheme provided by the Hong Kong Government under the Anti-Epidemic Fund during the six-month period ended December 31, 2021

Cash
As of December 31, 2021, we had cash of approximately $19 million compared to approximately $0.06 million as of June 30, 2021. The increase of cash was mainly due to the receipt of net IPO proceeds from the completion of our IPO in July 2021. The net proceeds of the IPO, including proceeds from the sale of Over-allotment Shares, totaled approximately $22.7 million, after deducting underwriting discounts and other related expenses of approximately $2.3 million.

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