Replies to post #139425 on NanoViricides Inc. (NNVC)

[arvitar]

This PR paints an overoptimistic picture of their financial condition.


For the period ending Sept 30, 2017, the company reported $13.5M in cash and cash equivalents, with accounts payable of $125K, giving them $13.4M dollar bills left to spend.

For the period ending Dec 31, 2017, the company reported $12M of cash and cash equivalents, with accounts payable of $100K, leaving them with $12M dollar bills to spend.

For their recent reporting period discussed in the PR, ending March 31, 2018, the company reported cash and cash equivalents of $10.6M and accounts payable of $2.3M, leaving $8.3M dollars to spend.

Hence, the company's available cash dwindled by $1.4M in the 3 months between Sept 31 and Dec 31, but by almost $4M during the 3 months of the last reporting period.

If the reduction in available cash continues at the same rate as in the last reporting period, say $1M/month, they would have $6M to spend at the end of this month, and $0 by the end of Nov 2018.


For the past year, the company has been trying to raise cash, as indicated by their claim in all their SEC filings: "The Company has engaged investment banks to advise it as to raising further funding as the Company progresses towards human clinical trials."

Yet, the company has so far failed to raise a single penny. Certainly not the rosy picture painted in the PR.

[loanranger]

"Company Has Over A Year's Worth of Cash in Hand"

In the headline? Really? And in the body? Qualifiers:
"The Company estimates that it has sufficient cash in hand to last more than one year of operations at the current rate of expenditure."
"The Company has stated that it will be required to raise additional capital in the near future to fund our drug candidates as they advance towards IND stage and into human clinical trials, as is the case with most if not all non-revenue innovative pharmaceutical companies."

It's deceptive to make that unqualified statement in the headline. And the qualifiers soft pedal the issue, omitting the info that really matters:
"However, management believes that the available funds are insufficient for the Company’s projected work, which is beyond our normal pre-clinical development operations, leading towards an Investigational New Drug Application (IND) filing with the U.S. Food and Drug Administration (FDA), to continue through May 2019."

The text of a press release should provide unqualified support to its headline, not explain why that headline IS NOT TRUE if the Company actually wants to execute its operational strategy.


There is, of course, one way to justify the headline but it may be to say something that the company would rather not say and that would be this:
The Company Has Over A Year's Worth of Cash in Hand because it does not expect to conduct the activities leading towards an Investigational New Drug Application (IND) filing with the U.S. Food and Drug Administration (FDA) during the next 12 months.

Maybe that's the case and if so management may have deemed it to be TMI to put in their promotional press release..