IZTC
Invizyne Technologies INC
NASDAQ
10-Q: Invizyne Technologies Reports Q3 2024 Results, Highlights IPO and Growth Initiatives
Sentiment:
Quarterly Report
12 November 2024 4:55 PM
Invizyne Technologies reported its Q3 2024 financial results, noting increased operating costs and a net loss, while also highlighting its recent IPO and future growth plans.
Worse than expected
The company's net loss of $4.03 million for the nine months ended September 30, 2024, is significantly worse than the $939,825 loss for the same period in 2023.
The company's operating costs have increased substantially, leading to a larger net loss.
The company's working capital deficit of $4.38 million as of September 30, 2024, is a significant deterioration compared to the $1.2 million deficit at the end of 2023.
Capital raise
The company completed its IPO on November 13, 2024, selling 1,875,000 shares of Common Stock for gross proceeds of $15,000,000 and net proceeds of approximately $14,321,686.
The company issued 93,750 warrants to the underwriter and its assignees to purchase up to 93,750 shares of Common Stock.
The company sold 93,750 warrants to accredited investors in a concurrent private offering for gross proceeds of approximately $11,719, with potential additional proceeds of up to $750,000 if the warrants are fully exercised.
The company issued 125,001 shares of Common Stock on the conversion of SAFEs on November 12, 2024.
Summary
- Invizyne Technologies, a pre-revenue biotechnology company, reported a net loss of $1.66 million for the three months ended September 30, 2024, and a net loss of $4.03 million for the nine months ended September 30, 2024.
- The company's operating costs increased significantly, with general and administrative costs rising to $888,239 for the quarter and $2.71 million for the nine months, and research and development costs, net of grants, reaching $723,487 for the quarter and $1.24 million for the nine months.
- The company completed its IPO on November 13, 2024, raising approximately $14.3 million in net proceeds.
- The company plans to use the IPO proceeds for expansion of production capabilities, staffing, R&D, and repayment of intercompany loans.
- As of September 30, 2024, the company had cash and cash equivalents of $233,935 and a working capital deficit of $4.38 million.
- The company has received grants from the Department of Energy and the NIH, with the Department of Energy contributing 64% and the NIH contributing 36% of grant reimbursements for the nine months ended September 30, 2024.
- The company has a license agreement with The Regents of the University of California, requiring milestone payments upon reaching certain sales thresholds.
- The company has two operating leases for office space, with a weighted average remaining lease term of 5.20 years and a weighted average discount rate of 7.88%.
Sentiment
Score: 5
Explanation: The document presents a mixed picture. While the successful IPO is a positive development, the significant net losses, increasing operating costs, and working capital deficit raise concerns. The company's future success hinges on its ability to effectively utilize the IPO proceeds and achieve commercial viability.
Positives
- The successful completion of the IPO provides the company with significant capital to fund its growth initiatives.
- The company secured a $1 million cost share grant from the Department of Defense (DOD) BioMADE initiative.
- The company has a differentiated and unique synthetic biology platform.
- The company has a license agreement with The Regents of the University of California for its technology.
- The company has received grants from the Department of Energy and the NIH.
Negatives
- The company reported a significant net loss of $1.66 million for the quarter and $4.03 million for the nine months ended September 30, 2024.
- The company's operating costs have increased substantially, particularly in general and administrative expenses.
- The company has a working capital deficit of $4.38 million as of September 30, 2024.
- The company is a pre-revenue development stage company.
- The company's financial statements indicate a going concern issue without additional financial support.
Risks
- The company's ability to continue as a going concern is dependent on continued financial support, raising equity or debt financing, and achieving profitable operations.
- The company's technology may not achieve commercial viability or gain market acceptance.
- The company is subject to risks associated with the development of new technologies and regulatory approvals.
- The company is exposed to potential economic recession and its impact on the general business environment and capital markets.
- The company has material weaknesses in internal control over financial reporting.
Future Outlook
The company plans to use the IPO proceeds for expansion of production capabilities, staffing, R&D, and repayment of intercompany loans. The company also intends to pursue additional grants to improve its working capital position. The company believes it will not need to raise capital in the immediate future based on its working capital after the IPO and its program of seeking various grants.
Management Comments
- Management believes that Invizyne's technology is a differentiated and unique synthetic biology platform.
- Management believes the platform will enable scalable production of chemical molecules found in nature.
- Management believes the platform will be more environmentally friendly and sustainable than typical methods used today.
- Management believes the platform could significantly change biomanufacturing through leveraging cell-free, multi-step enzyme-based systems.
- Management considers the grants receivable to be fully collectable due to the historical experience with the Federal Government of the United States of America.
Industry Context
Invizyne operates in the biotechnology sector, specifically focusing on synthetic biology. This sector is characterized by high research and development costs, long development timelines, and significant regulatory hurdles. The company's focus on cell-free biomanufacturing aligns with the industry's trend towards more sustainable and efficient production methods. The company's IPO and subsequent funding will allow it to compete with other companies in the space.
Comparison to Industry Standards
- Invizyne's financial performance is typical of a pre-revenue, development-stage biotechnology company, with significant operating losses and reliance on grants and equity financing.
- Compared to other synthetic biology companies, Invizyne's focus on cell-free systems is a differentiating factor, potentially offering advantages in scalability and sustainability.
- The company's reliance on government grants is common in the industry, but the ability to secure and manage these grants is a key factor for success.
- The company's IPO is a significant milestone, providing the necessary capital to advance its technology and compete with established players in the market.
- The company's operating losses are in line with other companies in the sector at a similar stage of development, but the ability to control costs and achieve profitability will be critical for long-term success.
Stakeholder Impact
- Shareholders will be impacted by the company's financial performance and the use of IPO proceeds.
- Employees will be impacted by the company's growth plans and potential for increased staffing.
- Customers and suppliers will be impacted by the company's ability to commercialize its technologies.
- Creditors will be impacted by the company's ability to repay its debts, including the intercompany loans from MDB Capital Holdings, LLC.
Next Steps
- The company will use the IPO proceeds to expand production capabilities, increase staffing, fund R&D, and repay intercompany loans.
- The company will continue to pursue additional grants to improve its working capital position.
- The company will focus on the development of its SimplePath synthetic biology platform.
- The company will work towards achieving commercialization of its technologies.
Related Party Transactions
- MDB Capital Holdings, LLC has advanced $3,669,933 to the Company as of September 30, 2024.
- The related party loans are undocumented and amount to $3,345,000 as of September 30, 2024, and bears interest at a rate of 5%, compounding annually.
- The company intends to repay the full amount of the intercompany payables and all outstanding interest due in the aggregate amount of $77,066 as of September 30, 2024, promptly after the consummation of the initial public offering of Common Stock by the Company.
- On July 3, 2023, Invizyne executed a simple agreement for future equity (SAFE) with MDB Capital Holdings LLC which provided funding of $785,000.
Key Dates
- 2014: Invizyne Technologies, Inc. (Invizyne CA) was formed in California.
- 2019: Invizyne Technologies, Inc. was formed in Nevada.
- 2019-04-19: Invizyne entered into a license agreement with The Regents of the University of California.
- 2022-01-14: MDB Capital distributed its equity interest in Invizyne to its members.
- 2022-06-01: The Company signed a joint venture with Neuractas Therapeutics.
- 2022-09-22: MDB completed its equity subscription agreement, purchasing 445,099 shares.
- 2023-04-03: The Company executed a lease for new office space.
- 2023-05-01: The board and shareholders approved an increase of 1,558,175 shares under the 2020 Equity Incentive Plan.
- 2023-07-03: Invizyne executed a simple agreement for future equity (SAFE) with MDB Capital Holdings LLC and Paul Opgenorth.
- 2023-10-01: The first grant was awarded by the National Institute of Health, the Department of Energy and Department of Defense.
- 2023-11-01: Stock options to purchase 457,065 shares of Common Stock were granted.
- 2024-02-01: Stock options to purchase 155,818 shares of Common Stock were granted.
- 2024-04-01: Stock options to purchase 125,975 shares of Common Stock were granted.
- 2024-05-19: 2,347 shares of common stock were issued as part of a cashless stock option exercise.
- 2024-06-01: Stock options to purchase 444,076 shares of Common Stock were granted.
- 2024-09-30: End of the quarterly period for the financial report.
- 2024-10-01: The company received a cost share grant from the Department of Defense (DOD) BioMADE initiative.
- 2024-10-03: The board of directors approved a two-for-one (2:1) stock split.
- 2024-11-08: The S-1 Registration Statement was declared effective.
- 2024-11-11: The Company signed a firm commitment underwriting agreement for its IPO.
- 2024-11-12: The company gave instruction to issue an aggregate of 125,001 shares of Common Stock on the conversion of the SAFEs.
- 2024-11-13: The company's IPO closed.
- 2024-12-26: The underwriter's overallotment option for the IPO expires.
- 2026-05-14: The latest of the three grants was set to expire.
- 2028-04-30: The end date of the original lease agreement.
- 2028-06-30: The end date of the new office space lease.
- 2029-11-08: The underwriter warrants expire.
Keywords
biotechnology, synthetic biology, IPO, research and development, grants, financial results, operating costs, net loss, capital raise, biomanufacturing
IZTC
Invizyne Technologies INC
NASDAQ
Sector: TBD
Filings with Classifications
Better than expected
2 July 2025 5:49 PM
Insider Trading Report
- The Chief Executive Officer's purchase of company stock indicates a vote of confidence in the company's prospects and valuation.
Better than expected
17 June 2025 5:22 PM
Insider Transaction Report
- The acquisition of additional shares by a key executive like the Vice President of Research is typically viewed as a positive signal, indicating management's confidence in the company's future performance and valuation.
Better than expected
17 June 2025 5:19 PM
Insider Transaction Report
- The acquisition of shares by a Vice President of Development is generally viewed as a positive signal, indicating management's confidence in the company's future prospects and aligning their interests with shareholders.
Worse than expected
12 May 2025 2:34 PM
Quarterly Report
- The company's net loss increased significantly compared to the same period last year.
- Operating costs rose sharply, driven by increased compensation, professional fees, and other administrative expenses.
- Cash reserves are declining, raising concerns about the company's ability to fund future operations.
Capital raise
12 May 2025 2:34 PM
Quarterly Report
- The company's auditors have raised substantial doubt about its ability to continue as a going concern due to funding shortfalls.
- The company may sell its equity securities, seek institutional and bank funding, and sell or license various of its intellectual property rights if and when it requires capital.
- The company does not have any current arrangements for additional funding, and there is no assurance that it will be able to obtain funding, when needed, on terms that are commercially reasonable.
Capital raise
31 March 2025 4:17 PM
Annual Results
- The company may need additional capital to support its growth over time.
- The company may explore future financing arrangements, including private and public offerings of securities, borrowings, spinouts, joint ventures, licensing, asset sales, and merger transactions.
- The company may also seek government research grants.
Worse than expected
31 March 2025 4:17 PM
Annual Results
- The company incurred a net loss of \$5,861,335 in 2024, which is worse than the net loss of \$2,038,389 in 2023.
- The company has a going concern footnote in its financial statements, indicating substantial doubt about its ability to continue as a going concern.
Capital raise
18 November 2024 4:45 PM
Initial Public Offering Announcement
- The company completed an initial public offering of 1,875,000 shares at $8.00 per share, raising $15 million in gross proceeds.
- A concurrent private placement of 93,750 warrants was completed at $0.125 per warrant, with an exercise price of $8.00 per share, potentially raising an additional $750,000 if fully exercised.
- The underwriter has a 45-day option to purchase an additional 281,250 shares, which could result in further capital raising if exercised.
Capital raise
12 November 2024 4:55 PM
Quarterly Report
- The company completed its IPO on November 13, 2024, selling 1,875,000 shares of Common Stock for gross proceeds of $15,000,000 and net proceeds of approximately $14,321,686.
- The company issued 93,750 warrants to the underwriter and its assignees to purchase up to 93,750 shares of Common Stock.
- The company sold 93,750 warrants to accredited investors in a concurrent private offering for gross proceeds of approximately $11,719, with potential additional proceeds of up to $750,000 if the warrants are fully exercised.
- The company issued 125,001 shares of Common Stock on the conversion of SAFEs on November 12, 2024.
Worse than expected
12 November 2024 4:55 PM
Quarterly Report
- The company's net loss of $4.03 million for the nine months ended September 30, 2024, is significantly worse than the $939,825 loss for the same period in 2023.
- The company's operating costs have increased substantially, leading to a larger net loss.
- The company's working capital deficit of $4.38 million as of September 30, 2024, is a significant deterioration compared to the $1.2 million deficit at the end of 2023.
Capital raise
21 October 2024 11:23 AM
Legal Agreement
- The exercise of the warrant would result in a capital raise for Invizyne Technologies Inc.
Capital raise
4 October 2024 5:28 PM
S-1/A Registration Statement
- Invizyne Technologies Inc. is offering 1,875,000 shares of common stock at $8.00 per share.
- The company has granted the underwriter a 45-day option to purchase up to 281,250 additional shares to cover over-allotments.
Worse than expected
4 October 2024 5:28 PM
S-1/A Registration Statement
- The company has incurred a net loss of $2,368,988 and $419,229 during the six months ended June 30, 2024 and 2023, respectively, and had cash flows from operations of $383,401 and $(363,610) for the six months ended June 30, 2024 and 2023, respectively.
- Management believes that the Companys remaining cash on hand for one year from the date the financials are issued will not be sufficient to meet its liabilities and obligations as and when they fall due through the next year without additional financial support which raises substantial doubt about the Companys ability to continue as a going concern.
Worse than expected
19 September 2024 2:03 PM
S-1/A (Registration Statement Amendment)
- The company has incurred a net loss of $2,368,988 and $419,229 during the six months ended June 30, 2024 and 2023, respectively, and had cash flows from operations of $383,401 and $(363,610) for the six months ended June 30, 2024 and 2023, respectively.
- Management believes that the Companys remaining cash on hand for one year from the date the financials are issued will not be sufficient to meet its liabilities and obligations as and when they fall due through the next year without additional financial support which raises substantial doubt about the Companys ability to continue as a going concern.
Capital raise
19 September 2024 2:03 PM
S-1/A (Registration Statement Amendment)
- Invizyne Technologies Inc. is offering 3,750,000 shares of common stock at $4.00 per share in its IPO.
- Each share includes a non-transferable right to receive up to one additional share after two years if certain conditions are met.
- The estimated net proceeds of $13.3 million will be used for expansion and working capital.
Capital raise
6 September 2024 4:25 PM
S-1/A Amendment
- The company is planning an initial public offering (IPO) of 3,750,000 shares of common stock at a price of $4.00 per share, aiming to raise $15 million.
- The offering includes a non-transferable contractual right for investors to receive up to one additional share of common stock for each share purchased, contingent on certain conditions.
- MDB Capital Holdings, LLC, the majority holder of Invizyne's common stock, is offering 8,027,538 shares in the IPO.
- The company plans to use the net proceeds from the offering to expand production capabilities, increase staff, expand business development, sales and marketing efforts, expand research and development, and add to working capital.
- The underwriter has a 45-day option to purchase up to 562,500 additional shares to cover over-allotments.
Worse than expected
6 September 2024 4:25 PM
S-1/A Amendment
- The company has a limited operating history and has incurred losses to date.
- The company anticipates needing additional funding in the future to continue developing its business plan.
- The independent accountants to the Company have issued their report with a going concern statement.
Capital raise
1 August 2024 6:11 AM
S-1/A Filing
- The company is offering 4,300,000 shares of common stock in its initial public offering.
- The proposed price is $4.00 per share.
- The company estimates net proceeds of approximately $15.3 million, or $17.7 million if the underwriter exercises its over-allotment option in full.
- The company intends to use the net proceeds from this offering (i) to expand the production capabilities of the Company, including capital expenditures, (ii) to increase our staff, (iii) to expand our business development, sales and marketing efforts, (iv) to expand our research and development and technology platform and (v) to add to our working capital.
Capital raise
22 May 2024 4:40 PM
S-1/A Amendment
- Invizyne Technologies Inc. is planning an initial public offering of 4,300,000 shares of its common stock at a price of $4.00 per share.
- The company intends to list its common stock on The Nasdaq Capital Market under the symbol IZTC.
- MDB Capital Holdings, LLC, the majority holder of Invizyne's common stock, is offering 8,027,538 shares of common stock as a selling security holder.
- Net proceeds from the offering are estimated to be approximately $15.3 million, which will be used to expand production capabilities, increase staff, expand business development, sales and marketing efforts, expand research and development, and add to working capital.
Capital raise
17 April 2024 4:07 PM
S-1/A Filing
- The company is offering 4,300,000 shares of common stock at $4.00 per share in its initial public offering.
- The company estimates that the net proceeds from this offering will be approximately $15,473,747, or $19,258,000 if the underwriter exercises its option to purchase additional shares in full.
- MDB Capital Holdings, LLC, the majority holder of the company's Common Stock, is offering 8,027,538 shares of Common Stock.
Worse than expected
17 April 2024 4:07 PM
S-1/A Filing
- The company is pre-revenue and has incurred significant losses.
- The company's auditor has issued a going concern statement.
Capital raise
14 February 2024 10:46 AM
S-1/A
- Invizyne Technologies Inc. is planning an initial public offering (IPO).
- The company intends to offer 4,300,000 shares of its common stock at a price of $4.00 per share, aiming to raise $17,200,000 before expenses.
- The company plans to use the proceeds from the IPO to expand production capabilities, increase staff, expand business development, sales, and marketing, expand the R&D and technology platform, and for working capital and other general purposes.
Worse than expected
14 February 2024 10:46 AM
S-1/A
- The company has a limited operating history and has not generated any revenues to date.
- The independent accountants to the Company have issued their report with a going concern statement.
Capital raise
9 February 2024 4:58 PM
S-1 Filing
- Invizyne Technologies is offering 4,300,000 shares of common stock in its initial public offering.
- The public offering price of the Common Stock was determined through negotiation between the underwriter and us, and the offering price used throughout this prospectus may not be indicative of the price of a share of Common Stock in the market after the initial public offering.
- The underwriter will receive compensation in addition to the discounts and commissions.
- The registration statement, of which this prospectus is a part, also registers for sale warrants to purchase up to 430,000 [10%] shares of Common Stock to be issued to the underwriters, at an exercise price of 125% of the public offering price.
- We have granted a 45-day option to the underwriter to purchase up to 645,000 [15%] additional shares of Common Stock solely to cover over-allotments, if any.
Worse than expected
9 February 2024 4:58 PM
S-1 Filing
- The company has a limited operating history and has not generated any revenues to date.
- The company anticipates needing additional funding in the future to fully develop its business plan, with the funds from this offering expected to fund operations for 12 to 24 months.
- The company's independent accountants have issued their report with a going concern statement.
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