Quarterly report [Sections 13 or 15(d)]

Accounts Payable and Related Party

v3.25.2
Accounts Payable and Related Party
 6 Months Ended
Jun. 30, 2025
Payables and Accruals [Abstract]  
Accounts Payable and Related Party

Note 3 – Accounts Payable and Related Party

 

Accounts payable consist of the following:

 

    As of           As of        
    June 30,
2025		     %     December 31,
2024		     %  
Accounts payable to Cytovance, a related party 1   $ 598,000       44 %   $ 1,183,000       31 %
Accounts payable to University of Minnesota     432,000       31 %     712,000       18 %
Legal services firm     —       — %     1,505,000       39 %
Other accounts payable     344,000       25 %     453,000       12 %
Total accounts payable   $ 1,374,000       100 %   $ 3,853,000       100 %

 

1 Accounts Payable to Cytovance, a related party, since Cytovance owns greater than 5% of the Company’s issued and outstanding common stock. See Note 7 – Commitments and Contingencies, Significant Agreements.

 

The details of the Company’s accounts payable to Cytovance were as follows:

 Schedule of Accounts Payable to Related Party

    June 30, 2025     June 30, 2024  
    Six Months Ending  
    June 30, 2025     June 30, 2024  
    (Unaudited)     (Unaudited)  
Beginning balance   $ 1,183,000     $ 3,515,000  
Invoices, net     626,000       778,000  
Payments in cash     (364,000 )     (2,641,000 )
Payments in common stock, at fair value     —       (810,000 )
Payments in pre-funded warrants, at fair value     (847,000 )     —  
Ending balance   $ 598,000     $ 842,000  

 

In April and June 2024, the Company issued an aggregate of 127,597 shares of common stock with a fair value of approximately $810,000 to Cytovance as partial payment of accounts payable.

 

In March 2025, the Company issued pre-funded warrants to purchase up to 326,251 shares of common stock exercisable at $0.0001 per share with a fair value of approximately $847,000 to Cytovance as partial payment of accounts payable. The pre-funded warrants were valued at the market price on the last day of the month during the respective month that the invoices are due.

 

In March 2025, a legal services firm currently engaged by the Company agreed to reduce the Company’s prior year unpaid fees by approximately $1 million. The Company classified this transaction as other income during the period ended June 30, 2025.

 

 

University of Minnesota

 

See Note 7 – Commitments and Contingencies, Significant Agreements.