UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2023

 

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to _________

 

Commission file number: 000-25132

 

MYMETICS CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware

 

25-1741849

State or Other jurisdiction of Incorporation or Organization 

 

I.R.S. Employer Identification No.

 

c/o Mymetics SA

Route de la Corniche 4

Epalinges Switzerland

 

CH-1066

Address 

 

Zip Code

 

c/o Mymetics SA

Route de la Corniche 4

Epalinges, Switzerland 

 

CH-1066

Address of Principal Executive Offices

 

Zip Code

 

011 41 21 566 57 72

Registrant’s Telephone Number, Including Area Code

                                                                                                     

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, Par Value $0.01 per share

 

MYMX

 

OTC Pink

 

Securities registered pursuant to section 12(g) of the act: None

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐     No ☒

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐     No ☒

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒     No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒     No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 

 

Large-accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes      No ☒

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

The number of shares outstanding of the Registrant’s Common Stock, $0.01 par value, was 303,757,622 as of November 20, 2023

 

 

 

 

PART I. FINANCIAL INFORMATION

 

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

MYMETICS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(In Thousands of Euros, Except Share and Par Value)

 

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

62

 

 

313

 

Accounts receivable

 

 

13

 

 

 

62

 

Prepaid expenses

 

 

24

 

 

 

106

 

Total current assets

 

 

99

 

 

 

481

 

 

 

 

 

 

 

 

 

 

Rent deposit

 

 

-

 

 

 

10

 

Property and equipment, net of accumulated depreciation of €498 at September 30, 2023 and €475 at December 31, 2022

 

 

1

 

 

 

26

 

Right-of-Use Asset

 

 

-

 

 

 

133

 

Goodwill

 

 

-

 

 

 

6,671

 

 

 

100

 

 

7,321

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

559

 

 

213

 

Deferred revenue

 

 

-

 

 

 

7

 

Operating Lease Liability

 

 

-

 

 

 

106

 

Non-convertible notes payable and related accrued interest to related parties

 

 

11,755

 

 

 

10,461

 

Convertible notes payable and related accrued interest to related parties

 

 

63,211

 

 

 

61,243

 

Total current liabilities

 

 

75,525

 

 

 

72,030

 

 

 

 

 

 

 

 

 

 

Long Term Liabilities

 

 

 

 

 

 

 

 

Debt-Principal Payable to the Federal Financing Bank

 

 

145

 

 

 

156

 

Operating lease liability

 

 

-

 

 

 

31

 

Total long-term liabilities

 

 

145

 

 

 

187

 

 

 

 

75,670

 

 

 

72,217

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies (Note 3)

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Shareholders' Deficit

 

 

 

 

 

 

 

 

Common stock, U.S. $0.01 par value; 1,200,000,000 shares authorized; issued and outstanding 303,757,622 at September 30, 2023 and at December 31, 2022

 

 

2,530

 

 

 

2,530

 

Preferred stock, U.S. $0.01 par value; 5,000,000 shares authorized; none-issued or outstanding

 

 

-

 

 

 

-

 

Additional paid-in capital

 

 

34,443

 

 

 

34,443

 

Accumulated deficit

 

 

(113,215)

 

 

(102,555)

Accumulated other comprehensive income

 

 

672

 

 

 

686

 

Total shareholders’ deficit

 

 

(75,570)

 

 

(64,896)

Total liabilities and shareholders’ deficit

 

100

 

 

7,321

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

 

MYMETICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 (UNAUDITED)

(In Thousands of Euros, Except Per Share Data)

 

 

 

For The Three Months Ended

September 30,

 

 

For The Nine Months Ended

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

-

 

 

-

 

 

3

 

 

-

 

Grants

 

 

34

 

 

 

130

 

 

 

411

 

 

 

909

 

 

 

 

34

 

 

 

130

 

 

 

414

 

 

 

909

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

60

 

 

 

209

 

 

 

854

 

 

 

1,191

 

General and administrative

 

 

355

 

 

 

320

 

 

 

1,515

 

 

 

979

 

 

 

 

415

 

 

 

529

 

 

 

2,369

 

 

 

2,170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

(381 )

 

 

(399 )

 

 

(1,955 )

 

 

(1,261 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

710

 

 

 

703

 

 

 

2,118

 

 

 

2,096

 

Goodwill impairment

 

 

-

 

 

 

-

 

 

 

6,671

 

 

 

-

 

Other (income) expense

 

 

23

 

 

 

243

 

 

 

(84 )

 

 

541

 

Loss before income tax provision

 

 

(1,114 )

 

 

(1,345 )

 

 

(10,660 )

 

 

(3,898 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net Loss

 

 

(1,114 )

 

 

(1,345 )

 

 

(10,660 )

 

 

(3,898 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(5 )

 

 

(7 )

 

 

(14 )

 

 

(2 )

Comprehensive loss

 

(1,119 )

 

(1,352 )

 

(10,674 )

 

(3,900 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and dilutive earnings per share

 

(0.00 )

 

(0.00 )

 

(0.04 )

 

(0.01 )

Weighted-average shares outstanding, basic and diluted

 

 

303,757,622

 

 

 

303,757,622

 

 

 

303,757,622

 

 

 

303,757,622

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
2

 

 

MYMETICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT

 (UNAUDITED)

 (In Thousands of Euros)

 

 

 

Three and Nine-month Period Ended September 30, 2022

 

 

 

Common Stock

Number of Par

 

 

 

 

Accumulated

 

 

Accumulated Other Comprehensive

 

 

 

 

 

Shares

 

 

Value

 

 

APIC

 

 

deficit

 

 

Income

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2021

 

 

303,757,622

 

 

E

2,530

 

 

E

34,443

 

 

E

(97,750

)

 

E

691

 

 

E

(60,086

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,211 )

 

 

-

 

 

 

(1,211 )

Translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7

 

 

 

7

 

Balance at March 31, 2022

 

 

303,757,622

 

 

E

2,530

 

 

E

             34,443

 

 

E

(98,961

)

 

E

698

 

 

E

(61,290

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,342 )

 

 

-

 

 

 

(1,342 )

Translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2 )

 

 

(2 )

Balance at June 30, 2022

 

 

303,757,622

 

 

E

2,530

 

 

E

34,443

 

 

E

(100,303

)

 

E

696

 

 

E

(62,634

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,345 )

 

 

-

 

 

 

(1,345 )

Translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(7 )

 

 

(7 )

Balance at September 30, 2022

 

 

303,757,622

 

 

E

2,530

 

 

E

34,443

 

 

E

(101,648

)

 

E

689

 

 

E

(63,986

)

 

 

 

Three and nine-month Period Ended September 30, 2023

 

 

 

Common Stock

Number of Par

 

 

 

 

Accumulated

 

 

Accumulated Other Comprehensive

 

 

 

 

 

Shares

 

 

Value

 

 

APIC

 

 

deficit

 

 

Income

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2022

 

 

303,757,622

 

 

E

2,530

 

 

E

34,443

 

 

E

(102,555

)

 

E

686

 

 

E

(64,896

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,861 )

 

 

-

 

 

 

(1,861 )

Translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance at March 31, 2023

 

 

303,757,622

 

 

E

2,530

 

 

E

34,443

 

 

E

(104,416

)

 

E

698

 

 

E

(66,757

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(7,685 )

 

 

-

 

 

 

(7,685 )

Translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(9 )

 

 

(9 )

Balance at June 30, 2023

 

 

303,757,622

 

 

E

2,530

 

 

E

34,443

 

 

E

(112,101

)

 

E

677

 

 

E

(74,451

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,114 )

 

 

-

 

 

 

(1,114 )

Translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5 )

 

 

(5 )

Balance at September 30, 2023

 

 

303,757,622

 

 

E

2,530

 

 

E

34,443

 

 

E

(113,215

)

 

E

672

 

 

E

(75,570

)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
3

 

 

MYMETICS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(In Thousands of Euros)

 

 

 

For The Nine

Months Ended

 

 

For The Nine

Months Ended

 

 

 

September 30,

2023

 

 

September 30,

2022

 

Cash Flow from Operating Activities

 

 

 

 

 

 

Net loss

 

(10,660 )

 

(3,898 )

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

 

 

Depreciation

 

 

9

 

 

 

11

 

Goodwill impairment

 

 

6,671

 

 

 

-

 

Gain on sales of equipment

 

 

(75 )

 

 

-

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Receivables

 

 

49

 

 

 

(43 )

Accrued interest on convertible notes payable

 

 

1,968

 

 

 

2,436

 

Accrued interest on non-convertible notes payable

 

 

194

 

 

 

161

 

Accounts payable

 

 

346

 

 

 

1

 

Other

 

 

81

 

 

 

(34 )

Net cash used in operating activities

 

 

(1,417 )

 

 

(1,366 )

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

 

 

 

Proceeds from sale of equipment

 

 

94

 

 

 

-

 

Purchase of property and equipment

 

 

-

 

 

 

(2 )

Net cash used in investing activities

 

 

94

 

 

 

(2 )

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

Repayments of federal bank loan

 

 

(14 )

 

 

-

 

Proceeds from issuance of non-convertible notes

 

 

1,100

 

 

 

1,200

 

Net cash provided by financing activities

 

 

1,086

 

 

 

1,200

 

 

 

 

 

 

 

 

 

 

Effect on foreign exchange rate on cash

 

 

(14 )

 

 

(2 )

Net change in cash

 

 

(251 )

 

 

(170 )

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

313

 

 

 

571

 

Cash, end of period

 

62

 

 

401

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

-

 

 

 

-

 

Cash paid for taxes

 

 

-

 

 

 

-

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements. 

 

 
4

 

 

MYMETICS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(UNAUDITED)

 

Note 1. The Company and Summary of Significant Accounting Policies

 

BASIS OF PRESENTATION AND GOING CONCERN

 

The amounts in the notes are shown in thousands of EURO, unless otherwise noted, and rounded to the nearest thousand except for share and per share amounts.

 

The accompanying interim period condensed consolidated financial statements of Mymetics Corporation (the "Company") set forth herein have been prepared by the Company pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such SEC rules and regulations. The interim period condensed consolidated financial statements should be read together with the audited financial statements and the accompanying notes included in the Company's latest annual report on Form 10-K for the fiscal year ended December 31, 2022.

 

The Company was created for the purpose of engaging in vaccine research and development. Its main research efforts in the beginning have been concentrated in the prevention and treatment of the AIDS virus and malaria. The Company has established a network which enables it to work with education centers, research centers, pharmaceutical laboratories and biotechnology companies. Besides the HIV and malaria vaccine candidates, the Company additionally has generated preclinical data for the following vaccines: Herpes Simplex and Respiratory Syncytial Virus (“RSV”), neither of which is currently being developed. The company also has clinical data for an intranasal influenza vaccine for the elderly which has finished a Phase I clinical trial and is currently on hold. As of September 30, 2023, the Company has generated preclinical data for an intra nasal Covid-19 vaccine and early-stage preclinical data in immunotherapy in the field of oncology, but both programs have been stopped The Company has been collaborating with leading academic institutions, such as Baylor College of Medicine in Texas, the Amsterdam Medical Center (AMC) of the University of Amsterdam in the Netherlands and the University Hospital in Bern, Switzerland until April 2023.

 

On January 16, 2023, the Board appointed Marcel B. Rüegg to the Board to fill the vacancy created by Mr. Stern’s resignation. Mr. Rüegg was also appointed to the Audit Committee. The Company entered into an independent director agreement with Mr. Rüegg (the “Director Agreement”) setting forth the terms of his compensation. Pursuant to the Director Agreement, Mr. Rüegg is entitled to a fee of CHF 5,000 per quarter, which is payable quarterly, and CHF 350 per hour for each additional hour worked outside of meetings of the Board or attending more than one meeting of the Board per quarter, which is payable quarterly. The Company also agreed to reimburse Mr. Rüegg for pre-approved reasonable business expenses incurred in good faith in connection with the performance of his duties for the Company. The Company also agreed to indemnify, defend and hold harmless Mr. Rüegg, to the fullest extent permitted by law, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, subject to certain exceptions based on good faith and reasonableness.

 

On February 8, 2023, the Company announced that it has been conducting a process to explore strategic alternatives to enhance shareholder value. The Board authorized management and its external advisors to initiate such a process, and it has been considering a broad range of strategic alternatives including a potential sale of part or all of the Company. In connection therewith, the Company, through its external advisors, had requested bids (the “Bid Process”) for any combination of assets (including but not limited to as a going concern), by February 24, 2023, at 5:00 pm ET (the “Bid Deadline”). To the extent the Company determined there were viable bids by or prior to the Bid Deadline, the Company pursued those possible alternatives. To the extent the there were no viable bids provided by or prior to the Bid Deadline, the Company would consider other alternatives, including the winding up of its operations shortly after the Bid Deadline. On February 24, 2023, the Company announced that it was still discussing with counterparties potential bids for any combination of its assets (including but not limited to as a going concern) and had decided to extend the bid process (the “Bid Process”) for an indeterminate period of time. The extension of the Bid Process did not assure the sale of part or all of the Company or other change or outcome. The Company retained McDermott, Will & Emery LLP as legal counsel in connection with the Bid Process.

 

While the Company pursued these strategic alternatives, due to lack of liquidity, cost reductions for 2023 had been put in place, including the termination of employment agreements for all employees, except Ronald Kempers. On July 26, 2023, the Company decided to winddown its wholly owned subsidiary Bestewil Holding BV (“BH”) and Mymetics BV running the laboratory, which is the wholly owned subsidiary of BH.  The Company has been working with the appropriate accountants to ensure this winddown process follows the applicable tax and accounting regulations. The execution of the winddown is expected to take several months to complete and is subject to various risks and uncertainties that could impact on the Company's ability to successfully complete the winddown or the costs associated with the winddown. To the extent that none of the remaining strategic alternatives are viable, we are exploring a possible winddown of the Company. The Board of Directors of the Company continues to evaluate the next steps, in connection with a possible winddown of the Company’s operations. As of the date of this filing, there is no certainty or conclusion on the future of the Company.

 

 
5

 

 

 

During the fiscal year 2023, the Company has been notified twice by the OTC Markets Group, once on May 12, 2023 and the second time on September 14, 2023, that its bid price had closed below $0.01 for more than 30 consecutive calendar days and no longer met the Standards for Continued Eligibility for OTCQB as per the OTCQB Standards, Section 2.3(2), which states that the Company must “maintain proprietary priced quotations published by a Market Maker in OTC Link with a minimum closing bid price of $.01 per share on at least one of the prior thirty consecutive calendar days.” As per Section 4.1 of the OTCQB Standards, the Company will be granted a cure period of 90 calendar days during which the closing bid price for the Company’s Common Stock must be $.01 or greater for ten consecutive trading days in order to continue trading on the OTCQB marketplace. If this requirement is not met by December 13, 2023, the Company will be removed from the OTCQB marketplace.

 

On October 16, 2023, the Company was informed by the OTC Markets that the Company’s bid price for the stock closed below $.001 on October 13, 2023, and that in the event that the Company’s closing bid price per share falls below $0.001 at any time for five consecutive trading days, the Company will be removed from OTCQB as per Section 4.1(b) of the OTCQB Standards.  On October 23, 2023, the Company was informed that it has been moved from the OTCQB to the OTC Pink on October 24, 2023, as its closing bid price per share has fallen below $0.001 for more than 5 consecutive trading days.

 

The Company filed an 8-K on October 11, 2023, a Form Pre-14C and Schedule 13E-3, on October 16 and October 17, 2023, respectively, followed by a Form Def-14C and Schedule 13E-3/A on October 27, 2023 in which it announced that following (i) the approval on October 5, 2023 of resolutions by the Company’s Board of Directors (the “Board”) proposing an amendment to the Company’s Certificate of Incorporation (the “ Certificate of Incorporation”) to effect a reverse stock split of the Company’s Common Stock (the “Reverse Stock Split”) and (ii) the receipt of written consents dated October 9, 2023 (the “ Written Consents”), approving such amendment by stockholders holding 51.55% of the voting power of all of the Company’s stockholders entitled to vote (the “Consenting Stockholders”) on the matter as of October 9, 2023 (the “ Record Date”). The resolutions adopted by the Board and the written consents of the stockholders give has provided the Company the authority to file a Certificate of Amendment to the Certificate of Incorporation (the “Certificate of Amendment”). The Certificate of Amendment shall be filed with the Secretary of State of the State of Delaware on or after November 20, 2023 (20 calendar days following the date this Information Statement is first mailed to the Company’s stockholders) and will become effective immediately thereafter (the “Effective Date”). As a result of the Reverse Stock Split, as described in the Form Def-14C, Mymetics stockholders owning fewer than 2,000 shares of Mymetics Common Stock will receive cash in the amount of $0.0023 per share of existing Common Stock, and Mymetics stockholders who own 2,000 or more shares of existing Common Stock on the Effective Date will receive (i) one share of new Common Stock for every 2,000 shares of existing Common Stock held on the Effective Date and (ii) cash in lieu of any fractional share of new Common Stock that such holder would otherwise be entitled to receive on the basis of $0.0023 per share of existing Common Stock.

 

Although the Reverse Stock Split has been approved by the requisite number of stockholders, the Company’s Board reserves the right, in its discretion, to abandon the Reverse Stock Split prior to the proposed Effective Date if it determines that abandoning the Reverse Stock Split is in the best interests of the Company.

 

The Reverse Stock Split is being undertaken as part of the Company’s plan to suspend its obligations to file periodic and current reports and other information with the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As described further in the Information Statement Form Def-14C, the Company’s Board has determined that the costs of being a public reporting company outweigh the benefits thereof. The actions described herein, including effecting the Reverse Stock Split, terminating the registration of our Common Stock under Section 12(g) of the Exchange Act and suspending of our reporting obligations under Section 15(d) of the Exchange Act, are collectively referred to herein as the “Transaction.” After giving effect to the Transaction, the Company will no longer be subject to the reporting requirements under the Exchange Act or other requirements applicable to a public company, including requirements under the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and the listing standards of any national securities exchange.

 

Additionally, the Reverse Stock Split is subject to Financial Industry Regulatory Authority (“FINRA”) approval, of which there are no assurances when and if FINRA will provide such approval.

 

As previously announced, the Board continues to evaluate the next steps in the Company’s business, in connection with a possible winddown of the Company’s operations.

 

 
6

 

 

 

These consolidated financial statements have been prepared assuming the Company will continue as a going concern, however the significantly reduced human resource and lack of financial resources has triggered the Company to record a complete Goodwill write-off for the period ending September 30, 2023. The Company has experienced negative cash flows from operations and significant losses since inception resulting in an accumulated deficit of €113,215 at September 30, 2023. Further, the Company’s current liabilities exceed its current assets by €75,426 as of September 30, 2023, and there is no assurance that cash will become available to pay current liabilities in the near term. Management is seeking strategic alternatives but there can be no assurance that management will be successful in any of those efforts. These conditions raise substantial doubt about our ability to continue as a going concern within three months of the issuance of the financial statements. Besides the Goodwill impairment, the financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

LEASES

 

Effective January 1, 2019, the Company adopted ASC 842, which established a right-of-use ("ROU") model requiring lessees to record a right-of-use ("ROU") asset and lease obligations on the balance sheet for all leases with terms longer than 12 months. The Company determines if an arrangement is a lease at inception. Where an arrangement is a lease, the Company determines if it is an operating lease or a finance lease. At lease commencement, the Company records a lease liability and corresponding right-of-use ("ROU") asset. Lease liabilities represent the present value of our future lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the Company’s lease liability is determined using its incremental collateralized borrowing rate at lease inception. ROU assets represent its right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability for leases with an initial term greater than 12 months. Over the lease term (operating leases only), the Company uses the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to consolidated statement of operations in a manner that results in straight line expense recognition. The Company does not apply lease recognition requirements for short-term leases. Instead, the Company recognizes payments related to these arrangements in the consolidated statement of operations as lease costs on a straight-line basis over the lease term.

 

PRINCIPLES OF CONSOLIDATION

 

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated.

 

NEW ACCOUNTING PRONOUNCEMENT

 

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Specifically, ASU 2020-06 simplifies accounting for the issuance of convertible instruments by removing major separation models required under current GAAP. In addition, the ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share (EPS) calculation in certain areas. ASU 2020-06 will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, beginning in fiscal years which begin after December 15, 2020. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluating the impact of the pending adoption of this new standard on its consolidated financial statements.

 

FOREIGN CURRENCY TRANSLATION

 

The Company translates non-Euro assets and liabilities of its subsidiaries at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Unrealized gains or losses from these translations are reported as a separate component of comprehensive income. Transaction gains or losses are included in foreign exchange (gain) loss in the consolidated statements of comprehensive loss. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations. The Company's reporting currency is the Euro because substantially all of the Company's activities are conducted in Europe.

 

CASH

 

The Company considers all highly liquid investments purchased with maturities of six months or less to be cash equivalents. Cash deposits are occasionally in excess of insured amounts.

 

 
7

 

 

 

REVENUE RECOGNITION

 

Effective January 1, 2018, the Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, using the modified retrospective method and there was no impact to financial position and results of operations as a result of the adoption. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Overall, adoption of the new standard did not result in an adjustment to amounts previously reported in our consolidated financial statements and there were no other significant changes impacting the timing or measurement of our revenue or our business processes and controls.

 

The Company has concluded that government grants are not within the scope of Topic 606, as they do not meet the definition of a contract with a “customer”. The Company concluded the definition of a contract with a “customer” was not met as the counterparty to the government grants has not contracted to obtain goods or services and thus the contracts are not considered to have commercial substance. Government grants provide the Company with payments for certain types of expenditures related to research and development activities over a contractually defined period. Revenue from government grants is recognized in the period during which the related costs are incurred, provided that the applicable conditions under the government contracts have been met.

 

NIH

 

On April 29, 2019, the National Institutes of Health (“NIH”) awarded the Company and Texas Biomedical Research Institute (“Texas Biomed”) a five-year grant for the project called “Cold Chain-independent, Needle-free Mucosal Virosomal Vaccine to Prevent HIV-1 Acquisition at Mucosal Levels” (“NIH Grant”). The project started on May 1, 2019, and has been planned for five years. It was initially co-led by Texas Biomed, but due to the move of Dr. Ruth Ruprecht, the Co-Principal Investigator, to the University of Louisiana at Lafayette (“ULL”) at the end of 2019, ULL has become the co-lead with Mymetics for this project. The overall budget related to the project is US$8,850 with US$8,761 approved for the period of (May 2019 to April 2024). This includes the funds approved for the period of May 2023 to April 2024 of US$1’630.

 

The amounts mentioned in the following statements are purely related to the Company and not to the other partners in the project: The overall portion of the grant allocated to the Company is US$4,052 approved for the period of May 2019 to April 2024. This includes the funds approved for the period of May 2023 to April 2024 of US$97. In March 2023, an amendment to the contract was signed to reduce the allocated funds from ULL to the Company from US$1,328 to US$ 815, as more funds were allocated to the animal studies at ULL.

 

The cost granted under the sub-award with Texas Biomed for the period of (May to December 2019) was US$743, of which, US$599 (€542) was incurred as revenue.

 

The sub-award contracts between ULL and the Company for the period of (January 2020 to April 2021) were signed for a total budget of US$1,319, of which, US$1,048 (€909) was incurred as revenue.

 

The sub-award contract between ULL and the Company for the period of (May 2021 to April 2022) was signed for a total budget of US$1,078, of which, US$986 (€899) was incurred as revenue.

 

The sub-award contract, including the amendment, between ULL and the Company for the period of (May 2022 to April 2023) was signed for a total budget of US$815, of which, US$674 (€638) was incurred as revenue as of end of April 2023.

 

The sub-award contract between ULL and the Company for the period of (May 2023 to April 2024) was signed for a total budget of US$97, of which, US$55 (€47) was incurred as revenue.

 

Since the beginning of the project to date, the Company has incurred a total cost of US$3,362 (€3,035) which was recognized as grant revenue from the NIH. For the three and nine months ended on September 30, 2023, the Company has incurred a total cost of US$36 (€30) and US$440 (€406), respectively, which was recognized as grant revenue from the NIH. The First results are expected to be reported in 2023.

 

 
8

 

 

 

The project had the objective to prepare the Company’s HIV-1 vaccine candidate for clinical trials, by first executing a non-human primate (“NHP”) study, where the test subjects will be receiving Mymetics’ virosome based HIV-1 vaccine candidate by several intra-muscular and intra-nasal applications, followed by rectal challenges. As of September 30, 2023, the Company has successfully produced six sets of virosome based vaccines and the NHPs have received two intramuscular vaccinations and three intranasal vaccinations in two different studies. The vaccinations were well tolerated. The final studies are ongoing. The vaccine candidate is created to induce protective mucosal antibodies acting as a frontline defense against sexual HIV transmission. This grant from the NIH has allowed the Company to continue some of the developments that were achieved during the European Horizon 2020 project.

 

In February 2022, Mymetics announced the publication of results in Frontiers in Immunology title: “Cooperation between Systemic and Mucosal Antibodies Induced by Virosomal Vaccines Targeting HIV1 Env: Protection of Indian Rhesus Macaques against Mucosal SHIV challenges”.

 

The Project with ULL under the NIH grant for our HIV vaccine is in its final year that will end on April 30, 2024. Mymetics has provided its commitments to this project by delivering the vaccines, which are tested in non-human primates.

 

RECEIVABLES

 

Receivables are stated at their outstanding principal balances. Management reviews the collectability of receivables on a periodic basis and determines the appropriate amount of any allowance. There was no allowance necessary at September 30, 2023 or December 31, 2022. The Company writes off receivables to the allowance when management determines that a receivable is not collectible. The Company may retain a security interest in the products sold.

 

PROPERTY AND EQUIPMENT

 

Property and equipment is recorded at cost and is depreciated over its estimated useful life on straight-line basis from the date placed in service. Estimated useful lives are usually taken as three years.

 

IMPAIRMENT OF LONG-LIVED ASSETS

 

Long-lived assets, which include property and equipment, are assessed for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. The impairment testing involves comparing the carrying amount to the forecasted undiscounted future cash flows generated by that asset. In the event the carrying value of the assets exceeds the undiscounted future cash flows generated by that asset and the carrying value is not considered recoverable, impairment exists. An impairment loss is measured as the excess of the asset’s carrying value over its fair value, calculated using a discounted future cash flow method. An impairment loss would be recognized in net income (loss) in the period that the impairment occurs.

 

GOODWILL

 

Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of a business acquired. The Company typically performs its annual goodwill impairment test effective as of April 1 of each year, unless events or circumstances indicate impairment may have occurred before that time. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than it’s carrying amount. With the significantly reduced human resources and lack of funds the Company has recorded a complete Goodwill write-off for the nine months period ending September 30, 2023.

 

RESEARCH AND DEVELOPMENT

 

Research and development costs are expensed as incurred.

 

TAXES ON INCOME

 

The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax laws or rates.

 

 
9

 

 

 

The Company reports a liability, if any, for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of interest expense and other expense, respectively.

 

The Company has not recorded any liabilities for uncertain tax positions or any related interest and penalties at December 31, 2022 or 2021. The Company’s United States tax returns are open to audit for the years ended December 31, 2018 to 2021. The returns for the Swiss subsidiary, Mymetics S.A., are open to audit for the year ended December 31, 2021. The returns for the Netherlands subsidiaries, Bestewil B.V. and Mymetics B.V., are open to audit for the year ended December 31, 2021.

 

EARNINGS PER SHARE

 

Basic earnings per share is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. For the periods ended September 30, 2023 and 2022, options and convertible debt were not included in the computation of diluted earnings per share because their effect would be anti-dilutive due to net losses incurred under the treasury stock method.

 

For the three and nine months ended September 30, 2023, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 830,150,223 at September 30, 2023 includes 804,400,223 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees.

 

For the three and nine months ended September 30, 2022, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 793,630,391 at September 30, 2022 includes 767,880,391 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees. 

 

PREFERRED STOCK

 

The Company has authorized 5,000,000 shares of preferred stock that may be issued in several series with varying dividend, conversion and voting rights. No preferred shares are issued or outstanding at September 30, 2023 or December 31, 2022.

 

ESTIMATES

 

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

FAIR VALUE MEASUREMENTS

 

Fair value guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

 

 

Level 1-

Quoted prices in active markets for identical assets or liabilities.

 

Level 2-

Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

 

Level 3-

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 

FAIR VALUES OF FINANCIAL INSTRUMENTS

 

The Company generally has the following financial instruments: cash, receivables, accounts payable, and notes payable. The carrying value of cash, accounts receivable, and accounts payable, approximates their fair value based on the short-term nature of these financial instruments. Management believes the fair value of the note’s payable reflects the actual value reported for these instruments.

 

CONCENTRATIONS

 

The Company derived 99% and 100% of grant revenue for the nine-month periods ended September 30, 2023 and 2022, respectively, from one grantor, respectively. For the period ended December 31, 2022, the Company derived 100% of grant revenue from one partner.

 

 
10

 

 

 

RELATED PARTY TRANSACTIONS

 

Mr. Ernest M. Stern, the Company’s, is a partner in Culhane Meadows PLLC and was outside counsel to the company and a director of the Company until his resignation on December 20, 2022. Culhane Meadows PLLC was the Company’s legal counsel until December 31, 2022. Fees incurred with the law firm was NIL in the nine months ended September 30, 2023, and totaling €10 and €6 for the three months ended September 30, 2022.

 

On January 16, 2023, the Board appointed Marcel B. Rüegg to the Board to fill the vacancy created by Mr. Stern’s resignation. Mr. Rüegg was also appointed to the Audit Committee. The Company entered into an independent director agreement with Mr. Rüegg (the “Director Agreement”) setting forth the terms of his compensation. Pursuant to the Director Agreement, Mr. Rüegg is entitled to a fee of CHF 5,000 per quarter, which is payable quarterly, and CHF 350 per hour for each additional hour worked outside of meetings of the Board or attending more than one meeting of the Board per quarter, which is payable quarterly. The Company also agreed to reimburse Mr. Rüegg for pre-approved reasonable business expenses incurred in good faith in connection with the performance of his duties for the Company. The Company also agreed to indemnify, defend and hold harmless Mr. Rüegg, to the fullest extent permitted by law, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, subject to certain exceptions based on good faith and reasonableness. No fee was paid to Marcel B. Rüegg during the nine months ended September 30, 2023.

 

Two of the Company’s major shareholders have granted secured convertible notes and short-term convertible notes and promissory notes, which have a total carrying amount of €74,483 including interest due as of September 30, 2023. Conversion prices on the Euro-denominated convertible debt have been fixed to a fixed Euro/US dollar exchange rate.

 

Note 2. Debt Financing

 

Certain principal shareholders have granted the Company secured convertible notes (in accordance with the Uniform Commercial Code in the State of Delaware), short term convertible notes and other short-term notes, which have a total carrying value of €74,966 including interest due to date. Interest incurred on these notes since inception has been added to the principal amounts.

 

 
11

 

 

 

The details of the convertible notes and loans are as follows at September 30, 2023: 

 

 

 

 

 

 

Conversion

 

Fixed Rate

 

Lender Price

 

1st-Issue Date

 

 

Principal Amount

 

Duration (Note)

 

Interest Rate

 

Price (stated)

 

EUR/USD Conversion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eardley Holding A.G. (1)

 

06/23/2006

 

 

180

 

(2

)

10% pa

 

$

0.10

 

N/A

 

Anglo Irish Bank S.A.(3)

 

10/21/2007

 

 

500

 

(2

)

10% pa

 

$

0.50

 

1.4090

 

Round Enterprises Ltd.

 

12/10/2007

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.4429

 

Round Enterprises Ltd.

 

01/22/2008

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.4629

 

Round Enterprises Ltd.

 

04/25/2008

 

 

2,000

 

(2

)

10% pa

 

$

0.50

 

1.5889

 

Round Enterprises Ltd.

 

06/30/2008

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.5380

 

Round Enterprises Ltd.

 

11/18/2008

 

 

1,200

 

(2

)

10% pa

 

$

0.50

 

1.2650

 

Round Enterprises Ltd.

 

02/09/2009

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.2940

 

Round Enterprises Ltd.

 

06/15/2009

 

 

5,500

 

(2,4

)

10% pa

 

$

0.80

 

1.4045

 

Eardley Holding A.G.

 

06/15/2009

 

 

100

 

(2,4

)

10% pa

 

$

0.80

 

1.4300

 

Von Meyenburg

 

08/03/2009

 

 

200

 

(2

)

10% pa

 

$

0.80

 

1.4400

 

Round Enterprises Ltd.

 

10/13/2009

 

 

2,000

 

(2

)

5% pa

 

$

0.25

 

1.4854

 

Round Enterprises Ltd.

 

12/18/2009

 

 

2,200

 

(2

)

5% pa

 

$

0.25

 

1.4338

 

Round Enterprises Ltd.

 

08/04/2011

 

 

1,135

 

(5,6

)

10% pa

 

$

0.034

 

N/A

 

Eardley Holding A.G.

 

08/04/2011

 

 

284

 

(5,6

)

10% pa

 

$

0.034

 

N/A

 

Round Enterprises Ltd.

 

11/08/2011

 

 

400

 

(6

)

10% pa

 

$

0.034

 

1.3787

 

Eardley Holding A.G.

 

11/08/2011

 

 

100

 

(6

)

10% pa

 

$

0.034

 

1.3787

 

Round Enterprises Ltd.

 

02/10/2012

 

 

1,000

 

(6

)

10% pa

 

$

0.034

 

1.3260

 

Eardley Holding A.G.

 

02/14/2012

 

 

200

 

(6

)

10% pa

 

$

0.034

 

1.3260

 

Round Enterprises Ltd.

 

04/19/2012

 

 

322

 

(6

)

10% pa

 

$

0.034

 

1.3100

 

Eardley Holding A.G.

 

04/19/2012

 

 

80

 

(6

)

10% pa

 

$

0.034

 

1.3100

 

Round Enterprises Ltd.

 

05/04/2012

 

 

480

 

(6

)

10% pa

 

$

0.034

 

1.3152

 

Eardley Holding A.G.

 

05/04/2012

 

 

120

 

(6

)

10% pa

 

$

0.034

 

1.3152

 

Round Enterprises Ltd.

 

09/03/2012

 

 

200

 

(6

)

10% pa

 

$

0.034

 

1.2576

 

Eardley Holding A.G.

 

09/03/2012

 

 

50

 

(6

)

10% pa

 

$

0.034

 

1.2576

 

Round Enterprises Ltd.

 

11/14/2012

 

 

500

 

(6

)

10% pa

 

$

0.034

 

1.2718

 

Eardley Holding A.G.

 

12/06/2012

 

 

125

 

(6

)

10% pa

 

$

0.034

 

1.3070

 

Round Enterprises Ltd.

 

01/16/2013

 

 

240

 

(6

)

10% pa

 

$

0.034

 

1.3318

 

Eardley Holding A.G.

 

01/16/2013

 

 

60

 

(6

)

10% pa

 

$

0.034

 

1.3318

 

Round Enterprises Ltd.

 

03/25/2013

 

 

400

 

(6

)

10% pa

 

$

0.037

 

1.2915

 

Eardley Holding A.G.

 

04/14/2013

 

 

150

 

(6

)

10% pa

 

$

0.034

 

1.3056

 

Round Enterprises Ltd.

 

04/14/2013

 

 

600

 

(6

)

10% pa

 

$

0.034

 

1.3056

 

Eardley Holding A.G.

 

05/15/2013

 

 

170

 

(6

)

10% pa

 

$

0.037

 

1.2938

 

Round Enterprises Ltd.

 

05/15/2013

 

 

680

 

(6

)

10% pa

 

$

0.037

 

1.2938

 

Eardley Holding A.G.

 

06/24/2013

 

 

60

 

(6

)

10% pa

 

$

0.025

 

1.3340

 

Round Enterprises Ltd.

 

06/24/2013

 

 

240

 

(6

)

10% pa

 

$

0.025

 

1.3340

 

Eardley Holding A.G.

 

08/05/2013

 

 

80

 

(6

)

10% pa

 

$

0.018

 

1.3283

 

Round Enterprises Ltd.

 

08/05/2013

 

 

320

 

(6

)

10% pa

 

$

0.018

 

1.3283

 

Eardley Holding A.G.

 

03/01/2017

 

 

230

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

03/01/2017

 

 

920

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

10/18/2017

 

 

230

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

10/18/2017

 

 

920

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

06/01/2018

 

 

160

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

06/01/2018

 

 

640

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

11/10/2018

 

 

160

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

11/10/2018

 

 

640

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

06/15/2019

 

 

120

 

(9

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

06/15/2019

 

 

480

 

(9

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

12/20/2019

 

 

120

 

(10

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

12/20/2019

 

 

480

 

(10

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

06/15/2020

 

 

220

 

(11

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

06/15/2020

 

 

880

 

(11

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

12/15/2020

 

 

170

 

(12

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

12/15/2020

 

 

680

 

(12

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

08/15/2021

 

 

240

 

(13

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

08/15/2021

 

 

960

 

(13

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

04/30/2022

 

 

120

 

(14

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

04/30/2022

 

 

480

 

(14

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

08/15/2022

 

 

120

 

(15

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

08/15/2022

 

 

480

 

(15

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

12/31/2022

 

 

50

 

(16

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

12/31/2022

 

 

200

 

(16

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

02/28/2023

 

 

100

 

(17

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

02/28/2023

 

 

400

 

(17

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

05/30/2023

 

 

120

 

(18

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

05/30/2023

 

 

480

 

(18

)

2.5% pa

 

 

N/A

 

N/A

 

Total Short Term Principal Amounts

 

 

 

 

38,676

 

 

 

 

 

 

 

 

 

 

   Accrued Interest

 

 

 

 

36,290

 

 

 

 

 

 

 

 

 

 

TOTAL LOANS AND NOTES

 

 

 

 

74,966

 

 

 

 

 

 

 

 

 

 

 

 
12

 

 

 

(1) Private investment company of Dr. Thomas Staehelin, member of the Board of Directors and of the Audit Committee of the Company. Face value is stated in U.S. dollars at $190.

 

(2) This maturity date is automatically prolonged for periods of three months, unless called for repayment.

 

(3) Renamed Hyposwiss Private Bank Genève S.A. and acting on behalf of Round Enterprises Ltd. which is a major shareholder.

 

(4) The loan is secured against 2/3rds of the IP assets of Bestewil Holding BV and against all property of the Company.

 

(5) The face values of the loans are stated in U.S. dollars at $1,200 and $300, respectively.

 

(6) This maturity date is automatically prolonged for periods of three months, unless called for repayment. The conversion price per   share is determined by the lower of (i) reducing by 10% the price per share of the Company’s common stock paid by the investors in connection with an investment in the Company of not less than US$20,000, or (ii) at the fixed conversion price using a fixed exchange rate which are noted in the table above. The convertible note holder has the right to convert at any time prior to the maturity date, at the convertible note holder’s option, prior to the repayment of the outstanding balance under the note by the Company, to convert the unpaid outstanding principal balance and accrued interest, in whole or in part, into common stock at the fixed conversion price as stated in the contract.

 

(7) On March 1, 2017, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €1,840 and €460, respectively, with a 2.5% interest per annum and a maturity date of March 1, 2018. The first 50% of the promissory Notes of €920 and €230, respectively, were provided immediately. The second 50% of the promissory notes of €920 and €230, respectively, were provided on October 18, 2017, with a 2.5% interest per annum and a maturity date of October 18, 2018. Both Round Enterprises Ltd. And Eardley Holding AG have agreed to amend the maturity date of these promissory notes to follow the same terms of the other convertible loans. Therefore, the maturity date of the promissory notes is amended to be the later of (i) June 30, 2018, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. The amendments were accounted for as modifications in the consolidated financial statements.

 

(8) On June 1, 2018, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €1,280 and €320 in two tranches, respectively, with a 2.5% interest per annum. The first tranche of the promissory Notes of €640 and €160, respectively, were provided immediately. The second tranche of the promissory notes of €640 and €160, respectively, were provided on November 10, 2018, with a 2.5% interest per annum. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2019, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(9) On June 15, 2019, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(10) On December 20, 2019, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(11) On June 15, 2020, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €1,100 with a 2.5% interest per annum. The promissory Notes of €880 and €220, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(12) On December 15, 2020, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €850 with a 2.5% interest per annum. The promissory Notes of €680 and €170, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(13) On August 15, 2021, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €1,200 with a 2.5% interest per annum. The promissory Notes of €960 and €240, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(14) On April 30, 2022, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €960 and €240 in two tranches, respectively, with a 2.5% interest per annum. The first tranche of the promissory Notes of €480 and €120, respectively, were provided immediately. The second tranche of the promissory notes of €480 and €120, respectively, will be provided in August, 2022, with a 2.5% interest per annum. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2022, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(15) On August 15, 2022, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2022, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(16) On December 31, 2022, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €250 with a 2.5% interest per annum. The promissory Notes of €200 and €50, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

 
13

 

 

 

(17) On February 28, 2023, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €500 with a 2.5% interest per annum. The promissory Notes of €400 and €100, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(18) On May 30, 2023, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

On April 2, 2020, the Swiss entity, Mymetics SA, received a federal credit line of Chf 168 in relation with the Covid-19 pandemic. This credit line applies for five years and is fully guaranteed by the Swiss Confederation via guaranteed organizations. The interest rate is currently at 0 percent until March 31, 2023. The Swiss Confederation has the right to adjust the interest rate to the market rate. The first revision took place as of April 1, 2022, but no modification was applied. The second revision took place as of April 13, 2023, and decided to introduce an interest rate of 1.5% per year as of April 1, 2023, which triggered an interest amount paid of €0.5 and €1 for the three and nine months ended September 30, 2023, respectively.

 

A first amortization installment of Chf 14 (€14) was paid on October 3, 2022. A second amortization installment of Chf 14 (€14) was paid on April 3, 2023. The next amortization of €14 was incurred on September 30, 2023, but is paid on October 2, 2023. The entire loan should be fully amortized and repaid by September 30, 2027.

 

Certain of the secured convertible notes have conversion features that should be bifurcated from the debt and recorded at fair value; however, as of September 30, 2023, and 2022, the probability of the conversion features being exercised was zero. For this reason, the conversion features is not required to be bifurcated from the debt as the fair value is zero at September 30, 2023 and December 31, 2022.

 

Note 3. Commitments

 

The facility lease agreement for Epalinges, Switzerland, was terminated with a three-month notice on July 1, 2023, with an effective date negotiated to August 31, 2023. The related rent was paid monthly in the amount of €4 and was considered a short-term lease. As the term is less than twelve months, the lease was outside of the scope of ASC 842 and not accounted for on the balance sheet due to the Company’s policy elections.

 

The facility lease agreement for Leiden, The Netherlands, was terminated with a six-month notice on March 14, 2023, with an effective date negotiated to September 30, 2023 instead of March 31, 2024. The related rent was paid monthly in the amount of €9. The Company does not have any other operating lease for its research and development facilities, corporate headquarters, offices and equipment.

 

ASU 201602 and ASU 201811— Accounting Standards Update (“ASU”) 201602, Leases (“ASU 201602”) required the recognition of right-of-use lease assets relate primarily to the Company’s leases of office and laboratory space. Right-of-use lease assets initially equal the lease liability. The lease liability equals the present value of the minimum rental payments due under the lease discounted at the rate implicit in the lease or the Company’s incremental borrowing rate for similar collateral. For operating leases, lease liabilities were discounted at the Company’s weighted average incremental borrowing rate for similar collateral estimated to be 5% and the weighted average lease term is 2 years. For operating leases, rent expense is recognized on a straight-line basis over the term of the lease and is recorded in “General and administrative” in the Company’s consolidated statements of operations. During the three and nine months ended September 30, 2023, the Company recognized -€1 and -€4, respectively, in “General and administrative” in its consolidated statement of operations relating to operating leases as a result of the right-of-use lease assets write off.

 

The Company entered into exclusive negotiations with a third party to sell its assets, although an exclusivity fee had been received and was not refundable, the third party did not enter continue further negotiations for definitive agreements and the Company has no further commitment. The Company received an exclusive fee of €100, which was recorded in “other income”.

 

The net balance of severance payment and related fringe benefit of €336 has been reserved and is scheduled to be paid withing the next 6 months.

 

The facility lease agreement for Leiden, The Netherlands, was terminated with a six-month notice on March 14, 2023, with an effective date negotiated to September 30, 2023 instead of March 31, 2024. The related rent was paid monthly in the amount of €9. The Company does not have any other operating lease for its research and development facilities, corporate headquarters, offices and equipment.

 

Note 4. Subsequent Events

 

On October 16, 2023, the Company was informed by the OTC Markets that the Company’s bid price for the stock closed below $0.001 on October 13, 2023, and that in the event that the Company’s closing bid price per share falls below $0.001 at any time for five consecutive trading days, the Company will be removed from OTCQB as per Section 4.1(b) of the OTCQB Standards. On October 23, 2023, the Company was informed that it has been moved from the OTCQB to the OTC Pink on October 24, 2023, as its closing bid price per share has fallen below $0.001 for more than 5 consecutive trading days.

 

 
14

 

 

 

The Company filed an 8-K on October 11, 2023, a Form Pre-14C and Schedule 13E-3 on October 16 and October 17, 2023, respectively, followed by a Form Def-14C and Schedule 13E-3/A on October 27, 2023 in which it announced (i) the approval on October 5, 2023 of resolutions by the Company’s Board of Directors (the “Board”) proposing an amendment to the Company’s Certificate of Incorporation (the “ Certificate of Incorporation”) to effect a reverse stock split of the Company’s Common Stock (the “Reverse Stock Split”) and (ii) the receipt of written consents dated October 9, 2023 (the “ Written Consents”), approving such amendment by stockholders holding 51.55% of the voting power of all of the Company’s stockholders entitled to vote (the “Consenting Stockholders”) on the matter as of October 9, 2023 (the “ Record Date”). The resolutions adopted by the Board and the written consents of the stockholders give has provided the Company the authority to file a Certificate of Amendment to the Certificate of Incorporation (the “Certificate of Amendment”). The Certificate of Amendment shall be filed with the Secretary of State of the State of Delaware on or after November 20, 2023 (20 calendar days following the date this Information Statement is first mailed to the Company’s stockholders) and will become effective immediately thereafter (the “Effective Date”). As a result of the Reverse Stock Split, as described in the Form Def-14C, Mymetics stockholders owning fewer than 2,000 shares of Mymetics Common Stock will receive cash in the amount of $0.0023 per share of existing Common Stock, and Mymetics stockholders who own 2,000 or more shares of existing Common Stock on the Effective Date will receive (i) one share of new Common Stock for every 2,000 shares of existing Common Stock held on the Effective Date and (ii) cash in lieu of any fractional share of new Common Stock that such holder would otherwise be entitled to receive on the basis of $0.0023 per share of existing Common Stock.

 

Although the Reverse Stock Split has been approved by the requisite number of stockholders, the Company’s Board reserves the right, in its discretion, to abandon the Reverse Stock Split prior to the proposed Effective Date if it determines that abandoning the Reverse Stock Split is in the best interests of the Company.

 

The Reverse Stock Split is being undertaken as part of the Company’s plan to suspend its obligations to file periodic and current reports and other information with the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As described further in the Information Statement Form Def-14C, the Company’s Board has determined that the costs of being a public reporting company outweigh the benefits thereof. The actions described herein, including effecting the Reverse Stock Split, terminating the registration of our Common Stock under Section 12(g) of the Exchange Act and suspending of our reporting obligations under Section 15(d) of the Exchange Act, are collectively referred to herein as the “Transaction.” After giving effect to the Transaction, the Company will no longer be subject to the reporting requirements under the Exchange Act or other requirements applicable to a public company, including requirements under the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and the listing standards of any national securities exchange.

 

Additionally, the Reverse Stock Split is subject to Financial Industry Regulatory Authority (“FINRA”) approval, of which there are no assurances when and if FINRA will provide such approval.

 

On October 15, 2023, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

 
15

 

 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

GENERAL

 

The following discussion and analysis of the results of operations and financial condition of Mymetics Corporation for the periods ended September 30, 2023 and 2022 should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2022 and related notes and the description of the Company's business and properties included elsewhere herein.

 

This report contains forward-looking statements that involve risks and uncertainties. The statements contained in this report are not purely historical but are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These forward-looking statements concern matters that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Words such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue", "probably" or similar words are intended to identify forward looking statements, although not all forward-looking statements contain these words.

 

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We are under no duty to update any of the forward-looking statements after the date hereof to conform such statements to actual results or to changes in our expectations.

 

Readers are urged to carefully review and consider the various disclosures made by us which attempt to advise interested parties of the factors which affect our business, including without limitation disclosures made under the captions "Management Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors," "Consolidated Financial Statements" and "Notes to Consolidated Financial Statements" included in our annual report on Form 10-K for the year ended December 31, 2022 and, to the extent included therein, our quarterly reports on Form 10-Q filed during fiscal year 2023.

 

THREE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

 

For the three months ended September 30, 2023 and 2022, revenue was €34 and €130, respectively, which is related to the revenue recognized for the work performed under the NIH grant / HIV project.

 

Costs and expenses decreased to €415 for the three months ended September 30, 2023 from €529 (-21.6%) for the three months ended September 30, 2022, of which:

 

 

o

Research and development expenses decreased to €60 in the current period from €209 (-71.3%) in the comparative period of 2022, mainly due to significant reduced subcontracting services in relation with the NIH grant / HIV project and reduced scientific staff compared to the expenses incurred during the three-month period ending September 2022.

 

 

 

 

o

General and administrative expenses increased to €355 in the three months ended September 30, 2022 from €320 (10.9%) in the comparative period of 2022, mainly due to legal services incurred during three months ended September 30, 2023, in relation with the restructuring and possible wind down of the Company.

 

Interest expense increased to €710 for the three months ended September 30, 2023 from €703 for the three months ended September 30, 2022 related to an increase in existing loans from related parties.

 

Other (income) expense generated an expense of €23 for the three months ended September 30, 2023, compared to an expense of €243 (-90.5%) for the three months ended September 30, 2022, of which:

 

 

o

Foreign exchange revaluation generated a net loss of €102 and €230 during the three months ended September 30, 2023 and 2022, respectively, which was due to the revaluation of existing US$ based loans from related parties and US$ cash position reflecting the a stronger US$ with respect to the Euro during this three months period in 2023.

 

 

 

 

o

An exclusivity fee of €104 was received in the three months ended September 30, 2023 during negotiations of strategic alternatives.

 

 
16

 

 

The Company reported a net loss of (€1,114), or (€0.00) per share, for the three months ended September 30, 2023, compared to a net loss of (€1,345), or (€0.00) per share, for the three months ended September 30, 2022.

 

NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

 

For the nine months ended September 30, 2023 and 2022, revenue was €414 and €909, respectively, which is related to the revenue recognized for the work performed under the NIH grant / HIV project.

 

Costs and expenses increased to €2,369 for the nine months ended September 30, 2023 from €2,170 (9.2%) for the nine months ended September 30, 2022, of which:

 

 

o

Research and development expenses decreased to €854 in the current period from €1,191 (-28.3%) in the comparative period of 2022, mainly due to the purchase of “influenza inactivated virus” during the first quarter in 2022 in relation with the NIH grant / HIV project, and €347 severance payments incurred during the nine months ended September 30, 2023, of which, €178 has been paid in June 2023.

 

 

 

 

o

General and administrative expenses increased to €1,515 in the nine months ended September 30, 2023 from €979 (54.7%) in the comparative period of 2022, mainly due the accrual of €329 for severance, and €165 additional legal service incurred during the nine months ended September 30, 2023.

 

The Goodwill impairment of €6,671 was recorded for the nine months ended September 30, 2023 compared to €0 for the nine months ended September 30, 2022.

 

Other (income) expense generated an income of €84 for the nine months ended September 30, 2023 compared to an expense of €541 (-115.5%) for the nine months ended September 30, 2022, of which:

 

 

o

Foreign exchange revaluation generated a net loss of €48 and €496 during the nine months ended September 30, 2023 and 2022, respectively, which is due to the revaluation of existing US$ based loans from related parties and US$ cash position, reflecting the stronger US$ in relation to the Euro.

 

 

 

 

o

An exclusivity fee of €104 was received in the nine months ended September 30, 2023 during negotiations of strategic alternatives.

 

 

 

 

o

An income of €84 on sales of laboratory equipment in Leiden and the office furniture in Epalinges was received during the nine months ended September 2023. The laboratory assets sold for a total of €99 had a residual book value of €17, which generated a net income of €82. The office furniture sold in Epalinges were fully amortized and generated a net income of €2.

 

The Company reported a net loss of (€10,660), or (€0.01) per share, for the nine months ended September 30, 2023, compared to a net loss of (€3,898), or (€0.01) per share, for the nine months ended September 30, 2022.

 

LIQUIDITY AND CAPITAL RESOURCES

 

We had cash of €62 at September 30, 2023 compared to €313 at December 31, 2022.

 

During 2022, our revenue has mainly been generated through the NIH grant / HIV project. For 2023, new significant revenues are not expected.

 

As of September 30, 2023, we had an accumulated deficit of approximately €113 million, and had net loss of €10,660 in the nine-month period ending on that date. We expect to continue to incur net losses in the future.

 

Net cash used from operating activities increased to €1,417 for the nine-month period ended September 30, 2023, compared to €1,366 for the same period in 2022, mainly due to the receivable related to the NIH grant / HIV project incurred during the nine-month period ended September 30, 2022, and the severance due as of September 30, 2023 of €646.

 

Net cash provided in investing activities was €94 during the nine -months ended September 30, 2023, due to sales of office equipment in Leiden, and €2 used during the same period in 2022, related to new IT equipment in Epalinges.

 

 
17

 

 

Net cash provided from financing activities €1,086 for the nine -months ended September 30, 2023 and €1,200 for the nine -months ended September 30, 2022, mainly related to new promissory notes from our main investors.

 

Salaries and related payroll costs represent gross salaries for two executives, our CSO of Mymetics BV and five employees. Under Executive Employment Agreements with our CEO and two CSOs, we paid our executive officers a combined amount of €65 per month.

 

Our Swiss subsidiary, Mymetics S.A., has, besides the CEO, two additional employees on its payroll: Director of Finance and Head of Manufacturing and Quality, the CSO is terminated as of May 31, 2023. All employees at Mymetics BV are terminated as of June 30, 2023 (the full time Chief Scientific Officer and one full-time technician on June 30, 2023; one full-time technician on May 31, 2023 and one part-time assistant on April 30, 2023).

 

On February 8, 2023, and subsequently on February 23, 2023, we announced that we initiated a process to explore a range of strategic alternatives to maximize shareholder value and engaged professional advisors, including an investment bank, to support this process. Strategic alternatives include the sale of all or part of the Company, through a merger or reverse merger. As we have been pursuing these strategic alternatives, we put into place cost reductions for 2023, including the termination of employment agreements with 7 of our 8 employees. On July 26, we announced the winddown of the Company’s subsidiary in the Netherlands and are exploring a possible winddown of the Company to the extent that none of the strategic alternatives are viable.

 

Additional funding requirements during the next 3 to 6 months will be needed. In the past, we have financed our research and development activities primarily through debt and equity financings from various parties, complemented by the grant agreements for our HIV vaccine candidate.

 

As announced to the extent that none of the remaining strategic alternatives are viable, we are exploring a possible winddown of the Company, and the Board of Directors of the Company continues to evaluate the next steps, in connection with a possible winddown of the Company’s operations. As of the date of this filing, there is no certainty or conclusion on the future of the Company.  However, there can be no assurance that the Company will be able to raise additional capital on satisfactory terms, or at all, to finance its remaining operations or sell the Company. In the event that we are not able to obtain such additional capital, we will be required to further restrict or even cease our operations. As discussed in Note 1 to the consolidated financial statements, the Company has experienced recurring losses from operations and negative cash flows from operating activities. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

 

Monthly fixed and recurring expenses for "Property leases" of €13 represent the monthly lease and maintenance payments to unaffiliated third parties for our offices, of which €4 is related to our executive office located at Route de la Corniche 4, 1066 Epalinges in Switzerland (100 square meters), which have been terminated at the end of August 2023 and €9 related to Bestewil Holding B.V. and its subsidiary Mymetics B.V operating from a similar biotechnology campus near Leiden in the Netherlands, where they occupy 204 square meters, which has been terminated at the of September 2023.

 

Included in the professional fees are legal fees paid to outside corporate counsel and audit and review fees paid to our independent accountants, and fees paid for investor relations.

 

Cumulative interest expense of €36,290 has been accrued on all of the Company’s outstanding notes and advances (see detailed table in Note 2 to the financial statements).

 

RECENT FINANCING ACTIVITIES

 

During the nine-month period ending September 30, 2023, our principal source of funds has been promissory notes received from our two main investors and the revenue generated through the NIH grant / HIV project.

 

Management anticipates that our existing capital resources will not be sufficient to fund our cash requirements through the next two months. We have cash presently on hand in conjunction with the collection of receivables, based upon our current levels of expenditure and anticipated needs during this period. For the fourth quarter of 2023, we will need additional funding. We do not know whether additional financing will be available.

 

OFF-BALANCE SHEET ARRANGEMENTS

 

None

 

 
18

 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

INTEREST RATE RISK

 

Fluctuations in interest rates may affect the fair value of financial instruments. An increase in market interest rates may increase interest payments and a decrease in market interest rates may decrease interest payments of such financial instruments. We have no debt obligations, which are sensitive to interest rate fluctuations as all our notes payable have fixed interest rates, as specified on the individual loan notes.

 

ITEM 4. CONTROLS AND PROCEDURES

 

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

 

Under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer the Company conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures, as defined in Rule 13a−15(e) and 15d15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), as of the end of the period covered by this report. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer (currently the same person to allow timely decisions regarding required disclosure) concluded as of September 30, 2023, that the Company’s disclosure controls and procedures were not effective because of the material weakness described below.

 

Management’s Annual Report on Internal Control over Financial Reporting

 

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Our internal control over financial reporting includes policies and procedures designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles.

 

Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of September 30, 2023, based on the criteria established in Internal Control -- Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

 

Changes in Internal Control over Financial Reporting

 

There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

INHERENT LIMITATIONS ON EFFECTIVENESS OF CONTROLS

 

Our management, including the CEO/CFO, does not expect that the Disclosure Controls or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within our Company have been detected.

 

These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions of deterioration in the degree of compliance with policies or procedures.

 

 
19

 

 

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

Neither we, nor our wholly owned subsidiaries, Mymetics S.A. and Bestewil Holding B.V., nor its subsidiary Mymetics B.V., are presently involved in any litigation incident to our business.

 

ITEM 1A. RISK FACTORS

 

Not Applicable

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

None.

 

ITEM 5. OTHER INFORMATION

 

None.

 
20

 

 

ITEM 6. EXHIBITS

 

EXHIBIT NUMBER

 

DESCRIPTION

 

 

 

31.1

 

Rule 13a-14(a)/15d-14(a) Certification of Chief

 

 

 

31.2

 

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

 

 

 

32

 

Section 1350 Certification of Chief Executive Officer and Chief Financial Officer

 

 

 

101.INS

 

Instance Document

 

 

 

101.SCH

 

XBRL Taxonomy Extension Schema Document

 

 

 

101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document

 

 

 

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document

 

 

 

101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document

 

 
21

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

MYMETICS CORPORATION

 

 

 

 

 

Dated:  November 20, 2023

By: 

/s/ Ronald Kempers

 

 

 

Chief Executive Officer / Chief Financial Officer

 

 

 

(Principal Executive, Financial and Accounting Officer)

 

 

 
22

 

 .

nullnullnullv3.23.3
Cover - shares
9 Months Ended
Sep. 30, 2023
Nov. 20, 2023
Cover [Abstract]    
Entity Registrant Name MYMETICS CORPORATION  
Entity Central Index Key 0000927761  
Document Type 10-Q  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Small Business true  
Entity Shell Company false  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Document Period End Date Sep. 30, 2023  
Entity Filer Category Non-accelerated Filer  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2023  
Entity Common Stock Shares Outstanding   303,757,622
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 000-25132  
Entity Incorporation State Country Code DE  
Entity Tax Identification Number 25-1741849  
Entity Address Address Line 1 c/o Mymetics SA  
Entity Address Address Line 2 Route de la Corniche 4  
Entity Address City Or Town Epalinges  
Entity Address Country CH  
Entity Address Postal Zip Code 1066  
City Area Code 011  
Local Phone Number 41 21 566 57 72  
Security 12b Title Common Stock, Par Value $0.01 per share  
Trading Symbol MYMX  
Entity Interactive Data Current Yes  
v3.23.3
CONDENSED CONSOLIDATED BALANCE SHEETS - EUR (€)
€ in Thousands
Sep. 30, 2023
Dec. 31, 2022
ASSETS    
Cash € 62 € 313
Accounts receivable 13 62
Prepaid expenses 24 106
Total current assets 99 481
Rent deposit 0 10
Property and equipment, net of accumulated depreciation of ?498 at September 30, 2023 and ?475 at December 31, 2022 1 26
Right-of-Use Asset 0 133
Goodwill 0 6,671
Total assets 100 7,321
Current Liabilities    
Accounts payable 559 213
Deferred revenue 0 7
Operating Lease Liability 0 106
Non-convertible notes payable and related accrued interest to related parties 11,755 10,461
Convertible notes payable and related accrued interest to related parties 63,211 61,243
Total current liabilities 75,525 72,030
Long Term Liabilities    
Debt-Principal Payable to the Federal Financing Bank 145 156
Operating lease liability 0 31
Total long-term liabilities 145 187
Total liabilities 75,670 72,217
Commitments and Contingencies (Note 3) 0 0
Shareholders' Deficit    
Common stock, U.S. $0.01 par value; 1,200,000,000 shares authorized; issued and outstanding 303,757,622 at September 30, 2023 and at December 31, 2022 2,530 2,530
Preferred stock, U.S. $0.01 par value; 5,000,000 shares authorized; none-issued or outstanding 0 0
Additional paid-in capital 34,443 34,443
Accumulated deficit (113,215) (102,555)
Accumulated other comprehensive income 672 686
Total shareholders' deficit (75,570) (64,896)
Total liabilities and shareholders' deficit € 100 € 7,321
v3.23.3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - EUR (€)
€ in Thousands
Sep. 30, 2023
Dec. 31, 2022
ASSETS    
Property and equipment, accumulated depreciation € 498 € 475
Shareholders' Deficit    
Common stock, par value € 0.01 € 0.01
Common stock, shares authorized 1,200,000,000 1,200,000,000
Common stock, shares issued 303,757,622 303,757,622
Common stock, shares outstanding 303,757,622 303,757,622
Preferred stock, par value € 0.01 € 0.01
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - EUR (€)
€ in Thousands, shares in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenue        
Research and Development € 0 € 0 € 3 € 0
Grants 34 130 411 909
Revenues 34 130 414 909
Expenses        
Research and development 60 209 854 1,191
General and administrative 355 320 1,515 979
Total expenses 415 529 2,369 2,170
Operating Loss (381) (399) (1,955) (1,261)
Interest expense 710 703 2,118 2,096
Goodwill impairment 0 0 6,671 0
Other (income) expense 23 243 84 541
Loss before income tax provision (1,114) (1,345) (10,660) (3,898)
Income tax provision 0 0 0 0
Net Loss (1,114) (1,345) (10,660) (3,898)
Other comprehensive income        
Foreign currency translation adjustment (5) (7) (14) (2)
Comprehensive loss € (1,119) € (1,352) € (10,674) € (3,900)
Basic and dilutive earnings per share € (0.00) € (0.00) € (0.04) € (0.01)
Weighted-average shares outstanding, basic and diluted 303,757,622 303,757,622 303,757,622 303,757,622
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (UNAUDITED) - EUR (€)
€ in Thousands
Total
Common Stock
APIC
Accumulated Deficit
Accumulated Other Comprehensive Income
Balance, shares at Dec. 31, 2021   303,757,622      
Balance, amount at Dec. 31, 2021 € (60,086) € 2,530 € 34,443 € (97,750) € 691
Net loss (1,211) 0 0 (1,211) 0
Translation adjustment 7 € 0 0 0 7
Balance, shares at Mar. 31, 2022   303,757,622      
Balance, amount at Mar. 31, 2022 (61,290) € 2,530 34,443 (98,961) 698
Balance, shares at Dec. 31, 2021   303,757,622      
Balance, amount at Dec. 31, 2021 (60,086) € 2,530 34,443 (97,750) 691
Net loss (3,898)        
Balance, shares at Sep. 30, 2022   303,757,622      
Balance, amount at Sep. 30, 2022 (63,986) € 2,530 34,443 (101,648) 689
Balance, shares at Mar. 31, 2022   303,757,622      
Balance, amount at Mar. 31, 2022 (61,290) € 2,530 34,443 (98,961) 698
Net loss (1,342) 0 0 (1,342) 0
Translation adjustment (2) € 0 0 0 (2)
Balance, shares at Jun. 30, 2022   303,757,622      
Balance, amount at Jun. 30, 2022 (62,634) € 2,530 34,443 (100,303) 696
Net loss (1,345) 0 0 (1,345) 0
Translation adjustment (7) € 0 0 0 (7)
Balance, shares at Sep. 30, 2022   303,757,622      
Balance, amount at Sep. 30, 2022 (63,986) € 2,530 34,443 (101,648) 689
Balance, shares at Dec. 31, 2022   303,757,622      
Balance, amount at Dec. 31, 2022 (64,896) € 2,530 34,443 (102,555) 686
Net loss (1,861) 0 0 (1,861) 0
Translation adjustment 0 € 0 0 0 0
Balance, shares at Mar. 31, 2023   303,757,622      
Balance, amount at Mar. 31, 2023 (66,757) € 2,530 34,443 (104,416) 698
Balance, shares at Dec. 31, 2022   303,757,622      
Balance, amount at Dec. 31, 2022 (64,896) € 2,530 34,443 (102,555) 686
Net loss (10,660)        
Balance, shares at Sep. 30, 2023   303,757,622      
Balance, amount at Sep. 30, 2023 (75,570) € 2,530 34,443 (113,215) 672
Balance, shares at Mar. 31, 2023   303,757,622      
Balance, amount at Mar. 31, 2023 (66,757) € 2,530 34,443 (104,416) 698
Net loss (7,685) 0 0 (7,685) 0
Translation adjustment (9) € 0 0 0 (9)
Balance, shares at Jun. 30, 2023   303,757,622      
Balance, amount at Jun. 30, 2023 (74,451) € 2,530 34,443 (112,101) 677
Net loss (1,114) 0 0 (1,114) 0
Translation adjustment (5) € 0 0 0 (5)
Balance, shares at Sep. 30, 2023   303,757,622      
Balance, amount at Sep. 30, 2023 € (75,570) € 2,530 € 34,443 € (113,215) € 672
v3.23.3
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - EUR (€)
€ in Thousands
9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash Flow from Operating Activities    
Net loss € (10,660) € (3,898)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation 9 11
Goodwill impairment 6,671 0
Gain on sales of equipment (75) 0
Changes in operating assets and liabilities    
Receivables 49 (43)
Accrued interest on convertible notes payable 1,968 2,436
Accrued interest on non-convertible notes payable 194 161
Accounts payable 346 1
Other 81 (34)
Net cash used in operating activities (1,417) (1,366)
Cash Flows from Investing Activities    
Proceeds from sale of equipment 94 0
Purchase of property and equipment 0 (2)
Net cash used in investing activities 94 (2)
Cash Flows from Financing Activities    
Repayments of federal bank loan (14) 0
Proceeds from issuance of non-convertible notes 1,100 1,200
Net cash provided by financing activities 1,086 1,200
Effect on foreign exchange rate on cash (14) (2)
Net change in cash (251) (170)
Cash, beginning of period 313 571
Cash, end of period 62 401
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 0 0
Cash paid for taxes € 0 € 0
v3.23.3
The Company and Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2023
The Company and Summary of Significant Accounting Policies  
The Company and Summary of Significant Accounting Policies

Note 1. The Company and Summary of Significant Accounting Policies

 

BASIS OF PRESENTATION AND GOING CONCERN

 

The amounts in the notes are shown in thousands of EURO, unless otherwise noted, and rounded to the nearest thousand except for share and per share amounts.

 

The accompanying interim period condensed consolidated financial statements of Mymetics Corporation (the "Company") set forth herein have been prepared by the Company pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such SEC rules and regulations. The interim period condensed consolidated financial statements should be read together with the audited financial statements and the accompanying notes included in the Company's latest annual report on Form 10-K for the fiscal year ended December 31, 2022.

 

The Company was created for the purpose of engaging in vaccine research and development. Its main research efforts in the beginning have been concentrated in the prevention and treatment of the AIDS virus and malaria. The Company has established a network which enables it to work with education centers, research centers, pharmaceutical laboratories and biotechnology companies. Besides the HIV and malaria vaccine candidates, the Company additionally has generated preclinical data for the following vaccines: Herpes Simplex and Respiratory Syncytial Virus (“RSV”), neither of which is currently being developed. The company also has clinical data for an intranasal influenza vaccine for the elderly which has finished a Phase I clinical trial and is currently on hold. As of September 30, 2023, the Company has generated preclinical data for an intra nasal Covid-19 vaccine and early-stage preclinical data in immunotherapy in the field of oncology, but both programs have been stopped The Company has been collaborating with leading academic institutions, such as Baylor College of Medicine in Texas, the Amsterdam Medical Center (AMC) of the University of Amsterdam in the Netherlands and the University Hospital in Bern, Switzerland until April 2023.

 

On January 16, 2023, the Board appointed Marcel B. Rüegg to the Board to fill the vacancy created by Mr. Stern’s resignation. Mr. Rüegg was also appointed to the Audit Committee. The Company entered into an independent director agreement with Mr. Rüegg (the “Director Agreement”) setting forth the terms of his compensation. Pursuant to the Director Agreement, Mr. Rüegg is entitled to a fee of CHF 5,000 per quarter, which is payable quarterly, and CHF 350 per hour for each additional hour worked outside of meetings of the Board or attending more than one meeting of the Board per quarter, which is payable quarterly. The Company also agreed to reimburse Mr. Rüegg for pre-approved reasonable business expenses incurred in good faith in connection with the performance of his duties for the Company. The Company also agreed to indemnify, defend and hold harmless Mr. Rüegg, to the fullest extent permitted by law, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, subject to certain exceptions based on good faith and reasonableness.

 

On February 8, 2023, the Company announced that it has been conducting a process to explore strategic alternatives to enhance shareholder value. The Board authorized management and its external advisors to initiate such a process, and it has been considering a broad range of strategic alternatives including a potential sale of part or all of the Company. In connection therewith, the Company, through its external advisors, had requested bids (the “Bid Process”) for any combination of assets (including but not limited to as a going concern), by February 24, 2023, at 5:00 pm ET (the “Bid Deadline”). To the extent the Company determined there were viable bids by or prior to the Bid Deadline, the Company pursued those possible alternatives. To the extent the there were no viable bids provided by or prior to the Bid Deadline, the Company would consider other alternatives, including the winding up of its operations shortly after the Bid Deadline. On February 24, 2023, the Company announced that it was still discussing with counterparties potential bids for any combination of its assets (including but not limited to as a going concern) and had decided to extend the bid process (the “Bid Process”) for an indeterminate period of time. The extension of the Bid Process did not assure the sale of part or all of the Company or other change or outcome. The Company retained McDermott, Will & Emery LLP as legal counsel in connection with the Bid Process.

 

While the Company pursued these strategic alternatives, due to lack of liquidity, cost reductions for 2023 had been put in place, including the termination of employment agreements for all employees, except Ronald Kempers. On July 26, 2023, the Company decided to winddown its wholly owned subsidiary Bestewil Holding BV (“BH”) and Mymetics BV running the laboratory, which is the wholly owned subsidiary of BH.  The Company has been working with the appropriate accountants to ensure this winddown process follows the applicable tax and accounting regulations. The execution of the winddown is expected to take several months to complete and is subject to various risks and uncertainties that could impact on the Company's ability to successfully complete the winddown or the costs associated with the winddown. To the extent that none of the remaining strategic alternatives are viable, we are exploring a possible winddown of the Company. The Board of Directors of the Company continues to evaluate the next steps, in connection with a possible winddown of the Company’s operations. As of the date of this filing, there is no certainty or conclusion on the future of the Company.

 

During the fiscal year 2023, the Company has been notified twice by the OTC Markets Group, once on May 12, 2023 and the second time on September 14, 2023, that its bid price had closed below $0.01 for more than 30 consecutive calendar days and no longer met the Standards for Continued Eligibility for OTCQB as per the OTCQB Standards, Section 2.3(2), which states that the Company must “maintain proprietary priced quotations published by a Market Maker in OTC Link with a minimum closing bid price of $.01 per share on at least one of the prior thirty consecutive calendar days.” As per Section 4.1 of the OTCQB Standards, the Company will be granted a cure period of 90 calendar days during which the closing bid price for the Company’s Common Stock must be $.01 or greater for ten consecutive trading days in order to continue trading on the OTCQB marketplace. If this requirement is not met by December 13, 2023, the Company will be removed from the OTCQB marketplace.

 

On October 16, 2023, the Company was informed by the OTC Markets that the Company’s bid price for the stock closed below $.001 on October 13, 2023, and that in the event that the Company’s closing bid price per share falls below $0.001 at any time for five consecutive trading days, the Company will be removed from OTCQB as per Section 4.1(b) of the OTCQB Standards.  On October 23, 2023, the Company was informed that it has been moved from the OTCQB to the OTC Pink on October 24, 2023, as its closing bid price per share has fallen below $0.001 for more than 5 consecutive trading days.

 

The Company filed an 8-K on October 11, 2023, a Form Pre-14C and Schedule 13E-3, on October 16 and October 17, 2023, respectively, followed by a Form Def-14C and Schedule 13E-3/A on October 27, 2023 in which it announced that following (i) the approval on October 5, 2023 of resolutions by the Company’s Board of Directors (the “Board”) proposing an amendment to the Company’s Certificate of Incorporation (the “ Certificate of Incorporation”) to effect a reverse stock split of the Company’s Common Stock (the “Reverse Stock Split”) and (ii) the receipt of written consents dated October 9, 2023 (the “ Written Consents”), approving such amendment by stockholders holding 51.55% of the voting power of all of the Company’s stockholders entitled to vote (the “Consenting Stockholders”) on the matter as of October 9, 2023 (the “ Record Date”). The resolutions adopted by the Board and the written consents of the stockholders give has provided the Company the authority to file a Certificate of Amendment to the Certificate of Incorporation (the “Certificate of Amendment”). The Certificate of Amendment shall be filed with the Secretary of State of the State of Delaware on or after November 20, 2023 (20 calendar days following the date this Information Statement is first mailed to the Company’s stockholders) and will become effective immediately thereafter (the “Effective Date”). As a result of the Reverse Stock Split, as described in the Form Def-14C, Mymetics stockholders owning fewer than 2,000 shares of Mymetics Common Stock will receive cash in the amount of $0.0023 per share of existing Common Stock, and Mymetics stockholders who own 2,000 or more shares of existing Common Stock on the Effective Date will receive (i) one share of new Common Stock for every 2,000 shares of existing Common Stock held on the Effective Date and (ii) cash in lieu of any fractional share of new Common Stock that such holder would otherwise be entitled to receive on the basis of $0.0023 per share of existing Common Stock.

 

Although the Reverse Stock Split has been approved by the requisite number of stockholders, the Company’s Board reserves the right, in its discretion, to abandon the Reverse Stock Split prior to the proposed Effective Date if it determines that abandoning the Reverse Stock Split is in the best interests of the Company.

 

The Reverse Stock Split is being undertaken as part of the Company’s plan to suspend its obligations to file periodic and current reports and other information with the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As described further in the Information Statement Form Def-14C, the Company’s Board has determined that the costs of being a public reporting company outweigh the benefits thereof. The actions described herein, including effecting the Reverse Stock Split, terminating the registration of our Common Stock under Section 12(g) of the Exchange Act and suspending of our reporting obligations under Section 15(d) of the Exchange Act, are collectively referred to herein as the “Transaction.” After giving effect to the Transaction, the Company will no longer be subject to the reporting requirements under the Exchange Act or other requirements applicable to a public company, including requirements under the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and the listing standards of any national securities exchange.

 

Additionally, the Reverse Stock Split is subject to Financial Industry Regulatory Authority (“FINRA”) approval, of which there are no assurances when and if FINRA will provide such approval.

 

As previously announced, the Board continues to evaluate the next steps in the Company’s business, in connection with a possible winddown of the Company’s operations.

 

These consolidated financial statements have been prepared assuming the Company will continue as a going concern, however the significantly reduced human resource and lack of financial resources has triggered the Company to record a complete Goodwill write-off for the period ending September 30, 2023. The Company has experienced negative cash flows from operations and significant losses since inception resulting in an accumulated deficit of €113,215 at September 30, 2023. Further, the Company’s current liabilities exceed its current assets by €75,426 as of September 30, 2023, and there is no assurance that cash will become available to pay current liabilities in the near term. Management is seeking strategic alternatives but there can be no assurance that management will be successful in any of those efforts. These conditions raise substantial doubt about our ability to continue as a going concern within three months of the issuance of the financial statements. Besides the Goodwill impairment, the financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

LEASES

 

Effective January 1, 2019, the Company adopted ASC 842, which established a right-of-use ("ROU") model requiring lessees to record a right-of-use ("ROU") asset and lease obligations on the balance sheet for all leases with terms longer than 12 months. The Company determines if an arrangement is a lease at inception. Where an arrangement is a lease, the Company determines if it is an operating lease or a finance lease. At lease commencement, the Company records a lease liability and corresponding right-of-use ("ROU") asset. Lease liabilities represent the present value of our future lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the Company’s lease liability is determined using its incremental collateralized borrowing rate at lease inception. ROU assets represent its right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability for leases with an initial term greater than 12 months. Over the lease term (operating leases only), the Company uses the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to consolidated statement of operations in a manner that results in straight line expense recognition. The Company does not apply lease recognition requirements for short-term leases. Instead, the Company recognizes payments related to these arrangements in the consolidated statement of operations as lease costs on a straight-line basis over the lease term.

 

PRINCIPLES OF CONSOLIDATION

 

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated.

 

NEW ACCOUNTING PRONOUNCEMENT

 

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Specifically, ASU 2020-06 simplifies accounting for the issuance of convertible instruments by removing major separation models required under current GAAP. In addition, the ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share (EPS) calculation in certain areas. ASU 2020-06 will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, beginning in fiscal years which begin after December 15, 2020. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluating the impact of the pending adoption of this new standard on its consolidated financial statements.

 

FOREIGN CURRENCY TRANSLATION

 

The Company translates non-Euro assets and liabilities of its subsidiaries at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Unrealized gains or losses from these translations are reported as a separate component of comprehensive income. Transaction gains or losses are included in foreign exchange (gain) loss in the consolidated statements of comprehensive loss. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations. The Company's reporting currency is the Euro because substantially all of the Company's activities are conducted in Europe.

 

CASH

 

The Company considers all highly liquid investments purchased with maturities of six months or less to be cash equivalents. Cash deposits are occasionally in excess of insured amounts.

 

REVENUE RECOGNITION

 

Effective January 1, 2018, the Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, using the modified retrospective method and there was no impact to financial position and results of operations as a result of the adoption. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Overall, adoption of the new standard did not result in an adjustment to amounts previously reported in our consolidated financial statements and there were no other significant changes impacting the timing or measurement of our revenue or our business processes and controls.

 

The Company has concluded that government grants are not within the scope of Topic 606, as they do not meet the definition of a contract with a “customer”. The Company concluded the definition of a contract with a “customer” was not met as the counterparty to the government grants has not contracted to obtain goods or services and thus the contracts are not considered to have commercial substance. Government grants provide the Company with payments for certain types of expenditures related to research and development activities over a contractually defined period. Revenue from government grants is recognized in the period during which the related costs are incurred, provided that the applicable conditions under the government contracts have been met.

 

NIH

 

On April 29, 2019, the National Institutes of Health (“NIH”) awarded the Company and Texas Biomedical Research Institute (“Texas Biomed”) a five-year grant for the project called “Cold Chain-independent, Needle-free Mucosal Virosomal Vaccine to Prevent HIV-1 Acquisition at Mucosal Levels” (“NIH Grant”). The project started on May 1, 2019, and has been planned for five years. It was initially co-led by Texas Biomed, but due to the move of Dr. Ruth Ruprecht, the Co-Principal Investigator, to the University of Louisiana at Lafayette (“ULL”) at the end of 2019, ULL has become the co-lead with Mymetics for this project. The overall budget related to the project is US$8,850 with US$8,761 approved for the period of (May 2019 to April 2024). This includes the funds approved for the period of May 2023 to April 2024 of US$1’630.

 

The amounts mentioned in the following statements are purely related to the Company and not to the other partners in the project: The overall portion of the grant allocated to the Company is US$4,052 approved for the period of May 2019 to April 2024. This includes the funds approved for the period of May 2023 to April 2024 of US$97. In March 2023, an amendment to the contract was signed to reduce the allocated funds from ULL to the Company from US$1,328 to US$ 815, as more funds were allocated to the animal studies at ULL.

 

The cost granted under the sub-award with Texas Biomed for the period of (May to December 2019) was US$743, of which, US$599 (€542) was incurred as revenue.

 

The sub-award contracts between ULL and the Company for the period of (January 2020 to April 2021) were signed for a total budget of US$1,319, of which, US$1,048 (€909) was incurred as revenue.

 

The sub-award contract between ULL and the Company for the period of (May 2021 to April 2022) was signed for a total budget of US$1,078, of which, US$986 (€899) was incurred as revenue.

 

The sub-award contract, including the amendment, between ULL and the Company for the period of (May 2022 to April 2023) was signed for a total budget of US$815, of which, US$674 (€638) was incurred as revenue as of end of April 2023.

 

The sub-award contract between ULL and the Company for the period of (May 2023 to April 2024) was signed for a total budget of US$97, of which, US$55 (€47) was incurred as revenue.

 

Since the beginning of the project to date, the Company has incurred a total cost of US$3,362 (€3,035) which was recognized as grant revenue from the NIH. For the three and nine months ended on September 30, 2023, the Company has incurred a total cost of US$36 (€30) and US$440 (€406), respectively, which was recognized as grant revenue from the NIH. The First results are expected to be reported in 2023.

 

The project had the objective to prepare the Company’s HIV-1 vaccine candidate for clinical trials, by first executing a non-human primate (“NHP”) study, where the test subjects will be receiving Mymetics’ virosome based HIV-1 vaccine candidate by several intra-muscular and intra-nasal applications, followed by rectal challenges. As of September 30, 2023, the Company has successfully produced six sets of virosome based vaccines and the NHPs have received two intramuscular vaccinations and three intranasal vaccinations in two different studies. The vaccinations were well tolerated. The final studies are ongoing. The vaccine candidate is created to induce protective mucosal antibodies acting as a frontline defense against sexual HIV transmission. This grant from the NIH has allowed the Company to continue some of the developments that were achieved during the European Horizon 2020 project.

 

In February 2022, Mymetics announced the publication of results in Frontiers in Immunology title: “Cooperation between Systemic and Mucosal Antibodies Induced by Virosomal Vaccines Targeting HIV1 Env: Protection of Indian Rhesus Macaques against Mucosal SHIV challenges”.

 

The Project with ULL under the NIH grant for our HIV vaccine is in its final year that will end on April 30, 2024. Mymetics has provided its commitments to this project by delivering the vaccines, which are tested in non-human primates.

 

RECEIVABLES

 

Receivables are stated at their outstanding principal balances. Management reviews the collectability of receivables on a periodic basis and determines the appropriate amount of any allowance. There was no allowance necessary at September 30, 2023 or December 31, 2022. The Company writes off receivables to the allowance when management determines that a receivable is not collectible. The Company may retain a security interest in the products sold.

 

PROPERTY AND EQUIPMENT

 

Property and equipment is recorded at cost and is depreciated over its estimated useful life on straight-line basis from the date placed in service. Estimated useful lives are usually taken as three years.

 

IMPAIRMENT OF LONG-LIVED ASSETS

 

Long-lived assets, which include property and equipment, are assessed for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. The impairment testing involves comparing the carrying amount to the forecasted undiscounted future cash flows generated by that asset. In the event the carrying value of the assets exceeds the undiscounted future cash flows generated by that asset and the carrying value is not considered recoverable, impairment exists. An impairment loss is measured as the excess of the asset’s carrying value over its fair value, calculated using a discounted future cash flow method. An impairment loss would be recognized in net income (loss) in the period that the impairment occurs.

 

GOODWILL

 

Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of a business acquired. The Company typically performs its annual goodwill impairment test effective as of April 1 of each year, unless events or circumstances indicate impairment may have occurred before that time. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than it’s carrying amount. With the significantly reduced human resources and lack of funds the Company has recorded a complete Goodwill write-off for the nine months period ending September 30, 2023.

 

RESEARCH AND DEVELOPMENT

 

Research and development costs are expensed as incurred.

 

TAXES ON INCOME

 

The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax laws or rates.

 

The Company reports a liability, if any, for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of interest expense and other expense, respectively.

 

The Company has not recorded any liabilities for uncertain tax positions or any related interest and penalties at December 31, 2022 or 2021. The Company’s United States tax returns are open to audit for the years ended December 31, 2018 to 2021. The returns for the Swiss subsidiary, Mymetics S.A., are open to audit for the year ended December 31, 2021. The returns for the Netherlands subsidiaries, Bestewil B.V. and Mymetics B.V., are open to audit for the year ended December 31, 2021.

 

EARNINGS PER SHARE

 

Basic earnings per share is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. For the periods ended September 30, 2023 and 2022, options and convertible debt were not included in the computation of diluted earnings per share because their effect would be anti-dilutive due to net losses incurred under the treasury stock method.

 

For the three and nine months ended September 30, 2023, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 830,150,223 at September 30, 2023 includes 804,400,223 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees.

 

For the three and nine months ended September 30, 2022, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 793,630,391 at September 30, 2022 includes 767,880,391 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees. 

 

PREFERRED STOCK

 

The Company has authorized 5,000,000 shares of preferred stock that may be issued in several series with varying dividend, conversion and voting rights. No preferred shares are issued or outstanding at September 30, 2023 or December 31, 2022.

 

ESTIMATES

 

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

FAIR VALUE MEASUREMENTS

 

Fair value guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

 

 

Level 1-

Quoted prices in active markets for identical assets or liabilities.

 

Level 2-

Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

 

Level 3-

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 

FAIR VALUES OF FINANCIAL INSTRUMENTS

 

The Company generally has the following financial instruments: cash, receivables, accounts payable, and notes payable. The carrying value of cash, accounts receivable, and accounts payable, approximates their fair value based on the short-term nature of these financial instruments. Management believes the fair value of the note’s payable reflects the actual value reported for these instruments.

 

CONCENTRATIONS

 

The Company derived 99% and 100% of grant revenue for the nine-month periods ended September 30, 2023 and 2022, respectively, from one grantor, respectively. For the period ended December 31, 2022, the Company derived 100% of grant revenue from one partner.

 

RELATED PARTY TRANSACTIONS

 

Mr. Ernest M. Stern, the Company’s, is a partner in Culhane Meadows PLLC and was outside counsel to the company and a director of the Company until his resignation on December 20, 2022. Culhane Meadows PLLC was the Company’s legal counsel until December 31, 2022. Fees incurred with the law firm was NIL in the nine months ended September 30, 2023, and totaling €10 and €6 for the three months ended September 30, 2022.

 

On January 16, 2023, the Board appointed Marcel B. Rüegg to the Board to fill the vacancy created by Mr. Stern’s resignation. Mr. Rüegg was also appointed to the Audit Committee. The Company entered into an independent director agreement with Mr. Rüegg (the “Director Agreement”) setting forth the terms of his compensation. Pursuant to the Director Agreement, Mr. Rüegg is entitled to a fee of CHF 5,000 per quarter, which is payable quarterly, and CHF 350 per hour for each additional hour worked outside of meetings of the Board or attending more than one meeting of the Board per quarter, which is payable quarterly. The Company also agreed to reimburse Mr. Rüegg for pre-approved reasonable business expenses incurred in good faith in connection with the performance of his duties for the Company. The Company also agreed to indemnify, defend and hold harmless Mr. Rüegg, to the fullest extent permitted by law, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, subject to certain exceptions based on good faith and reasonableness. No fee was paid to Marcel B. Rüegg during the nine months ended September 30, 2023.

 

Two of the Company’s major shareholders have granted secured convertible notes and short-term convertible notes and promissory notes, which have a total carrying amount of €74,483 including interest due as of September 30, 2023. Conversion prices on the Euro-denominated convertible debt have been fixed to a fixed Euro/US dollar exchange rate.

v3.23.3
Debt Financing
9 Months Ended
Sep. 30, 2023
Debt Financing  
Debt Financing

Note 2. Debt Financing

 

Certain principal shareholders have granted the Company secured convertible notes (in accordance with the Uniform Commercial Code in the State of Delaware), short term convertible notes and other short-term notes, which have a total carrying value of €74,966 including interest due to date. Interest incurred on these notes since inception has been added to the principal amounts.

 

The details of the convertible notes and loans are as follows at September 30, 2023: 

 

 

 

 

 

 

Conversion

 

Fixed Rate

 

Lender Price

 

1st-Issue Date

 

 

Principal Amount

 

Duration (Note)

 

Interest Rate

 

Price (stated)

 

EUR/USD Conversion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eardley Holding A.G. (1)

 

06/23/2006

 

 

180

 

(2

)

10% pa

 

$

0.10

 

N/A

 

Anglo Irish Bank S.A.(3)

 

10/21/2007

 

 

500

 

(2

)

10% pa

 

$

0.50

 

1.4090

 

Round Enterprises Ltd.

 

12/10/2007

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.4429

 

Round Enterprises Ltd.

 

01/22/2008

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.4629

 

Round Enterprises Ltd.

 

04/25/2008

 

 

2,000

 

(2

)

10% pa

 

$

0.50

 

1.5889

 

Round Enterprises Ltd.

 

06/30/2008

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.5380

 

Round Enterprises Ltd.

 

11/18/2008

 

 

1,200

 

(2

)

10% pa

 

$

0.50

 

1.2650

 

Round Enterprises Ltd.

 

02/09/2009

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.2940

 

Round Enterprises Ltd.

 

06/15/2009

 

 

5,500

 

(2,4

)

10% pa

 

$

0.80

 

1.4045

 

Eardley Holding A.G.

 

06/15/2009

 

 

100

 

(2,4

)

10% pa

 

$

0.80

 

1.4300

 

Von Meyenburg

 

08/03/2009

 

 

200

 

(2

)

10% pa

 

$

0.80

 

1.4400

 

Round Enterprises Ltd.

 

10/13/2009

 

 

2,000

 

(2

)

5% pa

 

$

0.25

 

1.4854

 

Round Enterprises Ltd.

 

12/18/2009

 

 

2,200

 

(2

)

5% pa

 

$

0.25

 

1.4338

 

Round Enterprises Ltd.

 

08/04/2011

 

 

1,135

 

(5,6

)

10% pa

 

$

0.034

 

N/A

 

Eardley Holding A.G.

 

08/04/2011

 

 

284

 

(5,6

)

10% pa

 

$

0.034

 

N/A

 

Round Enterprises Ltd.

 

11/08/2011

 

 

400

 

(6

)

10% pa

 

$

0.034

 

1.3787

 

Eardley Holding A.G.

 

11/08/2011

 

 

100

 

(6

)

10% pa

 

$

0.034

 

1.3787

 

Round Enterprises Ltd.

 

02/10/2012

 

 

1,000

 

(6

)

10% pa

 

$

0.034

 

1.3260

 

Eardley Holding A.G.

 

02/14/2012

 

 

200

 

(6

)

10% pa

 

$

0.034

 

1.3260

 

Round Enterprises Ltd.

 

04/19/2012

 

 

322

 

(6

)

10% pa

 

$

0.034

 

1.3100

 

Eardley Holding A.G.

 

04/19/2012

 

 

80

 

(6

)

10% pa

 

$

0.034

 

1.3100

 

Round Enterprises Ltd.

 

05/04/2012

 

 

480

 

(6

)

10% pa

 

$

0.034

 

1.3152

 

Eardley Holding A.G.

 

05/04/2012

 

 

120

 

(6

)

10% pa

 

$

0.034

 

1.3152

 

Round Enterprises Ltd.

 

09/03/2012

 

 

200

 

(6

)

10% pa

 

$

0.034

 

1.2576

 

Eardley Holding A.G.

 

09/03/2012

 

 

50

 

(6

)

10% pa

 

$

0.034

 

1.2576

 

Round Enterprises Ltd.

 

11/14/2012

 

 

500

 

(6

)

10% pa

 

$

0.034

 

1.2718

 

Eardley Holding A.G.

 

12/06/2012

 

 

125

 

(6

)

10% pa

 

$

0.034

 

1.3070

 

Round Enterprises Ltd.

 

01/16/2013

 

 

240

 

(6

)

10% pa

 

$

0.034

 

1.3318

 

Eardley Holding A.G.

 

01/16/2013

 

 

60

 

(6

)

10% pa

 

$

0.034

 

1.3318

 

Round Enterprises Ltd.

 

03/25/2013

 

 

400

 

(6

)

10% pa

 

$

0.037

 

1.2915

 

Eardley Holding A.G.

 

04/14/2013

 

 

150

 

(6

)

10% pa

 

$

0.034

 

1.3056

 

Round Enterprises Ltd.

 

04/14/2013

 

 

600

 

(6

)

10% pa

 

$

0.034

 

1.3056

 

Eardley Holding A.G.

 

05/15/2013

 

 

170

 

(6

)

10% pa

 

$

0.037

 

1.2938

 

Round Enterprises Ltd.

 

05/15/2013

 

 

680

 

(6

)

10% pa

 

$

0.037

 

1.2938

 

Eardley Holding A.G.

 

06/24/2013

 

 

60

 

(6

)

10% pa

 

$

0.025

 

1.3340

 

Round Enterprises Ltd.

 

06/24/2013

 

 

240

 

(6

)

10% pa

 

$

0.025

 

1.3340

 

Eardley Holding A.G.

 

08/05/2013

 

 

80

 

(6

)

10% pa

 

$

0.018

 

1.3283

 

Round Enterprises Ltd.

 

08/05/2013

 

 

320

 

(6

)

10% pa

 

$

0.018

 

1.3283

 

Eardley Holding A.G.

 

03/01/2017

 

 

230

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

03/01/2017

 

 

920

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

10/18/2017

 

 

230

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

10/18/2017

 

 

920

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

06/01/2018

 

 

160

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

06/01/2018

 

 

640

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

11/10/2018

 

 

160

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

11/10/2018

 

 

640

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

06/15/2019

 

 

120

 

(9

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

06/15/2019

 

 

480

 

(9

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

12/20/2019

 

 

120

 

(10

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

12/20/2019

 

 

480

 

(10

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

06/15/2020

 

 

220

 

(11

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

06/15/2020

 

 

880

 

(11

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

12/15/2020

 

 

170

 

(12

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

12/15/2020

 

 

680

 

(12

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

08/15/2021

 

 

240

 

(13

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

08/15/2021

 

 

960

 

(13

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

04/30/2022

 

 

120

 

(14

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

04/30/2022

 

 

480

 

(14

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

08/15/2022

 

 

120

 

(15

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

08/15/2022

 

 

480

 

(15

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

12/31/2022

 

 

50

 

(16

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

12/31/2022

 

 

200

 

(16

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

02/28/2023

 

 

100

 

(17

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

02/28/2023

 

 

400

 

(17

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

05/30/2023

 

 

120

 

(18

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

05/30/2023

 

 

480

 

(18

)

2.5% pa

 

 

N/A

 

N/A

 

Total Short Term Principal Amounts

 

 

 

 

38,676

 

 

 

 

 

 

 

 

 

 

   Accrued Interest

 

 

 

 

36,290

 

 

 

 

 

 

 

 

 

 

TOTAL LOANS AND NOTES

 

 

 

 

74,966

 

 

 

 

 

 

 

 

 

 

 

(1) Private investment company of Dr. Thomas Staehelin, member of the Board of Directors and of the Audit Committee of the Company. Face value is stated in U.S. dollars at $190.

 

(2) This maturity date is automatically prolonged for periods of three months, unless called for repayment.

 

(3) Renamed Hyposwiss Private Bank Genève S.A. and acting on behalf of Round Enterprises Ltd. which is a major shareholder.

 

(4) The loan is secured against 2/3rds of the IP assets of Bestewil Holding BV and against all property of the Company.

 

(5) The face values of the loans are stated in U.S. dollars at $1,200 and $300, respectively.

 

(6) This maturity date is automatically prolonged for periods of three months, unless called for repayment. The conversion price per   share is determined by the lower of (i) reducing by 10% the price per share of the Company’s common stock paid by the investors in connection with an investment in the Company of not less than US$20,000, or (ii) at the fixed conversion price using a fixed exchange rate which are noted in the table above. The convertible note holder has the right to convert at any time prior to the maturity date, at the convertible note holder’s option, prior to the repayment of the outstanding balance under the note by the Company, to convert the unpaid outstanding principal balance and accrued interest, in whole or in part, into common stock at the fixed conversion price as stated in the contract.

 

(7) On March 1, 2017, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €1,840 and €460, respectively, with a 2.5% interest per annum and a maturity date of March 1, 2018. The first 50% of the promissory Notes of €920 and €230, respectively, were provided immediately. The second 50% of the promissory notes of €920 and €230, respectively, were provided on October 18, 2017, with a 2.5% interest per annum and a maturity date of October 18, 2018. Both Round Enterprises Ltd. And Eardley Holding AG have agreed to amend the maturity date of these promissory notes to follow the same terms of the other convertible loans. Therefore, the maturity date of the promissory notes is amended to be the later of (i) June 30, 2018, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. The amendments were accounted for as modifications in the consolidated financial statements.

 

(8) On June 1, 2018, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €1,280 and €320 in two tranches, respectively, with a 2.5% interest per annum. The first tranche of the promissory Notes of €640 and €160, respectively, were provided immediately. The second tranche of the promissory notes of €640 and €160, respectively, were provided on November 10, 2018, with a 2.5% interest per annum. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2019, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(9) On June 15, 2019, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(10) On December 20, 2019, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(11) On June 15, 2020, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €1,100 with a 2.5% interest per annum. The promissory Notes of €880 and €220, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(12) On December 15, 2020, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €850 with a 2.5% interest per annum. The promissory Notes of €680 and €170, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(13) On August 15, 2021, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €1,200 with a 2.5% interest per annum. The promissory Notes of €960 and €240, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(14) On April 30, 2022, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €960 and €240 in two tranches, respectively, with a 2.5% interest per annum. The first tranche of the promissory Notes of €480 and €120, respectively, were provided immediately. The second tranche of the promissory notes of €480 and €120, respectively, will be provided in August, 2022, with a 2.5% interest per annum. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2022, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(15) On August 15, 2022, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2022, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(16) On December 31, 2022, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €250 with a 2.5% interest per annum. The promissory Notes of €200 and €50, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(17) On February 28, 2023, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €500 with a 2.5% interest per annum. The promissory Notes of €400 and €100, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

(18) On May 30, 2023, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

 

On April 2, 2020, the Swiss entity, Mymetics SA, received a federal credit line of Chf 168 in relation with the Covid-19 pandemic. This credit line applies for five years and is fully guaranteed by the Swiss Confederation via guaranteed organizations. The interest rate is currently at 0 percent until March 31, 2023. The Swiss Confederation has the right to adjust the interest rate to the market rate. The first revision took place as of April 1, 2022, but no modification was applied. The second revision took place as of April 13, 2023, and decided to introduce an interest rate of 1.5% per year as of April 1, 2023, which triggered an interest amount paid of €0.5 and €1 for the three and nine months ended September 30, 2023, respectively.

 

A first amortization installment of Chf 14 (€14) was paid on October 3, 2022. A second amortization installment of Chf 14 (€14) was paid on April 3, 2023. The next amortization of €14 was incurred on September 30, 2023, but is paid on October 2, 2023. The entire loan should be fully amortized and repaid by September 30, 2027.

 

Certain of the secured convertible notes have conversion features that should be bifurcated from the debt and recorded at fair value; however, as of September 30, 2023, and 2022, the probability of the conversion features being exercised was zero. For this reason, the conversion features is not required to be bifurcated from the debt as the fair value is zero at September 30, 2023 and December 31, 2022.

v3.23.3
Commitments
9 Months Ended
Sep. 30, 2023
Commitments  
Commitments

Note 3. Commitments

 

The facility lease agreement for Epalinges, Switzerland, was terminated with a three-month notice on July 1, 2023, with an effective date negotiated to August 31, 2023. The related rent was paid monthly in the amount of €4 and was considered a short-term lease. As the term is less than twelve months, the lease was outside of the scope of ASC 842 and not accounted for on the balance sheet due to the Company’s policy elections.

 

The facility lease agreement for Leiden, The Netherlands, was terminated with a six-month notice on March 14, 2023, with an effective date negotiated to September 30, 2023 instead of March 31, 2024. The related rent was paid monthly in the amount of €9. The Company does not have any other operating lease for its research and development facilities, corporate headquarters, offices and equipment.

 

ASU 201602 and ASU 201811— Accounting Standards Update (“ASU”) 201602, Leases (“ASU 201602”) required the recognition of right-of-use lease assets relate primarily to the Company’s leases of office and laboratory space. Right-of-use lease assets initially equal the lease liability. The lease liability equals the present value of the minimum rental payments due under the lease discounted at the rate implicit in the lease or the Company’s incremental borrowing rate for similar collateral. For operating leases, lease liabilities were discounted at the Company’s weighted average incremental borrowing rate for similar collateral estimated to be 5% and the weighted average lease term is 2 years. For operating leases, rent expense is recognized on a straight-line basis over the term of the lease and is recorded in “General and administrative” in the Company’s consolidated statements of operations. During the three and nine months ended September 30, 2023, the Company recognized -€1 and -€4, respectively, in “General and administrative” in its consolidated statement of operations relating to operating leases as a result of the right-of-use lease assets write off.

 

The Company entered into exclusive negotiations with a third party to sell its assets, although an exclusivity fee had been received and was not refundable, the third party did not enter continue further negotiations for definitive agreements and the Company has no further commitment. The Company received an exclusive fee of €100, which was recorded in “other income”.

 

The net balance of severance payment and related fringe benefit of €336 has been reserved and is scheduled to be paid withing the next 6 months.

 

The facility lease agreement for Leiden, The Netherlands, was terminated with a six-month notice on March 14, 2023, with an effective date negotiated to September 30, 2023 instead of March 31, 2024. The related rent was paid monthly in the amount of €9. The Company does not have any other operating lease for its research and development facilities, corporate headquarters, offices and equipment.

v3.23.3
Subsequent Events
9 Months Ended
Sep. 30, 2023
Subsequent Events  
Subsequent Events

Note 4. Subsequent Events

 

On October 16, 2023, the Company was informed by the OTC Markets that the Company’s bid price for the stock closed below $0.001 on October 13, 2023, and that in the event that the Company’s closing bid price per share falls below $0.001 at any time for five consecutive trading days, the Company will be removed from OTCQB as per Section 4.1(b) of the OTCQB Standards. On October 23, 2023, the Company was informed that it has been moved from the OTCQB to the OTC Pink on October 24, 2023, as its closing bid price per share has fallen below $0.001 for more than 5 consecutive trading days.

 

The Company filed an 8-K on October 11, 2023, a Form Pre-14C and Schedule 13E-3 on October 16 and October 17, 2023, respectively, followed by a Form Def-14C and Schedule 13E-3/A on October 27, 2023 in which it announced (i) the approval on October 5, 2023 of resolutions by the Company’s Board of Directors (the “Board”) proposing an amendment to the Company’s Certificate of Incorporation (the “ Certificate of Incorporation”) to effect a reverse stock split of the Company’s Common Stock (the “Reverse Stock Split”) and (ii) the receipt of written consents dated October 9, 2023 (the “ Written Consents”), approving such amendment by stockholders holding 51.55% of the voting power of all of the Company’s stockholders entitled to vote (the “Consenting Stockholders”) on the matter as of October 9, 2023 (the “ Record Date”). The resolutions adopted by the Board and the written consents of the stockholders give has provided the Company the authority to file a Certificate of Amendment to the Certificate of Incorporation (the “Certificate of Amendment”). The Certificate of Amendment shall be filed with the Secretary of State of the State of Delaware on or after November 20, 2023 (20 calendar days following the date this Information Statement is first mailed to the Company’s stockholders) and will become effective immediately thereafter (the “Effective Date”). As a result of the Reverse Stock Split, as described in the Form Def-14C, Mymetics stockholders owning fewer than 2,000 shares of Mymetics Common Stock will receive cash in the amount of $0.0023 per share of existing Common Stock, and Mymetics stockholders who own 2,000 or more shares of existing Common Stock on the Effective Date will receive (i) one share of new Common Stock for every 2,000 shares of existing Common Stock held on the Effective Date and (ii) cash in lieu of any fractional share of new Common Stock that such holder would otherwise be entitled to receive on the basis of $0.0023 per share of existing Common Stock.

 

Although the Reverse Stock Split has been approved by the requisite number of stockholders, the Company’s Board reserves the right, in its discretion, to abandon the Reverse Stock Split prior to the proposed Effective Date if it determines that abandoning the Reverse Stock Split is in the best interests of the Company.

 

The Reverse Stock Split is being undertaken as part of the Company’s plan to suspend its obligations to file periodic and current reports and other information with the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As described further in the Information Statement Form Def-14C, the Company’s Board has determined that the costs of being a public reporting company outweigh the benefits thereof. The actions described herein, including effecting the Reverse Stock Split, terminating the registration of our Common Stock under Section 12(g) of the Exchange Act and suspending of our reporting obligations under Section 15(d) of the Exchange Act, are collectively referred to herein as the “Transaction.” After giving effect to the Transaction, the Company will no longer be subject to the reporting requirements under the Exchange Act or other requirements applicable to a public company, including requirements under the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and the listing standards of any national securities exchange.

 

Additionally, the Reverse Stock Split is subject to Financial Industry Regulatory Authority (“FINRA”) approval, of which there are no assurances when and if FINRA will provide such approval.

 

On October 15, 2023, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.

v3.23.3
The Company and Summary of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2023
The Company and Summary of Significant Accounting Policies  
Basis of Presentation and Going Concern

The amounts in the notes are shown in thousands of EURO, unless otherwise noted, and rounded to the nearest thousand except for share and per share amounts.

 

The accompanying interim period condensed consolidated financial statements of Mymetics Corporation (the "Company") set forth herein have been prepared by the Company pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such SEC rules and regulations. The interim period condensed consolidated financial statements should be read together with the audited financial statements and the accompanying notes included in the Company's latest annual report on Form 10-K for the fiscal year ended December 31, 2022.

 

The Company was created for the purpose of engaging in vaccine research and development. Its main research efforts in the beginning have been concentrated in the prevention and treatment of the AIDS virus and malaria. The Company has established a network which enables it to work with education centers, research centers, pharmaceutical laboratories and biotechnology companies. Besides the HIV and malaria vaccine candidates, the Company additionally has generated preclinical data for the following vaccines: Herpes Simplex and Respiratory Syncytial Virus (“RSV”), neither of which is currently being developed. The company also has clinical data for an intranasal influenza vaccine for the elderly which has finished a Phase I clinical trial and is currently on hold. As of September 30, 2023, the Company has generated preclinical data for an intra nasal Covid-19 vaccine and early-stage preclinical data in immunotherapy in the field of oncology, but both programs have been stopped The Company has been collaborating with leading academic institutions, such as Baylor College of Medicine in Texas, the Amsterdam Medical Center (AMC) of the University of Amsterdam in the Netherlands and the University Hospital in Bern, Switzerland until April 2023.

 

On January 16, 2023, the Board appointed Marcel B. Rüegg to the Board to fill the vacancy created by Mr. Stern’s resignation. Mr. Rüegg was also appointed to the Audit Committee. The Company entered into an independent director agreement with Mr. Rüegg (the “Director Agreement”) setting forth the terms of his compensation. Pursuant to the Director Agreement, Mr. Rüegg is entitled to a fee of CHF 5,000 per quarter, which is payable quarterly, and CHF 350 per hour for each additional hour worked outside of meetings of the Board or attending more than one meeting of the Board per quarter, which is payable quarterly. The Company also agreed to reimburse Mr. Rüegg for pre-approved reasonable business expenses incurred in good faith in connection with the performance of his duties for the Company. The Company also agreed to indemnify, defend and hold harmless Mr. Rüegg, to the fullest extent permitted by law, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, subject to certain exceptions based on good faith and reasonableness.

 

On February 8, 2023, the Company announced that it has been conducting a process to explore strategic alternatives to enhance shareholder value. The Board authorized management and its external advisors to initiate such a process, and it has been considering a broad range of strategic alternatives including a potential sale of part or all of the Company. In connection therewith, the Company, through its external advisors, had requested bids (the “Bid Process”) for any combination of assets (including but not limited to as a going concern), by February 24, 2023, at 5:00 pm ET (the “Bid Deadline”). To the extent the Company determined there were viable bids by or prior to the Bid Deadline, the Company pursued those possible alternatives. To the extent the there were no viable bids provided by or prior to the Bid Deadline, the Company would consider other alternatives, including the winding up of its operations shortly after the Bid Deadline. On February 24, 2023, the Company announced that it was still discussing with counterparties potential bids for any combination of its assets (including but not limited to as a going concern) and had decided to extend the bid process (the “Bid Process”) for an indeterminate period of time. The extension of the Bid Process did not assure the sale of part or all of the Company or other change or outcome. The Company retained McDermott, Will & Emery LLP as legal counsel in connection with the Bid Process.

 

While the Company pursued these strategic alternatives, due to lack of liquidity, cost reductions for 2023 had been put in place, including the termination of employment agreements for all employees, except Ronald Kempers. On July 26, 2023, the Company decided to winddown its wholly owned subsidiary Bestewil Holding BV (“BH”) and Mymetics BV running the laboratory, which is the wholly owned subsidiary of BH.  The Company has been working with the appropriate accountants to ensure this winddown process follows the applicable tax and accounting regulations. The execution of the winddown is expected to take several months to complete and is subject to various risks and uncertainties that could impact on the Company's ability to successfully complete the winddown or the costs associated with the winddown. To the extent that none of the remaining strategic alternatives are viable, we are exploring a possible winddown of the Company. The Board of Directors of the Company continues to evaluate the next steps, in connection with a possible winddown of the Company’s operations. As of the date of this filing, there is no certainty or conclusion on the future of the Company.

During the fiscal year 2023, the Company has been notified twice by the OTC Markets Group, once on May 12, 2023 and the second time on September 14, 2023, that its bid price had closed below $0.01 for more than 30 consecutive calendar days and no longer met the Standards for Continued Eligibility for OTCQB as per the OTCQB Standards, Section 2.3(2), which states that the Company must “maintain proprietary priced quotations published by a Market Maker in OTC Link with a minimum closing bid price of $.01 per share on at least one of the prior thirty consecutive calendar days.” As per Section 4.1 of the OTCQB Standards, the Company will be granted a cure period of 90 calendar days during which the closing bid price for the Company’s Common Stock must be $.01 or greater for ten consecutive trading days in order to continue trading on the OTCQB marketplace. If this requirement is not met by December 13, 2023, the Company will be removed from the OTCQB marketplace.

 

On October 16, 2023, the Company was informed by the OTC Markets that the Company’s bid price for the stock closed below $.001 on October 13, 2023, and that in the event that the Company’s closing bid price per share falls below $0.001 at any time for five consecutive trading days, the Company will be removed from OTCQB as per Section 4.1(b) of the OTCQB Standards.  On October 23, 2023, the Company was informed that it has been moved from the OTCQB to the OTC Pink on October 24, 2023, as its closing bid price per share has fallen below $0.001 for more than 5 consecutive trading days.

 

The Company filed an 8-K on October 11, 2023, a Form Pre-14C and Schedule 13E-3, on October 16 and October 17, 2023, respectively, followed by a Form Def-14C and Schedule 13E-3/A on October 27, 2023 in which it announced that following (i) the approval on October 5, 2023 of resolutions by the Company’s Board of Directors (the “Board”) proposing an amendment to the Company’s Certificate of Incorporation (the “ Certificate of Incorporation”) to effect a reverse stock split of the Company’s Common Stock (the “Reverse Stock Split”) and (ii) the receipt of written consents dated October 9, 2023 (the “ Written Consents”), approving such amendment by stockholders holding 51.55% of the voting power of all of the Company’s stockholders entitled to vote (the “Consenting Stockholders”) on the matter as of October 9, 2023 (the “ Record Date”). The resolutions adopted by the Board and the written consents of the stockholders give has provided the Company the authority to file a Certificate of Amendment to the Certificate of Incorporation (the “Certificate of Amendment”). The Certificate of Amendment shall be filed with the Secretary of State of the State of Delaware on or after November 20, 2023 (20 calendar days following the date this Information Statement is first mailed to the Company’s stockholders) and will become effective immediately thereafter (the “Effective Date”). As a result of the Reverse Stock Split, as described in the Form Def-14C, Mymetics stockholders owning fewer than 2,000 shares of Mymetics Common Stock will receive cash in the amount of $0.0023 per share of existing Common Stock, and Mymetics stockholders who own 2,000 or more shares of existing Common Stock on the Effective Date will receive (i) one share of new Common Stock for every 2,000 shares of existing Common Stock held on the Effective Date and (ii) cash in lieu of any fractional share of new Common Stock that such holder would otherwise be entitled to receive on the basis of $0.0023 per share of existing Common Stock.

 

Although the Reverse Stock Split has been approved by the requisite number of stockholders, the Company’s Board reserves the right, in its discretion, to abandon the Reverse Stock Split prior to the proposed Effective Date if it determines that abandoning the Reverse Stock Split is in the best interests of the Company.

 

The Reverse Stock Split is being undertaken as part of the Company’s plan to suspend its obligations to file periodic and current reports and other information with the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As described further in the Information Statement Form Def-14C, the Company’s Board has determined that the costs of being a public reporting company outweigh the benefits thereof. The actions described herein, including effecting the Reverse Stock Split, terminating the registration of our Common Stock under Section 12(g) of the Exchange Act and suspending of our reporting obligations under Section 15(d) of the Exchange Act, are collectively referred to herein as the “Transaction.” After giving effect to the Transaction, the Company will no longer be subject to the reporting requirements under the Exchange Act or other requirements applicable to a public company, including requirements under the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and the listing standards of any national securities exchange.

 

Additionally, the Reverse Stock Split is subject to Financial Industry Regulatory Authority (“FINRA”) approval, of which there are no assurances when and if FINRA will provide such approval.

 

As previously announced, the Board continues to evaluate the next steps in the Company’s business, in connection with a possible winddown of the Company’s operations.

These consolidated financial statements have been prepared assuming the Company will continue as a going concern, however the significantly reduced human resource and lack of financial resources has triggered the Company to record a complete Goodwill write-off for the period ending September 30, 2023. The Company has experienced negative cash flows from operations and significant losses since inception resulting in an accumulated deficit of €113,215 at September 30, 2023. Further, the Company’s current liabilities exceed its current assets by €75,426 as of September 30, 2023, and there is no assurance that cash will become available to pay current liabilities in the near term. Management is seeking strategic alternatives but there can be no assurance that management will be successful in any of those efforts. These conditions raise substantial doubt about our ability to continue as a going concern within three months of the issuance of the financial statements. Besides the Goodwill impairment, the financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Leases

Effective January 1, 2019, the Company adopted ASC 842, which established a right-of-use ("ROU") model requiring lessees to record a right-of-use ("ROU") asset and lease obligations on the balance sheet for all leases with terms longer than 12 months. The Company determines if an arrangement is a lease at inception. Where an arrangement is a lease, the Company determines if it is an operating lease or a finance lease. At lease commencement, the Company records a lease liability and corresponding right-of-use ("ROU") asset. Lease liabilities represent the present value of our future lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the Company’s lease liability is determined using its incremental collateralized borrowing rate at lease inception. ROU assets represent its right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability for leases with an initial term greater than 12 months. Over the lease term (operating leases only), the Company uses the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to consolidated statement of operations in a manner that results in straight line expense recognition. The Company does not apply lease recognition requirements for short-term leases. Instead, the Company recognizes payments related to these arrangements in the consolidated statement of operations as lease costs on a straight-line basis over the lease term.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated.

New Accounting Pronouncement

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Specifically, ASU 2020-06 simplifies accounting for the issuance of convertible instruments by removing major separation models required under current GAAP. In addition, the ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share (EPS) calculation in certain areas. ASU 2020-06 will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, beginning in fiscal years which begin after December 15, 2020. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluating the impact of the pending adoption of this new standard on its consolidated financial statements.

Foreign Currency Translation

The Company translates non-Euro assets and liabilities of its subsidiaries at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Unrealized gains or losses from these translations are reported as a separate component of comprehensive income. Transaction gains or losses are included in foreign exchange (gain) loss in the consolidated statements of comprehensive loss. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations. The Company's reporting currency is the Euro because substantially all of the Company's activities are conducted in Europe.

Cash

The Company considers all highly liquid investments purchased with maturities of six months or less to be cash equivalents. Cash deposits are occasionally in excess of insured amounts.

Revenue Recognition

Effective January 1, 2018, the Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, using the modified retrospective method and there was no impact to financial position and results of operations as a result of the adoption. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Overall, adoption of the new standard did not result in an adjustment to amounts previously reported in our consolidated financial statements and there were no other significant changes impacting the timing or measurement of our revenue or our business processes and controls.

 

The Company has concluded that government grants are not within the scope of Topic 606, as they do not meet the definition of a contract with a “customer”. The Company concluded the definition of a contract with a “customer” was not met as the counterparty to the government grants has not contracted to obtain goods or services and thus the contracts are not considered to have commercial substance. Government grants provide the Company with payments for certain types of expenditures related to research and development activities over a contractually defined period. Revenue from government grants is recognized in the period during which the related costs are incurred, provided that the applicable conditions under the government contracts have been met.

NIH

On April 29, 2019, the National Institutes of Health (“NIH”) awarded the Company and Texas Biomedical Research Institute (“Texas Biomed”) a five-year grant for the project called “Cold Chain-independent, Needle-free Mucosal Virosomal Vaccine to Prevent HIV-1 Acquisition at Mucosal Levels” (“NIH Grant”). The project started on May 1, 2019, and has been planned for five years. It was initially co-led by Texas Biomed, but due to the move of Dr. Ruth Ruprecht, the Co-Principal Investigator, to the University of Louisiana at Lafayette (“ULL”) at the end of 2019, ULL has become the co-lead with Mymetics for this project. The overall budget related to the project is US$8,850 with US$8,761 approved for the period of (May 2019 to April 2024). This includes the funds approved for the period of May 2023 to April 2024 of US$1’630.

 

The amounts mentioned in the following statements are purely related to the Company and not to the other partners in the project: The overall portion of the grant allocated to the Company is US$4,052 approved for the period of May 2019 to April 2024. This includes the funds approved for the period of May 2023 to April 2024 of US$97. In March 2023, an amendment to the contract was signed to reduce the allocated funds from ULL to the Company from US$1,328 to US$ 815, as more funds were allocated to the animal studies at ULL.

 

The cost granted under the sub-award with Texas Biomed for the period of (May to December 2019) was US$743, of which, US$599 (€542) was incurred as revenue.

 

The sub-award contracts between ULL and the Company for the period of (January 2020 to April 2021) were signed for a total budget of US$1,319, of which, US$1,048 (€909) was incurred as revenue.

 

The sub-award contract between ULL and the Company for the period of (May 2021 to April 2022) was signed for a total budget of US$1,078, of which, US$986 (€899) was incurred as revenue.

 

The sub-award contract, including the amendment, between ULL and the Company for the period of (May 2022 to April 2023) was signed for a total budget of US$815, of which, US$674 (€638) was incurred as revenue as of end of April 2023.

 

The sub-award contract between ULL and the Company for the period of (May 2023 to April 2024) was signed for a total budget of US$97, of which, US$55 (€47) was incurred as revenue.

 

Since the beginning of the project to date, the Company has incurred a total cost of US$3,362 (€3,035) which was recognized as grant revenue from the NIH. For the three and nine months ended on September 30, 2023, the Company has incurred a total cost of US$36 (€30) and US$440 (€406), respectively, which was recognized as grant revenue from the NIH. The First results are expected to be reported in 2023.

The project had the objective to prepare the Company’s HIV-1 vaccine candidate for clinical trials, by first executing a non-human primate (“NHP”) study, where the test subjects will be receiving Mymetics’ virosome based HIV-1 vaccine candidate by several intra-muscular and intra-nasal applications, followed by rectal challenges. As of September 30, 2023, the Company has successfully produced six sets of virosome based vaccines and the NHPs have received two intramuscular vaccinations and three intranasal vaccinations in two different studies. The vaccinations were well tolerated. The final studies are ongoing. The vaccine candidate is created to induce protective mucosal antibodies acting as a frontline defense against sexual HIV transmission. This grant from the NIH has allowed the Company to continue some of the developments that were achieved during the European Horizon 2020 project.

 

In February 2022, Mymetics announced the publication of results in Frontiers in Immunology title: “Cooperation between Systemic and Mucosal Antibodies Induced by Virosomal Vaccines Targeting HIV1 Env: Protection of Indian Rhesus Macaques against Mucosal SHIV challenges”.

 

The Project with ULL under the NIH grant for our HIV vaccine is in its final year that will end on April 30, 2024. Mymetics has provided its commitments to this project by delivering the vaccines, which are tested in non-human primates.

Receivables

Receivables are stated at their outstanding principal balances. Management reviews the collectability of receivables on a periodic basis and determines the appropriate amount of any allowance. There was no allowance necessary at September 30, 2023 or December 31, 2022. The Company writes off receivables to the allowance when management determines that a receivable is not collectible. The Company may retain a security interest in the products sold.

Property and Equipment

Property and equipment is recorded at cost and is depreciated over its estimated useful life on straight-line basis from the date placed in service. Estimated useful lives are usually taken as three years.

Impairment of Long-Lived Assets

Long-lived assets, which include property and equipment, are assessed for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. The impairment testing involves comparing the carrying amount to the forecasted undiscounted future cash flows generated by that asset. In the event the carrying value of the assets exceeds the undiscounted future cash flows generated by that asset and the carrying value is not considered recoverable, impairment exists. An impairment loss is measured as the excess of the asset’s carrying value over its fair value, calculated using a discounted future cash flow method. An impairment loss would be recognized in net income (loss) in the period that the impairment occurs.

Goodwill

Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of a business acquired. The Company typically performs its annual goodwill impairment test effective as of April 1 of each year, unless events or circumstances indicate impairment may have occurred before that time. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than it’s carrying amount. With the significantly reduced human resources and lack of funds the Company has recorded a complete Goodwill write-off for the nine months period ending September 30, 2023.

Research and Development

Research and development costs are expensed as incurred.

Taxes on Income

The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax laws or rates.

The Company reports a liability, if any, for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of interest expense and other expense, respectively.

 

The Company has not recorded any liabilities for uncertain tax positions or any related interest and penalties at December 31, 2022 or 2021. The Company’s United States tax returns are open to audit for the years ended December 31, 2018 to 2021. The returns for the Swiss subsidiary, Mymetics S.A., are open to audit for the year ended December 31, 2021. The returns for the Netherlands subsidiaries, Bestewil B.V. and Mymetics B.V., are open to audit for the year ended December 31, 2021.

Earnings per Share

Basic earnings per share is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. For the periods ended September 30, 2023 and 2022, options and convertible debt were not included in the computation of diluted earnings per share because their effect would be anti-dilutive due to net losses incurred under the treasury stock method.

 

For the three and nine months ended September 30, 2023, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 830,150,223 at September 30, 2023 includes 804,400,223 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees.

 

For the three and nine months ended September 30, 2022, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 793,630,391 at September 30, 2022 includes 767,880,391 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees. 

Preferred Stock

The Company has authorized 5,000,000 shares of preferred stock that may be issued in several series with varying dividend, conversion and voting rights. No preferred shares are issued or outstanding at September 30, 2023 or December 31, 2022.

Estimates

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value Measurements

Fair value guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

 

 

Level 1-

Quoted prices in active markets for identical assets or liabilities.

 

Level 2-

Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

 

Level 3-

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair Values of Financial Instruments

The Company generally has the following financial instruments: cash, receivables, accounts payable, and notes payable. The carrying value of cash, accounts receivable, and accounts payable, approximates their fair value based on the short-term nature of these financial instruments. Management believes the fair value of the note’s payable reflects the actual value reported for these instruments.

Concentrations

The Company derived 99% and 100% of grant revenue for the nine-month periods ended September 30, 2023 and 2022, respectively, from one grantor, respectively. For the period ended December 31, 2022, the Company derived 100% of grant revenue from one partner.

Related Party Transactions

Mr. Ernest M. Stern, the Company’s, is a partner in Culhane Meadows PLLC and was outside counsel to the company and a director of the Company until his resignation on December 20, 2022. Culhane Meadows PLLC was the Company’s legal counsel until December 31, 2022. Fees incurred with the law firm was NIL in the nine months ended September 30, 2023, and totaling €10 and €6 for the three months ended September 30, 2022.

 

On January 16, 2023, the Board appointed Marcel B. Rüegg to the Board to fill the vacancy created by Mr. Stern’s resignation. Mr. Rüegg was also appointed to the Audit Committee. The Company entered into an independent director agreement with Mr. Rüegg (the “Director Agreement”) setting forth the terms of his compensation. Pursuant to the Director Agreement, Mr. Rüegg is entitled to a fee of CHF 5,000 per quarter, which is payable quarterly, and CHF 350 per hour for each additional hour worked outside of meetings of the Board or attending more than one meeting of the Board per quarter, which is payable quarterly. The Company also agreed to reimburse Mr. Rüegg for pre-approved reasonable business expenses incurred in good faith in connection with the performance of his duties for the Company. The Company also agreed to indemnify, defend and hold harmless Mr. Rüegg, to the fullest extent permitted by law, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, subject to certain exceptions based on good faith and reasonableness. No fee was paid to Marcel B. Rüegg during the nine months ended September 30, 2023.

 

Two of the Company’s major shareholders have granted secured convertible notes and short-term convertible notes and promissory notes, which have a total carrying amount of €74,483 including interest due as of September 30, 2023. Conversion prices on the Euro-denominated convertible debt have been fixed to a fixed Euro/US dollar exchange rate.

v3.23.3
Debt Financing (Tables)
9 Months Ended
Sep. 30, 2023
Debt Financing  
Schedule of notes and other loans

 

 

 

 

 

 

Conversion

 

Fixed Rate

 

Lender Price

 

1st-Issue Date

 

 

Principal Amount

 

Duration (Note)

 

Interest Rate

 

Price (stated)

 

EUR/USD Conversion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eardley Holding A.G. (1)

 

06/23/2006

 

 

180

 

(2

)

10% pa

 

$

0.10

 

N/A

 

Anglo Irish Bank S.A.(3)

 

10/21/2007

 

 

500

 

(2

)

10% pa

 

$

0.50

 

1.4090

 

Round Enterprises Ltd.

 

12/10/2007

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.4429

 

Round Enterprises Ltd.

 

01/22/2008

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.4629

 

Round Enterprises Ltd.

 

04/25/2008

 

 

2,000

 

(2

)

10% pa

 

$

0.50

 

1.5889

 

Round Enterprises Ltd.

 

06/30/2008

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.5380

 

Round Enterprises Ltd.

 

11/18/2008

 

 

1,200

 

(2

)

10% pa

 

$

0.50

 

1.2650

 

Round Enterprises Ltd.

 

02/09/2009

 

 

1,500

 

(2

)

10% pa

 

$

0.50

 

1.2940

 

Round Enterprises Ltd.

 

06/15/2009

 

 

5,500

 

(2,4

)

10% pa

 

$

0.80

 

1.4045

 

Eardley Holding A.G.

 

06/15/2009

 

 

100

 

(2,4

)

10% pa

 

$

0.80

 

1.4300

 

Von Meyenburg

 

08/03/2009

 

 

200

 

(2

)

10% pa

 

$

0.80

 

1.4400

 

Round Enterprises Ltd.

 

10/13/2009

 

 

2,000

 

(2

)

5% pa

 

$

0.25

 

1.4854

 

Round Enterprises Ltd.

 

12/18/2009

 

 

2,200

 

(2

)

5% pa

 

$

0.25

 

1.4338

 

Round Enterprises Ltd.

 

08/04/2011

 

 

1,135

 

(5,6

)

10% pa

 

$

0.034

 

N/A

 

Eardley Holding A.G.

 

08/04/2011

 

 

284

 

(5,6

)

10% pa

 

$

0.034

 

N/A

 

Round Enterprises Ltd.

 

11/08/2011

 

 

400

 

(6

)

10% pa

 

$

0.034

 

1.3787

 

Eardley Holding A.G.

 

11/08/2011

 

 

100

 

(6

)

10% pa

 

$

0.034

 

1.3787

 

Round Enterprises Ltd.

 

02/10/2012

 

 

1,000

 

(6

)

10% pa

 

$

0.034

 

1.3260

 

Eardley Holding A.G.

 

02/14/2012

 

 

200

 

(6

)

10% pa

 

$

0.034

 

1.3260

 

Round Enterprises Ltd.

 

04/19/2012

 

 

322

 

(6

)

10% pa

 

$

0.034

 

1.3100

 

Eardley Holding A.G.

 

04/19/2012

 

 

80

 

(6

)

10% pa

 

$

0.034

 

1.3100

 

Round Enterprises Ltd.

 

05/04/2012

 

 

480

 

(6

)

10% pa

 

$

0.034

 

1.3152

 

Eardley Holding A.G.

 

05/04/2012

 

 

120

 

(6

)

10% pa

 

$

0.034

 

1.3152

 

Round Enterprises Ltd.

 

09/03/2012

 

 

200

 

(6

)

10% pa

 

$

0.034

 

1.2576

 

Eardley Holding A.G.

 

09/03/2012

 

 

50

 

(6

)

10% pa

 

$

0.034

 

1.2576

 

Round Enterprises Ltd.

 

11/14/2012

 

 

500

 

(6

)

10% pa

 

$

0.034

 

1.2718

 

Eardley Holding A.G.

 

12/06/2012

 

 

125

 

(6

)

10% pa

 

$

0.034

 

1.3070

 

Round Enterprises Ltd.

 

01/16/2013

 

 

240

 

(6

)

10% pa

 

$

0.034

 

1.3318

 

Eardley Holding A.G.

 

01/16/2013

 

 

60

 

(6

)

10% pa

 

$

0.034

 

1.3318

 

Round Enterprises Ltd.

 

03/25/2013

 

 

400

 

(6

)

10% pa

 

$

0.037

 

1.2915

 

Eardley Holding A.G.

 

04/14/2013

 

 

150

 

(6

)

10% pa

 

$

0.034

 

1.3056

 

Round Enterprises Ltd.

 

04/14/2013

 

 

600

 

(6

)

10% pa

 

$

0.034

 

1.3056

 

Eardley Holding A.G.

 

05/15/2013

 

 

170

 

(6

)

10% pa

 

$

0.037

 

1.2938

 

Round Enterprises Ltd.

 

05/15/2013

 

 

680

 

(6

)

10% pa

 

$

0.037

 

1.2938

 

Eardley Holding A.G.

 

06/24/2013

 

 

60

 

(6

)

10% pa

 

$

0.025

 

1.3340

 

Round Enterprises Ltd.

 

06/24/2013

 

 

240

 

(6

)

10% pa

 

$

0.025

 

1.3340

 

Eardley Holding A.G.

 

08/05/2013

 

 

80

 

(6

)

10% pa

 

$

0.018

 

1.3283

 

Round Enterprises Ltd.

 

08/05/2013

 

 

320

 

(6

)

10% pa

 

$

0.018

 

1.3283

 

Eardley Holding A.G.

 

03/01/2017

 

 

230

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

03/01/2017

 

 

920

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

10/18/2017

 

 

230

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

10/18/2017

 

 

920

 

(7

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

06/01/2018

 

 

160

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

06/01/2018

 

 

640

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

11/10/2018

 

 

160

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

11/10/2018

 

 

640

 

(8

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

06/15/2019

 

 

120

 

(9

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

06/15/2019

 

 

480

 

(9

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

12/20/2019

 

 

120

 

(10

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

12/20/2019

 

 

480

 

(10

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

06/15/2020

 

 

220

 

(11

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

06/15/2020

 

 

880

 

(11

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

12/15/2020

 

 

170

 

(12

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

12/15/2020

 

 

680

 

(12

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

08/15/2021

 

 

240

 

(13

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

08/15/2021

 

 

960

 

(13

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding AG

 

04/30/2022

 

 

120

 

(14

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

04/30/2022

 

 

480

 

(14

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

08/15/2022

 

 

120

 

(15

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

08/15/2022

 

 

480

 

(15

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

12/31/2022

 

 

50

 

(16

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

12/31/2022

 

 

200

 

(16

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

02/28/2023

 

 

100

 

(17

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

02/28/2023

 

 

400

 

(17

)

2.5% pa

 

 

N/A

 

N/A

 

Eardley Holding A.G.

 

05/30/2023

 

 

120

 

(18

)

2.5% pa

 

 

N/A

 

N/A

 

Round Enterprises Ltd.

 

05/30/2023

 

 

480

 

(18

)

2.5% pa

 

 

N/A

 

N/A

 

Total Short Term Principal Amounts

 

 

 

 

38,676

 

 

 

 

 

 

 

 

 

 

   Accrued Interest

 

 

 

 

36,290

 

 

 

 

 

 

 

 

 

 

TOTAL LOANS AND NOTES

 

 

 

 

74,966

 

 

 

 

 

 

 

 

 

 

v3.23.3
The Company and Summary of Significant Accounting Policies (Details Narrative)
€ in Thousands, $ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
EUR (€)
shares
Sep. 30, 2023
USD ($)
shares
Sep. 30, 2022
shares
Sep. 30, 2023
EUR (€)
shares
Sep. 30, 2023
USD ($)
shares
Sep. 30, 2022
shares
Dec. 31, 2022
EUR (€)
shares
Current liabilities exceeding current assets | € € 75,426     € 75,426      
Preferred stock shares authorized | shares 5,000,000     5,000,000     5,000,000
Potentially shares issuable | shares 830,150,223 830,150,223 793,630,391 25,750,000,000 25,750,000,000 793,630,391  
Potentially shares issuable convertible loans | shares 804,400,223 804,400,223 767,880,391        
Sub award grant revenue USD | $   $ 36     $ 440    
Accumulated deficit | € € (113,215)     € (113,215)     € (102,555)
Sub award grant revenue euro | € 30     406      
Secured convertible notes and short-term convertible notes and promissory notes | € € 74,483     € 74,483      
Basic weighted and diluted | shares 303,757,622 303,757,622 303,757,622 303,757,622 303,757,622 303,757,622  
Budget description       The overall budget related to the project is US$8,850 with US$8,761 approved for the period of (May 2019 to April 2024). This includes the funds approved for the period of May 2023 to April 2024 of US$1’630 The overall budget related to the project is US$8,850 with US$8,761 approved for the period of (May 2019 to April 2024). This includes the funds approved for the period of May 2023 to April 2024 of US$1’630    
Grant allocated description       The amounts mentioned in the following statements are purely related to the Company and not to the other partners in the project: The overall portion of the grant allocated to the Company is US$4,052 approved for the period of May 2019 to April 2024. This includes the funds approved for the period of May 2023 to April 2024 of US$97. In March 2023, an amendment to the contract was signed to reduce the allocated funds from ULL to the Company from US$1,328 to US$ 815, as more funds were allocated to the animal studies at ULL The amounts mentioned in the following statements are purely related to the Company and not to the other partners in the project: The overall portion of the grant allocated to the Company is US$4,052 approved for the period of May 2019 to April 2024. This includes the funds approved for the period of May 2023 to April 2024 of US$97. In March 2023, an amendment to the contract was signed to reduce the allocated funds from ULL to the Company from US$1,328 to US$ 815, as more funds were allocated to the animal studies at ULL    
Grant Revenue [Member]              
Concentration risk percentage       99.00% 99.00% 100.00% 100.00%
First Year [Member]              
Sub award grant revenue USD | $         $ 599    
Sub award grant revenue euro | €       € 542      
Sub award project cost USD | $         743    
Second Year [Member]              
Sub award grant revenue USD | $         1,048    
Sub award grant revenue euro | €       909      
Sub award project cost USD | $         1,319    
Third Year [Member]              
Sub award grant revenue USD | $         986    
Sub award grant revenue euro | €       899      
Sub award project cost USD | $         1,078    
Fourth Year [Member]              
Sub award grant revenue USD | $         674    
Sub award grant revenue euro | €       638      
Sub award project cost USD | $         815    
Five Year [Member]              
Sub award grant revenue USD | €       55      
Sub award grant revenue euro | €       47      
Sub award project cost USD | $         97    
Revanue form NIH [Member]              
Sub award grant revenue USD | $         $ 3,362    
Sub award grant revenue euro | €       € 3,035      
v3.23.3
Debt Financing (Details) - 9 months ended Sep. 30, 2023
€ in Thousands
EUR (€)
$ / shares
Total short term principal amounts € 38,676  
Accrued interest 36,290  
Total loans and notes € 74,966  
Note 1 [Member]    
Issuance date 06/23/2006  
Principal amount € 180  
Interest rate 10.00%  
Conversion price | $ / shares   $ 0.10
Note 2 [Member]    
Issuance date 10/21/2007  
Principal amount € 500  
Interest rate 10.00%  
Conversion price | $ / shares   0.50
Fixed rate conversion 1.4090  
Note 3 [Member]    
Issuance date 12/10/2007  
Principal amount € 1,500  
Interest rate 10.00%  
Conversion price | $ / shares   0.50
Fixed rate conversion 1.4429  
Note 4 [Member]    
Issuance date 01/22/2008  
Principal amount € 1,500  
Interest rate 10.00%  
Conversion price | $ / shares   0.50
Fixed rate conversion 1.4629  
Note 5 [Member]    
Issuance date 04/25/2008  
Principal amount € 2,000  
Interest rate 10.00%  
Conversion price | $ / shares   0.50
Fixed rate conversion 1.5889  
Note 6 [Member]    
Issuance date 06/30/2008  
Principal amount € 1,500  
Interest rate 10.00%  
Conversion price | $ / shares   0.50
Fixed rate conversion 1.5380  
Note 7 [Member]    
Issuance date 11/18/2008  
Principal amount € 1,200  
Interest rate 10.00%  
Conversion price | $ / shares   0.50
Fixed rate conversion 1.2650  
Note 8 [Member]    
Issuance date 02/09/2009  
Principal amount € 1,500  
Interest rate 10.00%  
Conversion price | $ / shares   0.50
Fixed rate conversion 1.2940  
Note 9 [Member]    
Issuance date 06/15/2009  
Principal amount € 5,500  
Interest rate 10.00%  
Conversion price | $ / shares   0.80
Fixed rate conversion 1.4045  
Note 10 [Member]    
Issuance date 06/15/2009  
Principal amount € 100  
Interest rate 10.00%  
Conversion price | $ / shares   0.80
Fixed rate conversion 1.4300  
Note 11 [Member]    
Issuance date 08/03/2009  
Principal amount € 200  
Interest rate 10.00%  
Conversion price | $ / shares   0.80
Fixed rate conversion 1.4400  
Note 12 [Member]    
Issuance date 10/13/2009  
Principal amount € 2,000  
Interest rate 5.00%  
Conversion price | $ / shares   0.25
Fixed rate conversion 1.4854  
Note 13 [Member]    
Issuance date 12/18/2009  
Principal amount € 2,200  
Interest rate 5.00%  
Conversion price | $ / shares   0.25
Fixed rate conversion 1.4338  
Note 14 [Member]    
Issuance date 08/04/2011  
Principal amount € 1,135  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Note 15 [Member]    
Issuance date 08/04/2011  
Principal amount € 284  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Note 16 [Member]    
Issuance date 11/08/2011  
Principal amount € 400  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3787  
Note 17 [Member]    
Issuance date 11/08/2011  
Principal amount € 100  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3787  
Note 18 [Member]    
Issuance date 02/10/2012  
Principal amount € 1,000  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3260  
Note 19 [Member]    
Issuance date 02/14/2012  
Principal amount € 200  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3260  
Note 20 [Member]    
Issuance date 04/19/2012  
Principal amount € 322  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3100  
Note 21 [Member]    
Issuance date 04/19/2012  
Principal amount € 80  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3100  
Note 22 [Member]    
Issuance date 05/04/2012  
Principal amount € 480  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3152  
Note 23 [Member]    
Issuance date 05/04/2012  
Principal amount € 120  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3152  
Note 24 [Member]    
Issuance date 09/03/2012  
Principal amount € 200  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.2576  
Note 25 [Member]    
Issuance date 09/03/2012  
Principal amount € 50  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.2576  
Note 26 [Member]    
Issuance date 11/14/2012  
Principal amount € 500  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.2718  
Note 27 [Member]    
Issuance date 12/06/2012  
Principal amount € 125  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3070  
Note 28 [Member]    
Issuance date 01/16/2013  
Principal amount € 240  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3318  
Note 29 [Member]    
Issuance date 01/16/2013  
Principal amount € 60  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3318  
Note 30 [Member]    
Issuance date 03/25/2013  
Principal amount € 400  
Interest rate 10.00%  
Conversion price | $ / shares   0.037
Fixed rate conversion 1.2915  
Note 31 [Member]    
Issuance date 04/14/2013  
Principal amount € 150  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3056  
Note 32 [Member]    
Issuance date 04/14/2013  
Principal amount € 600  
Interest rate 10.00%  
Conversion price | $ / shares   0.034
Fixed rate conversion 1.3056  
Note 33 [Member]    
Issuance date 05/15/2013  
Principal amount € 170  
Interest rate 10.00%  
Conversion price | $ / shares   0.037
Fixed rate conversion 1.2938  
Note 34 [Member]    
Issuance date 05/15/2013  
Principal amount € 680  
Interest rate 10.00%  
Conversion price | $ / shares   0.037
Fixed rate conversion 1.2938  
Note 35 [Member]    
Issuance date 06/24/2013  
Principal amount € 60  
Interest rate 10.00%  
Conversion price | $ / shares   0.025
Fixed rate conversion 1.3340  
Note 36 [Member]    
Issuance date 06/24/2013  
Principal amount € 240  
Interest rate 10.00%  
Conversion price | $ / shares   0.025
Fixed rate conversion 1.3340  
Note 37 [Member]    
Issuance date 08/05/2013  
Principal amount € 80  
Interest rate 10.00%  
Conversion price | $ / shares   0.018
Fixed rate conversion 1.3283  
Note 38 [Member]    
Issuance date 08/05/2013  
Principal amount € 320  
Interest rate 10.00%  
Conversion price | $ / shares   $ 0.018
Fixed rate conversion 1.3283  
Note 39 [Member]    
Issuance date 03/01/2017  
Principal amount € 230  
Interest rate 2.50%  
Note 40 [Member]    
Issuance date 03/01/2017  
Principal amount € 920  
Interest rate 2.50%  
Note 41 [Member]    
Issuance date 10/18/2017  
Principal amount € 230  
Interest rate 2.50%  
Note 42 [Member]    
Issuance date 10/18/2017  
Principal amount € 920  
Interest rate 2.50%  
Note 43 [Member]    
Issuance date 06/01/2018  
Principal amount € 160  
Interest rate 2.50%  
Note 44 [Member]    
Issuance date 06/01/2018  
Principal amount € 640  
Interest rate 2.50%  
Note 45 [Member]    
Issuance date 11/10/2018  
Principal amount € 160  
Interest rate 2.50%  
Note 46 [Member]    
Issuance date 11/10/2018  
Principal amount € 640  
Interest rate 2.50%  
Note 47 [Member]    
Issuance date 06/15/2019  
Principal amount € 120  
Interest rate 2.50%  
Note 48 [Member]    
Issuance date 06/15/2019  
Principal amount € 480  
Interest rate 2.50%  
Note 49 [Member]    
Issuance date 12/20/2019  
Principal amount € 120  
Interest rate 2.50%  
Note 50 [Member]    
Issuance date 12/20/2019  
Principal amount € 480  
Interest rate 2.50%  
Note 51 [Member]    
Issuance date 06/15/2020  
Principal amount € 220  
Interest rate 2.50%  
Note 52 [Member]    
Issuance date 06/15/2020  
Principal amount € 880  
Interest rate 2.50%  
Note 53 [Member]    
Issuance date 12/15/2020  
Principal amount € 170  
Interest rate 2.50%  
Note 54 [Member]    
Issuance date 12/15/2020  
Principal amount € 680  
Interest rate 2.50%  
Note 55 [Member]    
Issuance date 08/15/2021  
Principal amount € 240  
Interest rate 2.50%  
Note 56 [Member]    
Issuance date 08/15/2021  
Principal amount € 960  
Interest rate 2.50%  
Note 57 [Member]    
Issuance date 04/30/2022  
Principal amount € 120  
Interest rate 2.50%  
Note 58 [Member]    
Issuance date 04/30/2022  
Principal amount € 480  
Interest rate 2.50%  
Note 59 [Member]    
Issuance date 08/15/2022  
Principal amount € 120  
Interest rate 2.50%  
Note 60 [Member]    
Issuance date 08/15/2022  
Principal amount € 480  
Interest rate 2.50%  
Note 61 [Member]    
Issuance date 12/31/2022  
Principal amount € 50  
Interest rate 2.50%  
Note 62 [Member]    
Issuance date 12/31/2022  
Principal amount € 200  
Interest rate 2.50%  
Note 63 [Member]    
Issuance date 02/28/2023  
Principal amount € 100  
Interest rate 2.50%  
Note 64 [Member]    
Issuance date 02/28/2023  
Principal amount € 400  
Interest rate 2.50%  
Note 65 [Member]    
Issuance date 05/30/2023  
Principal amount € 120  
Interest rate 2.50%  
Note 66 [Member]    
Issuance date 05/30/2023  
Principal amount € 480  
Interest rate 2.50%  
v3.23.3
Debt Financing (Details Narrative)
$ in Thousands
1 Months Ended 3 Months Ended 9 Months Ended
Aug. 15, 2022
EUR (€)
Aug. 15, 2021
EUR (€)
Dec. 15, 2020
EUR (€)
Jun. 01, 2018
EUR (€)
Mar. 01, 2017
EUR (€)
May 30, 2023
EUR (€)
Feb. 28, 2023
EUR (€)
Dec. 31, 2022
EUR (€)
Jun. 15, 2020
EUR (€)
Dec. 20, 2019
EUR (€)
Jun. 15, 2019
EUR (€)
Sep. 30, 2023
EUR (€)
Sep. 30, 2023
EUR (€)
Oct. 15, 2023
EUR (€)
Apr. 30, 2022
EUR (€)
Apr. 30, 2022
USD ($)
Apr. 02, 2020
EUR (€)
Description of conversion price                         (i) reducing by 10% the price per share of the Company’s common stock paid by the investors in connection with an investment in the Company of not less than US$20,000, or (ii) at the fixed conversion price using a fixed exchange rate which are noted in the table above        
Promissory Notes € 600,000 € 1,200,000 € 850,000     € 600,000 € 500,000 € 250,000 € 1,100,000 € 600,000 € 600,000     € 600,000 € 960,000    
Interest amount paid                       € 500.0 € 1,000        
Interest rate 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 1.50% 1.50%   2.50% 2.50%  
Debt instruments description The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2022, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes The promissory Notes of €960 and €240, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes The promissory Notes of €680 and €170, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes The first tranche of the promissory Notes of €640 and €160, respectively, were provided immediately. The second tranche of the promissory notes of €640 and €160, respectively, were provided on November 10, 2018, with a 2.5% interest per annum The first 50% of the promissory Notes of €920 and €230, respectively, were provided immediately. The second 50% of the promissory notes of €920 and €230, respectively, were provided on October 18, 2017, with a 2.5% interest per annum and a maturity date of October 18, 2018 The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes The promissory Notes of €400 and €100, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes The promissory Notes of €200 and €50, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2023, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes The promissory Notes of €880 and €220, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes            
Total loans and notes                       € 74,966,000 € 74,966,000        
Received from federal credit line                                 € 168,000
Amortization installment description                         A first amortization installment of Chf 14 (€14) was paid on October 3, 2022. A second amortization installment of Chf 14 (€14) was paid on April 3, 2023. The next amortization of €14 was incurred on September 30, 2023, but is paid on October 2, 2023. The entire loan should be fully amortized and repaid by September 30, 2027        
Debt instrument one                                  
Debt instrument face value                       190,000 € 190,000        
Debt instrument two                                  
Debt instrument face value                       1,200,000 1,200,000        
Debt instrument three                                  
Debt instrument face value                       € 300,000 € 300,000        
Promissory Notes One                                  
Promissory Notes         € 1,840,000                 480,000   $ 240  
Promissory Notes Two                                  
Promissory Notes         € 460,000                 € 120,000      
Promissory Notes Tranches One | Round Enterprises Ltd                                  
Promissory Notes Tranches       € 1,280,000                       480  
Promissory Notes Tranches One | Eardley Holding                                  
Promissory Notes Tranches | $                               120  
Promissory Notes Tranches Two | Round Enterprises Ltd                                  
Promissory Notes Tranches       € 320,000                       480  
Promissory Notes Tranches Two | Eardley Holding                                  
Promissory Notes Tranches | $                               $ 120  
v3.23.3
Commitments (Details Narrative) - EUR (€)
€ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2023
Commitments [Member]    
Other income   € 100
Severance payment and related fringe benefit   336
Rent   9
Lease Agreements [Member]    
General and administrative expense € 1 € 4
Weighted average lease term   2 years
Lease liabilities discounted   5.00%
Short Term Lease [Member]    
Rent paid per month   € 4
Netherlands [Member]    
Rent paid per month   € 9
Lease agreement maturity date   Mar. 31, 2024
v3.23.3
Subsequent Events (Details Narrative)
$ / shares in Units, € in Thousands, $ in Thousands
1 Months Ended 9 Months Ended
Oct. 11, 2023
Oct. 16, 2023
$ / shares
Sep. 30, 2023
Oct. 15, 2023
EUR (€)
May 30, 2023
EUR (€)
Feb. 28, 2023
EUR (€)
Dec. 31, 2022
EUR (€)
Aug. 15, 2022
EUR (€)
Apr. 30, 2022
EUR (€)
Apr. 30, 2022
USD ($)
Aug. 15, 2021
EUR (€)
Dec. 15, 2020
EUR (€)
Jun. 15, 2020
EUR (€)
Dec. 20, 2019
EUR (€)
Jun. 15, 2019
EUR (€)
Jun. 01, 2018
Mar. 01, 2017
EUR (€)
Description of conversion price     (i) reducing by 10% the price per share of the Company’s common stock paid by the investors in connection with an investment in the Company of not less than US$20,000, or (ii) at the fixed conversion price using a fixed exchange rate which are noted in the table above                            
Promissory Notes       € 600 € 600 € 500 € 250 € 600 € 960   € 1,200 € 850 € 1,100 € 600 € 600    
Interest rate     1.50%   2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%
Subsequent Event [Member]                                  
Description of closing bid Price fallen down   the Company’s closing bid price per share falls below $0.001 at any time for five consecutive trading days, the Company will be removed from OTCQB as per Section 4.1(b) of the OTCQB Standards. On October 23, 2023, the Company was informed that it has been moved from the OTCQB to the OTC Pink on October 24, 2023, as its closing bid price per share has fallen below $0.001 for more than 5 consecutive trading days                              
Bid price | $ / shares   $ 0.001                              
Description of conversion price stockholders owning fewer than 2,000 shares of Mymetics Common Stock will receive cash in the amount of $0.0023 per share of existing Common Stock, and Mymetics stockholders who own 2,000 or more shares of existing Common Stock on the Effective Date will receive (i) one share of new Common Stock for every 2,000 shares of existing Common Stock held on the Effective Date and (ii) cash in lieu of any fractional share of new Common Stock that such holder would otherwise be entitled to receive on the basis of $0.0023 per share of existing Common Stock                                
Interest rate       2.50%                          
Promissory Notes One                                  
Promissory Notes       € 480           $ 240             € 1,840
Promissory Notes Two                                  
Promissory Notes       € 120                         € 460

Grafico Azioni Mymetics (CE) (USOTC:MYMX)
Storico
Da Ott 2024 a Nov 2024 Clicca qui per i Grafici di Mymetics (CE)
Grafico Azioni Mymetics (CE) (USOTC:MYMX)
Storico
Da Nov 2023 a Nov 2024 Clicca qui per i Grafici di Mymetics (CE)