The following discussion and analysis should be read in conjunction with the
Condensed Financial Statements and Notes thereto included elsewhere in this
Quarterly Report. This discussion contains certain forward-looking statements
that involve risks and uncertainties. The Company's actual results and the
timing of certain events could differ materially from those discussed in these
forward-looking statements as a result of certain factors, including, but not
limited to, those set forth herein and elsewhere in this Quarterly Report and in
the Company's other filings with the SEC. See "Cautionary Note Regarding Forward
Looking Statements" below.
As used in this Management's Discussion and Analysis of Financial Condition and
Results of Operations, unless otherwise indicated, the terms "the Company",
"we", "us", "our" and similar terminology refer to Inhibitor Therapeutics, Inc.
Background and Known Trends and Uncertainties
We are a pharmaceutical development company that is focused on developing and
ultimately commercializing innovative therapeutics for patients with certain
cancers and certain non-cancerous proliferation disorders. While we are not
presently conducting research and development activities with respect to our
currently in-licensed technologies and our own intellectual property as a result
of pending litigations involving our company (see Note 7 to the accompanying
financial statements), we have explored and, due to the settlement of such
litigations as described in Note 7, we expect to continue to explore acquiring
or licensing other innovative preclinical and clinical stage therapeutics
following the consummation of the transactions (including the proposed change of
control of the Company) described in Note 7 related to the settlement of such
pending litigations. Such settlement received approval on November 10, 2022, and
such transactions are expected to become effective on December 10, 2022.
Our results of operations must be viewed in light of the now settled litigations
involving our company and our resulting inability (until such settlements are
consummated, expected on December 10, 2022) to conduct meaningful research,
development and other activities as a result. Until the settlement of such
litigations are formally consummated, we will continue to be unable to progress
our business. Moreover, if the litigation settlements described in Note 7 to the
accompanying financial statements are consummated as approved by the Court we
cannot currently predict if and how we will be able to recommence full
operations, in part because a change of control in the Company will have taken
place and our current officers and directors will be replaced.
Critical Accounting Policies
See Note 3 of the Notes to Condensed Financial Statements included in Item 1 of
this Quarterly Report for a summary of significant accounting policies and
information on recently issued accounting pronouncements.
Results of Operations
For the three months ended September 30, 2022 compared to the three months ended
September 30, 2021
Research and Development Expenses. There were no research and development
expenses during the three months ended September 30, 2022 and for the three
months ended September 30, 2021.
General and Administrative Expenses. We recognized approximately $0.1 million in
general and administrative expenses during the three months ended September 30,
2022 and for the three months ended September 30, 2021. General and
administrative expenses for both periods consisted primarily of professional
fees, compensation and related costs for corporate administrative staff and
Board members.
For the nine months ended September 30, 2022 compared to the nine months ended
September 30, 2021
Research and Development Expenses. We recognized less than $0.01 in research and
development expenses during the nine months ended September 30, 2022 and for the
nine months ended September 30, 2021. Research and development expenses for both
periods are primarily related to patents.
General and Administrative Expenses. We recognized approximately $0.2 million in
general and administrative expenses during the nine months ended September 30,
2022 and $0.3 million for the nine months ended September 30, 2021. General and
administrative expenses for both periods consisted primarily of professional
fees, compensation and related costs for corporate administrative staff and
Board members.
Gain on loan forgiveness. We recognized $41,600 in gain on loan forgiveness
during the nine months ended September 30, 2021 when our PPP Loan was forgiven
on March 31, 2021. There was no such gain in the nine months ended September 30,
2022.
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Liquidity and Capital Resources
We had approximately $53,00 in cash on hand at September 30, 2022. Based on our
current operational plan and budget and additional funds from Mayne Pharma, we
expect that we will have sufficient cash to manage our business into December
2022, when the settlements as described in Note 7 to the accompanying financial
statements are expected to be consummated (including a change of control of our
company and the funding of a substantial amount of working capital to our
company). This estimate assumes that no party to the litigations appeal the
court's ruling approving the settlement or that will otherwise face unexpected
events, costs or contingencies, any of which could affect our cash requirements.
Even following the settlement funding and change of control (should it occur),
available resources may be consumed more rapidly than anticipated, resulting in
the need for additional funding. As such time as we are able to recommence its
research and development activities, our company will be under new management
and significant additional funding will likely be required to advance our
company's business.
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