Restatement of Previously Issued Unaudited Condensed Financial Statements (Tables)

12 Months Ended

Dec. 31, 2022

Restatement of Previously Issued Unaudited Condensed Financial Statements

Schedule of Restatement of Previously Issued Unaudited Condensed Financial Statements

Annovis Bio, Inc.

Balance Sheets

	As of March 31, 2022
	(unaudited)
	As		Restatement		As
	Reported		Impacts		Restated
Assets
Current assets:
Cash and cash equivalents	$	42,668,838	$	—	$	42,668,838
Prepaid expenses and other current assets		627,902		800,840		1,428,742
Deferred clinical materials		—		—		—
Total current assets		43,296,740		800,840		44,097,580
Total Assets	$	43,296,740	$	800,840	$	44,097,580
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	928,997	$	—	$	928,997
Accrued expenses		327,435		140,690		468,125
Total current liabilities		1,256,432		140,690		1,397,122
Total liabilities	$	1,256,432	$	140,690	$	1,397,122
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock – $0.0001 par value, 2,000,000 shares authorized and 0 shares issued and outstanding		—		—		—
Common stock – $0.0001 par value, 35,000,000 shares authorized and 8,163,923 and 8,100,570 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively		816		—		816
Additional paid-in capital		76,659,912		—		76,659,912
Accumulated deficit		(34,620,420)		660,150		(33,960,270)
Total stockholders’ equity		42,040,308		660,150		42,700,458
Total liabilities and stockholders’ equity	$	43,296,740	$	800,840	$	44,097,580

Annovis Bio, Inc.

Statements of Operations

(unaudited)

	Three Months Ended March 31, 2022
	As		Restatement		As
	Reported		Impacts		Restated
Operating expenses:
Research and development	$	2,809,791	$	(660,150)	$	2,149,641
General and administrative		3,104,071		—		3,104,071
Total operating expenses		5,913,862		(660,150)		5,253,712
Operating loss		(5,913,862)		660,150		(5,253,712)
Other income:
Interest income		19,649		—		19,649
Grant Income		—		—		—
Total other income		19,649		—		19,649
Loss before income taxes		(5,894,213)		660,150		(5,234,063)
Income tax expense (benefit)		—		—		—
Net loss	$	(5,894,213)	$	660,150	$	(5,234,063)
Basic and diluted loss per common share	$	(0.72)		—	$	(0.64)
Weighted average number of common shares outstanding, basic and diluted		8,157,445		—		8,157,445

Annovis Bio, Inc.

Statements of Cash Flows

(unaudited)

	Three Months Ended March 31, 2022
	As			As
	Reported		Restatement Impacts	Restated
Cash flows from operating activities:
Net loss	$	(5,894,213)	660,150	$	(5,234,063)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		3,434,944	—		3,434,944
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(312,438)	(800,840)		(1,113,278)
Accounts payable		240,923	—		240,923
Accrued expenses		(491,005)	140,690		(350,315)
Net cash used in operating activities		(3,021,789)	—		(3,021,789)
Cash flows from financing activities:
Proceeds from exercise of stock options		4,613	—		4,613
Net cash used in financing activities		4,613	—		4,613
Net (decrease) increase in cash and cash equivalents		(3,017,176)	—		(3,017,176)
Cash and cash equivalents, beginning of period		45,686,014	—		45,686,014
Cash and cash equivalents, end of period	$	42,668,838	—	$	42,668,838

Annovis Bio, Inc.

Balance Sheets

	As of June 30, 2022
	(unaudited)
	As		Restatement		As
	Reported		Impacts		Restated
Assets
Current assets:
Cash and cash equivalents	$	35,974,251	$	—	$	35,974,251
Prepaid expenses and other current assets		551,072		3,441,895		3,992,967
Deferred clinical materials		—		—		—
Total current assets		36,525,323		3,441,895		39,967,218
Total Assets	$	36,525,323	$	3,441,895	$	39,967,218
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	901,841	$	—	$	901,841
Accrued expenses		397,544		—		397,544
Total current liabilities		1,299,385		—		1,299,385
Total liabilities	$	1,299,385	$	—	$	1,299,385
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock – $0.0001 par value, 2,000,000 shares authorized and 0 shares issued and outstanding		—		—		—
Common stock – $0.0001 par value, 35,000,000 shares authorized and 8,163,923 and 8,100,570 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		816		—		816
Additional paid-in capital		78,563,673		—		78,563,673
Accumulated deficit		(43,338,551)		3,441,895		(39,896,656)
Total stockholders’ equity		35,225,938		3,441,895		38,667,833
Total liabilities and stockholders’ equity	$	36,525,323	$	3,441,895	$	39,967,218

Annovis Bio, Inc.

Statements of Operations

(unaudited)

	Three Months Ended June 30, 2022
	As		Restatement		As
	Reported		Impacts		Restated
Operating expenses:
Research and development	$	6,815,708	$	(2,781,745)	$	4,033,963
General and administrative		1,938,447		–		1,938,447
Total operating expenses		8,754,155		(2,781,745)		5,972,410
Operating loss		(8,754,155)		2,781,745		(5,972,410)
Other income:
Interest income		36,024		—		36,024
Grant Income		—		—		—
Total other income		36,024		—		36,024
Loss before income taxes		(8,718,131)		2,781,745		(5,936,386)
Income tax expense (benefit)		—		—		—
Net loss	$	(8,718,131)	$	2,781,745	$	(5,936,386)
Basic and diluted loss per common share	$	(1.07)		—	$	(0.73)
Weighted average number of common shares outstanding, basic and diluted		8,163,923		—		8,163,923

Annovis Bio, Inc.

Statements of Operations

(unaudited)

	Six Months Ended June 30, 2022
	As		Restatement		As
	Reported		Impacts		Restated
Operating expenses:
Research and development	$	9,625,499	$	(3,441,895)	$	6,183,604
General and administrative		5,042,518		—		5,042,518
Total operating expenses		14,668,017		(3,441,895)		11,226,122
Operating loss		(14,668,017)		3,441,895		(11,226,122)
Other income:
Interest income		55,673		—		55,673
Grant Income		—		—		—
Total other income		55,673		—		55,673
Loss before income taxes		(14,612,344)		3,441,895		(11,170,449)
Income tax expense (benefit)		—		—		—
Net loss	$	(14,612,344)	$	3,441,895	$	(11,170,449)
Basic and diluted loss per common share	$	(1.79)		—	$	(1.37)
Weighted average number of common shares outstanding, basic and diluted		8,160,702		—		8,160,702

Annovis Bio, Inc.

Statements of Cash Flows

(unaudited)

	Six Months Ended June 30, 2022
	As				As
	Reported		Restatement Impacts		Restated
Cash flows from operating activities:
Net loss	$	(14,612,344)		3,441,895	$	(11,170,449)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		5,338,705		—		5,338,705
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(235,608)		(3,441,895)		(3,677,503)
Accounts payable		213,767	$	213,767
Accrued expenses		(420,896)	$	(420,896)
Net cash used in operating activities		(9,716,376)		—		(9,716,376)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of issuance costs		—		—		—
Proceeds from exercise of stock options		4,613		—		4,613
Net cash used in financing activities		4,613		—		4,613
Net (decrease) increase in cash and cash equivalents		(9,711,763)		—		(9,711,763)
Cash and cash equivalents, beginning of period		45,686,014		—		45,686,014
Cash and cash equivalents, end of period	$	35,974,251		—	$	35,974,251

Annovis Bio, Inc.

Balance Sheets

	As of September 30, 2022
	(unaudited)
	As		Restatement		As
	Reported		Impacts		Restated
Assets
Current assets:
Cash and cash equivalents	$	31,987,091	$	—	$	31,987,091
Prepaid expenses and other current assets		499,947		4,631,390		5,131,337
Total current assets		32,487,038		4,631,390		37,118,428
Total Assets	$	32,487,038	$	4,631,390	$	37,118,428
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	1,845,705	$	—	$	1,845,705
Accrued expenses		680,830		—		680,830
Total current liabilities		2,526,535		—		2,526,535
Total liabilities	$	2,526,535	$	—	$	2,526,535
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock – $0.0001 par value, 2,000,000 shares authorized and 0 shares issued and outstanding		—		—		—
Common stock – $0.0001 par value, 35,000,000 shares authorized and 8,163,923 and 8,100,570 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		816		—		816
Additional paid-in capital		80,919,684		—		80,919,684
Accumulated deficit		(50,959,997)		4,631,390		(46,328,607)
Total stockholders’ equity		29,960,503		4,631,390		34,591,893
Total liabilities and stockholders’ equity	$	32,487,038	$	4,631,390	$	37,118,428

Annovis Bio, Inc.

Statements of Operations

(unaudited)

	Three Months Ended September 30, 2022
	As		Restatement		As
	Reported		Impacts		Restated
Operating expenses:
Research and development	$	5,313,033	$	(1,189,495)	$	4,123,538
General and administrative		2,361,299		—		2,361,299
Total operating expenses		7,674,332		(1,189,495)		6,484,837
Operating loss		(7,674,332)		1,189,495		(6,484,837)
Other income:
Interest income		52,886		—		52,886
Grant Income		—		—		—
Total other income		52,886		—		52,886
Loss before income taxes		(7,621,446)		1,189,495		(6,431,951)
Income tax expense (benefit)		—		—		—
Net loss	$	(7,621,446)	$	1,189,495	$	(6,431,951)
Basic and diluted loss per common share	$	(0.93)		—	$	(0.79)
Weighted average number of common shares outstanding, basic and diluted		8,163,923		—		8,163,923

Annovis Bio, Inc.

Statements of Operations

(unaudited)

	Nine Months Ended September 30, 2022
	As		Restatement		As
	Reported		Impacts		Restated
Operating expenses:
Research and development	$	14,938,532	$	(4,631,390)	$	10,307,142
General and administrative		7,403,817		–		7,403,817
Total operating expenses		22,342,349		(4,631,390)		17,710,959
Operating loss		(22,342,349)		4,631,390		(17,710,959)
Other income:
Interest income		108,559		—		108,559
Grant Income		—		—		–
Total other income		108,559		—		108,559
Loss before income taxes		(22,233,790)		4,631,390		(17,602,400)
Income tax expense (benefit)		—		—		—
Net loss	$	(22,233,790)	$	4,631,390	$	(17,602,400)
Basic and diluted loss per common share	$	(2.72)		—	$	(2.16)
Weighted average number of common shares outstanding, basic and diluted		8,161,787		—		8,161,787

Annovis Bio, Inc.

Statements of Cash Flows

(unaudited)

	Nine Months Ended September 30, 2022
	As			As
	Reported		Restatement Impacts	Restated
Cash flows from operating activities:
Net loss	$	(22,233,790)	4,631,390	$	(17,602,400)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		7,694,716	—		7,694,716
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(184,483)	(4,631,390)		(4,815,873)
Accounts payable		1,157,631	—		1,157,631
Accrued expenses		(137,610)	—		(137,610)
Net cash used in operating activities		(13,703,536)	—		(13,703,536)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of issuance costs		—	—		—
Proceeds from exercise of stock options		4,613	—		4,613
Net cash used in financing activities		4,613	—		4,613
Net (decrease) increase in cash and cash equivalents		(13,698,923)	—		(13,698,923)
Cash and cash equivalents, beginning of period		45,686,014	—		45,686,014
Cash and cash equivalents, end of period	$	31,987,091	—	$	31,987,091