On May 18, 2021 Enveric Biosciences, Inc. (NASDAQ: ENVB) ("Enveric" or the "Company"), a patient-first biotechnology company developing novel cannabinoid (CBD) medicines to improve quality of life for cancer patients, reported its financial results for the three months ended March 31, 2021 (Press release, Enveric Biosciences, MAY 18, 2021, View Source [SID1234580230]).

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David Johnson, Chairman and Chief Executive Officer, said, "Thus far in 2021, we continued to focus on making progress on our pipeline of support care therapies, bolster our management team and Scientific Advisory Board with talented industry experts and maintain a healthy balance sheet, which as of March 31, 2021 had approximately $23 million in cash. As we approach the second half of this year, we expect to receive approval and initiate two critical Phase I/II trials in Glioblastoma Multiforme and Radiation Dermatitis. In parallel, we opportunistically continue to evaluate strategic investments similar to our Diverse Biotech license for five molecules, exclusive supply agreement with PureForm and other undervalued synergistic investments."

Corporate Updates:

Appointed Arash Asher M.D., Director of Cancer Rehabilitation and Survivorship to Cedars-Sinai Cancer Center, to Enveric’s Scientific Advisory Board. Enveric Biosciences held its first Scientific Advisory Board meeting on April 25, 2021, during which the Board discussed and reviewed Enveric’s radiodermatitis and glioblastoma clinical development plans in detail.
Appointed Carter Ward as Chief Financial Officer, effective May 15, 2021. Mr. Ward brings extensive public company leadership experience in life sciences, SEC reporting and the capital markets. Mr. Ward is replacing John Van Buiten, who is expected to remain in a consulting role with the company, supporting Mr. Ward both during the transition and moving forward.
Enhanced Board of Directors with the appointment of Dr. Douglas D. Lind. Dr. Lind’s extensive and diverse background, working in both healthcare and finance, will add tremendous value in helping Enveric bring better treatment options to cancer patients in need.
On March 10, 2021, the Company also received $3,267,245 from the exercise of warrants to purchase 851,099 shares of common stock.
Financial Results for the Three Months Ended March 31, 2021:

Net cash used in operating activities was $3,162,278 during the three months ended March 31, 2021, which consisted primarily of a net loss of $3,250,711, offset by amortization of intangibles of $136,640, other income from the change in fair value of warrant liability of $3,813,000, stock-based compensation expense of $3,591,565, inducement expense related to conversion of warrants of $298,714, increases in prepaid expenses and other current assets for $66,208, offset by increases in accounts payable and accrued liabilities of $59,278.

Enveric’s operating expenses increased to $6,764,997 for the quarter ending March 31, 2021 from $836,702 for the three months ended March 31, 2020. This change was primarily driven by an increase in general and administrative fees of $5,770,343 and an increase in research and development costs of $157,952. The increase in general and administrative fees was primarily driven by stock-based compensation of $3,591,565, stock option modification expense of $298,714, and an increase in public company compliance costs of $582,667.

Net cash provided by financing activities was $24,881,733 during the three months ended March 31, 2021, which included $21,614,488 in proceeds from the sale of common stock, net of offering costs, and $3,267,245 in proceeds from warrant exercises. Cash as of March 31, 2021 totaled $22,657,150 and the Company currently has no debt.

As of May 13, 2021, the Company had 21,390,290 shares of common stock outstanding.