This Annual Report on Form 10-K contains, in addition to historical information,
certain forward-looking statements about our expectations, beliefs or intentions
regarding, among other things, our business, financial condition, results of
operations, strategies or prospects. You can identify forward-looking statements
by the fact that these statements do not relate strictly to historical or
current matters. Rather, forward-looking statements relate to anticipated or
expected events, activities, trends or results as of the date they are made.
Because forward-looking statements relate to matters that have not yet occurred,
these statements are inherently subject to risks and uncertainties that could
cause our actual results to differ materially from any future results expressed
or implied by the forward-looking statements. Many factors could cause our
actual activities or results to differ materially from the activities and
results anticipated in forward-looking statements. These factors include those
set forth below as well as those contained in "Item 1A - Risk Factors" of this
Annual Report on Form 10-K. We do not undertake any obligation to update
forward-looking statements, except as required by applicable law. These
forward-looking statements reflect our views only as of the date they are made
with respect to future events and financial performance.
Overview
We previously were engaged in the development, manufacture and marketing of
non-invasive, whole body periodic acceleration ("WBPA") therapeutic platforms,
which are motorized platforms that move a subject repetitively head to foot. The
Company discontinued operations in May 2019, accordingly, certain assets,
liabilities and expenses are classified as discontinued operations.
Critical Accounting Policies and Estimates
Our discussion and analysis of our financial condition and results of operations
are based upon our consolidated financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United
States. The preparation of these consolidated financial statements requires us
to make estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses, and related disclosure of contingent assets
and liabilities. On an on-going basis, we evaluate our estimates, including
those related to income taxes and contingencies. We base our estimates on
historical experience and on various other assumptions that are believed to be
reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are
not readily apparent from other sources. A more detailed discussion on the
application of these and other accounting policies can be found in Note 2 in the
Notes to the Consolidated Financial Statements set forth in Item 8 of this
Annual Report on Form 10-K. While we believe that the factors we evaluate
provide us with a meaningful basis for establishing and applying sound
accounting policies, we cannot guarantee that the results will always be
accurate. Since the determination of these estimates requires the exercise of
judgment, actual results could differ from such estimates.
7
Results of Operations
We have discontinued operations in May 2019. The Company is assessing potential
mergers, acquisitions and strategic collaborations.
Year Ended July 31, 2022 Compared to Year Ended July 31, 2021
General and administrative costs and expenses. General and administrative
("G&A") costs and expenses was $159,000 for the year ended July 31, 2022, as
compared to $158,000 for the year ended July 31, 2021. This $1,000 net increase
was primarily associated with professional fees incurred in the year ended July
31, 2022.
Total operating costs and expenses. Total operating costs and expenses from
continuing operations was $159,000 for the year ended July 31, 2022, as compared
to $158,000 for the year ended July 31, 2021. This $1,000 increase is primarily
attributable to G&A noted above.
Interest expense. Net interest expense was $14,000 for the year ended July 31,
2022, as compared to $0 for the year ended July 31, 2021. The interest expense
is related to the Promissory Notes described in Note 11 to the accompanying
consolidated financial statements.
Net loss. Net loss was $173,000 for the year ended July 31, 2022, as compared to
$158,000 for the year ended July 31, 2021. This $15,000 increase is primarily
attributable to interest expense as noted above.
Liquidity and Capital Resources
Our operations have been primarily financed through private sales of our equity
securities and advances under credit facilities previously available to us.
At July 31, 2022, we had cash of $15,000 and negative working capital of
approximately $249,000. We expect that our existing funds will not be sufficient
to support our current operations over the next twelve months. No assurance can
be given that such additional financing will be available on acceptable terms or
at all. Our ability to sell additional shares of our stock and/or borrow cash
could be materially adversely affected by the economic uncertainty in the global
equity and credit markets. Current economic conditions have been, and continue
to be, volatile, and continued instability in these market conditions may limit
our ability to access the capital necessary to fund and grow our business and to
replace, in a timely manner, maturing liabilities.
Net cash used in operating activities increased to $190,000 for the year ended
July 31, 2022 as compared to $148,000 for the year ended July 31, 2021. This
$42,000 increase was principally due to the increase in the operating loss
offset by an increase in cash used by accounts payable and accrued expenses.
On October 4, 2021, the Company entered into two Promissory Notes in the
principal amount of $75,000 each with Frost Gamma Investments Trust (the "Frost
Gamma Note"), a trust controlled by Dr. Phillip Frost and with Jane Hsiao,
Ph.D., the Company's Chairman and Interim CEO (the "Hsiao Note"), both which
beneficially own in excess of 10% of NIMS' common stock. The interest rate
payable by NIMS on the Frost Gamma Note and Hsiao Note is 11% per annum, payable
on the maturity date of October 4, 2023 (the "Maturity Date"). The Frost Gamma
Note and Hsiao Note may be prepaid in advance of the Maturity Date without
penalty.
On September 16, 2022, the Company entered into two Promissory Notes in the
principal amount of $75,000 each with Frost Gamma Investments Trust (the "Frost
Gamma Note 2"), a trust controlled by Dr. Phillip Frost and with Jane Hsiao,
Ph.D., the Company's Chairman and Interim CEO (the "Hsiao Note 2"), both which
beneficially own in excess of 10% of NIMS' common stock. The interest rate
payable by NIMS on the Frost Gamma Note 2 and Hsiao Note 2 is 11% per annum,
payable on the Maturity Date. The Frost Gamma Note 2 and Hsiao Note 2 may be
prepaid in advance of the Maturity Date without penalty.
The Company plans include assessing potential mergers, acquisitions and
strategic collaborations. We will need to raise additional capital. There can be
no assurance that we will be able to raise additional capital on terms
acceptable to us or at all.
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