Pasithea Therapeutics (US:KTTA)2024-11-13 21:30Financial Performance - The company reported a net loss of $2,999,834 for the three months ended September 30, 2024, a decrease of 17.0% compared to a net loss of $3,612,590 for the same period in 2023[119]. - Net loss from continuing operations was $(10,726,923) for the nine months ended September 30, 2024, compared to $(10,476,484) for the same period in 2023[136]. - Other income, net decreased by approximately $172,000, or 97%, for the three months ended September 30, 2024, compared to the same period in 2023[132]. - Cash and cash equivalents decreased by approximately $7.0 million for the nine months ended September 30, 2024, compared to a decrease of approximately $13.5 million for the same period in 2023[136]. - Working capital decreased by approximately $5.0 million between December 31, 2023, and September 30, 2024, primarily due to cash used to fund operations[135]. Expenses - Research and development expenses were $1,581,376 for the three months ended September 30, 2024, a slight decrease of 2.7% from $1,624,766 in the prior year[119]. - General and administrative expenses decreased by 34.3% to $1,423,228 for the three months ended September 30, 2024, compared to $2,164,560 in the same period of 2023[119]. - General and administrative expenses decreased by approximately $779,000, or 13%, for the nine months ended September 30, 2024, compared to the same period in 2023[125]. - Research and development expenses increased by approximately $939,000, or 20%, for the nine months ended September 30, 2024, compared to the same period in 2023[129]. - The company expects general and administrative expenses to continue at lower levels in fiscal year 2024 compared to fiscal year 2023[126]. - The company anticipates an increase in research and development expenses in fiscal year 2024 primarily due to clinical development activities[130]. Clinical Development - The company is currently conducting a Phase 1 clinical trial for its lead candidate PAS-004 at four clinical sites in the U.S. and plans to open three additional sites in Eastern Europe by Q4 2024[110]. - The FDA cleared the IND for PAS-004 in December 2023, allowing the company to proceed with its Phase 1 multicenter trial[109]. - The company ceased development of the PAS-002 program for multiple sclerosis due to high costs and the availability of effective treatments[111]. - The company expects to incur significant operating losses and expenses as it advances its product candidates through development and clinical trials[113]. Funding and Capital - The company raised approximately $4.5 million from a securities purchase agreement in September 2024, selling pre-funded warrants and PIPE warrants[115]. - As of September 30, 2024, the company had approximately $9.4 million in operating bank accounts and money market funds[137]. - The company requires significant cash resources to execute its business plans and is dependent on obtaining additional working capital funding[137]. Market Conditions - Inflation has negatively impacted the company's costs, particularly in employee compensation and outside services, with expectations of continued pressure throughout 2024[120]. - A one-for-20 reverse stock split was executed on January 2, 2024, reducing the number of authorized shares from 495 million to 100 million[116].