Financial Performance - The company reported a net loss of $13.361 million for the three months ended June 30, 2024, a decrease of 28.4% compared to a net loss of $18.664 million for the same period in 2023[54]. - The company reported a net loss attributable to Rani Therapeutics Holdings, Inc. of $6.805 million for the three months ended June 30, 2024, down 26.9% from $9.303 million in the same period in 2023[54]. - The company reported a net loss of $28.1 million for the six months ended June 30, 2024, with an accumulated deficit of $87.2 million[58]. - The company reported a net loss of $28.1 million for the six months ended June 30, 2024, compared to a net loss of $35.5 million for the same period in 2023, indicating a reduction in losses[62][64]. Cash and Securities - As of June 30, 2024, the company's cash, cash equivalents, and marketable securities totaled $30.9 million[53]. - Cash, cash equivalents, and marketable securities totaled $30.9 million as of June 30, 2024, down from $48.5 million as of December 31, 2023[61]. - Total cash, cash equivalents, and marketable securities decreased to $30.9 million as of June 30, 2024, down from $48.5 million at the end of 2023[62]. - The company had a net decrease in cash, cash equivalents, and restricted cash equivalents of $1.35 million for the six months ended June 30, 2024, compared to a decrease of $19.5 million in the prior year[63]. Expenses - Research and development expenses decreased by 44.8% to $6.115 million for the three months ended June 30, 2024, compared to $11.086 million for the same period in 2023[54]. - The total operating expenses for the three months ended June 30, 2024, were $12.524 million, down 31.5% from $18.294 million in the same period in 2023[54]. - The company reported a decrease in general and administrative expenses by 11.1% to $6.409 million for the three months ended June 30, 2024, compared to $7.208 million for the same period in 2023[54]. - Research and development expenses decreased by $7.1 million to $13.7 million for the six months ended June 30, 2024, compared to $20.8 million for the same period in 2023, primarily due to lower compensation costs and reduced third-party services[57]. - General and administrative expenses decreased by $1.2 million to $6.5 million for the six months ended June 30, 2024, compared to the same period in 2023, mainly due to lower compensation costs from workforce reduction[57]. - Stock-based compensation expense for the six months ended June 30, 2024 was $8.0 million, down from $9.6 million in the same period of 2023[62][64]. Future Outlook - The company expects to continue incurring losses and will need to raise substantial additional funds to complete the development of the RaniPill platform[53]. - The company expects to continue incurring losses and has substantial doubt regarding its ability to continue as a going concern for the next year[58]. - The company has not yet generated any revenue from sales of a commercial product and does not have any products approved for sale[51]. - The company has not generated any commercial product revenue to date and will require additional capital to fund ongoing development activities[60]. Agreements and Developments - The company entered into a definitive agreement with ProGen for the co-development of RT-114, sharing a 50/50 cost and revenue arrangement[53]. - The company plans to initiate clinical testing of the RaniPill HC in the second half of 2024[51]. Capital and Financing - In July 2024, the company raised approximately $10.0 million through a Securities Purchase Agreement with an institutional investor[59]. - The company is subject to various covenants under its Loan Agreement, and compliance was maintained as of June 30, 2024[59]. - The company has agreed to restrictions on issuing new shares for 60 days following the closing of the Offering, which may limit its ability to raise additional capital[61]. Operational Efficiency - Net cash used in operating activities for the six months ended June 30, 2024 was $18.4 million, a decrease from $24.5 million in the same period of 2023, reflecting improved operational efficiency[62][64]. - Net cash provided by investing activities for the six months ended June 30, 2024 was $16.8 million, significantly higher than $4.9 million in the prior year, primarily due to $38.6 million in proceeds from maturities of marketable securities[63][64]. Internal Controls and Compliance - The company remains classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of extended compliance periods for new accounting standards[66][67]. - The company’s disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of June 30, 2024[68]. - There have been no changes in internal control over financial reporting that materially affected the company's financial reporting during the three months ended June 30, 2024[69].
Rani Therapeutics (RANI) - 2024 Q2 - Quarterly Report