Hepion Pharmaceuticals(HEPA) - 2024 Q2 - Quarterly Report

Financial Performance - The company has an accumulated deficit of $231.4 million as of June 30, 2024, with no revenue generated from operations since inception [95]. - The net loss for the six months ended June 30, 2024, was $6.8 million, significantly improved from a net loss of $27.3 million in the same period of 2023 [101]. - Net cash used in operating activities was $20.7 million for the six months ended June 30, 2023, primarily due to a net loss of $27.3 million [111]. - The company reported net cash used in operating activities of $14.5 million for the six months ended June 30, 2024, primarily due to a net loss of $9.9 million [110]. Expenses - Research and development expenses for the six months ended June 30, 2024, were $9.7 million, a decrease of $12.0 million compared to $21.7 million in the same period of 2023 [102]. - General and administrative expenses for the six months ended June 30, 2024, were $4.0 million, down from $5.7 million in 2023, reflecting a decrease of $1.7 million [102]. - The company incurred a one-time restructuring charge of approximately $0.7 million in Q4 2023 as part of a strategic restructuring plan [94]. Working Capital and Cash Position - As of June 30, 2024, the company had working capital of $4.5 million, a decrease of $7.7 million from $12.2 million as of December 31, 2023 [109]. - As of June 30, 2023, the company had $30.5 million in cash [111]. - Changes in working capital accounts positively impacted cash by $5.8 million, driven by a decrease in prepaid expenses and an increase in accounts payable [111]. Clinical Trials and Product Development - The company has initiated wind-down activities in its ASCEND-NASH clinical trial as of April 19, 2024 [94]. - The Data and Safety Monitoring Board approved the continuation of the ASCEND-NASH Phase 2b study without modifications in June 2023 [94]. - The company has no products approved for commercial sale and does not expect to have such products for several years [99]. Financing Activities - Net cash provided by financing activities was $1.8 million for the six months ended June 30, 2024, mainly from proceeds received from the exercise of warrants [111]. - There was no cash provided by or used in financing activities for the six months ended June 30, 2023 [111].