Financial Performance - Cash and cash equivalents decreased from $12.894 million at December 31, 2023, to $3.425 million at June 30, 2024, representing a decline of approximately 73%[9] - Total operating expenses for the three months ended June 30, 2024, were $10.924 million, up 40% from $7.777 million for the same period in 2023[12] - The net loss for the three months ended June 30, 2024, was $7.229 million, slightly improved from a net loss of $7.559 million for the same period in 2023[12] - The company reported a comprehensive loss of $7.197 million for the three months ended June 30, 2024, compared to a comprehensive loss of $7.561 million for the same period in 2023[12] - The net loss for the six months ended June 30, 2024, was $19,056,000, compared to a net loss of $15,586,000 for the same period in 2023[20] - The net loss for the three months ended June 30, 2024, was $7.2 million, compared to a net loss of $7.6 million for the same period in 2023, representing a decrease of approximately 4.4%[99] - For the six months ended June 30, 2024, the net loss was $19.1 million, an increase from $15.6 million in the same period of 2023, reflecting a rise of approximately 22.5%[109] Research and Development - Research and development expenses increased to $8.180 million for the three months ended June 30, 2024, compared to $4.944 million for the same period in 2023, reflecting a 65% increase[12] - The company anticipates that its research and development expenses will continue to increase significantly as it advances its lead product candidate, ELI-002, to late-stage clinical trials[116] - The company incurred $2.2 million in research and development expenses related to a grant agreement with the GI Research Foundation for the six months ended June 30, 2024[70] Cash Flow and Liquidity - Cash used in operating activities for the six months ended June 30, 2024, was $21,050,000, an increase from $17,614,000 in the prior year[20] - The company expects its cash and cash equivalents to be sufficient to fund operations into the second quarter of calendar year 2025, but acknowledges that projections may be incorrect[136] - The company plans to address its liquidity concerns through the sale of common stock or other securities, debt financings, and strategic partnerships[114] Stock and Equity - The company had 10,273,328 shares issued as of June 30, 2024, compared to 9,618,178 shares issued at December 31, 2023, reflecting an increase of approximately 6.8%[10] - The company issued 615,363 shares of common stock from an At-the-Market offering, net of issuance costs of $103,000[15] - The Company completed a reverse merger with Angion Biomedica Corp. on June 1, 2023, resulting in approximately 9.7 million shares outstanding, with Former Elicio equity holders owning 65.2% and Angion equity holders owning 34.8% on a fully diluted basis[22] Liabilities and Deficits - Total liabilities increased from $15.773 million at December 31, 2023, to $17.402 million at June 30, 2024, marking an increase of approximately 10.4%[10] - The accumulated deficit grew from $142.203 million at December 31, 2023, to $161.259 million at June 30, 2024, indicating an increase of approximately 13.4%[10] - As of June 30, 2024, the Company reported an accumulated deficit of $161.3 million and $3.4 million in cash and cash equivalents, raising substantial doubt about its ability to continue as a going concern[23] Financing Activities - The company raised approximately $6.0 million from a private placement in March 2024, with each Pre-Funded Warrant exercisable at $0.01 per share[102] - A public offering closed on July 1, 2024, generating net proceeds of approximately $10.9 million, with 500,000 shares sold at a combined offering price of $5.00 per share[105] - In August 2024, the company issued a 3% Senior Secured Convertible Promissory Note for $20.0 million, maturing on February 15, 2026[106] Accounting and Reporting - The Company’s financial statements have been prepared in accordance with U.S. GAAP and include the accounts of its wholly owned subsidiaries, Elicio Australia Pty Ltd. and ESC[24] - The Company has elected to account for stock-based awards based on their fair values, recognizing expenses on a straight-line basis over the requisite service period[49] - The company is classified as an emerging growth company and smaller reporting company, allowing it to delay the adoption of new accounting standards[140] Other Key Points - The company has not yet had any products approved for sale and does not expect to generate product sales until regulatory approvals are obtained[114] - The clinical pipeline includes ELI-002, currently in Phase 2 for mutant KRAS cancers, and ELI-007 and ELI-008 in preclinical studies for BRAF and TP53-driven cancers, respectively[110] - The company has raised aggregate net proceeds of $152.0 million since inception through various financing methods, including stock issuances and convertible notes[110]
Elicio Therapeutics(ELTX) - 2024 Q2 - Quarterly Report