Financial Performance - Total revenues for the three months ended June 30, 2024, were $1,169,000, representing a 53% increase from $763,000 in the same period of 2023[86]. - Total revenues for the six months ended June 30, 2024, were $2.4 million, a 21% increase from $2.0 million in the same period in 2023[93]. - Loss from operations improved by 44%, decreasing to $(2,308,000) in Q2 2024 from $(4,134,000) in Q2 2023[86]. - The net loss from continuing operations decreased by 45% to $4.6 million for the six months ended June 30, 2024, from $8.3 million in the same period in 2023[93]. Operating Expenses - Operating expenses decreased by 29% to $3,477,000 in Q2 2024 from $4,897,000 in Q2 2023, with general and administrative expenses dropping by 55%[86]. - Operating expenses for the three months ended June 30, 2024, were $3.5 million, a decrease from $4.9 million in the same period in 2023[89]. - Total operating expenses for the six months ended June 30, 2024, were $7.3 million, down 30% from $10.4 million in the same period in 2023[96]. - Operating expenses for the three and six months ended June 30, 2024 were $3.4 million and $7.2 million, respectively, compared to $4.9 million and $10.4 million in the prior year periods, indicating a decrease of approximately 30.6% and 30.6%[111]. Interest Income - Interest income increased significantly by 229% to $115,000 in Q2 2024 compared to $35,000 in Q2 2023[86]. - Interest income increased by 127% to $272,000 for the six months ended June 30, 2024, compared to $120,000 in the same period in 2023[93]. Grants and Revenue Recognition - The company recognized $0.7 million in revenue from the CPRIT grant for both Q2 2024 and Q2 2023, with additional revenue from FDA and NIH grants totaling $0.2 million and $0.2 million respectively in Q2 2024[87][88]. - The company has received a total of $13.1 million in grants from CPRIT to support the clinical investigation of MT-401, with $9.7 million received to date[107]. - The company recognizes revenue from grant income when qualifying costs are incurred, reflecting its critical accounting estimates[117]. Cash and Liquidity - Cash and cash equivalents as of June 30, 2024, were $7.8 million, down from $15.1 million as of December 31, 2023[101]. - As of June 30, 2024, the company had working capital of $9.7 million, down from $14.1 million as of December 31, 2023[111]. - The company expects its cash and cash equivalents will fund operations into the fourth quarter of 2025[100]. - The company expects its cash and cash equivalents as of June 30, 2024 to fund operating expenses and capital expenditures into Q4 2025, although this estimate is subject to change[111]. Organizational Changes - Organizational changes in 2023 included a reduction in headcount and the appointment of Dr. Juan Vera as President and CEO[82]. Product Development - The company is advancing two product candidates for clinical indications: MT-601 for lymphoma and pancreatic cancer, and MT-401-OTS for various indications[72]. Financing and Market Conditions - The company plans to fund operations and capital needs through equity and/or debt financing, which may dilute existing stockholders' ownership[113]. - High inflation and economic recession concerns have led to capital market volatility, potentially affecting the company's liquidity[114]. - The company may need additional funds sooner than planned to meet operational needs and capital requirements for product development and commercialization[111]. - The company is unable to estimate the actual amounts necessary for the development and commercialization of product candidates due to the early stages of clinical development[112]. Stock and Shareholder Matters - A reverse stock split of 1-for-10 was executed on January 26, 2023, reducing the total number of authorized shares from 300 million to 30 million[84]. - The company sold 8,178 shares under the ATM Agreement during the six months ended June 30, 2024, resulting in net proceeds of approximately $37,000 after agent commissions[115]. - The company has the right to sell up to $25 million of shares to Lincoln Park Capital Fund, LLC, but terminated this Purchase Agreement effective March 1, 2024[116].
Marker Therapeutics(MRKR) - 2024 Q2 - Quarterly Report