Financial Performance - Revenue for the three months ended June 30, 2024, was $704,848, compared to $1,405,281 for the same period in 2023, representing a decrease of approximately 50%[7] - Gross profit for the six months ended June 30, 2024, was $289,716, down from $1,115,565 in the previous year, indicating a significant decline[7] - Net loss for the three months ended June 30, 2024, was $(14,306,704), compared to a net loss of $(6,865,270) for the same period in 2023, which is an increase in loss of approximately 108%[7] - The company reported a total comprehensive loss of $(14,230,110) for the three months ended June 30, 2024, compared to $(6,865,270) for the same period in 2023, reflecting an increase in comprehensive loss of approximately 107%[7] - For the six months ended June 30, 2024, Onconetix reported a net loss of $25,425,276, compared to a net loss of $9,711,914 for the same period in 2023, indicating a significant increase in losses[10] - The net loss for the three months ended June 30, 2024, was approximately $14.3 million, compared to a net loss of $6.9 million in the same period in 2023, reflecting an increase of 108.4%[98] - The company reported a net loss of $14.3 million and $25.4 million for the three and six months ended June 30, 2024, respectively, with an accumulated deficit of $82.2 million[128] Assets and Liabilities - Current assets decreased from $5,838,271 to $2,035,448, a decline of approximately 65.2%[5] - Total assets decreased from $87,518,032 to $59,463,955, a decrease of approximately 32.0%[5] - Stockholders' equity decreased from $5,295,114 to $3,169,727, a decline of about 40.2%[6] - The balance of accumulated deficit as of June 30, 2024, was $(82,211,470), compared to $(56,786,194) at December 31, 2023, indicating an increase in deficit of approximately 45%[9] - As of June 30, 2024, the company had cash of approximately $930,541, down from $9,222,647 at the end of June 2023, highlighting a cash decrease of approximately 90% year-over-year[10] - The working capital deficit stood at approximately $18.6 million as of June 30, 2024, with an accumulated deficit of approximately $82.2 million[13] - As of June 30, 2024, the company had total current liabilities of approximately $20.6 million, including accounts payable of approximately $3.2 million and notes payable primarily due to Veru[133] Impairments and Expenses - Impairment of goodwill for the six months ended June 30, 2024, was $15,453,000, compared to $10,261,000 for the same period in 2023, showing an increase of approximately 51%[7] - The Company recorded an impairment loss of approximately $10.3 million related to goodwill and approximately $1.2 million on assets acquired from the ENTADFI acquisition during the three months ended June 30, 2024[102] - Total operating expenses for the three months ended June 30, 2024, were $13,715,735, compared to $6,649,600 in the same period of 2023, reflecting an increase of approximately 106%[7] - Total operating expenses for the six months ended June 30, 2024, increased by approximately $15.5 million compared to $9.5 million in the same period in 2023, marking a 163.1% increase[105] Strategic Focus and Risks - The company is focused on commercializing Proclarix and integrating assets from Proteomedix AG[4] - Future financial performance is subject to various risks, including the need for substantial additional capital[4] - The company is reliant on third parties for manufacturing and distribution, which poses potential risks[4] - Market acceptance of products and competition from existing therapies are critical for future growth[4] - The company has paused commercialization of ENTADFI and is exploring strategic alternatives, including a potential sale of the ENTADFI assets, due to cash constraints[11] - The company is considering strategic options for ENTADFI, including a potential sale or abandonment, as there is currently no plan to commercialize the product[134] Funding and Capital Needs - The company anticipates requiring significant additional capital in the short-term to fund ongoing operations and satisfy existing obligations[115] - Management's plans for funding include generating product revenue from Proclarix sales, which are still subject to successful commercialization[113] - The company plans to secure additional funding through equity or debt financings, but currently has no commitments in place for further financing[130] - If stockholder approval is not obtained by January 1, 2025, the Series B Convertible Redeemable Preferred Stock could be redeemable for approximately $41.9 million[113] Compliance and Regulatory Issues - The company reported stockholders' equity of $1,404,476 for the fiscal year ended December 31, 2023, which is below the Nasdaq minimum requirement of $2,500,000[137] - The company has until September 16, 2024, to regain compliance with the Nasdaq Bid Price Rule after receiving a notice of non-compliance due to a closing bid price below $1.00 per share[137] - The company has until November 4, 2024, to regain compliance with the Minimum Stockholders' Equity Requirement after submitting a compliance plan to Nasdaq[137] Operational Challenges - The company has incurred net losses since inception and expects to continue incurring losses, with significant fluctuations based on research and development activities[89] - There is substantial doubt about the company's ability to continue as a going concern within one year from the issuance of the financial statements[113] - The company has developed a remediation plan to address material weaknesses in internal controls, including the termination of the accounting employee involved in credit card misuse[125]
Blue Water Biotech(BWV) - 2024 Q2 - Quarterly Report