Financial Performance - The company incurred a net loss of $25.4 million for the nine months ended September 30, 2024, with an accumulated deficit of $223.2 million [86]. - Net loss for Q3 2024 was $8.5 million, an improvement from a net loss of $9.9 million in Q3 2023, reflecting a reduction of 14.4% [100]. - Grant revenue for the nine months ended September 30, 2024, was $1.9 million, up from $0.5 million in the same period of 2023, a 180% increase [110]. - Total research and development expenses for the nine months ended September 30, 2024, were $19.1 million, down from $23.1 million in 2023, a decrease of 17.2% [111]. - Interest income for the nine months ended September 30, 2024, was $0.9 million, down from $1.8 million in 2023, a decrease of 50% [118]. - Total operating expenses for Q3 2024 were $9.2 million, down from $10.6 million in Q3 2023, a decrease of 13.2% [100]. - Research and development expenses for Q3 2024 were $6.4 million, a decrease of $1.0 million or 13.8% compared to $7.5 million in Q3 2023 [102]. Cash and Investments - As of September 30, 2024, Oncternal had cash, cash equivalents, and short-term investments totaling $14.6 million and no debt [85]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $20.2 million, a decrease from $25.7 million in 2023, reflecting a reduction of 21.5% [122]. - Net cash provided by investing activities for the nine months ended September 30, 2024, was $26.7 million, a significant increase from $2.5 million in the same period of 2023 [123]. - Net cash used in financing activities was $0.1 million for the nine months ended September 30, 2024, compared to net cash provided of $1.1 million in 2023 [124]. Strategic Decisions - Oncternal Therapeutics announced the discontinuation of clinical trials for ONCT-534 and ONCT-808, and is exploring strategic alternatives to maximize asset value for stockholders [81]. - The company is considering options such as asset sales, out-licensing, or mergers as part of its strategic alternatives evaluation [81]. - General and administrative expenses are expected to fluctuate based on the Board's decisions regarding strategic alternatives [98]. - There is substantial doubt about Oncternal’s ability to continue as a going concern for the next twelve months without additional funding or collaborations [90]. Research and Development - Research and development expenses are expected to significantly decrease as clinical activities are discontinued, although some expenses will continue for trial closing costs and ongoing nonclinical activities [87][95]. - The NIH has awarded Oncternal grants totaling up to $4.1 million to support preclinical activities for ONCT-534 and ONCT-216 programs [92]. - Grant revenue for Q3 2024 was $0.5 million, up from $0.2 million in Q3 2023, representing a 150% increase due to NIH grant activities [101]. Obligations and Estimates - The company has contractual obligations related to license agreements, with payment obligations contingent upon achieving specified development, regulatory, and commercial milestones [126]. - The company estimates accrued research and development expenses based on contracts and quotations, which may result in uneven payment flows due to varying financial terms [130]. - The company is subject to potential adjustments in reported expenses if the actual timing of services or level of effort varies from estimates [131]. Public Offering and Float - As of September 30, 2024, the company's public float was calculated to be less than $75.0 million, limiting future primary public offerings to one-third of the public float under SEC regulations [125].
Oncternal Therapeutics(ONCT) - 2024 Q3 - Quarterly Report