Eterna Therapeutics (US:ERNA)2024-11-12 22:16Financing Activities - The company closed a private placement on October 29, 2024, selling 1,401,994 shares and pre-funded warrants for approximately $1.1 million in gross proceeds[147]. - The company issued 38,302,029 shares in exchange for approximately $8.7 million in convertible notes and warrants, with an exercise price of $1.43 per share[148]. - The company converted approximately $3.0 million of bridge notes into 6,244,237 shares at a conversion price of $0.50[152]. - The company regained compliance with Nasdaq listing rules after issuing over 45.9 million shares, resulting in stockholders' equity exceeding $2.5 million[163]. Revenue and Income - Revenue for the three months ended September 30, 2024, was $487 million, a significant increase of $436 million compared to $51 million for the same period in 2023[172]. - Gross income for the three months ended September 30, 2024, was $547 million, compared to a loss of $69 million in the same period in 2023, reflecting a change of $616 million[172]. - The company recognized approximately $0.5 million in previously deferred revenue related to the Lineage Agreement for the three and nine months ended September 30, 2024[165]. Expenses - Research and development expenses include costs for company-sponsored activities and support for investigator-sponsored research, with major components being salaries, supplies, and preclinical study costs[167][168]. - Research and development expenses decreased by approximately $0.4 million for the three months ended September 30, 2024, totaling $1,001 million, down from $1,387 million in the same period in 2023[175]. - General and administrative expenses for the three months ended September 30, 2024, were $3,381 million, a decrease of $668 million compared to $4,049 million for the same period in 2023[176]. - Total research and development expenses for the nine months ended September 30, 2024, were $3,446 million, down from $4,560 million in the same period in 2023, a decrease of $1.1 million[175]. - The total operating expenses for the three months ended September 30, 2024, were $2,806 million, a decrease of $2,630 million compared to $5,436 million for the same period in 2023[172]. Net Loss and Financial Position - The net loss for the three months ended September 30, 2024, was $26.6 million, compared to a net loss of $5.6 million for the same period in 2023, reflecting an increase in loss of $21 million[172]. - For the nine months ended September 30, 2024, the company incurred a net loss of approximately $38.8 million, compared to a net loss of $15.7 million for the same period in 2023, indicating a significant increase in losses[190]. - As of September 30, 2024, the company had cash of approximately $4.3 million and an accumulated deficit of approximately $225.8 million[190]. - The company anticipates that it will not have sufficient capital to fund operations for the next 12 months, raising concerns about its ability to continue as a going concern[193]. Other Financial Metrics - A loss on extinguishment of debt was recorded at $22.4 million for the three and nine months ended September 30, 2024, with no similar transaction in the prior year[181]. - The company recognized an increase in interest expense of approximately $3.2 million for the nine months ended September 30, 2024, primarily due to convertible note financings[187]. - The net cash used in operating activities decreased by approximately $3.5 million for the nine months ended September 30, 2024, compared to the same period in 2023[199]. - The company recognized a credit of $0.1 million for the change in the fair value of contingent consideration liability for both the nine months ended September 30, 2023, and 2024[185]. Strategic Initiatives - The company plans to complete IND enabling studies and submission for its lead product ERNA-101 by 2026, focusing on triple negative breast cancer and platinum-resistant ovarian cancer[146]. - The company is actively seeking strategic partnerships to co-develop or out-license therapeutic assets to expand developmental opportunities[146]. - The company entered into an Exclusive License and Collaboration Agreement with Factor Bioscience, committing to pay $0.2 million per month for the first twelve months[154][156]. Legal and Compliance - No changes in internal control over financial reporting during the most recent fiscal quarter that materially affected internal controls[211]. - Company is not party to any material legal proceedings, except those described in the financial statements[212]. Lease and Property - The company recognized a gain on lease termination of approximately $1.6 million and expects to save about $72 million in future rental payments due to the termination of a sublease[161]. - The company used approximately $0.3 million for property and equipment purchases during the nine months ended September 30, 2024, with no investing activities in the same period of 2023[200].