Financial Performance - The net loss for the three months ended September 30, 2024, was $18,838,000, compared to a net loss of $10,658,000 for the same period in 2023, indicating a 77% increase in losses[12]. - The comprehensive loss for the three months ended September 30, 2024, was $18,802,000, up from $10,681,000 in the prior year[12]. - The company reported a net loss per common share of $1.39 for the three months ended September 30, 2024, compared to $1.27 for the same period in 2023[12]. - The net loss for the quarter ending September 30, 2024, was $18,838,000, compared to a net loss of $11,827,000 for the previous quarter[15]. - For the nine months ended September 30, 2024, the net loss was $37.9 million, up from $26.2 million in the same period of 2023, indicating a 44.6% increase in losses[104]. - For the three months ended September 30, 2024, the company reported a net loss of $18.8 million, compared to a net loss of $10.7 million for the same period in 2023, representing a 76.5% increase in losses year-over-year[104]. Cash and Liquidity - Cash and cash equivalents increased to $26,016,000 as of September 30, 2024, up from $12,894,000 at December 31, 2023, representing a 102% increase[10]. - The company has a significant cash runway, with existing cash and cash equivalents expected to fund planned operating expenses and capital expenditures[7]. - The company had $26.0 million in cash and cash equivalents at the end of the reporting period, which raises concerns about its ability to continue as a going concern[22]. - The company believes its cash and cash equivalents will be sufficient to fund operations into Q2 2025, but future funding needs are uncertain and depend on various factors[140]. - The company plans to address its liquidity issues through potential sales of common stock or other securities, debt financings, and strategic partnerships[22]. Assets and Liabilities - Total current assets rose to $30,646,000, compared to $16,348,000 at the end of 2023, marking an increase of 88%[10]. - Total liabilities increased significantly to $57,374,000 from $15,773,000, reflecting a growth of 264%[10]. - As of September 30, 2024, the total stockholders' equity was $161,355,000, with an accumulated deficit of $180,097,000[15]. - The company’s total liabilities included warrant liabilities of $23.18 million as of September 30, 2024[58]. - Total accrued expenses increased to $4.85 million as of September 30, 2024, up from $3.76 million at the end of 2023, driven by higher accrued research and development costs[68]. Research and Development - Research and development expenses for the three months ended September 30, 2024, were $7,208,000, slightly down from $7,264,000 in the same period of 2023[12]. - Research and development expenses for the nine months ended September 30, 2024, were $22.9 million, up 30% from $17.7 million in the same period of 2023[129]. - The company expects substantial increases in research and development expenses as it continues to invest in product candidate development and clinical trials[126]. - The company anticipates significant increases in research and development expenses as it advances its product candidates and seeks regulatory approvals[116]. Stock and Equity - The weighted average common shares outstanding increased to 13,582,345 for the three months ended September 30, 2024, from 8,376,384 in the prior year[12]. - The company issued 510,000 common shares from an At-the-Market offering, net of issuance costs of $517,000, resulting in an increase in additional paid-in capital by $1,075,000[15]. - The total common shares outstanding increased to 10,784,377 as of September 30, 2024, from 10,258,873 as of June 30, 2024[15]. - The company completed a merger resulting in the issuance of 5,375,751 shares of Angion common stock to Former Elicio stockholders, with a total of 8,387,025 shares outstanding post-merger[55]. - The company raised approximately $6.0 million from a private placement in March 2024, which is part of its strategy to secure additional funding[109]. Financing Activities - The company closed a public offering in July 2024, generating net proceeds of $10.9 million from the sale of 500,000 shares and 1,800,000 pre-funded warrants[62]. - The company entered into a 3% Senior Secured Convertible Promissory Note financing of $20.0 million in August 2024, with net proceeds of approximately $19.7 million after deducting debt issuance costs[100]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $42.1 million, an increase from $31.6 million in the same period of 2023[139]. Accounting and Compliance - The company is currently assessing the impact of recently issued accounting standards on its financial statements, including ASU No. 2023-07 and ASU No. 2023-09[52]. - The company has not reported any material changes in critical accounting policies during the nine months ended September 30, 2024, compared to previous disclosures[142]. - The company evaluated its Convertible Note and determined that certain features met the definition of a derivative, but the value was de minimis[143]. - The company follows ASC Topic 820 for fair value measurements, categorizing inputs into three levels, with Level 3 requiring the most judgment[38]. Future Outlook - The company may need to delay or limit product development if unable to raise additional funds through equity or debt financings[141]. - The company’s future funding requirements will depend on the progress and costs of research and development, clinical trials, and regulatory approvals[140]. - The company has not yet had any products approved for sale and does not expect to generate product sales until regulatory approval is obtained[118].
Elicio Therapeutics(ELTX) - 2024 Q3 - Quarterly Report