Revenue Performance - For the three months ended September 30, 2024, the company recognized $0.9 million in revenue, an increase from $0.7 million in the same period of 2023, primarily due to expanded CDMO services [153]. - For the nine months ended September 30, 2024, the company recognized $5.2 million in revenue, significantly up from $2.1 million in the same period of 2023, driven by expanded biomanufacturing operations [160]. Cost of Revenues - Cost of revenues for the three months ended September 30, 2024, was $0.9 million, up from $0.5 million in 2023, attributed to expanded service offerings and milestone work on multiple contracts [154]. - Cost of revenues for the nine months ended September 30, 2024, was $2.6 million, compared to $1.5 million in 2023, reflecting increased labor and material costs [161]. Research and Development Expenses - Research and development expenses decreased to $4.3 million for the three months ended September 30, 2024, from $5.2 million in 2023, with CDMO expenses increasing by $0.2 million [155]. - Research and development expenses for the nine months ended September 30, 2024, totaled $11.8 million, down from $16.6 million in 2023, with significant reductions in clinical trial expenses [162]. Selling, General and Administrative Expenses - Selling, general and administrative expenses were $5.6 million for the three months ended September 30, 2024, down from $6.1 million in 2023, primarily due to reduced consultant services and marketing expenses [157]. - Selling, general and administrative expenses decreased by $3.9 million to $15.7 million for the nine months ended September 30, 2024, compared to $19.6 million in 2023 [164]. Financing Activities - The company completed a public offering on August 19, 2024, raising approximately $14.4 million through the sale of 2,428,000 shares of common stock and pre-funded warrants [140]. - The company raised $22.3 million in net cash from financing activities during the nine months ended September 30, 2024, compared to a net cash outflow of $2.8 million in 2023 [176]. Cash Flow and Operating Activities - Net cash used in operating activities decreased by $9.8 million to $20.7 million for the nine months ended September 30, 2024, compared to $30.5 million in 2023 [174]. - Cash and cash equivalents and short-term investments were approximately $4.8 million as of September 30, 2024, but decreased to approximately $0.8 million by November 14, 2024 [167]. Accumulated Deficit and Going Concern - The accumulated deficit increased to approximately $277.8 million as of September 30, 2024, up from $254.4 million as of December 31, 2023 [169]. - The company anticipates needing to raise capital to sustain operations due to substantial doubt about its ability to continue as a going concern within one year after the financial statements are issued [167]. - The company has not generated significant revenue from operations and does not anticipate sufficient revenue in the near term to sustain operations through December 2024 [167]. Operational Developments - The company commenced operations at its San Antonio facility in September 2022, enhancing its biomanufacturing capabilities [138]. - A 1-for-200 reverse stock split was executed on July 17, 2024, reducing the number of outstanding shares from 98,827,831 to 494,138 [142]. Other Financial Metrics - Total non-operating expense was $0.8 million for the nine months ended September 30, 2024, compared to $0.2 million in 2023 [166]. - The change in fair value of contingent earn-out receivable was $1.2 million for the nine months ended September 30, 2024, due to an increase in expected value from a new contract [165]. - The company expects to incur significant commercialization expenses related to its CDMO business and manufacturing facility operations [170].
Scorpius Holdings(SCPX) - 2024 Q3 - Quarterly Report