Clinical Development - OS Therapies achieved full enrollment of 41 patients in the clinical study for OST-HER2 by October 2023, with topline results expected in Q4 2024[136]. - Research and development expenses are expected to increase substantially as OST-HER2 and OST-tADC advance into clinical development[150]. - The company intends to seek regulatory approval for OST-HER2 in 2025 if clinical results are successful[136]. Financial Performance - No revenues were recognized for the nine months ended September 30, 2024, or the year ended December 31, 2023[146]. - The net loss available to common shareholders for the three months ended September 30, 2024 was approximately $2.9 million, compared to $2.0 million for the same period in 2023[160]. - For the nine months ended September 30, 2024, the company reported a net loss of approximately $5.9 million, compared to $6.4 million for the same period in 2023[170]. - Cash used in operating activities for the nine months ended September 30, 2024 was approximately $4.9 million, compared to $2.1 million for the same period in 2023[174]. Expenses - General and administrative expenses are anticipated to rise due to increased headcount and costs associated with operating as a public company[152]. - For the three months ended September 30, 2024, research and development expenses were approximately $1.2 million, a significant increase from $0.5 million for the same period in 2023[160]. - General and administrative expenses for the nine months ended September 30, 2024 were approximately $1.9 million, compared to $1.0 million for the same period in 2023[168]. Stock and Financing - The Series A preferred stock was converted into common stock on a 1:1 basis in February 2024[155]. - The company raised $6.4 million in gross proceeds from its initial public offering on August 2, 2024, converting all outstanding convertible notes into common stock[172]. - The company raised a total of $19,186,520 from accredited investors through seven separate private financing transactions involving convertible notes from July 2018 to April 2024[179]. Convertible Notes - Group A Convertible Notes had an aggregate principal amount of $1,154,000 with a 10% interest rate, maturing on October 31, 2024, and converted into common stock at a price ranging from $0.39 to $1.97 per share[182][183]. - Group B Convertible Notes totaled $5,154,000 with a 6% interest rate, also maturing on October 31, 2024, and converted at a price of $1.31 per share[184][185]. - The Bridge Notes (Groups D, E, and F) had a total principal amount of $6,533,500 with a 6% interest rate, maturing on October 31, 2024, and converted at a price of $2.00 per share[189][190]. Tax and Losses - The company has not recorded income tax benefits for net operating losses or research and development tax credits due to uncertainty in realizing benefits[156]. - As of December 31, 2023, the company had U.S. federal net operating loss carry forwards of approximately $16.3 million, which can offset future taxable income[157]. Agreements and Obligations - The company entered into a licensing agreement with Advaxis, Inc., requiring a total payment of $1,550,000 for the License Commencement Payment and milestone payments totaling $2,925,000 as of September 30, 2024[197][198]. - The company has contractual obligations with CDMOs and CROs for preclinical research studies, which are generally cancellable[196]. - The company has not engaged in any off-balance sheet arrangements during the reported periods[209]. Milestone Payments - Milestone payments to BlinkBio include $375,000 for commencement of a toxicology study, $1,500,000 for completion of a Phase I clinical trial, and $12,000,000 for regulatory approval in the U.S. or EU[204]. - Cumulative net sales of all licensed products are expected to exceed $20,000,000, with milestone payments of $5,000,000 for exceeding $50,000,000 and $10,000,000 for exceeding $100,000,000[199]. - The aggregate amount of milestone payments to BlinkBio for milestones 2 through 6 cannot exceed $22,375,000[204].
OS Therapies Incorporated(OSTX) - 2024 Q3 - Quarterly Report