Revenue and Profitability - Revenue for the three months ended September 30, 2024, was $406,859, compared to $0 for the same period in 2023, representing a significant increase[22]. - Gross profit for the nine months ended September 30, 2024, was $395,130, with total operating expenses of $27,738,007, leading to a loss from operations of $27,342,877[22]. - The net loss for the three months ended September 30, 2024, was $3,827,405, compared to a net loss of $5,346,908 for the same period in 2023, indicating an improvement[22]. - The net loss for the nine months ended September 30, 2023, was $(5,346,908), compared to a net loss of $(34,435,322) for the same period in the previous year[24]. - The company reported a net loss of $29,252,681 for the nine months ended September 30, 2024, compared to a net loss of $15,058,822 for the same period in 2023[28]. Assets and Liabilities - Total current assets decreased to $1,047,939 as of September 30, 2024, from $5,838,271 as of December 31, 2023[19]. - Total liabilities decreased slightly to $20,896,798 as of September 30, 2024, from $21,877,471 as of December 31, 2023[19]. - The company reported an accumulated deficit of $86,038,875 as of September 30, 2024, compared to $56,786,194 as of December 31, 2023[19]. - The company had cash of approximately $341,495, down from $7,653,975 at the end of the previous period[28]. - The company has a working capital deficit of approximately $16.3 million and an accumulated deficit of approximately $86.0 million as of September 30, 2024[41]. Stockholder Equity and Shares - Total stockholders' equity increased to $41,022,620 as of September 30, 2024, from $1,404,476 as of December 31, 2023[19]. - The weighted average number of common shares outstanding for the three months ended September 30, 2024, was 1,306,146, compared to 438,039 for the same period in 2023[22]. - The company had a total common stock amount of $119,563,869 as of September 30, 2024, reflecting an increase from previous periods[24]. - As of September 30, 2024, the Company had 8,326,281 shares of common stock issued, a significant increase from 571,033 shares as of December 31, 2023[195]. Expenses and Cash Flow - Research and development expenses for the three months ended September 30, 2024, were $109,365, down from $219,238 for the same period in 2023[22]. - The company incurred approximately $9.6 million in cash used for operating activities during the nine months ended September 30, 2024[41]. - The company recorded a net cash used in investing activities of $24,597 for the nine months ended September 30, 2024, compared to $9,864,613 for the same period in 2023[28]. Acquisitions and Impairments - On December 15, 2023, the company acquired 100% of Proteomedix AG, enhancing its capabilities in prostate cancer diagnosis[32]. - The company recorded an impairment charge of approximately $0.4 million on ENTADFI inventory during the quarter ended June 30, 2024[72]. - Goodwill decreased to $38.9 million as of September 30, 2024, from $55.7 million as of December 31, 2023, reflecting a cumulative impairment charge of $15.5 million for the nine months ended September 30, 2024[92][90]. - The Company recorded a loss on impairment for the $3.5 million deposit related to the WraSer acquisition due to the bankruptcy filing of WraSer[121]. Financing and Debt - The company entered into an Equity Financing Line of Credit (ELOC) on October 2, 2024, to address its cash flow needs[41]. - The Company executed three non-interest-bearing notes payable totaling $14.0 million, with maturity dates ranging from September 30, 2023, to September 30, 2024[152]. - The Company entered into a forbearance agreement with Veru, extending the due date for a $5.0 million note payable to March 31, 2025, with interest accruing at 10% per annum[155]. - The Company issued a non-convertible debenture of $5.0 million to a related party, with an interest rate of 4.0% per annum, originally due by June 30, 2024[171]. Strategic Initiatives - The company halted its commercialization of ENTADFI in early 2024 and is exploring strategic alternatives, including a potential sale of the ENTADFI assets[34]. - The company is working with an investment advisor to assist with the potential sale or other transaction of the ENTADFI assets[34]. - The Company is in the process of finalizing the initial accounting for the business combination, with adjustments to provisional amounts expected to be completed by December 15, 2024[129]. Going Concern and Future Outlook - There is substantial doubt about the company's ability to continue as a going concern for one year from the issuance of the financial statements due to historical and expected operating losses[43]. - The company plans to secure additional funding through equity or debt financings, but current available funds under the ELOC are insufficient to sustain operations[42]. - The Company is obligated to pay up to an additional $80.0 million in milestone payments based on net sales of ENTADFI, with specific payments of $10.0 million at $100.0 million in sales, $20.0 million at $200.0 million, and $50.0 million at $500.0 million[98].
Onconetix(ONCO) - 2024 Q3 - Quarterly Report