Allarity Therapeutics(US:ALLR)2025-03-31 20:16Financial Performance - The net loss for the year ended December 31, 2024, was $24.5 million, compared to $11.9 million for 2023, indicating a significant increase in losses[414]. - The company has an accumulated deficit of $119.0 million as of December 31, 2024[477]. - Total operating costs and expenses increased to $27.2 million in 2024 from $17.1 million in 2023, representing an increase of $10.1 million[481]. - The company reported a net loss of $24.5 million for the year ended December 31, 2024, compared to a net loss of $11.9 million in 2023[494]. - The company expects to continue incurring significant expenses and increasing operating losses over the next several years due to ongoing clinical trials and regulatory approvals[477]. Cash and Funding - As of December 31, 2024, the company had $19.5 million in cash and an accumulated deficit of $119.0 million[414]. - The company expects its current cash to be sufficient to fund operations for at least the next 12 months, but additional funding will be necessary for future clinical and commercialization activities[415]. - In 2024, the company received $37.3 million in proceeds from ATM sales, $1.3 million from promissory notes, and $2.9 million from the issuance of Convertible Redeemable Series A Preferred Stock[417]. - Net cash provided by financing activities increased to $36.8 million in 2024 from $11.0 million in 2023, mainly from proceeds of $38.8 million from ATM sales of common stock[498]. - The total cash increase for 2024 was $19.4 million, contrasting with a decrease of $1.9 million in 2023[493]. Clinical Trials and Research - The company terminated all assets except for stenoparib, which is currently in a phase 2 clinical trial for advanced recurrent ovarian cancer[403]. - Emerging clinical data from the stenoparib trial show promising results, including a complete response in one patient and stable disease in two patients after more than 14 months of therapy[403]. - The company anticipates substantial increases in research and development expenses related to its lead drug candidate, stenoparib, as it advances through clinical trials[479]. - Research and development expenses decreased to $6.1 million in 2024 from $7.1 million in 2023, a decrease of $1.0 million[481]. - Research and development expenses decreased by $1.0 million to $6.1 million in 2024 from $7.1 million in 2023, primarily due to a $1.2 million decrease in manufacturing and supplies costs[485]. Legal and Regulatory Matters - A class action lawsuit was filed against the company on September 13, 2024, alleging false and misleading statements related to the Dovitinib NDA, which was later dismissed[410]. - The company received a termination notice from Novartis on January 26, 2024, due to a material breach of the license agreement, resulting in a liability of $5.2 million[408]. Stock and Equity Transactions - The company underwent multiple reverse stock splits in 2023 and 2024, including a 1-for-40 split and a 1-for-30 split, affecting share and per-share information[407]. - The company filed amendments to its Certificate of Incorporation to adjust the number of authorized shares, first increasing to 750,500,000 and then decreasing to 250,500,000[405][406]. - The company issued 35,000 shares of Series A Convertible Redeemable Preferred Stock in August 2024, generating net proceeds of approximately $2.9 million after deductions[437]. - The company sold 6,953,259 shares of common stock under an At-The-Market Issuance Sales Agreement, resulting in net proceeds of approximately $38.8 million for the year ended December 31, 2024[436]. - The company modified the conversion price of the Series A Preferred Stock multiple times, resulting in an increase in the number of outstanding Exchange Warrants from 7,346 to 27,648 shares[431][432][433]. Expenses and Impairments - Impairment of intangible assets was recorded at $9.7 million in 2024, with no impairment losses recognized in 2023[466]. - General and administrative expenses rose to $11.4 million in 2024 from $10.0 million in 2023, an increase of $1.4 million[481]. - General and administrative expenses increased by $1.4 million in 2024, driven by a $3.5 million increase in audit and legal expenses, including a $2.5 million SEC settlement charge[487]. - Interest expenses rose to $653,000 in 2024 from $498,000 in 2023, an increase of $155,000[481]. - The company recognized a full impairment charge of $9.7 million for intangible assets in 2024, compared to no impairment charge in 2023[486]. Income and Tax - Interest income increased significantly to $533,000 in 2024 from $22,000 in 2023, an increase of $511,000[481]. - The company recognized $0.4 million in income tax recovery in 2024, compared to $0.1 million in income tax expense in 2023[491]. - Other income for 2024 was $2.3 million, primarily from a $2.7 million fair value adjustment of warrant derivative liabilities[488].