Financial Performance - As of September 30, 2024, the company had an accumulated deficit of approximately $22.9 million[175]. - The company incurred a net loss of approximately $3.4 million for the three months ended September 30, 2024, compared to a net loss of $1.9 million for the same period in 2023[187]. - Net cash used in operating activities was approximately $2.2 million for the three months ended September 30, 2024, primarily due to a net loss of approximately $3.4 million[201]. - The company reported net cash provided by financing activities of approximately $20.0 million for the three months ended September 30, 2023, primarily from the Business Combination[205]. Research and Development - For the three months ended September 30, 2024, research and development expenses were approximately $2.8 million, a significant increase from $0.5 million in the same period in 2023[184]. - Research and development expenses for the three months ended September 30, 2024, included $2.8 million in consulting and laboratory-related fees, with no stock-based compensation incurred during this period[185][186]. - The company expects significant increases in expenses related to ongoing research and development and commercialization efforts for its product candidates[190]. - The company is focused on advancing preclinical and clinical development of its product candidates, including EB103 and EB104, and seeking regulatory approval[177]. Business Combination and Financing - The Business Combination on September 29, 2023, resulted in net proceeds of approximately $20.1 million after deducting transaction expenses[191]. - The company has funded its operations primarily through the issuance of Series A Preferred Stock and proceeds from the Business Combination[173]. - The company plans to raise additional capital in the future, but there is no assurance that financing will be available on acceptable terms[200]. - The company has not issued any Equity Line Shares under the Common Stock Purchase Agreement as of the date hereof, despite having the right to direct White Lion to purchase up to $50.0 million in shares[199]. Liabilities and Milestones - The company has agreed to pay Eureka total fees of $33.0 million for the achievement of milestones related to the Phase I/II clinical trial of EB103, with approximately $6.3 million expensed as of September 30, 2024[194]. - As of September 30, 2024, the company had accrued $2.75 million in liabilities related to two patient dosing milestones achieved during the quarter[216]. - The company remitted approximately $9.3 million to Eureka upon the consummation of the Business Combination, with remaining net proceeds expected to fund operations for one year[193]. Stock and Market Information - The closing price of the company's Common Stock was $1.16 per share as of September 30, 2024, significantly lower than the exercise price of the Warrants at $11.50 per share, making it unlikely for warrant holders to exercise their warrants[197]. Accounting and Reporting - The company prepares its financial statements in accordance with U.S. GAAP, requiring estimates and judgments that affect reported amounts of assets, liabilities, revenues, and expenses[219]. - Stock-based compensation costs are recognized as an expense over the requisite service period based on fair value measurements, utilizing the Black-Scholes-Merton option-pricing model[221]. - The fair value of stock options is amortized on a straight-line basis over the vesting period, which generally equals the requisite service period[224]. - The company is classified as an emerging growth company, allowing it to delay the adoption of certain accounting standards until they apply to private companies[225]. - As a smaller reporting company, the company is not required to provide additional market risk disclosures[227]. Collaboration Agreements - The research plan under the Collaboration Agreement with Imugene was completed as of August 30, 2023, with costs shared equally between the parties[213].
TRADEUP ACQUISIT(UPTD) - 2024 Q3 - Quarterly Report