Eterna Therapeutics (US:ERNA)2025-05-07 20:30Financial Performance - For the three months ended March 31, 2025, the company reported no revenue, a decrease of $47,000 compared to $47,000 in the same period of 2024[102] - The net loss for the three months ended March 31, 2025, was $8.20 million, compared to a net loss of $6.65 million in the same period of 2024, an increase of $1.55 million[102] - Total operating expenses for the three months ended March 31, 2025, were $2.73 million, down from $5.77 million in 2024, reflecting a decrease of approximately 52.7%[102] Expense Breakdown - Research and development expenses decreased to $1.31 million for the three months ended March 31, 2025, from $1.46 million in 2024, a reduction of about 10.2%[105] - General and administrative expenses significantly decreased to $1.42 million in the first quarter of 2025, down from $4.32 million in 2024, a decline of approximately 67.1%[106] - Cash used in operating activities decreased by approximately $1.7 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to a $2.4 million decrease in net loss[119] Cash and Financing - The company had cash of approximately $1.9 million and an accumulated deficit of approximately $239.7 million as of March 31, 2025[112] - Net cash provided by financing activities for the three months ended March 31, 2025 was $2.3 million, compared to $1.4 million for the same period in 2024[121] - The company received $1.1 million in gross proceeds from the First Closing of a private placement and expects to receive an additional $6.2 million from the Second Closing, pending stockholder approval[114] Future Outlook - The company expects to complete IND enabling studies and IND submission for its lead product candidate ERNA-101 by 2026, with a Phase I trial anticipated in the second half of 2026[90] - The company projects insufficient capital to fund operations for the next 12 months, raising concerns about its ability to continue as a going concern[115] - The company may face challenges in raising additional capital due to macroeconomic factors and market volatility[115] Strategic Initiatives - The company is actively seeking strategic partnerships to co-develop or out-license therapeutic assets to expand developmental opportunities[92] - The company entered into a securities purchase agreement on March 31, 2025, to issue approximately 58.3 million shares of common stock at a price of $0.1046 per share[93] Accounting and Compliance - There were no significant changes in critical accounting estimates during the three months ended March 31, 2025[123] - No new Accounting Standards Updates have been issued that would apply to the company since January 1, 2025[124] - The company has no off-balance sheet arrangements as defined under applicable SEC rules[122] Risks and Considerations - A forward sales contract expense of $5.33 million was recognized for the three months ended March 31, 2025, due to the fair value of shares expected to be issued exceeding the proceeds[107] - Equity or convertible debt financings may dilute existing stockholders' holdings and impose operational restrictions[116] - The company did not engage in any investing activities during the three months ended March 31, 2025, while it spent approximately $0.1 million on property and equipment in the same period of 2024[120]