Financial Performance - The company experienced a net loss of $11.209 million for the three months ended March 31, 2025, compared to a net loss of $11.827 million for the same period in 2024, representing a 5.2% improvement[19]. - Total operating expenses for the first quarter of 2025 were $10.736 million, up from $10.241 million in the first quarter of 2024, indicating a 4.8% increase[19]. - The accumulated deficit as of March 31, 2025, stood at $205.310 million, up from $194.101 million at the end of 2024[18]. - The company reported a net loss of $11.2 million for the three months ended March 31, 2025, compared to a net loss of $11.8 million for the same period in 2024, reflecting a decrease of $0.6 million[128]. - Clinical trial expenses increased to $4.2 million for the three months ended March 31, 2025, up from $2.3 million in the prior year[104]. - Research and development expenses were $7.8 million for the three months ended March 31, 2025, a 3% increase from $7.6 million in the prior year, primarily due to higher clinical trial expenses[129]. - General and administrative expenses rose by 10% to $3.0 million for the three months ended March 31, 2025, compared to $2.7 million in the same period of 2024, mainly due to increased professional fees[130]. Cash Flow and Liquidity - Cash and cash equivalents increased to $18.351 million as of March 31, 2025, from $17.618 million at the end of 2024, reflecting a 4.2% rise[18]. - Elicio's cash flows from operating activities showed a net cash used of $10.119 million for the first quarter of 2025, compared to $12.122 million for the same period in 2024, marking a 16.5% reduction[25]. - The company expects to fund operations into the fourth quarter of 2025 based on current cash on hand, but substantial doubt exists regarding its ability to continue as a going concern[111]. - The company expects to incur substantial expenditures for the development of its product candidates and will require additional financing[28]. - The company expects its cash and cash equivalents to be sufficient to fund planned operations into the fourth quarter of 2025, although future funding requirements are uncertain[141]. Shareholder Equity and Stock Activity - Elicio's stockholders' equity improved to $8.904 million as of March 31, 2025, compared to a deficit of $11.312 million at the end of 2024[18]. - The company reported a weighted average of 12,950,574 common shares outstanding for the first quarter of 2025, compared to 10,273,925 shares for the same period in 2024, indicating a 26.4% increase in shares outstanding[19]. - The company issued 615,363 shares under the 2022 ATM Program, generating net proceeds of approximately $5.1 million during the three months ended March 31, 2024[57]. - In the three months ended March 31, 2025, the company issued 106,823 shares under the 2024 ATM Program, resulting in net proceeds of approximately $0.8 million[58]. - The January 2025 Offering resulted in net proceeds of $9.2 million after deducting placement agent fees, with 1,261,830 shares sold at a combined offering price of $7.925[62]. Liabilities and Financial Obligations - Elicio's total liabilities decreased significantly to $19.240 million as of March 31, 2025, from $39.490 million at the end of 2024, representing a 51.2% reduction[18]. - Total liabilities, including warrant liability, were $2.962 million as of March 31, 2025, compared to $2.828 million on December 31, 2024[38]. - Accrued expenses decreased from $8.415 million on December 31, 2024, to $5.770 million on March 31, 2025[50]. - The company issued 3,500,573 shares of common stock in March 2025 to satisfy the full amount of a $20.0 million convertible note, resulting in no outstanding debt as of March 31, 2025[93]. Internal Controls and Compliance - Material weaknesses in internal control over financial reporting were identified, including insufficient resources with knowledge of U.S. GAAP and inadequate financial reporting controls[156][159]. - Remediation efforts for identified material weaknesses include hiring additional finance personnel and engaging consultants for compliance and technical accounting[160]. - The company has not fully remediated material weaknesses as of March 31, 2025, and continues to disclose these weaknesses in its financial reports[161]. - The effectiveness of internal control over financial reporting is subject to inherent limitations, and the company intends to continue monitoring and upgrading its controls[162]. Market and Regulatory Environment - The company has not yet had any products approved for sale and does not expect to generate product sales until regulatory approval is obtained[116]. - The United States imposed broad tariffs in April 2025, particularly affecting imports from China, which may lead to increased costs for materials[168]. - There have been no material changes in the company's risk factors, but significant political and trade developments, including tariffs, could adversely impact financial conditions[168]. Future Outlook - The company plans to address its financial condition through the sale of common stock or other securities, but there is no assurance that these plans will be successful[112]. - The clinical pipeline includes ELI-002, currently in Phase 2 trials, with an interim analysis expected in Q3 2025[109].
Elicio Therapeutics(ELTX) - 2025 Q1 - Quarterly Report