Financial Performance - Estrella Immunopharma, Inc. reported a net loss of approximately $2.1 million for the three months ended March 31, 2025, compared to a net loss of $0.5 million for the same period in 2024 [172]. - Estrella's accumulated deficit reached approximately $26.0 million as of March 31, 2025, reflecting ongoing operational losses since inception [158]. - The company reported a net cash used in operating activities of approximately $0.5 million for the three months ended March 31, 2025, primarily due to a net loss of approximately $2.1 million [183]. - The company reported a net cash used in financing activities of approximately $29,000 for the three months ended March 31, 2025, primarily due to stock repurchase [185]. Research and Development - Research and development expenses increased significantly to approximately $1.4 million for the three months ended March 31, 2025, from $25,000 in the same period of 2024, primarily due to higher service fees during the clinical phase [169]. - The company anticipates significant increases in expenses as it continues research and development and seeks marketing approval for its product candidates [175]. - The company has incurred approximately $11.2 million in payments to Eureka for services and upfront fees related to the License Agreement and Services Agreement as of March 31, 2025 [158]. - The total fees for the clinical trial services under Statement of Work No. 001 with Eureka amount to $33.0 million, contingent on achieving certain milestones [176]. - As of March 31, 2025, the company had expensed approximately $7.6 million to Eureka for milestone achievements and deposited $1.5 million for patient treatment expenses [178]. - The company has accrued approximately $4.1 million in liabilities related to three completed patient dosing milestones as of March 31, 2025 [194]. Liquidity and Capital Resources - As of March 31, 2025, Estrella had cash of approximately $0.4 million and a working capital deficit of approximately $3.3 million, indicating liquidity challenges [173]. - The company plans to raise additional capital to fund research and development programs, but there is no assurance that financing will be available on acceptable terms [182]. - The company completed a Business Combination with TradeUP Acquisition Corp. on September 29, 2023, raising net proceeds of approximately $20.1 million [157]. - The company has entered into a Services Agreement with Eureka, agreeing to pay $10.0 million for services, payable in 12 equal monthly installments [192]. - The company has fully paid the $1.0 million license fee to Eureka and has made milestone payments of $50,000 each for two development milestones [189]. - The company has issued 70,000 Equity Line Shares to White Lion for an aggregate consideration of $79,491 as of March 31, 2025 [181]. Risks and Uncertainties - The company has not generated any revenue to date and does not expect to do so for at least the next few years, pending regulatory approval of its product candidates [174]. - The company is subject to various risks, including the success of research and development programs and regulatory approval for product candidates [179]. - General and administrative expenses increased to approximately $0.7 million for the three months ended March 31, 2025, from $0.4 million in the same period of 2024, driven by professional fees and stock-based compensation [171].
TRADEUP ACQUISIT(UPTD) - 2025 Q1 - Quarterly Report