Financial Performance - For the three months ended March 31, 2025, the company reported a net loss of $3.9 million, compared to a net income of $0.6 million for the same period in 2024, representing a 711% increase in loss [196]. - The company did not generate any revenue during the three months ended March 31, 2025 and 2024, with future revenue dependent on successful drug development and commercialization [197]. - As of March 31, 2025, the company had an accumulated deficit of $120.0 million and cash of $1.261 million, raising concerns about its ability to operate for at least 12 months [204][210]. Expenses - Research and development expenses decreased by $0.7 million to $0.325 million for the three months ended March 31, 2025, a 68% reduction compared to $1.0 million in 2024 [196][201]. - General and administrative expenses increased by $0.8 million to $2.633 million for the three months ended March 31, 2025, a 40% increase from $1.879 million in 2024 [196][202]. - Net cash used in operating activities decreased by $1.1 million, from $2.8 million in Q1 2024 to $1.7 million in Q1 2025, representing a 40% reduction [215]. - The company expects to incur additional costs associated with operating as a public company following the merger, impacting future cash flow requirements [213]. - The company anticipates increased expenses related to preclinical activities and clinical trials for product candidates, particularly for ABP-102 and ABP-201 [213]. Funding and Financing - The company raised $11.2 million through a private placement of 3,367,401 shares of common stock concurrent with the merger [192]. - The company intends to seek additional funding through equity and debt financings, collaboration agreements, and research grants to support its operations [210]. - Net cash provided by financing activities decreased by $2.2 million, from $2.3 million in Q1 2024 to $0.1 million in Q1 2025, a decline of 94% [216]. - The company plans to finance cash needs through equity offerings, debt financings, and collaborations, which may dilute ownership interests [214]. - The company may need to delay or scale back product development if unable to raise additional funds through various financing methods [214]. Corporate Developments - A merger with Atlantic Costal Acquisition Corp. II was completed on November 13, 2024, resulting in the company being renamed Abpro Holdings, Inc. [191]. - The company is under scrutiny from Nasdaq for failing to meet the minimum bid price requirement of $1.00 per share and the market value of publicly held shares requirement of $15 million [206][207]. Intellectual Property - The company is focused on maintaining and expanding its intellectual property portfolio, which involves costs related to patent claims and disputes [213]. Other Financial Information - The increase in accounts payable was approximately $0.7 million in Q1 2025 compared to a decrease of $0.4 million in Q1 2024, affecting cash flow timing [215]. - The company received proceeds of $0.1 million from the settlement of the Forward Purchase Agreement in Q1 2025 [216]. - The company’s financial statements are prepared in accordance with US GAAP, requiring estimates that may differ from actual results [217].
Atlantic stal Acquisition II(ACAB) - 2025 Q1 - Quarterly Report